China Overseas Land & Investment (0688) H2 2024 earnings summary

Executive summary

• Contracted property sales rose 0.3% to RMB310.69 billion, with sales area down 14% year-over-year; revenue was RMB185.15 billion.

• Profit attributable to owners was RMB15.64 billion; core profit (excluding revaluation and FX effects) was RMB15.72 billion.

• Basic EPS was RMB1.43; equity attributable to owners reached RMB380.61 billion.

• Final dividend of HK30 cents per share proposed, totaling HK60 cents per share for the year.

• S&P Global upgraded credit rating to A-/Stable, the only Chinese property developer with double-A international ratings.

Financial highlights

• Revenue declined to RMB185.15 billion from RMB202.52 billion year-over-year.

• Operating profit was RMB26.69 billion, down from RMB40.53 billion year-over-year.

• Gross profit margin was 17.7%; selling, distribution, and admin expenses ratio to revenue was 3.7%.

• Net profit attributable to owners fell to RMB15.64 billion from RMB25.61 billion year-over-year.

• Core profit (adjusted) was RMB15.72 billion; basic EPS dropped to RMB1.43 from RMB2.34.

Outlook and guidance

• Management expects continued pressure in the domestic economy and property market in 2025 but sees policy support, improved supply-demand structure, and new product launches as drivers for stability and growth.

• Focus remains on first-tier cities, premium product offerings, and cost control to maintain industry leadership.