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

Executive summary

• Achieved industry-leading attributable sales and land premium, with positive sales growth among top 10 Chinese developers in 2024; contracted property sales rose 0.3% to RMB310.69 billion.

• Maintained top market share in first-tier cities, ranking No.1 in Beijing, Shanghai, and Shenzhen.

• Signature projects set national sales records, and high-end residential series 'Infinite Horizons' exceeded RMB50b in sales.

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

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

Financial highlights

• Contracted sales reached RMB310.7b, up 0.3% YoY; average selling price (excl. COGO) rose 25% YoY.

• Revenue was RMB185.15b, with commercial property operations revenue at RMB7.13b, up 12.1% YoY.

• Profit before tax was RMB26.41b; core profit attributable to shareholders was RMB15.72b.

• Gross profit margin stood at 17.7%; SG&A as % of revenue 3.7%.

• Cash on hand at year-end was RMB124.17b, accounting for 13.7% of total assets.

Outlook and guidance

• 2025 targets: steady growth in attributable land premium, stable contracted sales and net profit.

• 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.