(Hong Kong, 21 March 2017) China Overseas Grand Oceans Group Limited (“COGOGL” or “the Company”, Stock code: 00081.HK) announced its annual results for the year ended 31 December 2016 (the “Year”) today. During the year, the Company’s contracted property sales increased by 9.1% to HK$24,003.9 million against last year. Gross profit and margin for the year were HK$2,935.0 million and 17.2% respectively. Operating profit for the year amounted to HK$2,133.0 million, representing an increase of 22.3% against last year. Profit attributable to owners of the Company was HK$900.2 million, 5.8% higher than last year. Basic earnings per share were HK39.4 cents. The Board recommended the payment of final dividend of HK2 cents per share for the year ended 31 December 2016.
On 29 December 2016, the Company completed the acquisition of a wholly-owned subsidiary of its controlling shareholder, China Overseas Land & Investment Limited for its underlying property portfolio for a cash consideration of RMB3,518.6 million. The property portfolio, which had a gross floor area approximately 9.5 million sq.m., mainly comprised residential property development projects at various development stages and located in seven emerging cities.
On top of the acquisition above, the Company entered into a new city, Xuzhou. Together with other new land banks, the Company purchased a total of eight parcels of land in Lanzhou, Shantou, Yancheng, Ganzhou, Nantong and Xuzhou with total development area of 1,352,722 sq.m. for a total consideration of approximately RMB4,750.4 million. As at 31 December 2016, total land bank of the Company is estimated available to build gross floor area of approximately 17,741,200 sq.m..
The continuous expansion and the acquisition have demonstrated the strong commitment of the Group to be a high-growth star property developer of the highest potential in the residential property market in China. The Group would continue to focus on the emerging cities with best investment value and growth potentials, and stick to the position of offering middle to high-end product ranges, fully embracing the government’s urbanization and long-term housing policy.
Meanwhile, the Company would continue to enhance its operating processes, reinforce its internal controls and tighten cost controls. The newly acquired operations would be fully integrated with the standardized management systems of the Company’s existing operations to attain the greatest synergy and operational efficiency.
Going forward, in response to the increasing expectations of the customers and market competition, the management would continue to perfect the customer services, broaden the range of property products, optimize the project development cycle and enhance the quality of the properties. To cope with the ever-changing market environment, the Company is devoted to evolve new marketing methodologies, speed up sales programs and promote the sell-through rate of the inventory. The Company would continue to extend its competitive edge and secure its advanced position in the market.
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