China Overseas Land & Investment: Leading in performance, balanced offense and defense!

China Overseas Development Co., Ltd. (hereinafter referred to as “China Overseas Development,” stock code: 0688.HK) delivered strong results in its full-year 2025 performance released on March 31, 2026, presenting an excellent answer sheet that showcases strong strategic resolve and development resilience.

China Overseas Development executive team photo: Vice President Guo Guanghui, Chairman Yan Jianguo, Executive Director & Chief Executive Officer Zhang Zhichao

In 2025, China Overseas Development achieved revenue of RMB 168.09 billion, profit before tax of RMB 20.61 billion, and core profit attributable to the company’s shareholders of RMB 13.01 billion. Its profitability continued to remain at the industry-leading level. In addition, the board announced a final dividend of HK$0.25 per share, together with an interim dividend of HK$0.25 per share. Total dividends for the full year amounted to HK$0.50 per share, with a payout ratio of 38.6%, continuing to deliver steady returns to shareholders.

At the performance communication meeting, Chairman Yan Jianguo said that the company’s operating business revenue maintained an upward trend with stability. Rental income for the first time fully covered the company’s interest expense, and the company’s steady operating performance reached a new high level, maintaining a development posture that is ready both for attack and defense. Yan Jianguo stated, “Although the real estate market is still undergoing adjustment, looking ahead, we are confident in real estate stabilizing and turning the downturn around, and we are equally confident in China Overseas Development achieving sustainable, high-quality development.”

Capitalizing on policy tailwinds, both sales and investment lead the industry

Since 2025, Beijing and Shanghai have successively relaxed purchase restrictions. Meanwhile, policies in various places such as reducing or exempting value-added tax on second-hand home transactions, increasing housing provident fund loan limits, and issuing home purchase subsidies have helped further release home-buying demand and boost sales. The trend of improved housing demand has become the mainstream in the market. Measures including increased supply of high-quality land in core locations across regions, accelerated urban renewal and renovation of dilapidated and old housing, and ongoing deepening of the building of “good homes” have all effectively unlocked improvement-driven momentum.

In early March 2026, a related policy issued by the Ministry of Natural Resources clearly stated that new construction land, in principle, will not be used for operating real estate development. This policy will play a positive role in controlling increments, de-stocking, and ensuring supply.

Facing cyclical market adjustments, China Overseas Development accurately grasps policy directions and market opportunities. In 2025, its attributable sales ranked first in the industry, with full-year contracted sales reaching RMB 251.23 billion. Entering 2026, its growth momentum has been sustained. According to data from CREF, in the first quarter the company achieved contracted sales of RMB 51.51 billion, up 11% year over year, and its attributable sales continued to rank first in the industry.

The “COFCO good homes Living OS” system released by China Overseas Development first led the industry in building good homes. The first batch of “COFCO good homes” launches and sales, such as Beijing Wanji Jiu Xu and Shanghai Yun Di Jiu Zhang, heated up for sales despite the headwinds; and the company delivered 46,000 high-quality homes, with customer satisfaction remaining at a benchmark level in the industry.

Meanwhile, relying on its industry-leading financial strength, the company implemented precise counter-cyclical investment. In 2025, the company’s attributable land acquisition amount reached RMB 92.42 billion. The newly acquired land amount continued to rank first in the industry. The five cities in Hong Kong and the “North China plus four first-tier core cities” (Beijing, Shanghai, Shenzhen, and Guangzhou) accounted for approximately 73.9% of the attributable land acquisition amount, highlighting a strong advantage in货量 structure.

Multiple indicators lead the industry; steady operations build a solid safety margin

While leading the industry in the amount of newly acquired land, China Overseas Development has always adhered to prudent and steady financial strategies. It strictly guards the safety baseline while actively seeking development. All indicators have remained industry-leading, continuing to stay in the “green tier.”

By the end of 2025, net current assets were RMB 383.03 billion, with a current ratio of 2.5x and a net gearing ratio of 34.2%. Bank deposits and cash were RMB 103.63 billion, accounting for 11.3% of total assets, with ample cash and leading liquidity adequacy in the industry. During the year, the group’s total interest expense before capitalization decreased by RMB 2.04 billion, and the average financing cost fell to 2.8%, placing financing costs within the lowest range in the industry.

Of note, the company’s operating business achieved a breakthrough in 2025. Full-year commercial operating revenue reached RMB 7.2 billion. For the first time, it fully covered total interest expense, significantly enhancing the company’s resilience against risks and elevating “steady operations” to a new strategic height.

This outstanding performance earned China Overseas Development recognition from the capital markets. Among the three major international credit rating agencies—S&P Global, Moody’s, and Fitch—two have assigned China Overseas Development an “A-” rating, reflecting a high evaluation by international rating agencies of its steady and sustainable development prospects.

REITs listing leads a new model, connecting the full-cycle asset circulation

While continuously consolidating its advantages in the development of its main business, China Overseas Development also stepped up efforts on the asset management end. In 2025, the “China 华夏中海 Commercial Assets Closed-ended Infrastructure Securities Investment Fund” (abbreviated as “COFCO Commercial REIT,” code: 180607.SZ) was successfully listed on the Shenzhen Stock Exchange.

The listing of COFCO Commercial REIT is not only the first consumption REIT in Mainland China to be implemented with a “acquire–renovate–improve–activate” model, but it also marks that the group’s full-cycle asset management capabilities—“invest, finance, build, manage, exit”—have formed a closed loop.

At the performance communication meeting, Yan Jianguo stated that based on the successful issuance of the first commercial public REITs, the company will, through continuous injection of mature assets, actively build a new REITs platform to further unlock asset value. In 2026, the company will coordinate development and security, focus on first-tier and strong second-tier cities, and maintain a positive stance toward investment. With advantages including sufficient cargo volume and an optimized structure, it will keep sales and profit leading the industry.

With precise grasp of policy and deep operational know-how, in 2025 China Overseas Development consolidated its all-round leading advantages. Looking toward “the 15th Five-Year Plan period and beyond,” the company said it will continue to uphold the operating philosophy of “good products, good services, good results, and good citizens,” and is committed to becoming a “three-leading” enterprise in the new model of quality, efficiency, and development, steadily moving toward the goal of becoming a world-class company.

(责任编辑：田云绯)

（责任编辑：郭健东 ）

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