A Specialized Dual-Drive for a Superior Ecosystem: China Overseas Land & Investment Anchors the "14th Five-Year Plan" and Moves Toward Becoming a World-Class Real Estate Company | In-Depth Analysis of the Annual Report

In 2025, the real estate sector remains in a critical period of deep adjustment and reshaping of the industry landscape, with the ongoing industry clearing process continuing to intensify. Property developers generally face multiple challenges, such as shrinking profit margins, making sound and resilient operations the core “wall” for navigating through the cycle. Against this backdrop, China Overseas Property has delivered a high-quality set of results that combine growth potential and stability, supported by a prudent development strategy, solid product and service capabilities, and steady financial risk management.

On March 31, China Overseas Property released its 2025 performance report, showing that for the full year the company achieved revenue of RMB 168.09 billion, operating profit of RMB 20.81 billion, and a gross margin of 15.5%. During the period, profit attributable to shareholders was RMB 12.69 billion, and core profit attributable to shareholders was RMB 13.01 billion.

Of particular note, amid intense market competition, China Overseas Property has consolidated the advantages of a leading developer, achieving a two-year consecutive first place in equity sales and a three-year consecutive first place in investment land acquisition, demonstrating its industry position of “the strong stay strong” with a “double leadership” posture. The report shows that in 2025 the company achieved contracted sales of RMB 251.23 billion, retaining first place in the industry in equity sales. For the full year, the company made new land investment totaling RMB 118.69 billion, with equity land acquisition of RMB 92.42 billion, maintaining first place in the industry for three consecutive years, laying a solid foundation for future growth.

(From left to right) Mr. Guo Guanghui, Vice President; Mr. Yan Jianguo, Chairman; Mr. Zhang Zhichao, Executive President

At the performance briefing, Chairman Yan Jianguo said that in 2025 China Overseas Property maintained the steadiest financial position in the industry and industry-leading profitability. Going forward, China Overseas Property will implement the strategy of “One Focus, Two Drivers, and an Optimized Ecosystem” in its business structure. Among them, “One Focus” means focusing on the main growth lane of property development and operations; “Two Drivers” means adopting a model of both leasing and sales to strengthen the dual-wheel driving force of residential development and income-generating businesses; and “Optimized Ecosystem” means leveraging the platform of property development and operations to cultivate upstream and downstream ecosystem-type businesses such as supply chain management, planning and design, digital technology, and construction management (project management), empowering the main lane to improve competitiveness, and building a closed-loop of scenario advantages and capabilities for a “full industrial chain and optimized ecosystem.”

Dual-advantage driven by product and services; deep cultivation in key cities yields results

Sales performance directly reflects a company’s competitiveness in the market. In 2025, when industry demand on the supply side still needs to recover, China Overseas Property has taken the lead in industry sales performance by relying on precise city layout strategies and strong product and service capabilities.

The report shows that in 2025 China Overseas Property’s real estate development business revenue was RMB 156.77 billion; full-year contracted property sales totaled RMB 251.23 billion, retaining the first position on the equity sales ranking among property companies. The corresponding sales area was 10.56 million square meters.

According to data from the China Index Academy, in 2025 the total equity sales volume of the top 100 property developers declined by approximately 18.4% year over year, and the number of billion-yuan-scale developers further shrank to 10. During the industry adjustment cycle, China Overseas Property achieved equity sales that outperformed the market and retained first place, showing its strong market competitiveness.

China Overseas Property stated that its leading sales performance in the industry benefits from two development strategies: first, the company focuses strongly on first-tier cities with higher safety and greater certainty, capturing structural opportunities in other key cities. Second, the Group enhances its market share through “Good Products and Good Services.”

The report shows that in 2025 China Overseas Property achieved contracted sales of RMB 125.44 billion across five cities—Hong Kong and the four municipalities of Beijing, Shanghai, Guangzhou, and Shenzhen—accounting for 57.3% of contracted sales. Of that, in Beijing contracted sales were RMB 50.26 billion, and in Hong Kong contracted sales were RMB 22.23 billion; for the first time, sales in Hong Kong rose to fifth place in the Hong Kong market.

In addition, in 2025 China Overseas Property was the first to release the “China Overseas Good Homes LivingOS” system, fully implementing the construction standards of “Good Homes.” Among the first batches of homes launched and sold well, such as Wanji Jiuxu in Beijing and Yundi Jiuzhang in Shanghai. At the same time, it continued to optimize the customer service platform “China Overseas · Happy Home” to enhance the customer experience across the entire lifecycle. China Overseas Property actively fulfills its commitment of “Choose China Overseas with Peace of Mind,” delivering over 46k residential units on time with quality within the year, achieving a delivery on-time rate of 100%.

Steady growth in sales and continuously improving market reputation have helped the Group maintain an industry-leading level of cash collection. In 2025, China Overseas Property’s sales cash collection was RMB 170.49 billion. Of this, cash collection from Beijing sales exceeded RMB 30 billion, while Shanghai and Shenzhen each exceeded RMB 20 billion.

Ample cash collection provides solid funding support for the Group’s land investment, forming a virtuous cycle of “sales – cash collection – land acquisition.” The report shows that in 2025 China Overseas Property obtained 35 land parcels in total, adding total floor area in land reserves of 4.99 million square meters, with equity floor area of 4.45 million square meters. Total consideration for land acquisition was RMB 118.69 billion, with equity land acquisition of RMB 92.42 billion, and the amount of newly acquired land consideration remained the highest in the industry. Among them, the equity land acquisition amount across Hong Kong and the four municipalities (Beijing, Shanghai, Guangzhou, and Shenzhen) accounted for approximately 73.9%, highlighting a clear advantage in the volume structure.

According to data from CREF, in the first quarter of 2026, China Overseas Property achieved contracted sales of RMB 51.51 billion, up 11% year over year, and equity sales continued to remain first in the industry.

Improve quality and efficiency in business operations; REITs listings open a new journey for asset management

While developing its core development business steadily, China Overseas Property continues to strengthen its income-generating commercial real estate segment, activating asset value through refined operations. It also leverages benchmark projects to enhance brand influence, and more importantly achieves a key breakthrough in asset management business through the successful listing of commercial public REITs, further deepening the “residential + commercial” dual-wheel driving pattern.

The report shows that in 2025 China Overseas Property’s commercial property revenue was RMB 7.2 billion. Of this, office building revenue was RMB 3.47 billion, shopping mall revenue was RMB 2.39 billion, long-term rental apartment revenue was RMB 0.35 billion, and hotel and other commercial property revenue was RMB 0.99 billion.

Worth noting is that in 2025, China Overseas Property’s commercial property revenue for the first time fully covered the company’s total interest expense. This indicates that its held-for-income business has the capability to independently “generate cash” and can cover financial costs through stable cash flows, opening up a brand-new growth space for the company’s profits.

It is understood that in 2025 China Overseas Property added and put into operation a total of six commercial property units in Beijing, Nanjing, Shanghai, and Shenzhen. The total gross floor area in operation increased by 280k square meters. Among them, China Overseas Da Jixiang commercial complex in Beijing has become a new leisure and consumption landmark within Beijing’s Second Ring Road.

In addition, in 2025 China Overseas Property achieved an important breakthrough in the asset management of income-generating real estate, completing the successful setup of a commercial public REIT platform. On October 31, 2025, China Overseas Commercial REIT was successfully listed on the Shenzhen Stock Exchange. China Overseas Property said that this is an important strategic move to promote high-quality development of its income-generating businesses, achieving a full-cycle capital closed loop of “invest, finance, construct, manage, and exit,” laying a solid foundation for further transformation into the asset management business.

Industry insiders pointed out that amid the broader trend of real estate companies transforming from development to asset management, the successful listing of China Overseas Property’s commercial REITs not only connects the exit and value appreciation channels for commercial assets, but also establishes a benchmark for the securitization of operating income-generating assets in the industry, providing replicable experience for property developers to explore an asset-light, high-turnover asset management model.

Financial “green bucket” support for stability; ESG and credit ratings lead the industry

Based on precise strategic positioning, strong product and service capabilities, and prudent development principles, China Overseas Property has always maintained a healthy financial structure, ample cash reserves, and financing costs below the industry level, achieving synergy between stable operations and sustainable development.

Data shows that in 2025 China Overseas Property achieved net cash inflow from operating activities of RMB 16.73 billion, maintaining positive cash inflow for many consecutive years. At year-end, it held cash of approximately RMB 103.63 billion, representing 11.3% of total assets. The scale of cash on hand and overall liquidity remained among the highest levels in the industry.

In addition, the company strictly adheres to the safety bottom line and actively seeks development. All key indicators remain leading in the industry and it continues to maintain its position in the “green bucket.” By the end of 2025, China Overseas Property’s asset-liability ratio was 54.1%, and total borrowings were RMB 247.38 billion. Of these, borrowings due within one year were RMB 42.32 billion, accounting for 17.1% of total borrowings.

Meanwhile, China Overseas Property leverages dual financing platforms both domestically and internationally, flexibly using a variety of financial instruments to reasonably arrange financing. The financial report shows that in 2025 China Overseas Property achieved RMB 54.38 billion in domestic and foreign financing. During the year, average financing costs fell to 2.8%, placing financing costs in the lowest range in the industry.

Benefiting from sound finances, the company continues to maintain industry-leading credit ratings. It is the only domestic listed real estate company among the three major international rating agencies—S&P Global, Moody’s, and Fitch—that received “A-” ratings from two of them, reflecting a high level of recognition from international rating agencies regarding China Overseas Property’s stable and sustainable development prospects.

It is worth pointing out that China Overseas Property’s rating performance in sustainable development has continued to improve. The company’s Hang Seng Sustainability Rating was upgraded from A+ to AA-, and it continues to be selected as a constituent stock of the Hang Seng Sustainability Enterprise Index, remaining the only domestic real estate enterprise included. The corporate sustainability assessment score of S&P Global increased significantly from 61 to 69 and remained first among domestic enterprises. It was selected for the first time in S&P Global’s 2025 Sustainability Yearbook and became the only domestic enterprise included. Morningstar (Sustainalytics) ESG risk score is best among domestic real estate enterprises, and the ranking of real estate companies participating in the global assessment improved from within the top 10% to within the top 3%. MSCI’s ESG rating remains at the A category.

Looking ahead to the “15th Five-Year Plan plus the next five years” period (十五五), Yan Jianguo said that China Overseas Property will strive to become a leader in China’s real estate industry and compete to build a world-class enterprise. It will work to achieve the development goals of “three leading” initiatives: “a leading enterprise in quality and customer satisfaction; a leading enterprise in efficiency and brand value; and a leading enterprise that practices a new model for real estate development.”