China Merchants Land Limited (“China Merchants Land” or “the Company”, stock code: 00978) and its subsidiaries (the “Group”) announced an audited revenue of RMB29,871,347,000 (2021: RMB25,921,416,000) for the year ended 31 December 2022 (the “Year”), representing a year-on-year increase of approximately 15.2 per cent. Profit for the Year amounted to RMB1,730,026,000 (2021: RMB1,582,866,000), representing a year-on-year increase of approximately 9.3 per cent. The Group’s basic earnings per share for the Year were RMB6.72 cents (2021: RMB11.43 cents). The board of China Merchants Land recommended the payment of a final dividend of HK$0.03 per share in respect of the year ended 31 December 2022.

In 2022, sales from projects in Foshan, Guangzhou, Chongqing, Nanjing and Jurong, Xi’an and Hong Kong accounted for approximately 4.8 per cent, 4.9 per cent, 16.8 per cent, 47.4 per cent, 25.9 per cent and 0.2 per cent, respectively, of the total revenue of the Group. During the Year, the Group, together with its associates and joint ventures, achieved an aggregate contracted sales of RMB47,861,000,000 (2021: RMB55,196,000,000). Aggregate contracted sales area was 1,931,711 sq m (2021: 2,392,049 sq m). The average selling price was approximately RMB24,777 per sq m (2021: RMB23,075 per sq m), representing a year-on-year increase of approximately 7.4 per cent.

The Group’s financial position remained sound. As at 31 December 2022, the Group’s net gearing ratio was 70 per cent (2021: 65 per cent). The Group further utilizes the flexibility of its capital structure and resources in a rational manner according to project needs. In addition, the capital cost of the Group remained at an industry-low level. The weighted average finance costs of the interest-bearing debt was 4.31 per cent at the end of the Year. Among them, the average finance costs of bank and financial institution borrowings was 3.94 per cent.

As at 31 December 2022, the Group had 45 property development projects in Guangzhou, Foshan, Chongqing, Xi’an, Nanjing and Jurong, with a primary focus on the development of residential properties, as well as residential and commercial complex properties; types of products include apartments, villas, offices and retail shops, etc. The saleable gross floor area of properties which had not been sold or presold was approximately 4.60 million sq m as at 31 December 2022.

During the Year, the Group recorded asset management services income of approximately RMB30,457,000 (2021: RMB18,934,000).

The State Council’s government work report at the Two Sessions set the GDP growth rate of 2023 at approximately 5 per cent, and gave much support for real estate policy. With the introduction of favourable policies such as the “three arrows” of real estate policy and the “16 points financial measures”, the credibility of real estate enterprises and real estate sales are expected to improve. The probability of a rebound in property sales will increase in the coming year, leading to a stabilization of property investment and substantial credit easing. China Merchants Land will strive to keep the level of three expenses below the industry benchmark, reduce the cost of capital and strive for management bonus. With a “people-oriented” philosophy, the Company will practically improve the quality of products and services, and strengthen the cultivation of staff talent. The Company will also strengthen the application of digital empowerment while leveraging online marketing to speed up inventory turnover and maintain long-term stable operation.

China Merchants Land Limited (“China Merchants Land” or the “Company”, stock code: 00978.HK) together with its subsidiaries (the “Group”) is pleased to announce that Fortune Hope Limited, a consortium formed by the Group and Sino Land Company Limited (“Sino Land”, stock code: 00083.HK) has won the tender for the Wing Kwong Street/ Sung On Street Development Project from the Urban Renewal Authority.

The waterfront project not only offers sea views, but has a geographical advantage of being located near the To Kwa Wan Station and served by a comprehensive transportation network. The project covers a site area of 2,876 square metres. It is estimated that approximately 500 residential units could be built, with a maximum total gross floor area of 25,884 square metres. Premium residences and related ancillary facilities will be constructed in compliance with the requirements of the master design control of To Kwa Wan district. The project includes a vast green belt, offering both park and sea views and, upon completion, create synergy with adjoining infrastructure development projects in the district.

China Merchants Land has actively participated in land acquisition by cooperating with large property developers in Hong Kong. Mr. Yu Zhiliang, General Manager of China Merchants Land, said: “Our cooperation with Sino Land allows us to combine the resources and experiences of both companies, to introduce placemaking and sustainable development elements to the project. The project will not only include smart home design, but also create a comfortable living environment. We believe that the Hong Kong property market is undergoing consolidation, and this provides us with the opportunity to expand our land bank. The robust local demand will provide strong support for quality residential properties tailored for the mass market.”

Adhering to the principle of “continued capability and services improvement, and innovative development”, China Merchants Land continues to optimise its business development and expand its land bank. The Group leverages the vast platform advantage of its parent companies, the China Merchants Group and China Merchants Shekou Industrial Zone Holdings Co., Ltd., and combines such with its own core competitiveness comprehensive strengths to fully utilise various resources in order to continue to expand its scale. It will proactively pay attention to the investment opportunities in Hong Kong and overseas markets, with greater involvement in the development of quality properties in Hong Kong. It will also strengthen the existing businesses in Hong Kong, thereby creating greater value for shareholders.

China Merchants Land Limited (“China Merchants Land” or the “Company”, stock code: 00978.HK) together with its subsidiaries (the “Group”) announced a revenue of RMB13,794,534,000 (2021 corresponding period: RMB7,304,633,000) for the six months ended 30 June 2022 (the “Period”), representing a year-on-year increase of approximately 89 per cent, mainly attributable to the Group’s striving to increase the total gross floor area (“GFA”) completed and delivered during the Period. Profit for the Period amounted to RMB824,670,000 (2021 corresponding period: RMB560,168,000), representing an increase of approximately 47 per cent. During the Period, basic earnings per share of the Group was RMB5.09 cents.

During the Period, the Group, together with its associated companies and joint venture companies, achieved an aggregate contracted sales amount of approximately RMB20,658,700,000, with an aggregate contracted sales area of approximately 802,104 sq m. The average selling price amounted to approximately RMB25,756 per sq m.  

As at 30 June 2022, the Group’s net gearing ratio was 78 per cent. The Group will continue to adopt relatively stable financial policies and to control the net gearing ratio at the industry average level.

As at 30 June 2022, the Group’s portfolio of property development projects consisted of 49 projects in Foshan, Guangzhou, Chongqing, Nanjing, Jurong and Xi’an, with a primary focus on the development of residential properties, as well as residential and commercial complex properties; products types included apartments, villas, offices and retail shops, etc. For the first half of 2022, projects in Foshan, Guangzhou, Chongqing, Nanjing, Xi’an and Hong Kong accounted for 3.5 per cent, 4.1 per cent, 28.1 per cent, 42.4 per cent, 21.6 per cent and 0.3 per cent of the total turnover of the Group respectively. The saleable GFA of the properties comprising the projects that had not been sold or presold as at 30 June 2022 was 5,064,331 sq m.

During the Period, China Merchants Land Asset Management Co., Limited, a wholly-owned subsidiary of the Company and the REIT manager of the China Merchants Commercial Real Estate Investment Trust, recorded asset management service income of approximately RMB9,765,000.

In the second half of 2022, the Company will strengthen its focus on advantageous areas in advantageous cities, increase the use of data tools for scientific decision-making, and control risks from the investment side. It will also grasp structural opportunities and intensify development of existing advantageous areas to achieve steady growth by enhancing its product and service strengths. Moreover, the Group will leverage on the platform of its parent companies, the China Merchants Group and China Merchants Shekou Industrial Zone Holdings Co., Ltd. It will proactively pay attention to the investment opportunities in Hong Kong and overseas markets, with greater involvement in the development of quality properties in Hong Kong. It will also strengthen the existing businesses in Hong Kong, thereby creating value for shareholders.

China Merchants Land Limited (“China Merchants Land” or “the Company”, stock code: 00978) and its subsidiaries (the “Group”) announced an audited revenue of RMB25,921,416,000 (2020: RMB18,956,418,000) for the year ended 31 December 2021 (the “Year”), representing a year-on-year increase of approximately 36.7 per cent. Profit for the Year amounted to RMB1,582,866,000 (2020: RMB1,513,445,000). The Group’s basic earnings per share for the Year were RMB11.43 cents (2020: RMB14.30 cents). The board of China Merchants Land recommended the payment of a final dividend of HK$0.06 per share in respect of the year ended 31 December 2021.

In 2021, China’s economy recovered steadily on all fronts under the effective prevention and control of the epidemic. The real estate industry experienced robust sales in the first half of the year, with most of the real estate enterprises accelerating the launch of projects amidst an active market. In the second half of the year, the new and secondary property markets cooled down due to austerity measures and tightened credit environment, but the overall market remained at relatively large scale throughout the year. Adapting to market changes, China Merchants Land achieved stable business development. During the Year, the Group, together with its associates and joint ventures, achieved an aggregate contracted sales of RMB55,196,000,000 (2020: RMB49,874,000,000), representing a year-on-year increase of approximately 10.7 per cent. Aggregate contracted sales area was 2,392,049 sq m (2020: 2,753,576 sq m), representing a year-on-year decrease of approximately 13.1 per cent. The average selling price was approximately RMB23,075 per sq m (2020: RMB18,113 per sq m), representing a year-on-year increase of approximately 27.4 per cent.

The Group’s financial position remained sound. As at 31 December 2021, the Group’s net gearing ratio was 65 per cent (2020: 31 per cent). The Group further utilizes the flexibility of its capital structure and resources in a rational manner according to project needs. In addition, the capital cost of the Group remained at an industry-low level. The weighted average finance costs was 4.6 per cent at the end of the Year.

As at 31 December 2021, the Group had 50 property development projects in Guangzhou, Foshan, Chongqing, Xi’an, Nanjing and Jurong, with a primary focus on the development of residential properties, as well as residential and commercial complex properties, types of products include apartments, villas, offices and retail shops, etc. In 2021, sales from projects in Foshan, Guangzhou, Chongqing, Nanjing and Jurong, Xi’an and Hong Kong accounted for approximately 14.9 per cent, 8.6 per cent, 34.7 per cent, 32.8 per cent, 8.7 per cent and 0.3 per cent, respectively, of the total revenue of the Group. The saleable gross floor area of properties which had not been sold or presold as at 31 December 2021 was 5.406 million sq m.

During the Year, the Group recorded asset management services income of approximately RMB18,934,000.

According to the “Medium and Long-term Development Dynamic Model of China’s Real Estate Industry”, China’s real estate market will maintain a stable development trend in 2022, with sales area and new construction area expected to decline, while average sales price and investment growth rate will run steadily. China Merchants Land will adhere to the spirit of “continuous innovative and in-depth urban development”. In response to the rhythm of market changes, the Company will seize market opportunities in the process of industry adjustment to ensure stable business development. At the same time, the Group will strictly control its financial resources, enhance the efficiency of capital utilization and ensure the safety of cash flow. The Group will continue its prudent investment strategy, focusing on mainstream core cities, and to enhance brand competitiveness. At the time of industry restructuring, the Group will make full use of its advantages as a state-owned enterprise. In addition, the Group will continue to explore the potential of quality businesses in Hong Kong and overseas, actively focus on investment opportunities in Hong Kong and overseas regions, increase its participation in quality property development in Hong Kong, strengthen the Group's existing investment business in Hong Kong and create value for shareholders.