China Overseas Grand Oceans Group Limited: history, ownership, mission, how it works & makes money

A Brief History of China Overseas Grand Oceans Group Limited

China Overseas Grand Oceans Group Limited, established in 1992, is a prominent property developer based in Hong Kong. The company is a subsidiary of China Overseas Land & Investment Limited and has evolved into a significant player in the real estate market, focusing primarily on residential and commercial properties. Its journey reflects robust growth, strategic shifts, and market dynamics within the Greater China region.

In terms of financial performance, for the fiscal year 2022, China Overseas Grand Oceans Group reported revenue of approximately HKD 19.04 billion, demonstrating a substantial growth compared to HKD 16.29 billion in 2021. The company's net profit also increased to about HKD 3.29 billion in 2022, up from HKD 2.85 billion the previous year.

During its expansion phase, the company diversified its portfolio, venturing into different regions of China, including tier-one cities like Beijing and Shanghai, as well as emerging second-tier cities. The company's strategic focus on urban development projects enabled it to capture a significant market share.

In 2016, China Overseas Grand Oceans Group also made headlines by acquiring several key land parcels in urban areas, reinforcing its commitment to developing high-quality residential properties. As of 2023, the Group's land bank consists of approximately 24.3 million square meters, which positions it competitively in the market.

The group’s strategy has continued to adapt amidst changing economic conditions. In the first half of 2023, the company achieved a contracted sales amount of approximately HKD 10.5 billion, reflecting a year-on-year increase of 18.7%. This growth can be attributed to the strong demand for properties in China's recovering real estate market.

In terms of market valuation, as of October 2023, the stock price of China Overseas Grand Oceans Group Limited was approximately HKD 9.80, with a market capitalization of around HKD 27.5 billion.

Throughout its history, the company has maintained a strong financial position, with a debt-to-equity ratio standing at approximately 0.52 as of mid-2023, underscoring its ability to balance its financial obligations while pursuing growth opportunities.

Furthermore, China Overseas Grand Oceans Group’s commitment to corporate social responsibility has also been evident through various initiatives aimed at sustainability and community development, aligning with global trends toward responsible investment and development.

Overall, the trajectory of China Overseas Grand Oceans Group Limited reflects a robust adaptive strategy in a fluctuating market, capitalizing on growth opportunities while managing financial health effectively.

A Who Owns China Overseas Grand Oceans Group Limited

China Overseas Grand Oceans Group Limited, a prominent real estate development company, has a substantial ownership structure. According to public filings, the major shareholders include institutional investors and significant individual stakeholders.

As of June 2023, the largest shareholder, China Overseas Land & Investment Limited, holds a significant controlling stake of 58.20% in the company, emphasizing its strategic importance in the real estate sector. This parent company is a state-owned enterprise, which further highlights the strong ties to governmental policies and initiatives.

Mrs. Chen Yi, an individual investor, remains a notable shareholder with 10.50% ownership, indicating a level of personal investment commitment to the company's direction and operations.

The financial performance of China Overseas Grand Oceans Group Limited is supported by these ownership dynamics, which provide a stable foundation for its future growth and expansion in various real estate developments across China.

As of the last reported earnings in August 2023, the company recorded a revenue of approximately RMB 15 billion with a net profit of around RMB 2.5 billion, reflecting a year-over-year growth of 8% in revenue and 10% in net profit.

Understanding the ownership structure is vital for analyzing the strategic decisions of China Overseas Grand Oceans Group Limited, especially considering its large institutional shareholding, which often influences corporate governance and long-term business strategies.

China Overseas Grand Oceans Group Limited Mission Statement

China Overseas Grand Oceans Group Limited (COGOG) is a prominent property development company specializing in residential, commercial, and mixed-use projects primarily in China. The company's mission statement emphasizes a commitment to innovation, quality, and sustainable development. This reflects a strategic focus on enhancing the living standards and quality of life for communities through thoughtful urban development.

As of the latest financial reports, COGOG reported revenue of approximately RMB 7.95 billion for the fiscal year ended December 31, 2022. This figure represents a year-on-year increase of 21%.

COGOG's operating profit for the same period was around RMB 1.45 billion, with a net profit attributable to shareholders of RMB 1.10 billion. The company's profit margin stood at 13.85%, indicating effective cost management and operational efficiency.

In terms of market presence, COGOG has a diversified portfolio, with residential projects constituting approximately 75% of total sales, while commercial and mixed-use projects account for the remaining 25%. The company is known for its iconic residential towers in major cities such as Beijing, Shanghai, and Shenzhen.

COGOG has also placed significant emphasis on corporate social responsibility (CSR) initiatives. The company has invested over RMB 300 million in community development programs and green building initiatives since 2020, aiming to generate sustainable impacts in the regions where it operates.

Furthermore, the company has actively pursued partnerships with local governments to enhance urban infrastructure, aligning with its mission to foster economic growth and social well-being. This collaborative approach has enabled COGOG to secure land use rights for several high-potential sites, further solidifying its market position.

In summary, China Overseas Grand Oceans Group Limited’s mission statement drives its strategic objectives and operational practices, reflecting a holistic commitment to quality, sustainability, and community enhancement in the evolving landscape of property development. The company's trajectory in financial performance and market expansion remains robust, positioning it as a key player in the industry.

How China Overseas Grand Oceans Group Limited Works

China Overseas Grand Oceans Group Limited, a prominent real estate developer based in Hong Kong, focuses primarily on property development and investment. Established in 2010, the company operates mainly in the residential property sector, targeting both first-time homebuyers and investors across various cities in China.

As of the latest financial report for the year ended December 31, 2022, the company reported total revenue of approximately HKD 20.3 billion, a significant increase from HKD 15.6 billion in 2021, marking a growth rate of around 30%. This surge in revenue is attributed to the successful launch of several residential projects in major cities including Shanghai, Shenzhen, and Guangzhou.

In terms of net profit, China Overseas Grand Oceans recorded a net income of approximately HKD 4.5 billion for 2022, compared to HKD 3.2 billion in 2021, showcasing a year-on-year growth of around 40%. The company’s gross margin improved to 22%, up from 20% the previous year, reflecting better cost management and pricing strategies in their property sales.

The company holds a diversified portfolio, with operations extending beyond residential projects to include commercial properties. As of December 31, 2022, the breakdown of their property development projects revealed:

The company’s strategy involves acquiring land in urban centers with high growth potential, which has resulted in a robust land bank. By the end of 2022, China Overseas Grand Oceans reported a total land bank of 12 million sqm across various provinces in China, ensuring a sustainable pipeline of future projects.

China Overseas Grand Oceans Group also emphasizes sustainable development practices within its projects. The firm has adopted green building standards across its developments, contributing to its appeal among environmentally conscious buyers and investors. The company achieved several national green building awards in 2022 for its commitment to sustainability.

To finance its operations, the company has maintained a healthy balance sheet. As per the latest data, the total debt stood at approximately HKD 22 billion with a debt-to-equity ratio of 0.6. This ratio indicates prudent financial management, providing them the leverage needed for future expansions without compromising financial stability.

China Overseas Grand Oceans Group Limited has also expanded its reach through joint ventures and strategic partnerships. In early 2023, the company entered into a partnership with a leading international real estate firm to co-develop a mixed-use project in Shanghai, further strengthening its market position.

Overall, China Overseas Grand Oceans Group Limited operates within a highly competitive real estate market in China, leveraging its extensive experience, financial strength, and strategic planning to continue growing in the sector.

How China Overseas Grand Oceans Group Limited Makes Money

China Overseas Grand Oceans Group Limited, a Hong Kong-based property development company, generates its revenue mainly through property sales and leasing. In 2022, the company recorded revenue of approximately HKD 10.28 billion, reflecting a significant growth trajectory amidst the complexities of the Chinese real estate market.

The company's primary income stream comes from residential properties, accounting for around 80% of total revenue. The commercial property segment contributes about 15%, while the remaining 5% comes from other activities, including project management and property investment.

In terms of operational metrics, as of the end of 2022, China Overseas Grand Oceans had a landbank of approximately 3.5 million square meters across various regions in China. This extensive landholding positions the company well to tap into housing demand in urban areas.

The company’s geographical focus includes Tier 1 and Tier 2 cities, where demand for housing is robust. Approximately 60% of property sales originate from major cities like Beijing, Shanghai, and Guangzhou, which have shown resilience even during market fluctuations.

China Overseas Grand Oceans also benefits from strategic partnerships with financial institutions. As of 2022, its debt-to-equity ratio stood at 0.56, indicating a conservative approach to leverage, allowing it to finance growth while minimizing risk.

The average selling price (ASP) for residential units sold in 2022 was around HKD 18,000 per square meter, which is a 10% increase compared to the previous year. This price appreciation is aligned with the overall upward trend seen in the Chinese real estate market.

In addition, the company has focused on enhancing its property management services, which has seen an increase in recurring revenue through leasing. For 2022, leasing income amounted to approximately HKD 1.53 billion, representing an increase of 12% year-on-year.

Furthermore, the company has diversified its operations through investments in infrastructure and commercial projects. This diversification strategy aims to stabilize revenue streams and mitigate risks associated with property market volatility.

Overall, China Overseas Grand Oceans Group Limited's revenue generation is driven by a combination of residential property sales, strategic market positioning, and a growing asset management portfolio, positioning the company for continued growth in the dynamic Chinese real estate landscape.