(Yicai Global) May 9 -- Xiao Xiao, chairman of the board of directors at real estate firm China Overseas Land & Investment Ltd. [HK:00688] (COLI), has resigned as he has reached retirement age.
Yan Jianguo, who took up the positions of executive director and administrative president from Jan. 1, 2017, was elected as chairman of the board and will be promoted to this position effective June 13.
Since Yan became administrative president, the company's development ideas have changed. COLI shelled out far more than domestic peers China Evergrande Group [HK:3333] and China Vanke Co. [HK:2202] on purchasing land use rights in the first four months this year, Tospur data shows. COLI spent CNY41.3 billion (USD6 billion), ranking third after only Country Garden Holdings Co. [HK:2007] and Poly Real Estate Group Co. [SHA:600048]. COLI's real estate sales ranked sixth in the same period.
In past years, COLI operated in a different way. It mainly obtained land reserves by leveraging its resource advantage as a state-owned company to acquire large-scale firms, and when land prices in large and medium-sized cities increased significantly, COLI avoided bidding on use rights on the open market.
Although it is smaller than Vanke, Evergrande, and Poly Real Estate, COLI's net profits were number one in the industry for years as the group avoided high prices and did a better job of managing costs.
COLI's new leadership focuses on profits and pursuing scale. Both the way and structure of land purchasing are changing, Yan said at a press conference in March.
COLI may adjust scale, benefits, opportunities, and risks, Yan said.