Breaking Down Tian An China Investments Company Limited Financial Health: Key Insights for Investors

From its 1986 founding to becoming the first China Concept Stock on the HKEX in 1987, Tian An China Investments Company Limited has evolved into a diversified real estate and healthcare operator - a Hong Kong-listed subsidiary of Allied Group (ticker: 0028.HK) that employs 3,646 people (as of 31 Dec 2024) and stood at a market capitalization of HK$6.74 billion on 24 Oct 2025; despite reporting a loss of HK$142.9 million in 2024 due to higher admin costs and valuation drops, the group announced a projected surge to profits between HK$2.2-2.4 billion for H1 2025 driven by a Shanghai residential handover, while maintaining a robust net current asset value of HK$2.8 billion as at 30 June 2025 - a financial platform that supports its four operating segments (Property Development, Property Investment, Healthcare and Other Operations), revenue streams from sales and leasing of residential, office and retail properties, healthcare and eldercare services, golf course operations, medical-equipment trading, securities and lending activities, and material financial assistance/guarantees to affiliates exceeding 8% under the assets ratio per Rule 14.07(1), positioning Tian An for the strategic moves detailed in the sections ahead.

Tian An China Investments Company Limited (0028.HK): Intro

• Founded: 1986 (Hong Kong-based investment holding company)
• Historic listing: 1987 - first China concept stock on the HKEX
• Core activities: property development, investment properties, healthcare and eldercare facilities in Mainland China

• Property development: sale of completed residential and mixed‑use developments (recognition at handover triggers large revenue items, such as the H1 2025 Shanghai project)
• Investment properties: rental income from office, retail and healthcare/eldercare properties; valuation gains or losses flow through profit or loss when fair value changes
• Property management & services: recurring service fees from managed residential/commercial estates and eldercare operations
• Asset monetisation: strategic disposals, joint ventures or transfers to realise capital value

• Listed structure: public company on the Hong Kong Stock Exchange (stock code: 0028.HK), with share register composed of institutional and retail investors
• Corporate governance: standard board and committee structure per HKEX listing rules; results and project handovers materially affect reported earnings and balance‑sheet ratios
• Related-party and group arrangements: development and project joint ventures are common; investors should review the company's latest annual/interim reports and disclosures for up‑to‑date shareholding schedules and related-party transactions

• Project handovers: timing and recognition of revenue from major residential handovers (e.g., the Shanghai project driving H1 2025 profit guidance)
• Fair value volatility: investment property valuations can swing profit/(loss) materially year-to-year
• Operational costs: administrative expense control is a recurrent driver of reported profitability (noted in 2024 loss)
• Liquidity and working capital: net current asset value (HK$2.8 billion as at 30-Jun-2025) is an indicator of short-term financial strength

Tian An China Investments Company Limited (0028.HK): History

• Parent company: Allied Group Limited (Hong Kong conglomerate)
• Listing: Hong Kong Stock Exchange, ticker 0028.HK
• Primary markets: Mainland China (residential, office, commercial, healthcare/eldercare)

• Core revenue drivers: rental income from investment properties, property sales and development margins, management/operation fees from healthcare and eldercare facilities, and interest income from treasury activities.
• How it funds growth: equity and bond market access via HKEX listing, bank financing (including facilities with guarantees), and intercompany funding within the Allied Group ecosystem.
• Risk/controls note: financial assistance to affiliates and guarantees are monitored under Listing Rule 14.07(1) disclosures; exposure exceeded 8% of assets ratio as at 30 Jun 2025, requiring close regulatory and board oversight.

Tian An China Investments Company Limited (0028.HK): Ownership Structure

• Tian An China Investments Company Limited (0028.HK) focuses on development and investment in residential, office and commercial properties, and the development and operation of healthcare and eldercare facilities across Mainland China.
• The company emphasizes transparency and shareholder engagement - for example, a board meeting is scheduled on August 22, 2025 to approve interim results and consider potential dividend payments.
• Tian An prioritizes effective management and market positioning, noting a significant profit increase in H1 2025 versus H1 2024, alongside disciplined capital allocation and asset recycling.
• Maintaining a strong financial position is core to the company's values - net current asset value stood at HK$2.8 billion as of 30 June 2025.
• The mission explicitly includes providing quality healthcare and eldercare services to support community well-being.

• Development and sale of residential and commercial units - primary source of cash flow and recurring recognition of development profits upon handover.
• Investment properties and leasing - rental income from office/retail assets in Mainland China, Hong Kong and the UK provides recurring revenue and asset value appreciation.
• Healthcare and eldercare operations - service revenue, facility management fees and strategic partnerships in senior living and medical-service assets.
• Asset management and disposals - unlocking value through joint ventures, selective disposals and capital recycling to fund new projects.
• Dividend policy - subject to board approval (e.g., decisions reviewed at the 22 Aug 2025 meeting) and guided by liquidity, net current assets and recurring earnings.

• Focus on high-quality, mixed-use developments and steady growth in healthcare/eldercare service offerings.
• Strengthening liquidity and balance sheet metrics - evidenced by the HK$2.8 billion net current asset position as at 30 June 2025.
• Active capital management: pursuing selective disposals and reinvestment to capture higher-margin opportunities and geographic diversification including the UK.

Tian An China Investments Company Limited (0028.HK): Mission and Values

• Property Development: development and sale of residential, office and commercial properties; primary source of project-based cash inflows.
• Property Investment: recurring rental income from leased office buildings, retail stores, shopping malls, hotels, car parking spaces, industrial units and residential units.
• Healthcare: operation of hospitals, eldercare facilities, healthcare services, and trading of medical equipment and related supplies.
• Other Operations: golf course operations, securities trading and investments, financial services, strategic investments, estate management, property leasing and money lending.

• Development sales recognized on completion or handover.
• Lease and management income from investment properties and car parks (long-term stable cash flows).
• Healthcare service fees, bed-day revenues, outpatient services and medical equipment sales.
• Investment returns from securities trading, dividends, interest income from money lending and strategic disposals.

• Sale of developed properties (project revenue recognition).
• Rental and service income from investment properties and leasing portfolios.
• Healthcare operations: hospital/eldercare service fees, medical equipment sales and related supplies.
• Financial services and investments: securities trading gains, interest from lending, fees from advisory/management services.
• Ancillary operations: golf course income, hotel operations, and property management fees.

Tian An China Investments Company Limited (0028.HK): How It Works

• Property development and sales - residential, office and commercial projects in Mainland China.
• Property investment and leasing - long‑term leasing of office buildings, retail stores, shopping malls, hotels, residential units, industrial units and car parking spaces.
• Healthcare & eldercare operations - hospitals, clinics, eldercare facilities and related services (operations and management fees).
• Hospitality & leisure - hotel operations and golf course revenue (green fees, memberships, events).
• Trading & supplies - distribution and trading of medical equipment and related supplies.
• Financial & investment activities - securities trading and investment income, strategic investments, property estate management fees and money‑lending interest income.

• Development sales: land acquisition → development → pre‑sales/handovers → cash collection from buyers.
• Leasing: asset ownership/long‑term leases → rental contracts → recurring lease income and service charges.
• Healthcare/hotel operations: patient/stay/service billing and facility management contracts → service revenue.
• Trading & services: procurement → wholesale/retail sales of medical equipment → gross margin capture.
• Financial activities: portfolio trading and loan book → realized/unrealized gains and interest income.

• Land bank replenishment and project launch cadence (controls near‑term sales recognition).
• Occupancy rates and rental reversion in leased portfolio (drive recurring cash flow).
• Healthcare utilization and bed occupancy (directly impacts service revenue and margins).
• Cost control on development and construction (gross margin on property sales).
• Investment returns from securities and strategic stakes (non‑operating income volatility).

• Sale of a completed residential block: one‑off large cash inflow and gross profit on handover.
• Leasing a shopping mall unit: monthly rental + service charges providing stable cash yield.
• Hospital operations: treatment fees, diagnostics and ancillary services billed to patients/insurers.
• Money‑lending business: interest accrual and fee income from loans to corporate or retail clients.

• Sales cycle exposure - property development revenue is lumpy and sensitive to macro housing demand.
• Rental market and vacancy risk - leasing income depends on occupancy and tenant mix.
• Healthcare regulation and reimbursement changes - impacts margins and patient mix.
• Interest rate and funding cost volatility - affects margins on development and lending activities.

Tian An China Investments Company Limited (0028.HK): How It Makes Money

• Market position: market capitalization HK$6.74 billion (as of 24 Oct 2025).
• Balance-sheet strength: net current asset value HK$2.8 billion (30 Jun 2025).
• Short-term earnings catalyst: projected H1 2025 profit between HK$2.2-2.4 billion driven by Shanghai residential project handover.
• Corporate governance: board meeting scheduled 22 Aug 2025 to approve interim results and consider dividends.
• Group support: financial assistance and guarantees for affiliated companies exceeded 8% under the assets ratio (Rule 14.07(1), 30 Jun 2025).

• Property development sales - front-loaded, large one-off margins from completed project handovers (e.g., Shanghai project impacting H1 2025).
• Investment property rental - steady recurring income from office, retail and commercial assets.
• Healthcare & eldercare operations - fee-based services and facility leasing providing diversification and longer-duration cashflows.
• Property management and ancillary services - lower-margin but stable recurring revenue.
• Intercompany financing and guarantee fees - interest and fee income from affiliated arrangements, with balance-sheet exposure noted by the >8% assets-ratio figure.