'We will invest about 40 billion yuan in the coming three to five years,' said Mr Kong, adding that the firm's investment timetable depended on the mainland property market.

The firm's aggressive acquisition of 12 mainland sites, including property in Beijing, Shenzhen and Nanjing, added 5.5 million square metres to an existing 9.5 million square metre land bank. This raised its gearing ratio to 21 per cent last year, up from 3 per cent the previous year.

Its bank loans and overdraft climbed 87 per cent to $4.86 billion - the firm's second highest after a $5.2 billion loan in 1997.

But the pace of land bank replenishment will slow to between one million and 1.5 million square metres this year, according to a company results announcement released yesterday.

The firm reported a 56 per cent jump in net profit to $1.07 billion for the year to December, thanks to expansion of its mainland development business and sales of Hong Kong luxury residential projects Ellery Terrace and Regalia Bay.

Its turnover increased 13 per cent to $8.62 billion, with mainland property development activity, which accounts for more than 52 per cent of turnover, contributing most of the increase.

The firm has declared a final dividend of four cents, raising the payout for the year to six cents from five cents in 2003. Earnings per share increased to 17.11 cents from 12.74 cents the previous year.

Mr Kong said the firm would spend up to 200 million yuan on acquiring a goldmine in Shandong, which is generating annual profit of about 50 million yuan. 'We will invest about 100 million yuan initially and we may then acquire the whole project by investing 100 million more,' he said, adding that the firm had already signed a letter of intent with the seller. The acquisition is expected by the end of this year.

During 2004, the company also acquired a firm that built and which now operates and manages a bridge in Nanjing. However, Mr Kong said the firm had no immediate plans to increase its investment in non-property related business. 'The goldmine is an exceptional acquisition,' he said. 'Such chances only rarely emerge. While we always want to invest about 10 per cent of total investment in infrastructure business, we often can't find enough appropriate projects.'

The firm is applying to the China Securities Regulatory Commission for an A-share listing, which may help it to raise $1 billion to $1.5 billion.

Meanwhile, Sun Wenjie, president of China State Construction Engineering Corp, China Overseas Land and Investment's ultimate holding company, yesterday resigned as chairman and executive director of China Overseas Land and Investment.