SINGAPORE (Aug 14): Yanlord Land Group posts earnings of RMB 1.40 billion ($285.6 million) for the 1H ended June, more than double from earnings of RMB 584.1 million a year ago.
This was mainly to due lower cost of sales as well as higher share of profit of joint ventures during the period.
Cost of sales, which mainly included land, construction, and capitalised borrowing costs, fell 29% to RMB 5.66 billion in 1H17, from RMB 7.94 billion a year ago.
The decrease was in line with lower gross floor area delivered in 1H17, as well as the change in composition of product mix to include relatively lower-cost projects.
The group recorded share of profit of joint ventures of RMB 197.6 million in 1H17, compared to a loss of RMB 9.8 million a year ago. This was mainly contributed by the Sino-Singapore Nanjing Eco Hi-tech Island urban development project.
Group revenue grew 3.3% to RMB 10.60 billion in 1H17, from RMB 10.26 billion a year ago.
The higher revenue was on the back of an increase in average selling price (ASP) per square metre in 1H17 primarily due to a change in product mix composition that included relatively higher-priced projects. In addition, Yanlord Land saw increased car park sales in the period.
As at end June, cash and cash equivalents stood at RMB 16.09 billion.
“The healthy growth in net profit for the group in 1H 2017 was underlined by sustained homeowner interest for our high-quality developments in the PRC,” says Yanlord chairman and CEO Zhong Sheng Jian.
“In addition, building on our business strategies and comparative advantages in the development of quality residential apartments in prime locations, we actively sought out opportunities to augment our prime landbank holdings,” he says.
Shares in Yanlord closed 7.5 cents, or 4.3%, higher at $1.82 on Monday.
