SINGAPORE (May 15): China-based real estate developer Yanlord Land Group posted a more than three-fold surge in earnings to RMB 934.1 million ($189.9 million) for the first quarter ended March, from RMB 260.1 million a year ago.
Group revenue in 1Q17 increased by 122% to RMB 6.3 billion, from RMB 2.9 billion in the corresponding period last year.
This was mainly attributable to a significant increase in gross floor area delivered to customers during the quarter.
In 1Q17, the group delivered higher-priced projects including Yanlord Yangtze Riverbay Town (Phase 4) in Nanjing, Yanlord Western Gardens in Shanghai, and Yanlord Marina Centre – Section B in Zhuhai.
Yanlord posted a gain of RMB 189.3 million from share of profit of joint ventures, compared to a loss of RMB 6.0 million a year ago.
This was mainly attributable to revenue generated from urban development project Sino-Singapore Nanjing Eco Hi-tech Island, and the delivery of residential properties in Tangshan Nanhu Eco-City.
Cash and cash equivalents stood at RMB 13.1 billion as at March 31, 2017.
In addition, Yanlord says its net debt to total equity gearing ratio of 51.0% provides it with the necessary foundations to drive its future development.
“The strong performance in the period was achieved against the backdrop of the PRC Central Government’s support for the sustainable development of the PRC real estate sector,” says Yanlord Chairman and CEO Zhong Sheng Jian.
“Capitalising on our sales momentum and foundations of our healthy performance, we remain confident about the long-term potential of the PRC real estate sector and will seek to leverage on our healthy financial position to explore opportunities to acquire fairly priced developments that will augment our existing prime landbank holdings,” Zhong adds.
Shares of Yanlord Land closed 1.5 cents lower at $1.81 on Monday.
