SINGAPORE (Mar 1): Yanlord Land Group announced fourth quarter earnings dropped 23% to RMB 1.19 billion ($248.9 million) in 4Q17 from RMB 1.55 billion in 4Q16.
This brings full-year earnings to RMB 3.22 billion in FY17, 19% higher than RMB 2.70 billion in FY16.
Revenue for the quarter was 14% higher at RMB 11.3 billion from RMB 9.90 billion a year ago, as a result of the increase in average selling price (ASP) per sqm, but was partially offset the decrease in gross floor area (GFA) delivered to the customers.
Cost of sales saw a 1% increase y-o-y to RMB 5.75 billion, bringing gross profit to RMB 5.53 billion, 31% higher than RMB 4.21 billion last year.
Other operating income dropped 48% to RMB 254.6 million compared to RMB 486.4 million in the previous year, mainly attributed to decrease in fair value gain on investment properties and interest income.
Administrative expenses increased by 34% to RMB 262.9 million from RMB 196.1 million a year ago.
During the quarter, the group incurred a share of loss of associates of RMB 4.48 million, compared to a profit of RMB 1.12 million last year.
Share of profit of joint ventures declined by 90% to RMB 1.69 million compared to RMB 17.5 million in the previous year, which mainly resulted from Yanlord Perennial Investment and Tangshan Nanhu Eco-City project.
The group has proposed a first and final cash dividend of 6.80 cents per share.
Zhong Sheng Jian, chairman and CEO of Yanlord says, “Looking ahead, Yanlord remains 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 to further augment our existing holdings.”
Shares in Yanlord closed at $1.65 on Thursday.
