SINGAPORE (Feb 27): Yanlord Land the developer of luxury residential apartments in selected Chinese cities, reported FY18 earnings grew 10.2% to RMB 3.5 billion ($715 million) from a year ago.
This came on the back of 51% higher other operating income and other gains of RMB 714.6 million as well as a 164% rise in fair value gain on investment properties of RMB 391.4 million..
Revenue in FY18 declined to RMB 24.9 billion from RMB 25.6 billion in FY17 mainly due to the lower Average Selling Prices (ASP) per sqm achieved in FY18 which was partly offset by the 13.6% increase in GFA delivered in FY18 compared to FY17.
Delivery of apartment units at Yanlord on the Park in Shanghai, Tianjin Jinnan Land (Phase 3), Yanlord Western Gardens in Shanghai and Oasis New Island Gardens (Phase 3) in Nanjing, contributed 25.1%, 15.4%, 11.9% and 10.8% respectively to the group's gross revenue on sales of properties in FY18.
In line with the lower revenue, gross profit decreased by 4.9% to RMB 11.5 billion in FY18 compared to RMB 12 billion in FY17.
Yanlord’s board has proposed a first and final dividend of 6.8 cents per ordinary share.
For 4Q18, Yanlord reported earnings of RMB 257 million while revenue fell 79% to RMB 2.3 billion on lower average selling price (ASP) projects with a smaller gross floor area (GFA).
As at Dec 31, Yanlord had cash and cash equivalents position of RMB 10.3 billion while net debt to total equity ratio was 96.8%.
Looking ahead, the group will continue to launch new projects and new batches of its existing projects in 1Q19 including Hangzhou Intelligent City Project - Commercial Land Parcels (Phase 1), Jinan CBD Project - B5 Land, Yanlord Phoenix Hill (Phase 1) in Nanjing, Riverbay Gardens (Phase 1 and 2) in Suzhou, Yiwan Gardens in Tianjin, Yanlord on the Park in Wuhan and Yanlord Marina Centre - Section B in Zhuhai.
The group says it continues to see healthy pre-sale accumulation on the back of sustained market demand for high-quality residential developments. Accumulated pre-sales pending recognition as at Dec 31 2018 was RMB 12.9 billion and will be progressively recognised as revenue in subsequent financial periods. As at Dec 31 2018, the group has received RMB 9.9 billion as advances for pre-sold properties.
Shares in Yanlord closed 1 cent lower at $1.46 on Wednesday.
