SINGAPORE (May 14): Yanlord Land, the developer of property in China’s high-growth cities, reported a 15% fall in 1Q earnings to RMB797 million ($168 million) from a year ago.
Yanlord says this was in line with greater profit recognition from projects with a larger attributable portion for non-controlling interests.
Revenue in 1Q18 rose 14% to RMB7.2 billion from RMB6.3 billion in 1Q17 led by higher average selling price (ASP) during the period.
ASP in 1Q18 doubled to RMB80,172 per sqm compared to that of 1Q17. Profit for the period similarly rose 22.4% to RMB1.8 billion in 1Q18 from RMB1.5 billion in 1Q17.
Gross profit rose 28.1% to RMB4 billion in 1Q18, led by the higher priced projects, Yanlord on The Park and Yanlord Western Gardens in Shanghai, which accounted for 74.3% and 13.7% respectively to the group’s gross revenue on sales of properties in 1Q18.
Gross profit margin expanded to 55.7% in 1Q18 from 49.5% in 1Q17.
Yanlord says it continues to witness healthy buyer interest for its high-quality developments.
As at March 31, accumulated pre-sales pending recognition was RMB18.197 billion and will be progressively recognised as revenue in subsequent financial periods. The group has also received RMB16.602 billion as advances for pre-sales of properties.
Cash and cash equivalent balance stood at RMB16.235 billion.
Looking ahead, Yanlord will launch a new project and new batches of existing projects in 2Q18 namely, Oasis New Island Gardens (Phase 2) and Yanlord Taoyuan Gardens in Nanjing, Yanlord on the Park and Yanlord Western Gardens in Shanghai, Tang Yue Bay Gardens and Riverbay Gardens in Suzhou, Tianjin Hong Qiao Land (Phase 1) in Tianjin as well as Yanlord Marina Peninsula Gardens (Phase 2) in Zhuhai.
Shares in Yanlord closed 1 cent lower at $1.67 on Monday.
