SINGAPORE (Feb 27): Ying Li International Real Estate reported earnings of RMB65.8 million ($13.5 million) for the fourth quarter ended Dec 31, a 42.4% decline from the RMB114 million of earnings it posted a year ago.
This brings the group’s FY16 earnings to RMB87.7 million, 30.5% lower compared to its FY15 earnings of RMB125.2 million.
The decline in quarterly earnings is entirely due to a decline in fair value gain in investment property and other investment as compared to the previous year, says the group in its filing to the SGX on Monday.
Excluding the fair value gain and its associated deferred tax expenses in both periods, profit for FY16 would have risen by RMB47.4 million in comparison to the previous year, it adds.
Revenue for the quarter grew 85% to RMB567.9 million compared to RMB306.9 million, which was mainly due to higher revenue from the group’s sale of properties segment due to the commencement of units’ handover at Ying Li IEC Phase 1A.
Rental income increased by 11.5% to RMB54.7 million as compared to RMB49 million in 4Q15.
Administrative expenses grew 35% for the quarter to RMB15.4 mllion due to an increase in foreign exchange losses arising from a USD denominated loan, bad debt provision and an increase in staff costs.
As a result of the higher revenue, gross profit for the quarter grew 84.4% to RMB66.8 million, although gross profit margin for the quarter decreased by 0.1 percentage point by 25.7% as compared to the same period last year.
In its outlook, Ying Li says its existing projects are “poised to benefit from any uptick in demand”, in view of Chongqing’s “promising economic outlook”.
Moving forward, the group intends to focus on developing high quality commercial, residential and bespoke projects at prime locations in Chongqing, as well as in Tier 1 and fast-growing Tier 2 cities within China.
Shares of Ying Li closed flat at 16 cents on Monday.
