In contrast to the robust performance of the Singapore market, the primary market for Yanlord Land Group Limited (“Company” and together with its subsidiaries, “Yanlord” or “Group”) – the People’s Republic of China (“PRC”) – continued its downward trend in 2024. According to the statistics, the PRC’s real estate sector saw year-on-year declines across all three key indicators: property investment, sales value and transaction volume, with sales value recording the steepest decline at approximately 17%. The market correction, falling prices, and weakened consumer and investor confidence have weighed on the real estate sector, reflecting broader challenges facing the PRC economy.
Throughout 2024, the PRC government introduced a series of supportive and stimulus policies to revitalise the real estate market, with the explicit objective to “halt the decline and restore stability”
– demonstrating an unprecedented level of political will. The combined effect of these policies has begun to yield results, with the real estate market showing signs of improvement in the fourth quarter of 2024. Against the backdrop of this unprecedented market uncertainty, I would like to take this opportunity, while presenting the Group’s results for the financial year ended December 31, 2024 (“FY 2024”), to share with all shareholders the measures Yanlord has taken to navigate these challenges and its strategic vision for future development.
For Yanlord, FY 2024 saw a decline in revenue from its previous peak. While Yanlord’s growth trajectory extended two years beyond the broader PRC property market downturn, it ultimately could not withstand the prevailing market conditions.
The Group’s total revenue declined by 16.1% year-on-year to RMB36.397 billion in FY 2024. While the total floor area delivered by the Group in FY 2024 saw a slight increase compared to the financial year ended December 31, 2023 (“FY 2023”), the overall gross profit from these deliveries declined due to a change in the composition of product-mix delivered and a write-down of completed properties for sale and properties under development for sale. The joint venture projects – The Oasis Mansion in Shanghai and Hangzhou Bay (Phase 2) in Hangzhou – were delivered on schedule and contributed positively to the Group’s results. However, these contributions were insufficient to offset the impact of impairment provisions made for property development projects in the PRC due to the market downturn.
The Group reported a loss of RMB3.763 billion in FY 2024 and a loss attributable to the owners of the Company of RMB3.422 billion, primarily due to a write-down of completed properties for sale and properties under development for sale amounting to RMB3.370 billion, net impairment losses on financial assets amounting to RMB2.104 billion, and a fair value loss on investment properties amounting to RMB222 million.
The Group’s management implemented proactive measures, including accelerating sales and optimising cost efficiencies, to maintain financial stability and enhance financial resilience. While unable to reverse broader market trends, the Group’s strategic adjustments were well-timed, aligning with the PRC government’s comprehensive easing policies. Through proactive debt reduction, as of December 31, 2024, compared to the end of FY 2023, total borrowings decreased by 21.1% to RMB26.375 billion, while net debt reduced to RMB16.184 billion, improving the net gearing ratio to 41.3%. Operationally, management implemented comprehensive cost-saving initiatives throughout the year, reducing administrative expenses by 19.5% year-on-year and lowering borrowing costs by 33.1% through debt reduction.
Additionally, lower domestic borrowing rates and the PRC government’s supportive policies contributed to a sales recovery in the fourth quarter of 2024, providing the Group with valuable time to navigate through this cyclical market downturn.
Despite the broader economic slowdown in the PRC, the Group’s investment property portfolio continued to demonstrate steady growth in FY 2024. The retail leasing performed in line with management’s expectations, with both Cangjie Commercial Plaza in Suzhou and Yanlord Reverie Plaza in Shenzhen achieving significant improvements in occupancy rates and operational performance, driving
growth in the Group’s overall commercial rental income. The Group’s existing office portfolio remained stable, while the newly operational office towers at Yanlord Reverie Plaza in Shenzhen demonstrated strong leasing momentum.
In 2024, the PRC’s hospitality sector experienced a year-on-year revenue decline due to weaker domestic tourism demand. In response to these challenging market conditions, Yanlord’s hospitality segment not
only implemented effective cost management measures but also placed a greater emphasis on enhancing guest experiences and product differentiation to strengthen its competitive position. Additionally, the segment actively explored cross-sector partnerships to seek new growth opportunities.
The Group’s property management segment continues to expand, providing services for Yanlord’s newly completed developments across the PRC while actively securing third-party projects. As of December 31, 2024, the total managed area reached 27.7 million square metres, serving approximately 134,700 households. Property management revenue reached RMB1.433 billion in FY 2024, representing a 14.4% year-on-year increase. The Group anticipates further growth in this segment as Yanlord’s newly completed property developments across various cities are progressively handed over for management.
The Singapore market demonstrated steady growth, with occupancy rates across Yanlord’s office buildings, retail malls, serviced apartments and hotels in Singapore showing consistent improvements in FY 2024. The Group’s other non-property businesses also recorded stable performance throughout the year.
In summary, revenue from the Group’s operating properties (comprising office buildings, retail malls, serviced apartments and hotel operations) and property management segments reached RMB3.264 billion in FY 2024, representing a year-on-year increase of 8.8%. This recurring income stream provides the Group with sustainable cash flow. Yanlord remains committed to operational excellence, maintaining high service standards, and strengthening its brand presence among target customer segments.
The PRC’s real estate sector has transitioned from its nearly three-decade era of rapid growth, moving beyond the period characterised by high-leverage and high-turnover expansion strategies. The sector is now entering a new phase with a greater emphasis on asset quality. Residential developments will primarily serve upgrader demand, while the value of investment properties will increasingly depend on operational excellence and management capabilities. A business model that balances market risks through diversified property portfolios and drives sustainable growth through recurring income is gradually becoming the industry standard. Naturally, this transformation will take time and transitional challenges will persist. However, by these new industry standards, Yanlord is already well-positioned on this journey. At the same time, Yanlord will continue to closely monitor market signals across different cities and strategically increase its project pipeline when market sentiment improves.
In view of the reported loss for the year and in line with the Group’s prudent financial policies, the Board of Directors has decided not to declare a dividend for FY 2024, allowing the Group to navigate through market uncertainties more effectively while preserving resources to support future business development and operational needs.
In closing, management and I would like to express our sincere appreciation to our customers, business partners, employees and shareholders for their unwavering trust and continued support. We are also thankful to our directors for their steadfast guidance and contributions in steering the Group through another challenging year. Looking ahead, Yanlord remains committed to prudent management principles as it navigates a challenging business environment, seizes new investment opportunities, and works towards restoring shareholder value.
Yanlord Land Group Limited
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