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YANLORD Announced its 1H 2017 Results
2017/8/17 10:28:59

Singapore/Hong Kong ––Yanlord Land Group announced its results for the period of January to June 2017 (“1H 2017”).

Positive market sentiments in the PRC property sector coupled propelled total investment in real estate up 8.5% for the first half of 2017 to RMB5.061 trillion based on data released by the PRC National Bureau of Statistics (“NBS”) on 17 July 2017. Supported by healthy demand, Yanlord made significant strides in pre-sale accumulation in 1H 2017 with accumulated pre-sale pending recognition rising to RMB27.849 billion as at 30 June 2017 from RMB26.488 billion as at 31 December 2016.

2Q 2017

In-line with the Group’s delivery schedule whereby a lower GFA was delivered in 2Q 2017, revenue for the period declined to RMB4.277 billion in 2Q 2017 from RMB7.404 billion in 2Q 2016. Despite the lower revenue of the Group, gross profit rose 21.3% or RMB319 million to RMB1.817 billion in 2Q 2017 as compared to RMB1.498 billion in 2Q 2016. The improved gross profit was mainly due to the change in product mix composition to include a large percentage of higher-profit-margin projects as well as the increase in delivery of car parks in current reporting period over the same period last year. Gross profit margin in 2Q 2017 grew to 42.5% accordingly.

In-line with the greater gross profit in 2Q 2017, net profit attributable to owners of the Company rose approximately 42.8% to RMB462.5 million from RMB323.9 million in 2Q 2016.

1H 2017

Recognised revenue in 1H 2017 rose 3.3% to RMB10.598 billion. The increase in revenue was attributable to higher ASP achieved and increased revenue from sales of car parks in 1H 2017 over the same period in 2016. Led by the delivery of higher-priced projects namely, Yanlord Yangtze Riverbay Town (Phase 4) (仁恒江湾城四期) in Nanjing, Yanlord Western Gardens (仁恒西郊雅苑) in Shanghai as well as Yanlord Marina Centre – Section B (仁恒滨海中心 – B标段) in Zhuhai which accounted for 27.9%, 19.9% and 9.8% of the Group's gross revenue on sales of properties in 1H 2017 respectively, gross profit in 1H 2017 rose 113.6% to RMB4.943 billion despite a lower GFA of 286,329 sqm delivered in the period.

Reflecting the increase in 1H 2017 revenue, net profit attributable to owners of the Company similarly rose 139.1% to RMB1.397 billion in 1H 2017, while earnings per share on a fully diluted basis rose 140.4% to 72.05 Renminbi cents in 1H 2017 as compared to 29.97 Renminbi cents in 1H 2016.

Attributable to the Group’s prudent financial policies, Yanlord remains in a healthy financial position with cash and cash equivalents of RMB16.090 billion as at 30 June 2017. Underscored by the Group’s land acquisition strategy in 1H 2017, net debt to total equity gearing ratio stood at 64.2% as at 30 June 2017. Moving forward, the Group will continue to launch a new project and new batch of its existing project in 3Q 2017 namely, Oasis New Island Gardens (Phase 3) (绿洲新岛花园三期) in Nanjing and Yanlord on the Park (仁恒世纪公寓) in Shanghai.

The Group continues to actively pursue opportunities to expand its prime landbank holdings. Subsequent to the end of the period, the Group announced that it has acquired a strategic 50% stake in a prime 84,456 sqm GFA site in YanZiJi, Xixia District, Nanjing. Ideally situated for the development of a prime residential development, the site overlooks the Yangtze River and features a comprehensive suite of lifestyle amenities including shopping malls, hospitals and schools. Well connected via key thoroughfares, the site is a short 150 metre walk to the adjacent No.1 metro line (笆斗山站) and will cater to the everyday needs of its residents.

Commenting on the Group’s financial performance, Mr. Zhong Sheng Jian, Yanlord’s Chairman and Chief Executive Officer, said, “The healthy growth in net profit for the Group in 1H 2017 was underlined by sustained homeowner interest for our high-quality developments in the PRC. With prices for primary commodity housing within the top 70 cities rising approximately 9.4% year on year in 1H 2017, we remain confident about prospects of the PRC real estate sector in particular in the key first and second tier cities which continue to see a net population inflow owing to rapid urbanisation. Leveraging on this momentum, we have slated a pipeline of project launches in prime locations within the 1st and 2nd tier cities of the PRC which we believe will serve to further enhance our future pre-sales accumulation efforts. In addition, building on our business strategies and comparative advantages in the development of quality residential apartments in prime locations, we actively sought out opportunities to augment our prime landbank holdings. Ideally situated in cities such as Shanghai, Shenzhen and Nanjing, these projects will provide the necessary catalyst to drive the sustainable growth of our core business segments.”

 

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1H 2017

1H 2016

Change (%)

ASP (RMB / sqm)

33,940

29,741

14.1

GFA Delivered (sqm)

286,329

340,550

(15.9)

Revenue (RMB mil)

10,598.4

10,257.0

3.3

Gross Profit (RMB mil)

4,943.1

2,314.7

113.6

Gross Profit Margin (%)

46.6

22.6

24.0 ppt

Profit for the period (RMB mil)

2,115.5

900.3

135.0

Profit Attributable to Owners of the Company (RMB mil)

1,396.6

584.1

139.1

Net Attributable Profit Margin (%)

13.2

5.7

7.5 ppt

Earnings per share (RMB cents)1

72.05

29.97

140.4

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 Based on a fully diluted basis of 1,938,392,937 and 1,948,736,476 shares respectively