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YANLORD 9M 2017 NET PROFIT ATTRIBUTABLE TO OWNERS OF THE COMPANY SURGED 76.3% TO RMB2.024 BILLION
2017/11/17 13:25:19

Singapore/Hong Kong – 13 November 2017 – Yanlord Land Group Limited announced its results for the period of January to September 2017 (“9M 2017”).

 

3Q 2017

In-line with the Group’s delivery schedule whereby a lower GFA was delivered in 3Q 2017, revenue for the period declined to RMB3.764 billion in 3Q 2017 from RMB5.505 billion in 3Q 2016. Despite the lower revenue of the Group, the delivery of higher margin residential units and car parks helped propel gross profit margin to 41.8% in 3Q 2017 from 27.2% in 3Q 2016. Consequently, gross profit rose 4.9% to RMB1.572 billion in 3Q 2017 as compared to RMB1.499 billion in 3Q 2016.

In-line with the greater gross profit in 3Q 2017, net profit attributable to owners of the Company rose approximately 11.2% to RMB627.5 million from RMB564.2 million in 3Q 2016.

9M 2017

The Group continued to record a steady increase in average selling price (“ASP”) of its developments. Underscored by the delivery of higher-priced projects such as Yanlord Western Gardens (仁恒西郊雅苑) in Shanghai, Yanlord Yangtze Riverbay Town (Phase 4) (仁恒江湾城四期) and Yanlord Marina Centre-Section B(仁恒滨海中心-B标段) in Zhuhai, which collectively accounted for 51.3% of the Group’s gross revenue from the sales of properties in 9M 2017, ASP in 9M 2017 rose 22.1% to RMB33,618 per sqm.
Supported by the healthy increase in ASP, gross profit and gross profit margin in 9M 2017 rose 70.8% and 21.2 percentage points to RMB6.515 billion and 45.4% respectively; despite the 8.9% decline in revenue to RMB14.362 billion in 9M 2017 which was due to the scheduled delivery of lower GFA during the period. 
Rising in tandem with the 9M 2017 gross profit, net profit attributable to owners of the Company similarly rose 76.3% to RMB2.024 billion in 9M 2017, while earnings per share on a fully diluted basis rose 77.2% to 104.46 Renminbi cents in 9M 2017 as compared to 58.94 Renminbi cents in 9M 2016.
Attributable to the Group’s prudent financial policies, Yanlord remains in a healthy financial position with cash and cash equivalents of RMB16.417 billion as at 30 September 2017. Underscored by the Group’s land acquisition strategy in 9M 2017, net debt to total equity gearing ratio stood at 70.1% as at 30 September 2017. Moving forward, the Group will continue to launch a new project and new batches of its existing projects in 4Q 2017 namely, Oasis New Island Gardens (Phase 3) (绿洲新岛花园三期) in Nanjing, Yanlord on the Park (仁恒世纪公寓) in Shanghai and Riverbay Gardens (江湾雅园) in Suzhou.
Total investment in the PRC real estate sector rose 8.1% for the first nine months of 2017 to RMB8.064 trillion[1]underlined by positive market sentiments in the PRC property sector. Supported by healthy demand, the Group’s accumulated pre-sales pending recognition as at 30 September 2017 was RMB27.840 billion and is expected to be progressively recognised as revenue in subsequent financial periods and also providing greater clarity on the Group’s future performance.
Subsequent to the end of the period, the Group announced on 9 November 2017 its acquisition of an 80% majority stake in a prime mixed development site with 106,044 sqm GFA within Chengdu’s iconic tourism district. Ideally situated for a low density high-end development, future residents will live amongst lush natural surroundings while similarly enjoying a comprehensive suite of lifestyle amenities including prime retail and golf courses.
Commenting on the Group’s financial performance, Mr. Zhong Sheng Jian, Yanlord’s Chairman and Chief Executive Officer, said, “Demand for prime residential developments in the PRC continues to be healthy driven by continued upgrader demand and population inflow into first and core second tier cities. While near term volatilities may arise due to the introduction of austerity measures, our quality developments which were built with the commitment to meet and hopefully exceed buyer expectations nonetheless continues to attract the attention of discerning home buyers and will help to drive the sustainable development of our core business segments. Capitalising on the momentum achieved in 9M 2017 coupled with the progressive recognition of RMB27.840 billion of unrecognized pre-sales as at 30 September 2017, we remain confident about the continued performance of the Group as well as the long-term potential of the PRC real estate sector.”

The following table is a summary of the key facts in the latest announcement.

 

9M 2017

9M 2016

Change (%)

ASP (RMB / sqm)

33,618

27,531

22.1

GFA Delivered (sqm)

391,321

565,535

(30.8)

Revenue (RMB mil)

14,362.4

15,762.5

(8.9)

Gross Profit (RMB mil)

6,515.0

3,813.8

70.8

Gross Profit Margin (%)

45.4

24.2

21.2 ppt

Profit for the period (RMB mil)

2,874.6

1,593.6

80.4

Profit Attributable to Owners of the Company (RMB mil)

2,024.1

1,148.3

76.3

Net Attributable Profit Margin (%)

14.1

7.3

6.8 ppt

Earnings per share (RMB cents)1

104.46

58.94

77.2