Skyscraper high: Yanlord’s profits up by 280.8% in 1H14

Buoyed by contributions from a Sino-Singapore joint venture.

Despite weaker sentiments in the PRC real estate sector, Yanlord continues to see steady demand for its high quality residential developments.

In a media release, Yanlord reports that revenue in 1H 2014 rose steadily by 6.9% to RMB3.272 billion on higher average selling price achieved and greater gross floor area delivered in the period. Total pre-sales rose to RMB10.814 billion as at 30 June 2014 from RMB9.812 billion as at 31 December 2013.

Net profit attributable to equity holders of the Company jumped 280.8% to RMB280.8 million in 1H 2014 as compared to RMB73.7 million in 1H 2013. Buoyed by stronger contributions from the Group’s Sino-Singapore Nanjing Eco Hi-Tech Island joint venture and a net foreign exchange gain.

The Group continues to maintain a healthy financial position. Cash and cash equivalents of RMB5.333 billion as at 30 June 2014 will provide the necessary impetus to fuel the Group’s future development.

Here’s more from Yanlord:

Underscored by sustained market demand for the Group’s quality developments in the PRC, recognised revenue of the Group rose 6.9% in 1H 2014 to RMB3.272 billion compared to RMB3.062 billion in 1H 2013. The growth in recognised revenue was driven by a higher achieved ASP of RMB23,226 per square metre (“sqm”) in 1H 2014 compared to RMB21,382 per sqm in 1H 2013 as well as a 3.3% increase to 126,712 sqm in total GFA delivered during the period. In-line with the Group’s marketing strategy whereby units in first phase developments tend to be of lower gross margin when compared to subsequent phases, gross profit in 1H 2014 declined to RMB1.018 billion from RMB1.097 billion in 1H 2013.

Contributions from the Group’s Sino-Singapore Nanjing Eco Hi-Tech Island joint venture continued to gain traction in 1H 2014 as share of profit of jointly controlled entities rose significantly to RMB97.7 million, reversing a RMB3.9 million share of loss in 1H 2013. Buoyed by stronger contributions from the Group’s Sino-Singapore Nanjing Eco Hi-Tech Island joint venture and a net foreign exchange gain, net profit attributable to equity holders of the Company jumped 280.8% to RMB280.8 million in 1H 2014 as compared to RMB73.7 million in 1H 2013. Earnings per share on a fully diluted basis similarly rose 280.4% to RMB14.38 cents in 1H 2014 as compared to RMB3.78 cents in 1H 2013.