Yanlord Land profit up 1,702.7% to RMB735.6M

Tremendous growth attributed to vast unit deliveries, and revaluation and disposal gains.

The property group said that its high-quality developments helped it overcome the market cooling measures initiated by Chinese government.

"Despite uncertainty arising from austerity measures introduced by the PRC central government to cool the property sector, demand for Yanlord’s quality products continues to be resilient. Pre-contracted sales rose to RMB7.718 billion as at 30 June 2012 from RMB5.378 billion as at 31 December 2011," Yanlord Land reported in a business review accompanying its 2Q12 profit results.

"Driven by strong project delivery in 2Q 2012, revenue for the quarter rose 311.2% to RMB2.732 billion from RMB664.4 million in 2Q 2011. In line with the revenue growth, 2Q 2012 gross profit rose 130.1% to RMB952.7 million," it said.

"Net profit attributable to equity holders of the company for 2Q 2012 rose 1,702.7% to RMB735.6 million from RMB40.8 millon largely due to the greater delivery of units for the quarter, revaluation gains of Yanlord Riverside Plaza and net gain on disposal of available-for-sale investment," it added.

Adding these 2Q12 results with the previous quarter, Yanlord Land saw revenue and gross profit in 1H 2012 decline 11.1% and 17.3% to RMB3.198 billion and RMB1.123 billion respectively from 1H 2011.

"Despite the lower revenue recognised for the period, 1H 2012 net profit attributable to equity holders of the Company rose 182.2% to RMB871.2 million while net attributable margin similarly grew to 27.2% from 8.6% in 1H 2011," the property group said.

"GFA delivered in 1H 2012 was 144,649 sqm while ASP recognized in 1H 2012 grew 31.2% to RMB20,988 per sqm from RMB15,993 per sqm in 1H 2011. Maintains a robust financial position; net debt to equity ratio declined to 45.7% as at 30 June 2012 from 51.9% as at 31 December 2012 while cash and cash equivalents posted
a 14.7% increase to RMB4.902 billion as at 30 June 2012 from 31 December 2011," it added.

"Yanlord remains confident about its performance for FY 2012, driven by continued sales of its developments and larger proportion of pre-contracted sales recognition in subsequent periods," it said further.