Yanlord Land's gross profit jumps 157% to RMB896m in 3Q12

Revenues also surged 254%.

In a statement, SGX-listed Yanlord Land announced its financial results for the period of January to September 2012.

3Q 2012
Underscored by a significant increase in GFA delivered and higher average selling price (“ASP”) achieved owing to the change in product mix composition for the period, revenue of the Group in 3Q 2012 leapt 253.9% or RMB1.801 billion to RMB2.510 billion from RMB709.3 million in 3Q 2011.

Gross profit in 3Q 2012 similarly rose 156.9% to RMB895.9 million from RMB348.8 million in 3Q 2011. Driven by the increase in revenue for the quarter, net profit attributable to equity  holders in 3Q 2012 leapt 5,437.4% to RMB362.6 million from RMB6.5 million in 3Q 2011, while net attributable profit margin for 3Q 2012 rose to 14.4% from 0.9% in 3Q 2011.

While volatilities arising from austerity measures promulgated by the PRC central government continue to weigh on the PRC real estate sector, Yanlord’s high quality developments continue to be well received in the PRC. ASP for 3Q 2012 rose to RMB19,886 per sqm from RMB14,995 per sqm in 3Q 2011.

9M 2012
The Group’s quality developments continue to be well received by the home buyers in the PRC. Reflecting this continued positive demand, the Group’s pre-contracted sales as at 30 September 2012 rose 59.1% to RMB8.554 billion from RMB5.378 billion as at 31 December 2011.

The progressive recognition of these pre-contracted sales in the subsequent financial periods will provide greater assurance of the Group’s performance. As of 30 September 2012, the Group has received RMB5.888 billion as advances for pre-sold properties.

Underscored by a higher GFA delivered and ASP achieved for the period, revenue in 9M 2012 rose 32.6% or RMB1.402 billion to RMB5.709 billion over the corresponding period in 2011.

In line with the strong growth in revenue, net profit attributable to equity holders of the Company rose 291.4% to RMB1.234 billion in 9M 2012 from RMB315.2 million in 9M 2011.

Net attributable profit margin similarly rose 14.3 ppts to 21.6% in 9M 2012 while earnings per share on a fully diluted basis in 9M 2012 similarly rose 298.7% to RMB59.97 cents (based on2,061,640,000 shares) from RMB15.04 cents in 9M 2011 (based on 2,101,606,000 shares).

Attributable to the Group’s prudent financial policies, Yanlord remains in a strong financial position. Building on its strong performance for the period, the Group’s gearing or net debt to total equity ratio declined to 43.3% as at 30 September 2012 from 51.9% as at 31 December 2011.

Cash and bank balances as at 30 September 2012 was RMB3.377 billion and will serve to fuel the Group’s future developments.