Yanlord Land first-quarter profit soars to RMB225 million

RMB221 million jump year-on-year.

In its unaudited first quarter statement, Yanlord Land reported that profit for the period and the margin (after excluding net foreign exchange effect) increased by RMB221 million and 12.5 percentage points respectively to RMB225 million and 13.4% in 1Q 2013 respectively from RMB4 million and 0.9% in 1Q 2012 respectively.

Excluding net foreign exchange loss of RMB59 million in 1Q 2013 and gain of RMB132 million in 1Q 2012, profit before income tax recorded a significant growth of RMB404 million to RMB457 million in 1Q 2013 over the corresponding period in 2012, in line with the increase in gross profit. Profit before income tax margin (after excluding net foreign exchange effect) also grew considerably by 16.0 percentage points to 27.2% in 1Q 2013 from 11.2% in 1Q 2012.

In tandem with the significant increase in GFA delivered to customers, the Group achieved 260.3% or RMB1.213 billion growth in revenue to RMB1.679 billion in 1Q 2013 as compared to RMB466 million in 1Q 2012. Revenue in 1Q 2013 was mainly derived from the delivery of existing projects, namely Yanlord Yangtze Riverbay Town (Phase 2) in Nanjing, Yanlord Sunland Gardens (Phase 1) in Shanghai, Yanlord Riverside Gardens (Phase 1) in Tianjin and Yanlord New City Gardens (Phase 2 – Section 2) in Zhuhai, which represented 32.0%, 12.4%, 12.3% and 10.3% respectively of the Group’s gross revenue from the sales of properties in 1Q 2013.

The inaugural delivery of Yanlord Lakeview Bay – Land Parcel A6 in Suzhou also contributed 18.1% to the Group's gross revenue from the sales of properties in 1Q 2013.

In line with the increase in revenue, gross profit grew considerably by 287.8% or RMB490 million to RMB661 million in 1Q 2013 as compared to RMB170 million in 1Q 2012. Gross profit margin increased by 2.8 percentage points to 39.4% in 1Q 2013 from 36.6% in 1Q 2012.