Yanlord Land Group's profits plummeted 78% to $240m in Q4

Declines in GFA and ASPs as a result of its product shake up were to blame.

Yanlord Land Group’s Q4 profits plunged 78% YoY from $240m (RMB1.19b) to $51.86m (RMB256.90m), whilst revenue plummeted 79% YoY from $2.28b (RMB11.28b) in 2017 to $470m (RMB2.33b, an announcement revealed.

Its FY2018 profits jumped 10% YoY from $650m (RMB3.22b) to $720m (RMB3.54b). However, revenue slipped 3% YoY to $5.02b (RMB24.89b) from $5.18b (RMB25.64b) in 2017, its financial statement added.

It blamed its dismal Q4 performance to the decrease in gross floor area (GFA) that was delivered in-line with the Group's delivery schedule for Q4, which was also partly attributable to the lower average selling price (ASP) psm achieved in Q4 2018 compared to Q4 2017 as a result of the change in composition of product-mix, Yanlord explained.

Also read: Yanlord Land Group profits skyrocketed 61% to $201.1m in Q3

On the other hand, the firm highlighted that revenue generated from existing projects was mainly contributed by Yanlord Eastern Gardens in Shanghai, Sanya Hai Tang Bay - Land Parcel 9, Tang Yue Bay Gardens in Suzhou, and Yanlord Marina Peninsula Gardens (Phase 2) in Zhuhai which represented 29.0%, 22.9%, 16.2% and 15.9% respectively of the Group's gross revenue from sales of properties in Q4 2018.

In Singapore, the Group announced on April 2018 its joint-tender for the freehold en-bloc site, Tulip Garden in District 10 for $906.9m, which hopes to launch within 2019.