Yanlord Land’s revenue up 21.7% in FY2011

The company’s revenue surged by almost 400% in 4Q11 alone.

According to a release, 4Q 2011 recognised revenue surged 389.3% or RMB3.724 billion to RMB4.681 billion in 4Q 2011 as compared to 4Q 2010 mainly attributable to the considerable increase in GFA delivered as well as the higher average selling price (“ASP”) per sqm of RMB33,583 achieved in 4Q 2011 as a result of the inaugural deliveries of Yanlord Townhouse in Shanghai and Yanlord G53 Apartments in Nanjing.

Led by the significant increase in 4Q 2011 revenue, recognised revenue in FY 2011 rose 21.7% to RMB8.987 billion. In accordance with the Group’s project delivery schedule, GFA delivered in FY 2011 rose 21.3% to 394,722 sqm as compared to 325,509 sqm in FY 2010. ASP for units delivered in FY 2011 was RMB22,293 per sqm.

In FY 2011, Yanlord’s project delivery was concentrated in the delivery of higher average cost of sales per sqm developments such as Yanlord Townhouse in Shanghai and Yanlord G53 apartments in Nanjing. In line with the changes in the delivered product mix, gross profit margin of the Group declined from 54.6% in FY 2010 to 33.6% in FY 2011 which translated to a lower net profit attributable to shareholders in FY 2011 of RMB1.482 billion.

As at 31 December 2011, the Group had total pre-contracted sales amounting to RMB5.378 billion and had received advances for pre-sold properties amounting to RMB3.173 billion. The progressive recognition of these pre-contracted sales in subsequent financial periods will provide greater transparency and confidence of Group performance in FY 2012.

Attributable to the Group’s prudent financial policies, Yanlord remains in a strong financial position with cash and bank balances of approximately RMB4.274 billion as at 31 December 2011. Fully diluted earnings per share in FY 2011 was 70.57 RMB cents (based on 2,102,234,000 shares).