YANLORD POSTS 1H 2019 REVENUE OF RMB7.712 BILLION; STRONG TAKE UP OF RECENT LAUNCHES DRIVES PRE-SALE ACCUMULATION
Singapore/Hong Kong – 13 August 2019 –Yanlord Land Group announced its results for 1H 2019.
The Group continued to receive strong market support for its high-quality developments in the PRC. Testament to the strong buyer support, the accumulated contracted pre-sales and subscription sales by the Group including its joint ventures and associates from the sale of properties for 1H 2019 rose 77.9% to approximately RMB20.735 billion from RMB11.656 billion compared to 1H 2018.
In-line with the Group’s delivery schedule whereby a larger portion of the Group’s pre-sales is expected to be recognised in 2H 2019, the Group delivered a lower gross floor area (“GFA”) of 193,506 square metre (“sqm”) of residential units to customers in 1H 2019 compared to 447,438 sqm in 1H 2018. Reflecting the lower GFA delivered, revenue in second quarter of 2019 (“2Q 2019”) and 1H 2019 declined to RMB4.089 billion and RMB7.712 billion from RMB9.663 billion and RMB16.851 billion in second quarter of 2018 (“2Q 2018”) and 1H 2018 respectively. Despite the lower revenue of the Group achieved in 2Q 2019 and 1H 2019, gross profit margin increased to 49.9% and remained stable at 46.5% in 2Q 2019 and 1H 2019 respectively compared to the corresponding periods in 2018. Profit attributable to owners of the Company was RMB865 million and RMB1.188 billion in 2Q2019 and 1H 2019 compared to RMB1.478 billion and RMB2.275 billion in 2Q 2018 and 1H 2018 respectively.
Attributable to the Group’s strong pre-sales performance and healthy cash collection in 1H 2019, net debt to total equity gearing ratio of the Group declined from 96.8% as at 31 December 2018 to 65.2% as at 30 June 2019. Cash and cash equivalents as at 30 June 2019 rose to RMB16.940 billion from RMB10.317 billion as at 31 December 2018.
Commenting on the Group’s financial performance, Mr. Zhong Sheng Jian, Yanlord’s Chairman and Chief Executive Officer, said, “Consistent with our revenue recognition method and delivery schedule, profit for the year was impacted for 1H 2019 due to lower GFA delivered in the period. However, we are confident that progressive recognition of our pre-sold units in the subsequent quarters will serve to enhance our recognised revenue for financial year 2019. While the weaker global economy coupled with austerity measures introduced by the PRC central government will continue to present near term challenges for the PRC real estate sector, we nonetheless remain confident about the long-term development of the sector which is underpinned by strong demand arising from rapid urbanisation. Capitalising on our track record and comparative advantages in the development of quality projects, sizable landbank in prime locations within high-growth cities of the PRC coupled with our healthy financial position, we are well poised to tap on the long-term growth prospects of the PRC real estate sector.”
Subsequent to the end of the periods under review, the Group announced its latest batch launch of apartment units at New Tang’s Mansion (淺棠平江) and the inaugural launch of apartments units at Four Seasons Heming Gardens (四季和鳴雅園) in Suzhou. Buoyed by the healthy market response, the Group sold a total of 483 apartment units over the respective launches on 30 July 2019 and 31 July 2019, garnering a total pre-sales of over RMB1.887 billion.
Moving forward, the Group will continue to launch new projects and new batches of its existing projects in 3Q 2019 namely, Stream In Cloud (溪雲居) in Chengdu; Yanlord Riverside Gardens (仁濱公寓) and Hangzhou Bayfront Isle (Phase 2) (前灣二期) in Hangzhou; Yanlord Century Gardens (仁恒世紀花園) in Jinan; Yanlord Phoenix Hill (Phase 1) (鳳凰山居一期), Nanjing No. 2018G26 Land (南京 No. 2018G26 地塊) in Nanjing; Yanlord Reverie Apartments (仁恒夢公寓) in Shenzhen; Four Seasons Heming Gardens (四季和鳴雅園), Smriti Curtilage (耦前別墅), New Tang's Mansion (淺棠平江) in Suzhou; Tangshan Nanhu Eco-City - Land Parcel A8 (唐山南湖生態城，A8 地塊) in Tangshan; The Mansion In Park (Phase 1) (仁恒公園世紀一期), Yilu Gardens (依潞花園), Yiwan Gardens (依灣花園) in Tianjin and Yanlord on the Park (仁恒‧公園世紀) in Wuhan.
“To better mitigate against uncertainty posed by the macro environment, the Group will continue to maintain its healthy cash position and prudent financial policies. Led by an experienced and dedicated management team with extensive industry knowledge of the PRC real-estate sector, we will continue to focus on our business strategies and comparative advantages in the development of quality residential apartments in prime locations within high-growth cities in the PRC. This will best allow for the sustainable growth of our core business segments and capitalise on the long-term growth prospects of the PRC real estate sector,” added Mr Zhong.