Yanlord Land Group recorded lower revenue of RMB11.34 billion, down 14% y-o-y. However, as the company sold higher-priced projects that fetched better margins, it was able to report higher earnings instead.
For 1HFY2022 ended June, earnings increased by 67.2% to RMB1.38 billion.
Key projects that contributed to the earnings include Yanlord Four Seasons New Gardens in Shenzhen; Riverbay Century Gardens (Phase 1) in Nanjing and Smriti Curtilage in Suzhou.
These three projects accounted for 43.1%, 15.5% and 13.2% respectively of Yanlord’s gross revenue from sales of properties in 1H 2022.
Zhong Sheng Jian, Yanlord’s chairman and CEO describes 1HFY2022 as a “very challenging” period for the Chinese economy, as the government sought to contain the pandemic. There were also more China developers defaulting on their debt.
According to the published statistics, 1H 2022 saw a slowdown in the PRC real estate sector with a total investment in residential development was down by 4.5% to RMB5.18 trillion.
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Primary residential property sales and GFA sold decreased by 31.8% and 26.6% in 1H 2022 over the year-earlier period.
Nevertheless, Yanlord says its property contracted pre-sales performance has been “resilient”, with a total of RMB31.4 billion chalked up for 1HFY2022, bringing its total pre-sales to RMB108.8 billion.
The company added some 736,000 sqm of gross floor area to its landbank, bringing to total to 3 million sqm.
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For its Singapore property development business, the company generated presales of some $413 million.
Yanlord says the occupancy rates of its investment portfolio held up well. They include UE BizHub CITY, UE BizHub TOWER and UE BizHub WEST.
As at June 30, its net asset value per share was RMB17.82 ($3.62).
Yanlord shares ended Aug 11 at $1.04.
