Yanlord Land Group has reported higher revenue, as well as operating income from development and operations for FY2023 over the preceding year.
However, with more than RMB1.5 billion in fair value losses recognised for investment properties and completed projects which the management "deeply regrets", Yanlord has reported a loss of RMB934 million for the year ended Dec 2023, versus earnings of RMB1.5 billion reported for FY2022.
In FY2023, revenue increased by 51.1% y-o-y to RMB43.4 billion, led by higher average selling prices for its property development segment.
As at Dec 31, total debt decreased by 26.4% y-o-y to RMB33.4 billion. Cash and equivalents as of the same date was RMB13 billion.
Net gearing ratio as at Dec 31 2023 decreased by 7.8 percentage points to 46.7%, compared to 54.5% as at Dec 2022.
Yanlord's chairman and CEO Zhong Sheng Jian calls 2023 "an exceptionally unusual year."
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"Despite the three-year epidemic coming to an end, economic recovery remains a prolonged and challenging journey."
Zhong notes that the real estate-related credit crisis, which began in the third quarter of 2021, persisted throughout 2023 and eventually led to a sector-wide
"predicament".
National primary property sales have declined for two consecutive years, falling by more than one-third compared to their peak in 2021.
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As such, Yanlord’s FY2023 performance has similarly been affected by the market downturn.
The company warns that uncertainty continues in China's real estate sector.
Yanlord's business in Singapore, in contrast, is a bright spot.
In FY2023, with the continued influx of tourists and increased business activities, the occupancy rates and rental income of the Yanlord's investment properties, hotels and serviced apartments in Singapore continued to experience sustained growth in rental income and occupancy rate.
As at Dec 31, 2023, Yanlord and related entities had total contracted pre-sales of RMB68.212 billion, pending recognition in 1HFY2024 ending June.
Yanlord, "together with its joint ventures and associates will continue to launch new projects for pre-sales in accordance with their development schedule."
In addition, to "better mitigate potential volatilities", Yanlord will "maintain its healthy cash position with prudent financial policies to support its sustainable growth and development."
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As such, for the second year, Yanlord has chosen to be prudent with its cash resources and will not pay dividends.
Yanlord shares closed at 50 cents on Feb 27, down 1%, and down 54.59% over the preceding 12 months.
The company's NAV as at Dec 31 has dropped to RMB17.77 ($2.80) per share, versus RMB18.1 as at Dec 2022.
