No dividend has been declared for the period as the group has decided to retain its earnings for the year.

 

Yanlord Land Group Z25 0.92%   has reported earnings of RMB155.6 million ($30.2 million) for the 2HFY2022 ended Dec 31, 2022, 92% lower than earnings of RMB1.83 billion in the 2HFY2021.

 

FY2022 earnings stood 42% lower y-o-y at RMB1.53 billion.

 

The lower earnings were attributable to the lower revenue and fair value loss on investment properties compared to the previous year&rsquo s fair value gain.

 

2HFY2022 revenue fell by 20% y-o-y to RMB17.37 billion while FY2022 revenue fell by 18% y-o-y to RMB28.71 billion. This was mainly due to the lower gross floor area (GFA) delivered to customers and partly offset by the higher average selling price (ASP) per sqm. Revenue during the year was mainly generated from Riverbay Century Gardens in Nanjing, The Corals in Hangzhou and Yanlord Four Seasons New Gardens in Shenzhen.

 

Gross profit for the 2HFY2022 and FY2022 fell by 31% and 13% y-o-y to RMB3.72 billion and RMB7.75 billion respectively. Gross profit margin (GPM) for the 2HFY2022 fell by 3.6 percentage points to 21.4% while GPM for the FY2022 increased by 1.4 percentage points to 27.0% due to the change in the composition of product-mix delivered in the current reporting periods.

 

Other operating income for the 2HFY2022 and FY2022 increased by 187% and 63% y-o-y to RMB840.1 million and RMB1.14 billion respectively. This was mainly due to the gain on disposal of UE BizHub Central, gain on repurchase of senior notes, increase in interest income from associates and gain on remeasurement of retained interests in joint ventures and partly offset by the absence of gain on disposal of subsidiaries.

 

During the 2HFY2022 and FY2022, the group reported a fair value loss of RMB171.0 million compared to the gain of RMB133.4 million in the year before. This is mainly due to the decrease in fair value of Yanlord Landmark, Yanlord Riverside Plaza and Yanlord Marina Centre &ndash Section A and offset by the increase in fair value of UE Bizhub City in Singapore.

 

Earnings per share (EPS) for the 2HFY2022 and FY2022 stood at 8.05 RMB cents and 79.34 RMB cents respectively.

 

As at Dec 31, 2022, cash and cash equivalents stood at RMB20.7 billion.

 

No dividend has been declared for the period as the group has decided to retain its earnings for the year on the back of the uncertainties in China&rsquo s real estate sector.

 

For the FY2022, the group saw a 14.3% y-o-y growth in total property contracted pre-sales of RMB68.09 billion over a 23.3% y-o-y decline in contracted GFA of 1,433,550 sqm.

 

&ldquo 2022 was a tumultuous year defined by challenges and disruptions brought about by the lingering Covid-19 epidemic, the interest rate hike and the unstable geo-political environment. On the policy front in China, the continued focus on deleveraging of property developers have resulted in property development sector experiencing its first recession since the market reform of China&rsquo s real estate industry,&rdquo says Zhong Sheng Jian, chairman and CEO of Yanlord.

 

&ldquo Key indicators such as government land sales, property transaction volumes, new start of projects constructions and completions have all reported substantial decline. It was only towards the end of FY2022 before the Chinese government once again re-affirmed the importance of the real estate industry, putting in place a series of incentive policies to encourage real estate investment and spur domestic consumption. Notwithstanding the challenging environment, Yanlord achieved contracted pre-sales growth in FY2022, which illustrates the success of Yanlord&rsquo s market strategy and superior product positioning, demonstrating the strong execution capabilities of its experienced management in the difficult market,&rdquo he adds.

 

On the outlook of the Chinese real estate market in 2023, Zhong says the Chinese economy, being the second largest in the world, &ldquo contains huge market demand and development momentum. Its urbanisation is still in progress&rdquo .

 

&ldquo I believe that good enterprises can gradually complete their self-correction along the latest stimulus and credit easing policies, and the real estate market will rejuvenate and be restored. Yanlord is a long-term player, its competitive advantage will continue to shine,&rdquo he says.

 

In Singapore, he notes that &ldquo the steady development of Singapore in 2022 reaffirmed the group&rsquo s investment foresight.&rdquo

 

&ldquo Yanlord&rsquo s multiregional investment and development portfolio make its business resilient and bring stable returns,&rdquo he adds.

20 Feb 2023 14:29

Yanlord Land Group announced that it has achieved a 14.3% y-o-y growth in contracted pre-sales for its FY2022 ended December 2022 period to RMB68.1 billion ($13.4 billion).

 

However, total contracted gross floor area (GFA) for FY2022 was 23.3% lower y-o-y at about 1.4 million sqm.

 

For the month of December 2022, the group together with its joint ventures and associates&rsquo total contracted pre-sales from residential and commercial units, and car parks amounted to approximately RMB6.124 billion on contracted GFA of 191,442 sqm, a decrease of 33.6% and 40.7% respectively compared to the corresponding period of 2021.

 

In addition, a total of approximately RMB2.691 billion of subscription sales of the group together with its joint ventures and associates was recorded as at end December 2022 and is expected to be subsequently turned into property contracted pre-sales in the following months.

 

In December 2022, the total contracted pre-sales of other property development projects under the group&rsquo s project management business bearing the &ldquo Yanlord&rdquo brand name was approximately RMB170 million on contracted GFA of 10,368 sqm. For FY2022, the total contracted pre-sales of other property development projects under the group&rsquo s project management business bearing the &ldquo Yanlord&rdquo brand name was approximately RMB9.600 billion on contracted GFA of 180,696 sqm.