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Yanlord Land Q1 net profit falls 59% to 323m yuan

CHINA-BASED property developer Yanlord Land on Tuesday posted a net profit of 323 million yuan (S$64.3 million) in the first quarter, down 59 per cent from the same period a year earlier.

Revenue in the three months ended March 31 fell 50 per cent to 3.6 billion yuan, due to the decrease in gross floor area delivered, in line with the group's delivery schedule for the first quarter.

The average selling price per square metre was also lower than in the first quarter last year, as a larger portion of higher-priced projects, namely Yanlord on the Park and Yanlord Western Gardens in Shanghai, were delivered in the first quarter last year. 

Yanlord said it continues to witness healthy buyer interest for its high-quality developments.

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Accumulated pre-sales pending recognition as at March 31 was 11.8 billion yuan, and will be progressively recognised as revenue in subsequent financial periods. As at March 31, Yanlord has received 9.1 billion yuan in advances for pre-sale properties. 

Yanlord chairman and chief executive Zhong Sheng Jian said: "While near-term volatilities may arise due to the introduction of austerity measures on the PRC real estate sector, we remain confident about the long-term development of the sector.

"To better manage changes and uncertainties arising from austerity measures introduced, we strategically managed our launch schedules and inventory levels to better capture market opportunities to enhance returns. Capitalising on our track record and comparative advantages in the development of quality projects, sizeable landbank in prime locations within high-growth cities of the PRC coupled with our healthy financial position, we are well poised to tap the long-term growth prospects of the PRC real estate sector." 

Earnings per share was 16.73 yuan cents, down from 41.27 yuan cents in the same period a year earlier.

Net asset value per share was 13.24 yuan as at March 31, up from 12.96 yuan as at Dec 31 last year.

The counter rose three Singapore cents or 2.13 per cent to close at S$1.44 on Tuesday before the results were released.