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Yanlord Land Q2 net profit tumbles 41% to 865.3m yuan

CHINA-BASED property developer Yanlord Land on Tuesday said net profit narrowed another quarter, with second-quarter earnings of 865.3 million yuan (S$170 million), down 41 per cent from the same period a year ago. 

Revenue for the quarter ended June 30 fell 58 per cent to 4.1 billion yuan, due to the decrease in gross floor area delivered, in line with the group's delivery schedule for the second quarter. However, the decline was partly offset by a higher average selling price per square metre compared to last year that arose from a change in the "composition of product-mix".

These came as Yanlord delivered new projects and new batches of existing projects like Riverbay Gardens in Suzhou, Yanlord on the Park in Shanghai and Four Seasons Gardens in Nantong. 

Earnings per share were 44.80 yuan cents, down from 76.53 yuan cents in the same period a year earlier.

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Yanlord's net profit also slumped 48 per cent to 1.2 billion yuan for the first half of the year. Revenue likewise declined 54 per cent to 7.7 billion yuan due to the decrease in gross floor area delivered.

Earnings per share were 61.52 yuan cents, down from 117.80 yuan cents in the same period a year earlier.

Yanlord chairman and chief executive Zhong Sheng Jian said: "Consistent with our revenue recognition method and delivery schedule, profit for the year was impacted for 1H 2019 due to lower gross floor area 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."

Accumulated pre-sales pending recognition as at June 30 was 13.5 billion yuan, and will be progressively recognised as revenue in subsequent quarters. As at June 30, Yanlord has received 9.9 billion yuan in advances for pre-sale properties.