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Yanlord Land's Q2 net profit leaps 89%
YANLORD Land Group reported a 89.4 per cent jump in net profit for the second quarter ended June 30 to 323.95 million yuan (S$65.57 million), on the back of a surge in revenue.
Group revenue trebled to 7.4 billion yuan from 2.34 billion yuan, thanks to a significant increase in handover of homes in gross floor area (GFA) terms and higher average selling prices.
"The continued encouragement for home ownership by the PRC Central government is a key catalyst for sustainable development of the PRC real estate sector," said group chairman and CEO Zhong Sheng Jian.
"Capitalising on this favourable market environment, we continue to make significant strides in pre-sales accumulation in the first half," he added.
Led by the positive market sentiments particularly in the first and second tier cities, the group's pre-sale of properties and car parks in the first half rose 55.3 per cent from a year ago to 17.1 billion yuan.
Accumulated pre-sales pending recognition as of June 30 was 28.9 billion yuan and this is expected to be progressively recognised as revenue in subsequent financial periods. Yanlord has already received 24.4 billion in advances for pre-sales as of June 30.
The group will continue to launch new projects and new batches of its existing projects in the third quarter in Chengdu, Nantong, Shanghai, Suzhou, Tianjin and Zhuhai.
To augment its future growth, Yanlord has also been accumulating its landbank.
Since the beginning of this year, it has announced the acquisition of stakes in seven land parcels across first and second tier cities of China with total GFA of about 1.78 million sq m. These land parcels are spread across key cities such as Shenzhen, Nanjing, Tianjin and Suzhou.
Shares of Yanlord closed 0.4 per cent lower at S$1.20 on Thursday.