Yanlord ups Q4 profit over 8 times to 2.1b yuan

YANLORD Land Group's net profit for the fourth quarter ended Dec 31, 2019 surged to 2.1 billion yuan (S$417 million), more than eight times the 256.9 million yuan a year ago.

This was mainly due to a climb in recognised revenue, which was driven by a significant increase in gross floor area delivered to customers in line with the group's delivery schedule, the China-based property developer said in a regulatory filing on Wednesday.

Earnings per share stood at 108.89 fen for the quarter, up from 13.3 fen a year ago.

Revenue for Q4 more than tripled to 8.07 billion yuan, from 2.33 billion yuan a year ago, mainly due to a significant increase in gross floor area delivered to customers.

The rise in gross floor area delivered was partially offset by a lower average selling price per square metre for the fourth quarter compared with a year ago.

A final cash dividend of 6.8 Singapore cents per share has been recommended for the full year, unchanged from a year ago and to be approved by shareholders. The date payable and books closure date will be announced at a later date.

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For the full year ended Dec 31, 2019, net profit was down 5 per cent to 3.35 billion yuan, while revenue was down 25 per cent to 18.67 billion yuan. (see amendment note)

The group said its board of directors are cautiously optimistic on Yanlord's performance for the next reporting period based on the number of pre-sale units to date, expected delivery schedules and on-schedule construction works in progress.

This is barring any significant deterioration in the global economy and any other unforeseen circumstances such as price cuts in major cities and further deterioration of the Covid-19 situation.

On the Covid-19 outbreak, Yanlord chairman and chief executive Zhong Sheng Jian said the management is closely monitoring the development of the situation and will adjust its existing business strategies to better mitigate against challenges posed by the event.

Yanlord shares closed flat at S$1.15 on Wednesday.

Amendment note: A previous version of the article incorrectly stated that Yanlord's full-year net profit and revenue for fiscal 2019 increased instead of decreased. The article has been amended to reflect this change.