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Yanlord's Q4 profit falls 23%
REAL estate developer Yanlord Land Group's profit for the fourth quarter of 2017 attributable to owners of the company fell 23 per cent to 1.19 billion yuan (S$248.93 million) from the year-ago period, on the back of a 14 per cent rise in revenue to 11.28 billion yuan.
The rise in revenue came from the increase in average selling price per square metre due to the inclusion of higher-priced projects, such as Yanlord on the Park and Yanlord Eastern Gardens in Shanghai, both accounting for 84.7 per cent of the group's gross revenue on sales of properties in Q4 2017.
It was partly offset by the decrease in gross floor area delivered to the customers in Q4 2017 as compared to a year ago.
In line with the higher revenue, the group's gross profit grew by 31.5 per cent to 5.529 billion yuan in Q4 2017 as compared to 4.206 billion yuan in Q4 2016.R
Overall, profit for FY2017 rose by 19 per cent to 3.22 billion yuan on flat revenue, up just 0.1 per cent from the previous year to 25.64 billion yuan.
Yanlord also clocked higher investments in joint ventures, increasing by 278.4 per cent to 4.54 billion yuan as at Dec 31, 2017 from 1.2 billion yuan a year ago.
The increase was mainly due to the investments in Yanlord Perennial Investment (Singapore), Yanlord Eco Island Investments, Hangzhou Kesheng Property Development and Hangzhou Keyi Property Development.
Earnings per share for Q4 2017 was down to 61.72 fen from the year ago, while net asset value per ordinary share rose slightly to 11.77 yuan.
The group is proposing a final dividend of 33.31 fen for FY2017, which will be paid out at a later date at the equivalent 6.80 Singapore cents.
"The group will continue to deliver projects in accordance with its delivery schedule," Yanlord said, which includes the launch of Yanlord Majestive Mansion in Tianjin in Q1 2018.
"Given the volatilities in the global economy and the bearing of austerity measures introduced by the PRC government, the group will continue to maintain its strong cash position and prudent financial policies to ensure the sustainable growth and development of the group."
Yanlord last closed at S$1.65, down by one Singapore cent or 0.6 per cent on Thursday, before its earnings announcement.