Yanlord Land reported Tuesday first quarter net profit dropped 59 percent on-year to 323.06 million yuan (S$64.29 million or US$46.94 million) on lower gross floor area (GFA) delivered and lower average selling prices as the product mix shifted.
A larger portion of higher-priced projects — Yanlord on the Park and Yanlord Western Gardens in Shanghai — were delivered in the year-ago period, Yanlord said. The gross profit margin decreased by 13.0 percentage points on-year to 42.7 percent in the first quarter, mainly on the product-mix change, it said.
Revenue for the quarter ended 31 March fell 50 percent on-year to 3.62 billion yuan, the China property developer said in a filing to SGX.
Finance costs increased 62 percent on-year to 216.05 million yuan on increased interest expenses on completed properties for sale and for financing investments in joint ventures, Yanlord said.
The share of loss from joint ventures was 36.76 million yuan, swinging from a year-ago profit of 111.97 million yuan, due to the year-earlier share of profit from Yanlord Perennial Investment (Singapore) and Tangshan Nanhu Eco-City project, Yanlord said.
Yanlord was optimistic in its outlook.
“The group continues to witness steadfast buyer demand for its high-quality residential developments,” Yanlord said, pointing to an accumulated pre-sale amount of 11.85 billion yuan as of end-March.
“In view of the healthy economic development and the rising aspirations of home upgraders, the group, with its high quality landbank and strong brand recognition, is well poised to tap the continued demand growth for quality residential developments,” Yanlord said.
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