Yanlord Land reports 1H21 net profit climbed 67 percent as more properties were delivered

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Yanlord Land reported Thursday its first half net profit grew 67 percent on-year to 823.39 million yuan on higher gross floor area (GFA) delivered to customers, partly offset by lower average selling prices (ASP) due to a change in the product mix delivered.

Revenue for the January-to-June period increased 45 percent on-year to 13.19 billion yuan, the Chinese property developer said in a filing to SGX.

Property investment and hotel operations contributed 692 million yuan in revenue, up 40.9 percent on-year, mainly on the strong recovery in domestic business travel and tourism demand for hotels and serviced apartments in mainland China, Yanlord said.

Property development contributed 11.36 billion yuan in revenue, property management contributed 420 million yuan and the other segment contributed 718 million yuan, the filing said.

The group, including joint ventures and associates, delivered GFA of 711,738 square meters of residential and commercial units, and 3,323 units of car parks to customers in the first half, up 145.4 percent and 96.7 percent on-year, respectively, Yanlord said.

“Given the backdrop of strong economic recovery across the PRC during the reporting period, Yanlord’s development strategy of focusing on building premium developments in high-growth economic regions and cities within the PRC continues to deliver business growth,” Zhong Sheng Jian, Yanlord’s chairman and CEO, said in the statement.

The accumulated property contracted pre-sales of the group, including joint ventures and associates, reached 115.36 billion yuan as of end-June, pending recognition in the second half of 2021 and beyond, the filing said.