Yanlord Land Group sinks into the red with 486 million yuan H1 loss on write down

REAL estate developer Yanlord Land Group reversed into the red with a loss of 486 million yuan (S$89.3 million) for the six months ended Jun 30, compared to net profit of 1.1 billion yuan in the year-ago period.

This was due to a write down to net realisable value of completed properties for sale and properties under development for sale of 729.6 million yuan, as well as an increase in net impairment losses on financial assets amounting to 368.6 million yuan, said the group in a bourse filing on Wednesday (Aug 14).

Loss per share for the period was 25.16 fen, compared to an earnings per share of 56.7 fen a year ago.

The loss was despite revenue increasing 34.8 per cent to 20 billion yuan, from 14.8 billion yuan previously. This was attributed to an increase in the average selling price (ASP) per square metre, as well as gross floor area delivered to customers.

The higher ASP achieved by the group in H1 FY2024 was mainly attributable to the change in composition of product mix delivered during the reporting period, said the group.

The group said it delivered several projects, including Poetic Villa in Shanghai, Star Century in Tianjin and Yanlord on the Park in Shenyang. These projects collectively accounted for 90.4 per cent of the group’s revenue on sales of properties in H1 FY2024.

Other contributors to the group’s revenue included rental income from investment properties, income from hotel operations, and revenue from property management services, as well as other non-property business operations and ancillary services.

The group’s gross profit decreased by 37 per cent to 2.6 billion yuan in H1 FY2024, from 4.2 billion yuan. The decrease was primarily due to the change in the composition of product mix delivered and write-down of completed properties for sale and properties under development for sale in the first half.

As at Jun 30, the group’s total debt decreased by 10.1 per cent to 30.1 billion yuan. It has cash and cash equivalents of 10.6 billion yuan as of June, down from 13 billion yuan as at Dec 31, 2023.

Zhong Sheng Jian, Yanlord Land chair and chief executive, said the Chinese government’s stimulus measures have had a positive impact on real estate in some cities.

“The group will closely monitor market trends and adjust its strategies promptly, while maintaining financial health, to maximise and safeguard shareholder value,” he said.

Shares of Yanlord Land were flat on Wednesday at S$0.43, before the announcement.