Yanlord profit plummeted 94% to $11.41m in Q3

Lower GFA delivery dragged it down.

Real-estate developer Yanlord Land Group saw its profit plunge 94% YoY $11.41m (RMB58.8m) in Q3 from $196.48m (RMB1.012b) in 2018, an SGX filing revealed. Its revenue also dropped 49.5% to $559.24m (RMB2.88b) from $1.11b (RMB5.71b) over the same period.

The firm blamed its revenue and profit declines to the decrease in gross floor area delivered to customers, but are said to be partially offset by higher average selling price per sqm.

Gross profit margin in Q3 rose by 12.1 ppt to 57.9% from 45.8% in Q3 2018, due to the change in the composition of product-mix and cost adjustment.

As for the 9M 2019 period, Yanlord’s profit also crashed 62% YoY to $242m (RMB1.25b) from $638.03m (RMB3.29b) in 2018. Revenue halved (53%) to $2.06b (RMB10.59b), where most of it was generated by Riverbay Gardens (Phase 1) in Suzhou and Yanlord on the Park in Shanghai. The two properties represents 39.6% and 21.1% of the group's gross revenue, respectively.

Over the same period, Yanlord and its joint ventures’ accumulated contracted pre-sales and subscription sales surged 74.1% YoY to $6.51b (RMB33.56b).

Yanlord will launch new projects in Q4, such as Hangzhou Bayfront Isle (Phase 2), The Corals and Yanlord Riverside Gardens in Hangzhou, Yanlord Century Gardens in Jinan, Yanlord Phoenix Hill (Phase 1) and Cloud Serenity Gardens in Nanjing.