The total gross floor area delivered to customers decreased and hit revenue.
Yanlord Group’s profits crashed 41% to $170.15m in Q2 from $291.48m in the same period in 2018, its financial statement revealed. Revenue plunged 58% to $804.20m from $1.90b in Q2 2018.
The group attributed the revenue decline to a decrease in the gross floor area (GFA) delivered to customers, partly offset by the increase in average selling price (ASP) per sqm. “Higher ASP per sqm achieved in Q2 2019 was primarily due to a change in the composition of the product mix,” it said.
Cost of sales decreased by $742.92m to $402.90m in line with the decrease in the GFA.
Yanlord Group continued to deliver new projects and new batches of existing projects in Q2 2019, namely, Riverbay Gardens (Phase 1) in Suzhou, Yanlord on the Park in Shanghai and Four Seasons Gardens (Phase 2) in Nantong, which accounted for 37.9%, 24.7% and 23.5% respectively to the gross revenue on sales of properties.
Zhong Sheng Jian, Yanlord Group’s chairman and CEO, said, “Consistent with our revenue recognition method and delivery schedule, profit for the year was impacted for 1H 2019 due to lower GFA delivered in the period. However, we are confident that progressive recognition of our pre-sold units in the subsequent quarters will serve to enhance our recognised revenue for financial year 2019.”
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