Yanlord Land Group Limited, a high-end residential developer, announced that revenue for the fourth quarter soared 389.3 percent to RMB4.681 billion (S$927.21 million), attributed to higher selling prices achieved for its projects as well as an increased gross floor area (GFA) delivered during the period.
However, the company said that net profit attributable to shareholders in the financial year 2011 fell to RMB1.482 billion (S$293.58 million). The company’s project delivery was concentrated in achieving higher average cost of sales at its projects such as Yanlord G53 Apartments in Nanjing and Yanlord Townhouse (pictured) in Shanghai.
“In line with the changes in the delivered product mix, gross profit margin of the group declined from 54.6 percent in FY 2010 to 33.6 percent in FY 2011 which translated to a lower net profit attributable to shareholders in FY 2011 of RMB1.482 billion (S$293.58 million),” it added.
Meanwhile, Moody’s Investors Service has downgraded Yanlord’s senior unsecured bond rating to B1 from Ba3 and corporate family rating to Ba3 from Ba2.
“The downgrades reflects Moody’s concerns that if the government does not relax the current regulatory measures, Yanlord’s weak contract sales may continue in 2012 as its focuses on usually deluxe properties that are more vulnerable to regulatory measures,” noted Ken Chan, Vice President and Senior Analyst at Moody’s.
“Furthermore, the majority of the projects to be launched in 2012 will be at major cities, such as Shanghai, Nanjing and Suzhou, which have been affected by the home-purchase restrictions.”
He added that the company’s liquidity remains tight in comparison with the heavy payment requirements this year.
Related Stories:
PropNex, SingCapital launch rental protection service
Ho Bee’s full-year results weak