Yanlord’s Q1 profit falls by 23%

Mainboard-listed Chinese developer Yanlord said today that its first quarter net profit fell by 23 per cent on-year to S$18.7 million.

The decline in profit follows a 7 per cent drop in revenue from the year ago period to S$173.1 million.

Yanlord says the decrease in revenue was mainly attributable to a reduction in the gross floor area delivered over the period.

Other than seeing a fall in revenue, the firm’s bottomline was also impacted by higher expenses.

Selling expenses went up by 15 per cent to S$5.8 million as a result of an increase in bonuses and higher numbers of staff.

Administrative expenses also rose by 20 per cent to S$19.1 million on account of higher foreign exchange losses.

Looking ahead, Yanlord says the near term sentiment in China’s property market may be volatile following the government’s recent tightening measures.

But it remains confident about the long term potential of China’s real estate sector and is optimistic about its performance, relative to the industry trend.

Source : Channel NewsAsia – 13 May 2010

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