SINGAPORE - China developer Yanlord Land Group has chalked up an 89 per cent rise in second quarter net profit to 323.9 million yuan ($64.8 million).
Revenue for the three months to June 30 more than trebled to 7.4 billion yuan from 2.34 billion yuan.
For the first six months, net profit soared by 213 per cent to 584.1 million yuan on the back of a 206 per cent rise in revenue to 10.26 billion yuan.
The increases in revenue for the periods under review were primarily due to a considerable increase in gross floor area delivered to customers and an increase in average selling price (ASP) on a per square metre basis compared to the same periods last year, said Yanlord in a statement.
"Higher ASP per sqm achieved in the current reporting periods mainly attributable to a change in composition of product mix delivered to customers to include a greater portion of higher-priced projects in current reporting periods as compared to the same periods in 2015," it noted.
The Group delivered three relatively higher-priced projects in Shanghai namely: Yanlord Western Gardens, Yanlord Sunland Gardens (Phase 1 and 2) and Yanlord Eastern Gardens.
The trio collectively accounted for 68.3 per cent and 65.7 per cent of the group's gross revenue from sales of properties in the second quarter and first six months, respectively.
Second quarter earnings per share swelled to 16.62 fen from 8.78 fen previously while net asset value per share climbed to 10.56 yuan compared to 10.44 yuan as at Dec 31.
Moving forward, Yanlord will continue to launch new projects and new batches of its existing projects in the third quarter namely, Yanlord Riverbay (Phase 2) in Chengdu, Four Seasons Gardens (Phase 2) in Nantong, Yanlord Sunland Gardens (Phase 2), Yanlord Eastern Gardens and Yanlord Western Gardens in Shanghai, Tang Yue Bay Gardens in Suzhou, Tianjin Jinnan Land (Phase 3) as well as Yanlord Marina Peninsula Gardens (Phase 2) in Zhuhai.
Yanlord said it continued to pursue opportunities to expand its landbank holdings.
Since the start of the year, it has announced the acquisition of full and partial stakes in seven land parcels across the first and second tier cities in China.
With a total combined gross floor area of some 1.78 million sqm, these land parcels are spread across key cities such as Shenzhen (two sites), Nanjing (two sites), Tianjin (two sites) and Suzhou (one site).
They are expected to contribute significantly to the group's future development.
Yanlord chairman and chief executive officer Zhong Sheng Jian said: "The continued encouragement for home ownership by the central government is a key catalyst for sustainable development of the China real estate sector."