Yanlord Land Group (Z25) H2 2023 earnings summary

Executive summary

• FY 2023 revenue rose 51.1% to RMB43.395bn, while the year ended with a RMB722m loss and RMB934m loss attributable to owners.

• Contracted pre-sales fell 52.5% YoY to RMB32.352bn; total debt declined 26.4% to RMB33.437bn and net gearing eased to 46.7%.

Financial highlights

• FY revenue increased 51.1% to RMB43.395bn; gross profit rose 6.9% to RMB8.287bn, while gross margin fell 7.9ppt to 19.1%.

• FY net loss was RMB722m and loss attributable to owners was RMB934m, versus FY 2022 profits of RMB2.870bn and RMB1.533bn, respectively.

• 2H revenue increased 64.6% to RMB28.590bn, but 2H net loss was RMB2.194bn and loss attributable to owners was RMB2.029bn.

Outlook and guidance

• Accumulated contracted pre-sales pending recognition totaled RMB68.212bn on ~2.0m sqm at 31 Dec 2023.

• New projects and existing-project batches were scheduled for launch in 1H 2024 across the Yangtze River Delta, Bohai Rim, Hainan, Greater Bay Area, Central China and Western China.