OPERATIONS REVIEW
Buoyed by the positive market environment in
the Group’s core markets, pre-sale of properties
and car parks leapt to approximately RMB28.887
billion in FY 2015 from RMB12.726 billion in
FY 2014 while accumulated pre-sales pending
recognition as at 31 December 2015 stood at
RMB22.101 billion compared to RMB10.263
billion as at 31 December 2014.
Recognised revenue of the Group in FY 2015 rose
41.3% to RMB16.581 billion from RMB11.736
billion in FY 2014. Increases in both GFA delivery
(up 39.6%) to 590,170 sqm and ASP (up 2.1%)
to RMB27,303 per sqm for delivered projects
underscored the healthy revenue growth.
Leveraging on our business strategies and
comparative advantages in the development
of quality residential apartments in prime
locations within high growth PRC cities, the
Group witnessed healthy buyer demand in its
various project launches. For instance, the Group
successfully launched the inaugural batch of
apartments at Yanlord Yangtze Riverbay Town
(Phase 4) in Nanjing in August 2015. Opening
to strong response from the market, Yanlord
sold approximately 75.8% of the apartment
units launched on the opening day, deriving
approximately RMB2.344 billion of pre-sales.
Building on the strong momentum, the Group
successfully launched the inaugural batch of
apartments at Yanlord on the Park in Shanghai
in November 2015. Garnering strong market
support, we sold approximately 78.2% or 147
of the 188 apartment units launched on the
opening day, deriving approximately RMB2.195
billion of pre-sales with an ASP of approximately
RMB86,292 per sqm for the transacted units.
Propelled by the strong demand for the Group’s
quality developments across markets, Yanlord
achieved cumulative pre-sales of over RMB10
billion and RMB7 billion in Shanghai and Nanjing
respectively.
INVESTMENT PROPERTY
Conceptualised to be a recurring revenue source,
our investment property portfolio has expanded
over the years into a key business segment for
the Group. Revenue contribution from our
investment property portfolio in FY 2015 was
marginally weaker at RMB401 million owing to
softer sentiments in the PRC retail and hospitality
segments.
During the year, the Group actively sought to
streamline leasing processes and strengthen
cost controls as well as resource sharing
initiatives to better enhance the management
and development of the Group’s investment
property portfolio. Capitalising on the success
of our earlier community business centres which
provide convenience retailing to residents at our
residential developments, we added an additional
11,420 sqm of leasable community retail space
in FY 2015 to our investment property portfolio
which will further augment our future revenue
streams.
THE PRC PROPERTY SECTOR EXPERIENCED A HEALTHY RECOVERY
IN FY 2015 FROM ITS FY 2014 TROUGH LEAD BY POSITIVE MARKET
SENTIMENTS AND FAVOURABLE REGULATORY POLICIES THAT
INCLUDED REDUCTIONS IN INTEREST RATES, RELAXATIONS ON
HOME PURCHASE RESTRICTIONS AS WELL AS THE EASING OF THE
ELIGIBILITY CRITERIA FOR FIRSTHOME MORTGAGES.
401
million
REVENUE
CONTRIBUTION
FROM
INVESTMENT
PROPERTY
PORTFOLIO
YANLORD LAND GROUP LIMITED
ANNUAL REPORT 2015
26
L REPORT 2015
