PROPERTY developer Yanlord Land Group posted a net profit of approximately one billion yuan (S$186.9 million) for the half year ended June 2023, down 20 per cent from the 1.4 billion yuan a year ago.

It attributed the decline to a “decrease in other operating income and other gains and share of profit of joint ventures as well as the increase in selling expenses and finance cost”. This was partly offset by an increase in gross profit and share of result of associates as well as decrease in administrative expenses and income tax, it added.

The property group also recorded a revenue of 14.8 billion yuan, up 31 per cent from 11.3 billion yuan in H1 2022.

Yanlord Land said in a bourse filing on Monday (Aug 14) that this was mainly due to an increase in gross floor area delivered to customers, though partly offset by the decrease in average selling price per square metre.

The group’s earnings per share of the first half fell 20 per cent to 56.7 fen, from 71.29 fen last year.

It did not declare a dividend this time.

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Yanlord’s chairman and chief executive officer Zhong Sheng Jian noted that confidence in mainland had not yet recovered, in spite of measures by the Chinese government to stimulate the economy post-Covid-19.

However, he remained confident of the market’s growth, given that it was the world’s second largest economy.

“This phase of market adjustment will bring the industry back to rationality,” said Zhong.

“The group will continue to adopt a prudent development strategy, focused and refined operational management and rigorous financial policies to cope with the ever-changing market environment.”

Shares in Yanlord slipped 2 per cent to S$0.735 at the close on Monday.