unaudited full year financial statements...
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1
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
UNAUDITED FULL YEAR FINANCIAL STATEMENTS
AND DIVIDEND ANNOUNCEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014
TABLE OF CONTENT
Item No. Description Page
1(a) Consolidated Statements of Profit or Loss 2-5
1(b)(i) Statements of Financial Position 6-7
1(b)(ii) Aggregate Amount of Group’s Borrowings and Debt Securities 8
1(c) Consolidated Statements of Cash Flows 9-11
1(d) Statements of Comprehensive Income 12-13
1(e)(i) Unaudited Statements of Changes in Equity 14-23
1(e)(ii)(iii)(iv) Details of Any Changes in Company’s Issued Share Capital 24-25
2&3 Audit Statement 25
4&5 Changes in Accounting Policies 26
6 Earnings per Share 27
7 Net Asset Value per Share 27
8 Review of Performance 28-30
9 Variance from Previous Forecast or Prospect Statement 31
10 Outlook and Prospects 31-32
11&12 Dividend 32-33
13 Interested Person Transactions Mandate 33
14&15 Review of Segment Performance 34-36
16 Breakdown of Revenue and Profit After Tax 36
17 Annual Dividend 37
18 Disclosure of person occupying a managerial position in the
issuer or any of its principal subsidiaries who is a relative of a
director or chief executive officer or substantial shareholder
38
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YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
UNAUDITED FULL YEAR ("FY 2014") FINANCIAL STATEMENTS AND
DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2014
PART I – INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2, Q3
AND Q4), HALF YEAR AND FULL YEAR RESULTS
1(a) An income statement (for the Group), together with a comparative statement for the
corresponding period of the immediately preceding financial year.
Consolidated Statements of Profit or Loss for the Year Ended 31 December 2014
% %
4Q 2014 4Q 2013 Change FY 2014 FY 2013 Change
RMB’000 RMB’000 + / (-) RMB’000 RMB’000 + / (-)
(Unaudited) (Unaudited) (Unaudited) (Audited)
Revenue 7,484,359 4,710,696 59 11,733,334 11,280,109 4
Cost of sales (5,416,973) (2,909,258) 86 (8,302,184) (7,279,775) 14
Gross profit 2,067,386 1,801,438 15 3,431,150 4,000,334 (14)
Other operating income 939,309 596,619 57 1,100,206 636,528 73
Selling expenses (89,127) (68,172) 31 (260,284) (213,955) 22
Administrative expenses (179,974) (184,956) (3) (525,767) (561,472) (6)
Other operating expenses (987) (1,235) (20) (4,069) (3,057) 33
Finance cost (57,400) (63,043) (9) (236,566) (208,042) 14
Share of profit of joint
ventures 267 92,844 (100) 93,527 87,632 7
Profit before income tax 2,679,474 2,173,495 23 3,598,197 3,737,968 (4)
Income tax (1,021,924) (891,889) 15 (1,478,764) (1,645,869) (10)
Profit for the period / year 1,657,550 1,281,606 29 2,119,433 2,092,099 1
Profit attributable to:
Equity holders of the
Company 1,070,233 1,093,295 (2) 1,359,447 1,473,753 (8)
Non-controlling interests 587,317 188,311 212 759,986 618,346 23
1,657,550 1,281,606 29 2,119,433 2,092,099 1
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YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Profit before income tax was arrived at after charging / (crediting) the following:
4Q 2014 4Q 2013 FY 2014 FY 2013
RMB’000 RMB’000 RMB’000 RMB’000
(Unaudited) (Unaudited) (Unaudited) (Audited)
Allowance for doubtful debts and bad debts
written off - 44 - 41
Depreciation expense 7,626 7,994 30,661 35,418
Dividend income from held-for-trading
investment (89) (119) (208) (209)
Fair value gain on investment properties (929,988) (572,058) (991,491) (572,058)
Fair value (gain) loss on held-for-trading
investment (593) 326 (2,460) (71)
Finance cost 57,400 63,043 236,566 208,042
Interest income (39,170) (13,789) (81,626) (42,062)
Net (gain) loss on disposal of property, plant
and equipment (142) 64 (303) 111
Net gain on disposal of investment properties (331) (193) (1,202) (1,091)
Net foreign exchange loss 78,547 38,540 38,956 97,598
Revenue and cost of sales
Revenue of the Group, net of business tax, recorded a growth of 58.9% or RMB2.774 billion to
RMB7.484 billion in 4Q 2014 from RMB4.711 billion in 4Q 2013. Higher revenue achieved in 4Q
2014 was mainly attributable to increase in gross floor area (“GFA”) delivered as well as higher
average selling price (“ASP”) per square metre (“sqm”) achieved in 4Q 2014 as compared with the
corresponding period last year. Driven by the higher revenue achieved in 4Q 2014, FY 2014
revenue grew 4.0% or RMB453 million to RMB11.733 billion as compared to RM11.280 billion in FY
2013. The increase in FY 2014 revenue was primarily attributable to a higher ASP per sqm
achieved as a result of the delivery of higher-priced projects namely, Yanlord Sunland Gardens (仁
恒森兰雅苑) in Shanghai and Yanlord Yangtze Riverbay Town (仁恒江湾城) in Nanjing, partly offset
by lower GFA delivered in FY 2014 as compared to FY 2013.
Cost of sales, which mainly included land, construction and capitalised borrowing costs, increased
in-line with the increases in revenue to RMB5.417 billion in 4Q 2014 and RMB8.302 billion in FY
2014 from RMB2.909 billion in 4Q 2013 and RMB7.280 billion in FY 2013 respectively.
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YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Other contributors to the Group's revenue included the rental of investment properties, provision of
property management services, other ancillary services and advance purchase of construction
materials.
Other operating income
Other operating income comprising primarily a fair value gain on investment properties and interest
income increased by RMB343 million to RMB939 million in 4Q 2014 and by RMB464 million to
RMB1.100 billion in FY 2014 respectively as compared to the corresponding periods last year,
primarily due to an increase in fair value gain on investment properties. Other than continuing
appreciation in value of existing investment properties, the Group also recorded a fair value gain on
its new investment properties as a result of reclassifying a commercial property under development
namely, Yanlord Marina Centre (仁恒滨海中心) in Zhuhai and a completed property for sale as at 31
December 2014 namely, Yanlord Lakeview Bay - Land Parcel A6 (仁恒双湖湾 – A6地块) in Suzhou,
into investment properties in current year under review.
Selling expenses
Selling expenses, which mainly included staff costs, advertising and promotion expenses, as well as
intermediary agency fee, increased to RMB89 million in 4Q 2014 and RMB260 million in FY 2014
from RMB68 million in 4Q 2013 and RMB214 million in FY 2013 respectively. The increases were
mainly due to the increase in the sales locations and marketing personnel, as well as the Group's
continued commitment to launch a series of marketing campaigns to support the increases in
numbers of projects launched and delivered in 2014.
Administrative expenses
Administrative expenses mainly comprised of staff costs, utilities, entertainment expenses,
professional fees, other taxes, rental, depreciation and net foreign exchange loss. Administrative
expenses in 4Q 2014 declined by RMB5 million to RMB180 million in 4Q 2014 and by RMB36
million to RMB526 million in FY 2014 as compared with the same periods last year. The decrease
in FY 2014 was primarily due to a lower net foreign exchange loss incurred in FY 2014 as compared
to last year, partly offset by an increase in headcount and consequently staffing costs in current year
to support the growth of the Group’s business. The net foreign exchange loss in FY 2014 was
mainly due to the appreciation of the Company’s US$ denominated senior notes against its S$
functional currency in the period under review.
5
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Finance cost
Finance cost, net of capitalised interest, decreased by RMB6 million to RMB57 million in 4Q 2014
and increased by RMB29 million to RMB237 million in FY 2014 as compared with the corresponding
periods last year. The higher finance cost in FY 2014 was primarily attributable to an increase in
interest expense incurred on completed investment properties. In accordance with the Group’s
accounting policy, the finance cost used to finance the development of the Group’s properties would
be capitalised. Hence, the finance cost recorded in the statements of profit or loss for a given
period may not be reflective of the Group’s actual level of borrowings.
Share of profit of joint ventures
Share of profit of joint ventures increased to RMB94 million in FY 2014 from RMB88 million in FY
2013, despite share of profit of joint ventures in 4Q 2014 was lower than 4Q 2013. The increase
was mainly attributable to the improved performance of our Sino-Singapore Nanjing Eco Hi-tech
Island (中新南京生态科技岛), an urban development project to be progressively completed in
phases, which spans a total GFA of approximately 6,000,000 sqm. The project is jointly developed
with Sembcorp Development Ltd.
Income tax
Income tax comprised of statutory enterprise income tax, land appreciation tax and dividend
withholding tax. In tandem with the movement of profit before income tax, income tax was higher
at RMB1.022 billion in 4Q 2014 as compared to RMB892 million in 4Q 2013, while income tax was
lower at RMB1.479 billion in FY 2014 as compared to RMB1.646 billion in FY 2013.
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YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
1(b)(i) A statement of financial position (for the issuer and Group), together with a
comparative statement as at the end of the immediately preceding financial year.
Statements of Financial Position as at 31 December 2014
GROUP COMPANY
31.12.2014 31.12.2013 31.12.2014 31.12.2013
RMB’000 RMB’000 RMB’000 RMB’000
(Unaudited) (Audited) (Unaudited) (Audited)
ASSETS
Non-current assets
Property, plant and equipment 1,065,073 757,334 - -
Investment properties 10,244,250 8,764,770 - -
Properties for development 8,958,369 9,960,451 - -
Investments in subsidiaries - - 2,390,874 2,465,544
Investment in an associate - - - -
Investments in joint ventures 694,013 600,486 - -
Other receivables 304,876 - - -
Non-trade amount due from non-controlling
shareholders of a subsidiary 210,642 158,367 - -
Intangible asset 613 613 - -
Deferred tax assets 370,340 219,707 - -
Derivative financial instruments 1,426 20,402 - -
Total non-current assets 21,849,602 20,482,130 2,390,874 2,465,544
Current assets
Inventories 44,793 40,830 - -
Completed properties for sale 5,221,147 4,324,410 - -
Properties under development for sale 32,116,714 28,640,895 - -
Trade receivables 39,118 39,213 - -
Other receivables and deposits 583,587 411,268 1 3
Non-trade amounts due from:
Subsidiaries - - 12,542,828 12,785,666
Associate 366 354 - -
Joint ventures - 230 - -
Non-controlling shareholders of subsidiaries 512,601 376,380 - -
Other related parties 562 551 - -
Income tax prepayment 324,619 - - -
Held-for-trading investment 13,610 11,056 - -
Pledged bank deposits 29,842 29,643 - -
7
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
GROUP COMPANY
31.12.2014 31.12.2013 31.12.2014
0
31.12.2013
RMB’000 RMB’000 RMB’000 RMB’000
(Unaudited) (Audited) (Unaudited) (Audited)
Cash and cash equivalents 6,590,084 7,082,045 3,535 6,894
Total current assets 45,477,043 40,956,875 12,546,364 12,792,563
Total assets 67,326,645 61,439,005 14,937,238 15,258,107
EQUITY AND LIABILITIES
Capital and reserves
Share capital 7,261,726 7,261,726 7,261,726 7,261,726
Reserves 11,913,045 10,667,853 (659,157) (346,090)
Equity attributable to equity holders of
the Company 19,174,771 17,929,579 6,602,569 6,915,636
Non-controlling interests 10,198,470 9,928,798 - -
Total capital and reserves 29,373,241 27,858,377 6,602,569 6,915,636
Non-current liabilities
Bank loans – due after one year 11,480,881 7,535,512 273,651 293,138
Senior notes 6,243,882 6,185,391 4,258,493 4,209,800
Deferred tax liabilities 1,648,103 1,363,647 - -
Non-trade amount due to a non-controlling
shareholder of subsidiaries 20,000 20,000 - -
Total non-current liabilities 19,392,866 15,104,550 4,532,144 4,502,938
Current liabilities
Bank loans – due within one year 2,081,398 3,262,391 14,674 -
Convertible notes - 326,261 - 326,261
Trade payables 5,496,168 5,077,788 - -
Other payables 7,788,290 6,608,820 86,820 107,009
Non-trade amounts due to:
Subsidiary - - 3,679,754 3,249,140
Ultimate holding company - 133,741 - 133,741
Directors 21,277 23,382 21,277 23,382
Non-controlling shareholders of subsidiaries 189,833 153,427 - -
Other related parties 1,996 - - -
Income tax payable 2,981,576 2,890,268 - -
Total current liabilities 18,560,538 18,476,078 3,802,525 3,839,533
Total equity and liabilities 67,326,645 61,439,005 14,937,238 15,258,107
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YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
1(b)(ii) Aggregate amount of Group’s borrowings and debt securities
GROUP
As at 31.12.2014 As at 31.12.2013
RMB’000 RMB’000
(Unaudited) (Unaudited)
Amount repayable in one year or less, or on demand:-
Secured 1,305,170 1,685,313
Unsecured 866,789 2,125,727
Sub-total 1 2,171,959 3,811,040
Amount repayable after one year:-
Secured 7,533,815 6,143,142
Unsecured 10,190,948 7,577,761
Sub-total 2 17,724,763 13,720,903
Total debt 19,896,722 17,531,943
Details of any collateral
Secured borrowings are generally secured by the borrowing companies’ property, plant and
equipment, investment properties, properties for development, properties under development for
sale, completed properties for sale and bank deposits.
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YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
1(c) A statement of cash flows (for the Group), together with a comparative statement for the
corresponding period of the immediately preceding financial year.
Consolidated Statements of Cash Flows for the Year Ended 31 December 2014
4Q 2014 4Q 2013 FY 2014 FY 2013
RMB’000 RMB’000 RMB’000 RMB’000
(Unaudited) (Unaudited) (Unaudited) (Audited)
Operating activities
Profit before income tax 2,679,474 2,173,495 3,598,197 3,737,968
Adjustments for:
Allowance for doubtful debts and bad
debts written off - 44
- 41
Depreciation expense 7,626 7,994 30,661 35,418
Dividend income from held-for-trading
investment (89) (119)
(208) (209)
Fair value gain on investment
properties (929,988) (572,058) (991,491) (572,058)
Fair value (gain) loss on
held-for-trading investment (593) 326
(2,460) (71)
Finance cost 57,400 63,043 236,566 208,042
Interest income (39,170) (13,789) (81,626) (42,062)
Net (gain) loss on disposal of
property, plant and equipment (142) 64
(303) 111
Net gain on disposal of investment
properties (331) (193)
(1,202) (1,091)
Share of profit of joint ventures (267) (92,844) (93,527) (87,632)
Operating cash flows before
movements in working capital 1,773,920 1,565,963
2,694,607 3,278,457
Properties for development (41,097) (1,511,107) (3,305,546) (3,191,695)
Inventories (3,244) 5,720 (3,682) (1,152)
Completed properties for sale 396,702 966,031 1,841,877 2,674,828
Properties under development for sale 2,984,493 (119,947) (1,040,549) (1,650,760)
Trade and other receivables and
deposits (18,003) 50,351
(418,411) (68,432)
10
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
4Q 2014 4Q 2013 FY 2014 FY 2013
RMB’000 RMB’000 RMB’000 RMB’000
(Unaudited) (Unaudited) (Unaudited) (Audited)
Trade and other payables (2,400,555) 205,575 1,554,305 2,734,574
Cash generated from operations 2,692,216 1,162,586 1,322,601 3,775,820
Interest paid (310,425) (320,939) (1,333,726) (1,129,219)
Income tax paid (256,406) (308,877) (1,578,253) (1,556,699)
Net cash from (used in) operating
activities 2,125,385 532,770 (1,589,378) 1,089,902
Investing activities
Acquisition of a subsidiary - - - 327
Investments in joint ventures - - - (177,131)
Dividend received from held-for-trading
investment 89 119
208 209
Interest received 9,169 8,920 48,869 28,458
Decrease (Increase) in pledged bank
deposits 634 192,218
(199) (14,571)
Proceeds on disposal of property, plant
and equipment 984 278
2,079 9,066
Proceeds on disposal of investment
properties 2,214 4,659
10,204 20,025
Payment for property, plant and
equipment (81,342) (42,572)
(246,348) (100,600)
Payment for investment properties (88,456) (95,650) (232,647) (139,127)
Advance to an associate - - (12) (136)
(Advance to) Repayment from joint
ventures - (203)
230 (230)
(Advance to) Repayment from
non-controlling shareholders of
subsidiaries (107,851) 30,836
(62,610) (142,109)
Net cash (used in) from investing activities (264,559) 98,605 (480,226) (515,819)
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YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
4Q 2014 4Q 2013 FY 2014 FY 2013
RMB’000 RMB’000 RMB’000 RMB’000
(Unaudited) (Unaudited) (Unaudited) (Audited)
Financing activities
Dividends paid - - (125,097) (181,363)
Dividends paid to non-controlling
shareholders of subsidiaries (24,990) (251,823) (596,022) (625,823)
Net proceeds on issue of senior notes - - 1,966,685 1,969,864
Proceeds from bank loans 1,950,693 2,204,136 8,630,158 7,550,165
Repayment of bank loans (1,018,691) (619,188) (5,887,395) (5,097,558)
Redemption of convertible notes - - (348,208) -
Redemption of senior notes - - (1,938,765) -
Repayment to joint ventures (589) - - -
Advance from (Repayment to) directors 19,893 21,953 19,374 (7,989)
(Repayment to) Advance from ultimate
holding company (18,738) 15,436 (166,707) (76,901)
Advance from (Repayment to)
non-controlling shareholders of
subsidiaries 3,371 (47,907) 3,750 (228,607)
Advance from other related parties 250 - 1,996 -
Cash (withdrawal) injection from
non-controlling shareholders of
subsidiaries - (22,414) 55,537 (369,732)
Net cash from financing activities 911,199 1,300,193 1,615,306 2,932,056
Net increase (decrease) in cash and cash
equivalents 2,772,025 1,931,568
(454,298) 3,506,139
Cash and cash equivalents at beginning
of period / year 3,781,628 5,206,196
7,082,045 3,540,577
Effect of exchange rate changes on the
balance of cash held in foreign
currencies 36,431 (55,719)
(37,663) 35,329
Cash and cash equivalents at end of
period / year 6,590,084 7,082,045
6,590,084 7,082,045
12
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
1(d) A statement of comprehensive income (for the issuer and Group), together with a
comparative statement for the corresponding period of the immediately preceding
financial year.
Group Statements of Comprehensive Income for the Year Ended 31 December 2014
4Q 2014 4Q 2013 FY 2014 FY 2013
RMB’000 RMB’000 RMB’000 RMB’000
(Unaudited) (Unaudited) (Unaudited) (Audited)
Profit for the period / year 1,657,550 1,281,606 2,119,433 2,092,099
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss:
Currency translation difference 122,284 94,412 22,714 302,619
Cash flow hedge 1,551 25,169 (11,872) 4,778
Other comprehensive income for
the period / year 123,835 119,581 10,842 307,397
Total comprehensive income for
the period / year 1,781,385 1,401,187 2,130,275 2,399,496
Total comprehensive income
attributable to:
Equity holders of the Company 1,194,068 1,212,876 1,370,289 1,781,189
Non-controlling interests 587,317 188,311 759,986 618,307
1,781,385 1,401,187 2,130,275 2,399,496
13
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Unaudited Company Statements of Comprehensive Income for the Year Ended 31
December 2014
4Q 2014 4Q 2013 FY 2014 FY 2013
RMB’000 RMB’000 RMB’000 RMB’000
(Loss) Profit for the period / year (193,795) (204,724) 28,283 666,155
Other comprehensive expense:
Items that may be reclassified
subsequently to profit or loss:
Currency translation difference (276,175) (118,508) (216,253) (451,219)
Other comprehensive expense for
the period / year (276,175) (118,508) (216,253) (451,219)
Total comprehensive (expense)
income for the period / year (469,970) (323,232) (187,970) 214,936
Total comprehensive (expense)
income attributable to:
Equity holders of the Company (469,970) (323,232) (187,970) 214,936
Non-controlling interests - - - -
(469,970) (323,232) (187,970) 214,936
14
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
1(e)(i) A statement (for the issuer and Group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation
issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.
Unaudited Group Statements of Changes in Equity for the Year Ended 31 December 2014
Share
capital
Currency
translation
reserve
Equity
reserve
Statutory
reserve
Merger
deficit
Hedging
reserve
Other
reserve
Accumulated
profits
Attributable to
equity holders
of the
Company
Non-
controlling
interests
Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Balance at 1 January 2014 7,261,726 (110,114) 181,505 963,718 (1,834,019) 4,778 (337,230) 11,799,215 17,929,579 9,928,798 27,858,377
Total comprehensive income for the period:
Profit for the period - - - - - - - 266,001 266,001 92,302 358,303
Other comprehensive expense for the period - (147,438) - - - 8,137 - - (139,301) - (139,301)
Total - (147,438) - - - 8,137 - 266,001 126,700 92,302 219,002
Transactions with owners, recognised directly
in equity:
Dividend declared to non-controlling
shareholders - - - - - - - - - (352,281) (352,281)
Appropriations - - - 16,609 - - - (16,609) - - -
Total - - - 16,609 - - - (16,609) - (352,281) (352,281)
Balance at 31 March 2014 7,261,726 (257,552) 181,505 980,327 (1,834,019) 12,915 (337,230) 12,048,607 18,056,279 9,668,819 27,725,098
15
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Share
capital
Currency
translation
reserve
Equity
reserve
Statutory
reserve
Merger
deficit
Hedging
reserve
Other
reserve
Accumulated
profits
Attributable to
equity holders
of the
Company
Non-
controlling
interests
Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Total comprehensive income for the period:
Profit for the period - - - - - - - 14,809 14,809 43,376 58,185
Other comprehensive expense for the period - (29,489) - - - 137 - - (29,352) - (29,352)
Total - (29,489) - - - 137 - 14,809 (14,543) 43,376 28,833
Transactions with owners, recognised directly
in equity:
Capital injection by non-controlling
shareholders - - - - - - - - - 55,537 55,537
Dividends - - - - - - - (125,097) (125,097) - (125,097)
Dividend declared to non-controlling
shareholders - - - - - - - - - (210,645) (210,645)
Appropriations - - - 39,492 - - - (39,492) - - -
Total - - - 39,492 - - - (164,589) (125,097) (155,108) (280,205)
Balance at 30 June 2014 7,261,726 (287,041) 181,505 1,019,819 (1,834,019) 13,052 (337,230) 11,898,827 17,916,639 9,557,087 27,473,726
16
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Share
capital
Currency
translation
reserve
Equity
reserve
Statutory
reserve
Merger
deficit
Hedging
reserve
Other
reserve
Accumulated
profits
Attributable to
equity holders
of the
Company
Non-
controlling
interests
Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Total comprehensive income for the period:
Profit for the period - - - - - - - 8,404 8,404 36,991 45,395
Other comprehensive income for the period - 77,357 - - - (21,697) - - 55,660 - 55,660
Total - 77,357 - - - (21,697) - 8,404 64,064 36,991 101,055
Transfer on redemption of convertible notes
due 2014, representing total transaction with
owners, recognised directly in equity - - (181,505) - - - - 181,505 - - -
Balance at 30 September 2014 7,261,726 (209,684) - 1,019,819 (1,834,019) (8,645) (337,230) 12,088,736 17,980,703 9,594,078 27,574,781
17
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Share
capital
Currency
translation
reserve
Equity
reserve
Statutory
reserve
Merger
deficit
Hedging
reserve
Other
reserve
Accumulated
profits
Attributable to
equity holders
of the
Company
Non-
controlling
interests
Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Total comprehensive income for the period:
Profit for the period - - - - - - - 1,070,233 1,070,233 587,317 1,657,550
Other comprehensive income for the period - 122,284 - - - 1,551 - - 123,835 - 123,835
Total - 122,284 - - - 1,551 - 1,070,233 1,194,068 587,317 1,781,385
Transactions with owners, recognised directly
in equity:
Capital injection by non-controlling
shareholders - - - - - - - - - 82,500 82,500
Dividend declared to a non-controlling
shareholder - - - - - - - - - (65,425) (65,425)
Appropriations - - - 55,672 - - - (55,672) - - -
Total - - - 55,672 - - - (55,672) - 17,075 17,075
Balance at 31 December 2014 7,261,726 (87,400) - 1,075,491 (1,834,019) (7,094) (337,230) 13,103,297 19,174,771 10,198,470 29,373,241
18
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Unaudited Group Statements of Changes in Equity for the Year Ended 31 December 2013
Share
capital
Currency
translation
reserve
Equity
reserve
Statutory
reserve
Merger
deficit
Hedging
reserve
Other
reserve
Accumulated
profits
Attributable to
equity holders
of the
Company
Non-
controlling
interests
Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Balance at 1 January 2013 7,261,726 (412,772) 181,505 781,973 (1,834,019) - (337,230) 10,688,570 16,329,753 10,353,503 26,683,256
Total comprehensive income for the period:
Profit for the period - - - - - - - 67,305 67,305 98,490 165,795
Other comprehensive income for the period - 75,914 - - - - - - 75,914 (39) 75,875
Total - 75,914 - - - - - 67,305 143,219 98,451 241,670
Transactions with owners, recognised directly
in equity:
Capital injection by non-controlling
shareholders - - - - - - - - - 53,631 53,631
Dividend declared to a non-controlling
shareholder - - - - - - - - - (356,000) (356,000)
Appropriations - - - 65,312 - - - (65,312) - - -
Total - - - 65,312 - - - (65,312) - (302,369) (302,369)
Balance at 31 March 2013 7,261,726 (336,858) 181,505 847,285 (1,834,019) - (337,230) 10,690,563 16,472,972 10,149,585 26,622,557
19
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Share
capital
Currency
translation
reserve
Equity
reserve
Statutory
reserve
Merger
deficit
Hedging
reserve
Other
reserve
Accumulated
profits
Attributable to
equity holders
of the
Company
Non-
controlling
interests
Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Total comprehensive income for the period
Profit for the period - - - - - - - 6,437 6,437 72,208 78,645
Other comprehensive income for the period - 130,200 - - - (24,573) - - 105,627 - 105,627
Total - 130,200 - - - (24,573) - 6,437 112,064 72,208 184,272
Transactions with owners, recognised directly
in equity
Dividends - - - - - - - (181,363) (181,363) - (181,363)
Dividend declared to a non-controlling
shareholder - - - - - - - - - (18,000) (18,000)
Appropriations - - - (1,144) - - - 1,144 - - -
Total - - - (1,144) - - - (180,219) (181,363) (18,000) (199,363)
Balance at 30 June 2013 7,261,726 (206,658) 181,505 846,141 (1,834,019) (24,573) (337,230) 10,516,781 16,403,673 10,203,793 26,607,466
20
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Share
capital
Currency
translation
reserve
Equity
reserve
Statutory
reserve
Merger
deficit
Hedging
reserve
Other
reserve
Accumulated
profits
Attributable to
equity holders
of the
Company
Non-
controlling
interests
Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Total comprehensive income for the period
Profit for the period - - - - - - - 306,716 306,716 259,337 566,053
Other comprehensive income for the period - 2,132 - - - 4,182 - - 6,314 - 6,314
Total - 2,132 - - - 4,182 - 306,716 313,030 259,337 572,367
Transactions with owners, recognised directly
in equity
Acquisition of a subsidiary - - - - - - - - - 400 400
Return of non-controlling shareholder's
share of reserves - - - - - - - - - (336,121) (336,121)
Appropriations - - - 441 - - - (441) - - -
Total - - - 441 - - - (441) - (335,721) (335,721)
Balance at 30 September 2013 7,261,726 (204,526) 181,505 846,582 (1,834,019) (20,391) (337,230) 10,823,056 16,716,703 10,127,409 26,844,112
21
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Share
capital
Currency
translation
reserve
Equity
reserve
Statutory
reserve
Merger
deficit
Hedging
reserve
Other
reserve
Accumulated
profits
Attributable to
equity holders
of the
Company
Non-
controlling
interests
Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Total comprehensive income for the period
Profit for the year - - - - - - - 1,093,295 1,093,295 188,311 1,281,606
Other comprehensive income for the period - 94,412 - - - 25,169 - - 119,581 - 119,581
Total - 94,412 - - - 25,169 - 1,093,295 1,212,876 188,311 1,401,187
Transactions with owners, recognised directly
in equity
Return of non-controlling shareholder's
share of reserves - - - - - - - - - (95,909) (95,909)
Capital injection by a non-controlling
shareholder - - - - - - - - - 8,667 8,667
Dividends declared to non-controlling
shareholders - - - - - - - - - (299,680) (299,680)
Appropriations - - - 117,136 - - - (117,136) - - -
Total - - - 117,136 - - - (117,136) - (386,922) (386,922)
Balance at 31 December 2013 7,261,726 (110,114) 181,505 963,718 (1,834,019) 4,778 (337,230) 11,799,215 17,929,579 9,928,798 27,858,377
22
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Unaudited Company Statements of Changes in Equity for the Year Ended 31 December 2014
Share
capital
Currency
translation
reserve
Equity
reserve
Accumulated
(losses)
profits
Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Balance at 1 January 2014 7,261,726 (289,082) 181,505 (238,513) 6,915,636
Total comprehensive income for the period:
Profit for the period - - - 41,773 41,773
Other comprehensive income for
the period - 219,315 - - 219,315
Total - 219,315 - 41,773 261,088
Balance at 31 March 2014 7,261,726 (69,767) 181,505 (196,740) 7,176,724
Total comprehensive income for the period:
Profit for the period - - - 368,099 368,099
Other comprehensive income for
the period - 56,318 - - 56,318
Total - 56,318 - 368,099 424,417
Dividends, representing total transaction
with owners, recognised directly in equity - - - (125,097) (125,097)
Balance at 30 June 2014 7,261,726 (13,449) 181,505 46,262 7,476,044
Total comprehensive expense for the period:
Loss for the period - - - (187,794) (187,794)
Other comprehensive expense for
the period - (215,711) - - (215,711)
Total - (215,711) - (187,794) (403,505)
Transfer on redemption of convertible notes
due 2014, representing total transaction with
owners, recognised directly in equity - - (181,505) 181,505 -
Balance at 30 September 2014 7,261,726 (229,160) - 39,973 7,072,539
Total comprehensive expense for the period:
Loss for the period - - - (193,795) (193,795)
Other comprehensive expense for
the period - (276,175) - - (276,175)
Total - (276,175) - (193,795) (469,970)
Balance at 31 December 2014 7,261,726 (505,335) - (153,822) 6,602,569
23
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Unaudited Company Statements of Changes in Equity for the Year Ended 31 December 2013
Share
capital
Currency
translation
reserve
Equity
reserve
Accumulated
(losses)
profits
Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Balance at 1 January 2013 7,261,726 162,137 181,505 (723,305) 6,882,063
Total comprehensive expense for the period:
Loss for the period - - - (210,015) (210,015)
Other comprehensive expense for
the period - (119,187) - - (119,187)
Total - (119,187) - (210,015) (329,202)
Balance at 31 March 2013 7,261,726 42,950 181,505 (933,320) 6,552,861
Total comprehensive income for the period:
Profit for the period - - - 1,151,852 1,151,852
Other comprehensive expense for
the period - (240,874) - - (240,874)
Total - (240,874) - 1,151,852 910,978
Dividends, representing total transaction with
owners, recognised directly in equity - - - (181,363) (181,363)
Balance at 30 June 2013 7,261,726 (197,924) 181,505 37,169 7,282,476
Total comprehensive expense for the period:
Loss for the period - - - (70,958) (70,958)
Other comprehensive income for
the period - 27,350 - - 27,350
Total - 27,350 - (70,958) (43,608)
Balance at 30 September 2013 7,261,726 (170,574) 181,505 (33,789) 7,238,868
Total comprehensive expense for the period:
Loss for the period - - - (204,724) (204,724)
Other comprehensive expense for
the period - (118,508) - - (118,508)
Total - (118,508) - (204,724) (323,232)
Balance at 31 December 2013 7,261,726 (289,082) 181,505 (238,513) 6,915,636
24
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
1(e)(ii) Details of any changes in the Company’s share capital arising from rights issue, bonus
issue, share-buy-backs, exercise of share options or warrants, conversion of other issues of
equity securities, issue of shares for cash or as consideration for acquisition or for any other
purpose since the end of the previous period reported on. State also the number of shares that
may be issued on conversion of all the outstanding convertibles, as well as the number of
shares held as treasury shares, if any, against the total number of issued shares excluding
treasury shares of the issuer, as at the end of the current financial period reported on and as at
the end of the corresponding period of the immediately preceding financial year.
Share Capital
As at 31 December 2014, the issued and fully paid-up share capital of the Company, net of expenses,
was RMB7.262 billion (30 September 2014: RMB7.262 billion). Details of the Company’s issued
ordinary shares at the end of the relevant financial periods were as follows:
Number of
ordinary shares
’000
RMB’000
As at 31 December 2013 1,948,736 7,261,726
As at 1 October 2014 and 31 December 2014 1,948,736 7,261,726
Convertible Notes Due 2014
The Company had in July 2009 issued S$375 million convertible notes due 2014 (“Notes 2014” and
each, a “Note 2014”) at a conversion price of S$2.6208 per share. With effect from 1 June 2010, the
conversion price was adjusted from S$2.6208 to S$2.59 per share and with effect from 6 June 2011,
from S$2.59 to S$2.56 per share. With effect from 16 May 2013, the conversion price was further
adjusted from S$2.56 to S$2.52 per share and with effect from 6 June 2014, from S$2.52 to S$2.49
per share.
In July 2012, the holders of S$305 million outstanding Notes 2014 exercised their put options. In July
2014, the Company redeemed the remaining S$70 million outstanding Notes 2014 in full in
accordance with the terms set out in the Trust Deed dated 13 July 2009. No Note 2014 was
converted into ordinary shares during the financial period and outstanding for conversion into ordinary
shares as at the end of the current financial period.
25
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Based on the conversion price of S$2.52 per share and assuming the remaining S$70 million
outstanding Notes 2014 as at 31 December 2013 were fully converted, the number of new ordinary
shares to be issued would be approximately 27,777,777 shares as at 31 December 2013.
Treasury Shares
The Company did not hold any treasury shares as at 31 December 2014 and 31 December 2013.
1(e)(iii) To show the total number of issued shares excluding treasury shares as at the end of
the current financial period and as at the end of the immediately preceding year.
Please refer to Note 1(e)(ii).
1(e)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury
shares as at the end of the current financial period reported on.
Not applicable.
2. Whether the figures have been audited or reviewed, and in accordance with which auditing
standard or practice
The figures for the fourth quarter and full year ended 31 December 2014 have neither been audited
nor reviewed by the auditors.
3. Where the figures have been audited or reviewed, the auditor’s report (including any
qualifications or emphasis of a matter)
Not applicable.
26
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
4. Whether the same accounting policies and methods of computation as in the issuer’s most
recently audited annual financial statements have been applied
The Group has applied the same accounting policies and methods of computation in the unaudited
financial statements for the current financial period as those of the audited financial statements for the
year ended 31 December 2013, as well as all the applicable Singapore Financial Reporting Standards
(“FRSs”) which became effective for the financial year beginning on or after 1 January 2014. The
adoption of these new and revised FRSs has no material effect on the unaudited financial statements
for the current financial period, except as disclosed below.
FRS 112 Disclosure of Interests in Other Entities
FRS 112 is a new disclosure standard and is applicable to entities that have interests in subsidiaries,
joint arrangements, associates or unconsolidated structured entities. In general, the application of FRS
112 has resulted in more extensive disclosures in the consolidated financial statements.
5. If there are any changes in the accounting policies and methods of computations, including
any required by an accounting standard, what has changed, as well as the reasons for, and the
effect of, the change
Please refer to Note 4.
27
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
6. Earnings per ordinary share (EPS) of the Group for the current financial period reported on
and the corresponding period of the immediately preceding financial year, based on profit
after tax and non-controlling interests attributable to the equity holders of the Company after
deducting any provision for preference dividends.
GROUP GROUP
4Q 2014 4Q 2013 FY 2014 FY 2013
(Unaudited) (Unaudited) (Unaudited) (Audited)
EPS based on Group’s profit
attributable to equity holders
of the Company:
(i) On the weighted average
number of shares (RMB) 54.92 cents 56.10 cents 69.76 cents 75.63 cents
- Weighted average number of
shares (’000) 1,948,736 1,948,736 1,948,736 1,948,736
(ii) On a fully diluted basis (RMB) 54.92 cents 55.40 cents 69.42 cents 74.90 cents
- Adjusted weighted average
number of shares (’000) 1,948,736 1,976,514 1,963,458 1,976,354
7. Net asset value (for the issuer and Group) per ordinary share based on the total number of
issued shares excluding treasury shares of the issuer at the end of the:-
(i) current financial period reported on; and
(ii) immediately preceding financial year
GROUP COMPANY
31.12.2014 31.12.2013 31.12.2014 31.12.2013
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net asset value per share based
on issued share capital at the
end of the year (RMB) 9.84 9.20 3.39 3.55
28
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
8. A review of the performance of the Group, to the extent necessary for a reasonable
understanding of the Group’s business. It must include a discussion of the following:-
(a) any significant factors that affected the turnover, costs, and earnings of the Group for the
current financial period reported on, including (where applicable) seasonal or cyclical
factors; and
4Q 2014 vs. 4Q 2013
Underscored by a significant increase in GFA delivered to customers in 4Q 2014 and in-line with the
Group’s planned delivery schedule, revenue of the Group rose 58.9% or RMB2.774 billion to
RMB7.484 billion in 4Q 2014 from RMB4.711 billion in 4Q 2013. In addition, the higher ASP per sqm
achieved by the Group in 4Q 2014 as a result of the change in composition of product mix to include a
larger portion of higher-priced project, Yanlord Sunland Gardens (仁恒森兰雅苑) in Shanghai, further
drove revenue growth in 4Q 2014 as compared to 4Q 2013. Revenue in 4Q 2014 was mainly
generated from the handover of three new projects namely, Yanlord Yangtze Riverbay Town (Phase 3)
(仁恒江湾城三期) in Nanjing, Yanlord Sunland Gardens (Phase 2) (仁恒森兰雅苑二期) in Shanghai
and Yanlord Lakeview Bay – Land Parcel A5 (仁恒双湖湾 – A5 地块) in Suzhou, which accounted for
42.4%, 32.2% and 11.8% respectively of the Group’s sales of properties in 4Q 2014.
Gross profit increased by 14.8% or RMB266 million to RMB2.067 billion in 4Q 2014 from RMB1.801
billion in 4Q 2013, in-line with the higher GFA delivered in the period. Gross profit margin was lower
at 27.6% in 4Q 2014 as compared to 38.2% in 4Q 2013 primarily due to the change in composition of
product mix in 4Q 2014, in particularly to include Yanlord Lakeview Bay – Land Parcel A5 (仁恒双湖
湾 – A5 地块) in Suzhou and Yanlord Sunland Gardens (Phase 2) (仁恒森兰雅苑二期) in Shanghai as
mentioned below.
Profit before income tax grew by 23.3% or RMB506 million to RMB2.679 billion in 4Q 2014 from
RMB2.173 billion in 4Q 2013 mainly attributable to the increase in GFA delivered and fair value gain
on investment properties as mentioned above in Note 1(a). Profit before income tax margin was
35.8% in 4Q 2014 as compared to 46.1% in 4Q 2013 in tandem with the lower gross profit margin
recorded in 4Q 2014.
Profit for the period increased to RMB1.658 billion in 4Q 2014 from RMB1.282 billion in 4Q 2013,
while its margin decreased to 22.1% in 4Q 2014 from 27.2% in 4Q 2013.
29
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
FY 2014 vs. FY 2013
Driven by the higher ASP per sqm achieved as a result of the change in composition of product mix to
deliver higher-priced projects as mentioned above in Note 1(a), the Group recorded a growth of 4.0%
or RMB453 million in its revenue to RMB11.733 billion in FY 2014 from RMB11.280 billion in FY 2013.
The major contributors to the FY 2014 revenue included the delivery of Yanlord Sunland Gardens
(Phase 1 and 2) (仁恒森兰雅苑一及二期) in Shanghai, Yanlord Yangtze Riverbay Town (Phase 3) (仁
恒江湾城三期) in Nanjing, Yanlord Lakeview Bay – Land Parcels A2 and A5 (仁恒双湖湾 – A2 及 A5
地块) in Suzhou, Yanlord Riverbay (Phase 1) (仁恒滨河湾一期) in Chengdu and Yanlord Riverside
Gardens (Phase 1) (仁恒河滨花园一期) in Tianjin, which represented 30.3%, 28.0%, 13.1%, 10.7%
and 5.3% respectively to the Group’s gross revenue from the sales of properties in FY 2014.
Gross profit was lower at RMB3.431 billion in FY 2014 as compared to RMB4.000 billion in FY 2013,
in-line with lower gross profit margin in FY 2014. The decrease in gross profit margin to 29.2% in FY
2014 from 35.5% in FY 2013 was mainly due to the change in composition of product mix in FY 2014,
in particularly to include three relatively lower profit margin projects namely, Yanlord Lakeview Bay –
Land Parcel A5 (仁恒双湖湾 – A5 地块) in Suzhou, Yanlord Riverbay (Phase 1) (仁恒滨河湾一期) in
Chengdu and Yanlord Sunland Gardens (Phase 2) (仁恒森兰雅苑二期) in Shanghai. Lower profit
margin of the latter was due to its relatively higher land cost as compared to its Phase 1.
The lower FY 2014 gross profit partly offset by the higher fair value gain on investment properties as
mentioned above in Note 1(a), hence, profit before income tax and its margin decreased slightly by
3.7% and 2.4 percentage points respectively to RMB3.598 billion and 30.7% respectively in FY 2014
as compared to last year.
Profit for the year increased slightly by 1.3% or RMB27 million to RMB2.119 billion in FY 2014 as
compared with last year, while profit for the year margin remained stable at approximately 18% in both
FY 2014 and FY 2013.
b) any material factors that affected the cash flows, working capital, assets or liabilities of
the Group during the current financial period reported on.
30
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
STATEMENTS OF FINANCIAL POSITION
Other receivables (Non-current assets)
Other receivables of RMB305 million as at 31 December 2014 mainly represented payments for
resettlement deals for land parcels in Chengdu, which was adjacent to our integrated commercial
development - Yanlord Landmark (仁恒置地广场).
Income tax prepayment (Current assets)
Income tax prepayment, which mainly included prepayments on statutory enterprise income tax and
land appreciation tax, was RMB325 million as at 31 December 2014. Material income tax
prepayment was separately presented in the current year, while such prepayment amount as at 31
December 2013 was included in and netted off with “Income tax payable (Current liabilities)” in the
statements of financial position as at 31 December 2013.
Other payables (Current liabilities)
Other payables, which mainly included advances received from customers, increased by 17.8% or
RMB1.179 billion to RMB7.788 billion as at 31 December 2014 from RMB6.609 billion as at 31
December 2013 mainly due to an increase in pre-sales proceeds received from customers.
STATEMENTS OF CASH FLOWS
Net cash used in operating activities
Compared to net cash inflow of RMB1.090 billion in FY 2013, the Group recorded net cash used in
operating activities of RMB1.589 billion in FY 2014 primarily due to higher construction cost payments
and relatively lower net operating profit generated in current year as compared with last year, as well
as the payments for resettlement deals in Chengdu for the year under review.
Net bank loan drawdown
Net bank loan drawdown in 4Q 2014 decreased to RMB932 million from RMB1.585 billion in 4Q 2013,
while the net bank loan drawdown in FY 2014 increased to RMB2.743 billion from RMB2.453 billion in
FY 2013. The increase in net bank loan drawdown in current year was in-line with the funding
requirements of the Group to meet the continuing development of various existing projects as well as
the land bank payments for the year under review, such as Oasis New Island Gardens (绿洲新岛花园)
(formerly known as Nanjing Eco Hi-tech Island - Land Parcel G73 (南京生态科技岛 – G73 地块)) in
Nanjing and the newly acquired land parcel in 2Q 2014 namely, Suzhou Gao Xin Land (苏州高新地块).
31
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders,
any variance between it and the actual results
No forecast or prospect statement for the current financial period has been previously disclosed to
shareholders.
10. A commentary at the date of the announcement of the significant trends and competitive
conditions of the industry in which the Group operates and any known factors or events that
may affect the Group in the next reporting period and the next 12 months
INDUSTRY OUTLOOK
To better encourage home ownership in the People's Republic of China ("PRC")1, the PRC central
bank has in recent months released various credit easing measures including reduction in interest
rates, relaxation of bank reserve ratio requirements as well as the easing of the eligibility criteria for
first-home mortgages, allowing buyers who have fully repaid mortgages to enjoy lower downpayments
and mortgage rates, with first-home status. These liquidity measures coupled with the expressed
statement to local banks to support the reasonable financing needs of developers will serve to further
support end-user housing demand and contribute to the sustainable development of the PRC real
estate sector.
In addition to the easing of liquidity measures, buyer sentiments in the PRC were further buoyed by
the progressive relaxation of austerity measures introduced by the central government since 2010 to
cool the property sector in various cities across the PRC.
COMPANY OUTLOOK
The Group continues to witness steadfast buyer demand for its high-quality residential developments.
As at 31 December 2014, the Group has received advances for pre-sale properties (recorded as
“Other payables” in the statements of financial position), amounting to RMB6.891 billion, with an
accumulated pre-sale amount of RMB10.384 billion.
1 Reference: The People's Bank of China Notice released on 30 September 2014 (中国人民银行 中国银行业监督管理委员会关
于进一步做好住房金融服务工作的通知)
32
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
The Group will continue to launch new batches of its existing projects in 1Q 2015 namely, Oasis New
Island Gardens (Phase 1) (绿洲新岛花园一期) in Nanjing, Yanlord Rosemite (仁恒峦山美地花园) in
Shenzhen, Yanlord Western Gardens (仁恒西郊雅苑) in Shanghai, Tianjin Jinnan Land (Phase 2) (景
新花园二期) and Yanlord Marina Peninsula Gardens (Phase 1) (仁恒滨海半岛花园一期) (formerly
known as Yanlord Marina Peninsula Gardens - Land Parcels S3 and SB (仁恒滨海半岛花园 – S3 及
SB 地块)) in Zhuhai.
Outlook
Normalisation of the PRC real estate sector following the relaxation of regulatory policies and the
liquidity easing measures may still be some time away as banks work out the details of their revised
policies towards real estate lending and cooling measures implemented in first-tier cities such as
Beijing and Shanghai continue to be in force. As such, near term volatilities in the PRC real estate
sector is expected to continue. To mitigate against these uncertainties, the Group has its prudent
financial policies coupled with its cash position. This will drive its sustained development. Led by
an experienced and dedicated management team with extensive industry knowledge of the PRC real
estate sector, the Group will continue to focus on its business strategies and comparative advantages
in the development of quality residential apartments in prime locations within high growth PRC cities.
This will best allow for the sustainable growth of the Group’s core business segments and to capitalise
on the long term growth prospects of the PRC real estate sector.
Barring any further significant deterioration in the global economy and any other unforeseen
circumstances, the Board of Directors is confident of the Group’s performance relative to the industry
trend for the next reporting period and the next 12 months based on the number of pre-sale units
to-date, expected delivery schedules and on-schedule construction works in progress.
11. Dividend
(a) Any dividend declared for the current financial period reported on? Yes. Please refer to Note 17.
(b) Any dividend declared for the corresponding period of the immediately preceding financial year?
Yes. Please refer to Note 17.
(c) Date payable: To be announced at a later date.
(d) Books closure date: To be announced at a later date.
33
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
12. If no dividend has been declared/recommended, a statement to that effect
Not applicable.
13. If the Group has obtained a general mandate from shareholders for Interested Person
Transactions (“IPTs”), the aggregate value of such transactions as required under Rule
920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect.
The aggregate IPTs entered into during the financial year under review under Chapter 9 of the
SGX-ST Listing Manual were as follows:-
Name of interested person
Aggregate value of all interested
person transactions during the
financial year under review
(excluding transactions less than
S$100,000 and transactions
conducted under shareholders'
mandate pursuant to Rule 920)
FY 2014
Aggregate value of all
interested person
transactions conducted
under shareholders'
mandate pursuant to Rule
920 (excluding transactions
less than S$100,000)
FY 2014
Yanlord Holdings Pte. Ltd.* RM11,290,670 NA
Pretty Honour Investment Limited* RMB19,880,280 NA
Zhong Si Min* RMB7,810,314 NA
Total: RMB38,981,264 NA
The Group does not have a shareholders’ general mandate for IPTs.
NA: Not applicable
Note:
* Associates (as defined in the SGX Listing Manual) of Zhong Sheng Jian, director and controlling
shareholder of the Company.
34
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
PART II – ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT (This
part is not applicable to Q1, Q2, Q3 or Half Year Results)
14. Segmental revenue and results for business or geographical segments (of the Group) in
the form presented in the issuer’s most recently audited annual financial statements, with
comparative information for the immediately preceding year.
UNAUDITED SEGMENTAL ANALYSIS
Revenue Profit (loss) before income tax
FY 2014 FY 2013 % Change FY 2014 FY 2013 % Change
RMB’000 RMB’000 + / (-) RMB’000 RMB’000 + / (-)
Property development 10,907,988 10,569,622 3 2,626,019 3,221,482 (18)
Property investment 447,868 453,878 (1) 1,092,393 712,934 53
Others 377,478 256,609 47 (120,215) (196,448) (39)
11,733,334 11,280,109 4 3,598,197 3,737,968 (4)
NM: Not meaningful
Property Development
The Group continued to record a year-to-year increase of 3.2% in its revenue from sales of properties,
net of business tax, to RMB10.908 billion in FY 2014 as compared with RMB10.570 billion in FY 2013
primarily due to higher ASP per sqm achieved in current year as compared with last year as
mentioned above in Note in 1(a). Profit before income tax and profit before income tax margin
decreased to RMB2.626 billion and 24.1% respectively in FY 2014 from RMB3.221 billion and 30.5%
respectively in FY 2013, in-line with the lower gross profit and gross profit margin recorded in the
periods as the result of the change in composition of production mix as mentioned above in Note 8(a).
The Group successfully completed the inaugural delivery of four developments in FY 2014 namely,
Yanlord Yangtze Riverbay Town (Phase 3) (仁恒江湾城三期) in Nanjing, Yanlord Sunland Gardens
(Phase 2) (仁恒森兰雅苑二期) in Shanghai, Yanlord Riverbay (Phase 1) (仁恒滨河湾一期) in Chengdu
and Yanlord Lakeview Bay – Land Parcel A5 (仁恒双湖湾 – A5 地块) in Suzhou, which collectively
accounted for 67.8% of the Group’s gross revenue from sales of properties in FY 2014. The Group
continued to receive positive market responses on subsequent batches of its existing projects namely,
Yanlord Sunland Gardens (Phase 1) (仁恒森兰雅苑一期) in Shanghai, Yanlord Lakeview Bay – Land
35
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
Parcel A2 (仁恒双湖湾 – A2 地块) in Suzhou and Yanlord Riverside Gardens (Phase 1) (仁恒河滨花园
一期) in Tianjin, which collectively accounted for 19.6% of the Group’s gross revenue from sales of
properties in FY 2014. Each of these three existing projects’ ASP per sqm recorded an increase in
FY 2014 as compared with FY 2013.
Property Investment
Revenue from property investment portfolio, which mainly included rental income net of business tax,
decreased slightly by 1.3% or RMB6 million to RMB448 million in FY 2014 from RMB454 million in FY
2013.
Profit before income tax recorded a considerable increase of 53.2% or RMB379 million to RMB1.092
billion in FY 2014 from RMB713 million in FY 2013 mainly attributable to the increase in fair value gain
on investment properties in current year as compared with last year. Fair value of all existing
investment properties continued to appreciate in FY 2014 over the immediately preceding financial
year, particularly the commercial complex in Yanlord Landmark (仁恒置地广场) in Chengdu and
Yanlord Riverside Plaza (仁恒海河广场) in Tianjin as well as serviced apartments of Yanlord
International Apartments (Tower A) (仁恒国际公寓 A 栋) in Nanjing, which collectively accounted for
73.1% of the Group’s fair value gain on investment properties in FY 2014. Three new investment
properties namely, office building in Yanlord Marina Centre - Section A (仁恒滨海中心 - A 标段) in
Zhuhai as well as retail shops in Yanlord Marina Centre - Section B (仁恒滨海中心 - B 标段) in Zhuhai
and Yanlord Lakeview Bay - Land Parcel A6 (仁恒双湖湾 – A6 地块) in Suzhou, also collectively
contributed 23.2% to the Group’s fair value gain on investment properties in FY 2014.
Others
Other segment included mainly property management, ancillary services, advance purchase of
construction materials and investment holding. Revenue from other segment increased by 47.1% or
RMB121 million to RMB377 million in FY 2014 from RMB257 million in FY 2013. The increase was
mainly attributable to an increase in income from advance purchase of construction materials and an
increase in management fee income riding on continuing delivery of properties to customers in current
reporting year.
Loss before income tax in other segment decreased to RMB120 million in FY 2014 from RMB196
million in FY 2013 primarily due to the lower net foreign exchange loss as mentioned above in Note
1(a) and higher interest income in current year as compared with last year.
36
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
15. In the review of performance, the factors leading to any material changes in contributions
to revenue and earnings by the business or geographical segments
None.
16. Breakdown of Group’s revenue and profit after tax for first half year and second half year
2014
RMB’000
2013
RMB’000
% Change
+ / (-)
(Unaudited) (Unaudited)
Revenue
- first half 3,271,745 3,061,824 7
- second half 8,461,589 8,218,285 3
Full year revenue 11,733,334 11,280,109 4
Profit after tax before deducting non-controlling interests (“PAT”)
- first half 416,488 244,440 70
- second half 1,702,945 1,847,659 (8)
Full year PAT 2,119,433 2,092,099 1
37
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
17. A breakdown of the total annual dividend (in dollar value) for the issuer’s latest full year
and its previous full year.
FY 2014 (1)
FY 2013
Name of dividend First and final (One-tier) tax
exempt
First and final (One-tier) tax
exempt
Type of dividend Cash Cash
Dividend per share (RMB) 6.33 cents (2)
6.42 cents (3)
Dividend per share
(equivalent to S$) 1.30 cents 1.30 cents
Annual dividend (RMB’000) RMB123,410 (2)
RMB125,097 (3)
Annual dividend (equivalent
to S$’000) S$25,334 S$25,334
Note:
(1) The Board of Directors has recommended the payment of a dividend for FY 2014. Payment of the said
dividend is subject to the approval of shareholders at the forthcoming Annual General Meeting. The above
annual dividend for FY 2014 is estimated based on the number of issued shares as at 31 December 2014.
(2) The said dividend will be paid in Singapore dollar. For the reference, the equivalent in RMB is calculated at
the average exchange rate of S$1:RMB4.8714 for FY 2014.
(3) The said dividend was paid in Singapore dollar. The equivalent in RMB was calculated at an exchange rate of
S$1:RMB4.9380.
38
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
18. Disclosure of person occupying a managerial position in the issuer or any of its principal
subsidiaries who is a relative of a director or chief executive officer or substantial shareholder
of the issuer pursuant to Rule 704(13) in the format below. If there are no such persons, the
issuer must make an appropriate negative statement.
Name Age
Family
relationship with
any director,
chief executive
officer and / or
substantial
shareholder
Current position and
duties, and the year the
position was held
Details of
changes in
duties and
position held,
if any, during
the year
Zhong Sheng Jian 57 Uncle of Zhong
Siliang, Executive
Director of the
Company
Yanlord Land Group Limited:
Chairman and Chief
Executive Officer of the
Group since 1993.
Responsible for overall
management and strategy
development of the Group.
Principal Subsidiary:
(i) Nanjing Yanlord Real
Estate Co., Ltd.
Director since 2006.
NA
Zhong Siliang 37 Nephew of Zhong
Sheng Jian,
Chairman and
Chief Executive
Officer of the
Company
Yanlord Land Group Limited:
Executive Director since
2006.
NA
NA: Not applicable
39
YANLORD LAND GROUP LIMITED (Company Reg. No. 200601911K)
ON BEHALF OF THE BOARD
Zhong Sheng Jian
Chairman and Chief Executive Officer
25 February 2015