Mainboard-listed Chinese property developer Yanlord has announced that the net profit for Q1 this year dropped 23 percent on-year to S$18.7 million.
The decline in profit was recorded after a seven-percent decline in revenue on-year to S$173.1 million.
The company said the decrease in Q1 results was largely attributed to a reduction in the gross floor area delivered over the first quarter. It added that the fall in revenue was also impacted by higher expenses.
Yanlord’s selling expenses increased 15 percent to S$5.8 million, as a result of an increase in bonuses and the company’s manpower. Administrative expenses also surged 20 percent to S$19.1 million on account of higher foreign exchange losses.
Looking forward, the company said that near term sentiment in China’s real estate market may be unstable after the government’s recent tightening measures.
However, Yanlord remains confident about the long-term potential of the property sector in China, and is optimistic about the company’s performance relative to the industry trend.