Yanlord Land Group Limited (Z25.SI) FY2025 Financial Results Analysis

Yanlord Land Group Limited reported its financial results for the full year ended 31 December 2025, reflecting a challenging period for the company and the broader China property sector. Below, we break down the key financial metrics, analyze business trends, and provide actionable insights for investors.

Key Financial Metrics and Performance Comparison

Segment Revenue Analysis

• Property Development: Revenue dropped 68.7% YoY to RMB 9.765 billion (FY2024: RMB 31.243 billion).
• Property Investment & Hotel Operations: Revenue decreased 4.1% YoY to RMB 1.757 billion.
• Property Management: Revenue increased 1.5% YoY to RMB 1.454 billion.
• Others: Revenue declined 26.3% YoY to RMB 1.394 billion.

Historical Performance Trends and Key Observations

• Revenue Collapse but Profit Recovery: Despite a 60.5% YoY revenue decrease, Yanlord managed to reverse a significant FY2024 loss (RMB 3.763 billion) to a profit of RMB 435 million in FY2025, mainly due to improved gross profit margins and lower impairment losses.
• Gross Profit Margin Expansion: Gross profit margin jumped from 9.4% in FY2024 to 27.9% in FY2025, reflecting better cost control, a possible shift in revenue mix, and lower impairment charges.
• Contracted Pre-sales: Contracted pre-sales fell 37.1% YoY to RMB 13.972 billion. The contracted GFA also dropped by 33.0% YoY, signaling continued challenges in the Chinese property market.
• Debt and Liquidity: Total debt remained stable at RMB 23.969 billion, while cash and cash equivalents decreased to RMB 7.296 billion. The net gearing ratio rose slightly to 43.6% from 41.3%.
• No Dividend Disclosure: There was no dividend information provided for either FY2025 or the prior periods.

Exceptional Items and Other Notable Events

• Asset Valuation: The company recorded a fair value loss on investment properties of RMB 130 million in FY2025, a reduction from RMB 222 million in FY2024.
• Impairment Losses: Net impairment losses on financial assets dropped significantly from RMB 2,104 million in FY2024 to RMB 267 million in FY2025.
• Share of Profit from Associates: Contributions from associates surged to RMB 374 million (FY2024: RMB 39 million), indicating improved performance or asset revaluations within its associate companies.
• Share of Profit from Joint Ventures: There was a sharp drop to RMB 89 million (FY2024: RMB 632 million), which may reflect weaker performance or fewer project completions.
• Business Environment Risks: The company explicitly warned about macroeconomic, regulatory, and industry risks, including changes in interest rates, policies, and market conditions.

Property Portfolio and Upcoming Launches

Yanlord holds a diversified portfolio of investment properties and hotels across major Chinese cities and Singapore. Upcoming launches in 1H2026 are focused on new phases of existing projects in cities like Wuxi, Haikou, Nantong, Suzhou, Taicang, Jinan, and more, underpinning future revenue streams albeit in a challenging market.

Chairman’s Statement

No Chairman’s statement was disclosed in the report.

Directors’ Remuneration

No information on directors’ remuneration was disclosed in the report.

Conclusion and Investment Recommendations

Summary:
Yanlord Land Group delivered a remarkable turnaround in profitability despite severe revenue declines, mainly through cost controls, improved gross margins, and lower impairment losses. However, the sharp drop in contracted sales and revenue underscores persistent challenges in the Chinese property sector, and the company’s liquidity position has weakened with lower cash balances and a higher net gearing ratio.

• If you currently hold the stock: Consider holding your position, as the company has demonstrated an ability to restore profitability in a difficult environment. However, remain cautious given ongoing revenue pressures, declining pre-sales, and sector headwinds. Actively monitor liquidity, debt levels, and the progress of upcoming project launches.
• If you do not hold the stock: Exercise caution before initiating a new position. While Yanlord has returned to profit, weak sector fundamentals, falling sales, and the absence of dividend guidance make the stock more suitable for risk-tolerant investors seeking a potential recovery play in Chinese real estate.

Disclaimer:
This analysis is based solely on the information provided in the company’s FY2025 financial report. It does not constitute investment advice. Investors should conduct their own due diligence, consider their own risk tolerance, and consult a qualified financial adviser before making investment decisions.

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