Yanlord

Yanlord: 3Q13 net profit slumped 15% to Rmb306.7m despite a 40% surge in revenue to Rmb3.5b, as a result of lower other operating income, which includes fair value gain on assets, foreign exchange gains, interest income, government subsidies, waiver of interest expense and net gain on disposal of available-for-sale investments. In addition, finance cost spiked 22% due to an increase in interest expense incurred on investment properties, as well as the issuance of the Rmb2b 5.375% senior notes in May '13. Yanlord recorded a net debt to equity at 40.2%. The higher top line was largely due to higher achieved ASP arising from the inclusion of Yanlord Sunland Gardens (Phase 1) and higher gfa delivered in the quarter. Group remains confident about the long term potential of the China real estate sector driven by the sustainable development of the economy.