XI'AN, China, May 15, 2015 /PRNewswire/ -- China Housing & Land Development, Inc. ("China Housing" or the "Company"; NASDAQ: CHLN) today announced its financial results for the quarter ended March 31, 2015.
Highlights for Q1 2015:
Mr. Pingji Lu, China Housing's Chairman, commented, "The market environment for the 2015 first quarter remained challenging. While our contract sales exceeded our quarterly forecast primarily due to an increase in GFA sales, our profitability was impacted as we lowered prices. Based on first quarter 2015 data from E-house, GFA sales in Xi'an decreased 14% over the same period last year and inventory in the Xi'an residential market rose to 36 million square meters from 30 million square meters in the fourth quarter of 2014. It will take time for market conditions to improve particularly as we expect local market competition to remain intense until inventory levels decline. To accelerate cash collection, we launched more housing unit sales promotions and sold more car parking spaces during the quarter."
"On a macro level, the Chinese government has implemented policies to stabilize the housing sector and support property demand, including lowering the deposit reserve ratio by home buyers and lowering the down payment requirement for second home mortgages. We believe these initiatives will stabilize and instill greater confidence in the market. For the remainder of this year, we will concentrate on reducing our unit inventory at existing projects and driving pre-sales of new projects including Golden Bay, Park Plaza Phase II and Ankang Project Phase II projects, as market conditions improve."
Total revenue in the first quarter of 2015 decreased 47.0% to $23.8 million from $44.9 million in the fourth quarter of 2014 and increased 8.2% from $22.0 million in the first quarter of 2014. Other revenue in the first quarter of 2015 was $3.1 million, compared to $9.1 million in the fourth quarter of 2014 and $6.2 million in the first quarter of 2014.
In the first quarter of 2015, the majority of the Company's real estate revenue came from its Puhua Phase Three and Four projects, Park Plaza and Ankang projects. 2015 firstquarter contract sales totaled $24.4 million compared with $23.8 million in the fourth quarter of 2014 and $19.8 million in the first quarter of 2014. GFA sales were 26,771 sq. meters during the first quarter of 2015, compared with 30,888 sq. meters in the fourth quarter of 2014 and 20,416 sq. meters in the first quarter of 2014. The Company's ASP in the first quarter of 2015 was RMB5,747, compared with RMB4,736 in the fourth quarter of 2014, and RMB5,919 in the first quarter of 2014.
Gross profit for the three months ended March 31, 2015 was $3.9 million, representing an increase of 239% from $(2.8) million in the fourth quarter of 2014 and a decrease of 27.3% from $5.3 million in the first quarter of 2014. Gross profit margin for the three months ended March 31, 2015 was 16.2%, compared to (6.2)% in the fourth quarter of 2014 and the 24.1% in the first quarter of 2014. The year-over-year decrease in gross profit was mainly attributable to the Company's strategy of accelerating cash collection by launching certain sales promotions and sales of car parking spaces, resulting in lower margin than the same period of last year.
SG&A expense was $3.2 million in the first quarter of 2015, compared with $5.6 million in the fourth quarter of 2014 and $4.0 million in the first quarter of 2014. SG&A expense as a percentage of total revenue was 13.6%, compared with 12.5% in the fourth quarter of 2014 and 18.1% in the first quarter of 2014. The year-over-year decrease in SG&A expense was mainly due to headcount reductions at the end of 2014 as well as greater cost control.
Operating loss in the first quarter of 2015 was $464 thousand, compared to an operating loss of $15.7 million in the fourth quarter of 2014, and operating loss of $205 thousand in the first quarter of 2014. The year-over-year decrease in operating income was mainly due to the launch of certain promotions at the Company's projects to accelerate cash flow.
Net loss attributable to the Company in the first quarter of 2015 was $479 thousand, or $(0.07) per diluted share, compared to net loss of $16.1 million, or $(2.31) per diluted share, in the fourth quarter of 2014 and $774 thousand, or $(0.11) per diluted share, in the first quarter of 2014.
Sequential Quarterly Revenue Breakout Comparison
Project |
Q12015 |
Q42014 |
||||||||||||||
Recognized Revenue |
Contract Sales |
GFA Sold |
ASP |
Unsold GFA |
POC |
Recognized Revenue |
Contract Sales |
GFA Sold |
ASP |
|||||||
($) |
($) |
(m2) |
(RMB) |
(m2) |
($) |
($) |
(m2) |
(RMB) |
||||||||
Projects Under Construction |
||||||||||||||||
Park Plaza Phase One |
5,339,926 |
5,006,835 |
4,575 |
6,824 |
25,928 |
99.90% |
5,913,163 |
5,090,548 |
8,843 |
3,538 |
||||||
Puhua Phase Three |
5,892,806 |
5,767,268 |
5,986 |
6,008 |
42,305 |
96.25% |
13,560,028 |
6,442,195 |
7,425 |
5,333 |
||||||
Puhua Phase Two-East Region |
1,761,938 |
1,893,300 |
2,218 |
5,324 |
80,908 |
87.4% |
4,150,988 |
4,994,287 |
5,344 |
5,744 |
||||||
Ankang Phase One |
3,138,004 |
2,604,805 |
4,761 |
3,829 |
43,036 |
92.46% |
11,088,809 |
3,583,725 |
5,525 |
3,987 |
||||||
Puhua Four |
3,588,069 |
7,927,819 |
8,119 |
6,089 |
116,088 |
34.50% |
849,179 |
3,455,283 |
3,443 |
6,168 |
||||||
Projects Completed |
||||||||||||||||
Puhua Phase One |
543,674 |
741,140 |
673 |
6,867 |
9,447 |
100% |
-24,415 |
- |
- |
- |
||||||
Puhua Phase Two-West |
345,935 |
346,234 |
394 |
5,480 |
12,743 |
100% |
160,608 |
160,608 |
205 |
6,168 |
||||||
JunJing III |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
||||||
JunJing II Phase One |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
||||||
JunJing I |
64,143 |
64,143 |
45 |
8,889 |
100% |
226,584 |
226,584 |
246 |
5,655 |
|||||||
Other Projects |
- |
- |
- |
- |
- |
100% |
-154,247 |
-154,247 |
-143 |
6,621 |
||||||
Other Income |
3,147,781 |
- |
- |
- |
- |
- |
9,137,336 |
- |
- |
- |
||||||
Total |
23,822,277 |
24,351,546 |
26,771 |
5,747 |
330,455 |
- |
44,908,033 |
23,798,983 |
30,888 |
4,736 |
||||||
Q-o-Q Change |
-46.95% |
2.32% |
-13.33% |
21.01% |
- |
- |
62.06% |
2.15% |
41.90% |
-28.21% |
||||||
Total debt outstanding as of March 31, 2015 was $296.4 million compared with $323.5 million on December 31, 2014. Net debt outstanding (total debt less cash and restricted cash) as of March 31, 2015 was $198.5 million compared with $199.9 million on December 31, 2014. The Company's net debt as a percentage of total capital (net debt plus shareholders' equity) was 64.2 percent on March 31, 2015 and 64.4 percent on December 31, 2014.
Q12015 |
||
Projects in Planning |
Unsold GFA |
First Pre-sales Scheduled |
(m2) |
||
Golden Bay |
329,508 |
2015Q2 |
Ankang Project-Phase II |
170,851 |
2015Q4 |
Park Plaza- Phase II |
66,155 |
2015Q4 |
Textile City |
630,000 |
2016Q2 |
Total projects in planning |
1,196,514 |
|
Second Quarter 2015 Outlook
Total contract revenue for the second quarter in 2015 is expected to reach $28 million to $32 million, compared with $44.1 million in the second quarter of 2014. The Company is reporting revenues, which are subject to percentage of completion alterations.
Conference Call Information
Management will host a conference call at 8:30 am ET on May 15, 2015. Listeners may access the call by dialing +1-913-312-0718. To listen to the live webcast of the event, please go to http://public.viavid.com/player/index.php?id=114636. Listeners may access the call replay, which will be available through May 22, 2015, by dialing +1-858-384-5517; passcode: 9273758.
About China Housing & Land Development, Inc.
Based in Xi'an, the capital city of China's Shaanxi province, China Housing & Land Development, Inc., is a leading developer of residential and commercial properties in northwest China. China Housing has been engaged in land acquisition, development, and management, including the sales of residential and commercial real estate properties through its wholly-owned subsidiary in China, since 1992.
China Housing & Land Development is the first Chinese real estate development company traded on NASDAQ. The Company's news releases, project information, photographs, and more are available on the internet at www.chldinc.com.
Safe Harbor
This news release may contain forward-looking information about China Housing & Land Development, Inc. which is covered under the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as believe, expect, may, will, should, project, plan, seek, intend, or anticipate or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and China Housing & Land Development's future performance, operations, and products.
Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Actual performance results may vary significantly from expectations and projections. Further information regarding this and other risk factors are contained in China Housing's public filings with the U.S. Securities and Exchange Commission.
All information provided in this news release and in any attachments is as of the date of the release, and the companies do not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
China Housing contacts
Ms. Jing Lu
Chief Operating Officer, Board Secretary, and Investor Relations Officer
+86 29.8258.2639 in Xi'an
jinglu@chldinc.com / English and Chinese
Mr. Bill Zima, ICR
+86 10 6583 7511
William.Zima@icrinc.com
China Housing Investor Relations Department
+1 646.308.1285
CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES |
||||||||
Unaudited Interim Condensed Consolidated Balance Sheets As of March 31, 2015 and December 31, 2014 |
||||||||
March 31, |
December 31, |
|||||||
ASSETS |
||||||||
Cash |
$ |
8,260,186 |
$ |
33,223,127 |
||||
Cash - restricted |
89,709,270 |
90,328,084 |
||||||
Accounts receivable, net of allowance for doubtful accounts of |
23,345,523 |
33,041,324 |
||||||
Other receivables, prepaid expenses and other assets |
10,382,084 |
9,377,150 |
||||||
Real estate held for development or sale |
376,101,436 |
374,083,969 |
||||||
Property and equipment, net |
42,824,394 |
43,383,002 |
||||||
Advance to suppliers |
1,368,742 |
1,033,359 |
||||||
Deposits on land use rights |
16,131,634 |
16,136,415 |
||||||
Intangible assets, net |
23,713,295 |
23,561,951 |
||||||
Goodwill |
1,923,789 |
1,922,053 |
||||||
Deferred financing costs |
169,943 |
438,926 |
||||||
Total assets |
$ |
593,930,296 |
$ |
626,529,360 |
||||
LIABILITIES |
||||||||
Accounts payable |
$ |
61,863,875 |
$ |
75,845,987 |
||||
Advances from customers |
38,654,619 |
35,172,506 |
||||||
Accrued expenses |
23,709,953 |
21,842,922 |
||||||
Income taxes payable |
23,238,664 |
24,280,260 |
||||||
Other taxes payable |
10,920,606 |
9,318,119 |
||||||
Other payables |
14,340,659 |
11,692,913 |
||||||
Loans from employees |
30,258,726 |
29,819,381 |
||||||
Loans payable |
266,184,928 |
293,660,575 |
||||||
Deferred tax liability |
14,121,278 |
14,395,327 |
||||||
Total liabilities |
483,293,308 |
516,027,990 |
||||||
SHAREHOLDERS' EQUITY |
||||||||
Common stock: $0.001 par value, authorized 20,000,000 shares; |
6,960 |
6,960 |
||||||
Additional paid in capital |
52,511,350 |
52,511,350 |
||||||
Statutory reserves |
11,700,198 |
11,700,198 |
||||||
Retained earnings |
23,568,139 |
24,046,686 |
||||||
Accumulated other comprehensive income |
22,850,341 |
22,236,176 |
||||||
Total shareholders' equity |
110,636,988 |
110,501,370 |
||||||
Total liabilities and shareholders' equity |
$ |
593,930,296 |
$ |
626,529,360 |
||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements. |
||||||||
CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES |
|||||
Unaudited Interim Condensed Consolidated Statements of Loss For The Three Months Ended March 31, 2015 and 2014 |
|||||
3 Months |
3 Months |
||||
REVENUES |
|||||
Real estate sales |
$ |
20,674,496 |
$ |
15,806,784 |
|
Other income |
3,147,781 |
6,235,627 |
|||
Total revenues |
23,822,277 |
22,042,411 |
|||
COST OF SALES |
|||||
Cost of real estate sales |
18,224,596 |
12,716,886 |
|||
Cost of other revenue |
1,732,632 |
4,009,457 |
|||
Total cost of revenues |
19,957,228 |
16,726,343 |
|||
Gross margin |
3,865,049 |
5,316,068 |
|||
OPERATING EXPENSES |
|||||
Selling, general, and administrative expenses |
3,249,989 |
3,989,482 |
|||
Stock-based compensation |
- |
132,840 |
|||
Other expenses |
6,204 |
3,907 |
|||
Financing expense |
1,072,822 |
1,394,530 |
|||
Total operating expenses |
4,329,015 |
5,520,759 |
|||
Loss from disposal of property and equipment |
- |
563,710 |
|||
Loss Income before provision for income taxes |
(463,966) |
(768,401) |
|||
Provision for income taxes |
25,720 |
17,036 |
|||
Recovery of deferred taxes |
(11,139) |
(11,384) |
|||
Provision for income taxes |
14,581 |
5,652 |
|||
NET LOSS |
$ |
(478,547) |
$ |
(774,053) |
|
WEIGHTED AVERAGE SHARES |
|||||
Basic |
6,960,145 |
6,903,632 |
|||
Diluted |
6,960,145 |
6,903,632 |
|||
NET LOSS PER SHARE |
|||||
Basic |
$ |
(0.07) |
$ |
(0.11) |
|
Diluted |
$ |
(0.07) |
$ |
(0.11) |
|
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
|
|||||
CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES |
|||||
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income (Loss) For The Three Months Ended March 31, 2015 and 2014
|
|||||
3 Months |
3 Months |
||||
NET LOSS |
$ |
(478,547) |
$ |
(774,053) |
|
OTHER COMPREHENSIVE INCOME |
|||||
Gain (loss) in foreign exchange |
614,165 |
(6,511,663) |
|||
COMPREHENSIVE INCOME (LOSS) |
$ |
135,618 |
$ |
(7,285,716) |
|
The accompanying notes are an integral part of these interim condensed consolidated financial statements. |
|||||
CHINA HOUSING & LAND DEVELOPMENT INC. AND SUBSIDIARIES |
||||||||
Unaudited Interim Condensed Consolidated Statements of Cash Flows For The Three Months Ended March 31, 2015 and 2014
|
||||||||
March 31, |
March 31, |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net loss for the period |
$ |
(478,547) |
$ |
(774,053) |
||||
Adjustments to reconcile net (LOSS) income to cash provided by (used in) operating |
||||||||
Depreciation |
633,935 |
591,907 |
||||||
Stock-based compensation |
- |
132,840 |
||||||
Loss on disposal of property and equipment |
- |
563,710 |
||||||
Amortization of intangible assets |
55,252 |
12,610,339 |
||||||
Recovery of deferred income taxes |
(11,139) |
(11,384) |
||||||
(Increase) decrease in assets: |
||||||||
Accounts receivable |
9,667,917 |
(876,377) |
||||||
Other receivable , prepaid expense, and other assets |
(937,971) |
(1,735,046) |
||||||
Real estate held for development or sale |
(1,569,229) |
(62,583,224) |
||||||
Advances to suppliers |
(332,197) |
(443,760) |
||||||
Deposit on land use right |
19,243 |
30,665,151 |
||||||
Deferred finance costs |
267,795 |
188,146 |
||||||
Increase (decrease) in liabilities: |
||||||||
Accounts payable |
(13,967,221) |
(15,956,843) |
||||||
Advances from customers |
3,429,857 |
5,956,860 |
||||||
Accrued expenses |
1,837,402 |
(1,344,586) |
||||||
Other payables |
2,621,570 |
1,975,624 |
||||||
Income and other taxes payable |
474,679 |
426,456 |
||||||
Net cash provided by (used in) operating activities |
1,711,346 |
(30,614,240) |
||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Purchase of property and equipment |
(140,072) |
(382,635) |
||||||
Net cash used in investing activities |
(140,072) |
(382,635) |
||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Change in restricted cash |
696,255 |
2,871,458 |
||||||
Loans from external parties |
16,452,807 |
24,648,464 |
||||||
Repayment on loans |
(43,938,295) |
(7,374,873) |
||||||
Loans from employees, net |
409,959 |
5,277,131 |
||||||
Purchase of treasury stock |
- |
(318,589) |
||||||
Net cash (used in) provided by financing activities |
(26,379,274) |
25,103,591 |
||||||
DECREASE IN CASH |
(24,808,000) |
(5,893,284) |
||||||
Effects on foreign currency exchange |
(154,941) |
(491,471) |
||||||
CASH, beginning of period |
33,223,127 |
21,320,071 |
||||||
CASH, end of period |
$ |
8,260,186 |
$ |
14,935,316 |
||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
|
||||||||
CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||||||||
Unaudited Interim Condensed Consolidated Statements of Shareholders' Equity As of March 31, 2015 and December 31, 2014 |
|||||||||||||||||||||||||||||||||
Common Stock |
Additional |
Statutory |
Retained |
Accumulated |
|||||||||||||||||||||||||||||
Shares |
Par Value |
Capital |
Reserves |
Earnings |
Income |
Totals |
|||||||||||||||||||||||||||
BALANCE, December 31, 2014 |
6,960,145 |
$ |
6,960 |
$ |
52,511,350 |
$ |
11,700,198 |
$ |
24,046,686 |
$ |
22,236,176 |
$ |
110,501,370 |
||||||||||||||||||||
Net loss for the period |
- |
- |
- |
- |
(478,547) |
- |
(478,547) |
||||||||||||||||||||||||||
Foreign currency translation adjustment |
- |
- |
- |
- |
- |
614,165 |
614,165 |
||||||||||||||||||||||||||
BALANCE, March 31, 2015 |
6,960,145 |
$ |
6,960 |
$ |
52,511,350 |
$ |
11,700,198 |
$ |
23,568,139 |
$ |
22,850,341 |
$ |
110,636,988 |
||||||||||||||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements. |
|||||||||||||||||||||||||||||||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/china-housing--land-development-inc-announces-first-quarter-2015-financial-results-300083658.html