Nam Tai Property Inc. Q1 2014 Results Announcement

SHENZHEN, China, April 28, 2014 /PRNewswire/ -- Nam Tai Property Inc. ("Nam Tai" or the "Company") (NYSE Symbol: NTP) (formerly known as Nam Tai Electronics, Inc. (NYSE Symbol: NTE)) today announced its unaudited results for the first quarter ended March 31, 2014. The Company's original core business of LCM production including Wuxi and Shenzhen operations for the current and prior periods were classified as "discontinued operations" and disclosed in the statement of comprehensive income separately under (loss) income from discontinued operations (net of tax) and not included in the presentation of net sales, gross profit and operating loss that form parts of the operating loss of "continuing operations" and reported as the following:

KEY HIGHLIGHTS

(In thousands of US Dollars, except per share data, percentages and as otherwise stated)

SUPPLEMENTARY INFORMATION (UNAUDITED) IN THE FIRST QUARTER OF 2014

Key Highlights of Financial Position

OPERATING RESULTS

Net sales, gross profit and operating loss for the first quarter of 2014 and the same quarter of 2013 were presented excluding the discontinued operations (Shenzhen and Wuxi facilities). Operating loss for the first quarter of 2014 was $1.8 million, a decrease of $0.2 million, compared to $2.0 million in the first quarter of last year.

With respect to the discontinued operations (Shenzhen and Wuxi facilities), for the first quarter of 2014 and the same period of 2013, the net sales were $50.6 million and $185.2 million, gross profit was $2.5 million and $7.7 million, and operating (loss) income was ($15.6) million and $3.2 million, respectively.

After considering the (loss) income from discontinued operations (net of tax), the net loss in the first quarter of 2014 was $21.6 million, or loss of $0.48 per diluted share, compared to net income of $5.0 million, or earnings of $0.11 per diluted share in the first quarter of last year. The net loss primarily comprised of i) the $18.4 million loss from discontinued operations (net of tax) in the first quarter of 2014 which mainly included impairment loss of $16.7 million on assets (principally consist advanced high-tech production machineries imported from Japan) held for sale derived mainly from the Japanese Yen exchange difference as compared with $3.9 million income in same period of last year, ii) the loss of $3.2 million from continuing operations in the first quarter of 2014 as compared to income of $1.0 million in same period of last year, also mainly due to loss on exchange difference of $4.0 million which resulted from the depreciation of RMB against USD during the first quarter of 2014.

Please see page 6 of the Company's Condensed Consolidated Statements of Comprehensive Income for further details. This information has also been published on the Company's website at http://www.namtai.com/quarterly/quarterly.htm in the quarterly earnings report of Q1 2014 on page 6, Condensed Consolidated Statements of Comprehensive Income.

COMPANY OUTLOOK

Upon the cessation of our original core business of LCM production and the change of name of our Company from Nam Tai Electronics, Inc. (NYSE Symbol: NTE) to Nam Tai Property Inc. (NYSE Symbol: NTP), we have formally transformed our core business from the EMS industry to property development and management as previously announced. In addition, we plan to sell our manufacturing facilities in Wuxi to third parties and sell back the land we acquired in Wuxi to the local government. Currently, we are thoroughly focusing our efforts on developing the two parcels of land in Gushu, Shenzhen, and Guangming, Shenzhen, respectively, by converting these two parcels of land into high-end commercial complexes as previously announced.

We are happy to announce that we have obtained the project initiation approval for the development of phase 1 of Gushu land (which consists approximately half of the entire parcel of land in Gushu) from the land department of the local government and we will continue to apply for all other necessary permits and approvals in due course. We expect that it will take approximately one year for us to obtain all permits and approvals for the commencement of the phase 1 construction. After the completion of phase 1 construction (which is expected to take approximately three years), we intend to apply the necessary permits and approval for the construction of the phase 2 (on the other half of the Gushu land). However, we have not established a definitive timetable yet. For the time being, the property at phase 2 has been rented out to a third party lessee for a term of three years.

Regarding the parcel of land in Guangming, a feasibility study report has been prepared by a professional real estate advisory firm and the report is expected to become available within the next few days on the Company's website for your reference. For this parcel of land, no project initiation approval for the development is required and we are in the process of applying for other necessary permits and approvals.

We are currently recruiting talents and gathering intelligence for our property development projects. In the meantime, we are also collecting all the relevant information and will pass them to our board of directors for their consideration and approval by the end of July 2014. However, there can be no assurance that we will be able to obtain all requisite permits and approvals from relevant government authorities in relation to the redevelopment of the land, or to successfully redevelop the two parcels of land.

Regarding new employee for the new core business:

We have recently appointed an experienced Project Director, Mr. Eddie Tsui, age 40, to be in charge of our property development projects. Eddie is an award winning urban designer and architect, practicing integrated planning, urban design and architectural design, with over 15 years of experience in geographies covering Mainland China, Hong Kong, United States, South East Asia and South Korea.

Eddie was the managing director of the Hong Kong Design Planning and Economics Group of AECOM Technology Corporation (NYSE symbol: ACM) ("AECOM"), leading a team of over 140 staff and focusing on managing and cultivating business through delivery of quality projects, as well as its strategic planning and growth. Before this, he was the managing director for the Guangzhou and Shekou offices responsible for developing AECOM's Southern China business.

Eddie received a master of architecture degree from Harvard University and a bachelor of arts degree from the University of Pennsylvania, Eddie is fluent in English, Mandarin and Cantonese, verbally and in writing. He has also acted as the overseas representative of the People's Political Consultative Committee of Shaoxing City in Zhejiang province since 2003.

The information contained in or that can be accessed through the websites mentioned in this announcement does not form part of this announcement.

PAYMENT OF QUARTERLY DIVIDENDS FOR 2014

As announced on November 4, 2013, the Company has set the payment schedule of quarterly dividends for 2014. The dividend for Q2 2014 was paid on April 17, 2014. The following table updates the previously announced schedule for declaration and payment of quarterly dividends in 2014.

The Company's decision to continue dividend payments in 2014 does not necessarily mean that cash dividend payments will continue thereafter. Whether future dividends after 2014 are to be declared will depend upon Company's future growth and earnings at each relevant period, of which there can be no assurance, and the Company's cash flow needs for business transformation. Accordingly, there can be no assurance that cash dividends on the Company's common shares will be declared beyond those declared for 2014, and we also cannot assure you what the amounts of such dividends will be or whether such dividends, once declared for a specific period, will continue for any future period, or at all.

PROPOSED SCHEDULE OF RELEASE OF QUARTERLY FINANCIAL RESULTS FOR 2014

The following table repeats and updates the previously announced schedule for the announcements of financial results for the year 2014.

ANNUAL GENERAL MEETING

The 2014 Annual General Meeting ("AGM") has been scheduled to be held on Friday, June 6, 2014 at 11:30 a.m. (China Standard Time) at the Company's Shenzhen facility in the location of Namtai Industrial Estate East , 2 Namtai Road, Gushu, Xixiang, Baoan District, Shenzhen, People's Republic of China. More detailed information of the AGM will be disclosed in Proxy Statement which will be released before the end of April 2014.

FORWARD-LOOKING STATEMENTS AND FACTORS THAT COULD CAUSE OUR SHARE PRICE TO DECLINE

Certain statements included in this press release, other than statements of historical fact, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "plan", "seek" or "believe". These forward-looking statements, which are subject to risks, uncertainties, and assumptions, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations about future events. There are important factors that could cause our actual results, level of activity, performance, or achievements to differ materially from the results, level of activities, performance, or achievements expressed or implied by the forward-looking statements, including, but not limited to, delay in the Company's ability to obtain all requisite permits and approvals from relevant government authorities in relation to the redevelopment of two parcels of properties in Gushu, Shenzhen, and Guangming, Shenzhen, respectively, and the successfully redevelopment of the two parcels of properties; the sufficiency of the Company's cash position and other sources of liquidity to fund its property developments; continued inflation and appreciation of the Renminbi against the US dollar; rising labor costs in China and changes in the labor supply and labor relations. In particular, you should consider the risks outlined under the heading "Risk Factors" in our most recent Annual Report on Form 20-F and in our Current Report filed from time to time on Form 6-K. The Company's decision to continue dividend payments in 2014 does not necessarily mean that dividend payments will continue thereafter. Whether future dividends will be declared depend upon the Company's future growth and earnings, of which there can be no assurance, as well as the Company's cash flow needs for further expansion. Accordingly, there can be no assurance that cash dividends on the Company's common shares will be declared beyond those declared for 2014, what amount that dividends may be or whether such dividends, once declared for a specific period, will continue for any future period, or at all. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not rely upon forward-looking statements as predictions of future events. These forward-looking statements apply only as of the date of this press release and the subsequent investors conference call; as such, they should not be unduly relied upon as circumstances change. Except as required by law, we are not obligated, and we undertake no obligation, to release publicly any revisions to these forward-looking statements that might reflect events or circumstance occurring after the date of this release or those that might reflect the occurrence of unanticipated events.

ABOUT NAM TAI PROPERTY INC.

Prior to complete cessation of our electronic manufacturing and design services business in April 2014, we were an electronics manufacturing and design services provider to a select group of the world's leading OEMs of telecommunications, consumer electronic and automotive products. Through our electronics manufacturing services operations, we manufactured electronic components and subassemblies, i.e. LCD modules and FPCAs. These components are used in numerous electronic products, including smartphones, tablets, automotive, laptop computers, digital cameras, electronic toys, handheld video game devices, and entertainment devices. We also manufactured finished products, including mobile phone accessories, home entertainment products and educational products. We assisted our OEM customers in the design and development of their products and furnished full turnkey manufacturing services that utilized advanced manufacturing processes and production technologies.

Upon the cessation of our LCM manufacturing business in April 2014, we have formally transformed our core business from the EMS industry to property development and management. We are thoroughly focusing our efforts on redeveloping two parcels of land in Gushu, Shenzen, and Guangming, Shenzhen, respectively, by converting these two parcels of land into high-end commercial complexes. Subsequently, we believe our principal income will be derived from the rental income from the commercial complexes.

Nam Tai Property, Inc. is a corporation registered in the British Virgin Islands and listed on the New York Stock Exchange (Symbol "NTP"). All the Company's operations are located in the People's Republic of China.