XI'AN, China, August 14, 2015 /PRNewswire/ -- China Housing & Land Development, Inc. ("China Housing" or the "Company") (NASDAQ: CHLN) today announced its financial results for the quarter ended June 30, 2015.
Highlights for Q2 2015:
Mr. Pingji Lu, China Housing's Chairman, commented, "While we were pleased to exceed our revenue guidance forecast in the second quarter, the real estate market in Xi'an remains challenging. There remains a gap in supply versus demand resulting in higher levels of inventory which will take time to work through. To address the current market environment, we increased our promotional efforts in the second quarter as well as concentrated our sales efforts on our enhanced unit offerings. This resulted in higher than forecasted contract sales, more normalized business operations, and better controlled risk for our business in the second quarter."
"We are also encouraged by both national and local government efforts to improve the supply-demand imbalance. Such policies can result in increased purchase activity for our property units over time. Looking at the second half of the year, we plan to actively sell our housing stock and adjust our promotional strategy on a per-project basis to attract greater sales volume. We will also evaluate our new projects under planning to ensure sales can be maximized as overall market conditions improve."
Total revenue in the second quarter of 2015 increased 52.0% to $36.2 million from $23.8 million in the first quarter of 2015 and decreased 17.8% from $44.1 million in the second quarter of 2014. Other revenue in the second quarter of 2015 was $4.2 million, compared to $3.1million in the first quarter of 2015 and $3.3 million in the second quarter of 2014.
In the second quarter of 2015, the majority of the Company's real estate revenue came from its Puhua Phase Two-East Region, Puhua Phase Three and Four projects, Park Plaza and Ankang projects. 2015 second quarter contract sales totaled $33.5 million compared with $24.4 million in the first quarter of 2015 and $31.7 million in the second quarter of 2014. GFA sales were 35,939 sq. meters during the second quarter of 2015, compared with 26,771 sq. meters in the first quarter of 2015 and 30,408 sq. meters in the second quarter of 2014. The Company's ASP in the second quarter of 2015 was RMB6,061, compared with RMB5,747 in the first quarter of 2015, and RMB6,493 in the second quarter of 2014.
Gross profit for the three months ended June 30, 2015 was $4.7 million, representing an increase of 21.1% from $3.9 million in the first quarter of 2015 and an increase of 673% from $(816,509) in the second quarter of 2014. Gross profit margin for the three months ended June 30, 2015 was 12.9%, compared to 16.2% in the first quarter of 2015 and the (1.9)% in the second quarter of 2014. The year-over-year increase in gross profit was mainly attributable to greater residential housing sales at the Company's Puhua Phase Two-East Region and Puhua Phase IV projects, and the increase also was due to the sales of parking lots accounted for a small proportion.
SG&A expense was $3.6 million in the second quarter of 2015, compared with $3.2 million in the first quarter of 2015 and $3.9 million in the second quarter of 2014. SG&A expense as a percentage of total revenue was 10.0%, compared with 13.6% in the first quarter of 2015 and 8.8% in the second quarter of 2014. The year-over-year decrease in SG&A expense was mainly due to decreased revenue.
Operating income in the second quarter of 2015 was $128,519, compared to an operating loss of $464 thousand in the first quarter of 2015, and operating loss of $6.6 million in the second quarter of 2014. The year-over-year increase was mainly due to greater residential housing sales at the Company's Puhua Phase Two-East Region and Puhua Phase IV projects, and the increase also was due to the sales of parking lots accounted for a small proportion.
Net loss attributable to the Company in the second quarter of 2015 was $19.0 million, or $(2.73) per diluted share, compared to net loss of $479 thousand, or $(0.01) per diluted share, in the first quarter of 2015 and $6.8 million, or $(0.98) per diluted share, in the second quarter of 2014. The increase in net loss is due to a decrease in revenue and a $22.3 million impairment of inventory and intangible assets associated with the Company's Textile City project.
Sequential Quarterly Revenue Breakout Comparison
Project |
Q2 2015 |
Q1 2015 |
|||||||||
Recognized Revenue |
Contract Sales |
GFA Sold |
ASP |
Unsold GFA |
POC |
Recognized Revenue |
Contract Sales |
GFA Sold |
ASP |
||
($) |
($) |
(m2) |
(RMB) |
(m2) |
($) |
($) |
(m2) |
(RMB) |
|||
Projects Under Construction |
|||||||||||
Puhua Phase |
10,770,692 |
9,632,045 |
10,792 |
5,537 |
70,116 |
87.8% |
1,761,938 |
1,893,300 |
2,218 |
5,324 |
|
Ankang Phase One |
1,394,097 |
990,860 |
1,625 |
3,782 |
41,411 |
87.9% |
3,138,004 |
2,604,805 |
4,761 |
3,829 |
|
Puhua Four |
7,251,633 |
12,332,569 |
12,405 |
6,167 |
103,683 |
29.8% |
3,588,069 |
7,927,819 |
8,119 |
6,089 |
|
Projects Completed |
|||||||||||
Park Plaza |
5,444,449 |
5,683,765 |
6,547 |
5,385 |
21,703 |
100% |
5,339,926 |
5,006,835 |
4,575 |
6,824 |
|
Puhua Phase |
7,471,772 |
5,162,968 |
4,663 |
6,868 |
37,641 |
100% |
5,892,806 |
5,767,268 |
5,986 |
6,008 |
|
Puhua Phase One |
-605,810 |
-608,810 |
-448 |
8,388 |
9,817 |
100% |
543,674 |
741,140 |
673 |
6,867 |
|
Puhua Phase |
163,556 |
163,556 |
124 |
8,182 |
14,494 |
100% |
345,935 |
346,234 |
394 |
5,480 |
|
JunJing III |
155,565 |
155,565 |
231 |
4,177 |
- |
- |
- |
- |
|||
JunJing II Phase |
- |
- |
- |
- |
|||||||
JunJing I |
64,143 |
64,143 |
45 |
8,889 |
|||||||
Other Projects |
- |
- |
- |
- |
|||||||
Other Income |
4,175,024 |
0 |
0 |
0 |
0 |
3,147,781 |
- |
- |
- |
||
Total |
36,220,978 |
33,512,518 |
35,939 |
6,061 |
299,010 |
86.5% |
23,822,277 |
24,351,546 |
26,771 |
5,747 |
|
Q-o-Q Change |
52.05% |
37.62% |
34.25% |
0.65% |
-9.52% |
- |
-46.95% |
2.32% |
-13.33% |
21.01% |
|
Total debt outstanding as of June 30, 2015 was $286.3 million compared with $323.5 million on December 31, 2014. Net debt outstanding (total debt less cash and restricted cash) as of June 30, 2015 was $190.3 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 67.5 percent on June 30, 2015 and 64.4 percent on December 31, 2014.
Q2 2015 |
||
Projects in Planning |
Unsold GFA |
First Pre-sales Scheduled |
(m2) |
||
Golden Bay |
329,508 |
2015Q3 |
Ankang Project-Phase II |
170,851 |
2016Q4 |
Park Plaza- Phase II |
66,155 |
2016Q2 |
Total projects in planning |
566,514 |
|
Third Quarter 2015 Outlook
Total contract revenue for the third quarter in 2015 is expected to reach $22 million to $30 million, compared with $23.3 million in the third 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 8:00 am ET on August 14, 2015. Listeners may access the call by dialing +1-913-312-1298. To listen to the live webcast of the event, please go to http://public.viavid.com/index.php?id=115880. Listeners may access the call replay, which will be available through August 21, 2015, by dialing +1-858-384-5517; passcode: 9985983.
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
-tables to follow-
CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES |
|||||||
Unaudited Interim Condensed Consolidated Balance Sheets |
|||||||
As of June 30, 2015 and December 31, 2014 |
|||||||
June 30, |
December 31, |
||||||
ASSETS |
|||||||
Cash |
$ |
6,163,180 |
$ |
33,223,127 |
|||
Cash - restricted |
89,901,978 |
90,328,084 |
|||||
Accounts receivable, net of allowance for doubtful accounts of |
17,389,120 |
33,041,324 |
|||||
Other receivables, prepaid expenses and other assets |
11,172,596 |
9,377,150 |
|||||
Real estate held for development or sale |
376,484,943 |
374,083,969 |
|||||
Property and equipment, net |
42,234,117 |
43,383,002 |
|||||
Advance to suppliers |
1,857,487 |
1,033,359 |
|||||
Deposits on land use rights |
16,129,031 |
16,136,415 |
|||||
Intangible assets, net |
8,784,409 |
23,561,951 |
|||||
Goodwill |
1,923,479 |
1,922,053 |
|||||
Deferred financing costs |
- |
438,926 |
|||||
Total assets |
$ |
572,040,340 |
$ |
626,529,360 |
|||
LIABILITIES |
|||||||
Accounts payable |
$ |
64,718,728 |
$ |
75,845,987 |
|||
Advances from customers |
42,135,560 |
35,172,506 |
|||||
Accrued expenses |
26,076,029 |
21,842,922 |
|||||
Income taxes payable |
23,679,325 |
24,280,260 |
|||||
Other taxes payable |
12,102,802 |
9,318,119 |
|||||
Other payables |
14,913,549 |
11,692,913 |
|||||
Loans from employees |
30,763,337 |
29,819,381 |
|||||
Loans payable |
255,572,814 |
293,660,575 |
|||||
Deferred tax liability |
10,392,486 |
14,395,327 |
|||||
Total liabilities |
480,354,630 |
516,027,990 |
|||||
SHAREHOLDERS' EQUITY |
|||||||
Common stock: $0.001 par value, authorized 20,000,000 shares; |
|||||||
Issued 6,960,145 and 6,960,145, respectively |
6,960 |
6,960 |
|||||
Additional paid in capital |
52,511,350 |
52,511,350 |
|||||
Statutory reserves |
11,700,198 |
11,700,198 |
|||||
Retained earnings |
4,590,652 |
24,046,686 |
|||||
Accumulated other comprehensive income |
22,876,550 |
22,236,176 |
|||||
Total shareholders' equity |
91,685,710 |
110,501,370 |
|||||
Total liabilities and shareholders' equity |
$ |
572,040,340 |
$ |
626,529,360 |
|||
CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES |
||||||||
Unaudited Interim Condensed Consolidated Statements of Loss |
||||||||
For The Three and Six Months Ended June 30, 2015 and 2014 |
||||||||
3 Months |
3 Months |
6 Months |
6 Months |
|||||
REVENUES |
||||||||
Real estate sales |
$ 32,045,954 |
$ 40,812,863 |
$ 52,720,450 |
$ 56,619,647 |
||||
Other income |
4,175,024 |
3,254,400 |
7,322,805 |
9,490,027 |
||||
Total revenues |
36,220,978 |
44,067,263 |
60,043,255 |
66,109,674 |
||||
COST OF SALES |
||||||||
Cost of real estate sales |
28,945,151 |
43,491,234 |
47,169,747 |
56,208,120 |
||||
Cost of other revenue |
2,595,234 |
1,392,538 |
4,327,866 |
5,401,995 |
||||
Total cost of revenues |
31,540,385 |
44,883,772 |
51,497,613 |
61,610,115 |
||||
Gross margin |
4,680,593 |
(816,509) |
8,545,642 |
4,499,559 |
||||
OPERATING EXPENSES |
||||||||
Selling, general, and administrative expenses |
3,610,712 |
3,876,829 |
6,860,702 |
7,866,311 |
||||
Stock-based compensation |
- |
1,003,464 |
- |
1,136,304 |
||||
Other expenses |
7,298 |
10,113 |
13,502 |
14,020 |
||||
Financing expense |
934,063 |
939,852 |
2,006,885 |
2,334,382 |
||||
Total operating expenses |
4,552,073 |
5,830,258 |
8,881,089 |
11,351,017 |
||||
Write off of real estate held for development |
7,345,105 |
- |
7,345,105 |
|||||
Write off of Property |
563,710 |
|||||||
Intangible asset impairment |
14,964,476 |
- |
14,964,476 |
- |
||||
Loss before provision for income taxes |
(22,181,061) |
(6,646,767) |
(22,645,028) |
(7,415,168) |
||||
Provision for income taxes |
548,743 |
128,422 |
574,463 |
145,458 |
||||
Recovery of deferred taxes |
(3,752,317) |
(11,148) |
(3,763,456) |
(22,532) |
||||
Provision for income taxes |
(3,203,574) |
117,274 |
(3,188,993) |
122,926 |
||||
NET LOSS |
$ (18,977,487) |
$ (6,764,041) |
$ (19,456,035) |
$ (7,538,094) |
||||
WEIGHTED AVERAGE SHARES OUTSTANDING |
||||||||
Basic |
6,960,145 |
6,899,584 |
6,960,145 |
6,912,195 |
||||
Diluted |
6,960,145 |
6,899,584 |
6,960,145 |
6,912,195 |
||||
NET LOSS PER SHARE |
||||||||
Basic |
$ (2.73) |
$ (0.98) |
$ (2.80) |
$ (1.09) |
||||
Diluted |
$ (2.73) |
$ (0.98) |
$ (2.80) |
$ (1.09) |
||||
CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES |
|||||||||||
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss |
|||||||||||
For The Three and Six Months Ended June 30, 2015 and 2014 |
|||||||||||
3 Months |
3 Months |
6 Months |
6 Months |
||||||||
NET LOSS |
$ |
(18,977,487) |
$ |
(6,764,041) |
$ (19,456,035) |
$ (7,538,094) |
|||||
OTHER COMPREHENSIVE |
|||||||||||
Gain (loss) in foreign exchange |
26,209 |
513,398 |
640,374 |
(5,998,265) |
|||||||
COMPREHENSIVE LOSS |
$ |
(18,951,278) |
$ |
(6,250,643) |
$ (18,815,661) |
$ (13,536,359) |
|||||
CHINA HOUSING & LAND DEVELOPMENT INC. AND SUBSIDIARIES |
||||||||
Unaudited Interim Condensed Consolidated Statements of Cash Flows |
||||||||
For The Six Months Ended June 30, 2015 and 2014 |
||||||||
June 30, |
June 30, |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net loss for the period |
$ |
(19,456,035) |
$ |
(7,538,094) |
||||
Adjustments to reconcile net loss to cash provided by (used in) operating activities: |
||||||||
Depreciation |
1,217,048 |
1,194,943 |
||||||
Write off of real estate held for development |
7,345,105 |
|||||||
Write off of Property |
- |
1,136,304 |
||||||
Loss on disposal of property and equipment |
- |
563,710 |
||||||
Amortization of intangible assets |
110,796 |
17,888,532 |
||||||
Intangible Asset Impairment |
14,964,476 |
- |
||||||
(Increase) decrease in assets: |
||||||||
Accounts receivable |
15,617,483 |
1,065,542 |
||||||
Other receivable, prepaid expense, and other assets |
(1,774,207) |
(2,712,898) |
||||||
Real estate held for development or sale |
(9,358,273) |
(74,720,712) |
||||||
Advances to suppliers |
(836,137) |
(905,607) |
||||||
Deposit on land use right |
19,243 |
41,899,123 |
||||||
Deferred finance costs |
452,867 |
229,850 |
||||||
Recovery of deferred income taxes |
(3,763,456) |
(22,532) |
||||||
Increase (decrease) in liabilities: |
||||||||
Accounts payable |
(11,103,868) |
39,088 |
||||||
Advances from customers |
6,915,233 |
(208,062) |
||||||
Accrued expenses |
4,205,742 |
(510,917) |
||||||
Other payables |
3,196,470 |
2,215,782 |
||||||
Income and other taxes payable |
2,146,689 |
2,177,039 |
||||||
Net cash provided by (used in) operating activities |
9,899,176 |
(18,208,909) |
||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Purchase of property and equipment |
(141,108) |
(8,387,891) |
||||||
Purchase of short-term investment |
- |
(21,537,169) |
||||||
Net cash used in investing activities |
(141,108) |
(29,925,060) |
||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Change in restricted cash |
489,185 |
2,809,595 |
||||||
Loans from banks |
1,612,071 |
38,586,481 |
||||||
Loans from external parties |
47,762,454 |
10,006,351 |
||||||
Repayment on loans |
(87,440,036) |
(21,818,551) |
||||||
Loans from employees, net |
919,187 |
5,756,562 |
||||||
Purchase of treasury stock |
- |
(635,970) |
||||||
Net cash (used in) provided by financing activities |
(36,657,139) |
34,704,468 |
||||||
DECREASE IN CASH |
(26,899,071) |
(13,429,501) |
||||||
Effects on foreign currency exchange |
(160,876) |
(432,904) |
||||||
CASH, beginning of period |
33,223,127 |
21,320,071 |
||||||
CASH, end of period |
$ |
6,163,180 |
$ |
7,457,666 |
||||
CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||||||
Unaudited Interim Condensed Consolidated Statements of Shareholders' Equity |
|||||||||||||||||||||||||||
As of June 30, 2015 and December 31, 2014 |
|||||||||||||||||||||||||||
Common Stock |
Additional |
Statutory |
Retained |
Accumulated |
|||||||||||||||||||||||
Shares |
Par Value |
Capital |
Reserves |
Earnings |
Income |
Totals |
|||||||||||||||||||||
BALANCE, |
6,960,145 |
$ |
6,960 |
$ |
52,511,350 |
$ |
11,700,198 |
$ |
24,046,686 |
$ |
22,236,176 |
$ |
110,501,370 |
||||||||||||||
Net loss for the |
- |
- |
- |
- |
(478,547) |
- |
(478,547) |
||||||||||||||||||||
Foreign currency translation adjustment |
- |
- |
- |
- |
- |
614,165 |
614,165 |
||||||||||||||||||||
BALANCE, |
6,960,145 |
$ |
6,960 |
$ |
52,511,350 |
$ |
11,700,198 |
$ |
23,568,139 |
$ |
22,850,341 |
$ |
110,636,988 |
||||||||||||||
Net loss for the period |
- |
- |
- |
- |
(18,977,487) |
- |
(18,977,487) |
||||||||||||||||||||
Foreign currency translation adjustment |
- |
- |
- |
- |
- |
26,209 |
26,209 |
||||||||||||||||||||
BALANCE, June 30, 2015 |
6,960,145 |
$ |
6,960 |
$ |
52,511,350 |
$ |
11,700,198 |
$ |
4,590,652 |
$ |
22,876,550 |
$ |
91,685,710 |
||||||||||||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/china-housing--land-development-inc-announces-second-quarter-2015-financial-results-300128656.html
