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China Housing & Land Development, Inc. Announces Third Quarter Financial Results

Third Quarter and Recent Highlights:

-- On November 19th Company Signs Letter of Intent with Domestic Chinese Developer, to Sell 25 Acres of Baqiao Property for Approximately $30.0 million in Proceeds resulting in approximately $12.0 million in Net Profit; Validates Value Proposition of remaining 462 acres

-- Company Successfully Completes First Round of Presales on Junjing Garden II Project Yielding $4.0 million in Proceeds

-- New Independent Board Now in Place with Members Bringing Experience in Real Estate, Corporate Governance and Accounting

XI'AN, China, Nov. 19 /Xinhua-PRNewswire-FirstCall/ -- China Housing & Land Development, Inc. "China Housing" (OTC Bulletin Board: CHLN), a leading developer of residential and commercial properties in the city of Xi'an announced today financial results for the third quarter ending September 30, 3007.

Revenue for the third quarter was $6.0 million as compared to $14.2 million for the same period of last year as the Company sold commercial space in its 24G project during the quarter and the remaining residential portion of Junjing Garden I. Third quarter 2007 revenues declined as a result of the Company actively planning for the first land sale in Baqiao while developing and conducting presales for the Company's Junjing Garden II project. The first land sale for Baqiao is expected to happen during fourth quarter 2007 with Junjing Garden II sales expected to be recognized in late 2008. Operating income for the third quarter 2007 was $0.6 million as compared to $3.2 million for the same period of last year due to a $0.4 million non cash expense related to change in fair value of the warrants and $1.0 million in non cash expenses for the accrual of interest related to purchase of New Land. Net income for the third quarter was essentially breakeven or $0.00 per weighted average fully diluted share as compared to $2.0 million or $0.10 per weighted average fully diluted share for the same period last year.

Revenue Contribution by Project:

(All numbers in USD millions)

2007 2006

3Q07 9 months 3Q06 9 months

Tsining - 24G $4.2 $21.8 $5.6 $12.0

Junjing Garden I $1.1 $2.9 $8.0 $36.6

Other Projects $0.6 $1.4 $0.5 $2.0

Total $6.0 $26.2 $14.2 $50.6

For the first nine months of 2007 revenue was $26.3 million as compared to $50.6 million for the same period of last year. Operating income was $4.6 million versus $13.4 million in the year ago period, which included $1.9 million through the first nine months of 2007 of aforementioned non cash charges. Net income declined 71.4 percent to $2.6 million with earnings per weighted average fully diluted share of $0.10 as compared to $8.9 million and $0.48 respectively.

"The sale of the first 25 acres of Baqiao will be one of the most important in the Company's history as it not only validates our go forward strategy but helps to quantify the value of the remaining 462 acres of land," Mr. Lu further commented. "The real estate market in Xi'an continues to be undervalued in comparison to other major metropolitan cities with several large developers targeting the region for future development. By having exclusive access to the next major residential area in Xi'an we have the ability to not only opportunistically sell land to large, established real estate companies but eventually develop our own properties to significantly augment returns."

As of September 30, 2007, the Company had total assets of $122.1 million of which $66.8 million is related to real estate development held for sale or development. Cash and restricted cash at the end of the quarter was $3.8 million which was primarily down from $9.1 million in the second quarter as the Company paid an advance of $8.9 million on land to begin the Company's Junjing Garden II project. The Company has approximately 3.0 million warrants outstanding that would generate over $13.2 million in cash if exercised. At the end of the third quarter the Company had approximately $14.7 million in loans payable outstanding compared to $23.2 million at the end of last year. Accounts receivable were $3.3 million as the Company receives prepayments for sales of properties while incurring minimal bad debt expense. Shareholder's equity increased 160.7 percent from the end of 2006 to $50.1 million.

"Based on this first sales price for Baqiao in excess of $1.2 million per acre combined with our ability to sell more land in 2008 we are extremely well positioned to post another record year of revenues and profits. Additionally, we continue to make tremendous progress as it relates to our Junjing Garden II development. As of mid November we have pre- sold approximately 310 units to special "club members" as part of an initial promotional event bringing in over $4.0 million in initial cash proceeds and a total of over $15 million in revenue once customers pay the remaining outstanding balance which we will then look to record as revenue in the fourth quarter of 2008. Beginning in the first quarter of next year, we expect to officially launch pre-sales for Junjing Garden II by offering over 600 units for sale which will require a customer to pay the full purchase price up front to secure a unit and assuming all units are sold we would expect to receive over $30 million in cash which we would also look to recognize as revenue late in 2008. We look forward to updating investors on our progress as we execute our strategy and capitalize on this significant opportunity," Mr. Lu concluded.

Management is hosting a conference call, which will take place at 4:30 p.m. EDT on Monday November 19, 2007. Interested participants should call +1-866-328-4270 when calling within the United States or +1-480-629-9562 when calling internationally. There will be a playback available until 11:59 p.m. eastern time November 26, 2007. To listen to the playback, please call +1-800-406-7325 when calling within the United States or +1-303-590-3030 when calling internationally. Please use pass code 3805135 for the replay.

This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://viavid.net/dce.aspx?sid=00004873 or at ViaVid's website at http://www.viavid.net. The webcast can be accessed through December 19, 2007.

About China Housing & Land Development

Based in Xi'an, the capital city of Shaanxi province in China, China Housing & Land Development, Inc. is the largest private developer of residential and commercial properties. China Housing has been an independent business since 1992 and became a U.S. public company in 2006.

Cautionary Statement Regarding Forward Looking Information

This Press Release may contain forward-looking information about China Housing & Land Development, which are covered under the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. 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. Actual performance results may vary significantly from expectations and projections. This and other "Risk Factors" contained in China Housing & Land Development, Inc.'s public filings with the SEC.

CHINA HOUSING & LAND DEVELOPMENT INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2007 AND DECEMBER 31, 2006

September 30, December 31,

2007 2006

(Unaudited)

ASSETS

Cash $3,745,870 $379,633

Cash - restricted 49,740 1,108,271

Accounts receivable, net of

allowance for doubtful

accounts of $78,705 and

79,118, respectively 3,306,776 3,070,516

Notes receivable, net 90,317 2,127,271

Real estate

Finished projects 28,118,570 37,247,436

Construction in progress 26,151,798 9,730,650

Total real estate held

for development or

sale 54,270,368 46,978,086

Property and equipment, net 5,611,874 17,701,896

Assets held for sale 12,563,133

Advance to suppliers 8,894,622 493,570

Receivables, deferred

charges and other assets 495,311 986,039

Exclusive development

rights 2,299,359 --

Goodwill 29,916,668 --

Total assets $122,144,038 $72,845,282

LIABILITIES

Accounts payable $6,554,345 $5,324,815

Advances from customers 3,954,755 2,902,426

Accrued expenses 1,221,270 1,738,584

Payable to original

shareholders 22,888,932 5,462,798

Income and other taxes

payable 14,087,158 11,386,169

Other payables 4,323,990 2,572,838

Loans from employees 1,879,208 1,037,842

Loans payable 14,692,676 23,206,852

Warrants liability 2,448,876 --

Total liabilities 72,051,210 53,632,324

SHAREHOLDERS' EQUITY

Common stock: $.001 par

value, authorized

100,000,000 shares

issued and outstanding

30,096,585 and 20,619,223,

respectively 30,096 20,619

Additional paid in capital 28,302,124 7,192,600

Statutory reserves 2,563,796 2,150,138

Retained earnings 16,552,668 14,414,181

Capital contribution

receivable (5,462,798)

Accumulated other

comprehensive income 2,624,891 898,218

Total shareholders'

equity 50,092,828 19,212,958

Total liabilities and

shareholders' equity $122,144,038 $72,845,282

CHINA HOUSING & LAND DEVELOPMENT INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006

Three months ended Nine months ended

September 30 , September 30 ,

2007 2006 2007 2006

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

REVENUE

Sale of

properties $5,700,596 $14,182,007 $24,881,984 $50,421,060

Other income 336,333 50,100 1,369,732 205,941

Total revenue 6,036,929 14,232,107 26,251,716 50,627,001

COSTS AND EXPENSES

Cost of

properties sold 3,019,240 9,765,850 17,585,887 32,109,142

Selling, general

and

administrative

expenses 886,405 1,262,648 2,007,351 4,712,089

Other expense 20,153 91,123 55,832 337,929

Interest expense 985,578 21,287 1,635,677 80,215

Loss-change in

fair value of

warrants 408,261 -- 419,465 --

Total costs

and expense 5,454,209 11,140,908 21,704,212 37,239,375

INCOME BEFORE

PROVISION FOR INCOME

TAXES 582,720 3,091,199 4,547,504 13,387,626

PROVISION FOR INCOME

TAXES 653,957 1,057,370 1,995,359 4,455,191

NET INCOME (71,237) 2,033,829 2,552,145 8,932,435

GAIN (LOSS) ON

FOREIGN EXCHANGE 786,813 195,336 1,745,926 26,815

OTHER COMPREHENSIVE

INCOME $715,576 $2,229,165 $4,298,071 $8,959,250

WEIGHTED AVERAGE

SHARES OUTSTANDING

BASIC 30,090,699 20,474,993 25,723,046 18,539,120

DILUTED 30,257,923 20,474,993 25,838,126 18,536,120

EARNINGS PER SHARE

BASIC $0.00 $0.10 $0.10 $0.48

DILUTED $0.00 $0.10 $0.10 $0.48

Source: China Housing & Land Development, Inc.
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Keywords: Real Estate
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