China Housing & Land Development Inc. Announces First Quarter 2015 Financial Results

May 14, 2015, 16:01 ET from China Housing & Land Development Inc.

XI'AN, China, May 14, 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:

  • Total revenue in the first quarter of 2015 was $23.8 million compared to $44.9 million in the fourth quarter of 2014 and $22.0 million in the first quarter of 2014.
  • Total gross floor area ("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.
  • Average residential selling price ("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 was $3.9 million in the first quarter of 2015 compared to $(2.8) million in the fourth quarter of 2014 and $5.3 million in the first quarter of 2014. Gross margin in the first quarter 2015 was 16.2%, compared with (6.2)% in the fourth quarter of 2014 and 24.1% in the first quarter of 2014.
  • SG&A expenses as a percentage of total revenue was 13.6%, compared to 12.5% in the fourth quarter of 2014 and 18.1% in the first quarter of 2014.
  • Operating loss was $464 thousand in the first quarter of 2015 compared to operating loss of $15.7 million in the fourth quarter of 2014, and operating loss of $205 thousand in the first quarter of 2014.
  • 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.

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 Region&New Coast Line

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, 2015

December 31, 2014

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                       $580,450 and $579,926, respectively

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;      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

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 March 31, 2015

3 Months March 31, 2014

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 OUTSTANDING

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 March 31, 2015

3 Months March 31, 2014

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, 2015

March 31, 2014

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 activities:

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 Paid in

Statutory

Retained

Accumulated Other Comprehensive

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.

 

 

 

SOURCE China Housing & Land Development Inc.



RELATED LINKS

http://www.chldinc.com