SHENZHEN, China, April 27, 2020 /PRNewswire/ -- Nam
Tai Property Inc. ("Nam Tai" or the "Company") (NYSE Symbol: NTP)
today announced its unaudited results for the first quarter
ended March 31, 2020.
KEY HIGHLIGHTS
(In thousands of US dollars, except per share data,
percentages and as otherwise stated)
|
|
Quarterly
Results
|
|
|
|
|
|
Q1
2020
|
|
|
Q1
2019
|
|
|
YoY(%)(a)
|
|
|
|
Revenue
|
|
$
|
699
|
|
|
$
|
581
|
|
|
|
20.3%
|
|
|
|
Gross
profit
|
|
$
|
82
|
|
|
$
|
345
|
|
|
|
(76.2)%
|
|
|
|
Net loss from
operation
|
|
$
|
(3,722)
|
|
|
$
|
(3,264)
|
|
|
|
—
|
|
|
|
% of
revenue
|
|
|
(532.5)%
|
|
|
|
(561.8)%
|
|
|
|
|
|
|
|
per share
(diluted)
|
|
$
|
(0.10)
|
|
|
$
|
(0.09)
|
|
|
|
—
|
|
|
|
Consolidated net loss
|
|
$
|
(3,175)
|
|
|
$
|
(1,791)
|
|
|
|
—
|
|
|
|
% of
revenue
|
|
|
(454.2)%
|
|
|
|
(308.3)%
|
|
|
|
|
|
|
|
Basic loss per
share
|
|
$
|
(0.08)
|
|
|
$
|
(0.05)
|
|
|
|
—
|
|
|
|
Diluted loss per
share
|
|
$
|
(0.08)
|
|
|
$
|
(0.05)
|
|
|
|
—
|
|
|
|
Weighted average
number of shares ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
38,841
|
|
|
|
38,192
|
|
|
|
|
|
|
|
Diluted
|
|
|
38,841
|
|
|
|
38,192
|
|
|
|
|
|
|
|
|
Notes:
|
(a)
Percentage change is not applicable if either of the two periods
contains a loss or no amount.
|
|
|
Financial
Position
|
|
|
As of March
31,
|
|
|
As of December
31,
|
|
|
As of March
31,
|
|
|
2020
|
|
|
2019
|
|
|
2019
|
Cash and cash
equivalents(a)
|
|
$
|
121,340
|
|
|
$
|
130,218
|
|
|
$
|
85,365
|
Restricted
cash
|
|
$
|
790
|
|
|
$
|
—
|
|
|
$
|
—
|
Short-term bank
deposits(b)
|
|
$
|
4,090
|
|
|
$
|
2,166
|
|
|
$
|
12,273
|
Prepaid expenses and
other receivables
|
|
$
|
26,419
|
|
|
$
|
9,338
|
|
|
$
|
7,615
|
Real estate
properties under development, net
|
|
$
|
262,937
|
|
|
$
|
251,685
|
|
|
$
|
186,457
|
Property, plant and
equipment, net
|
|
$
|
25,290
|
|
|
$
|
25,950
|
|
|
$
|
27,554
|
Right of use
assets
|
|
$
|
9,707
|
|
|
$
|
4,078
|
|
|
$
|
—
|
Deferred income tax
assets
|
|
$
|
2,170
|
|
|
$
|
2,011
|
|
|
$
|
—
|
Total
assets
|
|
$
|
460,557
|
|
|
$
|
430,410
|
|
|
$
|
322,150
|
Accounts
payable
|
|
$
|
36,308
|
|
|
$
|
36,676
|
|
|
$
|
88,551
|
Advance from
customers
|
|
$
|
71,220
|
|
|
$
|
67,642
|
|
|
$
|
—
|
Lease
liabilities
|
|
$
|
9,560
|
|
|
$
|
4,171
|
|
|
$
|
—
|
Long term bank
loans
|
|
$
|
122,137
|
|
|
$
|
95,942
|
|
|
$
|
—
|
Total shareholders'
equity
|
|
$
|
211,614
|
|
|
$
|
214,738
|
|
|
$
|
229,864
|
Total number of
common shares issued
|
|
|
38,935
|
|
|
|
38,632
|
|
|
|
38,193
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
(a)
Cash and cash equivalents include all cash balances and
certificates of deposit having a maturity date of three months or
less upon acquisition.
|
(b)
Short-term bank deposits include all highly liquid investments
with original maturities of greater than three months and less than
12 months and investments that are expected to be realized in cash
in the next 12 months.
|
SUPPLEMENTARY INFORMATION (UNAUDITED) IN
THE FIRST QUARTER OF 2020
Key Highlights of Financial Position
|
|
As
of March 31,
|
|
|
As
of December
31,
|
|
As
of March 31,
|
|
|
|
|
2020
|
|
|
2019
|
|
2019
|
|
|
Ratio of
cash(a) to current
liabilities
|
|
1.07
|
|
|
1.16
|
|
1.06
|
|
|
Current
ratio(b)
|
|
1.34
|
|
|
1.25
|
|
1.15
|
|
|
Debt
ratio(c)
|
|
54.1%
|
|
|
50.1%
|
|
28.7%
|
|
|
Return on
equity
|
|
(6.0)%
|
|
|
(3.0)%
|
|
(3.1)%
|
|
|
Ratio of total
liabilities to total equity
|
|
1.18
|
|
|
1.00
|
|
0.40
|
|
|
|
Notes:
|
(a)
Cash in this financial ratio includes cash, cash equivalents and
short-term bank deposits.
|
(b)
Current ratio is calculated with all current assets divided by
all current liabilities.
|
(c)
Debt ratio is calculated with all total liabilities divided by
total assets.
|
FINANCIAL RESULTS
Revenue
Revenue for the first quarter of 2020 was $0.7 million compared to $0.6 million in the first quarter of 2019.
Revenue for the first quarter of 2020 mainly consisted of rental
income of $0.7 million from existing
factory buildings located on the sites of Inno Valley, Wuxi and the
leased space at Nam Tai - Tang
Xi Technology Park. Revenue for the first quarter of 2019 mainly
consisted of rental income of $0.6
million from the existing factory buildings located on the
sites of Inno Valley and Wuxi.
Gross Profit
Gross profit for the first quarter of 2020 was $0.1 million compared to $0.4 million in the first quarter of 2019. Gross
profit for the first quarter of 2020 mainly consisted of revenue of
$0.7 million, offset by rental cost
of $0.6 million for the period. Gross
profit for the first quarter of 2019 mainly consisted of revenue of
$0.6 million, offset by rental cost
of $0.2 million for the period.
Net Loss from Operations
Net loss from operations for the first quarter of 2020 was
$3.7 million compared to $3.3 million in the first quarter of 2019. Net
loss from operations for the first quarter of 2020 mainly consisted
of general and administrative expenses of $3.0 million and selling and marketing expenses
of $0.8 million, offset in part by
our gross profit of $0.1 million for
the period. Net loss from operations for the first quarter of 2019
mainly consisted of general and administrative expenses of
$2.9 million and selling and
marketing expenses of $0.7 million,
offset in part by our gross profit of $0.3
million for the period.
Consolidated Net Loss
Consolidated net loss for the first quarter of 2020 was
$3.2 million compared to $1.8 million in the first quarter of 2019.
Consolidated net loss for the first quarter of 2020 mainly
consisted of net loss from operations of $3.7 million and other net loss of $0.1 million, offset in part by interest income
of $0.4 million from time deposits
and deferred income tax benefit of $0.2
million. Consolidated net loss for the first quarter of 2019
mainly consisted of a net loss from operations of $3.3 million, offset in part by interest income
of $0.8 million from time deposits
and other net income of $0.6
million.
Cash, Cash Equivalents and Short-term Bank
Deposits
Cash, cash equivalents and short-term bank deposits decreased by
$7.0 million in the first quarter of
2020 from $132.4 million as of
December 31, 2019 to $125.4 million as of March
31, 2020. The decrease was mainly due to payment of
$13.9 million for real estate
properties under development, prepayment of the price of a land
parcel in Dongguan City of $16.9
million, repayment of $7.3
million for bank loan, decrease in accrued expenses
and other payables of 6.8 million and purchase of trading
securities of $2.8 million, which
were offset by proceeds from shares issued for option exercise of
$2.0 million, advance from customers
of $4.6 million and long-term bank
loans of $34.9 million obtained in
2020.
Restricted Cash
Restricted cash increased by $0.8
million in the first quarter of 2020. No Restricted cash
existed at the end of 2019. The increase was mainly due to
$0.8 million pledged deposits at Bank
of China for a loan with the bank.
The deposits are not allowed to be withdrawn until November 2020. No significant risk is expected on
such deposits.
Prepaid Expenses and Other Receivables
Prepaid expenses and other receivables increased by $17.0 million in the first quarter of 2020 from
$9.4 million as of December 31, 2019 to $26.4
million as of March 31, 2020.
The increase mainly consisted of the prepayment of $16.9 million for the price of a land parcel in
Dongguan City.
Real Estate Properties under Development, Net
Real estate properties under development, net increased by
$11.2 million in the first quarter of
2020 from $251.7 million as of
December 31, 2019 to $262.9 million as of March
31, 2020. The increase was due to progress of the
construction of Nam Tai Inno Park and Nam Tai Technology
Center.
Right of use assets
Right of use assets increased by $5.6
million in the first quarter of 2020 from $4.1 million as of December 31, 2019 to $9.7
million as of March 31, 2020.
The increase was mainly due to the recognition of right of use
assets for Nam Tai -
U-Creative Space (Lujiazui), which were $5.8
million, in accordance with Accounting Standards
Codification ("ASC") 842 Leases.
Deferred income tax assets
Deferred income tax assets increased by $0.2 million in the first quarter of 2020 from
$2.0 million as of December 31, 2019 to $2.2
million as of March 31, 2020.
The increase was mainly due to current loss of $0.7 million incurred during the construction of
Nam Tai Technology Center, which is expected to be utilized in the
next five years.
Accounts Payable
Accounts payable decreased by $0.4
million in the first quarter of 2020 from $36.7 million as of December 31, 2019 to $36.3
million as of December 31,
2020. The decrease mainly consisted of payment of
$0.4 million for the completed
construction of both Nam Tai Inno
Park and Nam Tai Technology Center.
Advance from Customers
Advance from customers increased by $3.6
million in the first quarter of 2020 from $67.6 million as of December 31, 2019 to $71.2
million as of March 31, 2020.
The increase was mainly attributed to $4.6
million in prepaid rent received from customers of Nam Tai
Inno Park offset by foreign exchange loss of $1.0 million as a result of depreciation of RMB
against the US dollar in the first quarter of 2020.
Lease liabilities
Lease liabilities increased by $5.4
million in the first quarter of 2020 from $4.2 million as of December 31, 2019 to $9.6
million as of March 31, 2020.
The increase was mainly due to the recognition of lease liabilities
for Nam Tai - U-Creative Space
(Lujiazui), which were $5.6 million,
in accordance with ASC 842 Leases.
Long-term bank loans
Long-term bank loans increased by $26.2
million in the first quarter of 2020 from $95.9 million as of December 31, 2019 to $122.1 million as of March
31, 2020. The increase was mainly due to loans of
$3 million from Bank of China and $15.5
million from Xiamen International Bank for Nam Tai Inno Park, and a loan of $16.4 million from Shenzhen Rural Commercial Bank
for Nam Tai Technology Center, which were offset by repayment of
loan of $7.1 million to Bank of
China and foreign exchange loss of
$1.6 million as a result of
depreciation of RMB against the US dollar in the first quarter of
2020.
Liquidity and Capital Resources
As of March 31, 2020, the Company
had a total cash, cash equivalents and short-term bank deposits of
$125.4 million. As of December 31, 2019, the Company had a total cash,
cash equivalents and short-term bank deposits of $132.4 million.
As of March 31, 2020, the Company
obtained a credit facility of RMB2.2
billion (equivalent to $310.29
million) with RMB931.2 million
(equivalent to $131.3 million)
withdrawn. Zastron Electronic (Shenzhen) Co., Ltd. entered into a project
loan agreement with the Zhuhai Branch of Xiamen International Bank
("Xiamen International Bank") in January
2020 for a loan facility of RMB110
million (equivalent to $15.5
million) with the full balance withdrawn as of March 31, 2020.
According to our project development plan, project investment
for the second quarter of 2020 is estimated to be $16.0 million. The total project investment for
2020 is estimated to be $92.1
million. In 2020, the Company plans to continue to acquire
asset-heavy development projects in the Guangdong-Hong Kong-Macao Greater Bay Area and
other first and second tier cities in China through means including bidding, auction
and listing, merger and acquisition, or urban renewal.
Please see the Company's Condensed Consolidated Statements of
Comprehensive Income for further details. The information contained
herein has also been published on the Company's website at
https://www.namtai.com/quarterly/index.html.
BUSINESS OVERVIEW
Impact of COVID-19
The recent outbreak of the COVID-19 pandemic has not had a
significant impact on our liquidity and financial condition. While
the pandemic continues in China
and around the globe, we will continue to assess its impact on our
business and take necessary actions.
- With respect to business invitation and leasing, the Nam Tai
Inno Park Industrial Showroom was temporarily closed in
February 2020 due to the
pandemic.
- With respect to financial impact, as a socially responsible
company, we have reduced the rent by half for the month of
March 2020 for our tenants that met
certain criteria in the Nam Tai Inno Valley and Nam Tai - Tang Xi Technology Park. Meanwhile, we
also received a rent concession of 50% for the month of
March 2020 from the lessor of Nam Tai
- Tang Xi Technology Park.
- With respect to the construction work, the construction of Nam
Tai Inno Park and Nam Tai Technology Center was suspended in
February 2020. When construction
resumes, we expect to be able to increase its pace so that the
schedules of the projects will not be significantly affected.
During the times of severe outbreak of
the pandemic in China, we attached
great importance to providing employees and tenants with a safe and
sanitary working environment. A series of measures were adopted to
prevent the spread of the pandemic:
- Prompt preparation: we commenced the anti-pandemic work before
the Spring Festival by distributing with masks, hand sanitizers and
disinfecting alcohol. We also disinfected and cleaned public areas
of our office and projects.
- Anti-pandemic plans and crisis management team: the Company has
established a crisis management team and formulated a pandemic
prevention and control plan for each of our projects and has
continuously monitored the status of our projects.
- Active monitoring: we conduct active monitoring in a "24/7 mode
(24 hours on all days of the week)". The monitored data includes
the number of disinfection activities, food deliveries and
personnel travel, etc. In addition, we also conduct strict
inspections on automobiles, drivers and passengers accessing our
parks.
- Cleaning and disinfection: our cleaning staff carries out
disinfection and cleaning in various areas of our premises where
employees may stay or touch, including elevators, door handles,
parking spaces and outdoor green belts, and other public
areas.
Progress of Leasing and Business Invitation
As of March 31, 2020, we
pre-leased or leased a total of approximately 127,625 square meters
in our projects, of which 60.2% of the leased area was in
Shenzhen and 39.8% was in Wuxi.
Given Nam Tai - U-Creative
Space (Lujiazui) was in the early stage of operation, we did not
include the project in the calculation.
|
Leased Area
as of March 31, 2020
|
Shenzhen
|
|
Nam Tai Inno
Park
|
39,954
|
Nam Tai Inno
Valley
|
33,055
|
Nam Tai - Tang Xi Technology
Park
|
3,788
|
Wuxi
|
|
Wuxi
facilities
|
50,828
|
Nam Tai Inno Park continues to be
widely recognized by high-tech enterprise tenants. In March 2020, we signed an industrial R&D space
lease contract with an enterprise tenant in the chip distribution
industry. The tenant, founded in Shenzhen, is expected to move into Nam Tai
Inno Park in the fourth quarter of 2020. By bringing the new
high-tech enterprise tenant to our park, this lease contract
reflects the market's recognition of our project and operational
capabilities, and also strengthens our brand image as a technology
park operator.
Project Construction and Operation Progress
- For Nam Tai Inno Park, we
successfully filed the construction acceptance record in
March 2020, which reflects the
Company's ability to continuously proceed with the development of
our projects even during tough times of the pandemic. It is
expected that some of the industrial office spaces will be put into
use from the second quarter of 2020.
- For Nam Tai Technology Center, we accelerated the construction
progress after resuming the construction in March 2020. At present, the landscape
reconstruction of the exhibition area has been completed with its
fine decoration approaching completion. We are currently carrying
out pile foundation construction. In order to enable stakeholders
who are interested in the project to understand the construction
progress, we plan to upload project pictures regularly under the
"Nam Tai Technology Center" section of our Company's website from
the second quarter of 2020.
- As a technology park operator dedicated to providing
high-quality operation services, we organized an online live
broadcast industrial event with the theme of "how do enterprises
rescue themselves after the pandemic" in February 2020. The invited guest speaker provided
the tenants of Nam Tai Inno Valley and Nam Tai - Tang Xi Technology Park with suggestions
on how to deal with the impact of the COVID-19 pandemic and
strengthen corporate management.
Project Resources
In March 2020, we participated in
the public auction for the land use right of a land parcel in
Machong Town, Dongguan City
("Dongguan Machong Land Parcel") organized by Dongguan Natural
Resources Bureau and Dongguan Public Resources Trading Center. We
successfully won the parcel through bidding over a number of
competing real estate developers. The land parcel covers a capacity
floor area up to 84,408 square meters with a non-capacity area
including 25,863 square meters of parking spaces. As a condition of
acquiring the land parcel, we will need to build a commercial floor
area of 20,000 square meters on the plot at the standard of
roughcast house to be handed over to an institution designated by
the Machong Town Government for free upon completion. We have paid
a deposit of RMB120 million
(equivalent to approximately $16.93
million) on March 17, 2020 and
are expected to settle the remaining land price of RMB585.48 million (equivalent to approximately
$82.58 million) in the second quarter
of 2020. The Dongguan Machong Land Parcel will be developed under
the temporary project name of Nam Tai - Longxi. We believe that the potential
future income and profits of the project will contribute to the
Company's long-term sustainable development needs. Further details
of the project will be disclosed in due course. The development of
the project is of great strategic significance to the Company's
sustainable development as it will help:
- to increase the Company's saleable area and broaden the source
of potential income and profit;
- to diversify the Company's products and optimize the income
structure;
- to strengthen the Company's brand awareness and potential
clientele in the Greater Bay Area; and
- to diversify the Company's access to land resources through the
way of public auction.
Dongguan is one of the fastest
growing cities in the Greater Bay Area. It is located between
Shenzhen and Guangzhou with significant geographical
advantage. According to the Dongguan Statistics Bureau, the GDP of
Machong Town in Dongguan increased
by 7.8% year-on-year in 2018, totaling RMB
26 billion. The average transaction price of local
commercial housing in 2019 was approximately RMB 17,600 per square meter, an increase of 14.7%
year-on-year, according to CRIC Research.
The Dongguan Machong Land Parcel is currently an open space
located in the central area of Machong Town and surrounded by a
beautiful landscape and high-quality supporting facilities. To the
north of the land, we can find the picturesque Machong River and
Xinhua College of Sun Yat-sen University; to the south is the
Machong Avenue; and to the west are Shuixiang Central Hospital and
Nanfeng Times Square. We will build high-quality residential and
commercial properties, and provide potential customers with
high-quality residential and commercial space.
Macro Trend Update
The COVID-19 pandemic in China
has gradually come under control. According to the website of
China's National Health
Commission, as of April 14, 2020,
there were only 1,170 existing confirmed cases of COVID-19
infections in China, which
represented a dramatic reduction from its peak of over 60,000
confirmed cases in mid-March.
China's manufacturing
activities dropped significantly in February
2020 due to the COVID-19 pandemic but recovery was observed
in March 2020. China's official Purchasing Managers' Index
(PMI) fell to 35.7% in February 2020
from 50% in January 2020 but
rebounded to 52% in March 2020,
according to the website of the National Bureau of Statistics. In
addition, as of March 25, 2020, the
resumption rate of large-and-medium-sized enterprises reached 96.6%
in the national procurement manager survey.
China's real estate market has
cooled down in the first quarter of 2020 with its subsequent
development remaining to be seen. From January to February 2020, China's commercial housing sales area was
84.75 million square meters, a decrease of 39.9% year-on-year,
among which the sales area of residential buildings decreased by
39.2% and that of office buildings decreased by 48.4%, according to
the National Bureau of Statistics. The existing floor area of the
office market in Shenzhen expanded
by 1.2% quarter-on-quarter to 7.38 million square meters in the
first quarter of 2020, during which the net absorption floor area
in the city was only 13,000 square meters, according to Savills's
research.
Policy Update
In March 2020, five national
ministries and commissions in China, including the Ministry of Science and
Technology and National Development and Reform Commission, have
jointly issued the "Strengthening 'From 0 to 1' Basic Research Work
Program", in which the concept of "Shenzhen Comprehensive National
Science Center" was first proposed. In April
2020, the Shenzhen Municipal Government issued "Several
Opinions on Supporting Guangming Science City to Build a
World-Class Science City" (the "Several Opinions"), which showed
strong support to Shenzhen's
Guangming Science City for the goal of building a world-class
science city with high standard and high quality and put forward
corresponding policies and measures throughout the entire chain of
technological innovation. The "Several Opinions" proposed that by
2035, Guangming Science City will be developed into the core of a
comprehensive national science center, forming a major
world-leading scientific and technological infrastructure cluster
and cultivating a number of emerging industrial clusters that will
lead to future development. The policies promote the improvement of
urban supporting facilities such as transportation, education,
medical care, and culture, and the development of science and
technology industry in Guangming District, Shenzhen. As certain of our technology parks
are located in Guangming District and other parts of Shenzhen, we will continue to observe the
policy developments and take advantage of the opportunities that
may arise.
In April 2020, in order to
increase the supply of commercial housing in Shenzhen and maintain market stability, the
Shenzhen Housing and Construction Bureau and Shenzhen Planning and
Natural Resources Bureau jointly issued the "Notice on Responding
to New Coronary Pneumonia Epidemic and Promoting Urban Renewal and
Related Work" (the "Notice"). The Notice stipulates that, valid
through December 31, 2020, a
commercial housing project of high-rise buildings with completion
of more than half of the total number of floors is allowed to apply
for pre-sales. This is a relaxation of the requirement of pre-sales
which formerly only could be applied for commercial housing
projects with seven floors or above that have completed at least
two-thirds of the above-ground floors under the "Regulations of
Shenzhen Municipality on the Supervision of the Real Estate
Market".
OPERATING RESULTS
|
As of March 31,
2020
|
|
(in square
meter)
|
Project
Completed
|
-
|
Project Under
Development
|
526,427
|
Project For Future
Development
|
280,471
|
Total
|
806,898
|
Project Portfolio - As of March 31,
2020
Projects
|
|
Nam
Tai
Inno
Park
|
Nam
Tai
Technology
Center
|
Nam
Tai
Inno
Valley
|
Nam
Tai -
Longxi(a)
|
Location
|
|
Shenzhen
|
Shenzhen
|
Shenzhen
|
Dongguan
|
Type(b)
|
|
Office and
Dormitory
|
Office and
Dormitory
|
Office and
Dormitory
|
Residential and
Commercial Property
|
Site Area
(sq.m.)
|
|
103,739
|
22,364
|
22,367
|
33,763
|
Capacity
GFA
|
|
269,159
|
139,746
|
N/A
|
84,408
|
Total GFA
(sq.m.)
|
|
331,832
|
194,595
|
170,200(c)
|
110,271(d)
|
Total GFA
|
Completed
|
|
-
|
-
|
-
|
-
|
Under Development
(sq.m.)
|
|
331,832
|
194,595
|
-
|
-
|
Future Development
(sq. m.)
|
|
-
|
-
|
170,200(c)
|
110,271
|
Interest Attributable
To Us
|
|
100%
|
100%
|
100%
|
100%
|
Address
|
|
Fenghuang Community,
Guangming District, Shenzhen
|
Namtai Road, Baoan
District, Shenzhen
|
Dongtai Village,
Machong Town, Dongguan
|
|
Notes:
|
(a) The relevant
land authority has confirmed our successful bidding of the land
parcel in the auction result pending the land use right transfer
contract expected to be signed with the authority during the
second quarter of 2020.
|
(b) The types of
our projects are based on our planning or certificates issued by
the relevant authority and may be changed subject to the relevant
authority's final approval.
|
(c) The gross floor
area and type assume that we will receive M-0 zoning approval for
the entire Inno Valley site prior to its redevelopment. If we do
not receive the M-0 zoning approval, we will be required to develop
Inno Valley under the M-1 zoning requirement. In that case,
appropriate adjustments to our plan will have to be made. The
existing gross floor area of Inno Valley is 41,927 square
meters. According to "Shenzhen Industrial Block
Range Line Management Measures", the location of Nam Tai Inno
Valley is within the designated industrial block range, within
which the government strictly controls the proportion of M-0 zoning
on industrial land. Therefore, the proportion of M-0 zoning, floor
area ratio and construction area of Inno Valley are subject to the
final approval of the government with uncertainty. We cannot
guarantee that we will be able to develop the Inno Valley according
to the floor area currently disclosed.
|
(d) The above
figures are subject to adjustment upon the final approval of the
relevant authority.
|
Properties Under Development
The table below sets forth certain information of our property
projects under development as of March 31,
2020, comprising properties under development with the land
use right certificate and construction permits obtained but the
construction work not completed.
Project
|
|
Nam Tai
Inno Park
|
|
Nam Tai Technology
Center
|
City
|
|
Shenzhen
|
|
Shenzhen
|
(Estimated) Total GFA
(sq. m.)
|
|
331,832
|
|
194,595
|
(Estimated) Leasable
GFA (sq. m.)
|
|
265,000
|
|
-
|
(Estimated) Saleable
GFA (sq. m.)
|
|
-
|
|
125,572
|
Commencement Time of
Main Structure
|
|
June 2018
|
|
July
2019
|
Status of Pre-sale
Permit
|
|
Not
eligible
|
|
To be
obtained
|
Estimated Completion
Time
|
|
2020 Q4
|
|
2022 Q1
|
Interest Attributable
to Us
|
|
100%
|
|
100%
|
Properties for Future Development
The table below sets forth certain information of our property
projects held for future development as of March 31, 2020, comprising properties for which
we have obtained the land use right certificate while the
construction work commencement permit of main structure is not yet
obtained, or the relevant land authority has confirmed our
successful bidding in a public auction.
Project
|
|
Nam Tai
Inno Valley
|
Nam Tai - Longxi
|
Location
|
|
Shenzhen
|
Dongguan
|
Estimated Total
GFA(1) (sq. m.)
|
|
170,200
|
110,271
|
Estimated Completion
Time
|
|
2025
|
2022
|
|
Note:
|
(1) The estimated
total GFA is based on our planning and is subject to the relevant
authority's final approval.
|
Projects for Operation and Management
The table below sets forth certain information of our projects
leased from third parties for operation and management as of
March 31, 2020.
|
Project
|
Location
|
Contracted
Floor
Area
(sq.
m.)
|
Operation
Model
|
1
|
Nam Tai - Tang Xi
Technology
Park
|
Shenzhen
|
7,500
|
Tenant Recruitment
and
Operation
|
2
|
Nam Tai - U-Creative
Space
(Lujiazui)
|
Shanghai
|
3,981
|
Tenant Recruitment
and
Operation
|
The information contained in, or that can be accessed
through, the website mentioned in this announcement does not form
part of the announcement.
FORWARD-LOOKING STATEMENTS AND FACTORS THAT COULD CAUSE OUR
SHARE PRICE TO DECLINE
Certain statements included in this announcement, 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", "might", "can",
"could", "will", "would", "anticipate", "believe", "continue",
"estimate", "expect", "forecast", "intend", "plan", "seek", or
"timetable". 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 and the industry in which we
operate. These statements are only predictions based on our current
expectations about future events. There are several factors, many
beyond our control, which could cause results to differ materially
from our expectation. These risk factors are described in our
Annual Report on Form 20-F and in our Current Reports filed on Form
6-K from time to time and are incorporated herein by reference. Any
of these factors could, by itself, or together with one or more
other factors, adversely affect our business, results of operations
or financial condition. There may also be other factors currently
unknown to us, or have not been described by us, that could cause
our results to differ from our expectations. Although we believe
the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels 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
announcement; 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
announcement or those that might reflect the occurrence of
unanticipated events.
SCHEDULE FOR RELEASE OF QUARTERLY FINANCIAL RESULTS FOR
2020
Announcements of Financial Results
Quarter
|
|
Date of
release
|
Q1 2020
|
|
April 27, 2020
(Monday)
|
Q2 2020
|
|
July 27, 2020
(Monday)
|
Q3 2020
|
|
November 2, 2020
(Monday)
|
Q4 2020
|
|
February 1, 2021
(Monday)
|
ABOUT NAM TAI PROPERTY INC.
We are a real estate developer and operator, mainly conducting
business in Mainland China. Our main land resources are located in
the Guangdong-Hong Kong-Macao
Greater Bay Area ("Greater Bay Area") and Wuxi, China, of which the three plots in
Shenzhen will be developed into
Nam Tai Inno Park, Nam Tai Technology Center and Nam Tai Inno
Valley technology parks respectively. We plan to build these
technology parks into landmark parks in the region,
and provide high-quality industrial offices, industrial
service spaces and supporting dormitories to the park tenants.
Based on the experience of developing and operating technology
parks and the industrial relationship network accumulated over the
past 40 years, we have also exported the operation mode of
technology parks to other industrial properties, using the
asset-light model to rent industrial properties for repositioning
and business invitation. We will also expand the commercial and
residential property business in China as an auxiliary development strategy for
the Company. As the growth prospects of China maintain, we will actively seize
development opportunities in the Greater Bay Area and other first-
and second-tier cities in China,
and continue to strengthen and expand the business of industrial
real estate, and commercial and residential properties. Nam Tai
Property Inc. is a corporation registered in the British Virgin Islands and listed on the New
York Stock Exchange (Symbol: "NTP"). Please refer to the Nam Tai
website (www.namtai.com) or the SEC website (www.sec.gov) for Nam
Tai press releases and financial statements.
NAM TAI PROPERTY
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
FOR THE PERIODS ENDED
MARCH 31, 2020 AND 2019
|
(In Thousands of US
dollars except share and per share data)
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
Revenue
(1)
|
|
$
|
699
|
|
|
$
|
581
|
|
|
|
Cost of
revenue
|
|
|
(617)
|
|
|
|
(236)
|
|
|
|
Gross
profit
|
|
|
82
|
|
|
|
345
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
(3,003)
|
|
|
|
(2,948)
|
|
|
|
Selling and marketing
expenses
|
|
|
(801)
|
|
|
|
(661)
|
|
|
|
|
|
|
(3,804)
|
|
|
|
(3,609)
|
|
|
|
Net loss from
operations
|
|
|
(3,722)
|
|
|
|
(3,264)
|
|
|
|
Other (expenses)
income, net (2)
|
|
|
(57)
|
|
|
|
639
|
|
|
|
Interest
income
|
|
|
411
|
|
|
|
834
|
|
|
|
Loss before
income tax
|
|
|
(3,368)
|
|
|
|
(1,791)
|
|
|
|
Deferred income tax
benefit
|
|
|
193
|
|
|
|
—
|
|
|
|
Consolidated net
loss
|
|
|
(3,175)
|
|
|
|
(1,791)
|
|
|
|
Other comprehensive
(loss) income(3)
|
|
|
(2,737)
|
|
|
|
3,601
|
|
|
|
Functional currency
translation adjustment
|
|
|
(2,737)
|
|
|
|
3,601
|
|
|
|
Consolidated
comprehensive (loss) income
|
|
$
|
(5,912)
|
|
|
$
|
1,810
|
|
|
|
Loss Per
Share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.08)
|
|
|
$
|
(0.05)
|
|
|
|
Diluted
|
|
$
|
(0.08)
|
|
|
$
|
(0.05)
|
|
|
|
Weighted average
number of shares ('000)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
38,841
|
|
|
|
38,192
|
|
|
|
Diluted
|
|
|
38,841
|
|
|
|
38,192
|
|
|
|
|
Notes:
|
(1)
The property of Inno Valley at Gushu has
been rented out since July 2019. The property at Wuxi has
been rented to a third party lessee with a term of 12 years
ending in October 2030.
|
(2)
Other income (expenses), net,
includes exchange gains of
$0.1 million and $0.6
million for the three months ended March 31,
2020 and 2019 respectively.
|
(3)
Other comprehensive loss was due to foreign
exchange translation.
|
NAM TAI PROPERTY
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
AS AT MARCH 31, 2020
AND DECEMBER 31, 2019
|
(In Thousands of
US dollars)
|
|
|
|
March
31,
2020
|
|
|
December
31,
2019
|
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents(1)
|
|
$
|
121,340
|
|
|
$
|
130,218
|
|
Restricted
cash
|
|
|
790
|
|
|
|
—
|
|
Short-term bank
deposits(1)
|
|
|
4,090
|
|
|
|
2,166
|
|
Trading
securities
|
|
|
2,726
|
|
|
|
—
|
|
Accounts
receivable
|
|
|
1,039
|
|
|
|
1,032
|
|
Prepaid expenses and
other receivables
|
|
|
26,419
|
|
|
|
9,338
|
|
Total current
assets
|
|
$
|
156,404
|
|
|
$
|
142,754
|
|
Rental
deposits
|
|
|
417
|
|
|
|
243
|
|
Real estate
properties under development, net(2)
|
|
|
262,937
|
|
|
|
251,685
|
|
Property, plant and
equipment, net
|
|
|
25,290
|
|
|
|
25,950
|
|
Right of use
assets
|
|
|
9,707
|
|
|
|
4,078
|
|
Deferred income tax
assets
|
|
|
2,170
|
|
|
|
2,011
|
|
Prepaid
expenses
|
|
|
3,542
|
|
|
|
3,598
|
|
Other
assets
|
|
|
90
|
|
|
|
91
|
|
Total
assets
|
|
$
|
460,557
|
|
|
$
|
430,410
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Short-term bank
loan
|
|
$
|
1,374
|
|
|
$
|
1,410
|
|
Current portion of
long term bank loans
|
|
|
2,901
|
|
|
|
2,081
|
|
Accounts
payable
|
|
|
36,308
|
|
|
|
36,676
|
|
Rental deposits from
customers
|
|
|
363
|
|
|
|
343
|
|
Accrued expenses and
other payables
|
|
|
4,227
|
|
|
|
5,699
|
|
Advance from
customers
|
|
|
71,220
|
|
|
|
67,642
|
|
Current portion of
lease liabilities
|
|
|
604
|
|
|
|
529
|
|
Total current
liabilities
|
|
$
|
116,997
|
|
|
$
|
114,380
|
|
Long term bank
loans
|
|
|
119,236
|
|
|
|
93,861
|
|
Rental deposits from
customers
|
|
|
191
|
|
|
|
178
|
|
Financing lease
payable
|
|
|
21
|
|
|
|
13
|
|
Other payables
|
|
|
3,542
|
|
|
|
3,598
|
|
Noncurrent portion of
lease liabilities
|
|
|
8,956
|
|
|
|
3,642
|
|
Total
liabilities
|
|
$
|
248,943
|
|
|
$
|
215,672
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
Common
shares
|
|
$
|
389
|
|
|
$
|
386
|
|
Additional paid-in
capital
|
|
|
263,080
|
|
|
|
260,295
|
|
Accumulated
losses
|
|
|
(29,695)
|
|
|
|
(26,520)
|
|
Accumulated other
comprehensive loss(3)
|
|
|
(22,160)
|
|
|
|
(19,423)
|
|
Total shareholders'
equity
|
|
$
|
211,614
|
|
|
$
|
214,738
|
|
Total liabilities and
shareholders' equity
|
|
$
|
460,557
|
|
|
$
|
430,410
|
|
|
Notes:
|
(1)
According to the definition of "Balance Sheet" under the
Financial Accounting Standard Board ("FASB") Accounting Standards
Codification ("ASC") 210-10-20, cash equivalents are short-term,
highly liquid investments that are readily convertible to cash.
Only investments with original maturities of three months or less
when purchased would qualify under such definition. Therefore, the
fixed deposits maturing over three months in the amount of
$4.1 million as at March 31, 2020, are
not classified as cash and cash equivalents but separately
disclosed as short-term bank deposits in the balance
sheet.
|
(2)
Capitalization on project investment was $11.2
million for the first quarter of 2020 and
accumulated project investment was $262.9 million as
of March 31, 2020.
|
(3)
Accumulated other comprehensive loss was due to foreign
exchange translation.
|
NAM TAI PROPERTY
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
FOR THE PERIODS ENDED
MARCH 31, 2020 AND 2019
|
(In Thousands of
US dollars)
|
|
|
|
Three months ended
March 31,
|
|
|
|
2020
|
2019
|
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Consolidated net
loss
|
|
$
|
(3,175)
|
|
|
$
|
(1,791)
|
|
|
Adjustments to
reconcile consolidated net loss to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
394
|
|
|
|
430
|
|
|
Amortization of right
of use assets
|
|
|
408
|
|
|
|
—
|
|
|
Unrealized gain of
trading securities
|
|
|
97
|
|
|
|
—
|
|
|
Share-based
compensation expenses
|
|
|
739
|
|
|
|
129
|
|
|
Unrealized exchange
gain
|
|
|
(44)
|
|
|
|
(602)
|
|
|
Deferred
income tax benefit
|
|
|
(159)
|
|
|
|
—
|
|
|
Changes in assets
and liabilities:
|
|
|
|
|
|
|
|
|
|
Increase in accounts
receivable
|
|
|
(7)
|
|
|
|
(165)
|
|
|
Increase in
prepaid expenses and other receivables
|
|
|
(12,080)
|
|
|
|
(1,107)
|
|
|
Increase in
deposit
|
|
|
(174)
|
|
|
|
—
|
|
|
(Decrease) increase in
accrued expenses and other payables
|
|
|
(6,802)
|
|
|
|
248
|
|
|
Decease in lease
liabilities
|
|
|
(654)
|
|
|
|
—
|
|
|
Increase in advance
from customers
|
|
|
4,627
|
|
|
|
—
|
|
|
Increase in rental
deposits from customers
|
|
|
376
|
|
|
|
486
|
|
|
Total
adjustments
|
|
$
|
(13,279)
|
|
|
$
|
(581)
|
|
|
Net cash used in
operating activities
|
|
$
|
(16,454)
|
|
|
$
|
(2,372)
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Payment for real
estate properties under development
|
|
$
|
(13,948)
|
|
|
$
|
(11,916)
|
|
|
Purchase of property,
plant & equipment
|
|
|
(33)
|
|
|
|
(247)
|
|
|
Purchase of trading
securities
|
|
|
(2,823)
|
|
|
|
—
|
|
|
(Increase) decrease in
short-term bank deposits
|
|
|
(1,924)
|
|
|
|
34,679
|
|
|
Net cash (used in)
provided by investing activities
|
|
$
|
(18,728)
|
|
|
$
|
22,516
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Repayment of bank
loans
|
|
|
(7,263)
|
|
|
|
—
|
|
|
Proceeds
from bank loans
|
|
|
34,886
|
|
|
|
—
|
|
|
Proceeds from
shares issued for option exercise
|
|
|
2,049
|
|
|
|
34
|
|
|
Net cash provided
by financing activities
|
|
$
|
29,672
|
|
|
$
|
34
|
|
|
Net (decrease)
increase in cash, cash equivalents and restricted cash
|
|
$
|
(5,510)
|
|
|
$
|
20,178
|
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
|
130,218
|
|
|
|
62,919
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
|
|
(2,578)
|
|
|
|
2,268
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
122,130
|
|
|
$
|
85,365
|
|
|
SUPPLEMENTARY
INFORMATION ON CASH FLOWS
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
121,340
|
|
|
$
|
85,365
|
|
|
Restricted
cash
|
|
$
|
790
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAM TAI PROPERTY
INC.
|
NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
|
FOR THE PERIODS ENDED
MARCH 31, 2020 AND 2019
|
(In Thousands of
US dollars)
|
|
1.
These financial statements, including the consolidated balance
sheet as of December 31, 2019, which was derived from audited
financial statements, do not include all of the information and
notes required by U.S. Generally Accepted Accounting Principles for
complete financial statements and should be read in conjunction
with the consolidated financial statements and accompanying notes
included in the Company's annual report on Form 20-F for the fiscal
year ended December 31, 2019.
|
2. In
the opinion of management, all adjustments (consisting of normal,
recurring adjustments) considered necessary for a fair presentation
have been included. Operating results for the interim periods
presented are not necessarily indicative of the results that may be
expected for the full year ending December 31, 2020.
|
3.
Accumulated other comprehensive loss represents foreign currency
translation adjustments. The consolidated comprehensive loss was
$5.9 million for the three months ended March 31, 2020 and the
consolidated comprehensive income was $1.8 million for the three
months ended March 31, 2019.
|
4. A
summary of the operating income, other (expenses) income, net, net
loss and long-lived assets by geographical areas is as
follows:
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
|
OPERATING INCOME
WITHIN:
|
|
|
|
|
|
|
|
|
|
|
-PRC, excluding Hong
Kong
|
|
$
|
699
|
|
|
$
|
581
|
|
|
|
OTHER (EXPENSES)
INCOME, NET:
|
|
|
|
|
|
|
|
|
|
|
- Gain on exchange
difference
|
|
$
|
44
|
|
|
$
|
602
|
|
|
|
- Others
|
|
|
(101)
|
|
|
|
37
|
|
|
|
Total other
(expenses) income, net
|
|
$
|
(57)
|
|
|
$
|
639
|
|
|
|
NET LOSS FROM
OPERATIONS WITHIN:
|
|
|
|
|
|
|
|
|
|
|
- PRC, excluding Hong
Kong
|
|
$
|
(1,695)
|
|
|
$
|
(1,576)
|
|
|
|
- Hong Kong
|
|
|
(1,480)
|
|
|
|
(215)
|
|
|
|
Total net
loss
|
|
$
|
(3,175)
|
|
|
$
|
(1,791)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2020
|
|
|
December 31, 2019
|
|
LONG-LIVED ASSETS
WITHIN:
|
|
|
|
|
|
|
|
|
- Real estate
properties under development in PRC,
excluding Hong
Kong
|
|
$
|
262,937
|
|
|
$
|
251,685
|
|
- Property, plant and
equipment in PRC, excluding Hong Kong
|
|
|
25,002
|
|
|
|
25,624
|
|
- Hong Kong
|
|
|
288
|
|
|
|
326
|
|
- Right of use assets
in PRC, excluding Hong
Kong
|
|
|
9,297
|
|
|
|
3,597
|
|
- Hong Kong
|
|
|
410
|
|
|
|
481
|
|
Total long-lived
assets
|
|
$
|
297,934
|
|
|
$
|
281,713
|
|
View original
content:http://www.prnewswire.com/news-releases/nam-tai-property-inc-announces-reports-q1-2020-results-301047360.html
SOURCE Nam Tai Property Inc.