SHENZHEN, China, June 3, 2020 /PRNewswire/ -- Nam Tai Property
Inc. ("Nam Tai" or the "Company") (NYSE Symbol: NTP) is pleased to
report the development achievements and outlook of the Company.
Progress Brought by the New Management Team
Since the appointment of Mr. Ying Chi
Kwok as our Chief Executive Officer in February 2018, the new management team led by Mr.
Kwok has significantly improved the cost controls, development and
construction management, operations, and financing capabilities of
the Company.
1) Stringent cost control: The new management team has
discovered a lot of room for optimization and improvement. After
continuous optimization of the design and strict control of the
development budget, the planned development cost of Nam Tai Inno
Park is now estimated to be around RMB 1.39
billion (approximately $195
million[1]), which is significantly reduced from
the budget of RMB 2.17 billion
(approximately $312
million[2]) disclosed on the 2017 Form 20-F. The
drastic estimated saving of RMB 770
million (approximately $108
million[3]) brings about substantial benefits to
the Company.
2) Recognized development and construction management:
The new management team has attracted and deployed numerous
seasoned engineers and professionals for our construction
management. We have had no significant safety incident on our
sites, and our projects have consistently been constructed on time
and under budget. Nam Tai Inno
Park has even been honored with the "Shenzhen Construction
and Engineering Safety and Civilized Construction Excellence Site
Award for the First Half of 2019" and the "2019 Guangdong Province
Construction Structure Quality Award". In May 2020, we have obtained the Property Ownership
Certificates for the 11 buildings of Nam Tai Inno Park, which are
the prerequisites for leasing registration and delivery that may
facilitate our leasing activities.
3) Strengthened operation structure and systems: The new
management team has reformed the organizational structure for the
core of our property development business with departments covering
design, procurement, cost control, development, construction
management, and sales and marketing. New hardware, software and
reporting systems have also been put in place to strengthen
operation and internal controls.
4) Strengthened financing capabilities: The new
management team has secured financings for Nam Tai Inno Park and Nam Tai Technology Center,
our two major industrial projects under development in Shenzhen, despite industrial land being
generally less preferred by banks than residential and commercial
land. As of December 31, 2019, we
have obtained credit lines totaling approximately RMB 2.2 billion at interest rates of 5.22% to
6.72%, which are lower than the average of non-state owned property
developers in China according to a
research by CRIC .
[1] Exchange rate of
USD 1 to RMB 7.14.
|
[2] Exchange rate of
USD 1 to RMB 6.96.
|
[3] Exchange rate of
USD 1 to RMB 7.14.
|
Corporate Governance
Good corporate governance forms the cornerstone of the Company's
development. The Directors of Nam Tai are renowned experts in their
respective fields with valuable insights and experiences in the
Chinese market. Our Board of Directors is committed to overseeing
and supporting the development of the company for the interests of all shareholders.
Our Board of Directors is composed of a majority of Independent
Directors under the Director Independence Standards set by the New
York Stock Exchange. In addition, all of the three committees of
our Board of Directors are composed entirely of Independent
Directors. You may refer to the annual report in the Form 20-F as
of December 31, 2019 for more
information on our Board of Directors and corporate governance.
We thank the current Board members for their willingness to
serve the Board of the Company, especially the six Independent
Directors. In the three committees of our Board of Directors, our
Independent Directors review and advise on matters such as internal
control, related party transactions, financial reporting, and
corporate governance. Among them, Dr. William Lo, Chairman of our Nomination and
Corporate Governance Committee, is a senior executive of several
corporate and non-profit organizations and also serves as an
independent director of various well-known public companies,
providing to us invaluable corporate governance experience. Other
Independent Directors' profound understandings of China's economy and market, corporate and
organizational management, and financial management also contribute
to the healthy development of the Company.
Capital Expenditures
In the fiercely competitive Chinese real estate market, access
to high-quality land resources is crucial for Nam Tai as a real
estate developer and operator. We have focused on strategic
opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area
(the "Greater Bay Area"). In March 2020, the COVID-19 pandemic showed signs of
slowing down in mainland China,
while local governments were issuing support policies for the real
estate market. After a careful examination of the market and our
resources, we took the opportunity and won a parcel of precious
riverside residential and commercial land (the "Machong
Land") in Machong Town, Dongguan City through a public auction
organized by the local government. The site is strategic to Nam Tai
as it will help us expand to Dongguan, another prosperous city in the
Greater Bay Area, and contribute to our sustainable
development.
With a pleasing waterfront view, convenient transportation
network, a series of good supporting facilities and strong local
demand, the project is expected to become a high-profile project in
Machong, Dongguan. We are in the
process of finalizing our design and development plan for the
project. Further information on the project will be released in due
course.
Capital resources and liquidity are prudently managed at Nam
Tai, particularly during the pandemic. We have to cautiously
conserve cash for uncertainties while safeguarding the development
of the Company. The priority of capital resources will be given to
business operation and project development. We will continue to
comprehensively evaluate our capital allocation strategy on a
regular basis.
Shareholder Communication
We are committed to maintaining transparency and communication
with our shareholders. On quarterly reports, annual reports, other
announcements and the corporate website, we work to keep
shareholders abreast of the latest development of the Company. We
respond to shareholders' inquiries in an active and timely manner,
and arrange meetings and project field visits upon request. We are
always pleased to maintain communications with our
shareholders.
To help investors understand our development plan and project
status, we have disclosed our development strategy and project
portfolio on the annual report in the Form 20-F as of December 31, 2019. We also regularly upload
photos on the site of Nam Tai Inno Park and Nam Tai Technology
Center to our corporate website for our shareholders as the
projects unfold.
We welcome our shareholders to communicate closely with us. If
there is any information about the Company that may be of interest,
please contact our investor relations department or our US investor
relations advisor directly. The email address of our investor
relations department is ir@namtai.com.cn. Our external investor
relations consultant, Mr. Peter
Poulos, could also be reached by phone and email
on +1 646 586-5701 and namtai@hkstrategies.com,
respectively.
Corporate Presentation
The Company will upload a detailed presentation with the subject
"Nam Tai's Corporate Development Achievements and Outlook (2018 to
Present)" on June 4, 2020, which can
be accessed on Investor News – Information and Activities under the
Investor Relations section on our corporate website:
https://www.namtai.com.
Going Forward
The Covid-19 pandemic and international trade disputes have had
impacts on the Chinese and global economies, the operations of many
companies and the stock prices of listed entities. Nevertheless,
with a refined and prudent management approach, our financial
condition has not been materially affected. We believe that as the
economy recovers from the shocks of the pandemic and trade
disputes, well-managed companies with sound operations will be
recognized by the market.
Our new management team has a wealth of experience with the
Chinese real estate market. We have been focusing on unlocking the
value of our projects to create strategic benefits for our
shareholders. Since the second quarter of 2019, we have been able
to secure advance payments from our tenants for a large number of
pre-leased units in Nam Tai Inno Park although the project is still
under construction.
Going forward, we are committed to shape the Company into a
leading industrial ecosystem operator and a respected enterprise.
With these goals in mind, we plan to focus on the sustainable
growth of the Company's intrinsic value. To continuously improve
our performance, we will focus on the following measures:
1) Develop the three existing projects in Shenzhen into high-quality technology parks,
laying a strong foundation for sustainable growth and future
development.
2) Continue to control project and overhead costs.
3) Carefully manage financial resources.
4) Steadily expand our commercial and residential project
portfolio.
5) Replicate our success on industrial properties in other
projects.
6) A differentiated development model within the Greater Bay
Area that sets us apart from other developers while effectively
managing costs and development timelines.
For the details of our development strategy, please refer to the
annual report in the Form 20-F as of December 31, 2019.
Acknowledgement
The steady development of Nam Tai depends on the support from
our stakeholders. We would like to take this opportunity to extend
our sincere gratitude to all shareholders, business partners and
customers of the Company for their trust and support. We will
continue to work to maximize the value and returns for our
shareholders.
Forward-looking Statement
Certain statements included in this letter, 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.
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. 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 tenants. Based on the experience of
developing and operating technology parks and an industrial
relationship network accumulated over the past 40 years, we have
also exported the operation model of technology parks to other
industrial properties. Through an asset-light model, we have leased
industrial properties for repositioning and business invitation. We
will also expand the commercial and residential property business
in China as an auxiliary
development strategy of the Company. As the growth prospects of
China maintain, we shall 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 our
corporate website (www.namtai.com) or the SEC website (www.sec.gov)
for our press releases and financial statements.
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SOURCE Nam Tai Property Inc.