SHENZHEN, China, April 29,
2021 /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, 2021.
KEY HIGHLIGHTS
In the quarter ended March 31,
2021:
- Revenue was $69.0 million in the
first quarter of 2021, an increase of $68.3
million year-on-year.
- Net income from operations was $36.2
million, increased from net loss from operations of
$3.7 million in the first quarter of
2020.
- Consolidated net income was $25.6
million in the first quarter of 2021, increased from
consolidated net loss from operations of $3.2 million in the first quarter of 2020.
- Real estate properties under development, net was $327.4 million as of March
31, 2021, an increase of $15.2
million from the end of 2020.
In addition, as of March 31,
2021:
- The occupancy rate of Nam Tai Inno Park reached 48%, an
increase of five percentage points from the quarter ended
December 31, 2020.
- Approximately 1,100 dormitory units of Nam Tai Inno Park have
been delivered to our tenants.
- The construction of the main structure of Tower C in Nam Tai
Technology Center and the basement work of Nam Tai - Longxi have been completed.
The following tables set forth key highlights of the
financial information for the periods indicated:
(In thousands of US dollars, except per share data,
percentages and as otherwise stated)
|
|
Quarterly
Results
|
|
|
|
|
|
Q1
2021
|
|
|
Q1
2020
|
|
|
YoY(%)(a)
|
|
|
|
Revenue
|
|
$
|
69,047
|
|
|
$
|
699
|
|
|
|
9,778.0%
|
|
|
|
Gross
profit
|
|
$
|
44,970
|
|
|
$
|
82
|
|
|
|
54,741.5%
|
|
|
|
Net income
(loss) from operation
|
|
$
|
36,240
|
|
|
$
|
(3,722)
|
|
|
|
—
|
|
|
|
% of
revenue
|
|
|
52.5%
|
|
|
|
(532.5)%
|
|
|
|
|
|
|
|
per share
(diluted)
|
|
$
|
0.92
|
|
|
$
|
(0.10)
|
|
|
|
—
|
|
|
|
Consolidated net
income (loss)
|
|
$
|
25,631
|
|
|
$
|
(3,175)
|
|
|
|
—
|
|
|
|
% of
revenue
|
|
|
37.1%
|
|
|
|
(454.2)%
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
$
|
0.65
|
|
|
$
|
(0.08)
|
|
|
|
—
|
|
|
|
Diluted earnings
(loss) per share
|
|
$
|
0.65
|
|
|
$
|
(0.08)
|
|
|
|
—
|
|
|
|
Weighted average
number of shares ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
39,198
|
|
|
|
38,841
|
|
|
|
|
|
|
|
Diluted
|
|
|
39,209
|
|
|
|
38,841
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
2020
|
|
|
Cash and cash
equivalents(a)
|
|
$
|
20,642
|
|
|
$
|
60,980
|
|
|
$
|
121,340
|
|
Short term
investments(b)
|
|
$
|
92,399
|
|
|
$
|
150,150
|
|
|
$
|
4,090
|
|
Restricted
cash
|
|
$
|
71,857
|
|
|
$
|
2,065
|
|
|
$
|
790
|
|
Real estate
properties under development, net
|
|
$
|
327,386
|
|
|
$
|
312,185
|
|
|
$
|
262,937
|
|
Real estate
properties held for sales type lease
|
|
$
|
9,266
|
|
|
$
|
31,558
|
|
|
$
|
—
|
|
Real estate
properties held for lease, net
|
|
$
|
90,872
|
|
|
$
|
92,207
|
|
|
$
|
—
|
|
Property, plant and
equipment, net
|
|
$
|
25,870
|
|
|
$
|
26,568
|
|
|
$
|
25,290
|
|
Total
assets
|
|
$
|
664,689
|
|
|
$
|
701,210
|
|
|
$
|
460,557
|
|
Amount due to a
shareholder
|
|
$
|
146,869
|
|
|
$
|
146,869
|
|
|
$
|
—
|
|
Short term bank
loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,374
|
|
Current portion of
long term bank loans
|
|
$
|
120,708
|
|
|
$
|
122,883
|
|
|
$
|
2,901
|
|
Accounts
payable
|
|
$
|
57,073
|
|
|
$
|
61,559
|
|
|
$
|
36,308
|
|
Advance from
customers
|
|
$
|
8,192
|
|
|
$
|
69,722
|
|
|
$
|
71,220
|
|
Long term bank
loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
119,236
|
|
Total shareholders'
equity
|
|
$
|
271,722
|
|
|
$
|
248,828
|
|
|
$
|
211,614
|
|
Total number of
common shares issued
|
|
|
39,198
|
|
|
|
39,198
|
|
|
|
38,935
|
|
Notes:
(a) Cash and cash equivalents include all cash
balances and certificates of deposit having a maturity date of
three months or less when purchased.
(b) Short term investments include
investments with original maturities of three months and less than
12 months and investments that are expected to be realized in cash
in the next 12 months. As of March 31,
2021, the Company had short term investments of $92.4 million, which were from the proceeds of a
private placement completed on October 5,
2020 (the "Private Placement"), investing into a supply
chain fund managed by Credit Suisse with underlying notes insured
by insurance companies with a credit rating of at least A by
Standard & Poor's or A2 by Moody's, which was terminated
subsequently effective as of March 4,
2021 due to some of the fund's assets being subject to
considerable valuation uncertainty and reduced availability of
insurance coverage for new investments. The proceeds of compulsory
redemption in March 2021 will be paid
out by the supply chain fund in several instalments as soon as
practicable until the Company has received the total proceeds from
the compulsory redemption in respect of the fund. As of
April 26, 2021, the Company received
two instalments in aggregate of $68.7
million from the fund.
SUPPLEMENTARY INFORMATION (UNAUDITED) IN
THE FIRST QUARTER OF 2021
Key Highlights of Financial Position
|
|
As
of March 31,
|
|
|
As
of December
31,
|
|
As
of March 31,
|
|
|
|
|
2021
|
|
|
2020
|
|
2020
|
|
|
Current
ratio(a)
|
|
0.91
|
|
|
0.87
|
|
1.34
|
|
|
Debt
ratio(b)
|
|
59.1%
|
|
|
64.5%
|
|
54.1%
|
|
|
Return on
equity(c)
|
|
9.8%
|
|
|
6.8%
|
|
(1.5)%
|
|
|
Ratio of total
liabilities to total equity
|
|
1.45
|
|
|
1.82
|
|
1.18
|
|
|
Notes:
(a) Current ratio is calculated with all current
assets divided by all current liabilities.
(b) Debt ratio is calculated with all total
liabilities divided by total assets.
(c) Return on equity is calculated with
consolidated net income (loss) divided by average of total
shareholders' equity at beginning and end of the period.
FINANCIAL RESULTS
Revenue
Revenue for the first quarter of 2021 was $69.0 million compared to $0.7 million in the first quarter of 2020.
Revenue for the first quarter of 2021 mainly consisted of the sales
type lease income of $66.5 million
and operating lease income of $1.1
million from Nam Tai Inno
Park recognized following the delivery of the dormitory
units, operating lease income of $0.9
million from existing buildings located on the sites of Inno
Valley, Wuxi, Shanghai, and the
leased space at Nam Tai - Tang Xi
Technology Park. 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.
Gross Profit
Gross profit for the first quarter of 2021 was $45.0 million compared to $0.1 million in the first quarter of 2020. Gross
profit for the first quarter of 2021 mainly consisted of revenue of
$69.0 million, offset by cost of
$24.1 million for the period. 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.
Net Income (Loss) from Operations
Net income from operations for the first quarter of 2021 was
$36.2 million compared to net loss
from operations of $3.7 million in
the first quarter of 2020. Net income from operations for the first
quarter of 2021 mainly consisted of gross profit of $45.0 million, offset in part by our general and
administrative expenses of $7.6
million and selling and marketing expenses of $1.1 million for the period. 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. The
increase in general and administrative expenses of $4.6 million in the first quarter of 2021 was
mainly due to the increase in legal, agent and professional
fees.
Consolidated Net Income (Loss)
Consolidated net income for the first quarter of 2021 was
$25.6 million compared to
consolidated net loss of $3.2 million
in the first quarter of 2020. Consolidated net income for the first
quarter of 2021 mainly consisted of net income from operations of
$36.2 million and other net income of
$0.05 million, interest income of
$0.08 million, offset in part by
income tax expenses of $10.7 million.
Consolidated net loss for the first quarter of 2020 mainly
consisted of net loss from operations of $3.7 million and other net expenses of
$0.06 million, offset in part by
interest income of $0.4 million from
time deposits and income tax benefit of $0.2
million.
Cash and Cash Equivalents
Cash and cash equivalents decreased by $40.4 million in the first quarter of 2021 from
$61.0 million as of December 31, 2020 to $20.6
million as of March 31, 2021.
The decrease was primarily attributable to net cash provided by
investing activities of $57.7
million, offset by net cash used in operating activities of
$23.1 million and financing
activities of $1.3 million, an
exchange rate effect of $3.9 million
and the increase in restricted cash of $69.8
million in the first quarter of 2021. The net cash provided
by investing activities was primarily attributable to proceeds from
the redemption of short term investments of $57.7 million in the first quarter of 2021.
Restricted Cash
Restricted cash increased by $69.8
million in the first quarter of 2021 from $2.1 million as of December 31, 2020 to $71.9
million as of March 31, 2021,
as our lending banks have restricted the remittance from the bank
accounts of the subsidiaries of the Company in their banks in
China and an injunctive order was
imposed on the Company by the High Court of Justice of the
British Virgin Islands of the
Eastern Caribbean Supreme Court in March
2021, which has restricted us from dealing with the proceeds
raised from the Private Placement.
Real Estate Properties under Development, Net
Real estate properties under development, net increased by
$15.2 million in the first quarter of
2021 from $312.2 million as of
December 31, 2020 to $327.4 million as of March
31, 2021, primarily attributable to the increase of
$10.6 million for the construction of
Nam Tai Technology Center, $2.9
million for the construction of Nam Tai - Longxi and $1.7
million for the construction of Nam Tai Inno Park.
Real estate properties held for sales type lease
Real estate properties held for sales type lease are stated at
the lower of carrying amounts or fair value less selling costs.
Real estate properties held for sales type lease decreased by
$22.3 million from $31.6 million as of December 31, 2020 to $9.3
million as of March 31, 2021.
The decrease was mainly due to delivery of part of Towers 8, 9 and
10 during the first quarter of 2021.
Real estate properties held for lease, net
Real estate properties held for lease, net are recorded at cost
less accumulated depreciation. Real estate properties held for
lease, net decreased by $1.3 million
from $92.2 million as of December 31, 2020 to $90.9
million as of March 31, 2021,
which was mainly due to depreciation during the first quarter of
2021.
Accounts Payable
Accounts payable decreased by $4.5
million in the first quarter of 2021 from $61.6 million as of December 31, 2020 to $57.1
million as of March 31, 2021.
The decrease was mainly due to the increase of project payable of
$5.4 million and $0.8 million for Nam Tai Technology Center and
Nam Tai - Longxi, and decrease of
project payable of $9.9 million for
Nam Tai Inno Park, and $1.0 million for Shenzhen Kaicheng Architecture
and Decoration Co., Ltd., which is a subsidiary of the Company.
Advance from Customers
Advance from customers decreased by $61.5
million in the first quarter of 2021 from $69.7 million as of December 31, 2020 to $8.2
million as of March 31, 2021.
The decrease was mainly attributed to the recognition of revenue of
$66.5 million from the prepaid rent
for the units delivered to customers of Nam Tai Inno Park during
the period.
Current Portion of Long Term Bank Loans
The current portion of long term bank loans decreased by
$2.2 million in the first quarter of
2021 from $122.9 million as of
December 31, 2020 to $120.7 million as of March
31, 2021, due to $1.3 million
of loan repayments and $0.9 million
of exchange gain in the period. In March
2021, the Company received demand letters from Bank of
China, Bank of Beijing, Industrial Bank, and Xiamen
International Bank (the "Lending Banks"), regarding payment in full
of amounts due under the respective loan agreements with the banks.
Following the demand letters, the Lending Banks have restricted the
remittance from the accounts of the subsidiaries of the Company in
their banks in China. The Company
is negotiating with the Lending Banks. All bank borrowings were
re-classified as current liabilities as of December 31, 2020.
Liquidity and Capital Resources
As of March 31, 2021, the Company
had a total cash and cash equivalents of $20.6 million. As of December 31, 2020, the Company had a total cash
and cash equivalents of $61.0
million.
In 2021, our planned capital expenditures are estimated to be
$138.0 million for the three major
real estate development projects, of which $35.4 million has been allocated for Nam Tai Inno Park, $72.4
million has been allocated for Nam Tai Technology Center and
$30.2 million has been allocated for
Nam Tai - Longxi.
Going Concern
The unaudited consolidated financial information of the Company
for the first quarter of 2021 has been prepared assuming that the
Company will continue as a going concern which contemplates the
realization of assets and the satisfaction of liabilities in the
normal course of business. As of March 31,
2021, the Company had net current liabilities of
$33 million which, among other
conditions and uncertainties, raised substantial doubt about its
ability to continue as a going concern.
In addition to the continuing negotiations with the Lending
Banks and certain other creditors, the Company is evaluating
several methods of financing, such as additional external
financings, acceleration of the leasing of Nam Tai Inno Park, and
presale of Nam Tai Technology Center and Nam Tai - Longxi, failing which rights offering and
project disposal will also be considered. Currently, the Company
intends to raise loans from financial institutions and potential
funders to maintain our normal operations.
However, there are significant uncertainties pertaining to the
governing and management of the Company as a result of the
postponing of a special meeting of shareholders. For more
information, see "Recent Development – Appeal on the Judgement of
the BVI Court". The appropriate course of actions may have to be
decided by the Board and management subsequent to the meeting,
while the current Board and management are committed to taking
actions to preserve the best interests of all shareholders and
explore options that will be able to be considered.
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
Leasing Progress
As of March 31, 2021, we had
leasable area of approximately 365,000 square meters, of which
around 85% was located in Shenzhen
and 15% was located in Wuxi and Shanghai. As of March
31, 2021, the occupancy rate of our Shenzhen projects, including pre-leasing
areas, was approximately 52%, and that of our Wuxi and Shanghai projects was approximately 98%. The
occupancy rate of Nam Tai Inno Park was 48%, an increase of five
percentage points from the quarter ended December 31, 2020.
Projects
|
|
Leasable Area as
of March 31, 2021
|
|
Leased Area as of
March 31, 2021
|
|
Occupancy
Rate
|
|
Shenzhen
|
|
310,193
|
|
|
161,186
|
|
52%
|
|
Nam Tai Inno
Park
|
|
264,337
|
|
|
125,652
|
|
48%
|
|
Nam Tai Inno
Valley
|
|
38,270
|
|
|
30,024
|
|
78%
|
|
Nam Tai - Tang Xi Technology
Park
|
|
7,586
|
|
|
5,510
|
|
73%
|
|
Wuxi &
Shanghai
|
|
54,809
|
|
|
53,851
|
|
98%
|
|
Wuxi
facilities
|
|
50,828
|
|
|
50,828
|
|
100%
|
|
Nam Tai • U-Creative
Space (Lujiazui)
|
|
3,981
|
|
|
3,023
|
|
76%
|
|
Total
|
|
365,002
|
|
|
215,037
|
|
59%
|
|
In January 2021, the inauguration
ceremony of Nam Tai Entrepreneurs Club was successfully held at Nam
Tai Inno Park Industry Service Center. More than 60 entrepreneurs
who settled in Inno Park and officials from Shenzhen Guangming
District Science and Technology Innovation Bureau attended the
event. We established Nam Tai Entrepreneurs Club with the aim to
foster engagement with entrepreneurs and create a resource sharing
platform among the community of entrepreneurs.
Project Construction and Development Progress
- For Nam Tai Inno Park, as of
March 31, 2021, approximately 1,100
dormitory units have been delivered to our tenants. We are working
on interior decoration of the industrial office of Towers 3 and 5.
In the first quarter of 2021, we attracted 27 corporate tenants,
mostly from the health, technology and related industries. The vast
majority of our dormitory units in Inno Park have been delivered to
tenants and our focus will shift to the leasing of industrial
office and commercial spaces which we face fierce competition in
the local market.
- For Nam Tai Technology Center, we have completed the
construction of main structure of Tower C as of March 31, 2021. Currently we are undergoing the
construction of main structures of Towers A, B and D. At present,
we have not met the conditions for applying pre-sale permit for the
project. One of the conditions for applying for the pre-sale permit
is to enter into an industrial supervision agreement with the local
authorities, under which we will be imposed certain performance
indicators such as total investment amount on the Nam Tai
Technology Center, and aggregated output value and tax contribution
attained by the enterprises registered in Nam Tai Technology
Center. There have been differences between the performance
indicators that might be imposed by the local authorities and those
proposed by us. We are in the process of negotiating the
performance indicators with the local authorities, and there is no
assurance that the local authorities will agree to the performance
indicators proposed by us. If we cannot reach an agreement with the
local authorities, we may not be able to obtain the pre-sale permit
and commence pre-sale on time, or at all. Even if we are to enter
into the industrial supervision agreement, failure to comply with
the performance indicators set out in the agreement may result in
substantial penalties and fines imposed by the local authorities.
Any material adverse outcome from the negotiation with the local
authorities may materially and adversely affect our business,
financial condition, results of operations or cash flows. In
addition, due to stressed liquidity condition of the Company, the
construction progress of the project has been adversely affected.
We are in negotiation with the relevant contractors.
- For Nam Tai Inno Valley, we are
still in the process of obtaining approval for our urban renewal
application. Before obtaining the approval from local authorities,
we will continue to lease out the units in Inno Valley in
short-term tenancy. The occupancy rate of Inno Valley was 78% as of
March 31, 2021.
- For Nam Tai - Longxi, as of
March 31, 2021, the basement work has
been completed. We are currently working on the main structure's
construction. Due to stressed liquidity condition of the Company,
the construction progress of the project has been adversely
affected. We are negotiating with the contractors.
Industrial Operation Progress
- In January 2021, "Nam Tai
National High-tech Enterprise Cultivation and Innovation Center"
was established in Nam Tai Inno Park with the objective to
facilitate enterprises to obtain national qualification of high and
new technology enterprise and to support the growth of enterprises
through our comprehensive trainings. In March 2021, we organized the first training
course "Nam Tai National High-tech Enterprise" in which
representatives of the Science and Technology Innovation
Association of Guangming Science City elaborated industrial
development policies of Guangming District and we attracted 12
enterprise tenants to join. In the same month, we held the "Nam Tai
Inno Park Enterprise Talent Fair" to assist the tenants on talent
recruitment.
Real Estate Market Update
In the first quarter of 2021, the supply and demand of
commercial housing in Dongguan hit
a record high in the same period of nearly five years, of which the
supply floor area and transacted floor area reached approximately
1.13 million and 1.42 million square meters, respectively,
representing year-on-year growths of 136% and 118%. The average
transaction price of commercial housing in Dongguan in this period increased by
approximately 26% year-on-year to RMB28,479 per square meter.
RECENT DEVELOPMENTS
Appeal on the Judgment of the BVI Court
On April 7, 2021, we filed an
application to appeal the March 3,
2021 judgment issued by the Eastern Caribbean Supreme Court
in the High Court of Justice in the British Virgin Islands. The judgment held that
the Private Placement previously announced by us on October 5, 2020 was void and should be set aside.
On April 20, 2020, in connection with
our appeal of the judgment, the Eastern
Caribbean Court of Appeal in the British Virgin Islands (the "Court of Appeal")
has granted an order postponing the special meeting of shareholders
previously scheduled for April 26,
2021. The meeting will be rescheduled at a later date to be
determined by the court in due course.
Supply Chain Fund Managed by Credit Suisse
We have placed $150 million out of
the proceeds from the Private Placement to a supply chain fund
managed by Credit Suisse (the "Fund") with the objective of seeking
a stable and enhanced return through an insured cash management
solution. As represented by Credit Suisse, the Fund was a safe
"liquidity management tool" with a weekly redemption feature and
"100% protection on the underlying investments". The underlying
notes were insured by insurance companies with a credit rating of
at least A by Standard & Poor's or A2 by Moody's. In
January 2021, the Company received a
redemption amount of $15 million from
the Fund. Subsequently, the Fund was terminated on March 4, 2021 and is being liquidated due to some
of the Fund's assets being subject to considerable valuation
uncertainty and reduced availability of insurance coverage for new
investments. We have been notified by the Fund that the liquidation
proceeds will be repaid in installments. As of April 26, 2021, we had received two installments
in an aggregate of $68.7 million, or
over 51% of the principal of $135
million, from the Fund.
On April 16, 2021, we sent a
demand letter to Credit Suisse for the remaining repayments and
reserved all our rights to take further legal actions for breach of
duty, misrepresentation and/or mis-selling. On April 19, 2021, we filed complaints to Securities
& Futures Commission of Hong
Kong and Hong Kong Monetary Authority. We are actively
negotiating with Credit Suisse and are committed to act in the best
interest of the Company. There is no assurance that we can fully
recover our principal from the Fund.
Industrial Supervision Agreement of Nam Tai Technology
Center
We are negotiating an industrial supervision agreement with the
local authorities before we can obtain the pre-sale permit for Nam
Tai Technology Center, which includes performance indicators such
as total investment amount on Nam Tai Technology Center, and the
aggregated output value and tax contribution attained by the
enterprises registered in Nam Tai Technology Center. The outcome of
this negotiation is uncertain. For more information, please
see "Business Overview – Project Construction and Development
Progress".
Lawsuit filed by a supplier
On April 26, 2021, one of the
Company's subsidiaries received a writ of summons from the Shenzhen
Guangming District People's Court together with a civil complaint
filed with such court by one of our suppliers, under which the
supplier sought an order requiring us to settle the outstanding
construction fees of around $ 5
million. We are negotiating with the supplier and seeking
legal advice from external counsel.
OPERATING RESULTS
|
|
As of March 31,
2021
|
(By Floor
Area)
|
|
(in square
meter)
|
Projects
Completed
|
|
190,722
|
Projects Under
Development
|
|
450,094
|
Projects For Future
Development
|
|
170,200
|
Total
|
|
811,016
|
Project Portfolio - As of March
31, 2021
Project
|
|
|
Nam
Tai
Inno
Park
|
|
Nam
Tai
Technology
Center
|
|
Nam
Tai
Inno
Valley
|
|
Nam Tai - Longxi
|
City
|
|
|
Shenzhen
|
|
Shenzhen
|
|
Shenzhen
|
|
Dongguan
|
Type(a)
|
|
|
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
|
|
|
265,139
|
|
139,746
|
|
N/A
|
|
84,408
|
Total GFA
(sq.m.)
|
|
|
331,701
|
|
194,595
|
|
170,200(b)
|
|
114,520
|
Total GFA
|
Completed(c)
|
|
|
190,722(d)
|
|
-
|
|
-
|
|
-
|
Under Development
(sq.m.)
|
|
|
140,979
|
|
194,595
|
|
-
|
|
114,520
|
Future Development
(sq. m.)
|
|
|
-
|
|
-
|
|
170,200(b)
|
|
-
|
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 types of our projects are based on our
development plans or certificates issued by the relevant authority
subject to adjustment upon the final approval.
(b) The gross floor area is based on the
assumption 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 requirements. 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, of 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 which is uncertain at this time. We cannot
guarantee that we will be able to develop Inno Valley according to the floor area
currently disclosed.
(c) Properties completed refer to the status
following the completion of the construction of the properties, the
registration of the completion acceptance and the internal
acceptance criteria.
(d) As of March 31,
2021, the construction of Towers 1, 2, 4, 6, 7, 8, 9 and 10
of Nam Tai Inno Park was completed.
Properties Under Development
The table below sets forth certain information of our property
projects under development as of March 31,
2021, comprising properties under development with the
foundation work construction permits obtained but the construction
work was still in progress.
Project
|
|
Nam Tai Inno
Park
|
|
Nam Tai Technology
Center
|
|
Nam Tai - Longxi
|
City
|
|
Shenzhen
|
|
Shenzhen
|
|
Dongguan
|
(Estimated) Total GFA
(sq. m.)
|
|
331,701
|
|
194,595
|
|
114,520
|
(Estimated) Leasable
GFA (sq. m.)
|
|
264,337
|
|
-
|
|
-
|
(Estimated) Saleable
GFA (sq. m.)
|
|
-
|
|
130,166
|
|
64,408(a)
|
Commencement of
Construction
|
|
May 2017
|
|
December
2018
|
|
July 2020
|
Status of Pre-sale
Permit
|
|
Not
eligible
|
|
To be
obtained
|
|
To be
obtained
|
Estimated Completion
Time
|
|
2021
Q2(b)
|
|
2022
|
|
2022
|
Interest Attributable
to Us
|
|
100%
|
|
100%
|
|
100%
|
Notes:
(a) Excluding parking space and construction
area that needs to be handed over to the local government free of
charge. The final floor area is subject to the approval of the
government.
(b) We are working on the interior decoration of
Towers 3 and 5 of Nam Tai Inno Park.
Properties for Future Development
The table below sets forth certain information of our property
projects held for future development as of March 31, 2021, comprising properties for which
we have obtained the land use right certificate and are in the
process of obtaining the foundation work construction permits, or
we have entered into land grant contracts or are in the process of
applying for special planning although the land use right
certificate is not yet obtained.
Project
|
|
Nam Tai Inno
Valley
|
City
|
|
Shenzhen
|
Estimated Total
GFA(1) (sq. m.)
|
|
170,200
|
Estimated Completion
Time
|
|
2025
|
Note:
(1) The figures are subject to adjustment upon
the final approval of the relevant authority.
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, 2021.
|
Project
|
|
Location
|
|
Contracted Floor
Area (sq. m.)
|
|
Operation
Model
|
1
|
Nam Tai - Tang Xi Technology
Park
|
|
Shenzhen
|
|
7,586
|
|
Leasing and
Operation
|
2
|
Nam Tai - U-Creative Space
(Lujiazui)
|
|
Shanghai
|
|
3,981
|
|
Leasing 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
2021
Announcements of Financial Results
Quarter
|
|
Date of
release
|
Q1 2021
|
|
April 29, 2021
(Thursday)
|
Q2 2021
|
|
July 26, 2021
(Monday)
|
Q3 2021
|
|
November 1, 2021
(Monday)
|
Q4 2021
|
|
January 31, 2022
(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 of land in
Shenzhen will be developed into
the technology parks of Nam Tai Inno Park, Nam Tai Technology
Center and Nam Tai Inno Valley. We
plan to build these technology parks into landmark projects 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 of
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 our press releases and financial results.
NAM TAI PROPERTY INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED MARCH 31, 2021
AND 2020
(In Thousands of US dollars except share and per share data)
|
|
Three months ended
March 31,
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
Revenue
|
|
$
|
69,047
|
|
|
$
|
699
|
|
|
|
Cost of
revenue
|
|
|
(24,077)
|
|
|
|
(617)
|
|
|
|
Gross
profit
|
|
|
44,970
|
|
|
|
82
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
(7,587)
|
|
|
|
(3,003)
|
|
|
|
Selling and marketing
expenses
|
|
|
(1,143)
|
|
|
|
(801)
|
|
|
|
Total operating
expenses
|
|
|
(8,730)
|
|
|
|
(3,804)
|
|
|
|
Net income (loss)
from operations
|
|
|
36,240
|
|
|
|
(3,722)
|
|
|
|
Other income
(expenses), net
|
|
|
45
|
|
|
|
(57)
|
|
|
|
Interest
income
|
|
|
81
|
|
|
|
411
|
|
|
|
Income
(loss) before income tax
|
|
|
36,366
|
|
|
|
(3,368)
|
|
|
|
Income tax
(expense) benefit
|
|
|
(10,735)
|
|
|
|
193
|
|
|
|
Consolidated
net income (loss)
|
|
|
25,631
|
|
|
|
(3,175)
|
|
|
|
Other comprehensive
loss (1)
|
|
|
(2,834)
|
|
|
|
(2,737)
|
|
|
|
Functional currency
translation adjustment
|
|
|
(2,834)
|
|
|
|
(2,737)
|
|
|
|
Consolidated
comprehensive income (loss)
|
|
$
|
22,797
|
|
|
$
|
(5,912)
|
|
|
|
Earnings (loss) Per
Share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.65
|
|
|
$
|
(0.08)
|
|
|
|
Diluted
|
|
$
|
0.65
|
|
|
$
|
(0.08)
|
|
|
|
Weighted average
number of shares ('000)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
39,198
|
|
|
|
38,841
|
|
|
|
Diluted
|
|
|
39,209
|
|
|
|
38,841
|
|
|
|
Notes:
(1) Other comprehensive loss (income)
was due to foreign exchange translation.
NAM TAI PROPERTY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS AT MARCH 31, 2021 AND DECEMBER
31, 2020
(In Thousands of US dollars)
|
|
March
31,
2021
|
|
|
December
31,
2020
|
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
20,642
|
|
|
$
|
60,980
|
|
Restricted
cash
|
|
|
71,857
|
|
|
|
2,065
|
|
Short term
investments
|
|
|
92,399
|
|
|
|
150,150
|
|
Rental
deposits
|
|
|
155
|
|
|
|
156
|
|
Accounts
receivable
|
|
|
4,124
|
|
|
|
3,965
|
|
Real estate properties
under development, net
|
|
|
124,598
|
|
|
|
121,693
|
|
Real estate properties
held for sales type lease
|
|
|
9,266
|
|
|
|
31,558
|
|
Prepaid expenses and
other receivables
|
|
|
8,007
|
|
|
|
7,141
|
|
Total current
assets
|
|
$
|
331,048
|
|
|
$
|
377,708
|
|
Rental
deposits
|
|
|
285
|
|
|
|
287
|
|
Real estate
properties under development, net
|
|
|
202,788
|
|
|
|
190,492
|
|
Property, plant and
equipment, net
|
|
|
25,870
|
|
|
|
26,568
|
|
Real estate
properties held for lease, net
|
|
|
90,872
|
|
|
|
92,207
|
|
Right of use
assets
|
|
|
9,316
|
|
|
|
9,695
|
|
Deferred income tax
assets
|
|
|
4,411
|
|
|
|
4,154
|
|
Other
assets
|
|
|
99
|
|
|
|
99
|
|
Total
assets
|
|
$
|
664,689
|
|
|
$
|
701,210
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
long term bank loans
|
|
|
120,708
|
|
|
|
122,883
|
|
Accounts
payable
|
|
|
57,073
|
|
|
|
61,559
|
|
Rental deposits from
customers
|
|
|
2,089
|
|
|
|
1,498
|
|
Accrued expenses and
other payables
|
|
|
28,199
|
|
|
|
30,136
|
|
Advance from
customers
|
|
|
8,192
|
|
|
|
69,722
|
|
Amount due to a
shareholder
|
|
|
146,869
|
|
|
|
146,869
|
|
Amount due to a
related company
|
|
|
161
|
|
|
|
161
|
|
Current portion of
lease liabilities
|
|
|
970
|
|
|
|
1,064
|
|
Total current
liabilities
|
|
$
|
364,261
|
|
|
$
|
433,892
|
|
Long term rental
deposits
|
|
|
185
|
|
|
|
300
|
|
Financing lease
payable
|
|
|
19
|
|
|
|
19
|
|
Deferred income tax
liabilities
|
|
|
19,779
|
|
|
|
8,927
|
|
Noncurrent portion of
lease liabilities
|
|
|
8,723
|
|
|
|
9,244
|
|
Total
liabilities
|
|
$
|
392,967
|
|
|
$
|
452,382
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
Common
shares
|
|
$
|
392
|
|
|
$
|
392
|
|
Additional paid-in
capital
|
|
|
265,181
|
|
|
|
265,084
|
|
Retained earnings
(accumulated deficit)
|
|
|
14,809
|
|
|
|
(10,822)
|
|
Accumulated other
comprehensive loss (1)
|
|
|
(8,660)
|
|
|
|
(5,826)
|
|
Total shareholders'
equity
|
|
$
|
271,722
|
|
|
$
|
248,828
|
|
Total liabilities and
shareholders' equity
|
|
$
|
664,689
|
|
|
$
|
701,210
|
|
Notes:
(1) 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, 2021 AND 2020
(In Thousands of US dollars)
|
|
Three months ended
March 31,
|
|
|
|
2021
|
|
2020
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Consolidated net
income (loss)
|
|
$
|
25,631
|
|
|
$
|
(3,175)
|
|
|
|
Adjustments to
reconcile consolidated net loss to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,085
|
|
|
|
394
|
|
|
|
Amortization of right
of use assets
|
|
|
466
|
|
|
|
408
|
|
|
|
Unrealized gain of
trading securities
|
|
|
—
|
|
|
|
97
|
|
|
|
Share-based
compensation expenses
|
|
|
97
|
|
|
|
739
|
|
|
|
Unrealized exchange
loss (gain)
|
|
|
649
|
|
|
|
(44)
|
|
|
|
Deferred
income tax benefit
|
|
|
10,595
|
|
|
|
(159)
|
|
|
|
Changes in assets
and liabilities:
|
|
|
|
|
|
|
|
|
|
|
Increase in accounts
receivable
|
|
|
(159)
|
|
|
|
(7)
|
|
|
|
Increase in
prepaid expenses and other receivables
|
|
|
(866)
|
|
|
|
(12,080)
|
|
|
|
Increase in
deposit
|
|
|
—
|
|
|
|
(174)
|
|
|
|
Decrease (increase) in
real estate properties under development
|
|
|
7,617
|
|
|
|
(13,948)
|
|
|
|
(Decrease) increase in
accrued expenses and other payables
|
|
|
(2,288)
|
|
|
|
(6,802)
|
|
|
|
Decrease in accounts
payable
|
|
|
(4,486)
|
|
|
|
—
|
|
|
|
Decrease in lease
liabilities
|
|
|
(351)
|
|
|
|
(654)
|
|
|
|
(Decrease) increase in
advance from customers
|
|
|
(61,530)
|
|
|
|
4,627
|
|
|
|
Increase in rental
deposits from customers
|
|
|
476
|
|
|
|
376
|
|
|
|
Total
adjustments
|
|
$
|
(48,695)
|
|
|
$
|
(27,227)
|
|
|
|
Net cash used in
operating activities
|
|
$
|
(23,064)
|
|
|
$
|
(30,402)
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Purchase of property,
plant & equipment
|
|
|
(84)
|
|
|
|
(33)
|
|
|
|
Purchase of trading
securities
|
|
|
—
|
|
|
|
(2,823)
|
|
|
|
Decrease (increase) in
short term investments
|
|
|
57,751
|
|
|
|
(1,924)
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
$
|
57,667
|
|
|
$
|
(4,780)
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Repayment of bank
loans
|
|
|
(1,267)
|
|
|
|
(7,263)
|
|
|
|
Proceeds
from bank loans
|
|
|
—
|
|
|
|
34,886
|
|
|
|
Proceeds from
shares issued for option exercise
|
|
|
—
|
|
|
|
2,049
|
|
|
|
Net cash (used in)
provided by financing activities
|
|
$
|
(1,267)
|
|
|
$
|
29,672
|
|
|
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash
|
|
$
|
33,336
|
|
|
$
|
(5,510)
|
|
|
|
Cash and cash
equivalents and restricted cash at beginning of period
|
|
|
63,045
|
|
|
|
130,218
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents and restricted
cash
|
|
|
(3,882)
|
|
|
|
(2,578)
|
|
|
|
Cash and cash
equivalents and restricted cash at end of period
|
|
$
|
92,499
|
|
|
$
|
122,130
|
|
|
|
SUPPLEMENTARY
INFORMATION ON CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
20,642
|
|
|
$
|
121,340
|
|
|
|
Restricted
cash
|
|
$
|
71,857
|
|
|
$
|
790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAM TAI PROPERTY INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED MARCH 31, 2021
AND 2020
(In Thousands of US dollars)
- These financial statements, including the consolidated balance
sheet as of December 31, 2020, 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, 2020.
- 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, 2021.
- Accumulated other comprehensive loss represents foreign
currency translation adjustments. The consolidated comprehensive
income was $22.8 million for the
three months ended March 31, 2021 and
the consolidated comprehensive loss was $5.9
million for the three months ended March 31, 2020.
- A summary of the operating income, other income (expenses),
net, net income (loss) and long-lived assets by geographical areas
is as follows:
|
|
Three months ended
March 31,
|
|
|
|
|
|
|
2021
|
|
|
2020
|
|
|
|
RENTAL INCOME WITHIN:
|
|
|
|
|
|
|
|
|
|
|
-PRC, excluding Hong
Kong
|
|
$
|
69,047
|
|
|
$
|
699
|
|
|
|
NET INCOME (LOSS)
FROM OPERATIONS WITHIN:
|
|
|
|
|
|
|
|
|
|
|
- PRC, excluding Hong
Kong
|
|
$
|
31,933
|
|
|
$
|
(1,695)
|
|
|
|
- Hong Kong
|
|
|
(6,302)
|
|
|
|
(1,480)
|
|
|
|
Total net income
(loss)
|
|
$
|
25,631
|
|
|
$
|
(3,175)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2021
|
|
|
December 31, 2020
|
|
LONG-LIVED ASSETS
WITHIN:
|
|
|
|
|
|
|
|
|
- Real estate
properties under development in PRC, excluding
Hong Kong
|
|
$
|
202,788
|
|
|
$
|
190,492
|
|
- Property, plant and
equipment in PRC, excluding Hong
Kong
|
|
|
25,731
|
|
|
|
26,389
|
|
- Hong Kong
|
|
|
139
|
|
|
|
179
|
|
- Real estate
properties held for lease in PRC, excluding
Hong Kong
|
|
|
90,872
|
|
|
|
92,207
|
|
- Right of use assets
in PRC, excluding Hong
Kong
|
|
|
9,210
|
|
|
|
9,511
|
|
- Hong Kong
|
|
|
106
|
|
|
|
184
|
|
Total long-lived
assets
|
|
$
|
328,846
|
|
|
$
|
318,962
|
|
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SOURCE Nam Tai Property Inc.