China Housing & Land Development Inc. Announces Third Quarter 2012 Financial Results

 China Housing & Land Development Inc. Announces Third Quarter 2012 Financial
                                   Results

-- Company Beats 3Q12 Revenue Guidance --

PR Newswire

XI'AN, China, Nov. 14, 2012

XI'AN, China, Nov. 14, 2012 /PRNewswire/ -- China Housing & Land Development,
Inc. ("China Housing" or the "Company"; Nasdaq: CHLN) today announced its
financial results for the quarter ended September 30, 2012.

Highlights for Q3 2012:

  oTotal revenue in the third quarter of 2012 decreased 17.4% to $28.9
    million from $35.0 million in the second quarter of 2012 and decreased
    9.0% from $32.1 million in the third quarter of 2011.
  oTotal gross floor area ("GFA") sales were 12,773 sq. meters during the
    third quarter of 2012, compared to 25,908 sq. meters in the second quarter
    of 2012 and 19,212 sq. meters in the third quarter of 2011.
  oAverage residential selling price ("ASP") in the third quarter of 2012 was
    RMB 6,359, compared with RMB 5,705 in the second quarter of 2012, and RMB
    7,326 in the third quarter of 2011.
  oGross profit decreased 31.5% to $5.6 million from $8.1 million in the
    second quarter of 2012 and decreased 41.7% from $9.5 million in the third
    quarter of 2011. Third quarter 2012 gross margin was 19.2% compared to
    23.2% in the second quarter of 2012 and 29.7% in the third quarter of
    2011.
  oSG&A expenses as a percentage of total revenue increased to 12.9%,
    compared to 11.3% in the second quarter of 2012 and increased from 9.1% in
    the third quarter of 2011.
  oOperating income decreased 52.9% to $1.4 million from $3.1 million in the
    second quarter of 2012, and decreased 76.3% from $6.1 million in the
    second quarter of 2011.
  oNet income attributable to the Company in the third quarter of 2012 was
    $0.9 million, or $0.03 per diluted share.

Mr. Pingji Lu, China Housing's Chairman, commented, "Our
stronger-than-expected top line financial results and healthy average selling
price trends were indicative of continued improvement in Xi'an's real estate
market. GFA sales were down sequentially largely because one core project,
Puhua Phase II, was responsible for most of the revenue generation compared to
past quarters when multiple projects contributed to our revenue stream.
Average selling prices at our projects increased 11% to RMB 6,359 compared
with RMB 5,705 in the second quarter of 2012 and each of our three projects in
the third quarter showed ASP improvement."

"As we evaluate the opportunities in our business in the coming months and
quarters ahead, we expected continued improvement to our performance. In our
fourth quarter, we expect our revenue performance to be better than the first
three quarters of 2012 as we have two more projects scheduled to come online
in a stabilized pricing environment. Looking out to 2013, we have an
additional four projects under planning that are expected to commence
pre-sales in the next twelve months in addition to our two new projects in the
last quarter of this year. Together, these six new projects under planning
represent a total of nearly 1.7 million square meters of unsold GFA. We
believe the pricing environment will remain stable providing us with greater
opportunities to increase our revenue and contract sales."

Total revenue in the third quarter of 2012 decreased 17.4% to $28.9 million
from $35.0 million in the second quarter of 2012 and decreased 9.0% from $32.1
million in the third quarter of 2011. In the third quarter of 2012, the
majority of the Company's revenue came from its Puhua Phase II project with
additional revenue from its Puhua Phase I and JunJing III projects. Third
quarter 2012 contract sales totaled $12.8 million compared to $24.8 million in
the second quarter of 2012 and $21.9 million from the third quarter of 2011.
Total gross floor area ("GFA") sales were 12,773 sq. meters during the third
quarter of 2012, compared to 25,908 sq. meters in the second quarter of 2012
and 19,212 sq. meters in the third quarter of 2011. The Company's ASP in the
third quarter of 2012 increased to RMB 6,359 compared to RMB 5,705 in the
second quarter of 2012, and RMB 7,326 in the third quarter of 2011.

Gross profit for the three months ended September 30, 2012 was $5.6
million,representing a decrease of31.5% from $8.1 million in the second
quarter of 2012 and a 41.7% decrease from $9.5 million in the same period of
2011. Gross profit margin for the three months ended September 30, 2012 was
19.2%, which is below the 29.7% in the same period of 2011 and the 23.2% in
the second quarter of 2012. The decrease in gross profit and gross profit
margin was mainly due to an adjustment of total estimated project costs,
which the Company recorded the accumulated impact of these adjustments in the
third quarter of 2012.

SG&A expense was $3.7 million in the third quarter of 2012, compared to $4.0
million in the second quarter of 2012 and $2.9 million in the third quarter of
2011. SG&A expense as a percentage of total revenue was 12.9%, compared to
11.3% in the second quarter of 2012 and 9.1% in the third quarter of 2011. The
year-over-year increase in SG&A expense was primarily due to increased
employee salaries, which contributed to the higher administrative expenses.

Operating income in the third quarter of 2012 was $1.4 million, or 5.0% of
total revenue, decreased from $3.1 million, or 8.7% of total revenue, in the
second quarter of 2012, and decreased from $6.1 million, or 19.0% of total
revenue in the third quarter of 2011. The year-over-year decrease was mainly
due to the reduced gross margin during the three months ended September 30,
2012 in connection with change of estimates in our projects.

Net income attributable to China Housing in the third quarter of 2012 was $0.9
million, or $0.03 per diluted share. This performance compares to a net income
of $1.9 million in the second quarter of 2012.

Sequential Quarterly Revenue Breakout Comparison

                   Q3 2012                                          Q2 2012
Project            Recognized Contract   GFA    ASP   Unsold  POC   Recognized Contract   GFA    ASP
                   Revenue    Sales      Sold         GFA           Revenue    Sales      Sold
                   ($)        ($)        (m^2)  (RMB) (m^2)         ($)        ($)        (m^2)  (RMB)
Projects Under Construction
PuhuaPhaseOne 3,814,640  2,474,085  1,716  9,157 12,314  98.9% 12,043,477 6,029,952  4,980  7,666
Puhua Phase Two    15,421,851 9,544,391  10,476 5,785 150,630 74.1% 14,541,350 15,973,143 19,343 5,228
JunJing III        4,863,938  753,382    539    8,878 1,738   91.4% 4,313,484  2,285,239  1,857  7,790
Projects Completed
JunJing II Phase   -          -          -      -     817     100%  -          -          -      -
One
JunJing I          -          -          -      -     4,825   100%  (828,763)  (828,763)  (272)  19,938
Additional Project 18,897     18,897     42     2,888 -             -          -          -      -
Other Income       4,798,239  -          -                          4,945,971  -          -
Total              28,917,565 12,790,755 12,773 6,359 164,682 -    35,015,520 23,459,571 25,908 5,705
Q-o-Q Change       -17.4%     -45.5%     -50.7% 11.5%

Total debt outstanding as of September 30, 2012 was $198.3 million compared
with $192.4 million on December 31, 2011. Net debt outstanding (total debt
less cash and restricted cash) as of September 30, 2012 was $103.6 million
compared with $64.7 million on December 31, 2011. The Company's net debt as a
percentage of total capital (net debt plus shareholders' equity) was 43.3
percent on September 30, 2012 and 33.4 percent on December 31, 2011

                           Q3 2012
                                     First
                           Unsold
Projects in Planning                 Pre-sales
                           GFA
                                     Scheduled
                           (m^2)
Puhua Phase Three          177,193   Q4 2012
Ankang Project             243,152   Q4 2012
Park Plaza                 141,822   Q1 2013
Golden Bay                 252,540   Q2 2013
Puhua Phase Four           216,611   Q3 2013
Textile City               630,000   Q3 2013
Total projects in planning 1,661,318

2012 Fourth Quarter Outlook

Total recognized revenue for the 2012 fourth quarter is expected to reach
$25.0 million to $27.0 million, compared to $28.9 million in the 2012 third
quarter and $47.9 million in the same period of 2011. The Company is reporting
revenues, which are subject to percentage of completion alterations.

Conference Call Information

Management will host a conference call at 8:00 am ET on November 14th, 2012.
Listeners may access the call by dialing #1-785-424-1826. To listen to the
live webcast of the event, please go to http://www.viavid.net. Listeners may
access the call replay, which will be available through November 21^st, 2012,
by dialing #1-858-384-5517; passcode: 11700.

About China Housing & Land Development, Inc.

Based in Xi'an, the capital city of China's Shaanxi province, China Housing &
Land Development, Inc., is a leading developer of residential and commercial
properties in northwest China. China Housing has been engaged in land
acquisition, development, and management, including the sales of residential
and commercial real estate properties through its wholly-owned subsidiary in
China, since 1992.

China Housing & Land Development is the first Chinese real estate development
company traded on NASDAQ. The Company's news releases, project information,
photographs, and more are available on the internet at www.chldinc.com.

Safe Harbor

This news release may contain forward-looking information about China Housing
& Land Development, Inc. which is covered under the safe harbor for
forward-looking statements provided by the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are statements that are not
historical facts. These statements can be identified by the use of forward-
looking terminology such as believe, expect, may, will, should, project, plan,
seek, intend, or anticipate or the negative thereof or comparable terminology,
and include discussions of strategy, and statements about industry trends and
China Housing & Land Development's future performance, operations, and
products.

Such statements are subject to risks and uncertainties that could cause actual
results to differ materially from those projected. Actual performance results
may vary significantly from expectations and projections. Further information
regarding this and other risk factors are contained in China Housing's public
filings with the U.S. Securities and Exchange Commission.

All information provided in this news release and in any attachments is as of
the date of the release, and the companies do not undertake any obligation to
update any forward-looking statement as a result of new information, future
events or otherwise, except as required under law.

China Housing contacts
Mr. Cangsang Huang
Chief Financial Officer
Tel: +86 29.8258.2648 in Xi'an
Email: chuang@chldinc.com

Ms. Jing Lu
Chief Operating Officer, Board Secretary, and Investor Relations Officer
+86 29.8258.2639 in Xi'an
jinglu@chldinc.com / English and Chinese

Mr. Shuai Luo
Investor Relations
+86 29.8258.2632 in Xi'an
Laurentluo@chldinc.com / English and Chinese

Mr. Bill Zima, ICR
+86 10 6583 7511
William.Zima@icrinc.com

China Housing Investor Relations Department
+1 646.308.1285



CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES



Interim Condensed Consolidated Balance Sheets

As of September 30, 2012 and December 31, 2011

(Unaudited)


                                                                        September30,   December31,
                                                                        2012            2011
ASSETS
Cash and cash equivalents                                               $ 9,945,932     $ 22,014,953
Cash - restricted                                                         84,810,432      105,720,400
Accounts receivable, net of allowance for doubtful
                                                                          15,338,313      20,253,706
 accounts of $572,685 and $571,857, respectively
Other receivables, prepaid expenses and other assets, net                 4,560,501       1,483,758
Real estate held for development or sale                                  227,267,782     163,482,316
Property and equipment, net                                               38,007,612      33,018,990
Advance to suppliers                                                      2,500,544       889,965
Deposits on land use rights                                               42,375,958      65,286,137
Intangible assets, net                                                    54,062,887      54,148,953
Goodwill                                                                  1,897,526       1,894,782
Deferred tax asset                                                        -               308,248
Deferred financing costs                                                  272,310         253,569
Total assets                                                            $ 481,039,797   $ 468,755,777
LIABILITIES
Accounts payable                                                        $ 44,364,975    $ 44,275,965
Advances from customers                                                   51,804,582      57,541,251
Accrued expenses                                                          11,973,368      8,380,041
Income and other taxes payable                                            16,885,902      14,386,133
Other payables                                                            7,753,735       7,474,035
Loans from employees                                                      19,911,533      14,887,431
Loans payable                                                             142,332,730     148,402,690
Deferred tax liability                                                    14,465,340      14,861,462
Warrants liability                                                        -               4,162
Fair value of embedded derivatives                                        -               330,629
Convertible debt                                                          9,893,765       9,165,591
Mandatorily redeemable non-controlling interests in Subsidiaries          26,183,964      19,935,482
Total liabilities                                                         345,569,894     339,644,872
SHAREHOLDERS' EQUITY
Common stock: $.001 par value, authorized 100,000,000 shares
Issued 35,438,079 and 35,078,639, respectively                            35,438          35,079
Additional paid in capital                                                49,870,733      48,961,658
Treasurystockatcost351,480sharesand337,800shares,respectively    (434,240)       (420,098)
Statutory reserves                                                        7,857,612       7,857,612
Retained earnings                                                         55,585,254      50,555,460
Accumulated other comprehensive income                                    22,555,106      22,121,194
Total shareholders' equity                                                135,469,903     129,110,905
Total liabilities and shareholders' equity                              $ 481,039,797   $ 468,755,777







CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES



Interim Condensed Consolidated Statements of Income

For The Three and Nine Months Ended September 30, 2012 and 2011

(Unaudited)


                                              3 Months       3 Months       9 Months       9 Months
                                              September      September      September      September 30,
                                              30,            30,            30,
                                                                                           2011
                                              2012           2011           2012
REVENUES
Real estate sales                             $ 24,119,326   $ 26,711,856   $ 74,623,218   $ 61,941,929
Other income                                    4,798,239      5,387,137      12,811,638     12,966,952
Total revenues                                  28,917,565     32,098,993     87,434,856     74,908,881
COST OF SALES
Cost of real estate sales                       19,231,940     18,829,374     56,580,709     46,618,588
Cost of other revenue                           4,134,356      3,743,196      10,166,314     7,927,620
Total cost of revenues                          23,366,296     22,572,570     66,747,023     54,546,208
Gross margin                                    5,551,269      9,526,423      20,687,833     20,362,673
OPERATING EXPENSES
Selling, general, and administrative            3,717,423      2,913,008      10,697,177     9,667,449
expenses
Stock-based compensation                        96,438         96,438         909,434        114,258
Other (income) expenses                         (22,503)       54,267         42,385         444,745
Interest expense                                63,764         148,739        394,712        1,111,347
Accretion expense on convertible debt           254,023        217,391        728,174        761,195
Total operating expenses                        4,109,145      3,429,843      12,771,882     12,098,994
CHANGES IN FAIR VALUE OF DERIVATIVES
Changeinfairvalueofembeddedderivatives    (109,344)      (60,705)       (330,628)      (1,522,937)
Change in fair value of warrants                (976)          58,937         (4,162)        (1,055,337)
Total changes in fair value of derivatives      (110,320)      (1,768)        (334,790)      (2,578,274)
Income before provision for income taxes       1,552,444      6,098,348      8,250,741      10,841,953
Provision for income taxes                      975,645        1,758,024      3,317,157      3,529,614
Recovery of deferred income taxes               (310,834)      (62,542)       (96,210)       (134,510)
NET INCOME                                    $ 887,633      $ 4,402,866    $ 5,029,794    $ 7,446,849
WEIGHTEDAVERAGESHARESOUTSTANDING
Basic                                           35,086,599     35,071,915     34,911,173     34,683,383
Diluted                                         35,086,599     36,687,624     34,911,173     36,299,092
NET INCOME PER SHARE
Basic                                           0.03           0.13           0.14           0.21
Diluted                                         0.03           0.12           0.14           0.18







CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES



Interim Condensed Consolidated Statements of Comprehensive Income

For The Three and Nine Months Ended September 30, 2012 and 2011

(Unaudited)


                            3 Months      3 Months      9 Months      9 Months
                            September     September     September     September
                            30,           30,           30,           30,
                            2012          2011          2012          2011
NET INCOME                  $ 887,633     $ 4,402,866   $ 5,029,794   $ 7,446,849
OTHERCOMPREHENSIVEINCOME
Gain in foreign exchange      2,303,737     2,107,334     433,912       5,191,323
COMPREHENSIVE INCOME        $ 3,191,370   $ 6,510,200   $ 5,463,706   $ 12,638,172

SOURCE China Housing & Land Development, Inc.

Website: http://www.chldinc.com
 
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