Breaking News

Tweet TWEET

China Housing & Land Development Inc. Announces First Quarter 2013 Financial Results

 China Housing & Land Development Inc. Announces First Quarter 2013 Financial
                                   Results

--Company Beats 1Q13 Financial Forecast--

PR Newswire

XI'AN, China, May 15, 2013

XI'AN, China, May 15, 2013 /PRNewswire/-- China Housing & Land Development,
Inc. ("China Housing" or the "Company"; Nasdaq: CHLN) today announced its
financial results for the quarter ended March 31, 2013.

Highlights for Q1 2013:

  oTotal revenue in the first quarter of 2013 was $54.4 million compared to
    $61.5 million in the fourth quarter of 2012 and $23.5 million in the first
    quarter of 2012. First quarter recognized revenue significantly exceeded
    the Company's first quarter revenue forecast range of $28 to $30 million.
  oTotal gross floor area ("GFA") sales were 89,691 sq. meters during the
    first quarter of 2013, compared to 27,853 sq. meters in the fourth quarter
    of 2012 and 17,090 sq. meters in the first quarter of 2012.
  oAverage residential selling price ("ASP") in the first quarter of 2013 was
    RMB 5,695, compared with RMB 5,137 in the fourth quarter of 2012, and RMB
    7,407 in the first quarter of 2012.
  oGross profit was $9.0 million in the first quarter of 2013 compared to
    $21.1 million in the fourth quarter of 2012 and $7.0 million in the first
    quarter of 2012. First quarter 2013 gross margin was 16.6%, compared to
    34.3% in the fourth quarter of 2012 and 29.9% in the first quarter of
    2012.
  oSG&A expenses as a percentage of total revenue decreased to 5.8%, compared
    to 9.3% in the fourth quarter of 2012 and 12.9% in the first quarter of
    2012.
  oOperating income was $4.8 million in the first quarter of 2013 compared to
    $14.8 million in the fourth quarter of 2012, and $3.6 million in the first
    quarter of 2012.
  oNet income attributable to the Company in the first quarter of 2013 was
    $3.1 million, or $0.09 per diluted share.

Mr. Pingji Lu, China Housing's Chairman, commented, "We are very pleased to
start off 2013 with a strong quarter as our top line significantly exceeded
our first quarter guidance forecast. The fundamentals in the Xi'an housing
market remained healthy in the first quarter and our residential sales were
stable in terms of both average selling prices and transaction volume. We
commenced pre-sales of two new projects in the first quarter, Park Plaza and
Puhua Phase III, both of which experienced strong demand in their first weeks
on the market."

"In the first quarter, we experienced a lower gross margin level which was due
to an adjustment on the total estimated project cost at our Puhua Phase Two
project and from lower gross profit associated with sales of low income
residential units at our Ankang project. Additionally, we initiated a group
purchase sale on our Puhua Phase Three project at a discounted selling price
last quarter to improve our cash position which also impacted first quarter
profit margins. We remain confident we can maintain our full year gross profit
margin goal of 25% to 30%."

"As we implement effective cost control measures at each of our development
projects, we expect SG&A expenses as a percent of total revenue to normalize
at around 10% for the full year. As the market shows continued signs of
stability, we anticipate sustained levels of ASP and unit demand at our major
projects in the second quarter. For the remainder of 2013, we remain focused
on the execution of our four core development projects as well as the launch
of Golden Bay which we expect will commence pre-sales in the third quarter.
We are encouraged with our opportunities in Xi'an's real estate market and
believe 2013 can be a strong year for China Housing," concluded Mr. Lu.

Total revenue in the first quarter of 2013 decreased 11.7% to $54.4 million
from $61.5 million in the fourth quarter of 2012 and increased 131.4% from
$23.5 million in the first quarter of 2012. Other revenue in the first quarter
of 2013 decreased to $11.1 million from $21.3 million in the fourth quarter of
2012 and increased from $3.1 million in the first quarter of 2012. The
year-over-year increase was due to the revenue contribution from the
construction of low income residential buildings for the Company's Ankang
project.

In the first quarter of 2013, the majority of the Company's real estate
revenue came from its Puhua Phase III and Park Plaza projects with additional
revenue from Puhua Phase II project. First quarter 2013 contract sales
totaled $82.4 million compared to $22.9 million in the fourth quarter of 2012
and $20.1 million in the first quarter of 2012. Total gross floor area
("GFA") sales were 89,691 sq. meters during the first quarter of 2013,
compared to 27,853 sq. meters in the fourth quarter of 2012 and 17,090 sq.
meters in the first quarter of 2012. The Company's ASP in the first quarter of
2013 was RMB 5,695, compared with RMB 5,137 in the fourth quarter of 2012, and
RMB 7,407 in the first quarter of 2012. During the first quarter, the Company
commenced presales at its Puhua Phase III and Park Plaza projects.

Gross profit for the three months ended March 31, 2013 was $9.0
million,representing a decrease of57.1% from $21.1 million in the fourth
quarter of 2012 and a 28.7% increase from $7.0 million in the same period of
2012. Gross profit margin for the three months ended March 31, 2013 was 16.6%,
which is below the 29.9% in the same period of 2012 and the 34.3% in the
fourth quarter of 2012. The decrease in gross profit margin was mainly due to
an adjustment on the total estimated project cost at the Company's Puhua Phase
Two project and from lower gross profit associated with sales of low income
residential units at the Company's Ankang project. Additionally, the Company
initiated a group purchase sale on its Puhua Phase Three project at a
discounted selling price last quarter to improve our cash position which also
impacted first quarter profit margins. The Company continues to expect full
year gross margin in the 25% to 30% range for 2013.

SG&A expense was $3.2 million in the first quarter of 2013, compared to $5.7
million in the fourth quarter of 2012 and $3.0 million in the first quarter of
2012. SG&A expense as a percentage of total revenue was 5.8%, compared to 9.3%
in the fourth quarter of 2012 and 12.9% in the first quarter of 2012. The
year-over-year increase in SG&A expense is due to increased advertising
expenses in connection with additional development projects beginning
pre-sales and from increased employee salary expenses.

Operating income in the first quarter of 2013 was $4.3 million, or 7.9% of
total revenue, compared to $14.8 million, or 24.1% of total revenue, in the
fourth quarter of 2012, and $3.4 million, or 14.5% of total revenue in the
first quarter of 2012. The year-over-year increase in operating income was
mainly due to increased sales revenue from new projects.

Net income attributable to China Housing in the first quarter of 2013 was $3.1
million, or $0.09 per diluted share. This performance compares to net income
of $11.5 million, or $0.33 per diluted share, in the fourth quarter of 2012
and net income of $2.2 million, or $0.06 per diluted share, in the first
quarter of 2012.

Sequential Quarterly Revenue Breakout Comparison

         Q1 2013                                          Q4 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
Park     19,794,628 30,152,026 22,151 8,439 127,671 58.1%
Plaza
Puhua
Phase    17,348,070 36,469,024 48,902 4,624 80,398  41.4%
Three
Puhua
Phase    5,372,159  7,122,505  5,076  8,700 136,385 75.4% 22,381,994 10,710,195 9,155  7,304
Two
Ankang   -          7,876,083  12,909 4,631 223,978 N/A   -          6,650,461  11,103 3,739
Projects Completed
Puhua
Phase    649,744    649,744    569    7,080 7,902   100%  6,744,760  6,212,359  3,934  9,859
One
JunJing  109,970    109,970    84     8,118 873     100%  8,459,601  3,385,879  1,782  11,862
III
JunJing
II Phase -          -          -      -     817     100%  -          -          -      -
One
JunJing  -          -          -      -     4,699   100%  2,608,229  2,608,229  1,879  8,666
I
Other    -          -          -      -     -             18,897     18,897     42     2,888
Projects
Other    11,099,124 -          -                          21,349,820 -          -
Income
Total    54,373,695 82,379,352 89,691 5,695 582,723 -     61,544,404 22,916,662 27,853 5,137
Q-o-Q    -11.7%     259.5%     222.0% 10.9%
Change

Total debt outstanding as of March 31, 2013 was $243.8 million compared with
$202.6 million on December 31, 2012. Net debt outstanding (total debt less
cash and restricted cash) as of March 31, 2013 was $85.5 million compared with
$85.9 million on December 31, 2012. The Company's net debt as a percentage of
total capital (net debt plus shareholders' equity) was 35.8 percent on March
31, 2013 and 36.6 percent on December 31, 2012

                           Q1 2013
                                     First
                           Unsold
Projects in Planning                 Pre-sales
                           GFA
                                     Scheduled
                           (m^2)
Golden Bay                 252,540   Q3 2013
Puhua Phase Four           263,833   Q3 2014
Textile City               630,000   Q3 2014
Total projects in planning 1,146,373

2013 Second Quarter Outlook

Total recognized revenue for the 2013 second quarter is expected to reach $34
million to $36 million, compared to $54.4 million in the 2013 first quarter
and $35.0 million in the second quarter of 2012. The Company is reporting
revenues, which are subject to percentage of completion alterations.

Conference Call Information

Management will host a conference call at 8:30 am ET on May 15, 2013.
Listeners may access the call by dialing #1-913-312-1489. 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 May 22, 2013, by
dialing #1-858-384-5517; passcode: 8325823.

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, CFA
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
Unaudited Interim Condensed Consolidated Balance Sheets
As of March 31, 2013 and December 31, 2012
                                                  March 31,      December 31,
                                                  2013           2012
ASSETS
  Cash                                            $ 47,718,732   $ 6,121,448
  Cash - restricted                                 110,641,182    110,576,248
  Accounts receivable, net of allowance for
  doubtful
       accounts of $579,508 and $577,713,           35,811,101     26,897,958
       respectively
  Construction in excess of billing                 2,147,813      1,484,626
  Other receivables, prepaid expenses and other     11,567,950     6,854,325
  assets, net
  Real estate held for development or sale          221,558,302    238,111,545
       Finished projects                            18,820,541     13,233,641
       Construction in progress                     202,737,761    224,877,904
       Total real estate held for                   221,558,302    238,111,545
       development or sale
  Property and equipment, net                       34,091,945     33,837,346
  Advances to suppliers                             1,363,741      1,363,817
  Deposits on land use rights                       42,880,856     42,748,017
  Intangible asset, net                             54,596,079     54,482,252
  Goodwill                                          1,920,134      1,914,186
  Deferred financing costs                          154,514        194,162
       Total assets                                 564,452,349    524,585,930
LIABILITIES
  Accounts payable                                $ 44,578,699   $ 55,142,928
  Advances from customers                           44,422,436     48,829,289
  Accrued expenses                                  27,886,201     22,229,514
  Income and other taxes payable                    24,073,995     20,929,485
  Other payables                                    11,609,540     11,228,553
  Loans from employees                              32,878,293     27,868,785
  Loans payable                                     211,416,437    174,749,368
  Deferred tax liability                            14,502,081     14,521,613
       Total liabilities                            411,367,682    375,499,535
SHAREHOLDERS' EQUITY
  Common stock: $.001 par value, authorized
  100,000,000 shares;
       Issued 35,438,079 and 35,438,079,            35,438         35,438
       respectively
  Additional paid in capital                        50,069,711     49,972,174
  Treasury Stock                                    (434,240)      (434,240)
  Statutory reserves                                9,903,457      9,903,457
  Retained earnings                                 68,138,020     65,057,333
  Accumulated other comprehensive income            25,372,281     24,552,233
       Total shareholders' equity                   153,084,667    149,086,395
        Total liabilities and               $ 564,452,349  $ 524,585,930
       shareholders' equity
The accompanying notes are an integral part of these interim
condensed consolidated financial statements.



CHINA HOUSING & LAND DEVELOPMENT INC. AND SUBSIDIARIES
Unaudited Interim Consolidated Statements of Income
For Three Months Ended March 31, 2013 and 2012
                                               March 31,        March 31,
                                               2013             2012
REVENUES
      Real estate sales                        $  43,274,571    $  20,434,343
      Other revenue                               11,099,124       3,067,428
Total revenues                                    54,373,695       23,501,771
COST OF REVENUES
      Cost of real estate sales                   35,788,415       14,232,864
      Cost of other revenue                       9,535,899        2,239,870
Total cost of revenues                            45,324,314       16,472,734
Gross margin                                      9,049,380        7,029,037
OPERATING EXPENSES
      Selling, general and administrative         3,161,881        3,023,685
      expenses
      Stock-based compensation                    97,537           122,606
      Other expenses                              59,982           6,433
      Financing expense                           1,446,786        230,272
      Accretion expense on convertible debt       -                232,486
Total operating expenses                          4,766,187        3,615,482
CHANGE IN FAIR VALUE OF DERIVATIVES
      Change in fair value of embedded            -                (71,103)
      derivatives
      Change in fair value of warrants            -                368
Total change in fair value of derivatives         -                (70,735)
Income before provision for income taxes          4,283,194        3,484,290
      Provision for income taxes                  1,267,143        969,485
      Recovery of deferred income taxes           (64,635)         279,392
Provision for income taxes                        1,202,507        1,248,877
NET INCOME                                     $  3,080,687     $  2,235,413
WEIGHTED AVERAGE SHARES OUTSTANDING
      Basic                                       35,438,079       34,730,261
      Diluted                                     35,438,079       34,730,261
NET INCOME PER SHARE
      Basic                                    $  0.09          $  0.06
      Diluted                                  $  0.09          $  0.06
The accompanying notes are an integral part of these interim condensed
consolidated financial statements.

SOURCE China Housing & Land Development, Inc.

Website: http://www.chldinc.com
Website: http://www.viavid.net