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

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

PR Newswire

XI'AN, China, March 24, 2014

XI'AN, China, March 24, 2014 /PRNewswire/ -- China Housing & Land Development,
Inc. ("China Housing" or the "Company"; Nasdaq: CHLN) today announced its
financial results for the quarter ended December 31, 2013.

Highlights for Q4 2013:

  oTotal revenue in the fourth quarter of 2013 was $56.1 million compared to
    $24.8 million in the third quarter of 2013 and $61.5 million in the fourth
    quarter of 2012.
  oTotal gross floor area ("GFA") sales were 28,582 sq. meters during the
    fourth quarter of 2013, compared with 17,846 sq. meters in the third
    quarter of 2013 and 27,853 sq. meters in the fourth quarter of 2012.
  oAverage residential selling price ("ASP") in the fourth quarter of 2013
    was RMB 6,600, compared with RMB 6,369 in the third quarter of 2013, and
    RMB 5,137 in the fourth quarter of 2012.
  oGross profit was $12.6 million in the fourth quarter of 2013 compared to
    $4.9 million in the third quarter of 2013 and $21.1 million in the fourth
    quarter of 2012. Fourth quarter 2013 gross margin was 22.4%, compared with
    19.8% in the third quarter of 2013 and 34.3% in the fourth quarter of
    2012.
  oSG&A expenses as a percentage of total revenue decreased to 9.1%, from
    15.2% in the third quarter of 2013 and 9.3% in the fourth quarter of 2012.
  oOperating income was $6.0 million in the fourth quarter of 2013 compared
    to operating loss of $0.7 million in the third quarter of 2013, and
    operating income of $14.8 million in the fourth quarter of 2012.
  oNet income attributable to the Company in the fourth quarter of 2013 was
    $3.9 million, or $0.11 per diluted share, compared to net loss of $0.8
    million, or $(0.11) per diluted share, in the third quarter of 2013 and
    $11.5 million, or $0.33 per diluted share, in the fourth quarter of 2012.

Mr. Pingji Lu, China Housing's Chairman, commented, "Our fourth financial
performance was better than our original guidance forecast. The increase was
due to a completion percentage that was higher than our expectation, resulting
in greater recognized revenue in the fourth quarter. The majority of our
fourth quarter revenue was generated by our Park Plaza, Puhua Phase Three and
Ankang projects."

"We are making progress balancing our unit inventory more effectively so that
we can offer a broader array of apartment units to prospective low, mid and
high end buyers. Ensuring greater unit availability in each of these tiers is
important as we face more challenging conditions as overall market demand
appears to be softening. For our projects under planning, we're actively
observing buyer patterns so we can accelerate the most relevant projects by
unit category to adequately suit buyer demand. Despite an uncertain market
environment, we believe our current broader category of inventory can better
meet the market demand," concluded Chairman Lu.

Total revenue in the fourth quarter of 2013 increased 126.2% to $56.1 million
from $24.8 million in the third quarter of 2013 and decreased 8.8% from $61.5
million in the fourth quarter of 2012. Other revenue in the fourth quarter of
2013 was $8.9 million, compared to $3.8 million in the third quarter of 2013
and $21.3 million in the fourth quarter of 2012.

In the fourth quarter of 2013, the majority of the Company's real estate
revenue came from its Puhua Phase Two and Three projects, Park Plaza and
Ankang projects. Fourth quarter 2013 contract sales totaled $31.0 million
compared with $18.6 million in the third quarter of 2013 and $22.9 million in
the fourth quarter of 2012. Total gross floor area ("GFA") sales were 28,582
sq. meters during the fourth quarter of 2013, compared with 17,847 sq. meters
in the third quarter of 2013 and 27,853 sq. meters in the fourth quarter of
2012. The Company's ASP in the fourth quarter of 2013 was RMB 6,600, compared
with RMB 6,369 in the third quarter of 2013, and RMB 5,137 in the fourth
quarter of 2012.

Gross profit for the three months ended December 31, 2013 was $12.6
million,representing an increase of157.1% from $4.9 million in the third
quarter of 2013 and a 40.3% decrease from $21.1 million in the fourth quarter
of 2012. Gross profit margin for the three months ended December 31, 2013 was
22.4%, compared to 19.8% in the third quarter of 2013 and the 34.3% in the
fourth quarter of 2012. The year-over-year decrease in gross profit margin was
mainly due to an adjustment on the total estimate cost of Park Plaza, Puhua
Phase Two and Three projects, of which the accumulated impacted was recorded
in the fourth quarter of 2013 For the full 2013 year, gross margin was 22.4%.

SG&A expense was $5.1 million in the fourth quarter of 2013, compared with
$3.8 million in the third quarter of 2013 and $5.7 million in the fourth
quarter of 2012. SG&A expense as a percentage of total revenue was 9.1%,
compared with 15.2% in the third quarter of 2013 and 9.3% in the fourth
quarter of 2012. The year-over-year decrease in SG&A expense was mainly due to
lower advertising expense and decreased sales commission associated with
decreased revenue. .

Operating income in the fourth quarter of 2013 was $6.0 million compared to an
operating loss of $0.7 million in the third quarter of 2013, and operating
income of $14.8 million in the fourth quarter of 2012. The year-over-year
decrease in operating income was mainly due to reduced sales revenue and lower
profit margin.

Net income attributable to China Housing in the fourth quarter of 2013 was
$3.9 million, or $0.11 per diluted share. This performance compares with net
loss of $0.8 million, or $(0.02) per diluted share, in the third quarter of
2013 and net income of $11.5 million, or $0.33 per diluted share, in the
fourth quarter of 2012.

Sequential Quarterly Revenue Breakout Comparison

Project    Q4 2013                                           Q3 2013
           Recognized Contract   GFA    ASP   Unsold  POC    Recognized Contract   GFA    ASP
           Revenue    Sales      Sold         GFA            Revenue    Sales      Sold
           ($)        ($)        (m2)   (RMB) (m2)           ($)        ($)        (m2)   (RMB)
Projects Under Construction
Park Plaza 17,872,157 9,946,924  6,942  8,727 56,617  83.23% 6,541,366  5,659,081  4,002  8,661
Puhua
Phase      11,454,315 6,111,757  5,511  6,754 62,296  65.3%  3,449,098  3,685,035  3,675  6,143
Three
Puhua
Phase      6,366,008  4,739,552  4,066  7,099 91,389  83.22% 5,979,885  3,470,786  3,240  6,560
Two-East
Region
Ankang     9,317,653  6,145,128  9,374  3,992 190,659 41.44% 3,304,218  3,571,860  5,474  4,000
Projects Completed
Puhua      170,343    1,354,140  954    8.641 5,695   100%   642,927    889,021    662    8,232
Phase One
Puhua
Phase
Two-West   2,024,106  2,679,234  1,736  9,399 31,132  100%   231,686    387,717    327    7,264
Region&New
Coast Line
JunJing    -73,562    -          -      -     1,039   100%   -116,995   -116,995   -166   --
III
JunJing II -          -          -      -     518     100%   481,746    481,746    299    9,855
Phase One
JunJing I  -          -          -      -     4,366   100%   528,465    528,465    333    9,277
Other                 -          -      -                    -          -          -      -
Projects
Other      8,927,863                                         3,788,434  -          -
Income
Total      56,058,883 30,976,735 28,583 6,600 443,711 -      24,830,830 18,556,716 17,846 6,369
Q-o-Q      125.8%     66.9%      60.2%  3.6%                 -57%       -68.6%     -63.2% -15.1%
Change

Total debt outstanding as of December 31, 2013 was $300.7 million compared
with $202.6 million on December 31, 2012. Net debt outstanding (total debt
less cash and restricted cash) as of December 31, 2013 was $161.8 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 54
percent on December 31, 2013 and 41.7 percent on December 31, 2012.

                           Q4 2013
Projects in Planning       Unsold GFA First Pre-sales
                                      Scheduled
                           (m^2)
Golden Bay                 250,000    Q3 2014
Puhua Phase Four           263,833    Q1 2014
Textile City               630,000    Q1 2015
Total projects in planning 1,143,833

2014 First Quarter Outlook guidance

Total recognized revenue for the 2014 first quarter is expected to reach $15
million to $17 million, compared with $54.4 million in the first quarter of
2013. 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 Monday, March 24,
2014. Listeners may access the call by dialing +1-913-312-1267. To listen to
the live webcast of the event, please go to http://public.viavid.com; event
number: 108416. Listeners may access the call replay, which will be available
through March 31, 2014, by dialing +1-858-384-5517; passcode: 5602978.

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
Tel: +86 29.8258.2639 in Xi'an
Email: jinglu@chldinc.com / English and Chinese

Ms. Sandy Jin
Assistant CFO
Tel: +86 29.8258.2638 in Xi'an
Email: jinq@chldinc.com / English and Chinese

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

China Housing Investor Relations Department
Tel: +1 646.308.1285

CHINA HOUSING & LAND DEVELOPMENT, INC., AND SUBSIDIARIES

Consolidated Balance Sheets

As of December 31, 2013 and 2012
                                                  2013           2012
ASSETS
 Cash                                          $ 21,320,071   $ 6,121,448
 Cash - restricted                               117,534,900    110,576,248
 Accounts receivable, net of allowance for
doubtful                                            41,158,998     26,429,332
 accounts of $594,382 and $577,713,
respectively
 Construction in excess of billing               2,106,975      1,484,626
 Other receivables, prepaid expenses and         7,188,153      6,854,325
other assets, net
 Real estate held for development or sale        289,474,812    212,371,875
 Property and equipment, net                     36,281,168     33,837,346
 Advances to suppliers                           697,823        1,363,817
 Deposits on land use rights                     59,155,165     42,748,017
 Intangible assets, net                          42,453,473     54,482,252
 Goodwill                                        1,969,964      1,914,186
 Deferred financing costs                        151,585        194,162
 Total assets                             $ 619,493,087  $ 498,377,634
LIABILITIES
 Accounts payable                              $ 59,400,262   $ 55,142,928
 Advances from customers                         45,441,402     49,297,915
 Accrued expenses                                17,439,541     22,229,514
 Income tax payable                              24,534,095     19,865,906
 Other taxes payable                             7,139,870      3,861,158
 Other payables                                  12,755,824     11,228,553
 Loans from employees                            25,759,453     27,868,785
 Loans payable                                   274,917,332    174,749,368
 Deferred tax liability                          14,782,118     14,521,613
 Total liabilities                               482,169,897    378,765,740
SHAREHOLDERS' EQUITY
 Common stock: $.001 par value, authorized
100,000,000                                        35,849         35,438
shares; issued 35,849,204 and
35,438,079, respectively
 Additional paid in capital                      51,347,620     49,972,174
 Treasury stock at cost; 1,166,369 shares and
351,480                                             (2,400,288)    (434,240)
 shares,respectively
 Statutory reserves                              11,535,242     9,903,457
 Retained earnings                               48,696,878     38,573,966
 Accumulated other comprehensive income          28,107,889     21,561,099
 Total shareholders' equity                      137,323,190    119,611,894
 Total liabilities and shareholders'    $ 619,493,087  $ 498,377,634
equity
The accompanying notes are an integral part of these consolidated financial
statements.



CHINA HOUSING & LAND DEVELOPMENT, INC., AND SUBSIDIARIES



Consolidated Statements of Operations

For The Years Ended December 31, 2013 and 2012
                                               2013             2012
REVENUES
Real estate sales                              $  159,222,863   $ 115,299,428
Other revenue                                     30,811,894      28,075,201
Total revenues                                    190,034,757     143,374,629
COST OF REVENUES
Cost of real estate sales                         124,152,403     78,612,305
Cost of other revenue                             22,056,802      24,168,489
Total cost of revenues                            146,209,205     102,780,794
Gross margin                                      43,825,552      40,593,835
OPERATING EXPENSES
Selling, general, and administrative              16,968,686      16,415,255
expenses
Stock-based compensation                          1,375,857       1,010,875
Other expenses                                    400,247         122,651
Financing expense                                 7,317,008       557,336
Accretion expense on convertible debt             -               954,979
Total operating expenses                          26,061,798      19,061,096
CHANGE IN FAIR VALUE OF DERIVATIVES
Change in fair value of embedded derivatives      -               (330,628)
Change in fair value of warrants                  -               (4,162)
Total change in fair value of derivatives         -               (334,790)
Loss (gain) from disposal of property and         1,107,212       (6,086,257)
equipment
Income before provision for income taxes          16,656,542      27,953,786
Provision for current income taxes                5,039,240       7,910,373
Recovery of deferred taxes                        (137,395)       (167,358)
Provision for income taxes                        4,901,845       7,743,015
NET INCOME                                     $  11,754,697    $ 20,210,771
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING
Basic                                             35,127,877      34,954,909
Diluted                                           35,127,877      36,548,485
EARNINGS PER SHARE
Basic                                          $  0.33          $ 0.58
Diluted                                        $  0.33          $ 0.57
The accompanying notes are an integral part of these consolidated financial
statements.



CHINA HOUSING & LAND DEVELOPMENT, INC., AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For The Years Ended December 31, 2013 and 2012
                                          2013                2012
NET INCOME                                $   11,754,697      $   20,210,771
OTHER COMPREHENSIVE INCOME
Foreign currency translation              6,546,790           1,471,275
adjustment
COMPREHENSIVE INCOME                      $   18,301,487      $   21,682,046
The accompanying notes are an integral part of these consolidated financial
statements.



CHINA HOUSING & LAND DEVELOPMENT INC., AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For The Years Ended December 31, 2013 and 2012
                                              December 31,    December 31,
                                              2013            2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                   $ 11,754,697    $ 20,210,771
Adjustments to reconcile net income to
cashprovided by
(used in) operating activities:
Bad debt recovery                              (164)           -
Depreciation                                   2,598,326       2,065,380
Stock-based compensation                       1,375,857       1,010,875
Loss(gain) on disposal of property and         1,107,212       (6,086,257)
equipment
Amortization of deferred financing costs       -               156,064
Amortization of intangible assets              13,498,819      218,480
Recovery of deferred taxes                     (137,395)       (167,358)
Change in fair value of embedded               -               (330,628)
derivatives
Change in fair value of warrants               -               (4,162)
Accretion expense on convertible debt          -               954,979
Accretion expense on mandatorily redeemable    -               (1,542,039)
noncontrolling interests
(Increase) decrease in assets:
Accounts receivable                            (13,637,800)    619,790
Construction in excess of billing              (574,056)       (1,481,534)
Other receivables, prepaid expenses and        (468,501)       (5,061,576)
other assets, net
Real estate held for development or sale       (70,989,071)    (76,702,170)
Advances to suppliers                          693,807         (454,840)
(Deposit) refund on land use rights            (15,071,133)    22,754,848
Increase (decrease) in liabilities:
Accounts payable                               2,834,646       10,349,314
Advances from customers                        (5,243,032)     (9,459,510)
Accrued expenses                               (5,274,375)     22,144,899
Other payables                                 1,185,307       3,665,900
Income and other taxes payable                 7,572,979       7,289,569
Net cash used in operating activities          (68,773,877)    (9,849,205)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment             (5,793,142)     (10,723,887)
Proceeds from sale of property and             654,321         5,480,530
equipment
Net cash used in investing activities          (5,138,821)     (5,243,357)
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in restricted cash                      (3,694,203)     (4,001,058)
Loans from banks                               98,841,999      99,673,042
Loans from Days Hotel, Shanghai Xinying
Fund LLC,                                       46,269,017      51,538,584
Changcheng Financing Company Limited
Repayments on loans payable                    (49,173,393)    (123,698,502)
Loans from employees                           (2,902,615)     12,730,011
Repayment for mandatorily redeemable
non-controlling                                 -               (27,112,369)
interest in Subsidiaries
Repayment of convertible debt                  -               (9,645,570)
Purchase of treasury stock                     (1,966,047)     (14,142)
Net cash provided by (used in) financing       87,374,758      (530,004)
activities
INCREASE (DECREASE) IN CASH                     13,462,060      (15,622,566)
Effects on foreign currency exchange           1,736,563       (270,939)
Cash, beginning of year                        6,121,448       22,014,953
Cash, end of year                            $ 21,320,071    $ 6,121,448
The accompanying notes are an integral part of these consolidated financial
statements.

SOURCE China Housing & Land Development, Inc.

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