China Housing & Land Development Inc. Announces First Quarter 2014 Financial Results

 China Housing & Land Development Inc. Announces First Quarter 2014 Financial
                                   Results

PR Newswire

XI'AN, China, May 15, 2014

XI'AN, China, May 15, 2014 /PRNewswire/ -- China Housing & Land Development,
Inc. ("China Housing" or the "Company"; Nasdaq: CHLN) today announced its
financial results for the quarter ended March 31, 2014.

Highlights for Q1 2014:

  oTotal revenue in the first quarter of 2014 was $22.0 million compared to
    $56.1 million in the fourth quarter of 2013 and $51.4 million in the first
    quarter of 2013.
  oTotal gross floor area ("GFA") sales were 20,416 sq. meters during the
    first quarter of 2014, compared with 28,582 sq. meters in the fourth
    quarter of 2013 and 89,691 sq. meters in the first quarter of 2013.
  oAverage residential selling price ("ASP") in the first quarter of 2014 was
    RMB 5,919, compared with RMB 6,600 in the fourth quarter of 2013, and RMB
    5,695 in the first quarter of 2013.
  oGross profit was $5.3 million in the first quarter of 2014 compared to
    $12.6 million in the fourth quarter of 2013 and $8.8 million in the first
    quarter of 2013. First quarter 2014 gross margin was 24.1%, compared with
    22.4% in the fourth quarter of 2013 and 17.1% in the first quarter of
    2013.
  oSG&A expenses as a percentage of total revenue increased to 18.1%, from
    9.1% in the fourth quarter of 2013 and 6.1% in the first quarter of 2013.
  oOperating loss was $205 thousand in the first quarter of 2014 compared to
    operating income of $6.0 million in the fourth quarter of 2013, and
    operating income of $4.0 million in the first quarter of 2013.
  oNet loss attributable to the Company in the first quarter of 2014 was $774
    thousand, or $(0.02) per diluted share, compared to net income of $3.9
    million, or $0.11 per diluted share, in the fourth quarter of 2013 and
    $2.9 million, or $0.08 per diluted share, in the first quarter of 2013.

Mr. Pingji Lu, China Housing's Chairman, commented, "While the market
environment was challenging in the first quarter, our revenue performance
exceeded the mid-point of our revenue guidance by 38%. Four main projects
contributed to the majority of our first quarter revenue along with $6.2
million in property management and construction revenue. We launched one new
project in the first quarter, Puhua Phase Four."

"Overall market conditions remain uncertain. Sales of lower end units at our
Ankang and Puhua Phase Four projects generally remain stable while sales at
our higher end projects, such as Puhua Phase Two are not as strong as they
could be as potential buyers in this category wait for greater clarity related
to new government real estate policy before committing to new purchases. While
Xi'an real estate market conditions remain soft,we believe in the long term
strength of the housing market in and around the Xi'an region. Finally, we
repurchased shares in the first quarter and intend to continue our share
repurchase activity during the second quarter."

Total revenue in the first quarter of 2014 decreased 60.7% to $22.0 million
from $56.1 million in the fourth quarter of 2013 and decreased 57.1% from
$51.4 million in the first quarter of 2013. Other revenue in the first quarter
of 2014 was $6.2 million, compared to $8.9 million in the fourth quarter of
2013 and $11.1 million in the first quarter of 2013.

In the first quarter of 2014, the majority of the Company's real estate
revenue came from its Puhua Phase Two and Three projects, Park Plaza and
Ankang projects. 2014 first quarter contract sales totaled $19.8 million
compared with $31.0 million in the fourth quarter of 2013 and $82.4 million in
the first quarter of 2013. Total gross floor area ("GFA") sales were 20,416
sq. meters during the first quarter of 2014, compared with 28,582 sq. meters
in the fourth quarter of 2013 and 89,691 sq. meters in the first quarter of
2013. The Company's ASP in the first quarter of 2014 was RMB 5,919, compared
with RMB 6,600 in the fourth quarter of 2013, and RMB 5,695 in the first
quarter of 2013.

Gross profit for the three months ended March 31, 2014 was $5.4
million,representing a decrease of57.7% from $12.6 million in the fourth
quarter of 2013 and a 39.4% decrease from $8.8 million in the first quarter of
2013. Gross profit margin for the three months ended March 31, 2014 was 24.1%,
compared to 22.4% in the fourth quarter of 2013 and the 17.1% in the first
quarter of 2013. The increase in gross profit margin was mainly due to an
adjustment on the total estimated cost of Park Plaza, Puhua Phase Two and
Three projects, of which the accumulated impact was recorded in the first and
fourth quarter of 2013 and caused the lower gross margin of those periods. The
Company did not make any revision on the total estimated cost during the first
quarter of 2014, thus there was no impact on the gross profit margin.
Additionally, the Company initiated a group purchase sale on its Puhua Phase
Three project at a discounted selling price during the first quarter of 2013
which also reduced the gross margin during that period. The 24.1% gross profit
margin during the first quarter of 2014 was within the Company's normal
historic range.

SG&A expense was $4.0 million in the first quarter of 2014, compared with $5.1
million in the fourth quarter of 2013 and $3.2 million in the first quarter of
2013. SG&A expense as a percentage of total revenue was 18.1%, compared with
9.1% in the fourth quarter of 2014 and 6.1% in the first quarter of 2013. The
increase from the first quarter of 2013 in SG&A expense was mainly due to the
increase of salaries and advertising expenses.

Operating loss in the first quarter of 2014 was $205 thousand, compared to
operating income of $205 thousand in the fourth quarter of 2013, and $4.0
million in the first quarter of 2013. The year-over-year decrease in operating
income was mainly due to reduced sales revenue.

Net loss attributable to China Housing in the first quarter of 2014 was $774
thousand, or ($0.02) per diluted share. This performance compares with net
income of $3.9 million, or $0.11 per diluted share, in the fourth quarter of
2013 and net income of $2.9 million, or $0.08 per diluted share, in the first
quarter of 2013.

Sequential Quarterly Revenue Breakout Comparison

Project      Q1 2014                                             Q4 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  4,984,679    3,937,986  2,811   8,549   53,806  87%  17,872,157 9,946,924  6,942  8,727
Phase One
Puhua Phase 2,663,265    1,963,774  1,788   6,700   60,508  67%  11,454,315 6,111,757  5,511  6,754
Three
Puhua Phase
Two-East    1,872,393    1,919,787  1,515   7,731   93,982  73%  6,366,008  4,739,552  4,066  7,099
Region
Ankang
Phase       5,269,189    5,184,245  7,860   4,025   64,566  47%  9,317,653  6,145,128  9,374  3,992
One
Puhua Four  N/A          6,043,688  6,013   6,133   N/A     N/A  N/A        N/A        N/A    N/A
Projects Completed
Puhua Phase 677,091      421,314    189     13,629  5,506   100% 170,343    1,354,140  954    8.641
One
Puhua Phase                                                 
Two-West
Region&New  (56,642)     98,430     107     5.600   31,025      2,024,106  2,679,234  1,736  9,399
Coast Line
                                                            100%
JunJing III 396,809      236,812    133     10,844  906     100% -73,562    -          -      -
JunJingII                                         518     100% -          -          -      -
Phase One
JunJing I   -            -          -       -       4,366   100% -          -          -      -
Other       -            -          -       -                               -          -      -
Projects
Other       6,235,627                                            8,927,863
Income
Total       22,042,411   19,806,036 20,416  5,919   315,183 -    56,058,883 30,976,735 28,583 6,600
Q-o-Q       (60.7%)      (36.1%)    (28.6%) (10.3%)              125.8%     66.9%      60.2%  3.6%
Change

Total debt outstanding as of March 31, 2014 was $317.6 million compared with
$300.7 million on December 31, 2013. Net debt outstanding (total debt less
cash and restricted cash) as of March 31, 2014 was $191.0 million compared
with $161.8 million on December 31, 2013. The Company's net debt as a
percentage of total capital (net debt plus shareholders' equity) was 59.5
percent on March 31, 2014 and 54.1 percent on December 31, 2013.

                           Q1 2014
Projects in Planning       UnsoldGFA First Pre-sales Scheduled
                           (m^2)
Golden Bay                 326,494    Q4 2014
Textile City               630,000    Q2 2016
Park Plaza- Phase II       60,057     Q3 2014
Ankang Project- Phase II   207,794    Q3 2014
Total projects in planning 1,224,345

Second Quarter 2014 Outlook

Total contract revenue for the second quarter 2014 is expected to reach $28
million to $32 million, compared with $59 million in the second 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 8:30 am ET on the same day, May 15,
2014. Listeners may access the call by dialing +1-913-312-1501. To listen to
the live webcast of the event, please go to
http://public.viavid.com/player/index.php?id=109283. Listeners may access the
call replay, which will be available through May 22, 2014, by dialing
+1-858-384-5517; passcode: 2553975

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

Unaudited Interim Condensed Consolidated Balance Sheets

As of March 31, 2014 and December 31, 2013
                                                  March 31,      December 31,

                                                  2014           2013
ASSETS
 Cash                                             $ 14,935,316   $ 21,320,071
 Cash - restricted                                  111,640,172    117,534,900
 Accounts receivable, net of allowance for
 doubtful
    accounts of $578,825 and $594,382,              40,941,976     41,158,998
    respectively
 Construction in excess of billing                  2,051,830      2,106,975
 Other receivables, prepaid expenses and other      7,904,290      6,197,023
 assets, net
 Real estate held for development or sale           343,326,886    289,474,812
 Property and equipment, net                        34,567,530     36,281,168
 Advances to suppliers                              1,114,193      697,823
 Deposits on land use rights                        27,507,078     59,155,165
 Intangible asset, net                              28,736,931     42,453,473
 Goodwill                                           1,918,405      1,969,964
 Deferred financing costs                           765,257        1,142,715
     Total assets                         $ 615,409,864  $ 619,493,087
LIABILITIES
 Accounts payable                                 $ 42,182,920   $ 59,400,262
 Advances from customers                            50,099,123     45,441,402
 Accrued expenses                                   15,675,466     17,439,541
 Income tax payable                                 23,331,748     24,534,095
 Other taxes payable                                7,931,818      7,139,870
 Other payables                                     14,362,353     12,755,824
 Loans from employees                               30,265,105     25,759,453
 Loans payable                                      287,309,110    274,917,332
 Deferred tax liability                             14,400,496     14,782,118
    Total liabilities                               485,558,139    482,169,897
SHAREHOLDERS' EQUITY
 Common stock: $.001 par value, authorized
 100,000,000 shares;
    Issued 34,882,538 and 35,849,204,               34,882         35,849
    respectively
 Additional paid in capital                         51,480,460     51,347,620
 Treasury stock                                     (318,915)      (2,400,288)
 Statutory reserves                                 11,535,242     11,535,242
 Retained earnings                                  45,523,830     48,696,878
 Accumulated other comprehensive income             21,596,226     28,107,889
    Total shareholders' equity                      129,851,725    137,323,190
           Total liabilities and shareholders'    $ 615,409,864  $ 619,493,087
           equity
The accompanying notes are an integral part of these interim condensed
consolidated financial statements.





CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES

Unaudited Interim Condensed Consolidated Statements of Operations
For The Three Months Ended March 31, 2014 and 2013
                                    March 31, 2014          March 31, 2013
REVENUES
    Real estate sales               $    15,806,784         $   40,291,817
    Other revenue                        6,235,627              11,099,124
Total revenues                           22,042,411             51,390,941
COST OF REVENUES
    Cost of real estate sales            12,716,886             33,086,100
    Cost of other revenue                4,009,457              9,535,899
Total cost of revenues                   16,726,343             42,621,999
Gross margin                             5,316,068              8,768,942
OPERATING EXPENSES
    Selling, general and                 3,989,482              3,158,003
    administrative expenses
    Stock-based compensation             132,840                97,537
    Other expenses                       3,907                  59,982
    Financing expense                    1,394,530              1,446,786
Total operating expenses                 5,520,759              4,762,308
Write off of property                    563,710                -
(Loss)income before provision for        (768,401)              4,006,634
income taxes
    Provision for income taxes           17,036                 1,198,003
    Recovery of deferred income          (11,384)               (64,635)
    taxes
Provision for income taxes               5,652                  1,133,368
NET (LOSS) INCOME                   $    (774,053)          $   2,873,266
WEIGHTED AVERAGE SHARES OUTSTANDING
    Basic                                34,518,158             35,086,599
    Diluted                              34,518,158             35,086,599
NET (LOSS) INCOME PER SHARE
    Basic                           $    (0.02)             $   0.08
    Diluted                         $    (0.02)             $   0.08
The accompanying notes are an integral part of these interim condensed
consolidated financial statements.



CHINA HOUSING & LAND DEVELOPMENT INC. AND SUBSIDIARIES

Unaudited Interim Condensed Consolidated Statements of Cash Flows

For The Three Months Ended March 31, 2014 and 2013
                                               March 31,       March 31,
                                               2014            2013
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net (loss) income                            $ (774,053)     $ 2,873,266
  Adjustments to reconcile net income to cash provided
   by (used in) operating activities:
         Depreciation                            591,907         485,870
         Stock-based compensation                132,840         97,537
         Write off of property                   563,710         -
         Amortization of intangible assets       12,610,339      55,367
         Recovery of provision for deferred      (11,384)        (64,635)
         income taxes
      (Increase) decrease in assets:
         Accounts receivable                     (876,377)       (7,320,730)
         Construction in excess of billing       -               (657,272)
         Other receivable, prepaid expenses      (1,735,046)     (4,699,079)
         and other assets
         Real estate held for development or     (62,583,224)    14,768,453
         sale
         Advance to suppliers                    (443,760)       4,306
         Deposit on land use rights              30,665,151      -
         Deferred finance costs                  188,146         40,127
      Increase (decrease) in liabilities:
         Accounts payable                        (15,956,843)    (10,714,367)
         Advances from customers                 5,956,860       (3,058,201)
         Accrued expense                         (1,344,586)     5,577,855
         Other payables                          1,975,624       348,905
         Income and other taxes payable          426,456         2,804,031
           Net cash (used in) provided by        (30,614,240)    541,433
           operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property and equipment             (382,635)       (632,764)
           Net cash used in investing            (382,635)       (632,764)
           activities
CASH FLOWS FROM FINANCING ACTIVITIES:
  Change in restricted cash                      2,871,458       278,129
  Loans from external parties                    24,648,464      42,985,007
  Payments on loans payable                      (7,374,873)     (6,620,495)
  Loans from or repayment to employees, net      5,277,131       4,913,176
  Purchase of treasury stock                     (318,589)       -
           Net cash provided by financing        25,103,591      41,555,817
           activities
(DECREASE)/INCREASE IN CASH                      (5,893,284)     41,464,486
Effects on foreign currency exchange             (491,471)       132,798
CASH, beginning of period                        21,320,071      6,121,448
CASH, end of period                            $ 14,935,316    $ 47,718,732
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://public.viavid.com/player/index.php?id=109283
 
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