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

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

PR Newswire

XI'AN, China, Aug. 14, 2014

XI'AN, China, Aug. 14, 2014 /PRNewswire/ -- China Housing & Land Development,
Inc. ("China Housing" or the "Company"; Nasdaq: CHLN) today announced its
financial results for the quarter ended June 30, 2014.

Highlights for Q2 2014:

  oTotal revenue in the second quarter of 2014 was $44.1 million compared to
    $22.0 million in the first quarter of 2014 and $57.8 million in the second
    quarter of 2013.
  oTotal gross floor area ("GFA") sales were 30,408 sq. meters during the
    second quarter of 2014, compared with 20,416 sq. meters in the first
    quarter of 2014 and 48,439 sq. meters in the second quarter of 2013.
  oAverage residential selling price ("ASP") in the second quarter of 2014
    was RMB 6,493, compared with RMB 5,919 in the first quarter of 2014, and
    RMB 7,499 in the second quarter of 2013.
  oGross profit was $(816,509) in the second quarter of 2014 compared to $5.3
    million in the first quarter of 2014 and $17.6 million in the second
    quarter of 2013. Second quarter 2014 gross margin was (-1.9)%, compared
    with 24.1% in the first quarter of 2014 and 30.4% in the second quarter of
    2013.
  oSG&A expenses as a percentage of total revenue was 8.8%, from 18.1% in the
    first quarter of 2014 and 8.5% in the second quarter of 2013.
  oOperating loss was $6.6 million in the second quarter of 2014 compared to
    operating loss of $205 thousand in the first quarter of 2014, and
    operating income of $8.5 million in the second quarter of 2013.
  oNet loss attributable to the Company in the second quarter of 2014 was
    $6.8 million, or $(0.20) per diluted share, compared to a net loss of $774
    thousand, or $(0.02) per diluted share, in the first quarter of 2014 and
    net income of $5.9 million, or $0.17 per diluted share, in the second
    quarter of 2013.

Mr. Pingji Lu, China Housing's Chairman, commented, "While our second quarter
contract sales came within the high end of projections, our profitability was
impacted by revenue and cost adjustments at three of our projects as well as
an impairment charge. Five projects contributed to the majority of our sales
in the second quarter, led by our Park Plaza project. We also began to
recognize revenues from our Puhua Phase IV project."

"On a macro level, China's real estate market environment is slowing with both
sales and ASP's on the decline. For the remainder of this year, we expect
market conditions to remain challenging. In an effort to strengthen sales, we
are implementing new incentives, including lowering down payment requirements
for home buyers."

"As we look at the second half of the year, we will concentrate on reducing
our unit inventory and driving pre-sales at our Golden Bay and Puhua Phase IV
projects. We have also delayed the pre-sales start dates of our Park Plaza
Phase II and Ankang Project Phase II projects from the third quarter of this
year to 2015 in an effort to reduce expenses and conserve our balance sheet
until market conditions improve. Finally, we repurchased 131,600 shares
totaling $0.3 million in the second quarter."

Total revenue in the second quarter of 2014 increased 99.9% to $44.1 million
from $22.0 million in the first quarter of 2014 and decreased 23.7% from $57.8
million in the second quarter of 2013. Other revenue in the second quarter of
2014 was $3.3 million, compared to $6.2 million in the first quarter of 2014
and $7.0 million in the second quarter of 2013.

In the second quarter of 2014, the majority of the Company's real estate
revenue came from its Park Plaza, Ankang, Puhua Phase Two and Three projects.
Second quarter of 2014 contract sales totaled $31.7 million compared with
$19.8 million in the first quarter of 2014 and $59.0 million in the second
quarter of 2013. Total gross floor area ("GFA") sales were 30,408 sq. meters
during the second quarter of 2014, compared with 20,416 sq. meters in the
first quarter of 2014 and 48,439 sq. meters in the second quarter of 2013. The
Company's ASP in the second quarter of 2014 was RMB 6,493, compared with RMB
5,919 in the first quarter of 2014, and RMB 7,499 in the second quarter of
2013.

Gross profit for the three months ended June 30, 2014 was $(816,509),from
$5.3 million in the first quarter of 2014 and $17.6 million in the second
quarter of 2013. Gross profit margin for the three months ended June 30, 2014
was (1.9)%, compared to 24.1% in the first quarter of 2014 and the 30.4% in
the second quarter of 2013. The decrease of gross profit margin in the second
quarter of 2014 is due to the adjustment of the total estimated revenue and
cost of the Company's Puhua Phase II, Puhua Phase III and Park Plaza Phase I
projects as well as a $4.4 million impairment charge related to the Park Plaza
Phase I project.

SG&A expense was $3.9 million in the second quarter of 2014, compared to $4.0
million in the first quarter of 2014 and $4.9 million in the second quarter of
2013. SG&A expense as a percentage of total revenue was 8.8%, compared with
18.1% in the first quarter of 2014 and 8.5% in the second quarter of 2013. The
decrease in SG&A expense was mainly due to decreased advertising expenses
during the second quarter of 2014.

Operating loss in the second quarter of 2014 was $6.6 million, compared to
operating loss of $205 thousand in the first quarter of 2014, and operating
income of $8.5 million in the second quarter of 2013. The year-over-year
decrease was mainly due to reduced sales revenue and increased cost of sales.

Net loss attributable to China Housing in the second quarter of 2014 was $6.8
million, or ($0.20) per diluted share. This performance compares with net loss
of $(774) thousand million, or $(0.02) per diluted share, in the first quarter
of 2014 and net income of $5.9 million, or $0.17 per diluted share, in the
second quarter of 2013.

Sequential Quarterly Revenue Breakout Comparison

Project          Q2 2014                                            Q1 2014
                 Recognized Contract      GFA  ASP    Unsold  POC   Recognized   Contract GFA Sold  ASP
                 Revenue    Sales         Sold        GFA           Revenue      Sales
                 ($)        ($)           (m2) (RMB)  (m2)          ($)          ($)      (m2)      (RMB)
Projects Under Construction
Park Plaza      15,503,089   12,092,922 9,117  8,265  44,689  94.5% 4,984,679  3,937,986  2,811   8,549
Phase One
Puhua Phase     6,472,271    1,382,502  1,412  6,101  59,096  77.4% 2,663,265  1,963,774  1,788   6,700
Three
Puhua Phase     6,890,399    5,969,853  4,875  7,631  89,107  78.7% 1,872,393  1,919,787  1,515   7,731
Two-East Region
Ankang Phase    7,386,849    4,972,520  7,596  4,079  56,970  56.1% 5,269,189  5,184,245  7,860   4,025
One
Puhua Four      3,485,109    6,192,960  6,323  6,102  135,439 24.9% N/A        6,043,688  6,013   6,133
Projects Completed
PuhuaPhaseOne (284,182)    (284,182)  -      -      5,506   100%  677,091    421,314    189     13,629
Puhua Phase                                                   
Two-West
Region&New      616,066      616,066    566    6,780  30,459       (56,642)   98,430     107     5.600
Coast Line
                                                              100%
                                                              
JunJing III     309,952      309,952    259    7,445  647           396,809    236,812    133     10,844
                                                              100%
                                                              
JunJing I       433,310      433,310    259    10,407 4,107         -          -          -       -
                                                              100%
Other Income    3,254,400                                           6,235,627
Total           44,067,263   31,685,903 30,408 6,493                22,042,411 19,806,036 20,416  5,919
Q-o-Q Change    99.9%        60.0%      48.9%  9.7%                 (60.7%)    (36.1%)    (28.6%) (10.3%)

Total debt outstanding as of June 30, 2014 was $327.9 million compared with
$300.7 million on December 31, 2013. Net debt outstanding (total debt less
cash and restricted cash) as of June 30, 2014 was $208.6 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 62.7 percent on June
30, 2014 and 54.1 percent on December 31, 2013.

                           Q2 2014
                                     First
                           Unsold
Projects in Planning                 Pre-sales
                           GFA
                                     Scheduled
                           (m^2)
Golden Bay                 326,494   Q4 2014
Textile City               630,000   Q2 2016
Park Plaza- Phase II       60,057    Q3 2015
Ankang Project- Phase II   207,794   Q1 2015
Total projects in planning 1,224,345

Third Quarter 2014 Outlook

Total contract sales for the third quarter 2014 are expected to be in the
range of $22.5 million to $25.7 million, compared with $18.6 million in the
third 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 7:30 am ET on August 14, 2014.
Listeners may access the call by dialing +1-913-312-1301. To listen to the
live webcast of the event, please go to
http://public.viavid.com/player/index.php?id=110631. Listeners may access the
call replay, which will be available through August 21, 2014, by dialing
+1-858-384-5517; passcode: 2120628.

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. 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 June 30, 2014 and December 31, 2013


                                                 June 30,       December 31,

                                                 2014           2013
ASSETS
 Cash                                            $ 7,457,666    $ 21,320,071
 Cash - restricted                                 111,932,658    117,534,900
 Short-term investment                             21,537,169     -
 Accounts receivable, net of allowance for
 doubtful
     accounts of $580,020 and $594,382,            39,075,926     41,158,998
     respectively
 Construction in excess of billing                 2,056,063      2,106,975
 Other receivables, prepaid expenses and other     8,878,046      6,197,023
 assets, net
 Real estate held for development or sale          356,226,571    289,474,812
 Property and equipment, net                       42,075,148     36,281,168
 Advances to suppliers                             1,579,662      697,823
 Deposits on land use rights                       16,280,063     59,155,165
 Intangible asset, net                             23,464,677     42,453,473
 Goodwill                                          1,922,363      1,969,964
 Deferred financing costs                          724,978        1,142,715
     Total assets                                $ 633,210,990  $ 619,493,087
LIABILITIES
 Accounts payable                                $ 58,336,793   $ 59,400,262
 Advances from customers                           44,010,242     45,441,402
 Accrued expenses                                  16,544,275     17,439,541
 Income tax payable                                23,310,900     24,534,095
 Other taxes payable                               9,751,086      7,139,870
 Other payables                                    14,633,114     12,755,824
 Loans from employees                              30,809,108     25,759,453
 Loans payable                                     297,137,495    274,917,332
 Deferred tax liability                            14,390,811     14,782,118
     Total liabilities                             508,923,824    482,169,897
SHAREHOLDERS' EQUITY
 Common stock: $.001 par value, authorized
 100,000,000 shares; Issued 34,848,158 and
 35,849,204, respectively
                                                   34,848         35,849
 Additional paid in capital                        52,483,510     51,347,620
 Treasury stock                                    (115,759)      (2,400,288)
 Statutory reserves                                11,535,242     11,535,242
 Retained earnings                                 38,239,701     48,696,878
 Accumulated other comprehensive income            22,109,624     28,107,889
     Total shareholders' equity                    124,287,166    137,323,190
     Total liabilities and                   $ 633,210,990  $ 619,493,087
     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 Condensed Consolidated Statements of Operations

For The Three and Six Months Ended June 30, 2014 and 2013


                       3 Months       3 Months      6 Months       6 Months
                       June 30,       June 30,      June 30,       June 30,
                       2014           2013          2014           2013
REVENUES
Real estate sales      $ 40,812,863   $ 50,757,630  $ 56,619,647   $ 91,049,447
Other revenue            3,254,400      6,996,473     9,490,027      18,095,597
Total revenues           44,067,263     57,754,103    66,109,674     109,145,044
COST OF SALES
Cost of real estate      43,491,234     35,950,062    56,208,120     69,036,162
sales
Cost of other revenue    1,392,538      4,232,921     5,401,995      13,768,820
Total cost of            44,883,772     40,182,983    61,610,115     82,804,982
revenues
Gross margin             (816,509)      17,571,120    4,499,559      26,340,062
OPERATING EXPENSES
Selling, general, and
administrative           3,876,829      4,901,936     7,866,311      8,059,940
expenses
Stock-based              1,003,464      1,006,736     1,136,304      1,104,273
compensation
Otherexpenses           10,113         390,567       14,020         450,550
Financing expense        939,852        2,807,094     2,334,382      4,253,880
Total operating          5,830,258      9,106,333     11,351,017     13,868,643
expenses
Writeoffofproperty    -                            563,710
Loss before
provisionforincome     (6,646,767)    8,464,787     (7,415,168)    12,471,419
taxes
                         
Provision for current
income taxes                           2,660,911     145,458        3,858,913

                         128,422
Recovery of provision    
for deferred taxes                      (50,013 )     (22,532)       (114,648 )
                         (11,148)
Provisionforincome     117,274        2,610,898     122,926        3,744,265
taxes
NET (LOSS) INCOME      $ (6,764,041)  $ 5,853,889   $ (7,538,094)  $ 8,727,154
WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic                    34,497,920     35,086,599    34,560,976     35,086,599
Diluted                  34,497,920     35,244,724    34,560,976     35,166,098
NET (LOSS) INCOME PER
SHARE
Basic                  $ (0.20)       $ 0.17        $ (0.22)       $ 0.25
Diluted                $ (0.20)       $ 0.17        $ (0.22)       $ 0.25
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 Comprehensive (Loss) Income

For The Three and Six Months Ended June 30, 2014 and 2013


                                   3 Months        3 Months      6 Months         6 Months
                                   June 30,        June 30,      June 30,         June 30,
                                   2014            2013          2014             2013
NET INCOME (LOSS)                  $ (6,764,041)   $ 5,853,889   $ (7,538,094)    $ 8,727,154
OTHERCOMPREHENSIVEINCOME(LOSS)
Gain (Loss) on foreign exchange     513,397         2,691,556     (5,998,266)      3,419,601
COMPREHENSIVE (LOSS) INCOME        $ (6,250,643)   $ 8,545,445   $ (13,536,359)   $ 12,146,755
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 Six Months Ended June 30, 2014 and 2013


                                              June 30,        June 30,

                                              2014            2013
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net (loss) income                            $ (7,538,094)   $ 8,727,154
 Adjustments to reconcile net income to cash provided by
 (used in) operating activities:
         Depreciation                           1,194,943       1,307,424
         Stock-based compensation               1,136,304       1,104,273
         Loss on disposal of property and       563,710         -
         equipment
         Amortization of deferred financing     -               40,071
         costs
         Amortization of intangible assets      17,885,532      111,356
         Recovery of provision for deferred     (22,532)        (114,648 )
         income taxes
     (Increase) decrease in assets:
         Accounts receivable                    1,065,542       (20,188,803 )
         Construction in excess of billing      -               559,202
         Other receivable, prepaid expenses     (2,712,898)     (1,019,295)
         and other assets
         Real estate held for development or    (74,720,712)    12,438,798
         sale
         Advance to suppliers                   (905,607)       921,102
         Deposit on land use rights             41,899,123      -
         Deferred finance costs                 229,850         -
     Increase (decrease) in liabilities:
         Accounts payable                       39,088          (3,206,184 )
         Advances from customers                (208,062)       (3,842,509 )
         Accrued expense and interests          (510,917)       (5,140,839 )
         Other payables                         2,215,782       1,132,342
         Income and other taxes payable         2,177,039       5,464,411
               Net cash used in operating       (18,208,909)    (1,706,145 )
               activities
CASH FLOWS FROM INVESTING ACTIVITIES:
 Purchase of property and equipment             (8,387,891)     (1,310,211 )
 Purchase of short-term investment              (21,537,169)    -
               Net cash used in investing       (29,925,060)    (1,310,211 )
               activities
CASH FLOWS FROM FINANCING ACTIVITIES:
 Change in restricted cash                      2,809,595       7,297
 Loans from banks                               38,586,481      89,372,766
 Loans from external parties                    10,006,351      42,985,007
 Payments on loans payable                      (21,818,551)    (30,019,910 )
 Loans from or repayment to employees, net      5,756,562       (5,328,304 )
 Purchase of treasury stock                     (635,970)       -
               Net cash provided by             34,704,468      97,016,856
               financing activities
INCREASE IN CASH                                (13,429,501)    94,000,500
Effects on foreign currency exchange            (432,904)       838,852
CASH, beginning of period                       21,320,071      6,121,448
CASH, end of period                           $ 7,457,666     $ 100,960,800
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
 
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