SHENZHEN, China, Nov. 4, 2021 /PRNewswire/ -- Nam Tai
Property Inc. ("Nam Tai" or the "Company") (NYSE Symbol: NTP) today
announced its unaudited financial results for the quarter ended
September 30, 2021.
SUMMARY
PRC government continued to roll out restrictive measures to
curb speculation in the domestic property market in the reporting
period. The real estate sector is experiencing an extremely
challenging financing and operating environment, and there have
been a number of high profile defaults reported in the media. Loans
to the real estate sector decreased 8.4% year-on-year for the first
nine months of 2021. The Company is also facing similar
difficulties, including a slowdown in demand, declines in housing
and office price and liquidity crunch.
Amid the challenging operating environment, in the third quarter
of 2021, the Company recorded progress both financially and
operationally, including the following: (i) the revenue increased
by $4.7 million year-on-year to reach
$5.8 million; (ii) the pre-sale
permit for Nam Tai Longxi was obtained and the Company attracted
customers to purchase a total of 78 units; (iii) the occupancy rate
of Nam Tai Inno Park increased by 10 percentage points
quarter-on-quarter to 69%; (iv) the construction of Nam Tai
Technology Center is underway and the Company completed the masonry
work on all the four towers; (v) a loan facility of $164 million was secured from Bank of
Guangzhou, and (vi) amounts due to
the Bank of Beijing and the
Industrial Bank were repaid in full.
With the success in securing new financing from Bank of
Guangzhou Co., Ltd., the Company is confident it will restore the
normal operations of the Company and its subsidiaries gradually.
The board of directors and management will make every endeavor to
act for the best interest of the Company and all shareholders.
Highlights:
- Revenue was $5.8 million in the
third quarter of 2021, an increase of $4.7
million year-on-year.
- Net loss from operations was $3.3
million in the third quarter of 2021, reduced from net loss
from operations of $5.8 million in
the third quarter of 2020.
- Consolidated net loss was $4.3
million in the third quarter of 2021, reduced from
consolidated net loss from operations of $4.9 million in the third quarter of 2020.
- Real estate properties under development, net was $317.9 million as of September 30, 2021, an increase of $5.7 million from the end of 2020.
- Real estate properties held for lease, net was $151.7 million as of September 30, 2021, an increase of $59.5 million from the end of 2020.
In addition:
- The Company (through its wholly owned indirect subsidiary, Nam
Tai Investment (Shenzhen) Co.,
Ltd. ("Nam Tai Investment")) secured a loan facility of up to
RMB1.06 billion (approximately
$164 million) from Shenzhen Branch of Bank of Guangzhou Co., Ltd.
("Bank of Guangzhou") for a term
of five years. As of September 30,
2021, Nam Tai Investment drew down approximately
RMB575 million (approximately
$88.6 million) under such loan
facility.
- The Company repaid the amount due to the Shenzhen Branch of Bank of Beijing Co., Ltd
("Bank of Beijing") and
Shenzhen Branch of Industrial Bank
Co., Ltd. ("Industrial Bank") in full in September 2021.
- The occupancy rate of Nam Tai Inno Park reached 69% by the end
of the third quarter of 2021, an increase of 10 percentage points
quarter-on-quarter.
- The Company commenced the pre-sale of units of Nam Tai • Longxi
in August 2021 and received earnest
money from purchasers for a total of 78 units, or 9,144 square
meters in gross floor area as of September
30, 2021.
- The Company has completed the masonry work for Towers A, B, C
and D of Nam Tai Technology Center. The Company is conducting
interior decoration for Towers A, B, C and working on plastering
for Tower D.
- In October 2021, Nam Tai Inno
Park was awarded the Gold Winner for lighting design of MUSE Design
Awards, which represents a strong endorsement of the Company's
commitment to high-quality technology park.
The following tables set forth key highlights of the financial
information for the periods indicated:
(In thousands of US dollars, except per share data,
percentages and as otherwise stated)
|
|
Quarterly
Results
|
|
|
Nine Months
Results
|
|
|
|
Q3
2021
|
|
|
Q3
2020
|
|
|
YoY(%)(a)
|
|
|
9M
2021
|
|
|
9M
2020
|
|
|
YoY(%)(a)
|
|
Revenue
|
|
$
|
5,791
|
|
|
$
|
1,067
|
|
|
|
442.7%
|
|
|
$
|
84,385
|
|
|
$
|
2,609
|
|
|
|
3134.4%
|
|
Gross
profit
|
|
$
|
2,141
|
|
|
$
|
241
|
|
|
|
788.4%
|
|
|
$
|
52,580
|
|
|
$
|
483
|
|
|
|
10786.1%
|
|
Net (loss) income
from operations
|
|
$
|
(3,274)
|
|
|
$
|
(5,775)
|
|
|
|
|
|
|
$
|
32,660
|
|
|
$
|
(13,986)
|
|
|
|
|
|
% of
revenue
|
|
|
(56.5))
|
%
|
|
|
(541.2)
|
%
|
|
|
|
|
|
|
38.7
|
%
|
|
|
(536.1)
|
%
|
|
|
|
|
per share
(diluted)
|
|
$
|
(0.08)
|
|
|
$
|
(0.15)
|
|
|
|
|
|
|
$
|
0.83
|
|
|
$
|
(0.36)
|
|
|
|
|
|
Consolidated net
(loss) income
|
|
$
|
(4,311)
|
|
|
$
|
(4,850)
|
|
|
|
|
|
|
$
|
21,028
|
|
|
$
|
(11,810)
|
|
|
|
|
|
% of
revenue
|
|
|
(74.4)
|
%
|
|
|
(454.5)
|
%
|
|
|
|
|
|
|
24.9
|
%
|
|
|
(452.7)
|
%
|
|
|
|
|
Basic (loss) income
per share
|
|
$
|
(0.11)
|
|
|
$
|
(0.12)
|
|
|
|
(8.3)%
|
|
|
$
|
0.54
|
|
|
$
|
(0.30)
|
|
|
|
—
|
|
Diluted (loss) income
per share
|
|
$
|
(0.11)
|
|
|
$
|
(0.12)
|
|
|
|
(8.3)%
|
|
|
$
|
0.54
|
|
|
$
|
(0.30)
|
|
|
|
—
|
|
Weighted average
number of shares ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
39,258
|
|
|
|
39,072
|
|
|
|
|
|
|
|
39,227
|
|
|
|
38,950
|
|
|
|
|
|
Diluted
|
|
|
39,258
|
|
|
|
39,072
|
|
|
|
|
|
|
|
39,288
|
|
|
|
38,950
|
|
|
|
|
|
Notes:
(a) Percentage change is not
applicable if either of the two periods contains a loss or no
amount.
|
|
Financial
Position
|
|
|
|
As of September
30,
|
|
|
As of December
31,
|
|
|
As of September
30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2020
|
|
Cash and cash
equivalents(a)
|
|
$
|
70,378
|
|
|
$
|
60,980
|
|
|
$
|
72,075
|
|
Short-term
investments(b)
|
|
$
|
51,374
|
|
|
$
|
150,150
|
|
|
$
|
—
|
|
Restricted
cash
|
|
$
|
114,892
|
|
|
$
|
2,065
|
|
|
$
|
1,975
|
|
Real estate
properties under development, net
|
|
$
|
317,939
|
|
|
$
|
312,185
|
|
|
$
|
385,227
|
|
Real estate
properties held for sales type lease
|
|
$
|
7,434
|
|
|
$
|
31,558
|
|
|
$
|
—
|
|
Real estate
properties held for lease, net
|
|
$
|
151,705
|
|
|
$
|
92,207
|
|
|
$
|
30,375
|
|
Property, plant and
equipment, net
|
|
$
|
25,788
|
|
|
$
|
26,568
|
|
|
$
|
25,779
|
|
Total
assets
|
|
$
|
770,779
|
|
|
$
|
701,210
|
|
|
$
|
536,561
|
|
Amount due to a
shareholder
|
|
$
|
146,869
|
|
|
$
|
146,869
|
|
|
$
|
—
|
|
Current portion of
long term bank loans
|
|
$
|
109,539
|
|
|
$
|
122,883
|
|
|
$
|
6,639
|
|
Accounts
payable
|
|
$
|
70,672
|
|
|
$
|
61,559
|
|
|
$
|
52,573
|
|
Advance from
customers
|
|
$
|
5,564
|
|
|
$
|
69,722
|
|
|
$
|
122,012
|
|
Contract
liabilities
|
|
$
|
14,173
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Long term bank
loans
|
|
$
|
88,636
|
|
|
$
|
—
|
|
|
$
|
126,565
|
|
Total shareholders'
equity
|
|
$
|
271,535
|
|
|
$
|
248,828
|
|
|
$
|
211,761
|
|
Total number of
common shares issued
|
|
|
39,258
|
|
|
|
39,198
|
|
|
|
39,198
|
|
Notes:
(a) Cash and cash equivalents
included all cash balances and certificates of deposit having a
maturity date of three months or less upon
acquisition.
(b) Short term investments
included investments with original maturities of three months and
less than 12 months, and investments that were expected to be
realized in cash in the next 12 months. As of September 30, 2021, the Company had short term
investments of principal amount of $51.4
million, which were from the proceeds of a private placement
completed on October 5, 2020 (the
"Private Placement"), investing into a supply chain finance fund
managed by Credit Suisse (the "Fund") with underlying notes insured
by insurance companies with a credit rating of at least A by
Standard & Poor's or A2 by Moody's, which was terminated with
effect as of March 4, 2021 due to
some of the fund's assets being subject to considerable valuation
uncertainty and reduced availability of insurance coverage for new
investments, and was subsequently in liquidation. The Company was
notified by Credit Suisse that the liquidation proceeds were to be
repaid by instalments.
SUPPLEMENTARY INFORMATION (UNAUDITED) IN THE
THIRD QUARTER OF
2021
Key Highlights of Financial Position
|
|
As of September
30,
|
|
|
As of December
31,
|
|
As of September
30,
|
|
|
|
|
2021
|
|
|
2020
|
|
2020
|
|
|
Current
ratio(a)
|
|
1.11
|
|
|
0.87
|
|
1.01
|
|
|
Debt
ratio(b)
|
|
64.8
|
%
|
|
64.5
|
%
|
60.5
|
%
|
|
Return on
equity(c)
|
|
8.1
|
%
|
|
6.8
|
%
|
(7.4)
|
%
|
|
Ratio of total
liabilities to total equity
|
|
1.84
|
|
|
1.82
|
|
1.53
|
|
|
Notes:
(a) Current ratio is calculated
with all current assets divided by all current liabilities.
(b) Debt ratio is calculated with all total
liabilities divided by total
assets.
(c) Return on equity is calculated
with consolidated net income (loss) divided by average of total
shareholders' equity at beginning and end of the period.
FINANCIAL RESULTS
Revenue
Revenue for the third quarter of 2021 was $5.8 million, compared to $1.1 million for the third quarter of 2020.
Revenue for the third quarter of 2021 mainly consisted of the lease
income of $1.4 million recognized
following the delivery of the dormitory units and operating lease
income of $2.2 million from
Nam Tai Inno Park, operating lease
income of $1.0 million from existing
buildings located on the sites of Inno Valley, Wuxi, Shanghai, and the leased space at Nam Tai •
Tang Xi Technology Park, and property service income of
$1.2 million. Revenue for the third
quarter of 2020 mainly consisted of rental income of $0.6 million from existing factory buildings
located on the sites of Inno Valley and Wuxi, $0.2 million from Nam Tai • U-Creative Space
(Lujiazui) and Nam Tai • Tang Xi Technology Park, and $0.1 million from Nam Tai
Inno Park.
Gross Profit
Gross profit for the third quarter of 2021 was $2.1 million compared to $0.2 million in the third quarter of 2020. Gross
profit for the third quarter of 2021 mainly consisted of revenue of
$5.8 million, offset by cost of
$3.7 million for the period. Gross
profit for the third quarter of 2020 mainly consisted of revenue of
$1.1 million, offset by cost of
$0.8 million for the period.
Net (Loss) Income from Operations
Net loss from operations for the third quarter of 2021 was
$3.3 million, compared to net loss
from operations of $5.8 million for
the third quarter of 2020. Net loss from operations for the third
quarter of 2021 mainly consisted of gross profit of $2.1 million, offset in part by general and
administrative expenses of $3.7
million and selling and marketing expenses of $1.7 million for the period. Net loss from
operations for the third quarter of 2020 mainly consisted of
general and administrative expenses of $3.8
million and selling and marketing expenses of $2.2 million, offset in part by gross profit of
$0.2 million for the period. The
decrease in selling and marketing expenses of $0.5 million in the third quarter of 2021 was
mainly due to the decrease in marketing and commission fees.
Consolidated Net Income (Loss)
Consolidated net loss for the third quarter of 2021 was
$4.3 million, compared to
consolidated net loss of $4.9 million
for the third quarter of 2020. Consolidated net loss for the third
quarter of 2021 mainly consisted of net loss from operations of
$3.3 million and other expenses of
$1.8 million, offset in part by
interest income of $0.1 million and
income tax benefits of $0.6 million.
Consolidated net loss for the third quarter of 2020 mainly
consisted of net loss from operations of $5.8 million, which was offset in part by
interest income of $0.3 million from
time deposits, deferred income tax credit of $0.6 million and other net income of $0.04 million.
Cash and Cash Equivalents
Cash and cash equivalents increased by $9.4 million in the nine months of 2021 from
$61.0 million as of December 31, 2020 to $70.4
million as of September 30,
2021. The increase was primarily attributable to net cash
provided by investing activities of $98.3
million and financing activities of $75.2 million, offset by net cash used in
operating activities of $52.3
million, an exchange rate effect of $1.0 million and the increase in restricted cash
of $112.8 million. The net cash
provided by investing activities was primarily attributable to
proceeds from the redemption and distribution of short term
investments of $98.8 million in the
first nine months of 2021.
Restricted Cash
Restricted cash increased by $112.8
million from $2.1 million as
of December 31, 2020 to $114.9 million as of September 30, 2021, because the Company's lending
banks have restricted the remittance from the bank accounts of some
of the Company's subsidiaries in the PRC in connection of the
freezing orders issued by the relevant PRC courts regarding some
lawsuits filed by the Company's suppliers in the PRC and an
injunctive order was imposed on the Company by the High Court of
Justice of the British Virgin
Islands of the Eastern Caribbean Supreme Court in
March 2021, which has restricted the
Company from dealing with the proceeds raised from the Private
Placement. The Company repaid the amount due to the Bank of
Beijing and Industrial Bank in
September 2021, and relevant bank
accounts have been released.
Contract Assets
Contract assets were $0.05 million
as of September 30, 2021, which was
the prepaid commission for Nam Tai • Longxi.
Real Estate Properties under Development, Net
Real estate properties under development, net increased by
$5.7 million from $312.2 million as of December 31, 2020 to $317.9 million as of September 30, 2021, primarily attributable to the
increase of $29.0 million for the
construction of Nam Tai Technology Center, $21.0 million for the construction of Nam Tai •
Longxi, partially offset by the decrease of $45.8 million for the construction of Nam Tai
Inno Park. During the nine months of 2021, the Company completed
Tower 3 and 5 of Nam Tai Inno Park which was then transferred to
real estate properties held for lease, net.
Real Estate Properties Held for Sales Type Lease
Real estate properties held for sales type lease are stated at
the lower of carrying amounts or fair value less selling costs.
Real estate properties held for sales type lease decreased by
$24.2 million from $31.6 million as of December 31, 2020 to $7.4
million as of September 30,
2021. The decrease was mainly due to delivery of part of
Towers 8, 9 and 10 during the nine months of 2021.
Real Estate Properties Held for Lease, Net
Real estate properties held for lease, net are recorded at cost
less accumulated depreciation. Real estate properties held for
lease, net increased by $59.5 million
from $92.2 million as of December 31, 2020 to $151.7 million as of September 30, 2021. The increase was mainly due
to the transfer of Tower 3 and 5 of Nam Tai Inno Park from real
estate properties under development to real estate properties held
for lease during the nine months of 2021.
Accounts Payable
Accounts payable increased by $9.1
million from $61.6 million as
of December 31, 2020 to $70.7 million as of September 30, 2021. The increase was mainly due
to the increase of project payable of $3.6
million, $0.01 million and
$5.7 million for Nam Tai Technology
Center, Nam Tai Inno Park and Nam
Tai • Longxi, respectively, offset partially by the decrease of
project payable of $0.2 million for
other subsidiaries.
Advance from Customers
Advance from customers decreased by $64.1
million from $69.7 million as
of December 31, 2020 to $5.6 million as of September 30, 2021. The decrease was mainly
attributed to the recognition of revenue of $74.8 million from the prepaid rent for the units
delivered to customers of Nam Tai Inno Park during the period,
offset partially by $10.7 million of
rent and other fees received in advance during the period.
Contract liabilities
Contract liabilities were $14.2
million as of September 30,
2021, which was comprised of advance payment from customers
for Nam Tai • Longxi.
Current Portion of Long Term Bank Loans
The current portion of long term bank loans decreased by
$13.3 million from $122.9 million as of December 31, 2020 to $109.5 million as of September 30, 2021, due to loan repayments of
$14.2 million and exchange loss of
$0.8 million as of September 30, 2021. In March 2021, the Company received demand letters
from Bank of China, Bank of
Beijing, Industrial Bank, and
Xiamen International Bank (the "Lending Banks"), regarding payment
in full of amounts due under the respective loan agreements with
the banks. Following the demand letters, the Lending Banks have
restricted the remittance from the accounts of the subsidiaries of
the Company in their banks in the PRC. All bank borrowings were
re-classified as current liabilities as of December 31, 2020. The Company repaid the amount
due to the Bank of Beijing and
Industrial Bank in September 2021.
The Company continues to negotiate with the Lending Banks.
Long Term Bank Loans
Long-term bank loans were $88.6
million as of September 30,
2021, which was mainly due to the withdrawal of $88.6 million from Bank of Guangzhou.
Liquidity and Capital Resources
As of September 30, 2021, the
Company had a total cash and cash equivalents of $70.4 million. As of December 31, 2020, the Company had a total cash
and cash equivalents of $61.0
million.
Going Concern
The unaudited consolidated financial information of the Company
for the third quarter of 2021 has been prepared on the assumption
that the Company will continue as a going concern which
contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business. As of September 30, 2021, the Company had current
portion of long term bank loan of $109.5
million which, among other conditions and uncertainties,
raised substantial doubt about its ability to continue as a going
concern.
According to the Company's announcement dated September 14, 2021 Nam Tai Investment has entered
into a loan agreement with Bank of Guangzhou for a loan facility of up to
RMB1.06 billion (approximately
$164 million) with a five- year term.
As of September 30, 2021, Nam Tai
Investment drew down approximately RMB575
million (approximately $88.6
million) under such loan facility.
However, there are uncertainties pertaining to the management of
the Company as a result of a special meeting of shareholders
ordered to be convened on November 30,
2021. For more information, see "Recent Developments –
Dispute with IsZo Capital LP". The current board of directors and
management of the Company are committed to taking actions to
preserve the best interests of all shareholders.
Please see the Company's Condensed Consolidated Statements of
Comprehensive Income for further details. The information contained
herein has also been published on the Company's website at
https://www.namtai.com/quarterly/index.html.
BUSINESS OVERVIEW
Leasing and Pre-sale Progress
As of September 30, 2021, the
Company had leasable area of approximately 365,000 square meters,
of which around 85% was located in Shenzhen and 15% was located in Wuxi and
Shanghai. The occupancy rate of
the Company's Shenzhen projects
reached approximately 67%, and that of the Company's Wuxi and
Shanghai projects reached
approximately 99% by the third quarter of 2021. The occupancy rate
of Nam Tai Inno Park was 69%, an increase of 10 percentage points
from the quarter ended June 30, 2021.
The Company attracted 39 new corporate tenants to settle in the
Inno Park in the third quarter of 2021, mostly from healthcare,
technology and related industries. The Company will continue to
promote the leasing of the industrial offices and commercial spaces
of Nam Tai Inno Park.
The Company (through its subsidiary) obtained the pre-sale
permits for Towers 1, 2 and 6 of Nam Tai • Longxi on July 30, 2021 and commenced the pre-sale of the
first batch of 260 residential units which are equivalent to 27,899
square meters in gross floor area on August
4, 2021. As of September 30,
the Company received earnest money from purchasers for a total of
78 units, or approximately 9,144 square meters in gross floor area.
Although the Company will continue to make every endeavor to
facilitate the pre-sale amid the liquidity issues, a success of the
pre-sale is not guaranteed. Further, there is no assurance that the
Company will receive payments regarding the pre-sale in a timely
manner from the purchasers and/or their respective mortgagees,
which may adversely affect the Company's liquidity and financial
condition.
Projects
|
|
Leasable Area as
of September 30, 2021
|
Leased Area as of
September 30, 2021
|
Occupancy
Rate
|
Shenzhen
|
|
310,193
|
207,665
|
67%
|
Nam Tai Inno
Park
|
|
264,337
|
181,096
|
69%
|
Nam Tai Inno
Valley
|
|
38,270
|
19,814
|
52%
|
Nam Tai • Tang Xi
Technology Park
|
|
7,586
|
6,755
|
89%
|
Wuxi &
Shanghai
|
|
54,809
|
54,315
|
99%
|
Wuxi
facilities
|
|
50,828
|
50,828
|
100%
|
Nam Tai • U-Creative
Space (Lujiazui)
|
|
3,981
|
3,487
|
88%
|
Total
|
|
365,002
|
261,980
|
72%
|
Project Construction and Development Progress
- For Nam Tai Technology Center, the masonry work for Towers A,
B, C and D has been completed. Currently, the Company is conducting
interior decoration for Towers A, B, C and working on plastering
for Tower D. The pre-sale permit for the project has not been
obtained.
- For Nam Tai Inno Valley, the
Company is in the process of obtaining approval for the Company's
urban renewal application. Before obtaining the approval from the
local authorities, the Company will continue to lease the units in
Inno Valley for short-term tenancy. The occupancy rate of Inno
Valley was 52% as of September 30,
2021.
- For Nam Tai • Longxi, the main structures of Towers 1, 2 and 6
was capped and masonry work is under way while the main structures
of Towers 3, 4 and 5 are under construction.
Industrial Operation Progress
- In the third quarter of 2021, the Company continued to
implement a comprehensive industry chain model and provided
value-added services to the Company's corporate tenants through a
number of industry events, which covered talent recruitment,
technology facilitation, financing and policy consulting, aiming to
support the growth of the Company's corporate tenants and the
technology community.
- In respect of talent recruitment, the Company arranged a
campaign with the theme "Month for Talent Service" in September 2021, under which a number of relevant
activities were arranged to support the Company's corporate tenants
in hiring talents and retaining employees. For example, in
cooperation with Tongdao Liepin Group, the Company conducted a live
webcast to help recruitment for 25 high-end job openings,
attracting more than 12,000 online participants in September 2021.
- In respect of technology facilitation, in August 2021, the Company established the "QATIC
Lean Production Empowerment Center" (in collaboration with Shenzhen
Anche Shenghui Testing Technology Co., Ltd, a company listed on
Shenzhen Stock Exchange), which as a platform will provide the
Company's corporate tenants with reliability and failure analysis
services for electronic components and product quality improvement
services. In the same month, the Company built the "Biological
Product Research and Development Platform" jointly with Shenzhen
Tuopu Biotechnology Co., Ltd. and Shenzhen Research Institute of
Xiamen University to provide
biomedical enterprises with fundamental research and technical
services involving synthetic biology.
- The Company's unique industrial service strategy and
exceptional performance have been highly recognized by the local
authorities. During the third quarter of 2021, a number of
officials from the local authorities, including the Deputy
Secretary of Guangming District Committee and members of the
Guangming District Standing Committee, visited Nam Tai Inno Park and the branch of Guangming
District Administration Service Center and praised the achievements
of the Company's industrial services and corporate tenant
attraction.
Awards
The Company is pleased to announce that in September 2021 Nam Tai Inno Park was awarded Gold
Winner in lighting design of MUSE Design Awards, an award system
created by the International Awards Association with a mission to
honor, promote and encourage creativity. The awarding institution
commented on the nighttime view of Inno Park, that "Combined with
the overall architectural features, referring to many landmarks as
the design intention, fully considering the commercial, office and
residential night lighting design needs, precise control of color
temperature, once again to achieve the state of light but not
light." This award represents a strong endorsement of the Company's
commitment to high-quality technology park and acknowledges the
efforts Nam Tai has made on this important project.
Real Estate Market Update
China's property sector was
cooling down in terms of sales and investment in the third quarter
of 2021. The nationwide transacted gross floor area and the sales
in September 2021 recorded a drop of
13% and 15.8% year-on-year, respectively. With respect to the real
estate development expenditures, it grew by 8.8% for the first nine
months of 2021 year-on-year, which was the lowest this year.
The performance of office and residential markets vary. The
absorption of office space in gross floor area in Shenzhen increased by 86.5% quarter-on-quarter
to approximately 307,000 square meter, which drove down the vacancy
rate by 2.6 percentage points to 23.9%, according to a research
institution's report. With respect to Dongguan's residential market, there was a
decline in supply with stiffened selling prices in the third
quarter of 2021. The transacted gross floor area for new
residential units in Dongguan City
decreased by 53.8% to approximately 1.09 million square meter while
the average selling price increased by 12% to approximately
RMB27,600 per square meter.
From the policy perspective, in order to promote the healthy
development of the housing market, the PRC government has been
rolling out restrictive measures with the objective to curb the
rapid price increase in housing and speculation activities. In the
first half of 2021, PRC government implemented two policies in
relation to real estate financing, among others, to regulate the
financing activities of real estate developers, which are the
"Three Red Lines" policy (liability to asset ratio (excluding
advance receipt) being less than 70%, net gearing ratio being less
than 100% and cash to short-term debt ratio being more than 1
multiple) and the "Two Red Lines" concentration policy for
financial institutions, respectively. Under these policies, the
domestic real estate loans for the first nine months of 2021
dropped by 8.4% year-on-year to RMB1.877
trillion.
In Dongguan's housing market,
local government has also promulgated restrictive measures to curb
the rapid rise in housing price. On August
2, 2021, Dongguan Housing and Urban-Rural Development Bureau
issued the Notice on Further Regulating and Controlling the Real
Estate Market to regulate the real estate market in terms of
tightening residential unit buyer's restrictions, monitoring
capital inflow to the property market, strengthening real estate
tax supervision and regulation, establishing a second-hand housing
transaction guidance price system, and strengthening commodity
housing sales supervision. Further, in September 2021, Dongguan Natural Resources Bureau
issued the Notice on Further Strict Bidding for Residential Land
which stipulated that measures will be strictly carried out to
examine the qualifications of land purchasers and strengthen the
examination of the sources of funds for land purchase. In addition,
in October 2021, Dongguan Municipal
Bureau of Housing and Urban-Rural Development issued the Notice on
the Establishment of a Mechanism for Issuing Reference Prices of
Second-hand Housing Transactions, which stipulated that relevant
institutions involved in second-hand housing transactions should
take the reference prices of second-hand housing transactions as
one of the reference bases for business development.
RECENT DEVELOPMENTS
Financing Update
According to the Company's announcement dated September 14, 2021, Nam Tai Investment has
entered into a loan agreement with Bank of Guangzhou for a loan facility of up to
RMB1.06 billion (approximately
$164 million) with a five- year term.
As of September 30, 2021, Nam Tai
Investment drew down approximately RMB575
million (approximately $88.6
million) under such loan facility.
In addition, the Company repaid the amount due to the Bank of
Beijing and Industrial Bank in
full in September 2021. The Company
will continue its efforts to cure the defaults with other existing
lenders and address the Company's liquidity issues
progressively.
Dispute with IsZo Capital LP
On October 4, 2021, the
Eastern Caribbean Court of Appeal
in the British Virgin Islands (the
"Court of Appeal") handed down a judgment (the "Appeal Judgment")
dismissing the Company's appeal against the BVI Commercial Court's
finding that, among other things, the Private Placement was void.
The Court of Appeal upheld the Company's appeal against the finding
of the BVI Commercial Court that the Company's directors acted in
breach of section 120(1) of the BVI Business Companies Act 2004.
Further, the Court of Appeal ordered the Company to hold a special
meeting of shareholders regarding the removal and appointment of
directors on November 30, 2021 (the
"Proposed Special Meeting").
A consequential hearing regarding the Appeal Judgment was held
on October 6, 2021 at which the Court
of Appeal stayed its order directing the holding of the
Proposed Special Meeting on condition that the Company file any
application which it determined to make by October 18, 2021 for: (i) conditional leave to
appeal to the Judicial Committee of the Privy Council of the
United Kingdom (the "Privy
Council"); (ii) a stay of execution to stay the Proposed Special
Meeting pending the judgment on the Company's appeal to the Privy
Council; and (iii) a variation of the order of the Court of Appeal
dated October 4, 2021 (the "Three
Applications"). Accordingly, the Company filed the Three
Applications to the Court of Appeal on October 18, 2021 as directed. Further, on
October 22, 2021, IsZo Capital LP
filed application to the Court of Appeal for conditional leave to
cross appeal to the Privy Council ("IsZo's Application"). The
hearing by the Court of Appeal for the Three Applications and
IsZo's Application is scheduled for November
8, 2021.
Supply Chain Finance Fund Managed by Credit Suisse (the
"Fund")
The Company has placed $150
million out of the proceeds from the Private Placement to
the Fund with the objective of seeking a stable and enhanced return
through an insured cash management solution. In January 2021, the Company received a redemption
amount of $15 million (the
"Redemption") from the Fund. The Fund was terminated with effect as
of March 4, 2021 due to some of the
Fund's assets being subject to considerable valuation uncertainty
and reduced availability of insurance coverage for new investments,
and was subsequently in liquidation. The Company has been notified
by Credit Suisse that the liquidation proceeds will be repaid by
instalments. As of September 30,
2021, the Company had received five instalments in aggregate
of $84.0 million (the "Repaid Sum")
from the Fund in addition to the Redemption. The Company is
restricted from dealing with the Repaid Sum as it belongs to the
proceeds from the Private Placement. See "Financial Results –
Restricted Cash" for more information.
The Company will continue to negotiate with Credit Suisse and is
committed to act in the best interest of the Company. The Company
will take all necessary steps to recover the rest of the principal
invested where appropriate and as advised by the Company's external
counsel. However, there is no assurance that the Company can fully
recover the Company's principal from the Fund.
Lawsuits filed by the Company's suppliers
As at the date of this announcement, relevant subsidiaries of
the Company has received a total of nine writs of summons from our
suppliers in the PRC seeking orders from the relevant PRC courts to
settle the alleged outstanding construction fees/payments amounting
to an aggregate of approximately RMB92.5
million, in which the respective PRC courts have issued
rulings to freeze the bank accounts of the relevant subsidiaries of
the Company amounting to approximately RMB21.4 million in relation to three of the
aforementioned writs of summons. We are negotiating with the
relevant suppliers, and seeking legal advice from external counsel
to prepare for the upcoming hearings. Due to the continuous effort
of the Company, two of our suppliers withdrew their respective
lawsuits against the Company after negotiations, involving an
amount of approximately RMB14.8
million, and we have reached a settlement with one of our
suppliers.
OPERATING RESULTS
|
|
As of September
30, 2021
|
(By Floor
Area)
|
|
(in square
meter)
|
Project
Completed
|
|
331,701
|
Project Under
Development
|
|
309,115
|
Project For Future
Development
|
|
170,200
|
Total
|
|
811,016
|
Project Portfolio - As of September
30, 2021
Project
|
|
|
Nam
Tai
Inno
Park
|
|
Nam
Tai
Technology
Center
|
|
Nam
Tai
Inno
Valley
|
|
Nam Tai •
Longxi
|
|
|
City
|
|
|
Shenzhen
|
|
Shenzhen
|
|
Shenzhen
|
|
Dongguan
|
|
|
Type(a)
|
|
|
Office and
Dormitory
|
|
Office and
Dormitory
|
|
Office and
Dormitory
|
|
Residential and
Commercial Property
|
|
|
Site Area
(sq.m.)
|
|
|
103,739
|
|
22,364
|
|
22,367
|
|
33,763
|
|
|
Capacity
GFA
|
|
|
265,139
|
|
139,746
|
|
N/A
|
|
84,408
|
|
|
Total GFA
(sq.m.)
|
|
|
331,701
|
|
194,595
|
|
170,200(b)
|
|
114,520
|
|
|
Total GFA
|
Completed(c)
|
|
|
331,701
|
|
-
|
|
-
|
|
-
|
|
Under Development
(sq.m.)
|
|
|
-
|
|
194,595
|
|
-
|
|
114,520
|
|
Future Development
(sq. m.)
|
|
|
-
|
|
-
|
|
170,200(b)
|
|
-
|
|
Interest Attributable
To Us
|
|
|
100%
|
|
100%
|
|
100%
|
|
100%
|
|
|
Address
|
|
|
Fenghuang Community,
Guangming District, Shenzhen
|
|
Namtai Road, Baoan
District, Shenzhen
|
|
Dongtai Village,
Machong Town, Dongguan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
(a) The types of the Company's
projects are based on its development plans or certificates issued
by the relevant authority subject to adjustment upon the final
approval.
(b) The gross floor area is based
on the assumption that the Company will receive M-0 zoning approval
for the entire Inno Valley site
prior to its redevelopment. If the Company does not receive the M-0
zoning approval, the Company will be required to develop
Inno Valley under the M-1 zoning
requirements. In that case, appropriate adjustments to the
Company's plan will have to be made. The existing gross floor area
of Inno Valley is 41,927 square meters. According to "Shenzhen
Industrial Block Range Line Management Measures", the location of
Nam Tai Inno Valley is within the designated industrial block
range, of which the government strictly controls the proportion of
M-0 zoning on industrial land. Therefore, the proportion of M-0
zoning, floor area ratio and construction area of Inno Valley are
subject to the final approval of the government which is uncertain
at this time. The Company cannot guarantee that the Company will be
able to develop Inno Valley
according to the floor area currently
disclosed.
(c) Properties completed refer to
the status following the completion of the construction of the
properties, the registration of the completion acceptance and the
internal acceptance criteria.
Properties Completed
The table below sets forth certain information of the Company's
property projects completed as of September
30, 2021, comprising properties for which the registration
of the completion acceptance was completed and the internal
acceptance was satisfied.
Project
|
|
Nam Tai Inno
Park
|
City
|
|
Shenzhen
|
Total GFA (sq.
m.)
|
|
331,701
|
Leasable
GFA (sq. m.)
|
|
264,337
|
Saleable GFA (sq.
m.)
|
|
-
|
Commencement of
Construction
|
|
May
2017
|
Status of Pre-sale
Permit
|
|
Not
eligible
|
Completion
Time
|
|
July 2021
|
Interest Attributable
to Us
|
|
100%
|
Properties Under Development
The table below sets forth certain information of the Company's
property projects under development as of September 30, 2021, comprising properties under
development with the foundation work construction permits obtained
but the construction work was still in progress.
Project
|
|
Nam Tai Technology
Center
|
|
Nam Tai •
Longxi
|
City
|
|
Shenzhen
|
|
Dongguan
|
(Estimated) Total GFA
(sq. m.)
|
|
194,595
|
|
114,520
|
(Estimated) Leasable
GFA (sq. m.)
|
|
-
|
|
-
|
(Estimated) Saleable
GFA (sq. m.)
|
|
130,166
|
|
64,408(a)
|
Commencement of
Construction
|
|
December
2018
|
|
July 2020
|
Status of Pre-sale
Permit
|
|
To be
obtained
|
|
Obtained(b)
|
(Estimated)
Completion Time
|
|
2022
|
|
2022
|
Interest Attributable
to Us
|
|
100%
|
|
100%
|
Notes:
(a) Excluding parking space and
construction area that needs to be handed over to the local
government free of charge. The final floor area is subject to the
approval of the government.
(b) The Company
obtained the pre-sale permits for Towers 1, 2 and 6 of Nam Tai •
Longxi on July 30, 2021.
Properties for Future Development
The table below sets forth certain information of the Company's
property projects held for future development as of September 30, 2021, comprising properties for
which the Company has obtained the land use right certificate and
is in the process of obtaining the foundation work construction
permits, or the Company has entered into land grant contracts or is
in the process of applying for special planning although the land
use right certificate is not yet obtained.
Project
|
|
Nam Tai Inno
Valley
|
|
City
|
|
Shenzhen
|
|
Estimated Total
GFA(1) (sq. m.)
|
|
170,200
|
|
Estimated Completion
Time
|
|
2025
|
|
Note:
(1) The figures are subject to
adjustment upon the final approval of the relevant
authority.
Projects for Operation and Management
The table below sets forth certain information of the Company's
projects leased from third parties for operation and management as
of September 30, 2021.
|
Project
|
|
Location
|
|
Contracted Floor
Area
(sq.
m.)
|
|
Operation
Model
|
1
|
Nam Tai • Tang Xi
Technology Park
|
|
Shenzhen
|
|
7,586
|
|
Tenant Recruitment
and Operation
|
2
|
Nam Tai • U-Creative
Space (Lujiazui)
|
|
Shanghai
|
|
3,981
|
|
Tenant Recruitment
and Operation
|
The information contained in, or that can be accessed
through, the website mentioned in this announcement does not form
part of the announcement.
FORWARD-LOOKING STATEMENTS AND FACTORS THAT COULD CAUSE THE
COMPANY'S SHARE PRICE TO DECLINE
Certain statements included in this announcement, other than
statements of historical fact, are forward-looking statements.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "may", "might", "can",
"could", "will", "would", "anticipate", "believe", "continue",
"estimate", "expect", "forecast", "intend", "plan", "seek", or
"timetable". These forward-looking statements, which are subject to
risks, uncertainties, and assumptions, may include projections of
the Company's future financial performance based on the Company's
growth strategies and anticipated trends in its business and the
industry in which the Company operates. These statements are only
predictions based on the Company's current expectations about
future events. There are several factors, many beyond the Company's
control, which could cause results to differ materially from the
Company's expectation. These risk factors are described in the
Company's Annual Report on Form 20-F and in the Company's Current
Reports filed on Form 6-K from time to time and are incorporated
herein by reference. Any of these factors could, by itself, or
together with one or more other factors, adversely affect the
Company's business, results of operations or financial condition.
There may also be other factors currently unknown to the Company,
or have not been described by the Company, that could cause the
Company's results to differ from its expectations. Although the
Company believes the expectations reflected in the forward-looking
statements are reasonable, the Company cannot guarantee future
results, levels of activity, performance, or achievements.
Investors should not rely upon forward-looking statements as
predictions of future events. These forward-looking statements
apply only as of the date of this announcement; as such, they
should not be unduly relied upon as circumstances change. Except as
required by law, the Company is not obligated, and the Company
undertakes no obligation, to release publicly any revisions to
these forward-looking statements that might reflect events or
circumstance occurring after the date of this announcement or those
that might reflect the occurrence of unanticipated events.
CONFERENCE CALL INFORMATION
The Company will hold a conference call at 8 a.m. (Eastern Time) on November 8, 2021, in which the senior management
will discuss the results for the third quarter of 2021. Investors
may register and get access to the listen-only webcast through the
link which can be found under "Investor News – Information and
Activities – Investor Relations" on the Company's website at
https://www.namtai.com/investornews/index.html. Please note that no
question-and-answer session will be arranged during the call and
investors are welcome to make enquiries by writing to the media and
investor relations department of the Company by email at
ir@namtai.com.cn or by contacting the Company's US-based
public relations agent Edelman at Ira.grosky@edelman.com.
ABOUT NAM TAI PROPERTY INC.
Nam Tai is a real estate developer and operator, mainly
conducting business in Mainland China. The Company's main land
resources are located in the Guangdong-Hong Kong-Macao Greater Bay Area
("Greater Bay Area") and Wuxi, the PRC, of which the three plots of
land in Shenzhen will be developed
into the technology parks of Nam Tai Inno Park, Nam Tai Technology
Center and Nam Tai Inno Valley. The
Company plans to build these technology parks into landmark
projects in the region, and provide high-quality industrial
offices, industrial service spaces and supporting dormitories to
the park tenants. Based on the experience of developing and
operating technology parks, and the industrial relationship network
accumulated over the past 40 years, the Company has also exported
the operation mode of technology parks to other industrial
properties using the asset-light model to rent industrial
properties for repositioning and business invitation. Nam Tai will
also expand the commercial and residential property business in the
PRC as an auxiliary development strategy of the Company. As the
growth prospects of the PRC maintain, the Company will actively
seize development opportunities in the Greater Bay Area and other
first- and second-tier cities in the PRC, and continue to
strengthen and expand the business of industrial real estate, and
commercial and residential properties.
Nam Tai Property Inc. is a corporation registered in the
British Virgin Islands and listed
on the New York Stock Exchange (Symbol: "NTP"). Please refer to the
Nam Tai website (www.namtai.com) or the SEC website (www.sec.gov)
for the Company's press releases and financial
results.
NAM TAI PROPERTY INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED SEPTEMBER 30, 2021 AND 2020
(In Thousands of US dollars except share and per share data)
|
|
Three months
ended September 30,
|
|
|
Nine months
ended September 30,
|
|
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Revenue
|
|
$
|
5,791
|
|
|
|
1,067
|
|
|
$
|
84,385
|
|
|
$
|
2,609
|
|
Cost of
revenue
|
|
|
(3,650)
|
|
|
|
(826)
|
|
|
|
(31,805)
|
|
|
|
(2,126)
|
|
Gross
profit
|
|
$
|
2,141
|
|
|
$
|
241
|
|
|
$
|
52,580
|
|
|
$
|
483
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
(3,746)
|
|
|
|
(3,808)
|
|
|
|
(15,507)
|
|
|
|
(9,356)
|
|
Selling and marketing
expenses
|
|
|
(1,669)
|
|
|
|
(2,208)
|
|
|
|
(4,413)
|
|
|
|
(5,113)
|
|
Total operating
expenses
|
|
$
|
(5,415)
|
|
|
$
|
(6,016)
|
|
|
$
|
(19,920)
|
|
|
$
|
(14,469)
|
|
Net income
(loss) from operations
|
|
$
|
(3,274)
|
|
|
$
|
(5,775)
|
|
|
$
|
32,660
|
|
|
$
|
(13,986)
|
|
Other
income (expense), net
|
|
|
(1,756)
|
|
|
|
43
|
|
|
|
(1,420)
|
|
|
|
(16)
|
|
Interest
income
|
|
|
120
|
|
|
|
273
|
|
|
|
294
|
|
|
|
1,052
|
|
Income
(Loss) before income tax
|
|
$
|
(4,910)
|
|
|
$
|
(5,459)
|
|
|
$
|
31,534
|
|
|
$
|
(12,950)
|
|
Income tax (expense)
benefit
|
|
|
599
|
|
|
|
609
|
|
|
|
(10,506)
|
|
|
|
1,140
|
|
Consolidated
net income (loss)
|
|
$
|
(4,311)
|
|
|
$
|
(4,850)
|
|
|
$
|
21,028
|
|
|
$
|
(11,810)
|
|
Other
comprehensive income (loss) (1)
|
|
|
(1,372)
|
|
|
|
6,607
|
|
|
|
825
|
|
|
|
4,113
|
|
Functional currency
translation adjustment
|
|
|
(1,372)
|
|
|
|
6,607
|
|
|
|
825
|
|
|
|
4,113
|
|
Consolidated
comprehensive income (loss)
|
|
$
|
(5,683)
|
|
|
$
|
1,757
|
|
|
$
|
21,853
|
|
|
$
|
(7,697)
|
|
Earnings (loss) Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.11)
|
|
|
$
|
(0.12)
|
|
|
$
|
0.54
|
|
|
$
|
(0.30)
|
|
Diluted
|
|
$
|
(0.11)
|
|
|
$
|
(0.12)
|
|
|
$
|
0.54
|
|
|
$
|
(0.30)
|
|
Weighted average
number of shares ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
39,258
|
|
|
|
39,072
|
|
|
|
39,227
|
|
|
|
38,950
|
|
Diluted
|
|
|
39,258
|
|
|
|
39,072
|
|
|
|
39,288
|
|
|
|
38,950
|
|
Notes:
(1) Other comprehensive
loss was due to foreign exchange
translation.
NAM TAI PROPERTY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS AT SEPTEMBER 30, 2021 AND DECEMBER
31, 2020
(In Thousands of US dollars)
|
|
September
30,
2021
|
|
|
December
31,
2020
|
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
70,378
|
|
|
$
|
60,980
|
|
Restricted
cash
|
|
|
114,892
|
|
|
|
2,065
|
|
Short term
investments
|
|
|
51,374
|
|
|
|
150,150
|
|
Rental
deposits
|
|
|
5
|
|
|
|
156
|
|
Accounts
receivable
|
|
|
4,778
|
|
|
|
3,965
|
|
Real estate properties
under development, net
|
|
|
142,740
|
|
|
|
121,693
|
|
Real estate properties
held for sales type lease
|
|
|
7,434
|
|
|
|
31,558
|
|
Prepaid expenses and
other receivables
|
|
|
11,175
|
|
|
|
7,141
|
|
Total current
assets
|
|
$
|
402,776
|
|
|
$
|
377,708
|
|
Rental
deposits
|
|
|
340
|
|
|
|
287
|
|
Real estate
properties under development, net
|
|
|
175,199
|
|
|
|
190,492
|
|
Property, plant and
equipment, net
|
|
|
25,788
|
|
|
|
26,568
|
|
Real estate
properties held for lease, net
|
|
|
151,705
|
|
|
|
92,207
|
|
Contract
assets
|
|
|
50
|
|
|
|
—
|
|
Right of use
assets
|
|
|
9,341
|
|
|
|
9,695
|
|
Deferred income tax
assets
|
|
|
5,480
|
|
|
|
4,154
|
|
Other
assets
|
|
|
100
|
|
|
|
99
|
|
Total
assets
|
|
$
|
770,779
|
|
|
$
|
701,210
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current portion of
long term bank loans
|
|
|
109,539
|
|
|
|
122,883
|
|
Accounts
payable
|
|
|
70,672
|
|
|
|
61,559
|
|
Rental deposits from
customers
|
|
|
853
|
|
|
|
1,498
|
|
Accrued expenses and
other payables
|
|
|
28,865
|
|
|
|
30,136
|
|
Advance from
customers
|
|
|
5,564
|
|
|
|
69,722
|
|
Amount due to a
shareholder
|
|
|
146,869
|
|
|
|
146,869
|
|
Amount due to a
related company
|
|
|
950
|
|
|
|
161
|
|
Current portion of
lease liabilities
|
|
|
1,101
|
|
|
|
1,064
|
|
Total current
liabilities
|
|
$
|
364,413
|
|
|
$
|
433,892
|
|
Long term bank
loans
|
|
|
88,636
|
|
|
|
—
|
|
Long term rental
deposits
|
|
|
2,584
|
|
|
|
300
|
|
Financing lease
payable
|
|
|
18
|
|
|
|
19
|
|
Contract
liabilities
|
|
|
14,173
|
|
|
|
—
|
|
Deferred income tax
liabilities
|
|
|
20,770
|
|
|
|
8,927
|
|
Noncurrent portion of
lease liabilities
|
|
|
8,650
|
|
|
|
9,244
|
|
Total
liabilities
|
|
$
|
499,244
|
|
|
$
|
452,382
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
Common
shares
|
|
|
393
|
|
|
|
392
|
|
Additional paid-in
capital
|
|
|
265,937
|
|
|
|
265,084
|
|
Retained earnings
(accumulated deficit)
|
|
|
10,206
|
|
|
|
(10,822)
|
|
Accumulated other
comprehensive loss(1)
|
|
|
(5,001)
|
|
|
|
(5,826)
|
|
Total shareholders'
equity
|
|
$
|
271,535
|
|
|
$
|
248,828
|
|
Total liabilities and
shareholders' equity
|
|
$
|
770,779
|
|
|
$
|
701,210
|
|
Notes:
(1) Accumulated other
comprehensive loss represented conversion differences in foreign
currency statements.
NAM TAI PROPERTY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED SEPTEMBER 30,
2021 AND 2020
(In Thousands of US dollars)
|
|
Three months
ended September 30,
|
|
|
Nine months
ended September 30,
|
|
2021
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net
(loss) income
|
|
$
|
(4,311)
|
|
|
$
|
(4,850)
|
|
|
$
|
21,028
|
|
|
$
|
(11,810)
|
|
Adjustments to
reconcile consolidated net (loss) income to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,543
|
|
|
|
526
|
|
|
|
3,826
|
|
|
|
1,303
|
|
Amortization of right
of use assets
|
|
|
418
|
|
|
|
455
|
|
|
|
1,389
|
|
|
|
1307
|
|
Share-based
compensation expenses
|
|
|
96
|
|
|
|
(372)
|
|
|
|
289
|
|
|
|
730
|
|
Unrealized exchange
loss (gain)
|
|
|
315
|
|
|
|
16
|
|
|
|
212
|
|
|
|
(12)
|
|
Deferred income tax
benefit
|
|
|
(667)
|
|
|
|
(766)
|
|
|
|
10,517
|
|
|
|
(1,281)
|
|
Changes in assets
and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in accounts
receivable
|
|
|
(348)
|
|
|
|
(96)
|
|
|
|
(813)
|
|
|
|
(102)
|
|
(Increase) decrease in
prepaid expenses and other receivables
|
|
|
(2,012)
|
|
|
|
(3,504)
|
|
|
|
(4,034)
|
|
|
|
2,738
|
|
Decrease (increase) in
deposit
|
|
|
155
|
|
|
|
(10)
|
|
|
|
98
|
|
|
|
(188)
|
|
Increase in real
estate properties under development
|
|
|
(24,398)
|
|
|
|
(5,045)
|
|
|
|
(34,689)
|
|
|
|
(107,857)
|
|
Increase (decrease) in
accrued expenses and other payables
|
|
|
(207)
|
|
|
|
3482
|
|
|
|
(1,845)
|
|
|
|
(2,003)
|
|
Increase in accounts
payable
|
|
|
1,402
|
|
|
|
825
|
|
|
|
426
|
|
|
|
239
|
|
Increase (decrease) in
lease liabilities
|
|
|
241
|
|
|
|
(248)
|
|
|
|
(1,062)
|
|
|
|
(1,099)
|
|
Increase (decrease) in
advance from customers
|
|
|
322
|
|
|
|
26,128
|
|
|
|
(64,158)
|
|
|
|
54,370
|
|
Decrease in contract
assets
|
|
|
(50)
|
|
|
|
—
|
|
|
|
(50)
|
|
|
|
—
|
|
Increase in rental
deposits from customers
|
|
|
247
|
|
|
|
503
|
|
|
|
1,639
|
|
|
|
973
|
|
Increase in contract
liabilities
|
|
|
14,173
|
|
|
|
—
|
|
|
|
14,173
|
|
|
|
—
|
|
Increase in financing
lease payable
|
|
|
—
|
|
|
|
7
|
|
|
|
—
|
|
|
|
7
|
|
Increase in amount due
to a related company
|
|
|
9
|
|
|
|
—
|
|
|
|
789
|
|
|
|
—
|
|
Total
adjustments
|
|
$
|
(8,761)
|
|
|
$
|
21,901
|
|
|
$
|
(73,293)
|
|
|
$
|
(50,875)
|
|
Net cash (used in)
provided by operating activities
|
|
$
|
(13,072)
|
|
|
$
|
17,051
|
|
|
$
|
(52,265)
|
|
|
$
|
(62,685)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment of real estate
properties under development
|
|
|
—
|
|
|
|
(29,315)
|
|
|
|
—
|
|
|
|
(40,860)
|
|
|
Purchase of property,
plant & equipment
|
|
|
(161)
|
|
|
|
(280)
|
|
|
|
(477)
|
|
|
|
(677)
|
|
Decrease in short term
investments
|
|
|
15,288
|
|
|
|
—
|
|
|
|
98,776
|
|
|
|
2,166
|
|
Net
cash provided by (used in) investing
activities
|
|
$
|
15,127
|
|
|
$
|
(29,595)
|
|
|
$
|
98,299
|
|
|
$
|
(39,371)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of bank
loans
|
|
|
(11,639)
|
|
|
|
(30,362)
|
|
|
|
(14,223)
|
|
|
|
(38,497)
|
|
Proceeds from bank
loans
|
|
|
88,847
|
|
|
|
34,971
|
|
|
|
88,847
|
|
|
|
73,245
|
|
Proceeds from shares
issued for option exercise
|
|
|
—
|
|
|
|
1,744
|
|
|
|
565
|
|
|
|
3,793
|
|
Net cash provided by
financing activities
|
|
$
|
77,208
|
|
|
$
|
6,353
|
|
|
$
|
75,189
|
|
|
$
|
38,541
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
|
$
|
79,263
|
|
|
$
|
(6,191)
|
|
|
$
|
121,223
|
|
|
$
|
(63,515)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
|
104,960
|
|
|
|
69,225
|
|
|
|
63,045
|
|
|
|
130,218
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
|
|
1,047
|
|
|
|
11,016
|
|
|
|
1,002
|
|
|
|
7,347
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
185,270
|
|
|
$
|
74,050
|
|
|
$
|
185,270
|
|
|
$
|
74,050
|
|
SUPPLEMENTARY
INFORMATION ON CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
70,378
|
|
|
$
|
72,075
|
|
|
$
|
70,378
|
|
|
$
|
72,075
|
|
Restricted
cash
|
|
$
|
114,892
|
|
|
$
|
1,975
|
|
|
$
|
114,892
|
|
|
$
|
1,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAM TAI PROPERTY INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED SEPTEMBER 30, 2021 AND 2020
(In Thousands of US dollars)
- These financial statements, including the consolidated balance
sheet as of December 31, 2020, which
was derived from audited financial statements, do not include all
of the information and notes required by U.S. Generally Accepted
Accounting Principles for complete financial statements and should
be read in conjunction with the consolidated financial statements
and accompanying notes included in the Company's annual report on
Form 20-F for the fiscal year ended December
31, 2020.
- In the opinion of management, all adjustments (consisting of
normal, recurring adjustments) considered necessary for a fair
presentation have been included. Operating results for the interim
periods presented are not necessarily indicative of the results
that may be expected for the full year ending December 31, 2021.
- Accumulated other comprehensive loss represents foreign
currency translation adjustments. The consolidated comprehensive
income was $21.9 million for the nine
months ended September 30, 2021 and
the consolidated comprehensive loss was $7.7
million for the nine months ended September 30, 2020.
- A summary of the operating income, other (expenses) income, net
(loss) income and long-lived assets by geographical areas is as
follows:
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
RENTAL INCOME
WITHIN:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-PRC, excluding Hong
Kong
|
|
$
|
5,791
|
|
|
$
|
1,067
|
|
|
$
|
84,385
|
|
|
$
|
2,609
|
|
NET (LOSS) INCOME
FROM OPERATIONS WITHIN:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- PRC, excluding Hong
Kong
|
|
$
|
(2,314)
|
|
|
$
|
(2,970)
|
|
|
$
|
31,460
|
|
|
$
|
(7,243)
|
|
- Hong Kong
|
|
|
(1,997)
|
|
|
|
(1,880)
|
|
|
|
(10,432)
|
|
|
|
(4,567)
|
|
Total net (loss)
income
|
|
$
|
(4,311)
|
|
|
$
|
(4850)
|
|
|
$
|
21,028
|
|
|
$
|
(11,810)
|
|
|
|
September 30,
2021
|
|
|
December 31,
2020
|
|
LONG-LIVED ASSETS
WITHIN:
|
|
|
|
|
|
|
|
|
- Real estate
properties under development in PRC, excluding Hong
Kong
|
|
$
|
175,199
|
|
|
$
|
190,492
|
|
- Property, plant and
equipment in PRC, excluding Hong Kong
|
|
|
25,608
|
|
|
|
26,389
|
|
- Hong Kong
|
|
|
180
|
|
|
|
179
|
|
- Real estate
properties held for lease in PRC, excluding
Hong Kong
|
|
|
151,705
|
|
|
|
92,207
|
|
- Right of use assets
in PRC, excluding Hong Kong
|
|
|
8,859
|
|
|
|
9,511
|
|
- Hong Kong
|
|
|
482
|
|
|
|
184
|
|
Total long-lived
assets
|
|
$
|
362,033
|
|
|
$
|
318,962
|
|
View original
content:https://www.prnewswire.com/news-releases/nam-tai-property-inc-announces-q3-2021-results-301416543.html
SOURCE Nam Tai Property Inc.