SHENZHEN, April 30, 2018 /PRNewswire/ -- Nam Tai Property Inc.
("Nam Tai" or the "Company") (NYSE Symbol: NTP) today announced its unaudited results for the first quarter ended March 31, 2018.
KEY HIGHLIGHTS
(In thousands of US dollars, except per share data, percentages and as
otherwise stated)
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Quarterly Results
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Q 1 201 8
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Q 1 201 7
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YoY(%) (b)
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Operation income
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$
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--
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$
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594
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(100)
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Net operation income
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$
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--
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$
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594
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(100)
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% of operation income
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--
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100.0%
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Operating loss
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$
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(9,116)
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$
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(1,390)
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--
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% of operation income
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--
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(234.0%)
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per share (diluted)
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$
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(0.24)
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$
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(0.04)
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--
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Net income (a)
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$
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2,568
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$
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1,814
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42
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% of operation income
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--
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305.4%
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Basic income per share
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$
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0.07
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$
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0.05
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40
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Diluted income per share
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$
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0.07
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$
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0.05
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40
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Weighted average number of shares ('000)
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Basic
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37,669
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36,466
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Diluted
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38,527
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36,990
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Notes:
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(a) N et income for the three months
ended March 31, 2018 mainly included a gain of $6.8 million on disposal of property located in Hong
Kong and exchange gain of $3.3 million as a result of the appreciation of Renminbi against the US dollar in the
first quarter of 2018 and
interest income of $1.5 million earned from time deposits; but partly offset by general and administrative expenses of
$9.1 million, which
mainly included accrual of compensation for loss of office of $3.7 million for the anticipated retirement of a senior
manager and option
expenses of $1.4 million for certain new officers and employees, salary & benefits of $1.8 million, depreciation of
$1.0 million and audit
and legal & professional fees of $0.6 million.
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(b) Percentage change is not applicable
if either of the two periods contains a loss.
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(c) Capitalization on project investment
was $2.0 million for the first quarter of 2018, our accumulated project investment was $56.2 million
up to March 31, 2018, which was recorded under the account of real estate properties under development in the balance
sheet as of March
31, 2018.
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(d) T his information has been published
on the Company's website http://www.namtai.com/investors#investors/quarterly_earnings under the
quarterly earnings report of the first quarter of 201 8 on page 7 , Condensed
Consolidated Statements of Comprehensive Income.
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SUPPLEMENTARY INFORMATION (UNAUDITED) IN THE FIRST QUARTER
OF 201 8
Key Highlights of Financial Position
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As of March 31,
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As of December 31,
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As of March 31,
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2018
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2017
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2017
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Cash, cash equivalents and short term
investments
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$173.2 million (a) (b)
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$165.2 million
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$182.7 million
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Ratio of cash ( c) to current
liabilities
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10.61
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9.32
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18.15
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Current ratio
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10.94
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9.61
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20.47
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Ratio of total assets to total liabilities
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16.67
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14.79
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24.79
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Return on equity
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4.1%
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1.6%
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3.1%
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Ratio of total liabilities to total equity
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0.06
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0.07
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0.04
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Notes:
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(a) Compared to December 31, 2017, the
increase of $8.0 million in the cash, cash equivalents and short-term investments was mainly due to
the proceeds of $9.7 million from selling an office property in Hong Kong, exchange gain of $5.8 million as a result of
the appreciation of
Renminbi against the US dollar during the three months ended March 31, 2018, and proceeds of $1.4 million from shares
issued upon the
exercise of certain share options; offset in part by $4.3 million used for land development projects that was recorded
under the item real
estate properties under development in the balance sheet as of March 31, 2018 and a decrease of $2.6 million for dividend
payment.
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(b) Compared to March 31, 2017,
the decrease of $9.5 million in the cash, cash equivalents and short-term investments was mainly due to
$14.9 million used for land development projects that was recorded under the item real estate properties under
development in the balance
sheet as of March 31, 2018, the payments of $13.4 million for new office premises and the payments of $10.3
million for dividend payment;
offset in part by the exchange gain of $14.2 million as a result of the appreciation of Renminbi against the US dollar
from March 31, 2017
to March 31, 2018, the proceeds of $9.7 million from selling an office property in Hong Kong, and proceeds of $7.9
million from shares
issued upon the exercise of certain share options.
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(c) Cash in the financial ratio included
cash, cash equivalents and short-term investments in the amount of $173.2 million, $165.2 million and
$182.7 million as of March 31, 2018, December 31, 2017 and March 31, 2017, respectively.
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OPERATING RESULTS
Operating loss for the first quarter of 2018 was $9.1 million, an increase of $7.7 million, compared to operating loss of $1.4 million in the first quarter of
2017, when there was rental income derived from our land and buildings located in Gushu, Shenzhen, prior to the expiration of its lease agreement in October 2017, to
offset the operating loss.
Net income for the first quarter of 2018 was $2.6 million compared to a net income of
$1.8 million in the first quarter of 2017. Net income for the first quarter of 2018 mainly
consisted of a gain of $6.8 million on disposal of an office property in Hong Kong, exchange gain of $3.3 million as a result of the appreciation of
Renminbi against the US dollar in the first quarter of 2018, interest income of $1.5 million earned
from time deposits; offset in part by general and administrative expenses of $9.1 million that
mainly included accrual of compensation for loss of office of $3.7 million for the anticipated
retirement of a senior manager and option expenses of $1.4 million for certain new officers and
employees, salary & benefits of $1.8 million, depreciation of $1.0
million and audit, legal & professional fees of $0.6 million. Net income for the first
quarter of 2017 mainly consisted of interest income of $2.5 million earned from time deposits,
exchange gain of $0.8 million as a result of the appreciation of Renminbi against the US dollar in
the first quarter of 2017, and net operation income of $0.6 million; offset in part by general and
administrative expenses of $2.0 million that mainly included salary & benefit of $1.0 million, option expenses of $0.2 million, and audit, legal &
professional fees of $0.2 million. Net income per diluted share for the first quarter of 2018 was
$0.07 compared to net income per diluted share of $0.05 for the first
quarter of 2017.
As the majority of our assets are denominated in Renminbi, the translation of Renminbi denominated assets to US dollars for
reporting purposes has resulted in foreign exchange gain for the three months ended March 31, 2018.
Due to the fluctuation of exchange rate for Renminbi against the US dollar, foreign exchange gain for the three months ended
March 31, 2018 was $3.3 million, or approximately 126.7% of the
amount of our net income for this period. However, since the majority of our payment obligations are also denominated in
Renminbi, we do not expect the movement of Renminbi against the US dollar to materially or adversely impact our business.
Nevertheless, investors should consider that the purchasing power of US dollar figures for cash and cash equivalents and other
short-term investments is not identical from period to period.
Capitalization on project investment was $2.0 million for first quarter of 2018, our accumulated
project investment was $56.2 million up to March 31, 2018, which was
recorded under the item real estate properties under development in the balance sheet as of March 31,
2018.
Our business of land development is currently in the preparatory stage where it takes time to apply for the relevant licenses
and permits from the PRC government. During this preparatory stage of the land development, our only sources of income are from
limited deposit interest; therefore, we expect to continue to incur operating losses as long as we are in this stage.
Please see page 7 of the Company's Condensed Consolidated Statements of Comprehensive Income for further details. This
information has also been published on the Company's website at http://www.namtai.com/investors#investors/quarterly_earnings in
the quarterly earnings report of the first quarter of 2018 on page 7, Condensed Consolidated Statements of Comprehensive
Income.
COMPANY OUTLOOK
The development of Nam Tai Inno Park in Guangming, Shenzhen, and Nam Tai Inno City in Gushu,
Shenzhen, continues to proceed smoothly.
The construction of Nam Tai Inno Park continued with the excavation of its foundation and settlement of piles during the first
quarter of 2018. The Company plans to select two main construction contractors in May of 2018, which, in turn, would allow the
Company to receive the Construction Permit for the Main Structure as the next step. In any event, the Company will announce each
of these important milestones in due course.
On April 10, 2018, the Company also announced the receipt of RMB1.2
billion ($184 million) credit facility from China Construction Bank to support the
development of the Nam Tai Inno Park Project (the "Inno Park Financing Package") beyond the $173.2
million of cash, cash equivalents and short-term investments that the Company had on hand as of March 31, 2018. The Inno Park Financing Package is a part of the Strategic Cooperation Agreement that the
Company entered into with China Construction Bank on August 18, 2016, where China Construction Bank
planned to offer a total credit facility of up to RMB5.0 billion to the Company over a five years
period for various projects, including Nam Tai Inno City as the next project. With the construction financing for Nam Tai Inno Park project secured, the Company will now focus on building Nam Tai Inno
Park into a high-tech research & development center.
For Nam Tai Inno City, after splitting the development into Phase I and Phase II to cover the eastern and western sections,
respectively, the Company continued with the demolition of its old factory buildings located on the eastern section in the first
quarter of 2018. The Company currently focuses its development efforts on redesigning the complex to maximize its value based on
the latest market outlook. The Company continues to follow its plan of development and expects to receive the Land Use Permit in
June 2018 and Land Use Right Certificate in August 2018 for Phase I
of Nam Tai Inno City. For Phase II of Nam Tai Inno City, as the Company now expects to receive its Construction Permit for the
Main Structure around July 2020, the Company may look for ways to increase its utilization prior to
the start of the construction.
For our Hong Kong office property, we sold it to our Chairman, Mr. Koo, for $9.7 million on February 12, 2018, after our Audit Committee reviewed two
valuation reports prepared by two independent appraisers and our Board of Directors approved the transaction price.
As for the Wuxi facilities, the Company continues to search for both potential buyers or renters, with the primary focus on
rental.
Following below are summaries of our Nam Tai Inno Park and Nam Tai Inno City projects:
Part I: G ross F loor A re as for the Two Projects:
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Inno Park
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Inno City
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(In square meters, except plot ratios)
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Land area
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103,739
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52,625
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Plot ratios
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2.59
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6.00
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Office
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175,406
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Office + Soho
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187,880
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Apartment
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61,000
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Apartment
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48,300
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Gross floor area (GFA)
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Commercial
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28,594
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Commercial
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25,000
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Other
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4,159
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Other
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7,200
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269,159
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268,380
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Underground floor area
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62,673
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80,000
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Total construction floor area (CFA)
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331,832
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348,380
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Remark
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The above figures are subject to adjustment upon the final
approval of the relevant authorities in China.
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Part II: Timetable for the Two Projects:
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Main Certificates
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Estimated Completion Date
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Inno Park
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Inno City
Phase I
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Inno City
Phase II
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2017
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2018
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2019
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2020
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2021
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2022
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2023
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A
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Land Use Permit
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Obtained
June 2015
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June 2018
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Oct. 2019
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*
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#
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B
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Land Use Right
Certificate
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Obtained
Sep. 2015
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Aug. 2018
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Dec. 2019
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*
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#
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C
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Construction
Planning Permit
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Obtained
Aug. 2017
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Dec. 2018
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June 2020
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^
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*
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#
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D1
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Early Construction
Permit for Pile
Foundation
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Obtained
May 2017
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N/A
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N/A
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^
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D2
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Construction Permit
for the Main
Structure
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May 2018
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Jan. 2019
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July 2020
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^
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*
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#
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D3
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Construction Acceptance
Certificate for the
Main Structure
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Oct. 2019
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Oct. 2020
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Feb. 2022
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^
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*
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#
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D4
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Construction
Completion
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Oct. 2020
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Nov. 2021
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May 2023
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^
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*
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#
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E
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Property Ownership
Certificate
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Oct. 2020
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Nov. 2021
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May 2023
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^
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*
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#
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Remarks
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1. Carets ^ represent "Inno Park", while stars * represent "Inno City
– Phase I" and number signs # represent "Inno City – Phase II".
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2. The construction of "Inno Park" has commenced from April 2017
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3. The construction of "Inno City" is expected to commence before December
2018.
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Part III: Budgetary Estimate for the Two Projects:
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Total Cost
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Inno Park
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Inno C ity
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(US$ in million )
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1
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Construction Cost
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312
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415
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2
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Operation Cost
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69
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43
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Total
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$ 381
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$ 458
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Remark
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The $839 million Schematic Design Estimation was prepared by our quantity
surveyor. This estimate will be used by us for cost control purposes to monitor the
costs of design, construction, and other operations.
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This estimation does not include the costs of marketing and interior
furnishing and
makes no adjustment for inflation or financing costs. If the developed properties are
offered for sale, the costs would also have to include payment for land appreciation
tax.
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Potential Risks in O ur B usiness
We currently derive a majority of our income from interest income. Since 2016, we have seen a stabilizing trend on the
benchmark interest rates in China. However, due to the current economic conditions in
China, we expect the People's Bank of China ("PBOC") to keep
Renminbi-denominated official time deposit interest rates in China at a low level throughout
2018. We expect to continue to incur operating losses in the second quarter of 2018 and beyond. With this lower interest rate
environment and continued decrease in our level of deposit, we expect our income offset against these operating losses to
materially decrease in future periods, which will accelerate the current decline of our cash and cash equivalents and other
short-term investments.
We have only become a real estate developer after our electronic manufacturing businesses ceased in 2014. To ensure our
successful transformation, we have engaged external advisors and sought potential strategic partners and investors, including
Kaisa, to support our projects. We cannot assure you our efforts will be sufficient enough to carry out a transformation of this
magnitude. Our Chairman, Mr. Koo, is 74 years old. In accordance with our restructuring plan, Mr. Koo has begun his transition
towards retirement in anticipation of age and health issues, including the appointment of Mr. Ying Chi
Kwok as our Chief Executive Officer and Ms. Yu Zhang, in his place, as our Chief Financial
Officer. We cannot assure you that our restructuring plan can be carried out smoothly, or that any successor will be able to
manage our Company as effectively.
As the majority of our assets are denominated in Renminbi, the translation of Renminbi-denominated assets to US dollars for
our reporting purposes has resulted in a foreign exchange gain in this quarter. As such, we do expect to see fluctuations in the
reporting of foreign exchange loss/gain in the financial statements due to the movement of Renminbi against the US dollar.
However, as a majority of our payments are in Renminbi, we also do not expect the movement of Renminbi against the US dollar to
adversely impact our business. Nevertheless, investors should consider that the purchasing power of US dollar figures for cash
and cash equivalents and other short-term investments is not identical from period to period.
In order for the projects to proceed smoothly, we will need to access additional funding. To do so, the Company will negotiate
loans and credit lines with financial banks to source funds needed to assist in future development of the projects. These debt
instruments often contain covenants limiting our flexibility in operating our business and can contain requirements that we meet
certain milestones in our project development. While we have obtained the Inno Park Financing Package to support our financing in
part, there can be no assurance that we can continue to enter into these instruments with financial institutions successfully or
that, if we do, we will be able to comply with the covenants or milestones these instruments may require. Failure to enter into
these loans or credit lines or to comply with any terms required by this funding may delay our developments as we seek
alternative sources of funding or prevent us from completing the developments entirely.
As of March 31, 2018, we have a total cash balance of $173.2
million and no debt. With our current cash position and the receipt of the Inno Park Financing Package after the
conclusion of the first quarter, we believe our finances remain sufficient to fund the initial stages of these property
development projects for the construction of the main structure of Nam Tai Inno Park as currently planned. All of our land
development related applications are subject to government policies and regulations in the real estate market. As this is our
first venture into the land development projects, we may encounter industry-specific difficulties that result in losses as we
progress with our projects in Shenzhen. As we are currently in the planning stage of our
property projects, and can only generate limited interest income from cash deposits, we will continue to record operating losses.
Cash on hand is expected to drop continuously, but most of the incurred expenditures related to construction will be for project
development, which will be capitalized as real estate properties under development (non-current asset) on our balance sheet. For
more information on risks in our business, please refer to the Risk Factors section of our 2017 Annual Report on Form 20-F as
filed with the SEC and on our website.
According to our project development plan, project investment for the second quarter of 2018 is estimated to be $37.8 million, and project investment for the year of 2018 is estimated to be $153.5
million.
The information contained in or that can be accessed through the website mentioned in this announcement does
not form part of this announcement.
PAYMENT OF QUARTERLY DIVIDENDS FOR 2018
As announced on October 30, 2017, the Company set the payment schedule of quarterly
dividends for 2018. The dividend for the first quarter of 2018 was paid on April 20, 2018.
The following table updates the previously announced schedule for declaration and payment of quarterly dividends in 2018.
Payment
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Record Date
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Payment Date
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Dividend
(per share)
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Status
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Q1 2018
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December 31, 2017
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January 19, 2018
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$
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0.07
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Paid
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Q2 2018
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March 31, 2018
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April 20, 2018
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$
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0.07
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Paid
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Q3 2018
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June 30, 2018
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July 20, 2018
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$
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0.07
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Q4 2018
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September 30, 2018
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October 19, 2018
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$
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0.07
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Full Year 2018
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$
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0.28
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The Company's decision to continue making dividend payments in 2018 as set out and confirmed in the above table does not
necessarily mean that cash dividend payments will continue thereafter or at the same amount. Whether future dividends after 2018
are to be declared will depend upon Company's future growth and earnings at each relevant period, of which there can be no
assurance, and the Company's cash flow needs for business operations and transformation. Accordingly, there can be no assurance
that cash dividends on the Company's common shares will be declared beyond those declared for 2018, and we also cannot assure you
what the amounts of such dividends will be or whether such dividends, once declared for a specific period, will continue for any
future period, or at all.
PROPOSED SCHEDULE FOR RELEASE OF QUARTERLY FINANCIAL RESULTS FOR 2018
To maintain the efficiency of delivering the Company's quarterly financial results to the market, the Company's management has
decided to follow approximately the same schedule of 2017 to release the quarterly financial results for 2018. Details of the
expected quarterly release dates are as follows:
Announcements of Financial Results
Quarter
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Date of release
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Q1 2018
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April 30, 2018 (Monday)
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Q2 2018
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July 30, 2018 (Monday)
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Q3 2018
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November 5, 2018 (Monday)
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Q4 2018
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January 28, 2019 (Monday)
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FORWARD-LOOKING STATEMENTS AND FACTORS THAT COULD CAUSE OUR SHARE PRICE TO DECLINE
Certain statements included in this press release, 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",
"will", "expect", "intend", "estimate", "anticipate", "plan", "seek" , "believe" or "timetable" .
These forward-looking statements, which are subject to risks, uncertainties, and assumptions, may include projections of our
future financial performance based on our growth strategies and anticipated trends in our business. These statements are only
predictions based on our current expectations about future events. There are important factors that could cause our actual
results, level of activity, performance, or achievements to differ materially from the results, level of activities, performance,
or achievements expressed or implied by the forward-looking statements, including, but not limited to, delay in the Company's
ability to obtain all requisite permits and approvals from relevant government authorities in relation to the redevelopment of
two parcels of properties in Guangming, Shenzhen, and Gushu, Shenzhen, respectively, and the successful redevelopment of the two parcels of properties into Nam Tai Inno
Park and Nam Tai Inno City; the sufficiency of the Company's cash position and other sources of liquidity to fund its property
developments; continued inflation and appreciation of the Renminbi against the US dollar; rising labor costs in China and changes in the labor supply and labor relations. In particular, you should consider the risks
outlined under the heading "Risk Factors" in our most recent Annual Report on Form 20-F and in our Current Report filed on Form
6-K from time to time. The Company's decision to continue dividend payments in 201 8 does not necessarily mean that
dividend payments will continue thereafter. Whether future dividends will be declared depends upon the Company's future growth
and earnings, of which there can be no assurance, as well as the Company's cash flow needs for further expansion. Accordingly,
there can be no assurance that cash dividends on the Company's common shares will be declared beyond those declared for 201
8 , what amount those dividends may be or whether such dividends, once declared for a specific period, will continue
for any future period, or at all; and whether we will purchase any of our shares in the open markets or otherwise. Although we
believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of
activity, performance, or achievements. You should not rely upon forward-looking statements as predictions of future events.
These forward-looking statements apply only as of the date of this press release; as such, they should not be unduly relied upon
as circumstances change. Except as required by law, we are not obligated, and we undertake no obligation, to release publicly any
revisions to these forward-looking statements that might reflect events or circumstance occurring after the date of this release
or those that might reflect the occurrence of unanticipated events.
ABOUT NAM TAI PROPERTY INC.
We are a real estate developer. We hold two parcels of land located in Guangming and Gushu, Shenzhen, China. We are converting these two parcels of land that formerly housed the manufacturing
facilities of our prior businesses into high-tech research and development centers, Nam Tai Inno
Park and Nam Tai Inno City. We expect our principal income in the future will be derived from rental income from these
research and development centers. 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 Nam Tai press releases and
financial statements.
NAM TAI PROPERTY INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME (UNAUDITED)
|
FOR THE PERIODS ENDED MARCH 31, 2018 AND 2017
|
(In Thousands of US dollars except share and per share
data)
|
|
|
|
|
|
Three months ended March 31,
|
|
|
2018
|
|
|
2017
|
Operation income (1)
|
|
$
|
--
|
|
|
$
|
594
|
Net operation income
|
|
|
--
|
|
|
|
594
|
Costs and expenses
|
|
|
|
|
|
|
|
General and administrative expenses
|
|
|
9,116
|
|
|
|
1,984
|
|
|
|
9,116
|
|
|
|
1,984
|
Operating loss
|
|
|
(9,116)
|
|
|
|
(1,390)
|
Other income, net (2)
|
|
|
3,449
|
|
|
|
728
|
Interest income
|
|
|
1,507
|
|
|
|
2,476
|
Gain on disposal of property
|
|
|
6,763
|
|
|
|
—
|
Write off of demolished building
|
|
|
(35)
|
|
|
|
—
|
Income before income tax
|
|
|
2,568
|
|
|
|
1,814
|
Consolidated net income
|
|
$
|
2,568
|
|
|
$
|
1,814
|
Functional currency translation adjustment
|
|
|
6,038
|
|
|
|
540
|
Other comprehensive income(3)
|
|
|
6,038
|
|
|
|
540
|
Consolidated comprehensive income (4)
|
|
$
|
8,606
|
|
|
$
|
2,354
|
Income earnings per share
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.07
|
|
|
$
|
0.05
|
Diluted
|
|
$
|
0.07
|
|
|
$
|
0.05
|
Weighted average number of shares ('000)
|
|
|
|
|
|
|
|
Basic
|
|
|
37,669
|
|
|
|
36,466
|
Diluted
|
|
|
38,527
|
|
|
|
36,990
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(1) The property at Phase II in
Gushu has been rented to a third party lessee with a term of three and a half years ending in October
2017.
|
(2) Other incomes, net, include an exchange gain of $3.3
million for the three months ended March 31, 2018.
|
(3) An increase in other
comprehensive income due to foreign exchange translation .
|
(4) Consolidated net
income for the three months ended March 31 , 201 8 mainly include gain of $6.8
million on disposal of an office
property in Hong Kong, exchange gain of $ 3.3 million as a result of the ap
preciation of Renminbi against the US dollar in the first
quarter of 2018 and interest income of $1.5 million earned from time deposits; but partly offset by general and
administrative
expenses of $ 9 . 1 million which mainly included accrual of compensation for loss of office
of $3.7 million for the anticipated retirement
of a senior manager and option expenses of $1.4 million for certain new officers and
employees , salary & benefits of $1.8 million,
depreciation of $1.0 million and audit, legal & professional fees of $0.6 million
.
|
NAM TAI PROPERTY INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
AS AT MARCH 31, 2018 AND DECEMBER 31, 2017
|
(In Thousands of US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31 ,
201 8
|
|
|
December 31,
2017
|
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents(1)
|
|
$
|
169,892
|
|
|
$
|
165,173
|
|
Short term investments(1)
|
|
|
3,344
|
|
|
|
--
|
|
Prepaid expenses and other receivables
|
|
|
5,487
|
|
|
|
5,100
|
|
Total current assets
|
|
|
178,723
|
|
|
|
170,273
|
|
Long term investments
|
|
|
2,408
|
|
|
|
2,319
|
|
Real estate properties under development, net(2)
|
|
|
56,193
|
|
|
|
52,460
|
|
Property, plant and equipment, net
|
|
|
34,940
|
|
|
|
36,976
|
|
Other assets
|
|
|
--
|
|
|
|
49
|
|
Total assets
|
|
$
|
272,264
|
|
|
$
|
262,077
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
3,189
|
|
|
$
|
5,705
|
|
Accrued expenses and other payables
|
|
|
5,211
|
|
|
|
1,500
|
|
Dividend payable
|
|
|
7,933
|
|
|
|
10,514
|
|
Total current liabilities
|
|
|
16,333
|
|
|
|
17,719
|
|
EQUITY
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
Common shares
|
|
|
377
|
|
|
|
376
|
|
Additional paid-in capital
|
|
|
252,869
|
|
|
|
249,856
|
|
Retained earnings
|
|
|
2,497
|
|
|
|
(24)
|
|
Accumulated other comprehensive income (loss)(3)
|
|
|
188
|
|
|
|
(5,850)
|
|
Total shareholders' equity
|
|
|
255,931
|
|
|
|
244,358
|
|
Total liabilities and shareholders' equity
|
|
$
|
272,264
|
|
|
$
|
262,077
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) According to
the definition of "Balance Sheet" under the Financial Accounting Standard Board ("FASB") Accounting Standards
Codification ("ASC") 210-10-20, cash equivalents are short-term, highly liquid investments that are readily convertible
to cash. Only
investments with original maturities of three months or less when purchased qualify under that definition. Therefore, the
fixed deposits
maturing over three months in amount of $ 3.3 million and nil as at March 31,
201 8 and December 31, 201 7, respectively, are not
classified as cash and cash equivalents but are separately disclosed as short - term investments in the
balance sheet.
|
(2)
Capitalization on project investment was $ 2.0 million for the first quarter of 2018, our
accumulated project investment was $56.2 million
up to March 31, 2018.
|
(3) Accumulated
other comprehensive income ( loss ) represented foreign currency translation
adjustment.
|
NAM TAI PROPERTY INC.
|
CON D ENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
FOR THE PERIODS ENDED MARCH 31, 2018 AND 2017
|
(In Thousands of US dollars)
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
2018
|
|
|
2017
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Consolidated net income
|
|
$
|
2,568
|
|
|
$
|
1,814
|
Adjustments to reconcile consolidated net income to net
cash provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization of property, plant and equipment,
land use rights and other assets
|
|
|
1,015
|
|
|
|
76
|
Gain on disposal of property, plant and equipment
|
|
|
(6,956)
|
|
|
|
(19)
|
Write off demolished building
|
|
|
35
|
|
|
|
--
|
Share-based compensation expenses
|
|
|
1,366
|
|
|
|
240
|
Unrealized exchange gain
|
|
|
(3,124)
|
|
|
|
(221)
|
Changes in current assets and liabilities:
|
|
|
|
|
|
|
|
Increase in prepaid expenses and other receivables
|
|
|
(302)
|
|
|
|
(242)
|
Increase in accrued expenses and other payables
|
|
|
3,585
|
|
|
|
276
|
Total adjustments
|
|
|
(4,381)
|
|
|
|
110
|
Net cash (used in) provided by operating activities
|
|
$
|
(1,813)
|
|
|
$
|
1,924
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Payments for real estate properties under development
|
|
$
|
(4,329)
|
|
|
$
|
(1,405)
|
Purchase of property, plant & equipment
|
|
|
(501)
|
|
|
|
(116)
|
Decrease in deposits for real estate properties under
development
|
|
|
19
|
|
|
|
20
|
Increase in deposits for purchase of property, plant and
equipment
|
|
|
(61)
|
|
|
|
(217)
|
Proceeds from disposal of property, plant and equipment
|
|
|
9,706
|
|
|
|
19
|
Proceeds from disposal of demolished building
|
|
|
197
|
|
|
|
—
|
Proceeds from disposal of other asset
|
|
|
50
|
|
|
|
—
|
Increase in short term investments
|
|
|
(3,344)
|
|
|
|
(19,891)
|
Net cash provided by (used in) investing activities
|
|
$
|
1,737
|
|
|
$
|
(21,590)
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Cash dividends paid
|
|
$
|
(2,629)
|
|
|
$
|
(2,551)
|
Proceeds from shares issued for option exercise
|
|
|
1,384
|
|
|
|
403
|
Net cash used in financing activities
|
|
$
|
(1,245)
|
|
|
$
|
(2,148)
|
Net decrease in cash and cash equivalents
|
|
$
|
(1,321)
|
|
|
$
|
(21,814)
|
Cash and cash equivalents at beginning of period
|
|
|
165,173
|
|
|
|
94,558
|
Effect of exchange rate changes on cash and cash equivalents and
short
term investments
|
|
|
6,040
|
|
|
|
440
|
Cash and cash equivalents at end of period
|
|
$
|
169,892
|
|
|
$
|
73,184
|
NAM TAI PROPERTY INC.
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
FOR THE PERIODS ENDED MARCH 31, 2018 AND 2017
|
(In Thousands of US dollars)
|
|
|
|
1. These financial statements, including the consolidated balance
sheet as of December 31, 2017, 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, 2017.
|
2. 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 ended December 31, 2017.
|
3. Accumulated other comprehensive income (loss) represents foreign
currency translation adjustments. The consolidated comprehensive
income was $8,606 and $2,354 for the three months ended March 31, 2018 and 2017.
|
4. A summary of the operation income, other income, net, net income
and long-lived assets by geographical areas is as follows:
|
|
|
|
|
|
Three months ended March 31,
|
|
|
2018
|
|
|
2017
|
OPERATION INCOME WITHIN:
|
|
|
|
|
|
|
|
-PRC, excluding Hong Kong
|
|
$
|
--
|
|
|
$
|
594
|
OTHER INCOME, NET:
|
|
|
|
|
|
|
|
- Gain on exchange difference
|
|
$
|
3,254
|
|
|
$
|
847
|
- Loss from Wuxi operations
|
|
|
--
|
|
|
|
(166)
|
- Others
|
|
|
195
|
|
|
|
47
|
Total other income, net
|
|
$
|
3,449
|
|
|
$
|
728
|
NET INCOME FROM OPERATIONS WITHIN:
|
|
|
|
|
|
|
|
- PRC, excluding Hong Kong
|
|
$
|
(1,881)
|
|
|
$
|
(328)
|
- Hong Kong
|
|
|
4,449
|
|
|
|
2,142
|
Total net income
|
|
$
|
2,568
|
|
|
$
|
1,814
|
|
|
|
|
|
|
|
|
|
|
March 3 1 , 201
8
|
|
|
December 31, 2017
|
LONG-LIVED ASSETS WITHIN:
|
|
|
|
|
|
|
|
- Real estate properties under development in PRC, excluding
Hong Kong
|
|
$
|
56,193
|
|
|
$
|
56,460
|
- Property, plant and equipment in PRC, excluding Hong Kong
|
|
|
34,865
|
|
|
|
33,894
|
- Hong Kong
|
|
|
75
|
|
|
|
3,082
|
Total long-lived assets
|
|
$
|
91,133
|
|
|
$
|
89,436
|
View original content:http://www.prnewswire.com/news-releases/nam-tai-property-inc-reports-q1-2018-results-300638747.html
SOURCE Nam Tai Property Inc.