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MarketScreener Homepage  >  Equities  >  Nyse  >  Nam Tai Property Inc.    NTP   VGG639071023

NAM TAI PROPERTY INC.

(NTP)
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Nam Tai Property : NTP Reports Q3 2020 Results

10/30/2020 | 06:05am EST

THIRD QUARTER NEWS RELEASE

NAM TAI PROPERTY INC.

Announces Third Quarter 2020 Results

SHENZHEN, PRC - October 30, 2020 - Nam Tai Property Inc. ("Nam Tai" or the "Company") (NYSE Symbol: NTP) today announced its unaudited financial results for the quarter ended September 30, 2020.

KEY HIGHLIGHTS

In the quarter ended September 30, 2020:

  • Revenue was $1.1 million in the third quarter of 2020, growing 35.4% year-on-year.
  • Consolidated net loss was $4.9 million in the third quarter of 2020, decreasing 23.4% year-on-year.
  • Real estate property under development was $385.2 million as of September 30, 2020, increasing 72.0% year-on-year.
  • Assets held for lease increased by $30.4 million in the third quarter of 2020, mainly due to the transfer of Towers 1, 6 and 7 of Nam Tai Inno Park from real estate properties under development.

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)

Three months ended September 30,

Nine months ended September 30,

2020

2019

YoY(%)

2020

2019

YoY(%)

Revenue

$

1,067

$

788

35.4%

$

2,609

$

2,126

22.7%

Gross profit

$

241

$

464

(48.1)%

$

483

$

1,242

(61.1)%

Net loss from operations

$

(5,775)

$

(6,015)

(4.0)%

$

(13,986)

$

(12,639)

(10.7)%

% of revenue

(541.2)%

(763.3)%

(536.1)%

(594.5)%

per share (diluted)

$

(0.15)

$

(0.16)

(6.3)%

$

(0.36)

$

(0.33)

9.1%

Consolidated net loss

$

(4,850)

$

(6,330)

(23.4)%

$

(11,810)

$

(11,473)

2.9%

% of revenue

(454.5

)%

(803.3

)%

(452.7

)%

(539.7

)%

Basic loss per share

$

(0.12)

$

(0.17)

(29.4)%

$

(0.30)

$

(0.30)

-

Diluted loss per share

$

(0.12)

$

(0.17)

(29.4)%

$

(0.30)

$

(0.30)

-

Weighted average number of shares ('000)

Basic

39,072

38,342

38,950

38,246

Diluted

39,072

38,342

38,950

38,246

1

Financial Position

As of September 30,

As of December 31,

As of September 30,

2020

2019

2019

Cash and cash equivalents(a)

$

72,075

$

130,218

$

66,924

Restricted cash

$

1,975

$

-

$

-

Short-term investments(b)

$

-

$

2,166

$

-

Prepaid expenses and other receivables

$

6,600

$

9,338

$

6,706

Real estate properties under development, net

$

385,227

$

251,685

$

223,985

Property, plant and equipment, net

$

25,779

$

25,950

$

26,829

Assets held for lease, net

$

30,375

$

-

$

-

Right of use assets

$

9,580

$

4,078

$

-

Deferred income tax assets

$

3,292

$

2,011

$

-

Total assets

$

536,561

$

430,410

$

327,467

Accounts payable

$

52,573

$

36,676

$

46,255

Advance from customers

$

122,012

$

67,642

$

55,548

Lease liabilities

$

9,922

$

4,171

$

-

Short-term bank loans

$

1,401

$

1,410

$

-

Long-term bank loans

$

133,204

$

95,942

$

7,072

Total shareholders' equity

$

211,761

$

214,738

$

214,017

Total number of common shares issued

39,198

38,632

38,442

Notes:

  1. Cash and cash equivalents include all cash balances and certificates of deposit having a maturity date of three months or less upon acquisition.
  2. Short-terminvestments include all highly liquid investments with original maturities of greater than three months and less than 12 months and investments that are expected to be realized in cash during the next 12 months.

SUPPLEMENTARY INFORMATION (UNAUDITED) IN THE THIRD QUARTER OF 2020

Key Highlights of Financial Position

As of September 30,

As of December 31,

As of September 30,

2020

2019

2019

Ratio of cash(a) to current liabilities

0.38

1.16

0.63

Current ratio(b)

1.01

1.25

0.70

Debt ratio(c)

60.5

%

50.1

%

34.6%

Return on equity

(7.4)%

(3.0)%

(6.9)%

Ratio of total liabilities to total equity

1.53

1.00

0.53

Notes:

  1. Cash in this financial ratio includes cash, cash equivalents and short-term investments.
  2. Current ratio equals current assets, including prepaid expenses and other receivables, divided by current liabilities for the period.
  3. Debt ratio equals total liabilities divided by total assets for the period.

FINANCIAL RESULTS

Revenue

Revenue for the third quarter of 2020 was $1.1 million compared to $0.8 million in the third quarter of 2019. 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. Revenue for the third quarter of 2019 mainly consisted of rental income of $0.7 million from the existing factory buildings located on the sites of Inno Valley and Wuxi.

Revenue for the nine months of 2020 was $2.6 million compared to $2.1 million in the nine months of 2019. Revenue for the nine months of 2020 mainly consisted of rental income of $1.8 million from the existing factory buildings located on the sites of Inno Valley and Wuxi, $0.3 million from Nam Tai · U-Creative Space (Lujiazui) and Nam Tai • Tang Xi Technology Park, and $0.1 million from Nam Tai Inno Park. Revenue for the nine months of 2019 mainly consisted of rental income of $1.8 million from the existing factory buildings located on the sites of Inno Valley and Wuxi.

2

Gross Profit

Gross profit for the third quarter of 2020 was $0.2 million compared to $0.5 million in the third quarter of 2019. 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. Gross profit for the third quarter of 2019 mainly consisted of revenue of $0.8 million, offset by cost of $0.3 million for the period. The decline in gross profit for the third quarter of 2020, year-on-year, was mainly due to the rental expenses of $0.3 million paid for Nam Tai·U-Creative Space (Lujiazui), which were not incurred in the third quarter of 2019.

Gross profit for the nine months of 2020 was $0.5 million compared to $1.2 million in the nine months of 2019. Gross profit for the nine months of 2020 mainly consisted of revenue of $2.6 million, offset by cost of $2.1 million for the period. Gross profit for the nine months of 2019 mainly consisted of revenue of $2.1 million, offset by cost of $0.9 million for the period.

Net Loss from Operations

Net loss from operations for the third quarter of 2020 was $5.8 million compared to net loss from operations of $6.0 million in the third quarter of 2019. 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, which were offset in part by our gross profit of $0.2 million for the period. Net loss from operations for the third quarter of 2019 mainly consisted of general and administrative expenses of $2.7 million and selling and marketing expenses of $3.8 million, which were offset in part by our gross profit of $0.5 million for the period. Compared with the third quarter of 2019, the increase of $1.1 million in general and administrative expenses for the third quarter of 2020 was mainly due to the increase of $1.3 million in agent and professional fees. The decrease in selling and marketing expense of $1.6 million for the third quarter of 2020 was mainly due to the marketing and commission fees of $1.2million incurred by Nam Tai Inno Park, which were $2.8million for the third quarter of 2019.

Net loss from operations for the nine months of 2020 was $14.0 million compared to net loss from operations of $12.6 million in the nine months of 2019. Net loss from operations for the nine months of 2020 mainly consisted of general and administrative expenses of $9.4 million and selling and marketing expenses of $5.1 million, which were offset in part by our gross profit of $0.5 million for the period. Net loss from operations for the nine months of 2019 mainly consisted of general and administrative expenses of $8.5 million and selling and marketing expenses of $5.4 million, which were offset in part by our gross profit of $1.2 million for the period. Compared with the nine months of 2019, the increase of $0.9 million in general and administrative expenses for the nine months of 2020 was mainly due to the increase of $1.3 million in agent and professional fees. The decrease in selling and marketing expenses of $0.3 million for the nine months of 2020 was mainly due to the decrease in the marketing and commission fees of Nam Tai Inno Park.

Consolidated Net Loss

Consolidated net loss for the third quarter of 2020 was $4.9 million compared to net loss of $6.3 million for the third quarter of 2019. 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. Consolidated net loss for the third quarter of 2019 mainly consisted of net loss from operations of $6.0 million and other net expenses of $0.8 million, which were offset in part by interest income of $0.5 million.

Consolidated net loss for the nine months of 2020 was $11.8 million compared to net loss of $11.5 million in the nine months of 2019. Consolidated net loss for the nine months of 2020 mainly consisted of net loss from operations of $14.0 million, which was offset in part by interest income of $1.1 million from time deposits, deferred income tax credit of $1.1 million and other net expenses of $0.02 million. Consolidated net loss for the nine months of 2019 mainly consisted of net loss from operations of $12.6 million and other net expenses of $0.8 million, offset in part by interest income of $2.0 million.

Cash and Cash Equivalents and Short-term Investments

Cash and cash equivalents and short-term investments decreased by $60.3 million from $132.4 million as of December 31, 2019 to $72.1 million as of September 30, 2020. The decrease was mainly due to the payment of $148.7 million for real estate properties under development, the repayment of $38.5 million for bank loans, and the purchase of property, plant and equipment of $0.7 million, which was offset by proceeds from shares issued for option exercise of $3.8 million, advance from customers of $54.4 million and the withdrawal of the long-term bank loans of $73.2 million in the nine months of 2020.

Restricted Cash

Restricted cash increased by $2.0 million as of September 30, 2020. No restricted cash existed at the end of 2019. The increase mainly included $1.2 million security cash deposit and $0.8 million cash deposit for a bank loan granted. The security cash deposit was due to the guarantee provided by the Company for the bank loan of some of our long-term rental customers, which will be gradually released from the bank according to the repayment progress of such customers. We expect that there will be no significant risk to the deposits.

3

Prepaid Expenses and Other Receivables

Prepaid expenses and other receivables decreased by $2.7 million from $9.3 million as of December 31, 2019 to $6.6 million as of September 30, 2020. The decline was mainly due to the decrease of $1.1 million in other current assets, $0.1 million in interest receivable, $0.2 million in other receivables and $1.4 million in prepayments.

Real Estate Properties under Development, Net

Real estate properties under development increased by $133.5 million from $251.7 million as of December 31, 2019 to $385.2 million as of September 30, 2020. The increase consisted of $9.6 million for the construction of Nam Tai Inno Park, $14.3 million for the construction of Nam Tai Technology Center, and $109.5 million for the land price and construction of Nam Tai • Longxi.

Assets Held for Lease, Net

Assets held for lease increased by $30.4 million as of September 30, 2020, which was mainly due to the transfer of Towers 1, 6 and 7 of Nam Tai Inno Park from real estate properties under development in the third quarter of 2020.

Right of Use Assets

Right of use assets increased by $5.5 million from $4.1 million as of December 31, 2019 to $9.6 million as of September 30, 2020. The increase was mainly due to the recognition of right of use assets of $5.8 million for Nam Tai • U-Creative Space (Lujiazui). In addition, the recognition of right of use assets for Nam Tai • Tang Xi Technology Park and Hong Kong office decreased by a total of $0.3 million, in accordance with Accounting Standards Codification ("ASC") 842 Leases which became effective on January 1, 2019.

Deferred Income Tax Assets

Deferred income tax assets increased by $1.3 million from $2.0 million as of December 31, 2019 to $3.3 million as of September 30, 2020. The increase was mainly due to the loss of $3.9 million incurred during the construction of Nam Tai Technology Center in the nine months of 2020, which was expected to be utilized in the next five years.

Accounts Payable

Accounts payable increased by $15.9 million from $36.7 million as of December 31, 2019 to $52.6 million as of September 30, 2020. The increase mainly consisted of the increase of project payables for Nam Tai Technology Center of $3.0 million and the increase of project payables for Nam Tai Inno Park of $8.1 million.

Advance from Customers

Advance from customers increased by $54.4 million from $67.6 million as of December 31, 2019 to $122.0 million as of September 30, 2020. The increase was mainly attributed to $53.7 million in prepaid rent received from customers of Nam Tai Inno Park.

Lease Liabilities

Lease liabilities increased by $5.7 million from $4.2 million as of December 31, 2019 to $9.9 million as of September 30, 2020. The increase was mainly due to the recognition of lease liabilities of $6.0 million for Nam Tai • U-Creative Space (Lujiazui). In addition, the recognition of lease liabilities for Nam Tai • Tang Xi Technology Park and Hong Kong office decreased by a total of $0.3 million in accordance with ASC 842 Leases.

Long-term Bank Loans

Long-term bank loans increased by $37.3 million from $95.9 million as of December 31, 2019 to $133.2 million as of September 30, 2020. As of September 30, 2020, the balance of long-term bank loan mainly included the borrowings of $6.7 million from Bank of Beijing, $106.9 million from Bank of China, $15.7 million from Xiamen International Bank, and $3.9 million from Industrial Bank (China). The increase was mainly due to the withdrawal of $106.9 million from Bank of China and $15.7 million from Xiamen International Bank. In the third quarter of 2020, the Company repaid bank borrowings amounted to $30.4 million. The total repayment in the nine months of 2020 amounted to $38.5 million.

4

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Nam Tai Property Inc. published this content on 30 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2020 11:04:09 UTC


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Financials (USD)
Sales 2019 2,97 M - -
Net income 2019 -13,2 M - -
Net cash 2019 28,7 M - -
P/E ratio 2019 -25,0x
Yield 2019 -
Capitalization 399 M 399 M -
EV / Sales 2018 537x
EV / Sales 2019 102x
Nbr of Employees 105
Free-Float 42,2%
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NameTitle
Jiabiao Wang Chief Executive Officer
Lai Ling Tam Executive Chairman
Wai Hang Wan Chief Financial Officer
Peter R. Kellogg Independent Non-Executive Director
Mark Waslen Independent Non-Executive Director