SHENZHEN, China, Oct. 30, 2020 /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, 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
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
(a)
Cash and cash equivalents include all cash balances and
certificates of deposit having a maturity date of three months or
less upon
acquisition.
|
(b)
Short-term investments 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:
|
|
|
|
|
|
|
(a)
Cash in this financial ratio includes cash, cash equivalents and
short-term investments.
|
(b)
Current ratio equals current assets, including prepaid expenses
and other receivables, divided by current liabilities for the
period.
|
(c)
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.
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.
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.
Liquidity and Capital Resources
As of September 30, 2020, the
Company had total cash and cash equivalents and short-term
investments of $72.1 million. As of
December 31, 2019, the Company had
total cash and cash equivalents and short-term investments of
$132.4 million.
According to our project investment plan, the capital
expenditure for the fourth quarter of 2020 is estimated to be
$49.2 million. By the end of 2020,
our capital expenditure in the year is estimated to reach
$207.8 million.
Please refer to the Company's Condensed Consolidated Statements
of Comprehensive Income for the periods ended September 30, 2020 and 2019 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
Progress of Leasing and Business Invitation
As of September 30, 2020, we had
leasable area of approximately 365,000 square meters, of which
around 85% was located in Shenzhen
and around 15% was located in Wuxi and Shanghai. As of September 30, 2020, the occupancy rate of our
Shenzhen projects, including
pre-leasing areas, was approximately 38%, and the occupancy rate of
Wuxi and Shanghai projects was
approximately 97%. The occupancy rate of Nam Tai Inno Park was 31%
with an increase of eight percentage points from the quarter ended
June 30, 2020.
Projects
|
|
Leasable Area as
of September 30,
2020
|
|
Occupancy
Rate
|
Shenzhen
|
|
310,193
|
|
38%
|
Nam Tai Inno
Park
|
|
264,337
|
|
31%
|
Nam Tai Inno
Valley
|
|
38,270
|
|
83%
|
Nam Tai • Tang Xi
Technology Park
|
|
7,586
|
|
72%
|
Wuxi &
Shanghai
|
|
54,809
|
|
97%
|
Wuxi
facilities
|
|
50,828
|
|
100%
|
Nam Tai • U-Creative
Space (Lujiazui)
|
|
3,981
|
|
54%
|
Total
|
|
365,002
|
|
47%
|
On September 10, 2020, the Company
launched the grand opening of Nam Tai Inno Park as a part of the
"Tech Empowerment • Greater Bay Area" – Technology and Industry
Development Summit held at Guangming Community Sports Center. The
opening of the Park marked the first project launched to the market
in Nam Tai's portfolio and highlighted the progress the Company was
making towards its strategy to be a leading operator of technology
parks. At the event, Nam Tai hosted a ceremony with corporate
tenants and business partners, including Taihang Automobiles,
Mornsun Electronics, Yihong Technology, as well as Harbin Institute
of Technology (Shenzhen) and Cowin
Capital, among others.
Project Construction and Development Progress
- For Nam Tai Inno Park, as of
September 30, 2020, the units in the
Tower 1 were delivered to tenants, and the construction of Towers 6
and 7 was completed and they are ready to use. In the third quarter
of 2020, we attracted 16 corporate tenants. We will continue to
deliver units to our tenants in the fourth quarter of 2020 and
2021.
- For Nam Tai Technology Center, the main structures of the
basements of Towers A and C were completed as of September 30, 2020. Meanwhile, the basement
levels of Towers B and D are still under decoration and
construction. Currently, we have not yet met the conditions for
obtaining the pre-sale permit.
- For Nam Tai Inno Valley, the
occupancy rate is 83% and 52% of tenants are from high-end and
general equipment manufacturing industries as at September 30, 2020. The urban renewal project is
still in the application status and we will disclose the
information about the progress of the urban renewal applications in
due course.
- As of September 30, 2020, we had
managed to obtain the foundation work construction permit for Nam
Tai • Longxi project. At present, the construction team is
conducting piling and shoring work.
Industrial Operation Progress
- Together with Shenzhen Branch
of China Mobile Group Guangdong Co., Ltd., the Company established
the China Mobile 5G Innovation Center in Nam Tai Inno Park,
providing 5G innovation research public services, artificial
intelligence, research and development of 5G, detection and
inspection, along with transfer of technological results and other
services for enterprises in the park. Besides, the Company and
Shenzhen Integrated Circuit Association established Integrated
Circuit Industry Base and Integrated Circuit Industry Public
Service Platform, providing public design platform for the
integrated circuit industry, public test service platform, talent
training and other types of services, which is conducive to
improving the industrial agglomeration of the park and enriching
the industrial development.
- In August 2020, we held the
fourth Guangming District Innovation and Entrepreneurship
Sub-Contest 2020 in Nam Tai Inno Park, which was hosted by the
Science and Technological Innovation Bureau of Guangming District
in Shenzhen and guided by the
Shenzhen Science and Technology Innovation Committee and the
People's Government of Guangming District in Shenzhen. It received the supports of a
numbers of innovative enterprises in Guangming District.
- In the third quarter of 2020, we held numerous industrial
operation activities, including two special exchange activities.
The themes of the industrial activities included: Future Insights
on Guangming District -- AI Technology Application Salon and Nam
Tai Group x Big Data and AI Industry Alliance -- "Visiting AI
Unicorn SenseTime", etc. These activities demonstrated the service
and resource advantages of Nam Tai Inno Park and strengthened Nam
Tai's industrial operation services.
Awards and Recognitions
- In August 2020, Towers A, B
and C of Nam Tai Technology Center received Gold precertification
under the Leadership in Energy and Environmental Design (LEED) v4
Building Design and Construction: Core and Shell Development (CS)
rating system. This precertification is an endorsement of the
Company's commitment to high-performance green buildings and an
acknowledgement of the progress we have made on this key
development project.
- On August 8, 2020, the "20th
Annual Conference of the Boao·21st Century Real Estate Forum",
initiated by 21st Century Business Herald and co-organized by China
Real Estate Chamber of Commerce and Elite Habitat Development
Foundation, was concluded in Shanghai, Nam Tai was honored to receive the
"Industrial Real Estate Model Enterprise of 2020" award for its
comprehensive capacities and brand influence.
- On August 17, 2020, China Real
Estate Information Corp. ("CRIC") announced top lists of eight
categories of properties, which included residential buildings,
properties, commercial buildings, offices, long-term rental
properties, hotels and landmarks. With highly adaptable operational
model and high quality operational services, Nam Tai was awarded
the "Top 20 2020 Guangdong-Hong Kong-Macau Greater Bay Area
Excellent Industrial Park Operator."
Policy Update
This year marks the 40th anniversary of the establishment of the
Shenzhen Special Economic Zone. In terms of policy development, the
General Office of the Communist Party of China Central Committee
and the General Office of the State Council issued the
"Implementation Plan for Comprehensive Reform to Build Shenzhen
Demonstration Pilot Area of Socialism with Chinese Characteristics
(2020-2025) (the "Implementation Plan") on October 11, 2020. Major reform measures are
expected to be taken in the spheres of market-based allocation of
production factors, business environment optimization, and the
utilization of urban space, while a list specifying the first batch
of authorized matters shall be formulated and implemented.
On August 18, 2020, Shenzhen Metro
Line 6 was officially put into operation. Commencing from the
Science Museum Station, Shenzhen Metro Line 6 passes through Futian
District, Luohu District, Guangming District and Bao'an District.
As an express line in Central and Western
Shenzhen, the opening of Line 6 will promote the development
of Guangming District, boost the improvement of urban spacing, and
strengthen the connection with Dongguan and other surrounding cities.
Nam Tai Inno Park is only about 1.2
kilometers away from Changzhen station and 1.7 kilometers away from
Fenghuangcheng station of Line 6. With Line 6, the project can be
conveniently connected to the central areas in Shenzhen such as Futian Central Business
District ("CBD") and Nanshan CBD. The vigorous construction and
development of the Guangming Science City in Shenzhen is also boosting the prospects of the
Company's technology parks in the nearby areas.
RISKS RELATED TO OUR BUSINESS
Legal Proceedings
In October 2020, IsZo Capital LP
("Claimant") commenced legal proceedings against us and other
parties in the High Court of Justice of the British Virgin Islands of the Eastern
Caribbean Supreme Court. The claims contested, among other things,
that the private placement previously announced by us on
October 5, 2020 was invalid and
should be set aside, and the Claimant also seeks to require us hold
a special meeting regarding the election of directors. In an order
made ex parte, without notice to us, the Court granted the
Claimant's request for a preliminary injunction enjoining us from
taking certain corporate actions pending additional hearings to be
held before the Court. In a Court hearing subsequent to the order,
we have provided undertakings to the Court that we will continue
the preservation of the position until the Court has the
opportunity to consider additional details and evidence related to
the claims. We are currently unable to estimate the potential loss,
if any, associated with the resolution of such lawsuit, if it
proceeds. We anticipate that we will continue to be a target for
lawsuits in the future. There can be no assurance that we will be
able to prevail in our defense or reverse any unfavorable judgment
on appeal, and we may decide to settle lawsuits on unfavorable
terms. Any adverse outcome of these cases, including any
plaintiffs' appeal of the judgment in these cases, could result in
payments of substantial monetary damages or fines, or changes to
our business practices, and thus have a material adverse effect on
our business, financial condition, results of operation, cash flows
and reputation. The litigation process may utilize a significant
portion of our cash resources and divert management's attention
from the day-to-day operations of our company, all of which could
harm our business. We also may be subject to claims for
indemnification related to these matters, and we cannot predict the
impact that indemnification claims may have on our business or
financial results.
For more details on the risks related to our business, please
refer to "Item 3-Key Information -D Risk Factors-Risks Related to
Our Business" on our 2019 annual report included in the Form
20-F.
OPERATING RESULTS
|
|
As of September
30, 2020
|
(By Floor
Area)
|
|
(in square
meter)
|
Project
Completed
|
|
44,180
|
Project Under
Development
|
|
592,387
|
Project For Future
Development
|
|
170,200
|
Total
|
|
806,767
|
Project Portfolio - As of September
30, 2020
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)
|
|
110,271(c)
|
Total GFA
|
Completed(d)
|
|
|
44,180(e)
|
|
-
|
|
-
|
|
-
|
Under
Development (sq.m.)
|
|
|
287,521
|
|
194,595
|
|
-
|
|
110,271(c)
|
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
our projects are based on our development plans or certificates
issued by the relevant authority subject to adjustment upon its
final approval.
|
(b) The gross floor
area is based on the assumption that we will receive M-0 zoning
approval for the entire Inno Valley site prior to its
redevelopment. If we do not receive the M-0 zoning approval, we
will be required to develop Inno Valley under the M-1 zoning
requirements. In that case, appropriate adjustments to our 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. We cannot guarantee that we will
be able to develop Inno Valley according to the floor area
currently disclosed.
|
(c) The figures are
subject to adjustment upon the final approval of the relevant
authority.
|
(d) Properties
completed mean that after the registration of completion
acceptance, the constructions of the properties are completed and
the internal acceptance criteria are met.
|
(e) As of September
30, 2020, the construction of Towers 1, 6 and 7 of Nam Tai Inno
Park was completed.
|
Properties Under Development
The table below sets forth certain information of our property
projects under development as of September
30, 2020, comprising properties under development with the
land use right certificate and construction permits obtained but
the construction work was still in progress.
Project
|
|
Nam Tai Inno
Park
|
|
Nam Tai Technology
Center
|
|
Nam Tai •
Longxi
|
City
|
|
Shenzhen
|
|
Shenzhen
|
|
Dongguan
|
(Estimated) Total GFA
(sq. m.)
|
|
331,701
|
|
194,595
|
|
110,271
|
(Estimated) Leasable
GFA (sq. m.)
|
|
264,337
|
|
-
|
|
-
|
(Estimated) Saleable
GFA (sq. m.)
|
|
-
|
|
130,166
|
|
64,408(a)
|
Commencement of
Construction
|
|
May 2017
|
|
December
2018
|
|
July 2020
|
Status of Pre-sale
Permit
|
|
Not
eligible
|
|
To be
obtained
|
|
To be
obtained
|
Estimated Completion
Time
|
|
2020 Q4
|
|
2022 Q1
|
|
2022
|
Interest Attributable
to Us
|
|
100%
|
|
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.
|
Properties for Future Development
The table below sets forth certain information of our property
projects held for future development as of September 30, 2020, comprising properties for
which we have obtained the land use right certificate while the
construction commencement permit has not yet been 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 our projects
leased from third parties for operation and management as of
September 30, 2020.
|
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 OUR
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
our future financial performance based on our growth strategies and
anticipated trends in our business and the industry in which we
operate. These statements are only predictions based on our current
expectations about future events. There are several factors, many
beyond our control, which could cause results to differ materially
from our expectation. These risk factors are described in our
Annual Report on Form 20-F and in our 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 our business, results of operations
or financial condition. There may also be other factors currently
unknown to us, or have not been described by us, that could cause
our results to differ from our expectations. Although we believe
the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels 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
announcement; 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
announcement or those that might reflect the occurrence of
unanticipated events.
SCHEDULE FOR RELEASE OF QUARTERLY FINANCIAL RESULTS FOR
2020
Announcements of Financial Results
Quarter
|
|
Date of
release
|
Q1 2020
|
|
April 27, 2020
(Monday)
|
Q2 2020
|
|
July 24, 2020
(Friday)
|
Q3 2020
|
|
October 30, 2020
(Friday)
|
Q4 2020
|
|
February 1, 2021
(Monday)
|
ABOUT NAM TAI PROPERTY INC.
We are a real estate developer and operator, mainly conducting
business in Mainland China. Our main land resources are located in
the Guangdong-Hong Kong-Macao
Greater Bay Area ("Greater Bay Area") and Wuxi, China, 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. We
plan 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, we have 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. We will also expand the commercial and
residential property business in China as an auxiliary development strategy of
the Company. As the growth prospects of China maintain, we will actively seize
development opportunities in the Greater Bay Area and other first-
and second-tier cities in China,
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 our press releases and financial results.
NAM TAI PROPERTY
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
FOR THE PERIODS ENDED
SEPTEMBER 30, 2020 AND 2019
|
(In Thousands of US
dollars except share and per share data)
|
|
|
|
|
|
|
|
|
|
Three months
ended September 30,
|
|
|
Nine months
ended September 30,
|
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Revenue
(1)
|
|
|
1,067
|
|
|
|
788
|
|
|
|
2,609
|
|
|
|
2,126
|
|
Cost of
revenue
|
|
|
(826)
|
|
|
|
(324)
|
|
|
|
(2,126)
|
|
|
|
(884)
|
|
Gross
profit
|
|
$
|
241
|
|
|
$
|
464
|
|
|
$
|
483
|
|
|
$
|
1,242
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
(3,808)
|
|
|
|
(2,727)
|
|
|
|
(9,356)
|
|
|
|
(8,493)
|
|
Selling and marketing
expenses
|
|
|
(2,208)
|
|
|
|
(3,752)
|
|
|
|
(5,113)
|
|
|
|
(5,388)
|
|
|
|
$
|
(6,016)
|
|
|
$
|
(6,479)
|
|
|
$
|
(14,469)
|
|
|
$
|
(13,881)
|
|
Net loss from
operations
|
|
$
|
(5,775)
|
|
|
$
|
(6,015)
|
|
|
$
|
(13,986)
|
|
|
$
|
(12,639)
|
|
Other expense, net
(2)
|
|
|
43
|
|
|
|
(802)
|
|
|
|
(16)
|
|
|
|
(820)
|
|
Interest
income
|
|
|
273
|
|
|
|
487
|
|
|
|
1,052
|
|
|
|
1,986
|
|
Loss before
income tax
|
|
$
|
(5,459)
|
|
|
$
|
(6,330)
|
|
|
$
|
(12,950)
|
|
|
$
|
(11,473)
|
|
Deferred income tax
credit
|
|
|
609
|
|
|
|
—
|
|
|
|
1,140
|
|
|
|
—
|
|
Consolidated net
loss
|
|
$
|
(4,850)
|
|
|
$
|
(6,330)
|
|
|
$
|
(11,810)
|
|
|
$
|
(11,473)
|
|
Other
comprehensive income (loss) (3)
|
|
|
6,607
|
|
|
|
(4,289)
|
|
|
|
4,113
|
|
|
|
(4,248)
|
|
Functional currency
translation adjustment
|
|
|
6,607
|
|
|
|
(4,289)
|
|
|
|
4,113
|
|
|
|
(4,248)
|
|
Consolidated
comprehensive income (loss)
|
|
$
|
1,757
|
|
|
$
|
(10,619)
|
|
|
$
|
(7,697)
|
|
|
$
|
(15,721)
|
|
Loss Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.12)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.30)
|
|
|
$
|
(0.30)
|
|
Diluted
|
|
$
|
(0.12)
|
|
|
$
|
(0.17)
|
|
|
$
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
(1)
Inno Valley has been open for leasing since July 2018. The
property at Wuxi has been rented to a third party lessee with a
term of 12
years ending in October 2030.
|
(2)
Other expense, net, includes an exchange
loss of $0.02 million and $0.9 million for the three
months ended September 30, 2020 and 2019
respectively.
|
(3)
Other comprehensive loss was due to foreign
exchange translation.
|
NAM TAI PROPERTY
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
AS AT SEPTEMBER 30,
2020 AND SEPTEMBER 30, 2019
|
(In Thousands of
US dollars)
|
|
|
|
|
|
|
|
September 30,
2020
|
|
December
31,
2019
|
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents(1)
|
|
|
72,075
|
|
|
130,218
|
Restricted
cash
|
|
|
1,975
|
|
|
—
|
Short-term
investments(1)
|
|
|
—
|
|
|
2,166
|
Rental
deposits
|
|
|
156
|
|
|
—
|
Accounts
receivable
|
|
|
1,134
|
|
|
1,032
|
Real estate properties
under development, net(2)
|
|
|
109,470
|
|
|
—
|
Prepaid expenses and
other receivables
|
|
|
6,600
|
|
|
9,338
|
Total current
assets
|
|
$
|
191,410
|
|
$
|
142,754
|
Rental
deposits
|
|
|
275
|
|
|
243
|
Real estate properties
under development, net(2)
|
|
|
275,757
|
|
|
251, 685
|
Property, plant and
equipment, net
|
|
|
25,779
|
|
|
25,950
|
Assets held for lease,
net
|
|
|
30,375
|
|
|
—
|
Right of use
assets
|
|
|
9,580
|
|
|
4,078
|
Deferred income tax
assets
|
|
|
3,292
|
|
|
2,011
|
Prepaid
expenses
|
|
|
—
|
|
|
3,598
|
Other
assets
|
|
|
93
|
|
|
91
|
Total
assets
|
|
$
|
536,561
|
|
$
|
430,410
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term bank
loan
|
|
|
1,401
|
|
|
1,410
|
Current portion of
long-term bank loans
|
|
|
6,639
|
|
|
2,081
|
Accounts
payable
|
|
|
52,573
|
|
|
36,676
|
Rental deposits from
customers
|
|
|
887
|
|
|
343
|
Accrued expenses and
other payables
|
|
|
4,517
|
|
|
5,699
|
Advance from
customers
|
|
|
122,012
|
|
|
67,642
|
Current portion of
lease liabilities
|
|
|
1,088
|
|
|
529
|
Total current
liabilities
|
|
$
|
189,117
|
|
$
|
114,380
|
Long-term bank
loans
|
|
|
126,565
|
|
|
93,861
|
Rental deposits from
customers
|
|
|
264
|
|
|
178
|
Financing lease
payable
|
|
|
20
|
|
|
13
|
Other payables
|
|
|
—
|
|
|
3,598
|
Noncurrent portion of
lease liabilities
|
|
|
8,834
|
|
|
3,642
|
Total
liabilities
|
|
$
|
324,800
|
|
$
|
215,672
|
EQUITY
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Common
shares
|
|
|
392
|
|
|
386
|
Additional paid-in
capital
|
|
|
265,009
|
|
|
260,295
|
Accumulated
losses
|
|
|
(38,330)
|
|
|
(26,520)
|
Accumulated other
comprehensive loss(3)
|
|
|
(15,310)
|
|
|
(19,423)
|
Total shareholders'
equity
|
|
$
|
211,761
|
|
$
|
214,738
|
Total liabilities and
shareholders' equity
|
|
$
|
536,561
|
|
$
|
430,410
|
|
|
|
|
|
Notes:
|
|
|
|
|
(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 would qualify under such definition.
|
(2)
Capitalization on project investment was $14.6 million for the
third quarter of 2020 and accumulated project investment was $385.2
million as of September 30, 2020.
|
(3)
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, 2020 AND 2019
|
(In Thousands of
US dollars)
|
|
|
|
|
|
|
|
|
Three months
ended September 30,
|
|
|
Nine months
ended September 30,
|
2020
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net
loss
|
|
$
|
(4,850)
|
|
|
$
|
(6,330)
|
|
|
$
|
(11,810)
|
|
|
$
|
(11,473)
|
Adjustments to
reconcile consolidated net loss to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
526
|
|
|
|
350
|
|
|
|
1,303
|
|
|
|
1,136
|
Amortization of right
of use assets
|
|
|
455
|
|
|
|
—
|
|
|
|
1,307
|
|
|
|
—
|
Gain on disposal of
property, plant and equipment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(15)
|
Share-based
compensation expenses
|
|
|
(372)
|
|
|
|
147
|
|
|
|
730
|
|
|
|
395
|
Unrealized exchange
gain
|
|
|
16
|
|
|
|
916
|
|
|
|
(12)
|
|
|
|
992
|
Deferred income tax
credit
|
|
|
(766)
|
|
|
|
—
|
|
|
|
(1,281)
|
|
|
|
—
|
Changes in assets
and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in accounts
receivable
|
|
|
(96)
|
|
|
|
(171)
|
|
|
|
(102)
|
|
|
|
(570)
|
Decrease (increase) in
prepaid expenses and other receivables
|
|
|
(3,504)
|
|
|
|
599
|
|
|
|
2,738
|
|
|
|
(43)
|
Increase in
deposit
|
|
|
(10)
|
|
|
|
—
|
|
|
|
(188)
|
|
|
|
—
|
Increase in property
under development
|
|
|
(5,045)
|
|
|
|
—
|
|
|
|
(107,857)
|
|
|
|
—
|
Increase (decrease) in
accrued expenses and other payables
|
|
|
3,482
|
|
|
|
1,655
|
|
|
|
(2,003)
|
|
|
|
1,312
|
Decrease in accounts
payable
|
|
|
825
|
|
|
|
—
|
|
|
|
239
|
|
|
|
—
|
Decrease in lease
liabilities
|
|
|
(248)
|
|
|
|
—
|
|
|
|
(1,099)
|
|
|
|
—
|
Increase in advance
from customers
|
|
|
26,128
|
|
|
|
34,194
|
|
|
|
54,370
|
|
|
|
55,293
|
Increase in rental
deposits from customers
|
|
|
503
|
|
|
|
40
|
|
|
|
973
|
|
|
|
526
|
Increase in financing
lease payable
|
|
|
7
|
|
|
|
—
|
|
|
|
7
|
|
|
|
—
|
Total
adjustments
|
|
$
|
21,901
|
|
|
$
|
37,730
|
|
|
$
|
(50,875)
|
|
|
$
|
59,026
|
Net cash provided by
(used in) operating activities
|
|
$
|
17,051
|
|
|
$
|
31,400
|
|
|
$
|
(62,685)
|
|
|
$
|
47,553
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment for real
estate properties under development
|
|
|
(29,315)
|
|
|
|
(67,869)
|
|
|
|
(40,860)
|
|
|
|
(95,216)
|
Purchase of property,
plant & equipment
|
|
|
(280)
|
|
|
|
(184)
|
|
|
|
(677)
|
|
|
|
(576)
|
Proceeds from disposal
of property, plant and equipment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
68
|
Redemption of
marketable securities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,580
|
Decrease in short-term
investments
|
|
|
—
|
|
|
|
1,723
|
|
|
|
2,166
|
|
|
|
39,372
|
Net cash used
in investing activities
|
|
$
|
(29,595)
|
|
|
$
|
(66,330)
|
|
|
$
|
(39,371)
|
|
|
$
|
(48,772)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
|
—
|
|
|
|
(41)
|
|
|
|
—
|
|
|
|
(41)
|
Repayment for bank
loan
|
|
|
(30,362)
|
|
|
|
—
|
|
|
|
(38,497)
|
|
|
|
—
|
Proceeds from bank
loan
|
|
|
34,971
|
|
|
|
7,072
|
|
|
|
73,245
|
|
|
|
7,072
|
Proceeds from shares
issued for option exercise
|
|
|
1,744
|
|
|
|
1,293
|
|
|
|
3,793
|
|
|
|
1,453
|
Net cash provided by
financing activities
|
|
$
|
6,353
|
|
|
$
|
8,324
|
|
|
$
|
38,541
|
|
|
$
|
8,484
|
Net (decrease)
increase in cash, cash equivalents and restricted cash
|
|
$
|
(6,191)
|
|
|
$
|
(26,606)
|
|
|
$
|
(63,515)
|
|
|
$
|
7,265
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
|
69,225
|
|
|
|
96,259
|
|
|
|
130,218
|
|
|
|
62,919
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
|
|
11,016
|
|
|
|
(2,729)
|
|
|
|
7,347
|
|
|
|
(3,260)
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
74,050
|
|
|
$
|
66,924
|
|
|
$
|
74,050
|
|
|
$
|
66,924
|
SUPPLEMENTARY
INFORMATION ON CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
72,075
|
|
|
$
|
66,924
|
|
|
$
|
72,075
|
|
|
$
|
66,924
|
Restricted
cash
|
|
$
|
1,975
|
|
|
$
|
—
|
|
|
$
|
1,975
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAM TAI PROPERTY
INC.
|
NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
|
FOR THE PERIODS ENDED
SEPTEMBER 30, 2020 AND 2019
|
(In Thousands of
US dollars)
|
|
|
|
|
|
|
1. These
financial statements, including the consolidated balance sheet as
of December 31, 2019, 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, 2019.
|
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 ending December 31, 2020.
|
3. Accumulated
other comprehensive loss represents foreign currency translation
adjustments. The consolidated comprehensive income was
$1.8 million for the third quarter ended September 30, 2020, and
the consolidated comprehensive loss was $10.6 million for the
third
quarter ended September 30, 2019, and was $7.7 million and $15.7
million for the nine months ended September 30, 2020 and 2019,
respectively.
|
4. A summary of
the operating income, other (expenses) income, net loss from
operations and long-lived assets by geographical areas is as
follows:
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
OPERATING INCOME
WITHIN:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-PRC, excluding Hong
Kong
|
|
$
|
1,067
|
|
$
|
788
|
|
$
|
2,609
|
|
$
|
2,126
|
|
OTHER (EXPENSES)
INCOME, NET:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Gain (loss) on
exchange difference
|
|
$
|
(16)
|
|
$
|
(916)
|
|
$
|
12
|
|
$
|
(992)
|
|
- Others
|
|
|
59
|
|
|
114
|
|
|
(28)
|
|
|
172
|
|
Total other
(expenses) income, net
|
|
$
|
43
|
|
$
|
(802)
|
|
$
|
(16)
|
|
$
|
(820)
|
|
NET LOSS FROM
OPERATIONS WITHIN:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- PRC, excluding Hong
Kong
|
|
$
|
(2,970)
|
|
$
|
(4,606)
|
|
$
|
(7,243)
|
|
$
|
(7,959)
|
|
- Hong Kong
|
|
|
(1,880)
|
|
|
(1,724)
|
|
|
(4,567)
|
|
|
(3,514)
|
|
Total net
loss
|
|
$
|
(4,850)
|
|
$
|
(6,330)
|
|
$
|
(11,810)
|
|
$
|
(11,473)
|
|
|
|
September 30,
2020
|
|
|
December 31,
2019
|
|
LONG-LIVED ASSETS
WITHIN:
|
|
|
|
|
|
|
|
|
- Real estate
properties under development in PRC,
excluding Hong
Kong
|
|
$
|
385,227
|
|
|
$
|
251,685
|
|
- Property, plant and
equipment in PRC, excluding Hong Kong
|
|
|
25,563
|
|
|
|
25,624
|
|
- Hong Kong
|
|
|
216
|
|
|
|
326
|
|
- Assets held for
lease in PRC, excluding Hong Kong
|
|
|
30,375
|
|
|
|
—
|
|
- Right of use assets
in PRC, excluding Hong Kong
|
|
|
9,319
|
|
|
|
3,597
|
|
- Hong Kong
|
|
|
261
|
|
|
|
481
|
|
Total long-lived
assets
|
|
$
|
450,961
|
|
|
$
|
281,713
|
|
View original
content:http://www.prnewswire.com/news-releases/nam-tai-property-inc-announces-third-quarter-2020-results-301163780.html
SOURCE Nam Tai Property Inc.