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NewsBot Date: August 15, 2006 05:00:00 AM
CHLN News China Housing and Land Development Announces Record Second Quarter Earnings of $0.20 Per Share; Company Sees Strong Earnings Growth Through 2006
NEW YORK--(BUSINESS WIRE)--Aug. 15, 2006--China Housing and Land Development (OTCBB: CHLN) a leading China-based housing and development company, today announced financial results for the quarter ended June 30, 2006.
"We are pleased with the company's financial performance in the second quarter as we have exceeded our financial and operational objectives quarter over quarter," stated China Housing and Land Development CEO and Chairman, Mr. Lu Pingji. "We continue to see strong demand for residential development in second tier cities such as Xi'an as buyers look beyond crowded first tier cities and expensive east coast locations."
For the quarter ended June 30, 2006 China Housing and Land Development recorded revenues of $18,371,816, an increase of $4,334,306 or 31%, compared to $14,037,510 for the three months ended June 30, 2005. The increase in revenues was due to high demand for the Company's residential housing units in Xi'an.
Second Quarter 2006 Highlights:
-- Second quarter revenues grew 31% to $18.4 million from $14.03 million in the same period of 2005.
-- Gross profit increased to $7.6 million from $5.5 million for the same period last year.
-- Net income was $3,740,142 compared with $2,879,030 for the same period in 2005.
-- Fully diluted EPS for the second quarter 2006 rose to $.20 from $.18 for the second quarter of 2005.
Mr. Lu Pingji added, "We are well positioned to lead the strong real estate growth happening in Xi'an. By using our extensive knowledge, relationships with the government, banks, and landowners, we believe we will not only be a leader in the real estate market in Xi'an but be the dominant player in site identification and land acquisition in the region."
Revenues for the quarter ended June 30, 2006 were $18.4 million, an increase of $4.3 million or 31%, compared to $14.0 million for the three months ended June 30, 2005. The increase in revenues was due to high demand for the Company's residential housing units in Xi'an.
Gross Profit - China Housing and Land Development achieved a gross profit of $7.6 million for the three months ended June 30, 2006, an increase of $2.0 million or 36.9%, compared to $5.5 million for the three months ended June 30, 2005. Gross margin increased to 41.3% for the three months ended June 30, 2006, from 39.3% for the three months ended June 30, 2005.
Operating Margins - Operating income before income tax in the second quarter for 2006 was $5.6 million, a $1.4 million increase or 33.2%, compared to $4.2 million for the three months ended June 30, 2005. The operating margin for the quarter ended June 30, 2006 was 30.4%.
Net Income - The Company achieved net income of $3.8 million, or $0.20 per fully diluted, for the three months ended June 30, 2006, an increase of $861,112 from $2.9 million or $0.18 per fully diluted share for the three months ended June 30, 2005 for the same period last year.
About China Housing and Land Development, Inc.
China Housing & Land Development, Inc. is a Nevada registered company that primarily engages in land acquisition, development, management and sale of commercial and residential real estate properties through its wholly-owned subsidiary in the People's Republic of China. Leveraging its strong relationships with local state authorities, China Housing & Land Development, Inc. has been able to utilize the supply of available land and develop commercial and residential properties enabling it to become one of the largest developers of residential and commercial property in Xi'an, China.
CHLN enjoys a preeminent position and brand name recognition in a region with favorable growth and demographic trends. Its three main lines of business are: Residential Housing Development, Commercial Property Development, and Property Management.
China Housing & Land Development, Inc. joins other successful public companies including Bodisen Biotech, In (AMEX: BBC) and China Natural Gas, Inc. (CHNG) that are all from the Xi'an region. The city of Xi'An, population over 8 million, has one of China's fastest growing urban population. CHLN has played a major role in making Xi'an a leader in China's real estate boom.
Safe Harbor Statement
This press release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of China Housing & Land Development, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
CHINA HOUSING & LAND DEVELOPMENT, INC.
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2006 AND 2005
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Earned revenues
Sale of properties $18,290,210 $13,908,795 $36,239,053 $28,977,763
Other 81,606 128,715 155,841 130,983
----------- ----------- ----------- -----------
Total earned
revenues 18,371,816 14,037,510 36,394,894 29,108,746
Costs and expenses
Costs of properties
sold 10,815,816 8,516,075 22,343,292 19,601,468
Other 128,326 13,417 246,806 14,779
Selling, general
and administrative 1,818,925 1,154,261 3,449,441 2,284,240
Interest:
Incurred 532,957 446,136 1,059,604 755,703
Less capitalized (505,542) (282,335) (1,000,676) (429,721)
----------- ----------- ----------- -----------
Total costs and
expenses 12,790,482 9,847,554 26,098,467 22,226,469
Income from
operations before
income tax 5,581,334 4,189,956 10,296,427 6,882,277
Income tax 1,841,192 1,310,926 3,397,821 2,271,151
----------- ----------- ----------- -----------
Net income $ 3,740,142 $ 2,879,030 $ 6,898,606 $ 4,611,126
Other comprehensive
income
Foreign currency
translation loss - - (168,521) -
----------- ----------- ----------- -----------
Comprehensive Income $ 3,740,142 $ 2,879,030 $ 6,730,085 $ 4,611,126
=========== =========== =========== ===========
Weighted average
shares outstanding
Basic 19,084,193 16,000,000 17,550,616 16,000,000
=========== =========== =========== ===========
Diluted 19,090,808 16,000,000 17,557,231 16,000,000
=========== =========== =========== ===========
Earnings per share
Basic $ 0.20 $ 0.18 $ 0.39 $ 0.29
=========== =========== =========== ===========
Diluted $ 0.20 $ 0.18 $ 0.39 $ 0.29
=========== =========== =========== ===========
CHINA HOUSING & LAND DEVELOPMENT, INC.
CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2006
June 30,
2006
-------------
(unaudited)
ASSETS
--------
ASSETS:
Cash & cash equivalents $ 1,362,147
Residential properties completed or under
construction 57,543,552
Property and equipment, net 4,732,751
Intangible assets 4,070
Receivables, deferred charge and other assets 3,989,654
Advance to suppliers 3,497,079
Deposit 1,416,082
-------------
TOTAL ASSETS $ 72,545,335
=============
LIABILITIES AND STOCKHOLDERS' EQUITY
--------------------------------------
LIABILITIES:
Accounts payable $ 11,388,846
Other payables 3,952,186
Accrued expenses 9,574,820
Unearned revenue 4,767,922
Mortgage loan primarily secured by real estate
held for development and sale 21,977,568
-------------
TOTAL LIABILITIES 51,661,342
STOCKHOLDERS' EQUITY:
Common stock, $0.001 per share;
authorized 100,000,000 shares;
issued and outstanding 20,330,769 20,331
Additional paid-in capital 6,377,285
Cumulative translation adjustment 74,262
Statutory reserve 2,093,523
Retained earnings 12,318,592
-------------
Total stockholders' equity 20,883,993
-------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 72,545,335
=============
