China Housing & Land Development Inc. develops residential and commercial properties in northwest China. The company today announced its unaudited financial results for the third quarter ended September 30, 2009, posting a 215 percent increase in revenues.
CHLN reported revenues at $23.8 million, an increase of 215.3% from $7.5 million as compared to the same period of 2008, up 5.3% from $22.6 million in the second quarter of 2009. The company attributes the increase mainly from its JunJing II phase one and two projects, which are under construction.
“We are pleased with our results for the third quarter as we continued to see stabilized sales trends and higher average selling prices, most notably with our two major projects – JunJing II phase one and two. With 91 percent of units sold and 82 percent of available GFA sold, we have pre-sold most of JunJing II phase one’s available residential units in just over one year. Pre-sales of JunJing II phase two commenced in the third quarter and thus far, the average selling price per sq. meter has exceeded phase one due to phase two’s enhanced design layout,” Pingji Lu, CHLN’s chairman stated in the press release.
Lu also said the company’s Puhua project is doing better than expected, strengthening the company’s efforts to keep up with increasing demand.
“Additionally, we are off to a good start with our Puhua phase one project with initial sales that have exceeded our original expectations. This is our first project within our Baqiao new development zone and we believe our success with this project can further enhance our reputation in Xi’an and the surrounding region. The overall real estate market sentiment in Xi’an has improved each quarter since the beginning of this year and we are particularly satisfied with our 12.9 percent increase in ASPs from last quarter. We remain focused on providing a steady pipeline of quality, state-of-the-art residential housing and commercial units to meet the rising demand in the marketplace.”
Reflecting improved market conditions, CHLN posted gross profit for the third quarter of 2009 at $7.4 million, up an astounding 403 percent from $1.5 million in the same period of 2008 and up 2.9 percent sequentially from $7.2 million in the second quarter of 2009.
Operating income rose to $4.0 million compared to an operating loss of ($3.2 million) in the third quarter of 2008 and $5.1 million in the second quarter of 2009.
Net income for the third quarter of 2009 increased 779 percent to $12.7 million, or $0.41 per basic share and $0.24 per diluted share, compared to $1.4 million, or $0.05 per basic share and $0.04 per diluted share, in the third quarter of 2008 and net loss of ($10.0 million), or ($0.32) per diluted share, in the second quarter of 2009. Adjusted net income excluding a $5.7 million non-cash gain associated with the revaluation of derivatives and warrants, was $7.2 million, or $0.06 per diluted share.
Lu noted the company’s current and upcoming projects that the company anticipates will enhance its expansion and growth efforts.
“In addition to our current projects under development, we have several new construction projects that can position us for solid growth in the years to come. As of the end of September, we have approximately 272 thousand sq. meters of unsold GFA from our existing projects, primarily JunJing II phase one, phase two and Puhua phase one. We also have an additional three projects under planning (JunJing III, Park Plaza and Golden Bay). Our balance sheet remains healthy and we will continue to selectively explore new projects both in Xi’an and potentially in other surrounding tier 2 cities in northwest China as the real estate market continues to move off its lows of the past year. We are encouraged by our opportunities as we build a sustainable platform for growth.”