UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6–K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the Month of April 2019

Commission File Number 001-31583

 

NAM TAI PROPERTY INC.

(Translation of registrant’s name into English)

 

Namtai Industrial Estate

No. 2 Namtai Road, Gushu Community, Xixiang Township

Baoan District, Shenzhen City, Guangdong Province

People’s Republic of China

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F   ☒             Form 40-F   ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.    Yes   ☐     No   ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b); 82-.

 

 

 

 

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

 

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NAM TAI PROPERTY INC.

Reports Q1 2019 Results

SHENZHEN, PRC – April 29, 2019 – Nam Tai Property Inc. (“Nam Tai” or the “Company”) (NYSE Symbol: NTP) today announced its unaudited results for the first quarter ended March 31, 2019.

KEY HIGHLIGHTS

(In thousands of US dollars, except per share data, percentages and as otherwise stated)

 

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Notes:

 

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FINANCIAL RESULTS

Net Operation Income

Net operation income for the first quarter of 2019 was $0.3 million compared to nil in the first quarter of 2018. Operation income for the first quarter of 2019 mainly consisted of rental income of $0.5 million from the existing factory buildings located on the site of Phase II of Nam Tai Inno City and Wuxi.

Operating Loss

Operating loss for the first quarter of 2019 was $3.3 million compared to an operating loss of $9.1 million in the first quarter of 2018. Operating loss for the first quarter of 2019 mainly consisted of general and administrative expenses of 2.9 million and selling and marketing expenses of $0.7 million; offset in part by our net operation income of $0.3 million for the period. Operating loss for the first quarter of 2018 mainly consisted of general and administrative expenses of $9.1 million that mainly included accrual of compensation for loss of office of $3.7 million for the retirement of a senior officer, stock option compensation expenses of $1.4 million for certain officers and employees, salary and benefits of $1.8 million, depreciation of $1.0 million and audit, legal and professional fees of $0.6 million.

Net (Loss) Income

Net loss for the first quarter of 2019 was $1.8 million compared to net income of $2.6 million in the first quarter of 2018. Net loss for the first quarter of 2019 mainly consisted of operating loss of $3.3 million, offset in part by interest income of $0.8 million earned from time deposits and exchange gain of $0.6 million as a result of the appreciation of Renminbi against the US dollar in the first quarter of 2019. 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 and interest income of $1.5 million earned from time deposits, offset in part by operating loss of $9.1 million.

Cash, Cash Equivalents and Short-term Investments

Cash, cash equivalents and short-term investments decreased by $12.3 million in the first quarter of 2019 from $109.9 million as of December 31, 2018 to $97.6 million as of March 31, 2019. This decrease was mainly due to $11.9 million spent for Nam Tai Inno Park and Nam Tai Inno City – Phase I in the first quarter of 2019.

Real Estate Properties under Development, Net

Real estate properties under development increased by $14.9 million in the first quarter of 2019 from $171.6 million as of December 31, 2018 to $186.5 million as of March 31, 2019. This increase mainly consisted of $11.6 million for construction completed for both Nam Tai Inno Park and Nam Tai Inno City – Phase I, capitalized under percentage-of-completion method (before foreign currency translation adjustment).

Accounts Payable

Accounts payable increased by $1.4 million in the first quarter of 2019 from $87.2 million as of December 31, 2018 to $88.6 million as of March 31, 2019. This increase mainly consisted of accrued payable for construction completed for both Nam Tai Inno Park and Nam Tai Inno City – Phase I, accounted for under percentage-of-completion method.

Liquidity and Capital Resources

As of March 31, 2019, we had a total cash balance of $85.4 million and we have no material debt. According to our project development plan, project investment for the second quarter of 2019 is estimated to be $27.5 million. The total project investment for the year 2019 is estimated to be $167.0 million. We plan to seek additional borrowing facilities or alternative funding sources in 2019 for our various development projects.

Please see page 6 of the Company’s Condensed Consolidated Statements of Comprehensive Income for further details. The information contained herein 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 2019 on page 6, Condensed Consolidated Statements of Comprehensive Income.

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RECENT DEVELOPMENTS

The development of Nam Tai Inno Park in Guangming, Shenzhen, and Nam Tai Inno City in Gushu, Shenzhen, continues to proceed smoothly.

For Nam Tai Inno Park, our construction continued smoothly in the first quarter of 2019. After the opening of our industrial showroom at the end of December 2018, we held a number of industrial conferences including an Internet-of-Things industry conference on December 22, 2018, a discussion forum to commemorate the 20th anniversary of the Guangdong High-Tech Industry Chamber on March 15, 2019 and an academic & expert discussion forum on the development of Nam Tai Inno Park on March 20, 2019, as well as several technology park community building events. Our industrial showroom and the various forums and events it hosted were designed to attract potential tenants and promote our brand as an operator of technology parks. As a result of these conferences and events, we have established a number of contacts with potential tenants as well as the receipt of deposits for future leases for 156 dormitory units from potential tenants.

For Phase I of Nam Tai Inno City, we have obtained the early construction permit for the pile foundation in November 2018 and began pile driving and foundation laying in the first quarter of 2019. We aim to complete the foundation building process before the receipt of our construction permit for the main structure, which is expected to be obtained in the second half of 2019. We also plan to pay $49.8 million for additional land premium by mid 2019. Payment of the additional land premium is required by the land use right contract re-executed on October 25, 2018 between us and the urban planning, land and resources commission of Shenzhen municipality. Our payment of additional land premiums may be offset in part by the increased cost basis of our developed project when calculating land appreciation tax on sales of the subdivided units.

For Phase II of Nam Tai Inno City, as of March 31, 2019, we had leased out approximately 90% of the spaces in existing buildings to Medium-small or early stage companies. In line with our plan to maintain active operation of the facilities ahead of their redevelopment, we held several industrial events including an intellectual property law forum on March 17, 2019, where several policy makers and industry speakers discussed local policies and subsidies regarding the promotion of technology companies with valuable intellectual properties. We will continue to strengthen our brand as a technology park operator by providing our corporate tenants and Shenzhen’s technology community with these value-added services.

As for our Wuxi facility, we rented and delivered the facilities to a third party for further renovation and development in February 2019.

OPERATING RESULTS

Project Portfolio - As of March 31, 2019

 

 

Notes:

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Properties under Development

The table below sets forth certain information of our property projects or project phases under development as of March 31, 2019, comprising properties for which the land use right certificate and construction permits have been obtained, construction is in progress but before construction acceptance certificates have be obtained.

 

Properties for Future Development

The table below sets forth certain information of our property projects held for future development as of March 31, 2019, comprising properties for which we have obtained the land use right certificate or we have entered into land grant contracts although the land use right certificate is not yet obtained, or the relevant lands and resources authority has confirmed our successful bidding in a public auction.

 

 

Note:

(1) The estimated total GFA is based on our future planning and is subject to the relevant authority’s final approval.

Potential Risks in Our Business

There are no material changes to the risk factors previously disclosed in our Annual Report on Form 20-F and in our Current Reports filed on Form 6-K from time to time.

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.

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SCHEDULE FOR RELEASE OF QUARTERLY FINANCIAL RESULTS FOR 2019

To maintain the efficiency of delivering the Company’s quarterly financial results to the market, the Company’s management expects to release the quarterly financial results in accordance with the following schedule for 2019. Details of the expected quarterly release dates are as follows:

Announcements of Financial Results

 

ABOUT NAM TAI PROPERTY INC.

We are an owner, developer and operator of technology parks. 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.

CONTACTS

Investor Relations Department

Nam Tai Property Inc.

E-mail: ir@namtai.com.cn

 

Cameron Associates

Mr. Kevin McGrath

Tel.:212.245.4577

E-mail: kevin@cameronassoc.com

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NAM TAI PROPERTY INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE PERIODS ENDED MARCH 31, 2019 AND 2018

(In Thousands of US dollars except share and per share data)

 

 

 

Notes:

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NAM TAI PROPERTY INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS AT MARCH 31, 2019 AND DECEMBER 31, 2018

(In Thousands of US dollars) 

 

 

Notes:

 

 

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NAM TAI PROPERTY INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE PERIODS ENDED MARCH 31, 2019 AND 2018

(In Thousands of US dollars)

 

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NAM TAI PROPERTY INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED MARCH 31, 2019 AND 2018

(In Thousands of US dollars)

 

 

 

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