China Housing & Land Development, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - China Housing & Land Development, Inc.	v241156_8k.htm

China Housing & Land Development Inc.

Announces Third Quarter 2011 Financial Results

XI'AN, China Nov. 14, 2011 -- China Housing & Land Development, Inc. ("China Housing" or the "Company"; Nasdaq: CHLN) today announced its financial results for the quarter ended September 30, 2011 .

Highlights for Q3 2011:

·	Total revenue in the third quarter of 2011 increased 58.5% to $32.1 million from $20.3 million in the second quarter of 2011 and decreased 5.7% from $34.0 million in the third quarter of 2010.

·	Total gross floor area ("GFA") sales were 19,212 sq. meters during the third quarter of 2011, compared to 12,769 sq. meters in the second quarter of 2011 and 39,833 sq. meters in the third quarter of 2010.

·	Average residential selling price ("ASP") in the third quarter of 2011 was RMB 7,326 , compared with RMB 6,551 in the second quarter of 2011, and RMB 5,694 in the third quarter of 2010.

·	Gross profit increased 86.3% to $9.5 million from $5.1 million in the second quarter of 2011 and decreased 12.7% from $10.9 million in the third quarter of 2010. Third quarter 2011 gross margin was 29.7% compared to 25.3% in the second quarter of 2011 and 32.0% in the third quarter of 2010.

·	SG&A expenses as a percentage of total revenue decreased to 9.1%, compared to 16.4% in the second quarter of 2011 and increased from 8.4% in the third quarter of 2010.

·	Operating income increased 614.7% to $6.1 million from $0.9 million in the second quarter of 2011, and decreased from $7.0 million in the third quarter of 2010.

·	Net income attributable to the Company in the third quarter of 2011 was $4.4 million , or $0.13 per basic share and $0.12 per diluted share. Excluding the $1.8 thousand gain associated with the revaluation of derivatives and warrants, net income was $4.3 million.

Mr. Pingji Lu, China Housing's Chairman, commented, "We were pleased to see across-the-board improvement in our business as compared to last quarter as we enjoyed stronger levels of sales, gross margin, reduced operating expenses, and higher net income. Puhua Phase I and Puhua Phase II, which together comprised nearly 80% of our recognized revenue, both had strong average selling prices representing favorable increases over the prior quarter. These improvements helped increase our gross margin to 30% compared to the 25% from last quarter."

"As we evaluate our schedule of project activity going forward, we have an active lineup of projects expected to commence pre-sales activity over the next twelve months. While there are broader concerns about falling prices in the real estate market, particularly in Tier 1 cities, we currently remain comfortable with the market environment in Xi'an.

We have five projects in the pipeline that together represent a total of nearly 1.4 million sq. meters of unsold GFA. As more of these projects are introduced into the market, we have the opportunity to significantly increase our performance over 2011 levels."

Total revenue in the third quarter of 2011 increased 58.5% to $32.1 million from $20.3 million in the second quarter of 2011 and decreased 5.7% from $34.0 million in the third quarter of 2010. In the third quarter of 2011, most of the Company's revenue came from its Puhua Phase I and Phase II. Third quarter 2011 contract sales totaled US$21.9 million representing a total GFA of 19,212 square meters. Third quarter 2011 contract sales represented a 34.6% decrease compared to US$33.5 million in the third quarter of 2010. Total gross floor area ("GFA") sales were 19,212 sq. meters during the third quarter of 2011, compared to 12,769 sq. meters in the second quarter of 2011 and 39,833 sq. meters in the third quarter of 2010. The Company's average residential selling price ("ASP") in the third quarter of 2011 was RMB 7,326, compared with RMB 6,551 in the second quarter of 2011, and RMB 5,694 in the third quarter of 2010.

Gross profit for the three months ended September 30, 2011 was $9.5 million, representing an increase of 86.3% from $5.1 million in the second quarter of 2011 and 12.7% decrease from $10.9 million in the same period of 2010. The gross profit margin for the three months ended September 30, 2011 was 29.7%, which is below the 32.0% in the same period of 2010 and above the 25.3% in the second quarter of 2011.

SG&A expense was $2.9 million in the third quarter of 2011, compared to $3.3 million in the second quarter of 2011 and $2.9 million in the third quarter of 2010. SG&A expenses as a percentage of total revenue decreased to 9.1%, compared to 16.4% in the second quarter of 2011 but increased from 8.4% in the third quarter of 2010. The increase in SG&A as a percent of total revenue is primarily due to reduced revenue.

Operating income in the third quarter increased to $6.1 million, or 19.0% of total revenue, from $0.9 million, or 4.2% of total revenue, in the second quarter of 2011, and decreased from $7.0 million, or 20.6% of total revenue in the third quarter of 2010 primarily due to reduced revenues.

Net income attributable to China Housing in the third quarter of 2011 was $4.4 million or $0.13 per basic share and $0.12 per diluted share. Excluding the $1.8 thousand gain associated with the revaluation of derivatives and warrants, net income was $4.3 million. This performance compares to a net income of $(0.1) million in the second quarter of 2011, which excludes a $0.7 million non-cash gain associated with the revaluation of derivatives and warrants in the second quarter of 2011.

Sequential Quarterly Revenue Breakout Comparison

	Q 3 2011																	Q 2 2011
Project	Recognized Revenue			Contract Sales			GFA Sold			ASP			Unsold GFA		POC			Recognized Revenue		Contract Sales		GFA Sold		ASP
	($)			($)			(m 2)			(RMB)			(m 2)					($)		($)		(m 2)		(RMB)

Projects Under Construction
Puhua Phase One		12,852,050			5,806,231			4,829			7,712			18,099		74.6	%		7,703,630		4,952,039		4,291		7,500
Puhua Phase Two		12,588,905			14,859,498			13,534			7,045			193,142		4 9.6	%		4,975,580		5,686,955		6,717		5, 502
Projects Completed
JunJing II Phase One		1,118,044			1,118,044			624			4,091			2,913		100	%		193,138		193,138		125		9,992
JunJing II Phase Two		107,068			107,068			168			11,500			-		100	%		1,988,513		1,325,792		966		8,923
Tsining-24G		-			-			-			-			71		100	%		-		-		-		-
JunJing I		45,789			45,789			57			5,200			998		100	%		672,697		672,697		587		7,450
Additional Project		-			-						-			-		100	%		39,698		39,698		83		-

Other Income		5,387,137			-			-											4,678,936		-		-
Total		32,098,993			21,936,630			19,212			7,326		2 15,223		-				20,252,192		12,870,319		12,769		6,551
Q-o-Q Change		58.5	%		70.4	%		50.5 0	%		11.8	%

As of September 30, 2011, China Housing reported $74.1 million in unrestricted cash, compared to $72.7 million as of June 30, 2011 and $46.9 million as of December 31, 2010. Total debt outstanding as of September 30, 2011 was $172.4 million compared with $167.0 million on June 30, 2011 and $143.9 million on December 31, 2010. Net debt outstanding (total debt less cash) as of September 30, 2011 was $57.6 million compared with $54.2 million on June 30, 2011 and $62.3 million on December 31, 2010. The Company's net debt as a percentage of total capital (net debt plus shareholders' equity) was 46.4% on September 30, 2011 and 31.5% on June 30, 2011 and 38.0% on December 31, 2010. The increase in this figure was primarily due to additional bank loans and employee loans.

	Q 3 2011
Projects in Planning	Unsold GFA		First Pre-sales Scheduled
	(m2)
JunJing III		4 9,636		Q4 2011
Park Plaza		141,822		Q2 2012
Golden Bay		252,540		Q3 2012
Puhua Phase Three		130,000		Q2 2012
Puhua Phase Four		161,107		Q4 2013
Textile City		630,000		Q4 2012
Total projects in planning		1,365,105

2011 Outlook

Total contract sales in 2011 are expected to reach $120 to $130 million, a 12.2%-18.9% decrease compared to $148 million in 2010. Total recognized revenue in 2011 is expected to reach $110 to $120 million, compared to $140 million in 2010. Gross margin in 2011 is expected to reach 30%-35%. The Company is reporting contract sales estimates compared to revenue as they are not subject to percentage of completion alterations.

Conference Call Information

Management will host a conference call at 9:00 am ET on the date of this press release. Listeners may access the call by dialing #1-913-312-0684. To listen to the live webcast of the event, please go to http://www.viavid.net. Listeners may access the call replay, which will be available through November 21st, 2011, by dialing #1-858-384-5517; passcode: 5844807.

About China Housing & Land Development, Inc.

Based in Xi'an , the capital city of China's Shaanxi province, China Housing & Land Development, Inc., is a leading developer of residential and commercial properties in northwest China. China Housing has been engaged in land acquisition, development, and management, including the sales of residential and commercial real estate properties through its wholly-owned subsidiary in China, since 1992.

China Housing & Land Development is the first Chinese real estate development company traded on NASDAQ. The Company's news releases, project information, photographs, and more are available on the internet at www.chldinc.com.

Safe Harbor

This news release may contain forward-looking information about China Housing & Land Development, Inc. which is covered under the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward- looking terminology such as believe, expect, may, will, should, project, plan, seek, intend, or anticipate or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and China Housing & Land Development's future performance, operations, and products.

Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Actual performance results may vary significantly from expectations and projections. Further information regarding this and other risk factors are contained in China Housing's public filings with the U.S. Securities and Exchange Commission.

All information provided in this news release and in any attachments is as of the date of the release, and the companies do not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

China Housing contacts

Mr. Cangsang Huang

Chief Financial Officer

Tel: +86-29-8258-2648 in Xi'an

Email: chuang@chldinc.com

Ms. Jing Lu

Chief Operating Officer, Board Secretary, and Investor Relations Officer

+86 29.8258.2639 in Xi'an

jinglu@chldinc.com / English and Chinese

Mr. Shuai Luo

Investor Relations

+86 29.8258.2632 in Xi'an

Laurentluo@chldinc.com / English and Chinese

Mr. Bill Zima , ICR

+86 10 6583 7511

William.Zima@icrinc.com

China Housing Investor Relations Department

+1 646. 308.1285

(Financial Tables on Following Pages)

Item 1. Financial Statements

CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES

Interim Condensed Consolidated Balance Sheets

As of September 30, 2011 and December 31, 2010

(Unaudited)

	September 30,		December 31,
	2011		2010
ASSETS
Cash and cash equivalents	$	74,098,123	$	46,904,161
Cash - restricted		40,701,899		34,756,450
Accounts receivable, net of allowance for doubtful accounts of $272,121 and $266,493, respectively		13,910,436		9,297,505
Other receivables, prepaid expenses and deposits, net		3,930,649		7,653,925
Real estate held for development or sale		148,442,048		104,586,550
Property and equipment, net		31,587,601		29,735,836
Advance to suppliers		844,374		1,223,366
Deposits on land use rights		63,508,273		74,938,729
Intangible assets, net		53,488,970		51,846,410
Goodwill		1,869,798		1,806,905
Deferred financing costs		290,894		401,703
Total assets	$	432,673,065	$	363,151,540

LIABILITIES
Accounts payable	$	29,523,570	$	22,542,083
Advances from customers		69,581,165		52,229,189
Accrued expenses		2,307,947		2,507,638
Payable for acquisition of businesses		-		2,363,385
Income and other taxes payable		13,584,230		15,429,752
Other payables		6,039,241		5,663,222
Loans from employees		12,213,860		8,787,879
Bank loans		105,275,231		82,971,074
Deferred tax liability		14,712,954		14,344,712
Warrants liability		86,886		2,766,382
Fair value of embedded derivatives		504,789		2,027,726
Convertible debt		8,939,523		16,251,840
Mandatorily redeemable noncontrolling interests in Subsidiaries		45,890,236		33,535,969
Total liabilities		308,659,632		261,420,851

SHAREHOLDERS ' EQUITY
Common stock: $.001 par value, authorized 100,000,000 shares
issued and outstanding 33,083,354 and 31,884,969, respectively		35,079		32,685
Additional paid in capital		48,865,219		38,996,078
Treasury Stock		(167,357)		-
Common stock subscribed		-		59,606
Statutory reserves		6,654,715		6,654,715
Retained earnings		48,975,756		41,528,907
Accumulated other comprehensive income		19,650,021		14,458,698
Total China Housing & Land Development, Inc. shareholders' equity		124,013,433		101,730,689

Noncontrolling interests		-		-

Total shareholders' equity		124,013,433		101,730,689

Total liabilities and shareholders' equity	$	432,673,065	$	363,151,540

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

CHINA HOUSING & LAND DEVELOPMENT, INC. AND SUBSIDIARIES

Interim Condensed Consolidated Statements of Income

For The Three and Nine Months Ended September 30, 2011 and 2010

(Unaudited)

	3 Months		3 Months		9 Months		9 Months
	September 30, 2011		September 30, 2010		September 30, 2011		September 30, 2010
REVENUES
Sale of properties	$	26,711,856	$	31,455,921	$	61,941,929	$	99,067,368
Other income		5,387,137		2,592,853		12,966,952		5,148,115
Total revenues		32,098,993		34,048,774		74,908,811		104,215,483

COST OF SALES
Cost of sales of properties		18,829,374		22,568,245		46,618,588		74,821,470
Cost of other income		3,743,196		571,224		7,927,620		1,684,851
Total cost of sales		22,572,570		23,139,469		54,546,208		76,506,321

Gross margin		9,526,423		10,909,305		20,362,673		27,709,162

OPERATING EXPENSES
Selling, general, and administrative expenses		2,913,008		2,873,590		9,667,449		9,170,039
Stock based compensation		96,438		-		114,258		-
Other expenses		54,267		232,493		444,745		420,525
Interest expense		148,739		433,666		1,111,347		1,038,732
Accretion expense on convertible debt		217,391		363,624		761,195		1,038,732
Total operating expenses		3,429,843		3,903,373		12,098,994		12,017,462

NET INCOME FROM BUSINESS OPERATION		6,096,580		7,005,932		8,263,679		15,691,700

CHANGE IN FAIR VALUE OF DERIVATIVES
Change in fair value of embedded derivatives and warrants from modification		-		-		-		2,180,492
Change in fair value of embedded derivatives		(60,705)		(958,688)		(1,522,937)		(2,832,023)
Change in fair value of warrants		58,937		(405,821)		(1,055,337)		(3,203,085)
Total change in fair value of derivatives		(1,768)		(1,364,509)		(2,578,274)		(3,854,616)

Income before provision for income taxes and noncontrolling interest		6,098,348		8,370,441		10,841,953		19,546,316

Provision for income taxes		1,758,024		1,926,345		3,529,614		4,467,337
Recovery of deferred income taxes		(62,542)		(31,370)		(134,510)		(82,367)
NET INCOME		4,402,866		6,475,466		7,446,849		15,161,346

Charge to noncontrolling interest		-		-		-		(14,229,043)

NET INCOME ATTRIBUTABLE TO CHINA HOUSING & LAND DEVELOPMENT, INC.	$	4,402,866	$	6,475,466	$	7,446,849	$	932,303

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		35,071,915		33,082,573		34,683,383		32,911,414

Diluted		36,687,624		37,374,784		36,299,092		35,636,354

NET INCOME (LOSS) PER SHARE
Basic		0.13		0.20		0.22		0.03

Diluted		0.13		0.15		0.19		(0.05)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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