NEWC - $8 - home builder in China: New China Homes, Ltd. Reports Financial Results for the Three Month Period Ended December 31, 1999
NEW YORK, May 17 /PRNewswire/ -- New China Homes, (Nasdaq: NEWC), a developer of large, planned residential communities in China's rapidly emerging private home building market, today reported financial results for the three month period ended December 31, 1999.
New China Homes, Ltd., reported revenues of $8.39 million for the three month period ended December 31, 1999. Net income was $ 843,119 or $ .068 per share.
Revenue recorded was derived from the sales of homes in California Gardens, a planned residential suburban community located on a 350 acre site in northwest Shanghai.
"Since development of California Gardens began in 1997, buyers of our homes have embraced the new lifestyle that we are offering through ownership in our communities. We are bringing comfortable, affordable, townhouses to the new emerging middle class population in China. The American dream of homeownership is now also a reality for the people of China. Our third quarter results are representative of the positive response of the Chinese people to our development efforts," said Michael O'Young president and chief executive officer.
Initial Public Offering
New China Homes LTD., completed an initial public offering of 2,300,000 common shares and 2,300,000 redeemable common share purchase warrants on March 15, 2000. New China Homes raised approximately $ 10,608,750 net of offering costs.
About New China Homes
New China Homes, LTD. recently announced its second major project in China called Millennium Towers. The new mixed-use project will be located approximately ten miles from the center of Beijing and substantially broadens the Company's scope into the commercial development arena.
New China Homes, LTD was founded in 1997 and is the developer of California Gardens, a planned residential suburban community located on a 350- acre site in northwest Shanghai. California Gardens has received critical acclaim for its innovative design, and has been frequently cited as an excellent example of the significant accomplishments in residential development under China's housing reform program. Among its many awards, the project has been cited for Finest Housing Design, Most Distinctive Housing Project and Most Recommended Housing Project by various professional and governmental agencies
The California Gardens community is projected to consist of approximately 6,000 homes when fully developed. A wide range of amenities including schools, sports facilities, and medical clinics have already been built for California Gardens. Over 2,000 homes have been sold or are under contract to be sold.
NEW CHINA HOMES, LTD.
STATEMENT OF OPERATIONS
UNAUDITED
Quarter ending
12/31/99
USD
Revenue
Home sales $ 8,384,307
Interest income 7,812
Other income 3,060
Total Revenue 8,395,179
Cost and Expenses
Cost of home sales 6,630,660
Selling, general
& administrative
expenses 375,452
Other expenses 10,158
Interest expense 87,544
Total cost
and expenses 7,103,814
Income before
income tax 1,291,364
Income taxes 429,351
Income before
minority interest 862,014
Minority interest 18,894
Net income 843,119
Income per share
(12,400,000 shares
outstanding
after IPO) .068
Except for the factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. Words and expressions reflecting optimism and satisfaction with current prospects, as well as words such as "believe," "intends," "expects," "plans," "anticipates," "estimates," and variations thereof, identify forward looking statements, but their absence does not mean that a statement is not forward looking. Such forward-looking statements are not guarantees that the development will succeed. Factors that may cause or contribute to such success include the Company's ability to obtain the requisite additional financing, interest and inflation rate fluctuations, development of the private residential and commercial real estate market in Beijing, governmental uncertainties, the ability of residential and commercial tenants to obtain financing, general competition and price pressures in the marketplace, and the Company's ability to control costs and expenses. Reference is also made to other factors set forth in the Company's filings with the Securities and Exchange Commission including the "Risk Factors," "Management's Discussion and Analysis" and other sections of the Company's 424(b) Prospectus. These forward-looking statements speak only as of the date of this release, and the Company undertakes no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.
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SOURCE: New China Homes, Ltd.
CONTACT: Alan J. Segan of Rubenstein Public Relations, 212-843-8064, for New China Homes, Ltd. |
