Nevada
|
|
20-1334845
|
(State
or other jurisdiction of
incorporation
or organization)
|
(IRS
Employer Identification
No.)
|
Large accelerated filer ¨
|
Accelerated filer ¨
|
Non-accelerated filer ¨
(Do not check if a smaller
reporting company)
|
Smaller reporting company
x
|
|
Page
Number
|
|||
PART
I
|
FINANCIAL
INFORMATION
|
|||
Item
1.
|
Financial
Statements
|
3
|
||
|
||||
Interim
Condensed Consolidated Balance Sheets as of June 30, 2010 (unaudited) and
December 31, 2009
|
3
|
|||
Interim
Condensed Consolidated Statements of Income for the three and six months
ended June 30, 2010 and 2009 (unaudited)
|
4
|
|||
Interim
Condensed Consolidated Statements of Comprehensive Income for the three
and six months ended June 30, 2010 and 2009 (unaudited)
|
5
|
|||
Interim
Condensed Consolidated Statements of Cash Flows for the six months ended
June 30, 2010 and 2009 (unaudited)
|
6
|
|||
Interim
Condensed Consolidated Statements of Shareholders’
Equity
|
7
|
|||
Notes
to Interim Condensed Consolidated Financial Statements
(unaudited)
|
8
|
|||
Item
2.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
19
|
||
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
40
|
||
Item
4.
|
Controls
and Procedures
|
41
|
||
PART
II.
|
OTHER
INFORMATION
|
|||
Item
1.
|
Legal
Proceedings
|
42
|
||
Item
1A.
|
Risk
Factors
|
42
|
||
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
42
|
||
Item
3.
|
Defaults
Upon Senior Securities
|
42
|
||
Item
4.
|
(Removed
and Reserved)
|
42
|
||
Item
5.
|
Other
Information
|
42
|
||
Item
6.
|
Exhibits
|
42
|
||
SIGNATURES
|
43
|
|||
EX-31.1
|
(Certifications
required under Section 302 of the Sarbanes-Oxley Act of
2002)
|
|||
EX-31.2
|
(Certifications
required under Section 302 of the Sarbanes-Oxley Act of
2002)
|
|||
EX-32.1
|
(Certifications
required under Section 906 of the Sarbanes-Oxley Act of
2002)
|
|||
EX-32.2
|
(Certifications
required under Section 906 of the Sarbanes-Oxley Act of
2002)
|
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
ASSETS
|
||||||||
Cash
and cash equivalents
|
$
|
68,316,347
|
$
|
36,863,216
|
||||
Cash
– restricted
|
779,672
|
701,017
|
||||||
Accounts
receivable, net of allowance for doubtful accounts of $392,550 and
$389,996, respectively
|
8,966,489
|
6,088,482
|
||||||
Other
receivables and prepaid expenses
|
4,029,933
|
2,484,221
|
||||||
Real
estate held for development or sale
|
109,755,284
|
103,003,529
|
||||||
Property
and equipment, net
|
15,283,212
|
15,307,478
|
||||||
Asset
held for sale
|
14,720,084
|
14,301,564
|
||||||
Advance
to suppliers
|
652,859
|
10,368,386
|
||||||
Deposits
on land use rights
|
53,114,051
|
28,084,346
|
||||||
Intangible
assets, net
|
41,625,895
|
41,355,134
|
||||||
Goodwill
|
821,815
|
816,469
|
||||||
Deferred
financing costs
|
475,628
|
411,457
|
||||||
Total
assets
|
$
|
318,541,269
|
$
|
259,785,299
|
||||
LIABILITIES
|
||||||||
Accounts
payable
|
$
|
16,735,426
|
$
|
20,706,263
|
||||
Advances
from customers
|
40,796,137
|
21,301,876
|
||||||
Accrued
expenses
|
2,506,148
|
5,587,837
|
||||||
Payable
for acquisition of businesses
|
6,663,588
|
5,916,354
|
||||||
Income
and other taxes payable
|
11,463,416
|
8,194,659
|
||||||
Other
payables
|
4,771,743
|
4,524,288
|
||||||
Loans
from employees
|
4,853,646
|
2,864,824
|
||||||
Loans
payable
|
52,348,301
|
36,185,705
|
||||||
Deferred
tax liability
|
13,723,678
|
11,505,181
|
||||||
Warrants
liability
|
2,537,867
|
5,074,191
|
||||||
Fair
value of embedded derivatives
|
4,037,264
|
3,991,047
|
||||||
Convertible
debt
|
15,510,095
|
14,834,987
|
||||||
Mandatorily
redeemable noncontrolling interests in Subsidiaries
|
51,570,844
|
-
|
||||||
Total
liabilities
|
227,518,153
|
140,687,212
|
||||||
SHAREHOLDERS'
EQUITY
|
||||||||
Common
stock: $.001 par value, authorized 100,000,000 shares
|
||||||||
issued
and outstanding 33,065,386 and 31,884,969, respectively
|
33,065
|
31,885
|
||||||
Additional
paid in capital
|
40,745,457
|
35,461,706
|
||||||
Common
stock subscribed
|
-
|
252,118
|
||||||
Statutory
reserves
|
4,922,248
|
4,922,248
|
||||||
Retained
earnings
|
34,352,016
|
39,895,179
|
||||||
Accumulated
other comprehensive income
|
10,970,330
|
10,163,483
|
||||||
Total
China Housing & Land Development, Inc. shareholders’
equity
|
91,023,116
|
90,726,619
|
||||||
Noncontrolling
interests
|
-
|
28,371,468
|
||||||
Total
shareholders' equity
|
91,023,116
|
119,098,087
|
||||||
Total
liabilities and shareholders' equity
|
$
|
318,541,269
|
$
|
259,785,299
|
3
Months
|
3
Months
|
6
Months
|
6
Months
|
|||||||||||||
June 30,
2010
|
June 30,
2009
|
June 30,
2010
|
June 30,
2009
|
|||||||||||||
REVENUES
|
||||||||||||||||
Sale
of properties
|
$ | 35,220,386 | $ | 21,180,940 | $ | 67,611,447 | $ | 34,106,809 | ||||||||
Other
income
|
1,373,409 | 1,534,893 | 2,555,262 | 2,536,951 | ||||||||||||
Total
revenues
|
36,593,795 | 22,715,833 | 70,166,709 | 36,643,760 | ||||||||||||
COST
OF SALES
|
||||||||||||||||
Cost
of sales of properties
|
25,691,338 | 15,016,997 | 52,253,225 | 24,138,943 | ||||||||||||
Cost
of other income
|
576,854 | 491,387 | 1,113,627 | 950,900 | ||||||||||||
Total
cost of sales
|
26,268,192 | 15,508,384 | 53,366,852 | 25,089,843 | ||||||||||||
Gross
margin
|
10,325,603 | 7,207,449 | 16,799,857 | 11,553,917 | ||||||||||||
OPERATING
EXPENSES
|
||||||||||||||||
Selling,
general, and administrative expenses
|
3,758,565 | 1,942,946 | 6,296,449 | 3,351,770 | ||||||||||||
Security
registration expenses
|
- | 606,742 | - | 1,206,742 | ||||||||||||
Other
expenses
|
65,381 | 150,327 | 188,032 | 190,123 | ||||||||||||
Interest
expense
|
447,475 | 446,899 | 954,500 | 784,977 | ||||||||||||
Accretion
expense on convertible debt
|
345,926 | 296,164 | 675,108 | 577,986 | ||||||||||||
Total
operating expenses
|
4,617,347 | 3,443,078 | 8,114,089 | 6,111,598 | ||||||||||||
NET
INCOME FROM BUSINESS OPERATION
|
5,708,256 | 3,764,371 | 8,685,768 | 5,442,319 | ||||||||||||
CHANGE
IN FAIR VALUE OF DERIVATIVES
|
||||||||||||||||
Loss
on extinguishment of debt
|
2,180,492 | - | 2,180,492 | - | ||||||||||||
Change
in fair value of embedded derivatives
|
(1,307,129 | ) | 5,836,616 | (1,873,335 | ) | 5,712,578 | ||||||||||
Change
in fair value of warrants
|
(2,242,663 | ) | 7,222,727 | (2,797,264 | ) | 7,055,488 | ||||||||||
Total
change in fair value of derivatives
|
(1,369,300 | ) | 13,059,343 | (2,490,107 | ) | 12,768,066 | ||||||||||
Income
(loss) before provision for income taxes and noncontrolling
interest
|
7,077,556 | (9,294,972 | ) | 11,175,875 | (7,325,747 | ) | ||||||||||
Provision
for income taxes
|
1,531,461 | 1,347,914 | 2,540,992 | 2,061,555 | ||||||||||||
Recovery
of deferred income taxes
|
(21,851 | ) | - | (50,997 | ) | - | ||||||||||
Net
income (loss)
|
5,567,946 | (10,642,886 | ) | 8,685,880 | (9,387,302 | ) | ||||||||||
Charge
to noncontrolling interest
|
- | 145,899 | (14,229,043 | ) | 193,034 | |||||||||||
NET
INCOME (LOSS) ATTRIBUTABLE TO CHINA HOUSING & LAND
DEVELOPMENT, INC.
|
$ | 5,567,946 | $ | (10,496,987 | ) | $ | (5,543,163 | ) | $ | (9,194,268 | ) | |||||
WEIGHTED
AVERAGE SHARES OUTSTANDING
|
||||||||||||||||
Basic
|
33,065,386 | 30,932,745 | 32,824,416 | 30,913,359 | ||||||||||||
Diluted
|
35,302,785 | 30,938,070 | 34,752,732 | 30,916,036 | ||||||||||||
NET
INCOME (LOSS) PER SHARE
|
||||||||||||||||
Basic
|
$ | 0.17 | $ | (0.34 | ) | $ | (0.17 | ) | $ | (0.30 | ) | |||||
Diluted
|
$ | 0.13 | $ | (0.34 | ) | $ | (0.20 | ) | $ | (0.30 | ) |
3
Months
|
3
Months
|
6
Months
|
6
Months
|
|||||||||||||
June
30,
|
June
30,
|
June
30,
|
June
30,
|
|||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
NET
INCOME (LOSS)
|
$ | 5,567,946 | $ | (10,642,886 | ) | $ | 8,685,880 | $ | (9,387,302 | ) | ||||||
OTHER
COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||
Gain
(loss) in foreign exchange
|
834,531 | 51,713 | 806,847 | (311,420 | ) | |||||||||||
COMPREHENSIVE
INCOME (LOSS)
|
6,402,477 | (10,591,173 | ) | 9,492,727 | (9,698,722 | ) | ||||||||||
Charge
to noncontrolling interest
|
- | 145,899 | (14,229,043 | ) | 193,034 | |||||||||||
Comprehensive
income (loss) attributable to China Housing & Land Development,
Inc.
|
$ | 6,402,477 | $ | (10,445,274 | ) | $ | (4,736,316 | ) | $ | (9,505,688 | ) |
June
30,
|
June
30,
|
|||||||
2010
|
2009
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income (loss)
|
$ | 8,685,880 | $ | (9,387,302 | ) | |||
Adjustments
to reconcile net income to cash provided by (used in) operating
activities:
|
||||||||
Bad
debt recovery
|
- | (275,265 | ) | |||||
Depreciation
|
593,498 | 315,026 | ||||||
Gain
on disposal of property and equipment
|
(23,292 | ) | (16,200 | ) | ||||
Amortization
of deferred financing costs
|
77,391 | 77,391 | ||||||
Recovery
of future income taxes
|
(50,997 | ) | - | |||||
Loss
on extinguishment of debt
|
2,180,492 | - | ||||||
Change
in fair value of embedded derivatives
|
(1,873,335 | ) | 5,712,578 | |||||
Change
in fair value of warrants
|
(2,797,264 | ) | 7,055,488 | |||||
Accretion
expense on convertible debt
|
675,108 | 577,986 | ||||||
Non-cash
proceeds from sales
|
- | (23,804 | ) | |||||
(Increase)
decrease in assets:
|
||||||||
Accounts
receivable
|
(2,554,513 | ) | (2,689,972 | ) | ||||
Other
receivable and prepaid expense
|
(1,529,450 | ) | (838,539 | ) | ||||
Real
estate held for development or sale
|
4,205,242 | (33,922,050 | ) | |||||
Advances
to suppliers
|
9,424,848 | 13,738 | ||||||
(Deposit)
refund on land use rights
|
(24,680,429 | ) | 13,363,368 | |||||
Deferred
financing costs
|
(140,684 | ) | - | |||||
Increase
(decrease) in liabilities:
|
||||||||
Accounts
payable
|
(4,134,870 | ) | 3,205,445 | |||||
Advances
from customers
|
19,230,257 | 922,457 | ||||||
Accrued
expense
|
5,615,440 | 790,270 | ||||||
Other
payable
|
207,410 | (3,191,392 | ) | |||||
Income
and other taxes payable
|
3,204,854 | 2,031,450 | ||||||
Accrued
security registration expenses
|
- | 1,206,742 | ||||||
Net
cash provided by (used in) operating activities
|
16,315,586 | (15,072,585 | ) | |||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Change
in restricted cash
|
(73,606 | ) | 52,887 | |||||
Purchase
of property and equipment
|
(970,673 | ) | (478,557 | ) | ||||
Notes
receivable collected
|
- | 149,549 | ||||||
Cash
acquired from acquisition of business
|
2,179 | 519,309 | ||||||
Proceed
from sale of property and equipment
|
- | 194,006 | ||||||
Net
cash (used in) provided by investing activities
|
(1,042,100 | ) | 437,194 | |||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Investment
and advances from noncontrolling interest
|
- | 267,605 | ||||||
Loans
from bank
|
31,491,680 | - | ||||||
Payments
on loans payable
|
(15,678,807 | ) | (11,127,389 | ) | ||||
Loans
from or repayment to employees, net
|
1,956,931 | 670,493 | ||||||
Repayment
of payables for acquisition of businesses
|
(2,022,431 | ) | (2,533,242 | ) | ||||
Proceeds
from exercise of warrants
|
- | 320,815 | ||||||
Net
cash provided by (used in) financing activities
|
15,747,373 | (12,401,718 | ) | |||||
INCREASE/(DECREASE)
IN CASH AND CASH EQUIVALENTS
|
31,020,859 | (27,037,109 | ) | |||||
Effects
on foreign currency exchange
|
432,272 | (254,631 | ) | |||||
CASH
AND CASH EQUIVALENTS, beginning of period
|
36,863,216 | 37,425,340 | ||||||
CASH
AND CASH EQUIVALENTS, end of period
|
$ | 68,316,347 | $ | 10,133,600 |
Common
Stock
|
Common
stock
|
Paid
in
|
Statutory
|
Retained
|
Comprehensive
|
Noncontrolling
|
||||||||||||||||||||||||||||||
|
Shares
|
Par
Value
|
subscribed
|
capital
|
reserves
|
earnings
|
income
|
Interest
|
Totals
|
|||||||||||||||||||||||||||
BALANCE,
December 31, 2009
|
31,884,969 | $ | 31,885 | $ | 252,118 | $ | 35,461,706 | $ | 4,922,248 | $ | 39,895,179 | $ | 10,163,483 | $ | 28,371,468 | $ | 119,098,087 | |||||||||||||||||||
Common
stock issued on exercise of stock options
|
62,014 | 62 | (252,118 | ) | 252,056 | - | - | - | - | - | ||||||||||||||||||||||||||
Common
stock issued for acquisition of Suodi
|
1,118,403 | 1,118 | - | 5,031,695 | - | - | - | - | 5,032,813 | |||||||||||||||||||||||||||
Non-controlling
interest reclassified to mandatorily redeemable preferred
stock
|
- | - | - | - | - | - | - | (28,371,468 | ) | (28,371,468 | ) | |||||||||||||||||||||||||
Net
income
|
- | - | - | 3,117,934 | 3,117,934 | |||||||||||||||||||||||||||||||
Charge
to noncontolling interest
|
- | - | - | - | - | (14,229,043 | ) | - | - | (14,229,043 | ) | |||||||||||||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | - | - | - | (27,684 | ) | - | (27,684 | ) | |||||||||||||||||||||||||
BALANCE,
March 31, 2010
|
33,065,386 | 33,065 | - | 40,745,457 | 4,922,248 | 28,784,070 | 10,135,799 | - | 84,620,639 | |||||||||||||||||||||||||||
Net
income
|
- | - | - | - | - | 5,567,946 | - | - | 5,567,946 | |||||||||||||||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | - | - | - | 834,531 | - | 834,531 | |||||||||||||||||||||||||||
BALANCE,
June 30, 2010
|
33,065,386 | $ | 33,065 | $ | - | $ | 40,745,457 | $ | 4,922,248 | $ | 34,352,016 | $ | 10,970,330 | $ | - | $ | 91,023,116 |
June
30,
2010
|
December
31,
2009
|
June
30,
2009
|
||||||||||
Period end
RMB/U.S. Dollar exchange rate
|
6.7815
|
6.8259
|
6.8302
|
|||||||||
Average
RMB/U.S. Dollar exchange rate
|
6.8238
|
6.8307
|
6.8293
|
Purchase
Price
|
$
|
7,954,478
|
||
Value
assigned to assets and liabilities:
|
||||
Assets:
|
||||
Cash
|
2,176
|
|||
Land
use right
|
10,232,932
|
|||
Liabilities:
|
||||
Due
to original shareholders
|
103,083
|
|||
Deferred
tax liability related to the land use right acquired
|
2,177,547
|
|||
Total
net assets
|
$
|
7,954,478
|
Noncontrolling
Interest
|
||||
Noncontrolling
interests at December 31, 2009
|
$
|
28,371,468
|
||
Reclassify
to mandatorily redeemable noncontrolling interests in
subsidiaries
|
(28,371,468
|
) | ||
Noncontrolling
interests at June 30, 2010
|
$
|
-
|
Mandatory
Redeemable
Noncontrolling
Interests
in
Subsidiaries
|
||||
Mandatory
redeemable noncontrolling interests in subsidiaries at December 31,
2009
|
$
|
-
|
||
Initial
fair value of mandatorily redeemable noncontrolling interests in
subsidiaries
|
42,600,511
|
|||
Capitalized
accretion cost on mandatorily redeemable noncontrolling interests in
subsidiaries
|
8,708,484
|
|||
Difference
in foreign exchange translation
|
261,849
|
|||
Mandatorily
redeemable noncontrolling interests in subsidiaries at June 30,
2010
|
$
|
51,570,844
|
Date
|
||||
December
31, 2010
|
$
|
29,492,000
|
||
December
31, 2011
|
29,492,000
|
|||
December
25, 2012
|
25,952,960
|
|||
Total
|
$
|
84,936,960
|
(1)
|
an
issuance of 1,118,403 of the Company’s common stock which is valued at
$5,032,813 in connection of the acquisition of Suodi (See Note
2)
|
(2)
|
In
accordance with the Amended and Restated Shareholders’ Agreement with
Prax, the Company reclassified Prax’s interest in the consolidated
subsidiaries from noncontrolling interest in equity to liability and
recorded $14,229,043, the difference between the carrying value of the
original noncontrolling interest and the fair value of redemption amount,
as a charge to the noncontrolling
interest.
|
June
30,
2010
|
December
31,
2009
|
|||||||
Other
receivable
|
$
|
2,057,659
|
$
|
1,222,028
|
||||
Allowance
for bad debts
|
(207,897
|
) |
(206,545
|
) | ||||
Prepaid
expenses
|
214,748
|
261,836
|
||||||
Prepaid
other tax expenses
|
1,965,423
|
1,206,902
|
||||||
Other
receivables and prepaid expenses
|
$
|
4,029,933
|
$
|
2,484,221
|
June
30,
2010
|
December
31,
2009
|
|||||||
Finished
projects
|
$ | 12,216,090 | $ | 20,417,820 | ||||
Construction
in progress
|
97,539,194 | 82,585,709 | ||||||
Total
real estate held for development or sale
|
$ | 109,755,284 | $ | 103,003,529 |
June
30,
2010
|
December
31,
2009
|
|||||||
Buildings
and improvements
|
$
|
6,271,062
|
$
|
5,286,461
|
||||
Income
producing properties and improvements
|
10,549,686
|
11,095,868
|
||||||
Electronic
equipment
|
391,778
|
330,218
|
||||||
Vehicles
|
440,785
|
425,099
|
||||||
Office
furniture
|
192,528
|
182,309
|
||||||
Computer
software
|
177,144
|
174,995
|
||||||
Totals
|
18,022,983
|
17,494,950
|
||||||
Accumulated
depreciation
|
(2,739,771
|
) |
(2,187,472
|
) | ||||
Property
and equipment, net
|
$
|
15,283,212
|
$
|
15,307,478
|
June
30,
2010
|
December
31,
2009
|
|||||||
Intangibles
acquired
|
$
|
47,620,518
|
$
|
47,310,765
|
||||
Accumulated
amortization
|
(5,994,623
|
) |
(5,955,631
|
) | ||||
Intangible
assets, net
|
$
|
41,625,895
|
$
|
41,355,134
|
June
30,
2010
|
December
31,
2009
|
|||||||
Accrued
expenses
|
$
|
1,698,881
|
$
|
2,252,903
|
||||
Accrued
interest
|
807,267
|
3,334,934
|
||||||
Total
|
$
|
2,506,148
|
$
|
5,587,837
|
June
30,
2010
|
December
31,
2009
|
|||||||
Payable
to original shareholders of New Land (i)
|
$
|
5,823,739
|
$
|
5,916,354
|
||||
Payable
to original shareholders of Suodi (ii)
|
839,849
|
-
|
||||||
Total
|
$
|
6,663,588
|
$
|
5,916,354
|
(i)
|
The
Company has unsecured loans payable to previous shareholders of New Land
totaling to $4,761,133 at June 30, 2010 (December 31, 2009 - $4,860,661).
The remaining balance pertains to additional loans made by these
shareholders which was also due in December 2009. The loans
bear interest at 10% per annum. Until such time as final payments are
arranged, the loans remain outstanding and the Company continues to
pay interest at 10% per annum.
|
(ii)
|
On
January 15, 2010, the Company completed the acquisition of Suodi (see
Note 2). The payable to original shareholders of Suodi represents the
remaining balance under the acquisition agreement of $737,300 (RMB 5
million), and (2) $102,549 (RMB 695,439) due to original shareholders of
Suodi assumed by the Company when acquiring
Suodi.
|
June 30,
2010
|
December 31,
2009
|
|||||||
Xi'an
Rural Credit Union Zao Yuan Rd. Branch
|
||||||||
Due
July 3, 2010, annual interest is at 8.496 percent, secured by the
Company's Jun Jing Yuan I, Han Yuan and Xin Xing Tower
projects
|
$ | 2,949,200 | $ | 2,930,017 | ||||
China
Construction Bank, Xi'an Branch
|
||||||||
Due
August 27, 2011, annual interest is at a floating interest rate based on
110% of the People’s Bank of China prime rate, secured by the Company's
Jun Jing Yuan II project
|
- | 3,223,018 | ||||||
Due
September 8, 2012, annual interest is at a floating interest rate based on
110% of the People’s Bank of China prime rate, secured by the Company's
Jun Jing Yuan II project
|
- | 12,452,571 | ||||||
Xinhua
Trust Investments Ltd.
|
||||||||
Due
February 10, 2012, annual interest is at 10 percent, secured by the
24G project
|
22,119,000 | - | ||||||
Commercial
Bank Weilai Branch
|
||||||||
Due
August 29, 2010, annual interest is at 10.21 percent, secured by the
Company's Jun Jing Yuan I and XinXing Tower projects
|
5,161,100 | 5,127,528 | ||||||
Bank
of Beijing, Xi’an Branch
|
||||||||
Due
December 10, 2012, annual interest is at the bank’s prime rate, secured by
the PuHua project with a minimum repayment of $7.3 million required in
2011.
|
22,119,001 | 12,452,571 | ||||||
Total
|
$ | 52,348,301 | $ | 36,185,705 |
Fair
Value Measurements Using
|
Assets/Liabilities
|
|||||||||||||||
Level
1
|
Level
2
|
Level3
|
At
Fair Value
|
|||||||||||||
Warrants
liability
|
-
|
$
|
2,537,867
|
-
|
$
|
2,537,867
|
||||||||||
Fair
value of embedded derivatives
|
-
|
$
|
4,037,264
|
-
|
$
|
4,037,264
|
||||||||||
Total
|
-
|
$
|
6,575,131
|
-
|
$
|
6,575,131
|
Fair
Value Measurements Using
|
Assets/Liabilities
|
|||||||||||||||
Level
1
|
Level
2
|
Level3
|
At
Fair Value
|
|||||||||||||
Cash
equivalents
|
$
|
4,395,025
|
$
|
-
|
$
|
-
|
$
|
4,395,025
|
||||||||
Warrants
liability
|
-
|
5,074,191
|
-
|
5,074,191
|
||||||||||||
Fair
value of embedded derivatives
|
-
|
3,991,047
|
-
|
3,991,047
|
||||||||||||
Total
|
$
|
4,395,025
|
$
|
9,065,238
|
-
|
$
|
13,460,263
|
Immediately before the
Amendment date of
June 10, 2010
|
Immediately after the
Amendment date of
June 10, 2010
|
Loss on
extinguishment of
debt recognized
|
||||||||||
Fair
value of warrants liability
|
$ | 1,370,585 | $ | 1,631,525 | $ | 260,940 | ||||||
Fair
value of embedded derivatives
|
1,570,542 | 3,490,094 | 1,919,552 | |||||||||
Total
|
$ | 2,941,127 | $ | 5,121,619 | $ | 2,180,492 |
Expected
life
|
2.64 - 2.72
years
|
|||
Expected
volatility
|
105 | % | ||
Risk-free
interest rate
|
1.10 - 1.14 | % | ||
Dividend
yield
|
0 | % |
June 30, 2010
|
December 31, 2009
|
|||||||
Expected
life
|
2.58 - 2.67
years
|
3.08
– 3.16 years
|
||||||
Expected
volatility
|
105 | % | 105 | % | ||||
Risk-free
interest rate
|
0.84 - 0.87 | % | 1.74% - 1.78 | % | ||||
Dividend
yield
|
0 | % | 0 | % |
|
1.
|
As
at December 31, 2009, the Company has accrued $252,118 of stock-based
compensation to the former CFO and directors as common stock subscribed. A
total of 62,014 common shares were issued on January 19,
2010.
|
|
2.
|
The
company issued 1,118,403 common shares for the acquisition of Suodi (See
Note 2). The shares were valued at $5.03 million (RMB 34.36
million) based on a price per share of $4.5, the closing price of the
Company’s common stock on Nasdaq on January 15, 2010, the day the
acquisition of Suodi closed.
|
June 30, 2010
|
December 31, 2009
|
|||||||
Expected
life
|
1.86
years
|
2.36
years
|
||||||
Expected
volatility
|
105 | % | 105 | % | ||||
Risk-free
interest rate
|
0.57 | % | 1.33 | % | ||||
Dividend
yield
|
0 | % | 0 | % |
Number of
Warrants
Outstanding
|
Weighted Average
Exercise
Price
|
|||||||
December
31, 2009
|
3,976,883
|
$
|
5.07
|
|||||
Exercised
|
-
|
-
|
||||||
Expired
|
-
|
-
|
||||||
June
30, 2010
|
3,976,883
|
$
|
5.07
|
Outstanding Warrants
|
||||||
Exercise
Price
|
Number
|
Average Remaining
Contractual Life
|
||||
$ |
4.50
|
2,539,416
|
1.86
years
|
|||
$ |
6.07
|
1,437,467
|
2.67
years
|
|||
$ |
5.07
|
3,976,883
|
2.15
years
|
For
the three months ended
|
For
the six months ended
|
|||||||||||||||
June
30,
|
June
30,
|
June
30,
|
June
30,
|
|||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Interest
income
|
$ | 61,547 | $ | 37,082 | $ | 178,093 | $ | 40,879 | ||||||||
Government
reimbursement of infrastructure cost
|
- | 637,024 | - | 953,290 | ||||||||||||
Rental
income
|
530,038 | 120,948 | 840,938 | 205,604 | ||||||||||||
Income
from property management services
|
722,034 | 588,558 | 1,363,310 | 1,168,952 | ||||||||||||
Gain
on disposal of fixed assets and inventory
|
23,292 | - | 23,292 | 16,945 | ||||||||||||
Miscellaneous
income
|
36,498 | 151,281 | 149,629 | 151,281 | ||||||||||||
$ | 1,373,409 | $ | 1,534,893 | $ | 2,555,262 | $ | 2,536,951 |
3
months
|
3
months
|
6
months
|
6
months
|
|||||||||||||
June
30, 2010
|
June
30, 2009
|
June
30, 2010
|
June
30, 2009
|
|||||||||||||
Numerator
|
||||||||||||||||
Net
income (loss) attributable to China Housing &
Land Development, Inc. – basic
|
$ | 5,567,946 | $ | (10,496,987 | ) | $ | (5,543,163 | ) | $ | (9,194,268 | ) | |||||
Effect
of dilutive securities
|
||||||||||||||||
Warrants
|
35,937 | - | 35,937 | - | ||||||||||||
Convertible
debt
|
(1,107,556 | ) | - | (1,525,630 | ) | - | ||||||||||
Income
(loss) attributable to China Housing & Land Development, Inc. –
diluted
|
$ | 4,496,327 | $ | (10,496,987 | ) | $ | (7,032,856 | ) | $ | (9,194,268 | ) | |||||
Denominator
|
||||||||||||||||
Weighted
average shares outstanding – basic
|
33,065,386 | 30,932,745 | 32,824,416 | 30,913,359 | ||||||||||||
Effect
of dilutive securities
|
||||||||||||||||
Warrants
|
165,862 | 5,325 | 83,389 | 2,677 | ||||||||||||
Convertible
debt
|
2,071,537 | - | 1,844,927 | - | ||||||||||||
Weighted
average shares outstanding – diluted
|
35,302,785 | 30,938,070 | 34,752,732 | 30,916,036 | ||||||||||||
Earnings
per share
|
||||||||||||||||
Basic
earnings (loss) per share
|
$ | 0.17 | $ | (0.34 | ) | $ | (0.17 | ) | $ | (0.30 | ) | |||||
Diluted
earnings (loss) per share
|
$ | 0.13 | $ | (0.34 | ) | $ | (0.20 | ) | $ | (0.30 | ) |
Payment
due by period
|
||||||||||||||||||||||||||||
Commitments
and
Contingencies
|
Total
|
Less
than
1
year
|
1-2
years
|
2-3
years
|
3-4
years
|
4-5
years
|
After
5
years
|
|||||||||||||||||||||
Operating
lease
|
$ | 840,160 | $ | 178,858 | $ | 121,685 | $ | 77,088 | $ | 77,088 | $ | 77,088 | $ | 308,353 | ||||||||||||||
Consulting
contract
|
276,488 | 276,488 | - | - | - | - | - | |||||||||||||||||||||
Land
use right
|
3,539,040 | 928,998 | 2,610,042 | |||||||||||||||||||||||||
Total
|
$ | 4,655,688 | $ | 1,384,344 | $ | 2,731,727 | $ | 77,088 | $ | 77,088 | $ | 77,088 | $ | 308,353 |
June
30,
2010
|
December
31,
2009
|
|||||||
Fair
value of warrants liability
|
$
|
2,537,867
|
$
|
5,074,191
|
||||
Fair
value of embedded derivatives
|
$
|
4,037,264
|
$
|
3,991,047
|
Investor
Warrants:
|
6/30/2010
|
12/31/2009
|
||||||
Strike
price
|
6.07
|
6.07
|
||||||
Market
price
|
2.32
|
4.13
|
||||||
Valuation
date
|
6/30/2010
|
12/31/2009
|
||||||
Expiry
date
|
2/28/2013
|
2/28/2013
|
||||||
Volatility
|
105.00
|
%
|
105.00
|
%
|
||||
Risk
free rate
|
0.87
|
%
|
1.78
|
%
|
||||
Option
value
|
0.96604
|
2.43971
|
||||||
#
of warrants
|
1,437,467
|
1,437,467
|
||||||
Value
|
1,667,462
|
3,507,000
|
Investor Warrants: 5-7-2007
|
6/30/2010
|
12/31/2009
|
||||||
Strike
price
|
4.50
|
4.50
|
||||||
Market
price
|
2.32
|
4.13
|
||||||
Valuation
date
|
6/30/2010
|
12/31/2009
|
||||||
Expiry
date
|
5/9/2012
|
5/9/2012
|
||||||
Vlolatility
|
105.00
|
%
|
105.00
|
%
|
||||
Risk
free rate
|
0.57
|
%
|
1.33
|
%
|
||||
Option
value
|
0.86160
|
0.61711
|
||||||
#
of warrants
|
2,539,416
|
2,539,416
|
||||||
Value
|
870,306
|
1,567,092
|
Conversion
Option Valuation:
|
6/30/2010
|
12/31/2009
|
||||||
Strike
price
|
5.57
|
5.57
|
||||||
Market
price
|
2.32
|
4.13
|
||||||
Valuation
date
|
6/30/2010
|
12/31/2009
|
||||||
Expiry
date
|
1/28/2013
|
1/28/2013
|
||||||
Volatility
|
105.00
|
%
|
105.00
|
%
|
||||
Risk
free rate
|
0.84
|
%
|
1.74
|
%
|
||||
Option
value
|
1.12438
|
2.47002
|
||||||
Host
Value – principal
|
20,000,000
|
9,000,000
|
||||||
Host
Value – interest
|
0
|
0
|
||||||
Shares
issuable on conversion
|
3,590,664
|
1,615,799
|
||||||
Option
value – principal
|
4,037,264
|
3,991,047
|
||||||
Derivative
value
|
4,037,264
|
3,991,047
|
June
30, 2010
|
December
31, 2009
|
|||||||
Finished
projects
|
$
|
12,216,090
|
$
|
20,417,820
|
||||
Construction
in progress
|
97,539,194
|
82,585,709
|
||||||
Total
real estate held for development or sale
|
$
|
109,755,284
|
$
|
103,003,529
|
June
30, 2010
|
December
31, 2009
|
|||||||
Intangible
acquired
|
$
|
47,620,518
|
$
|
47,310,765
|
||||
Accumulated
amortization
|
(5,994,623)
|
(5,955,631
|
)
|
|||||
Intangible
assets, net
|
$
|
41,625,895
|
$
|
41,355,134
|
June
30, 2010
|
December
31, 2009
|
|||||||
Deposits
on land use rights
|
53,114,051
|
28,084,346
|
|
▪
|
High-rise
apartment buildings, typically 19 to 33 stories, usually constructed of
steel-reinforced concrete that are completed within approximately 24
months of securing all required
permits.
|
|
▪
|
Mid-rise
apartment buildings, typically 7 to 18 stories, usually constructed of
steel-reinforced concrete that are completed within 12 to 18 months
of securing all required permits.
|
|
▪
|
Low-rise
apartment buildings and villas, typically 2 to 6 stories, often
constructed of steel-reinforced concrete that are completed within
approximately 12 months of securing all required
permits.
|
|
▪
|
Projects
in planning, in which we have purchased the development and or land
use rights for parcels of land as part of our project development
pipeline. The completion of projects on these sites is subject to adequate
financing, permits, licensing and certain market
conditions;
|
|
▪
|
Projects
in process, which include developments where we have typically secured the
development and land use rights, and where the site planning,
architecture, engineering and infrastructure work is in
progress;
|
|
▪
|
Projects
under construction, where the building construction has started but has
not yet been completed; and
|
|
▪
|
Completed
projects with units available for sale, where the construction has been
finished and most of the units in the buildings have been sold or
leased.
|
Project name
|
Type of
Projects
|
Actual or
Estimated
Construction
Period
|
Actual or
Estimated Pre-
sale
Commencement
Date
|
Total Site
Area
(m2)
|
Total GFA
(m2)
|
Sold GFA by
June 30, 2010
(m2)
|
||||||||||||||
JunJing
II
Phase
Two
|
Multi-Family
residential
&
Commercial
|
Q2/2009
-
Q2/2011
|
Q3/2009
|
29,800
|
112,556
|
104,947
|
||||||||||||||
Puhua
Project
|
Multi-Family
residential
&
Commercial
|
Q2/2009
-
Q3/2014
|
Q4/2009
|
192,582
|
640,000
|
67,883
|
Project name
|
Total
Number of
Units
|
Number of
Units sold by
June
30, 2010
|
Estimated
Revenue
($ million)
|
Contract
Revenue by
June
30, 2010
($ million)
|
Recognized
Revenue by
June
30,
2010
($ million)
|
|||||||||||||||
JunJing
II
Phase
Two
|
1,015
|
914
|
93.4
|
80.4
|
62.9
|
|||||||||||||||
Puhua
Project
|
5,000
|
531
|
700.0
|
46.3
|
20.4
|
Project
name
|
Type of
Projects
|
Estimated
Construction
Period
|
Estimated Pre-
sale
Commencement
Date
|
Total Site
Area
(m2)
|
Total GFA
(m2)
|
Total
Number of
Units
|
||||||||||||||
Baqiao
New
Development
Zone
|
Land
Development
|
2009
- 2020
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||
JunJing
III
|
Multi-Family
residential
&
Commercial
|
Q3/2010
- Q3/2012
|
Q3/2010
|
7,510
|
47,153
|
434
|
||||||||||||||
Park
Plaza
|
Multi-Family
residential
&
Commercial
|
Q4/2010
- Q4/2014
|
Q4/2010
|
44,250
|
180,000
|
2,000
|
||||||||||||||
Golden
Bay
|
Multi-Family
residential
&
Commercial
|
Q4/2010
- Q4/2014
|
Q2/2011
|
146,099
|
378,887
|
N/A
|
Project name
|
Type of
Projects
|
Completion
Date
|
Total Site
Area
(m2)
|
Total GFA
(m2)
|
Total
Number of
Units
|
Number of
Units sold by
June
30, 2010
|
||||||||||||||||
JunJing
II Phase One
|
Multi-Family
residential
&
Commercial
|
Q4/2009
|
39,524
|
136,012
|
1,182
|
1,162
|
||||||||||||||||
Tsining
Home IN
|
Multi-Family
residential
&
Commercial
|
Q4/2003
|
8,483
|
30,072
|
215
|
213
|
||||||||||||||||
Tsining-24G
|
Hotel,
Commercial
|
Q2/2006
|
8,227
|
43,563
|
773
|
749
|
||||||||||||||||
JunJing
I
|
Multi-Family
residential
&
Commercial
|
Q3/2006
|
55,588
|
167,931
|
1,671
|
1,642
|
Three months
|
Three months
|
|||||||
ended
|
ended
|
|||||||
Revenues by project:
|
June
30, 2010
|
June
30, 2009
|
||||||
US
dollars
|
||||||||
Project
Under Construction
|
||||||||
Tsining
JunJing II Phase One (Under construction on June 30, 2009)
|
$
|
-
|
$
|
20,020,967
|
||||
Tsining
JunJing II Phase Two
|
21,855,313
|
960,096
|
||||||
Puhua
Project
|
8,887,590
|
-
|
||||||
-
|
||||||||
Projects
Completed
|
-
|
|||||||
Tsining
JunJing II Phase One
|
3,135,381
|
|||||||
Tsining
JunJing I
|
1,077,115
|
(1,018,606)
|
||||||
Tsining-24G
|
110,835
|
1,018,023
|
||||||
Tsining
Gang Wan
|
94,361
|
-
|
||||||
Tsining
In Home
|
59,791
|
-
|
||||||
Additional
Project
|
200,460
|
|||||||
$
|
35,220,386
|
$
|
21,180,940
|
3 Months Ended
|
3 Months Ended
|
|||||||
Revenues by project:
|
June 30, 2010
|
June 30, 2009
|
||||||
US$
|
||||||||
Project
Under Construction
|
-
|
|||||||
Puhua
Project contract sale
|
$
|
$14,582,861
|
-
|
|||||
Revenue
|
8,887,590
|
-
|
||||||
Total
gross floor area (GFA) available for sale
|
640,000
|
-
|
||||||
GFA
sold during the period
|
18,013
|
-
|
||||||
Remaining
GFA available for sale
|
572,117
|
-
|
||||||
Phase
one percentage of completion
|
46%
|
-
|
||||||
Percentage
GFA sold during the period
|
2.8%
|
-
|
||||||
Percentage
GFA sold to date
|
10.6%
|
-
|
||||||
Average
sales price per GFA
|
|
810
|
||||||
|
||||||||
Tsining
JunJing II Phase Two contract sales
|
19,348,964
|
1,908,095
|
||||||
Revenue
|
|
21,855,313
|
960,096
|
|||||
Total
gross floor area (GFA) available for sale
|
112,556
|
112,556
|
||||||
GFA
sold during the period
|
23,199
|
2,456
|
||||||
Remaining
GFA available for sale
|
7,609
|
110,100
|
||||||
Percentage
of completion
|
81%
|
38%
|
||||||
Percentage
GFA sold during the period
|
21%
|
2%
|
||||||
Percentage
GFA sold to date
|
93%
|
2%
|
||||||
Average
sales price per GFA
|
|
834
|
777
|
|||||
Tsining
JunJing II Phase One contract sales (Under construction on June 30,
2009)
|
-
|
18,100,057
|
||||||
Revenue
|
|
-
|
20,020,967
|
|||||
Total
gross floor area (GFA) available for sale
|
-
|
136,012
|
||||||
GFA
sold during the period
|
-
|
28,367
|
||||||
Remaining
GFA available for sale
|
-
|
31,350
|
||||||
Percentage
of completion
|
-
|
81%
|
||||||
Percentage
GFA sold during the period
|
-
|
20.9%
|
||||||
Percentage
GFA sold to date
|
-
|
77.0%
|
||||||
Average
sales price per GFA
|
|
-
|
638
|
Tsining JunJing II Phase two Buildings
|
Percentage of Completion
|
|||
10#
|
86.61
|
%
|
||
11#
|
88.41
|
%
|
||
12#
|
76.64
|
%
|
||
13#
|
88.66
|
%
|
||
16#
|
83.37
|
%
|
||
17#
|
86.22
|
%
|
||
18#
|
77.60
|
%
|
||
19#
|
84.09
|
%
|
||
22#
|
75.38
|
%
|
||
23#
|
73.63
|
%
|
||
24#
|
74.83
|
%
|
||
25#
|
71.76
|
%
|
Puhua Phase one
|
Percentage of Completion
|
|||
1#
|
44.09
|
%
|
||
2#
|
79.16
|
%
|
||
3#
|
30.44
|
%
|
||
4#
|
64.27
|
%
|
||
5#
|
38.07
|
%
|
||
6#
|
51.26
|
%
|
||
7#
|
29.24
|
%
|
||
8#
|
47.47
|
%
|
||
9#
|
43.54
|
%
|
||
10#
|
44.64
|
%
|
||
11#
|
26.75
|
%
|
||
12#
|
42.43
|
%
|
||
13#
|
38.20
|
%
|
Puhua Phase two
|
Percentage of Completion
|
|||
14#
|
23.62
|
%
|
||
15#
|
23.06
|
%
|
||
16#
|
26.11
|
%
|
||
17#
|
28.38
|
%
|
||
18#
|
23.62
|
%
|
||
19#
|
23.06
|
%
|
||
20#
|
24.40
|
%
|
||
21#
|
22.97
|
%
|
||
22#
|
23.29
|
%
|
||
23#
|
23.06
|
%
|
||
24#
|
23.06
|
%
|
For the three months ended
|
||||||||
June
30,
|
June
30,
|
|||||||
2010
|
2009
|
|||||||
Interest
income
|
$
|
61,547
|
$
|
37,082
|
||||
Government
reimbursement of infrastructure cost (1)
|
-
|
637,024
|
||||||
Rental
income, net (2)
|
530,038
|
120,948
|
||||||
Other
non-operating income (3)
|
722,034
|
588,558
|
||||||
Gain
on disposal of fixed assets and inventory
|
23,292
|
-
|
||||||
Miscellaneous
income
|
36,498
|
151,281
|
||||||
Total
|
$
|
1,373,409
|
$
|
1,534,893
|
(1)
|
There
is no more government reimbursement of infrastructure cost in year
2010.
|
(2)
|
The
increase of rental income is due to additional rental contract signed and
collected during the period.
|
(3)
|
The
increase is due to property management fees of additional project (JunJing
II Phase I).
|
Immediately before the
Amendment date of
June 10, 2010
|
Immediately after the
Amendment date of
June 10, 2010
|
Loss on
extinguishment of
debt recognized
|
||||||||||
Fair
value of warrants liability
|
$ | 1,370,585 | $ | 1,631,525 | $ | 260,940 | ||||||
Fair
value of embedded derivatives
|
1,570,542 | 3,490,094 | 1,919,552 | |||||||||
Total
|
$ | 2,941,127 | $ | 5,121,619 | $ | 2,180,492 |
Expected
life
|
2.64 - 2.72
years
|
|||
Expected
volatility
|
105 | % | ||
Risk-free
interest rate
|
1.10 - 1.14 | % | ||
Dividend
yield
|
0 | % |
6 months
|
6 months
|
|||||||
ended
|
ended
|
|||||||
Revenues by project:
|
|
June
30, 2010
|
|
June30-
2009
|
||||
US
dollars
|
||||||||
Project
Under Construction
|
||||||||
Tsining
JunJing II Phase One (Under construction on June 30, 2009)
|
$
|
-
|
$
|
30,326,229
|
||||
Tsining
JunJing II Phase Two
|
37,017,035
|
960,096
|
||||||
Puhua
Project
|
20,342,154
|
-
|
||||||
Projects
Completed
|
||||||||
Tsining
JunJing II Phase One
|
7,230,906
|
-
|
||||||
Tsining
JunJing I
|
2,373,840
|
561,959
|
||||||
Tsining-24G
|
126,519
|
1,880,616
|
||||||
Tsining
Gang Wan
|
94,361
|
|||||||
Tsining
In Home
|
426,632
|
|||||||
Additional
Project
|
377,909
|
|||||||
Revenues
from the sale of properties
|
$
|
67,611,447
|
$
|
34,106,809
|
6 Months Ended
|
6 Months Ended
|
|||||||
Revenues by project:
|
|
June
30, 2010
|
|
June30-
2009
|
||||
US$
|
||||||||
Project
Under Construction
|
-
|
|||||||
Puhua
Project contract sale
|
$
|
32,462,984
|
-
|
|||||
Revenue
|
20,342,154
|
-
|
||||||
Total
gross floor area (GFA) available for sale
|
640,000
|
-
|
||||||
GFA
sold during the period
|
43,754
|
-
|
||||||
Remaining
GFA available for sale
|
572,117
|
-
|
||||||
Phase
one percentage of completion
|
46
|
%
|
-
|
|||||
Percentage
GFA sold during the period
|
6.8
|
%
|
-
|
|||||
Percentage
GFA sold to date
|
10.6
|
%
|
-
|
|||||
Average
sales price per GFA
|
$
|
742
|
||||||
Tsining
JunJing II Phase Two contract sales
|
39,352,751
|
1,908,095
|
||||||
Revenue
|
$
|
37,017,035
|
960,096
|
|||||
Total
gross floor area (GFA) available for sale
|
112,556
|
112,556
|
||||||
GFA
sold during the period
|
49,614
|
2,456
|
||||||
Remaining
GFA available for sale
|
7,609
|
110,100
|
||||||
Percentage
of completion
|
81
|
%
|
38%
|
|||||
Percentage
GFA sold during the period
|
44
|
%
|
2%
|
|||||
Percentage
GFA sold to date
|
93
|
%
|
2%
|
|||||
Average
sales price per GFA
|
$
|
793
|
777
|
|||||
Tsining
JunJing II Phase One contract sales (Under construction on June 30,
2009)
|
30,151,821
|
|||||||
Revenue
|
30,326,229
|
|||||||
Total
gross floor area (GFA) available for sale
|
136,012
|
|||||||
GFA
sold during the period
|
47,564
|
|||||||
Remaining
GFA available for sale
|
31,350
|
|||||||
Percentage
of completion
|
81%
|
|||||||
Percentage
GFA sold during the period
|
35%
|
|||||||
Percentage
GFA sold to date
|
77%
|
|||||||
Average
sales price per GFA
|
636
|
For
the six months ended
|
||||||||
June
30,
|
June
30,
|
|||||||
2010
|
2009
|
|||||||
Interest
income
|
$ | 178,093 | $ | 40,879 | ||||
Government
reimbursement of infrastructure cost (1)
|
- | 953,290 | ||||||
Rental
income (2)
|
840,938 | 205,604 | ||||||
Income
from property management services (3)
|
1,363,310 | 1,168,952 | ||||||
Gain
on disposal of fixed assets and inventory
|
23,292 | 16,945 | ||||||
Miscellaneous
income
|
149,629 | 151,281 | ||||||
$ | 2,555,262 | $ | 2,536,951 |
|
(1)
|
There
is no more government reimbursement of infrastructure cost in year
2010.
|
|
(2)
|
The
increase of rental income is due to additional rental contract signed and
collected during the period.
|
|
(3)
|
The
increase is due to property management fees of additional project (JunJing
II Phase I).
|
Noncontrolling Interest
|
||||
Noncontrolling
interests at December 31, 2009
|
$
|
28,371,468
|
||
Reclassify
to mandatorily redeemable noncontrolling interests in
subsidiaries
|
(28,371,468
|
) | ||
Noncontrolling
interests at June 30, 2010
|
$
|
-
|
Mandatory Redeemable
Noncontrolling Interests in
Subsidiaries
|
||||
Mandatory
redeemable noncontrolling interests in subsidiaries at December 31,
2009
|
$ | - | ||
Initial
fair value of mandatorily redeemable noncontrolling interests in
subsidiaries
|
42,600,511 | |||
Capitalized
accretion cost on mandatorily redeemable noncontrolling interests in
subsidiaries
|
8,708,484 | |||
Difference
in foreign exchange translation
|
261,849 | |||
Mandatorily
redeemable noncontrolling interests in s subsidiaries at June 30,
2010
|
$ | 51,570,844 |
Date
|
|
|||
December
31, 2010
|
$
|
29,492,000
|
||
December
31, 2011
|
29,492,000
|
|||
December
25, 2012
|
25,952,960
|
|||
Total
|
$
|
84,936,960
|
Payment due by period
|
||||||||||||||||||||||||||||
Commitments and
Contingencies
|
Total
|
Less than
1 year
|
1-2 years
|
2-3 years
|
3-4 years
|
4-5 years
|
After
5 years
|
|||||||||||||||||||||
Operating
lease
|
$ | 840,160 | $ | 178,858 | $ | 121,685 | $ | 77,088 | $ | 77,088 | $ | 77,088 | $ | 308,353 | ||||||||||||||
Consulting
contract
|
276,488 | 276,488 | - | - | - | - | - | |||||||||||||||||||||
Land
use right
|
3,539,040 | 928,998 | 2,610,042 | - | - | - | - | |||||||||||||||||||||
Total
|
$ | 4,655,688 | $ | 1,384,344 | $ | 2,731,727 | $ | 77,088 | $ | 77,088 | $ | 77,088 | $ | 308,353 |
June 30,
2010
|
December 31,
2009
|
|||||||
Xi'an
Rural Credit Union Zao Yuan Rd. Branch
|
||||||||
Due
July 3, 2010, annual interest is at 8.496 percent, secured by the
Company's Jun Jing Yuan I, Han Yuan and Xin Xing Tower
projects
|
$ | 2,949,200 | $ | 2,930,017 | ||||
China
Construction Bank, Xi'an Branch
|
||||||||
Due
August 27, 2011, annual interest is at a floating interest rate based on
110% of the People’s Bank of China prime rate, secured by the Company's
Jun Jing Yuan II project
|
- | 3,223,018 | ||||||
Due
September 8, 2012, annual interest is at a floating interest rate based on
110% of the People’s Bank of China prime rate, secured by the Company's
Jun Jing Yuan II project
|
- | 12,452,571 | ||||||
Xinhua
Trust Investments Ltd.
|
||||||||
Due
January 28, 2012, annual interest is at 10 percent, secured by the 24G
project
|
22,119,000 | - | ||||||
Commercial
Bank Weilai Branch
|
||||||||
Due
August 29, 2010, annual interest is at 10.21 percent, secured by the
Company's Jun Jing Yuan I and XinXing Tower projects
|
5,161,100 | 5,127,528 | ||||||
Bank
of Beijing, Xi’an Branch
|
||||||||
Due
December 10, 2012, annual interest is at the bank’s prime rate, secured by
the Puhua project with a minimum repayment of $7.3 million required in
2011.
|
22,119,001 | 12,452,571 | ||||||
Total
|
$ | 52,348,301 | $ | 36,185,705 |
Exhibit
|
||
Number
|
Description of Exhibit
|
|
4.1
|
First
Amendment to Securities Purchase Agreement between the Company and
investors dated June 11, 2010
|
|
4.2
|
Form
of Senior Secured Convertible Note Issued by the
Company
|
|
4.3
|
Form
of Stock Purchase Warrant Issued by the Company
|
|
31.1
|
Certification
of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a),
promulgated under the Securities and Exchange Act of 1934, as
amended
|
|
31.2
|
Certification
of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d 14(a),
promulgated under the Securities and Exchange Act of 1934, as
amended
|
|
32.1
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 (Chief Executive
Officer)
|
|
32.2
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 (Chief Financial
Officer)
|
China
Housing & Land Development, Inc.
|
|||
August
12, 2010
|
By:
|
/s/
|
Xiaohong Feng
|
Xiaohong
Feng
|
|||
Chief
Executive Officer
|
|||
(Principal
Executive
Officer)
|
August
12, 2010
|
By:
|
/s/
|
Cangsang Huang
|
Cangsang
Huang
|
|||
Chief
Financial Officer
|
|||
(Principal
Financial and Accounting
Officer)
|