PR Newswire | Oct 30, 2020 06:50AM EDT

10/30 05:49 CDT

NAM TAI PROPERTY INC. Announces Third Quarter 2020 Results SHENZHEN, China, Oct. 30, 2020

SHENZHEN, China, Oct. 30, 2020 /PRNewswire/ -- Nam Tai Property Inc. ("Nam Tai" or the "Company") (NYSE Symbol: NTP) today announced its unaudited financial results for the quarter ended September 30, 2020.

KEY HIGHLIGHTS

In the quarter ended September 30, 2020:

* Revenue was $1.1 million in the third quarter of 2020, growing 35.4% year-on-year. * Consolidated net loss was $4.9 million in the third quarter of 2020, decreasing 23.4% year-on-year. * Real estate property under development was $385.2 million as of September 30, 2020, increasing 72.0% year-on-year. * Assets held for lease increased by $30.4 million in the third quarter of 2020, mainly due to the transfer of Towers 1, 6 and 7 of Nam Tai Inno Park from real estate properties under development.

The following tables set forth key highlights of the financial information for the periods indicated:(In thousands of US dollars, except per share data, percentages and as otherwise stated)

Three months ended September 30, Nine months ended September 30,

2020 2019 YoY(%) 2020 2019 YoY(%)

Revenue $ 1,067 $ 788 35.4% $ 2,609 $ 2,126 22.7%

Gross profit $ 241 $ 464 (48.1)% $ 483 $ 1,242 (61.1)%

Net lossfrom $ (5,775) $ (6,015) (4.0)% $ (13,986) $ (12,639) (10.7)%operations

% of revenue (541.2)% (763.3)% (536.1)% (594.5)%

per share $ (0.15) $ (0.16) (6.3)% $ (0.36) $ (0.33) 9.1%(diluted)

Consolidated $ (4,850) $ (6,330) (23.4)% $ (11,810) $ (11,473) 2.9%net loss

% of revenue (454.5)% (803.3)% (452.7)% (539.7)%

Basic loss $ (0.12) $ (0.17) (29.4)% $ (0.30) $ (0.30) -per share

Diluted loss $ (0.12) $ (0.17) (29.4)% $ (0.30) $ (0.30) -per share

Weightedaveragenumber ofshares('000)

Basic 39,072 38,342 38,950 38,246

Diluted 39,072 38,342 38,950 38,246

Financial Position

As of As of As of September 30, December September 30, 31,

2020 2019 2019

Cash and cash equivalents^(a) $ 72,075 $ 130,218 $ 66,924

Restricted cash $ 1,975 $ - $ -

Short-term investments^(b) $ - $ 2,166 $ -

Prepaid expenses and other $ 6,600 $ 9,338 $ 6,706receivables

Real estate properties under $ 385,227 $ 251,685 $ 223,985development, net

Property, plant and equipment, net $ 25,779 $ 25,950 $ 26,829

Assets held for lease, net $ 30,375 $ - $ -

Right of use assets $ 9,580 $ 4,078 $ -

Deferred income tax assets $ 3,292 $ 2,011 $ -

Total assets $ 536,561 $ 430,410 $ 327,467

Accounts payable $ 52,573 $ 36,676 $ 46,255

Advance from customers $ 122,012 $ 67,642 $ 55,548

Lease liabilities $ 9,922 $ 4,171 $ -

Short-term bank loans $ 1,401 $ 1,410 $ -

Long-term bank loans $ 133,204 $ 95,942 $ 7,072

Total shareholders' equity $ 211,761 $ 214,738 $ 214,017

Total number of common shares 39,198 38,632 38,442issued

Notes:

(a) Cash and cash equivalents include all cash balances andcertificates of deposit having a maturity date of three months or less uponacquisition.

(b) Short-term investments include all highly liquid investments withoriginal maturities of greater than three months and less than 12months and investments that are expected to be realized in cash during the next12 months.

SUPPLEMENTARY INFORMATION (UNAUDITED) IN THE THIRD QUARTER OF 2020

Key Highlights of Financial Position

As of As of As of September 30, December 31, September 30,

2020 2019 2019

Ratio of cash^(^a) to current 0.38 1.16 0.63liabilities

Current ratio^(^b) 1.01 1.25 0.70

Debt ratio^(c) 60.5% 50.1% 34.6%

Return on equity (7.4)% (3.0)% (6.9)%

Ratio of total liabilities to 1.53 1.00 0.53total equity

Notes:

(a) Cash in this financial ratio includes cash, cash equivalents andshort-term investments.

(b) Current ratio equals current assets, including prepaid expenses andother receivables, divided by current liabilities for the period.

(c) Debt ratio equals total liabilities divided by total assets forthe period.

FINANCIALRESULTS

Revenue

Revenue for the third quarter of 2020 was $1.1 million compared to $0.8 million in the third quarter of 2019. Revenue for the third quarter of 2020 mainly consisted of rental income of $0.6 million from existing factory buildings located on the sites of Inno Valley and Wuxi, $0.2 million from Nam TaiU-Creative Space (Lujiazui) and Nam Tai Tang Xi Technology Park, and $0.1 million from Nam Tai Inno Park. Revenue for the third quarter of 2019 mainly consisted of rental income of $0.7 million from the existing factory buildings located on the sites of Inno Valley and Wuxi.

Revenue for the nine months of 2020 was $2.6 million compared to $2.1 million in the nine months of 2019. Revenue for the nine months of 2020 mainly consisted of rental income of $1.8 million from the existing factory buildings located on the sites of Inno Valley and Wuxi, $0.3 million from Nam TaiU-Creative Space (Lujiazui) and Nam Tai Tang Xi Technology Park, and $0.1 million from Nam Tai Inno Park. Revenue for the nine months of 2019 mainly consisted of rental income of $1.8 million from the existing factory buildings located on the sites of Inno Valley and Wuxi.

Gross Profit

Gross profit for the third quarter of 2020 was $0.2 million compared to $0.5 million in the third quarter of 2019. Gross profit for the third quarter of 2020 mainly consisted of revenue of $1.1 million, offset by cost of $0.8 million for the period. Gross profit for the third quarter of 2019 mainly consisted of revenue of $0.8 million, offset by cost of $0.3 million for the period. The decline in gross profit for the third quarter of 2020, year-on-year, was mainly due to the rental expenses of $0.3 million paid for Nam TaiU-Creative Space (Lujiazui), which were not incurred in the third quarter of 2019.

Gross profit for the nine months of 2020 was $0.5 million compared to $1.2 million in the nine months of 2019. Gross profit for the nine months of 2020 mainly consisted of revenue of $2.6 million, offset by cost of $2.1 million for the period. Gross profit for the nine months of 2019 mainly consisted of revenue of $2.1 million, offset by cost of $0.9 million for the period.

Net Loss from Operations

Net loss from operations for the third quarter of 2020 was $5.8 million compared to net loss from operations of $6.0 million in the third quarter of 2019. Net loss from operations for the third quarter of 2020 mainly consisted of general and administrative expenses of $3.8 million and selling and marketing expenses of $2.2 million, which were offset in part by our gross profit of $0.2 million for the period. Net loss from operations for the third quarter of 2019 mainly consisted of general and administrative expenses of $2.7 million and selling and marketing expenses of $3.8 million, which were offset in part by our gross profit of $0.5 million for the period. Compared with the third quarter of 2019, the increase of $1.1 million in general and administrative expenses for the third quarter of 2020 was mainly due to the increase of $1.3 million in agent and professional fees. The decrease in selling and marketing expense of $1.6 million for the third quarter of 2020 was mainly due to the marketing and commission fees of $1.2million incurred by Nam Tai Inno Park, which were $2.8million for the third quarter of 2019.

Net loss from operations for the nine months of 2020 was $14.0 million compared to net loss from operations of $12.6 million in the nine months of 2019. Net loss from operations for the nine months of 2020 mainly consisted of general and administrative expenses of $9.4 million and selling and marketing expenses of $5.1 million, which were offset in part by our gross profit of $0.5 million for the period. Net loss from operations for the nine months of 2019 mainly consisted of general and administrative expenses of $8.5 million and selling and marketing expenses of $5.4 million, which were offset in part by our gross profit of $1.2 million for the period. Compared with the nine months of 2019, the increase of $0.9 million in general and administrative expenses for the nine months of 2020 was mainly due to the increase of $1.3 million in agent and professional fees. The decrease in selling and marketing expenses of $0.3 million for the nine months of 2020 was mainly due to the decrease in the marketing and commission fees of Nam Tai Inno Park.

Consolidated Net Loss

Consolidated net loss for the third quarter of 2020 was $4.9 million compared to net loss of $6.3 million for the third quarter of 2019. Consolidated net loss for the third quarter of 2020 mainly consisted of net loss from operations of $5.8 million, which was offset in part by interest income of $0.3 million from time deposits, deferred income tax credit of $0.6 million and other net income of $0.04 million. Consolidated net loss for the third quarter of 2019 mainly consisted of net loss from operations of $6.0 million and other net expenses of $0.8 million, which were offset in part by interest income of $0.5 million.

Consolidated net loss for the nine months of 2020 was $11.8 million compared to net loss of $11.5 million in the nine months of 2019. Consolidated net loss for the nine months of 2020 mainly consisted of net loss from operations of $14.0 million, which was offset in part by interest income of $1.1 million from time deposits, deferred income tax credit of $1.1 million and other net expenses of $0.02 million. Consolidated net loss for the nine months of 2019 mainly consisted of net loss from operations of $12.6 million and other net expenses of $0.8 million, offset in part by interest income of $2.0 million.

Cash and Cash Equivalents and Short-term Investments

Cash and cash equivalents and short-term investments decreased by $60.3 million from $132.4 million as of December 31, 2019 to $72.1 million as of September 30, 2020. The decrease was mainly due to the payment of $148.7 million for real estate properties under development, the repayment of $38.5 million for bank loans, and the purchase of property, plant and equipment of $0.7 million, which was offset by proceeds from shares issued for option exercise of $3.8 million, advance from customers of $54.4 million and the withdrawal of the long-term bank loans of $73.2 million in the nine months of 2020.

Restricted Cash

Restricted cash increased by $2.0 million as of September 30, 2020. No restricted cash existed at the end of 2019. The increase mainly included $1.2 million security cash deposit and $0.8 million cash deposit for a bank loan granted. The security cash deposit was due to the guarantee provided by the Company for the bank loan of some of our long-term rental customers, which will be gradually released from the bank according to the repayment progress of such customers. We expect that there will be no significant risk to the deposits.

Prepaid Expenses and Other Receivables

Prepaid expenses and other receivables decreased by $2.7 million from $9.3 million as of December 31, 2019 to $6.6 million as of September 30, 2020. The decline was mainly due to the decrease of $1.1 million in other current assets, $0.1 million in interest receivable, $0.2 million in other receivables and $1.4 million in prepayments.

Real Estate Properties under Development, Net

Real estate properties under development increased by $133.5 million from $251.7 million as of December 31, 2019 to $385.2 million as of September 30, 2020. The increase consisted of $9.6 million for the construction of Nam Tai Inno Park, $14.3 million for the construction of Nam Tai Technology Center, and $109.5 million for the land price and construction of Nam Tai Longxi.

Assets Held for Lease, Net

Assets held for lease increased by $30.4 million as of September 30, 2020, which was mainly due to the transfer of Towers 1, 6 and 7 of Nam Tai Inno Park from real estate properties under development in the third quarter of 2020.

Right of Use Assets

Right of use assets increased by $5.5 million from $4.1 million as of December 31, 2019 to $9.6 million as of September 30, 2020. The increase was mainly due to the recognition of right of use assets of $5.8 million for Nam Tai U-Creative Space (Lujiazui). In addition, the recognition of right of use assets for Nam Tai Tang Xi Technology Park and Hong Kong office decreased by a total of $0.3 million, in accordance with Accounting Standards Codification ("ASC") 842 Leases which became effective on January 1, 2019.

Deferred Income Tax Assets

Deferred income tax assets increased by $1.3 million from $2.0 million as of December 31, 2019 to $3.3 million as of September 30, 2020. The increase was mainly due to the loss of $3.9 million incurred during the construction of Nam Tai Technology Center in the nine months of 2020, which was expected to be utilized in the next five years.

Accounts Payable

Accounts payable increased by $15.9 million from $36.7 million as of December 31, 2019 to $52.6 million as of September 30, 2020. The increase mainly consisted of the increase of project payables for Nam Tai Technology Center of $3.0 million and the increase of project payables for Nam Tai Inno Park of $8.1 million.

Advance from Customers

Advance from customers increased by $54.4 million from $67.6 million as of December 31, 2019 to $122.0 million as of September 30, 2020. The increase was mainly attributed to $53.7 million in prepaid rent received from customers of Nam Tai Inno Park.

Lease Liabilities

Lease liabilities increased by $5.7 million from $4.2 million as of December 31, 2019 to $9.9 million as of September 30, 2020. The increase was mainly due to the recognition of lease liabilities of $6.0 million for Nam Tai U-Creative Space (Lujiazui). In addition, the recognition of lease liabilities for Nam Tai Tang Xi Technology Park and Hong Kong office decreased by a total of $0.3 million in accordance with ASC 842 Leases.

Long-term Bank Loans

Long-term bank loans increased by $37.3 million from $95.9 million as of December 31, 2019 to $133.2 million as of September 30, 2020. As of September 30, 2020, the balance of long-term bank loan mainly included the borrowings of $6.7 million from Bank of Beijing, $106.9 million from Bank of China, $15.7 million from Xiamen International Bank, and $3.9 million from Industrial Bank (China). The increase was mainly due to the withdrawal of $106.9 million from Bank of China and $15.7 million from Xiamen International Bank.In the third quarter of 2020, the Company repaid bank borrowings amounted to $30.4 million. The total repayment in the nine months of 2020 amounted to $38.5 million.

Liquidity and Capital Resources

As of September 30, 2020, the Company had total cash and cash equivalents and short-term investments of $72.1 million. As of December 31, 2019, the Company had total cash and cash equivalents and short-term investments of $132.4 million.

According to our project investment plan, the capital expenditure for the fourth quarter of 2020 is estimated to be $49.2 million. By the end of 2020, our capital expenditure in the year is estimated to reach $207.8 million.

Please refer to the Company's Condensed Consolidated Statements of Comprehensive Income for the periods ended September 30, 2020 and 2019 for further details. The information contained herein has also been published on the Company's website at https://www.namtai.com/quarterly/index.html.

BUSINESS OVERVIEW

Progress of Leasing and Business Invitation

As of September 30, 2020, we had leasable area of approximately 365,000 square meters, of which around 85% was located in Shenzhen and around 15% was located in Wuxi and Shanghai. As of September 30, 2020, the occupancy rate of our Shenzhen projects, including pre-leasing areas, was approximately 38%, and the occupancy rate of Wuxi and Shanghai projects was approximately 97%. The occupancy rate of Nam Tai Inno Park was 31% with an increase of eight percentage points from the quarter ended June 30, 2020.

Leasable Area as of OccupancyProjects September 30, Rate 2020

Shenzhen 310,193 38%

Nam Tai Inno Park 264,337 31%

Nam Tai Inno Valley^ 38,270 83%

Nam Tai ? Tang Xi Technology Park 7,586 72%

Wuxi & Shanghai 54,809 97%

Wuxi facilities 50,828 100%

Nam Tai ? U-Creative Space (Lujiazui)^ 3,981 54%

Total 365,002 47%

On September 10, 2020, the Company launched the grand opening of Nam Tai Inno Park as a part of the "Tech Empowerment Greater Bay Area" - Technology and Industry Development Summit held at Guangming Community Sports Center. The opening of the Park marked the first project launched to the market in Nam Tai's portfolio and highlighted the progress the Company was making towards its strategy to be a leading operator of technology parks. At the event, Nam Tai hosted a ceremony with corporate tenants and business partners, including Taihang Automobiles, Mornsun Electronics, Yihong Technology, as well as Harbin Institute of Technology (Shenzhen) and Cowin Capital, among others.

Project Construction and Development Progress

* For Nam Tai Inno Park, as of September 30, 2020, the units in the Tower 1 were delivered to tenants, and the construction of Towers 6 and 7 was completed and they are ready to use. In the third quarter of 2020, we attracted 16 corporate tenants. We will continue to deliver units to our tenants in the fourth quarter of 2020 and 2021. * For Nam Tai Technology Center, the main structures of the basements of Towers A and C were completed as of September 30, 2020. Meanwhile, the basement levels of Towers B and D are still under decoration and construction. Currently, we have not yet met the conditions for obtaining the pre-sale permit. * For Nam Tai Inno Valley, the occupancy rate is 83% and 52% of tenants are from high-end and general equipment manufacturing industries as at September 30, 2020. The urban renewal project is still in the application status and we will disclose the information about the progress of the urban renewal applications in due course. * As of September 30, 2020, we had managed to obtain the foundation work construction permit for Nam Tai Longxi project. At present, the construction team is conducting piling and shoring work.

Industrial Operation Progress

* Together with Shenzhen Branch of China Mobile Group Guangdong Co., Ltd., the Company established the China Mobile 5G Innovation Center in Nam Tai Inno Park, providing 5G innovation research public services, artificial intelligence, research and development of 5G, detection and inspection, along with transfer of technological results and other services for enterprises in the park. Besides, the Company and Shenzhen Integrated Circuit Association established Integrated Circuit Industry Base and Integrated Circuit Industry Public Service Platform, providing public design platform for the integrated circuit industry, public test service platform, talent training and other types of services, which is conducive to improving the industrial agglomeration of the park and enriching the industrial development. * In August 2020, we held the fourth Guangming District Innovation and Entrepreneurship Sub-Contest 2020 in Nam Tai Inno Park, which was hosted by the Science and Technological Innovation Bureau of Guangming District in Shenzhen and guided by the Shenzhen Science and Technology Innovation Committee and the People's Government of Guangming District in Shenzhen. It received the supports of a numbers of innovative enterprises in Guangming District. * In the third quarter of 2020, we held numerous industrial operation activities, including two special exchange activities. The themes of the industrial activities included: Future Insights on Guangming District -- AI Technology Application Salon and Nam Tai Group x Big Data and AI Industry Alliance -- "Visiting AI Unicorn SenseTime", etc. These activities demonstrated the service and resource advantages of Nam Tai Inno Park and strengthened Nam Tai's industrial operation services.

Awards and Recognitions

* In August 2020, Towers A, B and C of Nam Tai Technology Center received Gold precertification under the Leadership in Energy and Environmental Design (LEED) v4 Building Design and Construction: Core and Shell Development (CS) rating system. This precertification is an endorsement of the Company's commitment to high-performance green buildings and an acknowledgement of the progress we have made on this key development project. * On August 8, 2020, the "20th Annual Conference of the Boao21st Century Real Estate Forum", initiated by 21st Century Business Herald and co-organized by China Real Estate Chamber of Commerce and Elite Habitat Development Foundation, was concluded in Shanghai, Nam Tai was honored to receive the "Industrial Real Estate Model Enterprise of 2020" award for its comprehensive capacities and brand influence. * On August 17, 2020, China Real Estate Information Corp. ("CRIC") announced top lists of eight categories of properties, which included residential buildings, properties, commercial buildings, offices, long-term rental properties, hotels and landmarks. With highly adaptable operational model and high quality operational services, Nam Tai was awarded the "Top 20 2020 Guangdong-Hong Kong-Macau Greater Bay Area Excellent Industrial Park Operator."

Policy Update

This year marks the 40th anniversary of the establishment of the Shenzhen Special Economic Zone. In terms of policy development, the General Office of the Communist Party of China Central Committee and the General Office of the State Council issued the "Implementation Plan for Comprehensive Reform to Build Shenzhen Demonstration Pilot Area of Socialism with Chinese Characteristics (2020-2025) (the "Implementation Plan") on October 11, 2020. Major reform measures are expected to be taken in the spheres of market-based allocation of production factors, business environment optimization, and the utilization of urban space, while a list specifying the first batch of authorized matters shall be formulated and implemented.

On August 18, 2020, Shenzhen Metro Line 6 was officially put into operation. Commencing from the Science Museum Station, Shenzhen Metro Line 6 passes through Futian District, Luohu District, Guangming District and Bao'an District. As an express line in Central and Western Shenzhen, the opening of Line 6 will promote the development of Guangming District, boost the improvement of urban spacing, and strengthen the connection with Dongguan and other surrounding cities. Nam Tai Inno Park is only about 1.2 kilometers away from Changzhen station and 1.7 kilometers away from Fenghuangcheng station of Line 6. With Line 6, the project can be conveniently connected to the central areas in Shenzhen such as Futian Central Business District ("CBD") and Nanshan CBD. The vigorous construction and development of the Guangming Science City in Shenzhen is also boosting the prospects of the Company's technology parks in the nearby areas.

RISKS RELATED TO OUR BUSINESS

Legal Proceedings

In October 2020, IsZo Capital LP ("Claimant") commenced legal proceedings against us and other parties in the High Court of Justice of the British Virgin Islands of the Eastern Caribbean Supreme Court. The claims contested, among other things, that the private placement previously announced by us on October 5, 2020 was invalid and should be set aside, and the Claimant also seeks to require us hold a special meeting regarding the election of directors. In an order made ex parte, without notice to us, the Court granted the Claimant's request for a preliminary injunction enjoining us from taking certain corporate actions pending additional hearings to be held before the Court. In a Court hearing subsequent to the order, we have provided undertakings to the Court that we will continue the preservation of the position until the Court has the opportunity to consider additional details and evidence related to the claims. We are currently unable to estimate the potential loss, if any, associated with the resolution of such lawsuit, if it proceeds. We anticipate that we will continue to be a target for lawsuits in the future. There can be no assurance that we will be able to prevail in our defense or reverse any unfavorable judgment on appeal, and we may decide to settle lawsuits on unfavorable terms. Any adverse outcome of these cases, including any plaintiffs' appeal of the judgment in these cases, could result in payments of substantial monetary damages or fines, or changes to our business practices, and thus have a material adverse effect on our business, financial condition, results of operation, cash flows and reputation. The litigation process may utilize a significant portion of our cash resources and divert management's attention from the day-to-day operations of our company, all of which could harm our business. We also may be subject to claims for indemnification related to these matters, and we cannot predict the impact that indemnification claims may have on our business or financial results.

For more details on the risks related to our business, please refer to "Item 3-Key Information -D Risk Factors-Risks Related to Our Business" on our 2019 annual report included in the Form 20-F.

OPERATING RESULTS

As of September 30, 2020

(By Floor Area) (in square meter)

Project Completed 44,180

Project Under Development 592,387

Project For Future Development 170,200

Total 806,767

Project Portfolio - As of September 30, 2020

Nam Tai Nam Tai Nam Tai Nam Tai ? Project Longxi Inno Park Technology Center Inno Valley

City Shenzhen Shenzhen Shenzhen Dongguan

Residential Type^(a) Office and DormitoryOffice and DormitoryOffice and Dormitoryand Commercial Property

Site Area 103,739 22,364 22,367 33,763 (sq.m.)

Capacity GFA 265,139 139,746 N/A 84,408

Total GFA 331,701 194,595 170,200^(b) 110,271^(c) (sq.m.)

Completed^ 44,180^(e) - - - (d) Under TotalDevelopment287,521 194,595 - 110,271^(c) GFA (sq.m.) Future Development- - 170,200^(b) - (sq. m.)

Interest Attributable To 100% 100% 100% 100% Us

Fenghuang Dongtai Address Community, Namtai Road, Baoan District, Shenzhen Village, Guangming District, Machong Town, Shenzhen Dongguan



Notes:

(a) The types of our projects are based on our development plans or certificates issued by the relevant authority subject to adjustment upon its final approval.

(b) The gross floor area is based on the assumption that we will receive M-0 zoning approval for the entire Inno Valley site prior to its redevelopment. If we do not receive the M-0 zoning approval, we will be required to develop Inno Valley under the M-1 zoning requirements. In that case, appropriate adjustments to our plan will have to be made. The existing gross floor area of Inno Valley is 41,927 square meters. According to "Shenzhen Industrial Block Range Line Management Measures", the location of Nam Tai Inno Valley is within the designated industrial block range, of which the government strictly controls the proportion of M-0 zoning on industrial land. Therefore, the proportion of M-0 zoning, floor area ratio and construction area of Inno Valley are subject to the final approval of the government which is uncertain at this time. We cannot guarantee that we will be able to develop Inno Valley according to the floor area currently disclosed.

(c) The figures are subject to adjustment upon the final approval of the relevant authority.

(d) Properties completed mean that after the registration of completion acceptance, the constructions of the properties are completed and the internal acceptance criteria are met.

(e) As of September 30, 2020, the construction of Towers 1, 6 and 7 of Nam Tai Inno Park was completed.

Properties Under Development

The table below sets forth certain information of our property projects under development as of September 30, 2020, comprising properties under development with the land use right certificate and construction permits obtained but the construction work was still in progress.

Project Nam Tai Inno Nam Tai Technology Nam Tai ? Park Center Longxi

City Shenzhen Shenzhen Dongguan

(Estimated) Total GFA (sq. 331,701 194,595 110,271m.)

(Estimated) Leasable GFA 264,337 - -(sq. m.)

(Estimated) Saleable GFA - 130,166 64,408^(a)(sq. m.)

Commencement of May 2017 December 2018 July 2020Construction

Status of Pre-sale Permit Not eligible To be obtained To be obtained

Estimated Completion Time 2020 Q4 2022 Q1 2022

Interest Attributable to 100% 100% 100%Us

Notes:

(a) Excluding parking space and construction area that needs to be handedover to the local government free of charge. The final floor area issubject to the approval of the government.

Properties for Future Development

The table below sets forth certain information of our property projects held for future development as of September 30, 2020, comprising properties for which we have obtained the land use right certificate while the construction commencement permit has not yet been obtained.

Project Nam Tai Inno Valley

City Shenzhen

Estimated Total GFA^(1) (sq. m.) 170,200

Estimated Completion Time 2025

Note:

(1) The figures are subject to adjustment upon the final approval of therelevant authority.

Projects for Operation and Management

The table below sets forth certain information of our projects leased from third parties for operation and management as of September 30, 2020.

Contracted Floor Project Location Area Operation Model

(sq. m.)

Nam Tai ? Tang Xi Technology Tenant1 Park Shenzhen 7,586 Recruitment and Operation

Nam Tai ? U-Creative Space Tenant2 (Lujiazui) Shanghai 3,981 Recruitment and Operation

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.

SCHEDULE FOR RELEASE OF QUARTERLY FINANCIAL RESULTS FOR 2020

Announcements of Financial Results

Quarter Date of release

Q1 2020 April 27, 2020 (Monday)

Q2 2020 July 24, 2020 (Friday)

Q3 2020 October 30, 2020 (Friday)

Q4 2020 February 1, 2021 (Monday)

ABOUT NAM TAI PROPERTY INC.

We are a real estate developer and operator, mainly conducting business in Mainland China. Our main land resources are located in the Guangdong-Hong Kong-Macao Greater Bay Area ("Greater Bay Area") and Wuxi, China, of which the three plots of land in Shenzhen will be developed into the technology parks of Nam Tai Inno Park, Nam Tai Technology Center and Nam Tai Inno Valley. We plan to build these technology parks into landmark projects in the region, and provide high-quality industrial offices, industrial service spaces and supporting dormitories to the park tenants. Based on the experience of developing and operating technology parks, and the industrial relationship network accumulated over the past 40 years, we have also exported the operation mode of technology parks to other industrial properties using the asset-light model to rent industrial properties for repositioning and business invitation. We will also expand the commercial and residential property business in China as an auxiliary development strategy of the Company. As the growth prospects of China maintain, we will actively seize development opportunities in the Greater Bay Area and other first- and second-tier cities in China, and continue to strengthen and expand the business of industrial real estate, and commercial and residential properties.

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 our press releases and financial results.

NAM TAI PROPERTY INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE PERIODS ENDED SEPTEMBER 30, 2020 AND 2019

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

Three months ended Nine months ended September 30, September 30,

2020 2019 2020 2019

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Revenue ^(1) 1,067 788 2,609 2,126

Cost of revenue (826) (324) (2,126) (884)

Gross profit $ 241 $ 464 $ 483 $ 1,242

Expenses

General and (3,808) (2,727) (9,356) (8,493)administrative expenses

Selling and marketing (2,208) (3,752) (5,113) (5,388)expenses

$ (6,016) $ (6,479) $ (14,469) $ (13,881)

Net loss from $ (5,775) $ (6,015) $ (13,986) $ (12,639)operations

Other expense, net ^(2) 43 (802) (16) (820)

Interest income 273 487 1,052 1,986

Loss before income tax $ (5,459) $ (6,330) $ (12,950) $ (11,473)

Deferred income tax 609 - 1,140 -credit

Consolidated net loss $ (4,850) $ (6,330) $ (11,810) $ (11,473)

Othercomprehensive income 6,607 (4,289) 4,113 (4,248)(loss)^ (3)

Functional currency 6,607 (4,289) 4,113 (4,248)translation adjustment

Consolidatedcomprehensive income $ 1,757 $ (10,619) $ (7,697) $ (15,721)(loss)

Loss Per Share

Basic $ (0.12) $ (0.17) $ (0.30) $ (0.30)

Diluted $ (0.12) $ (0.17) $ (0.30) $ (0.30)

Weighted average numberof shares ('000)

Basic 39,072 38,342 38,950 38,246

Diluted 39,072 38,342 38,950 38,246

Notes:

(1) Inno Valley has been open for leasing since July 2018. The propertyat Wuxi has been rented to a third party lessee with a term of 12years ending in October 2030.

(2) Other expense, net, includes an exchange loss of $0.02 million and$0.9 million for the three months ended September 30, 2020 and 2019respectively.

(3) Other comprehensive loss was due to foreign exchange translation.

NAM TAI PROPERTY INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS AT SEPTEMBER 30, 2020 AND SEPTEMBER 30, 2019

(In Thousands of US dollars)

September 30, December 31,

2020 2019

(Unaudited) (Audited)

ASSETS

Current assets:

Cash and cash equivalents^(1) 72,075 130,218

Restricted cash 1,975 -

Short-term investments^(1) - 2,166

Rental deposits 156 -

Accounts receivable 1,134 1,032

Real estate properties under development, net^ 109,470 -(2)

Prepaid expenses and other receivables 6,600 9,338

Total current assets $ 191,410 $ 142,754

Rental deposits 275 243

Real estate properties under development, net^ 275,757 251, 685(2)

Property, plant and equipment, net 25,779 25,950

Assets held for lease, net 30,375 -

Right of use assets 9,580 4,078

Deferred income tax assets 3,292 2,011

Prepaid expenses - 3,598

Other assets 93 91

Total assets $ 536,561 $ 430,410

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term bank loan 1,401 1,410

Current portion of long-term bank loans 6,639 2,081

Accounts payable 52,573 36,676

Rental deposits from customers 887 343

Accrued expenses and other payables 4,517 5,699

Advance from customers 122,012 67,642

Current portion of lease liabilities 1,088 529

Total current liabilities $ 189,117 $ 114,380

Long-term bank loans 126,565 93,861

Rental deposits from customers 264 178

Financing lease payable 20 13

Other payables - 3,598

Noncurrent portion of lease liabilities 8,834 3,642

Total liabilities $ 324,800 $ 215,672

EQUITY

Shareholders' equity:

Common shares 392 386

Additional paid-in capital 265,009 260,295

Accumulated losses (38,330) (26,520)

Accumulated other comprehensive loss^(3) (15,310) (19,423)

Total shareholders' equity $ 211,761 $ 214,738

Total liabilities and shareholders' equity $ 536,561 $ 430,410

Notes:

(1) According to the definition of "Balance Sheet" under the FinancialAccounting Standard Board ("FASB") Accounting Standards Codification ("ASC")210-10-20, cash equivalents are short-term, highly liquid investments that arereadily convertible to cash. Only investments with original maturities ofthree months or less when purchased would qualify under such definition.

(2) Capitalization on project investment was $14.6 million for thethird quarter of 2020 and accumulated project investment was $385.2 million asof September 30, 2020.

(3) Accumulated other comprehensive loss represented conversiondifferences in foreign currency statements.

NAM TAI PROPERTY INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED SEPTEMBER 30, 2020 AND 2019

(In Thousands of US dollars)

Three months ended Nine months ended September 30, September 30,

2020 2019 2020 2019

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

CASH FLOWS FROMOPERATING ACTIVITIES

Consolidated net loss $ (4,850) $ (6,330) $ (11,810) $ (11,473)

Adjustments toreconcileconsolidated net lossto net cashprovided by operatingactivities:

Depreciation and 526 350 1,303 1,136amortization

Amortization of right 455 - 1,307 -of use assets

Gain on disposal ofproperty, plant and - - - (15)equipment

Share-based (372) 147 730 395compensation expenses

Unrealized exchange 16 916 (12) 992gain

Deferred income tax (766) - (1,281) -credit

Changes in assets andliabilities:

Increase in accounts (96) (171) (102) (570)receivable

Decrease (increase)in prepaid expenses (3,504) 599 2,738 (43)and other receivables

Increase in deposit (10) - (188) -

Increase in property (5,045) - (107,857) -under development

Increase (decrease)in accrued expenses 3,482 1,655 (2,003) 1,312and other payables

Decrease in accounts 825 - 239 -payable

Decrease in lease (248) - (1,099) -liabilities

Increase in advance 26,128 34,194 54,370 55,293from customers

Increase in rentaldeposits from 503 40 973 526customers

Increase in financing 7 - 7 -lease payable

Total adjustments $ 21,901 $ 37,730 $ (50,875) $ 59,026

Net cash provided by(used in) operating $ 17,051 $ 31,400 $ (62,685) $ 47,553activities

CASH FLOWS FROMINVESTING ACTIVITIES

Payment for realestate properties (29,315) (67,869) (40,860) (95,216)under development

Purchase of property, (280) (184) (677) (576)plant & equipment

Proceeds fromdisposal of property, - - - 68plant and equipment

Redemption of - - - 7,580marketable securities

Decrease inshort-term - 1,723 2,166 39,372investments

Net cash usedin investing $ (29,595) $ (66,330) $ (39,371) $ (48,772)activities

CASH FLOWS FROMFINANCING ACTIVITIES

Interest paid - (41) - (41)

Repayment for bank (30,362) - (38,497) -loan

Proceeds from bank 34,971 7,072 73,245 7,072loan

Proceeds from sharesissued for option 1,744 1,293 3,793 1,453exercise

Net cash provided by $ 6,353 $ 8,324 $ 38,541 $ 8,484financing activities

Net (decrease)increase in cash, $ (6,191) $ (26,606) $ (63,515) $ 7,265cash equivalents andrestricted cash

Cash, cashequivalents and 69,225 96,259 130,218 62,919restricted cash atbeginning of period

Effect of exchangerate changes on cash, 11,016 (2,729) 7,347 (3,260)cash equivalents andrestricted cash

Cash, cashequivalents and $ 74,050 $ 66,924 $ 74,050 $ 66,924restricted cash atend of period

SUPPLEMENTARYINFORMATION ON CASHFLOWS

Cash and cash $ 72,075 $ 66,924 $ 72,075 $ 66,924equivalents

Restricted cash $ 1,975 $ - $ 1,975 $ -

NAM TAI PROPERTY INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIODS ENDED SEPTEMBER 30, 2020 AND 2019

(In Thousands of US dollars)

1. These financial statements, including the consolidated balance sheetas of December 31, 2019, which was derived from audited financialstatements, do not include all of the information and notes required by U.S.Generally Accepted Accounting Principles for completefinancial statements and should be read in conjunction with the consolidatedfinancial statements and accompanying notes included in theCompany's annual report on Form 20-F for the fiscal year ended December 31,2019.

2. In the opinion of management, all adjustments (consisting of normal,recurring adjustments) considered necessary for a fair presentationhave been included. Operating results for the interim periods presented are notnecessarily indicative of the results that may be expectedfor the full year ending December 31, 2020.

3. Accumulated other comprehensive loss represents foreign currencytranslation adjustments. The consolidated comprehensive income was$1.8 million for the third quarter ended September 30, 2020, and theconsolidated comprehensive loss was $10.6 million for the thirdquarter ended September 30, 2019, and was $7.7 million and $15.7 million forthe nine months ended September 30, 2020 and 2019,respectively.

4. A summary of the operating income, other (expenses) income, net lossfrom operations and long-lived assets by geographical areas is asfollows:

Three months ended Nine months ended September 30, September 30,

2020 2019 2020 2019

OPERATING INCOMEWITHIN:

-PRC, excluding Hong $ 1,067 $ 788 $ 2,609 $ 2,126Kong

OTHER (EXPENSES)INCOME, NET:

- Gain (loss) on $ (16) $ (916) $ 12 $ (992)exchange difference

- Others 59 114 (28) 172

Total other (expenses) $ 43 $ (802) $ (16) $ (820)income, net

NET LOSS FROMOPERATIONS WITHIN:

- PRC, excluding Hong $ (2,970) $ (4,606) $ (7,243) $ (7,959)Kong

- Hong Kong (1,880) (1,724) (4,567) (3,514)

Total net loss $ (4,850) $ (6,330) $ (11,810) $ (11,473)

September 30, December 31, 2020 2019

LONG-LIVED ASSETS WITHIN:

- Real estate properties under development inPRC, excluding $ 385,227 $ 251,685 Hong Kong

- Property, plant and equipment in PRC,excluding Hong 25,563 25,624 Kong

- Hong Kong 216 326

- Assets held for lease in PRC, excluding Hong 30,375 - Kong

- Right of use assets in PRC, excluding Hong 9,319 3,597 Kong

- Hong Kong 261 481

Total long-lived assets $ 450,961 $ 281,713

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SOURCE Nam Tai Property Inc.