Tai Property Q2 2025 swings to $13.7M profit
Tai Property Inc. reported a sharp turnaround in Q2 2025, with revenue rising to $14.2 million from $5.9 million a year earlier and consolidated net income improving to $13.7 million from a loss of $7.0 million.
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Rhea-AI Filing Summary
Tai Property Inc. reported a sharp turnaround in Q2 2025, with revenue rising to $14.2 million from $5.9 million a year earlier and consolidated net income improving to $13.7 million from a loss of $7.0 million. Operating profit reached $0.9 million, helped by higher sales at Nam Tai • Longxi and leasing income from Nam Tai Inno Park, plus $16.8 million in other net income. For the first half of 2025, net income was $8.5 million versus a loss of $16.9 million in 2024.
Cash and cash equivalents increased to $40.4 million as of June 30, 2025, up from $26.9 million at year-end, while the debt ratio fell to 59.6% from 62.0%. The Shenzhen portfolio had a leasable area of about 302,607 square meters with an overall occupancy rate of 73%. The company also describes ongoing and recently settled disputes related to the Nam Tai • Longxi project and updates on shareholder loans with IsZo and IAT.
Positive
- Return to profitability with strong growth: Q2 2025 consolidated net income reached $13.7 million versus a $7.0 million loss a year earlier, on revenue growth from $5.9 million to $14.2 million and positive operating income.
- Stronger balance sheet and liquidity: Cash and cash equivalents increased to $40.4 million from $26.9 million as of December 31, 2024, while the debt ratio improved to 59.6% from 62.0%, and shareholders’ equity rose to $185.1 million.
Negative
- Legal disputes around Nam Tai • Longxi: The company reports ongoing court proceedings and asset-freeze measures related to a general contractor claim assignment, though it is contesting the assignment and seeking asset substitutions.
- Complexities in property management and shareholder relations: A property services dispute at Nam Tai • Longxi required litigation, preservation orders, and later settlement steps, while discussions continue with IsZo over claimed expenses despite full repayment of the IsZo note’s principal and interest.
Insights
Strong Q2 profit driven by asset-related gains and higher property revenue, alongside ongoing legal and financing complexities.
Tai Property Inc. shows a notable swing to profitability. Q2 2025 revenue rose to $14.168 million from $5.910 million, and consolidated net income moved to $13.692 million from a loss of $6.995 million. Other net income of $16.797 million, including gains on asset disposals, was a major contributor, while operating income of $0.899 million reflects improving core performance.
Liquidity improved, with cash and cash equivalents increasing to $40.369 million as of June 30, 2025 from $26.861 million at year-end, and the debt ratio easing to 59.6% from 62.0%. Total shareholders’ equity rose to $185.104 million, helped by retained earnings and currency translation gains.
At the same time, the company reports disputes around the Nam Tai • Longxi project, including asset-freeze measures on certain units and a property services dispute that has moved toward settlement, as well as evolving shareholder loan arrangements with IsZo and IAT. Subsequent filings may provide further clarity on how recurring earnings trend once one-time gains normalize and how these legal and financing matters progress.
FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the Month of February 2026
Commission File Number 001-31583
NAM TAI PROPERTY INC.
(Translation of registrant’s name into English)
Nam Tai Property Inc.
No. 2 Namtai Road, Gushu Community, Xixiang Township
Baoan District, Shenzhen City, Guangdong Province
People’s Republic of China
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| NAM TAI PROPERTY INC. | ||||||
| Date: February 11, 2026 | By: | /s/ Bo Hu | ||||
| Name: Bo Hu | ||||||
| Title: Chief Executive Officer | ||||||
|
SECOND QUARTER NEWS RELEASE |
NAM TAI PROPERTY INC.
Reports Q2 2025 Results
Shenzhen, China – February 11, 2026 – Nam Tai Property Inc. (“Nam Tai” or the “Company”) (OTC Expert Market Symbol: NTPIF) today announced its unaudited results for the second quarter ended June 30, 2025.
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)
| Quarterly Results | Six Months Results | |||||||||||||||||||||||
| Q2 2025 | Q2 2024 | YoY(%)(a) | 6M 2025 | 6M 2024 | YoY(%)(a) | |||||||||||||||||||
| Revenue |
$ | 14,168 | $ | 5,910 | 139.7 | % | $ | 21,958 | $ | 11,746 | 86.9 | % | ||||||||||||
| Gross profit |
$ | 4,526 | $ | 3,129 | 44.6 | % | $ | 7,478 | $ | 5,882 | 27.1 | % | ||||||||||||
| Net income(loss) from operation |
$ | 899 | $ | (3,639 | ) | — | $ | (579 | ) | $ | (7,485 | ) | ||||||||||||
| % of revenue |
6.4 | % | (61.6 | )% | (2.6 | )% | (63.7 | )% | ||||||||||||||||
| per share (diluted) |
$ | 0.02 | $ | (0.06 | ) | — | $ | (0.01 | ) | $ | (0.13 | ) | — | |||||||||||
| Consolidated net income(loss) |
$ | 13,692 | $ | (6,995 | ) | — | $ | 8,468 | $ | (16,914 | ) | — | ||||||||||||
| % of revenue |
62.4 | % | (118.4 | )% | 38.6 | % | (144.0 | )% | ||||||||||||||||
| Basic earnings (loss) per share |
$ | 0.23 | $ | (0.12 | ) | — | $ | 0.14 | $ | (0.29 | ) | — | ||||||||||||
| Diluted earnings (loss) per share |
$ | 0.23 | $ | (0.12 | ) | — | $ | 0.14 | $ | (0.29 | ) | — | ||||||||||||
| Weighted average number of shares (’000) |
||||||||||||||||||||||||
| Basic |
58,644 | 58,349 | 58,644 | 58,360 | ||||||||||||||||||||
| Diluted |
58,644 | 58,349 | 58,644 | 58,360 | ||||||||||||||||||||
Notes:
| (a) | Percentage change is not applicable if either of the two periods contains a loss or no amount. |
| Financial Position | ||||||||||||
| As of June 30, | As of December 31, | As of June 30, | ||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| Cash and cash equivalents(a) |
$ | 40,369 | $ | 26,861 | $ | 7,830 | ||||||
| Short term investments(b) |
$ | — | $ | — | $ | 30,853 | ||||||
| Restricted cash |
$ | 5,052 | $ | 6,414 | $ | 98,721 | ||||||
| Real estate properties under development, net |
$ | 244,971 | $ | 244,101 | $ | 241,153 | ||||||
| Real estate properties held for lease, net |
$ | 133,888 | $ | 135,428 | $ | 140,142 | ||||||
| Property, plant and equipment, net(c) |
$ | 7,365 | $ | 16,256 | $ | 25,600 | ||||||
| Total assets |
$ | 458,669 | $ | 453,609 | $ | 572,740 | ||||||
| Current portion of amount due to shareholders |
$ | 18,732 | $ | — | $ | — | ||||||
| Short term bank and third party loans |
$ | 4,329 | $ | 7,649 | $ | 7,649 | ||||||
| Current portion of long term bank loans |
$ | 14,174 | $ | 27,860 | $ | 27,860 | ||||||
| Accounts payable |
$ | 34,953 | $ | 31,629 | $ | 29,517 | ||||||
| Advance from customers(c) |
$ | 1,620 | $ | 16,026 | $ | 4,559 | ||||||
| Long term bank loans |
$ | 122,846 | $ | 106,803 | $ | 115,688 | ||||||
| Amount due to shareholders |
$ | — | $ | 17,836 | $ | 16,972 | ||||||
| Total shareholders’ equity |
$ | 185,104 | $ | 172,332 | $ | 124,159 | ||||||
| Total number of common shares issued(’000) |
60,203 | 60,203 | 58,991 | |||||||||
Notes:
| (a) | Cash and cash equivalents include all cash balances and certificates of deposit having a maturity date of two months or less when purchased. |
| (b) | Short term investments include investments with original maturities of three months and less than 12 months and investments that are expected to be realized in cash in the next 12 months. the Company held no short-term investments related to the former Credit Suisse supply chain fund, compared with a balance of $30.8 million at March 31, 2024. The decrease was due to the fund’s full settlement and liquidation, and no related balances remained as of December 31, 2024 and March 31, 2025. |
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| (c) | Property, plant and equipment, net decreased by $8.9 million, from $16.3 million as of December 31, 2024 to $7.4 million as of June 30, 2025. Advance from customers decreased by $14.4 million in the six months of 2025 from $16.0 million as of December 31, 2024 to $1.6 million as of June 30, 2025. These decreases were mainly attributable to the closing of the sale of the Wuxi Property. |
SUPPLEMENTARY INFORMATION (UNAUDITED) IN THE SECOND QUARTER OF 2025
Key Highlights of Financial Position
| As of June 30, | As of December 31, | As of June 30, | ||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| Current ratio(a) |
1.00 | 0.92 | 0.80 | |||||||||
| Debt ratio(b) |
59.6 | % | 62.0 | % | 78.3 | % | ||||||
| Return on equity(c) |
4.7 | % | 19.7 | % | (13.6 | )% | ||||||
| Ratio of total liabilities to total equity |
1.48 | 1.63 | 3.61 | |||||||||
Notes:
| (a) | Current ratio is calculated with all current assets divided by all current liabilities. |
| (b) | Debt ratio is calculated with all total liabilities divided by total assets. |
| (c) | Return on equity is calculated with consolidated net income (loss) divided by average of total shareholders’ equity at beginning and end of the period. |
FINANCIAL RESULTS
Revenue
Revenue for the second quarter of 2025 was $14.2 million compared to $5.9 million in the second quarter of 2024. Revenue for the second quarter of 2025 mainly consisted of the sales of property income from Nam Tai • Longxi of $10.1 million, operating lease income of $3.6 million from Nam Tai Inno Park, operating lease income of $0.5 million from existing factory buildings located on the sites of Inno Valley and Wuxi. Revenue for the second quarter of 2024 mainly consisted of the operating lease income of $5.5 million from Nam Tai Inno Park, rental income of $0.4 million from existing factory buildings located on the sites of Inno Valley, Wuxi and the leased space at Nam Tai • Tang Xi Technology Park.
Gross Profit
Gross profit for the second quarter of 2025 was negative $4.5 million compared to $3.1 million in the second quarter of 2024. Gross profit for the second quarter of 2025 mainly consisted of revenue of $14.2 million, offset by cost of $9.6 million for the period. Gross profit for the second quarter of 2024 mainly consisted of revenue of $5.9 million, offset by rental cost of $2.8 million for the period.
General and administrative expenses
General and administrative expenses for the second quarter of 2025 was $2.0 million compared to $6.4 million in the second quarter of 2024. General and administrative expenses for the second quarter of 2025 mainly consisted of staff costs of $1.7 million, and office expenses of $0.3 million, PRC taxes and surcharges of $0.7 million, and return of land appreciation tax of $1.8 million, and professional service fees of $1 million. General and administrative expenses for the second quarter of 2024 mainly consisted of staff costs of $1.6 million, office expenses of $$0.4 million, PRC taxes and surcharges of $0.6 million, and professional service fees of $3.6 million.
Selling and marketing expenses
Selling and marketing expenses for the second quarter of 2025 was $1.6 million compared to $0.4 million in the second quarter of 2024. The selling and marketing expenses for the second quarter of 2025 mainly consisted of staff costs of $0.7 million, marketing and commission fees of $0.9 million. The selling and marketing expenses for the second quarter of 2024 mainly consisted of staff costs of $0.3 million, office expenses and marketing and commission fees of $0.1 million.
Net Income (Loss) from Operations
Net income from operations for the second quarter of 2025 was $0.9 million compared to net loss from operations of $3.6 million for the second quarter of 2024. Net income from operations for the second quarter of 2025 mainly consisted of gross profit of $4.5 million, general and administrative expenses of $2.0 million and selling and marketing expenses of $1.6 million. Net loss from operations for the second quarter of 2024 mainly consisted of general and administrative expenses of $6.4 million and selling and marketing expenses of $0.4 million, offset by gross profit of $3.1 million for the period.
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Consolidated Net Income (Loss)
Consolidated net income for the second quarter of 2025 was $13.7 million compared to consolidated net loss of $7.0 million in the second quarter of 2024. Consolidated net income for the second quarter of 2025 mainly consisted of net income from operations of $0.9 million and other net income of $16.8 million, offset by income tax expenses of $4 million. Consolidated net loss for the second quarter of 2024 mainly consisted of net loss from operations of $3.6 million and expenses tax expenses of $3.8 million, offset by other net income of $0.4 million.
Cash and Cash Equivalents
Cash and cash equivalents increased by $13.5 million in the six months of 2025 from $26.9 million as of December 31, 2024 to $40.4 million as of June 30, 2025. The increase was primarily attributable to net cash provided by investing activities of $15.7 million and operating activities of $0.7 million, offset by net cash used in financing activities of $1.6 million, an exchange rate effect of $2.7 million and the decrease in restricted cash of $1.4 million in the six months of 2025.
Restricted Cash
Restricted cash decreased by $1.3 million in the six months of 2025 from $6.4 million as of December 31, 2024 to $5.1 million as of June 30, 2025, As of June 30, 2025, restricted cash consisted of a deposit of $1.3 million pledged as security for bank loans of our sales-type lease customers, which will be released progressively as the loans are repaid, $2.2 million restricted pursuant to freezing orders issued by the relevant PRC courts in connection with lawsuits and $2.9 million subject to other restrictions.
Real Estate Properties under Development, Net
Real estate properties under development, net increased by $12.2 million in the six months of 2025 from $191.5 million as of December 31, 2024 to $203.7 million as of June 30, 2025, primarily attributable to the increase of $9.5 million for the construction investment of Nam Tai Technology Center.
Real estate properties held for sale
Real estate properties held for sale are stated at the lower of carrying amounts or fair value less selling costs. Real estate properties held for sale decreased by $11.3 million from $52.6 million as of December 31, 2024 to $41.3million as of June 30, 2024. The decrease was mainly due to the handover of sold units at Nam Tai • Longxi during the six months of 2025.
Real estate properties held for lease, net
Real estate properties held for lease, net are recorded at cost less accumulated depreciation. Real estate properties held for lease, net decreased by $1.5 million from $135.4 million as of December 31, 2024 to $133.9 million as of June 30, 2025, which was mainly due to depreciation during the first six months of 2025.
Accounts Payable
Accounts payable increased by $3.4 million in the six months of 2025 from $31.6 million as of December 31, 2024 to $35.0 million as of June 30, 2025. The increase was mainly due to the increase of project payable of $2.6 million and $1.5 million for Nam Tai Technology Center, which is a subsidiary of the Company, and decrease of project payable of $0.5 million and $0.2 million for Nam Tai Inno Park and Nam Tai • Longxi.
Current Portion of Long Term Bank Loans
The current portion of long term bank loans decreased by $13.7 million in the six months of 2025 from $27.9 million as of December 31, 2024 to $14.2 million as of June 30, 2025, primarily due to the reclassification of certain long-term bank loans that will mature within one year and loan repayments during the period.
Liquidity and Capital Resources
As of June 30, 2025, the Company had a total cash and cash equivalents of $40.4 million. As of December 31, 2024, the Company had a total cash and cash equivalents of $26.9 million.
BUSINESS OVERVIEW
Leasing and sales Progress
As of June 30, 2025, the Company had leasable area of approximately 302,607 square meters, all located in Shenzhen. As of June 30, 2025, the occupancy rate of our Shenzhen projects, including pre-leasing areas, was approximately 73%. The occupancy rate of Nam Tai Inno Park was 75%, a decrease of 2 percentage points from the quarter ended March 31, 2025.
3
In the second quarter of 2025, a total of 66 residential units of Nam Tai • Longxi were newly subscribed, compared with 55 residential units in the quarter ended March 31, 2025.
| Projects |
Leasable Area as of June 30, 2025 |
Leased Area as of June 30, 2025 |
Occupancy Rate | |||||||||
| Nam Tai Inno Park |
264,337 | 198,695 | 75 | % | ||||||||
| Nam Tai Inno Valley |
38,270 | 22,281 | 58 | % | ||||||||
| Total |
302,607 | 220,976 | 73 | % | ||||||||
Project Construction and Development Progress
| • | Nam Tai Technology Center is the Company’s second factory-turned-industrial-park redevelopment project, located in Baoan District, Shenzhen. Currently under construction, the project has a site area of 22,364 square meters and a total GFA of 194,595 square meters. It consists of three R&D office buildings and a combined dormitory and retail podium. |
| • | The construction of the project started in December 2019, but has been suspended for approximately two and a half years due to the shareholders’ dispute and related financial challenges. Under the current management, the construction of the project resumed in February 2025, and is expected to be completed in the first half of 2026. |
Real Estate Market Update
| • | In the second quarter of 2025, residential property market activity in Dongguan showed limited fluctuation. According to industry research and official statistics, transaction volume experienced a temporary improvement during parts of the quarter, supported by pricing adjustments and promotional activities. However, overall market sentiment remained cautious, and demand weakened again toward the later part of the quarter. Residential prices remained under downward pressure and continued to adjust in response to prevailing supply and demand conditions.. |
RECENT DEVELOPMENTS
Nam Tai • Longxi General Contractor Dispute
In July 2025, the Company received a notice from Shenzhen Guangshengda Construction Co., Ltd. (“Guangshengda”) regarding the assignment of claims for Nam Tai • Longxi project under its general construction contract to Shenzhen Weiyueda Mechanical & Electrical Installation Engineering Co., Ltd. (“Weiyueda”). The Company responded in August 2025, disputing and refusing to acknowledge the validity of such assignment. The Company believes the assignment is invalid due to, among other reasons, Guangshengda’s failure to fully perform its post-warranty maintenance obligations, which has led to customer complaints and potential group disputes; the ongoing and unresolved final project settlement process, which includes potential claims for liquidated damages against Guangshengda for project delays; and Guangshengda’s failure to issue the full amount of required invoices for the project.
In late August 2025, 54 residential units of the project were frozen by a court order following a pre-litigation asset preservation application filed by Weiyueda.
In September 2025, the Company filed a jurisdictional challenge, arguing that the case should be heard by a court in Shenzhen, which is currently under review by the court. The Company has also applied to substitute the frozen assets, specifically the pre-sold properties, with other unencumbered assets. Such an application has not been approved as the plaintiff, Weiyueda, objected.
In October 2025, Weiyueda’s legal counsel proposed a potential settlement involving the transfer of properties in lieu of cash payment. This proposal was reviewed by the Company but no agreement was reached.
In January 2026, the case held its initial hearing and remains under court review.
Nam Tai • Longxi Property Services Dispute
The Company is involved in litigation with Dongguan Kaisa Property Management Co., Ltd. (“Dongguan Kaisa Property”), the initial property management service provider for Nam Tai • Longxi project, which was substantially completed of construction in 2022.
In October 2024, as part of the abovementioned Settlement with Greater Sail Ltd. (“GSL”), the Company entered into a settlement agreement with Dongguan Kaisa Property to terminate the property management contract for Nam Tai • Longxi project and change the property management company with the assistance of Dongguan Kaisa Property. However, Dongguan Kaisa Property render such assistance or vacate the property management premises. However, Dongguan Kaisa Property did not vacate, and filed a lawsuit against the Company later in 2025.
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In August 2025, Dongguan Kaisa Property obtained a pre-litigation preservation order from the court, freezing two residential units of the Nam Tai • Longxi project and approximately RMB 0.16 million in the Company’s bank accounts. In October 2025, the Company obtained Dongguan Kaisa Property’s statement of claim, which seeks payment of approximately RMB 1.09 million in property management fees for vacant residential units and parking units from November 2024 to May 2025, plus fees of approximately RMB 2.2 million for vacant commercial units from September 2023 to May 2025, totaling approximately RMB 3.43 million, inclusive of late payment interest.
In November 2025, in response to Dongguan Kaisa Property’s actions, the Company initiated arbitration with the International Chamber of Commerce (“ICC”) against GSL and Kaisa.
On January 21, 2026, the Company and the Kaisa-affiliated parties executed a supplemental agreement to the Settlement. Pursuant to this supplemental agreement, the parties have submitted applications to withdraw the Dongguan litigation, to lift all related preservation measures, and to withdraw the ICC arbitration. Dongguan Kaisa Property has also undertaken that it will not pursue any claims for property management service fees incurred on or before December 31, 2025.
Dispute with IsZo
Since late 2024, IsZo Capital LP (“IsZo”) has made several demands against the Company related to, among other things, IsZo’s allegation that the Company owes it reimbursements for certain litigation and activism campaign costs. The Company has been engaged in discussions with IsZo regarding IsZo’s allegations. To date, IsZo has not filed any formal litigation action against the Company.
Shareholder loans with IsZo and IAT
On December 23, 2025, the Company and IAT Insurance Group, Inc. (“IAT”) entered into an amendment to the amended Original Promissory Note, which had a principal amount of $12 million and a maturity date of January 11, 2026. Based on the new amendment, beginning January 12, 2026, the maturity date will automatically extend for successive 90-day rollover periods unless IAT delivers at least 60 days’ prior written notice requiring repayment before the end of any such period. As of the amendment date, the outstanding principal balance of the IAT note was approximately $15.75 million, with accrued interest of approximately $47 thousand.
On January 9, 2026, the Company fully repaid the outstanding principal of $3 million and accrued interest of approximately $0.95 million under the IsZo note. IsZo has also claimed additional expenses of $0.95 million. The Company has requested supporting evidence for this claim but has not yet received a response as of the date of this filing.
5
OPERATING RESULTS
Project Portfolio—As of June 30, 2025
The following two stages are the principal stages for our properties:
| • | Properties Completed, comprising the properties held for sale and leasing for which the completion acceptance has been filed and the construction has been completed and the internal acceptance criteria are met. |
| • | Properties Under Development, comprising properties for which the foundation work construction permits have been obtained and Property that is under construction and has not yet obtained acceptance. |
| Nam Tai | Nam Tai Technology | Nam Tai | Nam Tai • | |||||||||||||
| Inno Park | Center | Inno Valley | Longxi | |||||||||||||
| Guangming District, | Baoan District, | Baoan District, | Machong Town, | |||||||||||||
| Shenzhen | Shenzhen | Shenzhen | Dongguan | |||||||||||||
| Residential and Commercial | ||||||||||||||||
| Type |
Industrial buildings and supporting dormitory buildings | Property | ||||||||||||||
| Site Area (sq. m.) |
103,739 | 22,364 | 26,313 | 33,763 | ||||||||||||
| Capacity GFA (sq.m.) |
265,139 | 139,746 | N/A | 84,408 | ||||||||||||
| Total GFA (sq. m.) |
331,701 | 194,595 | 41,927 | 114,520 | ||||||||||||
| Under Development (sq. m.) |
— | 194,595 | — | — | ||||||||||||
| Total GFA Completed (sq. m.) |
331,701 | — | 41,927 | 114,520 | ||||||||||||
| Interest attributable to us |
100% | 100% | 100% | 100% | ||||||||||||
6
FORWARD-LOOKING STATEMENTS AND FACTORS THAT COULD CAUSE OUR SHARE PRICE TO DECLINE
This announcement contains forward-looking statements about future expectations and plans, as well as other statements regarding matters that are not historical facts. These forward-looking statements include but are not limited to statements regarding the management’s belief that the Company would be able to meet its cash requirements for at least the 12 months following the issuance date of these consolidated financial information; the expected completion timeline of Nam Tai Technology Center, the Company’s ability to implement its lease-up program for Nam Tai Technology Center and secure relevant target tenants; the Company’s belief on the invalidity of Guangshengda’s assignment of claims for Nam Tai • Longxi project under its general construction contract, and statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company’s control. These factors include risks related to its currently contemplated strategy, competition, timing, increases in costs of materials, capital and financing needs, access to funding under the Company’s debt instruments and the timing thereof, the Company’s ability to refinance certain debt, its ability to sell certain assets, construction/development challenges or setbacks, its ability to hire and retain construction contractors and subcontractors, the Company’s ability to obtain materials and supplies necessary for construction of various projects, any unforeseen issues relating to construction, including environmental, weather, catastrophes, or other issues, the Company’s ability to add additional guaranteed power to certain of its projects, projected regional development, composition of potential tenants of development projects, development of asset light capabilities for internal or external use and monetization, judicial and regulatory challenges and/or delays, changes in economic policy, including in relation to trade and/or tariffs, anticipated savings or uses of funding from refinancings, changes in general economic conditions and other factors detailed from time to time in the Company’s filings with the SEC. The words “may”, “could”, “should”, “would”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “plan”, and similar expressions are intended to identify forward-looking statements. All forward-looking statements are based on information currently available to the Company and the Company does not undertake to update any forward-looking statement, whether written or oral, whether as a result of new information, future events or otherwise, except as may be required by applicable law or regulations.
ABOUT NAM TAI PROPERTY INC.
Nam Tai Property Inc., a Company incorporated in the British Virgin Islands (the “BVI”) and governed by BVI law, owns certain subsidiaries, which own and operate commercial real estate projects across the People’s Republic of China. Those subsidiaries currently maintain two industrial complex projects, with one in Guangming, Shenzhen and one in Bao’an, Shenzhen. Learn more about the Company, and the portfolio of properties held by certain of its subsidiaries by emailing our investor relations team or visiting Weibo: https://weibo.com/u/7755634761.
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NAM TAI PROPERTY INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED JUNE 30, 2025 AND 2024
(In Thousands of US dollars except share and per share data)
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenue |
$ | 14,168 | $ | 5,910 | $ | 21,958 | $ | 11,746 | ||||||||
| Cost of revenue |
(9,642) | (2,781) | (14,480) | (5,864) | ||||||||||||
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| Gross profit |
4,526 | 3,129 | 7,478 | 5,882 | ||||||||||||
| Expenses |
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| General and administrative expenses |
(2,032) | (6,411) | (5,909) | (12,583) | ||||||||||||
| Selling and marketing expenses |
(1,595) | (357) | (2,148) | (784) | ||||||||||||
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|||||||||
| Total operating expenses |
(3,627) | (6,768) | (8,057) | (13,367) | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income (loss) from operations |
899 | (3,639) | (579) | (7,485) | ||||||||||||
| Other income (expenses), net |
16,797 | 420 | 12,705 | (1,746) | ||||||||||||
| Interest income |
17 | 11 | 57 | 26 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income (loss) before income tax |
17,713 | (3,208) | 12,183 | (9,205) | ||||||||||||
| Income tax expense |
(4,021) | (3,787) | (3,715) | (7,709) | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Consolidated net income (loss) |
13,692 | (6,995) | 8,468 | (16,914) | ||||||||||||
| Functional currency translation adjustment |
2,879 | (974) | 2,153 | 15,581 | ||||||||||||
| Other comprehensive income (loss)(1) |
2,879 | (974) | 2,153 | 15,581 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Consolidated comprehensive income (loss) |
$ | 16,571 | $ | (7,969) | $ | 10,621 | $ | (1,333) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings (loss) Per Share |
||||||||||||||||
| Basic |
$ | 0.14 | $ | (0.29) | $ | 0.14 | $ | (0.29) | ||||||||
| Diluted |
$ | 0.14 | $ | (0.29) | $ | 0.14 | $ | (0.29) | ||||||||
| Weighted average number of shares (’000) |
||||||||||||||||
| Basic |
58,644 | 58,349 | 58,644 | 58,360 | ||||||||||||
| Diluted |
58,644 | 58,349 | 58,644 | 58,360 | ||||||||||||
Notes:
| (1) | Other comprehensive income (loss) was due to foreign exchange translation. |
8
NAM TAI PROPERTY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS AT JUNE 30, 2025 AND DECEMBER 31, 2024
(In Thousands of US dollars)
| June 30, 2025 |
December 31, 2024 |
|||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 40,369 | $ | 26,861 | ||||
| Restricted cash |
5,052 | 6,414 | ||||||
| Accounts receivable |
6,602 | 6,058 | ||||||
| Real estate properties held for sale |
41,297 | 52,552 | ||||||
| Prepaid expenses and other receivables |
16,125 | 14,492 | ||||||
|
|
|
|
|
|||||
| Total current assets |
$ | 109,445 | $ | 106,377 | ||||
|
|
|
|
|
|||||
| Rental deposits |
||||||||
| Real estate properties under development, net |
203,674 | 191,549 | ||||||
| Property, plant and equipment, net |
7,365 | 16,256 | ||||||
| Real estate properties held for lease, net |
133,888 | 135,428 | ||||||
| Deferred income tax assets |
2,404 | 2,114 | ||||||
| Other assets |
1,893 | 1,885 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 458,669 | $ | 453,609 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Short term bank and third party loans |
4,329 | 7,649 | ||||||
| Current portion of long term bank loans |
14,174 | 27,860 | ||||||
| Accounts payable |
34,953 | 31,629 | ||||||
| Rental deposits from customers |
2,094 | 2,465 | ||||||
| Accrued expenses and other payables |
23,826 | 22,152 | ||||||
| Advance from customers |
1,620 | 16,026 | ||||||
| Contract liabilities |
9,553 | 7,556 | ||||||
| Current portion of amount due to shareholders |
18,732 | — | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
$ | 109,281 | $ | 115,337 | ||||
|
|
|
|
|
|||||
| Long term bank loans |
122,846 | 106,803 | ||||||
| Long term rental deposits |
2,125 | 1,825 | ||||||
| Financing lease payable |
— | 4 | ||||||
| Other payable |
23,278 | 23,130 | ||||||
| Deferred income tax liabilities |
16,035 | 16,342 | ||||||
| Amount due to shareholders |
— | 17,836 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
$ | 273,565 | $ | 281,277 | ||||
|
|
|
|
|
|||||
| EQUITY |
||||||||
| Shareholders’ equity: |
||||||||
| Common shares |
$ | 602 | $ | 602 | ||||
| Additional paid-in capital |
321,193 | 320,389 | ||||||
| Accumulated deficit |
(128,606) | (138,421) | ||||||
| Accumulated other comprehensive loss (1) |
(8,085) | (10,238) | ||||||
|
|
|
|
|
|||||
| Total shareholders’ equity |
$ | 185,104 | $ | 172,332 | ||||
|
|
|
|
|
|||||
| Total liabilities and shareholders’ equity |
$ | 458,669 | $ | 453,609 | ||||
|
|
|
|
|
|||||
Notes:
| (1) | Accumulated other comprehensive loss was due to foreign exchange translation. |
9
NAM TAI PROPERTY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED JUNE 30, 2025 AND 2024
(In Thousands of US dollars)
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||||||||||
| Consolidated net income (loss) |
$ | 13,692 | $ | (6,995 | ) | $ | 8,468 | $ | (16,914 | ) | ||||||
| Adjustments to reconcile consolidated net loss to net cash provided by operating activities: |
||||||||||||||||
| Depreciation and amortization |
1,260 | 1,279 | 2,517 | 2,562 | ||||||||||||
| Amortization of right of use assets |
— | 66 | — | 132 | ||||||||||||
| Gain on disposal of property, plant and equipment |
(17,968 | ) | — | (17,593 | ) | — | ||||||||||
| Loss on lease termination |
— | (590 | ) | — | (1,180 | ) | ||||||||||
| Share-based compensation expenses |
340 | 1,560 | 803 | 3,120 | ||||||||||||
| Unrealized exchange (gain) loss |
237 | (136 | ) | 310 | (72 | ) | ||||||||||
| Deferred income taxes |
(310 | ) | 3,835 | (597 | ) | (8,754 | ) | |||||||||
| Interest paid |
(907 | ) | (1,060 | ) | (3,855 | ) | (2,089 | ) | ||||||||
| Increase in accounts receivable |
(182 | ) | 72 | (544 | ) | 23 | ||||||||||
| Changes in assets and liabilities: |
||||||||||||||||
| Prepaid expenses and other receivables |
(809 | ) | 2,206 | (1,641 | ) | (43 | ) | |||||||||
| Rental deposits paid out as leasee |
— | — | — | 1 | ||||||||||||
| Real estate properties under development |
(1,707 | ) | (407 | ) | (1,610 | ) | (242 | ) | ||||||||
| Accrued expenses and other payables |
5,628 | 2,681 | 7,028 | 12,625 | ||||||||||||
| Accounts payable |
2,565 | 244 | 3,324 | (3,458 | ) | |||||||||||
| Lease liabilities |
— | (1,957 | ) | — | (1,374 | ) | ||||||||||
| Advance from customers |
1,280 | 606 | 1,296 | (1,039 | ) | |||||||||||
| Rental deposits from customers |
(9 | ) | (12 | ) | (71 | ) | 95 | |||||||||
| Contract liabilities |
297 | 1,205 | 1,997 | (283 | ) | |||||||||||
| Amount due to shareholders |
456 | 411 | 896 | 813 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total adjustments |
$ | (9,829 | ) | $ | 10,003 | $ | (7,740 | ) | $ | 837 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash used in operating activities |
$ | 3,863 | $ | 3,008 | $ | 728 | $ | (16,077 | ) | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||||||||||
| Proceeds from disposal of property, plant and equipment |
15,702 | — | 15,702 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Decrease (increase) in short term investments |
— | (57 | ) | — | (57 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash provided by (used in) investing activities |
$ | 15,702 | $ | (57 | ) | $ | 15,702 | $ | (57 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||||||||||
| Repayment of bank and third party loans |
(12,550 | ) | (4,142 | ) | (77,877 | ) | (5,201 | ) | ||||||||
| Proceeds from bank and third party loans |
6,799 | 7,745 | 76,322 | 7,745 | ||||||||||||
| Increase (decrease) in finance lease payable |
— | — | (4 | ) | (6 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash (used in) provided by financing activities |
$ | (5,751 | ) | $ | 3,603 | $ | (1,559 | ) | $ | 2,538 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash |
$ | 13,814 | $ | 6,554 | $ | 14,871 | $ | (13,596 | ) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Cash and cash equivalents and restricted cash at beginning of period |
33,020 | 103,977 | 33,275 | 113,791 | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash |
(1,413 | ) | (3,980 | ) | (2,725 | ) | 6,356 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Cash and cash equivalents and restricted cash at end of period |
$ | 45,421 | $ | 106,551 | $ | 45,421 | $ | 106,551 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| SUPPLEMENTARY INFORMATION ON CASH FLOWS |
||||||||||||||||
| Cash and cash equivalents |
$ | 40,369 | $ | 7,830 | $ | 40,369 | $ | 7,830 | ||||||||
| Restricted cash |
$ | 5,052 | $ | 98,721 | $ | 5,052 | $ | 98,721 | ||||||||
10
NAM TAI PROPERTY INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED JUNE 30, 2025 AND 2024
(In Thousands of US dollars)
| 1. | These financial statements, including the consolidated balance sheet as of December 31, 2024, which was derived from audited financial statements, do not include all of the information and notes required by U.S. Generally Accepted Accounting Principles for complete financial statements and should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2024. |
| 2. | In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025. |
| 3. | Accumulated other comprehensive loss represents foreign currency translation adjustments. The consolidated comprehensive income was $16.6 million for the three months ended June 30, 2025 and the consolidated comprehensive loss was $10.6 million for the six months ended June 30, 2025. |
| 4. | A summary of operations income, net income (loss) and long-lived assets by geographical areas is as follows: |
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Operations income within: |
||||||||||||||||
| -PRC, excluding Hong Kong |
$ | 14,168 | $ | 5,910 | $ | 21,958 | $ | 11,746 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income (loss) within: |
||||||||||||||||
| - PRC, excluding Hong Kong |
$ | 15,239 | $ | (1,934 | ) | $ | 11,815 | $ | (6,534 | ) | ||||||
| - Hong Kong |
(1,547 | ) | (5,061 | ) | (3,347 | ) | (10,380 | ) | ||||||||
| Total net income (loss) |
$ | 13,692 | $ | (6,995 | ) | $ | 8,468 | $ | (16,914 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| Long-lived assets by geographical area: |
||||||||
| - Real estate properties under development in PRC, excluding Hong Kong |
$ | 203,674 | $ | 191,549 | ||||
| - Property, plant and equipment in PRC, excluding Hong Kong |
7,365 | 16,250 | ||||||
| - Hong Kong |
— | 6 | ||||||
| - Right of use assets in PRC, excluding Hong Kong |
133,888 | 135,428 | ||||||
| Total long-lived assets |
$ | 344,927 | $ | 343,233 | ||||
|
|
|
|
|
|||||
11