NAM TAI PROPERTY INC. Announces Q2 2021 Results

SHENZHEN, July 29, 2021

SUMMARY

All of our PRC lenders have demanded us to repay their respective outstanding loans immediately due to the significant uncertainty on share ownership and the potential changes in the Board of Directors of the Company. The Company has been in an ongoing dialogue with the lenders to appease them from taking further legal actions, while exploring other potential lenders for refinancing. In addition, the lenders have suspended fund withdrawal of some of our bank accounts in light of freezing orders issued by the relevant PRC courts regarding some lawsuits filed by our suppliers, resulting in a liquidity crunch in our operations. As a result, the Company is unable to meet the progress payment of our contractors and suppliers, causing delays in the construction in progress and disrupting the day-to-day operations. Further, some of our suppliers and contractors have also taken legal actions against the Company for the outstanding payments. In general, our suppliers and contractors have imposed more stringent payment terms, further exacerbating the liquidity of the Company. The Company has been operating in this challenging environment, while striving to meet the completion schedule of Nam Tai Inno Park and the commencement of pre-sale of Nam Tai • Longxi.

In the quarter ended June 30, 2021:

• Revenue was $9.5 million in the second quarter of 2021, an increase of $8.7 million year-on-year.
• Net loss from operations was $0.3 million in the second quarter of 2021, reduced from net loss from operations of $4.5 million in the second quarter of 2020.
• Consolidated net loss was $0.3 million in the second quarter of 2021, reduced from consolidated net loss from operations of $3.8 million in the second quarter of 2020.
• Real estate properties under development, net was $336.1 million as of June 30, 2021, an increase of $23.9 million from the end of 2020.
• Real estate properties held for lease, net was $124.5 million as of June 30, 2021, an increase of $32.3 million from the end of 2020.

In addition:

• The occupancy rate of Nam Tai Inno Park reached 59% by the end of the second quarter, an increase of 11% from the first quarter of 2021.
• Approximately 1,200 dormitory units of Nam Tai Inno Park have been delivered to our tenants as of June 30, 2021.
• The capping of the roof of Nam Tai Technology Center has been completed as of June 30, 2021.
• We have applied for the pre-sale of Nam Tai • Longxi. Subject to the approval of the local authority, the pre-sale is expected to commence in August 2021. The sales center and the show flats for the pre-sale have been opened since July 2021.

The following tables set forth key highlights of the financial information for the periods indicated: