BEIJING, Nov. 8, 2013 /PRNewswire/ -- Xinyuan
Real Estate Co., Ltd. ("Xinyuan" or "the Company") (NYSE: XIN), a
residential real estate developer with a primary focus on high
growth cities in China, today
announced its unaudited financial results for the third quarter of
2013.
Highlights for the Third Quarter 2013
- Total third quarter revenues were US$240.7 million, a 21.3% increase from
US$198.5 million recorded in the
second quarter of 2013 and a 6.5% increase from US$226.1 million reported in the third quarter of
2012. Third quarter revenue exceeded the previous guidance of
US$215.0 million by 12.0%.
- Contract sales totaled US$243.7million, a 24.3% increase from
US$196.0 million recorded in the
second quarter of 2013 and a 6.0% increase from US$229.8 million recorded in the third quarter of
2012. Third quarter contract sales exceeded previous guidance of
US$210.0 million by 16.0%.
- Total gross floor area ("GFA") sales were 151,900 square
meters, a 3.2% increase from 147,200 square meters sold in the
second quarter of 2013, and an 11.0% decrease from 170,700 square
meters sold in the third quarter of 2012.
- Selling, General, and Administrative ("SG&A") expenses as a
percent of total revenue totaled 9.6% compared to 7.4% in the
second quarter of 2013 and 6.6% in the third quarter of 2012.
- Net income was US$28.7 million, a
27.2% decrease from US$39.4 million
in the second quarter of 2013 and a 10.0% decrease from
US$31.9million reported in the third
quarter of 2012.
- Diluted net earnings per American Depositary Share ("ADS")
attributable to shareholders were US$0.39, compared to diluted net earnings per ADS
of US$0.54 in the second quarter of
2013 and US$0.44 per ADS in the third
quarter of 2012.
- Cash and cash equivalents, including restricted cash, decreased
by US$78.7 million from US$874.7 million as of June 30, 2013 to US$796.0
million as of September 30,
2013. Short and long term debt increased by US$4.9 million from US$510.7 million as of June 30, 2013 to US$515.6
million as of September 30,
2013.
- Book value was US$11.55 per ADS,
as of September 30, 2013.
- The Board of Directors of the Company has approved the payment
of a quarterly dividend of US$0.05
per ADS payable on November 29, 2013
to shareholders of record as of November 18,
2013.
Mr. Yong Zhang, Xinyuan's
Chairman said, "The third quarter was exceptionally strong for
Xinyuan as we exceeded our quarterly revenue and contract sales
forecasts and came in at the high end of our range for our net
income forecast. These results were driven by solid
operational execution within our existing development projects,
including two new projects launched in the third quarter, and aided
by a robust housing market in the cities in which we operate."
"The past few months have been an eventful period for Xinyuan.
We've created a strong future revenue pipeline by adding five new
projects to our development portfolio in the last two months
alone. We also strengthened our management team through the
addition of industry veterans Xinqi
Wang as CEO and Kevin Wei as
CFO. These talented and highly experienced executives will
contribute significantly to Xinyuan's operational and financial
performance and help realize our full growth potential."
"During the third quarter, we received an investment of
US$108.6 million from TPG, one of the
world's leading private investment firms in the form of common
equity and convertible debt. These investment proceeds will assist
us in expanding our land portfolio and developing our internal
infrastructure and operational capabilities to drive future
growth. We look forward to a fruitful long term relationship
with our new investor TPG."
"Our Board recently approved the third quarterly cash dividend
payment for 2013 of $0.05 per ADS. As
we go forward, we are excited by our expansion opportunities and
continue to focus on increasing our growth and profit opportunities
for our shareholders."
Financial Results for the Third Quarter 2013
Contract Sales
Contract sales totaled US$243.7
million in the third quarter compared to US$196.0 million in the second quarter of 2013
and US$229.8 million in the third
quarter of 2012. The Company's GFA sales were 151,900 square meters
in the third quarter of 2013 versus 147,200 square meters in the
second quarter of 2013 and 170,700 square meters in the third
quarter of 2012. The average selling price ("ASP") per square meter
sold was RMB9,976 (US$1,604)in the third quarter of 2013 versus
RMB8,312 (US$1,332) in the second quarter of 2013 and
RMB8,505 (US$1,346) in the third quarter of 2012.
Two new projects became available for sale in the third quarter
of 2013, namely Suzhou XIN City with 127,000 square meters and
Zhengzhou XIN City with 186,000 square meters. Sales were brisk for
both projects and they contributed approximately 40.1% of XIN's GFA
sales in the quarter.
Breakdown of GFA Sales and ASP's by Project
|
|
|
|
|
|
|
|
|
Q3 2012
|
Q2 2013
|
Q3 2013
|
Unsold
|
|
GFA
|
ASP
|
GFA
|
ASP
|
GFA
|
ASP
|
GFA
|
Project
|
(m2
000)
|
(Rmb)
|
(m2
000)
|
(Rmb)
|
(m2
000)
|
(Rmb)
|
(m2
000)
|
Zhengzhou Royal
Palace
|
19.6
|
10,303
|
18.6
|
9,269
|
12.9
|
10,767
|
1.9
|
Zhengzhou Century
East A
|
-
|
-
|
27.2
|
10,451
|
13.7
|
10,708
|
4.5
|
Zhengzhou Century
East B
|
30.8
|
8,355
|
3.9
|
15,030
|
7.9
|
14,058
|
3.2
|
Zhengzhou Xin
City
|
-
|
-
|
-
|
-
|
31.6
|
9,587
|
154.3
|
Kunshan Intl City
Garden
|
41.7
|
7,851
|
3.8
|
9,378
|
4.5
|
11,419
|
12.3
|
Suzhou Xin
City
|
-
|
-
|
-
|
-
|
29.3
|
8,160
|
97.2
|
Jinan Xinyuan
Splendid
|
43.6
|
7,956
|
91.0
|
7,062
|
48.5
|
10,021
|
159.7
|
Others
|
35.0
|
-
|
2.7
|
-
|
3.5
|
-
|
7.1
|
Total
|
170.7
|
8,505
|
147.2
|
8,312
|
151.9
|
9,976
|
440.2
|
Revenue
In the third quarter of 2013, the Company's total revenue was
US$240.7 million compared to
US$198.5 million in the second
quarter of 2013 and US$226.1 million
in the third quarter of 2012.
Gross Profit
Gross profit for the third quarter of 2013 was US$78.5 million, or 32.6% of revenue, compared to
a gross profit of US$69.9 million, or
35.2% of revenue, in the second quarter of 2013 and a gross profit
of US$65.5 million, or 29.0% of
revenue, in the third quarter of 2012.
The decrease of gross profit as a percentage of revenue compared
to last quarter was largely due to favorable project completion
settlements in the previous quarter that resulted in lower
costs.
Selling, General and Administrative Expenses
SG&A expenses were US$23.0
million for the third quarter of 2013 compared to
US$14.7 million for the second
quarter of 2013 and US$14.9 million
for the third quarter of 2012. As a percentage of total revenue,
SG&A expenses were 9.6% compared to 7.4% in the second quarter
of 2013 and 6.6% in the third quarter of 2012. The increase of
SG&A expenses as a percentage of revenue compared to previous
quarter was due to more employee hiring, performance and retention
bonuses and higher promotional spending on our two new project
launches.
Net Income
Net income for the third quarter of 2013 was US$28.7 million compared to US$39.4 million for the second quarter of 2013
and US$31.9 million for the same
period in 2012. Net margin was 11.9%, compared to 19.8% in the
second quarter of 2013 and 14.1% in the third quarter of
2012. Diluted earnings per ADS were US$0.39, compared to US$0.54 per ADS in the second quarter of 2013 and
to US$0.44 per ADS in the same period
in 2012.
Balance Sheet
As of September 30, 2013, the
Company reported US$796.0 million in
cash and cash equivalents (including restricted cash) compared to
US$874.7 million as of June 30, 2013 as a result of substantial land
purchases made in the quarter, which offset the net proceeds of the
TPG investment transaction. Total debt outstanding was US$515.6 million, an increase of US$4.9 million compared to US$510.7 million at the end of the second quarter
of 2013. The balance of the Company's real estate property under
development at the end of the third quarter was US$534.7 million compared to US$605.7 million at the end of the second quarter
of 2013.
Project Status
Below is a summary table of projects that were active and
available for sale in the third quarter of 2013.
|
GFA
|
Contract
Sales
|
Project
Cost %
Complete
|
(m2
000)
|
(US$
millions)
|
Project
|
Total
Active
Projects
|
Sold
to
date
|
Total
Active
Projects
|
Sales to
date
|
%
Sold
|
|
|
Zhengzhou Royal Palace
|
132.2
|
130.3
|
236.6
|
228.6
|
96.6%
|
84.0%
|
Zhengzhou Century East A
|
77.3
|
72.8
|
124.7
|
115.9
|
92.9%
|
88.0%
|
Zhengzhou Century
East B
|
166.5
|
163.3
|
242.3
|
235.5
|
97.2%
|
94.6%
|
Kunshan Intl City
Garden
|
497.9
|
485.6
|
602.3
|
580.9
|
96.5%
|
99.9%
|
Jinan Xinyuan
Splendid
|
565.2
|
405.5
|
773.4
|
545.2
|
70.5%
|
78.9%
|
Suzhou Xin
City
|
126.5
|
29.3
|
170.8
|
38.5
|
22.5%
|
15.5%
|
Zhengzhou Xin
City
|
185.9
|
31.6
|
306.6
|
48.7
|
15.9%
|
12.3%
|
Others remaining
GFA
|
7.1
|
|
|
|
|
|
Total
active projects
|
1,758.6
|
1,318.4
|
2,456.7
|
1,793.3
|
73.0%
|
82.4%
|
As of September 30, 2013, the
Company's total sellable GFA was approximately 1,581,100 square
meters for active projects and pre-revenue stage projects. Below is
a summary of all our planning stage projects:
|
Unsold
GFA
|
Pre
sales
Scheduled
|
(m2
000)
|
Xuzhou Colorful
City
|
117.5
|
Q4 2013
|
Beijing Xindo
Park
|
117.7
|
Q4 2013
|
Newly Acquired Kushan
Land
|
284.0
|
Q4 2013
|
Newly Acquired Erqi
Land
|
293.4
|
Q2 2014
|
Newly Acquired Suzhou
Land
|
171.9
|
Q2 2014
|
Newly Acquired
Xingyang Land
|
119.3
|
|
Newly Acquired New
York Land
|
37.1
|
|
Total projects
under planning
|
1,140.9
|
|
Total active
projects
|
440.2
|
|
Total all Xinyuan
projects
|
1,581.1
|
|
Fourth Quarter and Full Year 2013 Outlook
The Company expects fourth quarter contract sales to reach
approximately US$310 to US$320
million. Fourth quarter revenue is expected to total
US$255 to US$265 million while net
income is projected at US$20 to US$30
million.
With the addition of several new projects to the Company's
active project list during the fourth quarter, the Company has
raised its full year 2013 financial forecast.
Contract sales for the full year 2013 are now expected to reach
US$930 to US$940 million. Revenue
under the percentage of completion method is expected to reach
US$860 to US$870 million, while net
income is expected to exceed US$115
million for the year.
Conference Call Information
Xinyuan's management will host an earnings conference call at
7:30 am ET on November 8, 2013 to discuss third quarter 2013
results. Listeners may access the call by dialing 1-719-325-2308. A
webcast will also be available through the Company's investor
relations website at http://www.xyre.com. A replay of the call will
be available through November 15,
2013 by dialing 1-858-384-5517, access code: 9179858.
About Xinyuan Real Estate Co., Ltd.
Xinyuan Real Estate Co., Ltd. ("Xinyuan") (NYSE: XIN) is a
developer of large scale, high quality residential real estate
projects aimed at providing middle-income consumers with a
comfortable and convenient community lifestyle. In China, Xinyuan primarily focuses its
development projects in Tier II cities, including Hefei, Jinan,
Kunshan, Suzhou, Zhengzhou, Xuzhou
and Chengdu. The Company's U.S.
development arm, XIN Development Group International, Inc. ("XIN")
is a pioneer amongst Chinese real estate residential developers,
entering the US market in 2012. Xinyuan is the first real
estate developer from China to be
listed on the New York Stock Exchange. For more information, please
visit http://www.xyre.com.
Forward Looking Statements
Certain statements in this press release constitute
"forward-looking statements". These statements are made under the
"safe harbor" provisions of the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can
generally be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. Statements that are not
historical statements are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties
that could cause actual results to differ materially from those
projected or anticipated, including, but not limited to, our
ability to continue to implement our business model successfully;
our ability to secure adequate financing for our project
development; our ability to successfully sell or complete our
property projects under construction and planning; our ability to
enter into new geographic markets and expand our operations; the
marketing and sales ability of our third-party sales agents; the
performance of our third-party contractors; the impact of laws,
regulations and policies relating to real estate developers and the
real estate industry in China and,
to the extent we expand operations into other countries, such as
the U.S., the laws, regulations and policies of such countries; our
ability to obtain permits and licenses to carry on our business in
compliance with applicable laws and regulations; competition from
other real estate developers; the growth of the real estate
industry in China, particularly
Tier II and Tier III cities, and in our targeted areas in the U.S.;
fluctuations in general economic and business conditions in
China, and, to the extent we
expand operation into other countries, such as the U.S., the
general economic and business conditions in such countries; and
other risks outlined in our public filings with the Securities and
Exchange Commission, including our annual report on Form 20-F for
the year ended December 31,
2012. Except as required by law, we undertake no obligation
to update or review publicly any forward-looking statements,
whether as a result of new information, future events or otherwise,
after the date on which the statement is made.
Notes to Unaudited Financial Information
This release contains unaudited financial information which is
subject to year-end audit adjustments. Adjustments to the financial
statements may be identified when the audit work is completed,
which could result in significant differences between our audited
financial statements and this unaudited financial information.
For more information, please contact:
In China:
Mr. Kevin Wei
Chief Financial Officer
Tel: +86-10-8588-9278
Ms. Helen Zhang
Financial Controller
Tel: +86-10-8588-9255
Email: irmanager@xyre.com
ICR, LLC
In U.S.: +1-646-308-1472
In China: +86-10-6583-7511
Email: William.zima@icrinc.com
XINYUAN REAL
ESTATE CO., LTD. AND ITS SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(All US$ amounts
and number of shares data in thousands, except per share
data)
|
|
|
Three months
ended
|
|
September 30,
|
|
June
30,
|
|
September 30,
|
|
2013
|
|
2013
|
|
2012
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
Total
revenue
|
240,665
|
|
198,484
|
|
226,062
|
|
|
|
|
|
|
Total cost of
revenue
|
(162,152)
|
|
(128,598)
|
|
(160,576)
|
Gross
profit
|
78,513
|
|
69,886
|
|
65,486
|
|
|
|
|
|
|
Selling and
distribution expenses
|
(5,633)
|
|
(2,860)
|
|
(5,220)
|
General and
administrative expenses
|
(17,397)
|
|
(11,877)
|
|
(9,667)
|
|
|
|
|
|
|
Operating
income
|
55,483
|
|
55,149
|
|
50,599
|
|
|
|
|
|
|
Interest
income
|
4,085
|
|
2,877
|
|
2,827
|
Interest
expense
|
(5,608)
|
|
(4,844)
|
|
-
|
|
|
|
|
|
|
Income from
operations before income taxes
|
53,960
|
|
53,182
|
|
53,426
|
|
|
|
|
|
|
Income
taxes
|
(25,212)
|
|
(13,820)
|
|
(21,498)
|
|
|
|
|
|
|
Net
income
|
28,748
|
|
39,362
|
|
31,928
|
|
|
|
|
|
|
Net income attributable to Xinyuan Real Estate Co.,
Ltd.
shareholders
|
28,748
|
|
39,362
|
|
31,928
|
|
|
|
|
|
|
Earnings per
ADS:
|
|
|
|
|
|
Basic
|
0.40
|
|
0.55
|
|
0.44
|
Diluted
|
0.39
|
|
0.54
|
|
0.44
|
ADS used in
computation:
|
|
|
|
|
|
Basic
|
71,360
|
|
71,256
|
|
71,839
|
Diluted
|
73,480
|
|
72,242
|
|
72,076
|
|
|
|
|
|
|
|
XINYUAN REAL
ESTATE CO., LTD. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(All US$ amounts
and number of shares data in thousands, except per share
data)
|
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
2013
|
|
2012
|
|
(unaudited)
|
|
(unaudited)
|
Revenue
|
608,578
|
|
651,705
|
|
|
|
|
Cost of
revenue
|
(404,512)
|
|
(459,502)
|
Gross
profit
|
204,066
|
|
192,203
|
|
|
|
|
Selling
expenses
|
(11,281)
|
|
(13,517)
|
General and
administrative expenses
|
(38,848)
|
|
(29,134)
|
|
|
|
|
Operating
income
|
153,937
|
|
149,552
|
|
|
|
|
Interest
income
|
8,596
|
|
6,078
|
Interest
expense
|
(10,450)
|
|
-
|
|
|
|
|
Income from
operations before income taxes
|
152,083
|
|
155,630
|
|
|
|
|
Income
taxes
|
(57,357)
|
|
(31,091)
|
|
|
|
|
Net
income
|
94,726
|
|
124,539
|
Less: net income
attributable to non-controlling interest
|
-
|
|
1,110
|
|
|
|
|
Net income
attributable to shareholders
|
94,726
|
|
123,429
|
|
|
|
|
Earnings per
ADS:
|
|
|
|
Basic
|
1.33
|
|
1.70
|
Diluted
|
1.31
|
|
1.70
|
ADS used in
computation:
|
|
|
|
Basic
|
71,266
|
|
72,521
|
Diluted
|
72,344
|
|
72,750
|
XINYUAN REAL
ESTATE CO., LTD. AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(All US$ amounts
and number of shares data in thousands)
|
|
|
September 30,
|
|
June
30,
|
|
December
31,
|
|
|
2013
|
|
2013
|
|
2012
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
562,019
|
|
635,800
|
|
496,205
|
Restricted
cash
|
|
233,951
|
|
238,926
|
|
145,730
|
Accounts
receivable
|
|
17,297
|
|
2,312
|
|
3,076
|
Other
receivables
|
|
16,619
|
|
11,445
|
|
27,413
|
Other deposits and
prepayments
|
|
404,389
|
|
231,289
|
|
105,427
|
Advances to
suppliers
|
|
25,041
|
|
18,597
|
|
11,028
|
Real estate property
held for sale
|
|
5,394
|
|
6,498
|
|
11,191
|
Real estate property
development completed
|
|
34,214
|
|
4,780
|
|
3,158
|
Real estate property
under development
|
|
534,688
|
|
605,673
|
|
722,819
|
Other current
assets
|
|
198
|
|
-
|
|
295
|
|
|
|
|
|
|
|
Total current
assets
|
|
1,833,810
|
|
1,755,320
|
|
1,526,342
|
|
|
|
|
|
|
|
Real estate
properties held for lease, net
|
|
53,443
|
|
16,360
|
|
23,204
|
Property and
equipment, net
|
|
45,560
|
|
1,850
|
|
1,576
|
Restricted
deposit
|
|
11,418
|
|
11,362
|
|
11,169
|
Other long-term
investment
|
|
249
|
|
247
|
|
242
|
Deferred tax
asset
|
|
1,404
|
|
1,242
|
|
1,599
|
Deferred
charges
|
|
4,878
|
|
4,834
|
|
-
|
Other
assets
|
|
2,260
|
|
2,013
|
|
2,249
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
1,953,022
|
|
1,793,228
|
|
1,566,381
|
XINYUAN REAL
ESTATE CO., LTD. AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(All US$ amounts
and number of shares data in thousands)
|
|
|
|
September 30,
|
|
June
30,
|
|
December 31,
|
|
|
2013
|
|
2013
|
|
2012
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
LIABILITIES
AND
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
184,763
|
|
171,677
|
|
241,894
|
Short-term bank loans
and other debt
|
|
80,223
|
|
129,198
|
|
113,066
|
Customer
deposits
|
|
92,578
|
|
78,636
|
|
50,201
|
Income tax
payable
|
|
77,502
|
|
68,972
|
|
75,877
|
Deferred tax
liabilities
|
|
40,857
|
|
33,029
|
|
13,612
|
Other payables and
accrued liabilities
|
|
68,100
|
|
57,978
|
|
64,721
|
Payroll and welfare
payable
|
|
7,872
|
|
7,500
|
|
9,663
|
Current portion of
long-term bank loans and other debt
|
|
100,846
|
|
97,917
|
|
166,082
|
Current maturities of
capital lease obligations
|
|
2,723
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
655,464
|
|
644,907
|
|
735,116
|
|
|
|
|
|
|
|
Non- current
liabilities
|
|
|
|
|
|
|
Long-term bank
loans
|
|
58,796
|
|
83,554
|
|
35,000
|
Other long term
debt
|
|
275,761
|
|
200,000
|
|
-
|
Deferred tax
liabilities
|
|
8,253
|
|
6,733
|
|
5,885
|
Unrecognized tax
benefits
|
|
9,105
|
|
7,279
|
|
8,842
|
Capital lease
obligations, net of
current
maturities
|
|
28,619
|
|
-
|
|
-
|
TOTAL
LIABILITIES
|
|
1,035,998
|
|
942,473
|
|
784,843
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Common
shares
|
|
15
|
|
15
|
|
15
|
Treasury
shares
|
|
(3,086)
|
|
(19,434)
|
|
(13,667)
|
Additional paid-in
capital
|
|
533,647
|
|
513,904
|
|
511,964
|
Statutory
reserves
|
|
49,622
|
|
49,622
|
|
49,622
|
Retained
earnings
|
|
336,826
|
|
306,648
|
|
233,604
|
TOTAL
EQUITY
|
|
917,024
|
|
850,755
|
|
781,538
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND
SHAREHOLDERS'
EQUITY
|
|
1,953,022
|
|
1,793,228
|
|
1,566,381
|
SOURCE Xinyuan Real Estate Co., Ltd.