BEIJING, Aug. 15, 2018 /PRNewswire/ -- Xinyuan Real
Estate Co., Ltd. ("Xinyuan" or the "Company") (NYSE: XIN), an
NYSE-listed real estate developer and property manager primarily in
China and also in other countries,
today announced its unaudited financial results for the second
quarter ended June 30, 2018.
Second Quarter 2018 Highlights
- Under ASC 606, the Company expects to recognize revenue for
contracts executed starting from January 1,
2018, on an "over time" basis using costs incurred, an input
measure.
- Second quarter results reflect the adoption of ASC 606 and may
not be directly comparable to prior periods.
- The adoption of ASC 606 reduced second quarter reported
revenues and net income by $212.8
million and $29.2 million,
respectively.
- Contract sales decreased 13.4% to US$633.9 million from US$732.4 million in the second quarter of 2017
and increased 66.5% from US$380.7
million in the first quarter of 2018.
- Total revenue decreased 26.1% to US$360.6 million from US$488.2 million in the second quarter of 2017
and increased 107.1% from US$174.1
million in the first quarter of 2018.
- Gross profit increased 3.4% to US$111.6
million, or 30.9% of total revenue, from US$107.9 million, or 22.1% of total revenue, in
the second quarter of 2017 and increased 188.4% from US$38.7 million, or 22.2% of total revenue, in
the first quarter of 2018.
- Selling, General and Administrative ("SG&A") expenses as a
percentage of total revenue increased to 12.6% from 9.8% in the
second quarter of 2017 and decreased from 22.9% in the first
quarter of 2018.
- Net loss was US$9.1 million
compared to net income of US$20.8
million in the second quarter of 2017 and net loss of
US$12.7 million in the first quarter
of 2018. Exchange gains of $11.6
million in the first quarter of 2018 swung to exchange
losses in Q2 2018 as the RMB weakened against the US dollar.
- Diluted net loss per American Depositary Share ("ADS")
attributable to shareholders were US$0.11 compared to diluted net earnings per ADS
of US$0.14 in the second quarter of
2017 and net loss per ADS of US$0.16
in the first quarter of 2018.
Mr. Yong Zhang, Xinyuan's
Chairman, stated, "During the second quarter of 2018, our contract
sales experienced downward pressure because of tightened
regulations on China's property
market. Also, our revenue recognition was delayed due to ASC606
adoption. Despite these factors, we managed to double our revenue
and grow our contract sales by two-thirds since the first quarter
of 2018."
Mr. Zhang continued, "In the second quarter of 2018, we
continued to progress as planned with our domestic pre-sales and
overseas projects. We commenced pre-sales of three projects,
Zhengzhou International New City III D, Zhengzhou International New
City III B, and Zhengzhou Hangmei International Wisdom City I. We
were also able to expand our land bank with the strategic
acquisition of 6 pieces of land: Zhengzhou International New City,
Zhengzhou Hangmei International Wisdom City, Wuhan New Project,
Jinan Zhangqiu Project, Suzhou New Project, and Qingdao West Coast
Project. With an enlarged land bank, and an expanded global
footprint, we are well positioned for long-term growth.
"Despite persistent regulatory headwinds, we remain optimistic
about the financial outlook for the rest of the year. We are also
proud of our ability to deliver sustainable value to shareholders
via a consistent quarterly dividend payout." concluded Mr.
Zhang.
Second Quarter 2018 Financial
Results
Contract Sales
Contract sales in China totaled
US$630.3 million in the second
quarter compared to US$711.8 million
in the second quarter of 2017 and US$375.5
million in the first quarter of 2018.
The Company's GFA sales in China were 282,900 square meters in the second
quarter of 2018 compared to 409,700 square meters in the second
quarter of 2017 and 149,800 square meters in the first quarter of
2018.
The average selling price ("ASP") per square meter sold in
China was RMB14,173 (US$2,226) in the second quarter of 2018 compared
to RMB11,946 (US$1,739) in the second quarter of 2017 and
RMB15,932 (US$2,506) in the first quarter of 2018.
Contract sales in the United
States totaled US$3.6 million
in the second quarter of 2018.
The Company commenced pre-sales of three new projects in the
second quarter of 2018, Zhengzhou International New City III D,
Zhengzhou International New City III B and Zhengzhou Hangmei
International Wisdom City I, which contributed 34.3% and 31.3% of
total GFA sales and total contract sales, respectively.
Breakdown of GFA Sales and ASPs by Project in China
Project
|
Q2
2017
|
Q1
2018
|
Q2
2018
|
GFA
|
ASP
|
GFA
|
ASP
|
GFA
|
ASP
|
(m2
'000s)
|
(RMB)
|
(m2
'000s)
|
(RMB)
|
(m2
'000s)
|
(RMB)
|
Xingyang Splendid
II
|
15.4
|
5,265
|
-
|
-
|
0.3
|
9,939
|
Kunshan Royal
Palace
|
5.3
|
24,173
|
(0.2)
|
22,314
|
0.2
|
22,313
|
Jinan Royal
Palace
|
13.2
|
10,508
|
22.4
|
12,626
|
27.4
|
16,341
|
Xuzhou Colorful
City
|
2.8
|
13,385
|
3.6
|
10,265
|
0.8
|
10,495
|
Chengdu Thriving
Family
|
6.0
|
19,194
|
4.5
|
17,183
|
1.3
|
16,011
|
Changsha Xinyuan
Splendid
|
28.2
|
9,521
|
2.6
|
15,130
|
3.7
|
15,869
|
Sanya Yazhou Bay
No.1
|
8.1
|
15,888
|
30.9
|
23,197
|
12.0
|
25,758
|
Xi'an
Metropolitan
|
9.5
|
9,553
|
1.5
|
9,594
|
4.5
|
7,480
|
Zhengzhou Xindo
Park
|
22.9
|
6,998
|
0.1
|
10,000
|
0.4
|
7,560
|
Jinan Xin
Central
|
8.3
|
13,928
|
12.2
|
10,527
|
9.2
|
14,073
|
Henan Xin Central
I
|
3.4
|
16,229
|
0.3
|
18,486
|
1.0
|
15,342
|
Zhengzhou Fancy City
I
|
2.6
|
19,015
|
0.2
|
19,949
|
1.2
|
10,989
|
Zhengzhou Fancy City
II (South)
|
7.6
|
12,649
|
1.2
|
13,031
|
0.8
|
14,103
|
Tianjin Spring Royal
Palace I
|
11.0
|
11,118
|
1.1
|
14,631
|
0.1
|
16,294
|
Kunshan Xindo
Park
|
10.6
|
20,523
|
2.3
|
23,009
|
4.3
|
23,585
|
Zhengzhou
International New City I
|
207.4
|
12,084
|
2.4
|
13,322
|
6.0
|
25,102
|
Henan Xin Central
II
|
27.2
|
11,293
|
7.7
|
11,768
|
6.2
|
12,351
|
Xingyang Splendid
III
|
15.5
|
6,981
|
16.2
|
7,381
|
13.2
|
7,934
|
Changsha Mulian Royal
Palace
|
-
|
-
|
2.0
|
16,177
|
29.2
|
10,188
|
Zhengzhou
International New City II
|
-
|
-
|
11.8
|
13,739
|
1.7
|
13,671
|
Zhengzhou
International New City III A
|
-
|
-
|
20.4
|
13,802
|
1.2
|
13,611
|
Zhengzhou Fancy City
II (North)
|
-
|
-
|
2.3
|
9,813
|
35.3
|
9,801
|
Tianjin Spring Royal
Palace II
|
-
|
-
|
2.7
|
13,412
|
11.5
|
14,124
|
Zhengzhou
International New City III D
|
-
|
-
|
-
|
-
|
29.6
|
14,282
|
Zhengzhou Hangmei
International
Wisdom City I
|
-
|
-
|
-
|
-
|
16.2
|
7,195
|
Zhengzhou
International New City III B
|
-
|
-
|
-
|
-
|
51.3
|
13,996
|
Others
|
4.7
|
-
|
1.6
|
-
|
14.3
|
-
|
Total
|
409.7
|
11,946
|
149.8
|
15,932
|
282.9
|
14,173
|
Revenue
In the second quarter of 2018, the Company's total revenue
decreased 26.1% to US$360.6 million
from US$488.2 million in the second
quarter of 2017 and increased 107.1% from US$174.1 million in the first quarter of
2018.
Gross Profit
Gross profit for the second quarter of 2018 was US$111.6 million, or 30.9% of revenue, compared
to a gross profit of US$107.9
million, or 22.1% of revenue, in the second quarter of 2017
and a gross profit of US$38.7
million, or 22.2% of revenue, in the first quarter of
2018.
Selling, General and Administrative Expenses
SG&A expenses were US$45.6
million for the second quarter of 2018 compared to
US$47.9 million for the second
quarter of 2017 and US$39.8 million
for the first quarter of 2018. As a percentage of total revenue,
SG&A expenses were 12.6% compared to 9.8% in the second quarter
of 2017 and 22.9% in the first quarter of 2018.
Net Income/(loss)
The Company experienced a net loss in the second quarter of 2018
due to the decrease of revenue, foreign currency exchange loss, and
interest expenses. Net loss for the second quarter of 2018 was
US$9.1 million compared to net income
of US$20.8 million for the second
quarter of 2017 and net loss of US$12.7
million for the first quarter of 2018. Net margin decreased
from 4.3% in the second quarter of 2017 and increased from negative
7.3% in the first quarter of 2018 to negative 2.5% for the second
quarter of 2018. Diluted net loss was US$0.11 per ADS in the second quarter of 2018
compared to diluted net earnings of US$0.14 per ADS in the second quarter of 2017 and
diluted net loss of US$0.16 per ADS
in the first quarter of 2018.
Balance Sheet
As of June 30, 2018, the Company's
cash and cash equivalents (including restricted cash) increased to
US$1,450.8 million from US$1,191.8 million as of March 31, 2018. Total debt outstanding was
US$3,585.5 million, which reflected a
decrease of US$228.7 million compared
to US$3,814.2 million at the end of
the first quarter of 2018. The balance of the Company's real estate
properties under development at the end of the second quarter of
2018 was US$3,707.3 million compared
to US$3,457.1 million at the end of
the first quarter of 2018.
Adoption of ASC606
On January 1, 2018, the Company
adopted ASC 606: Revenue from Contracts with Customers ("ASC 606")
issued by the Financial Accounting Standards Board. The Company
adopted ASC 606 using the modified retrospective approach and
applied the adoption only to contracts not completed as of the date
of adoption, with no restatement of comparative periods, and a
cumulative-effect adjustment to retained earnings recognized as of
the date of adoption.
The following tables show the actual annual 2017 operating
results and the annual 2017 operating results if the Company had
adopted ASC 606 on January 1,
2017.
2017 Financial Results Prior to ASC 606
|
2017
Total
|
2017
Q1
|
2017
Q2
|
2017
Q3
|
2017
Q4
|
USD'000
|
USD'000
|
USD'000
|
USD'000
|
USD'000
|
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Contract
Sales
|
2,465,663
|
305,382
|
732,476
|
604,520
|
823,285
|
1.
Revenue
|
1,976,907
|
280,714
|
488,165
|
482,373
|
725,655
|
Gross
Profit
|
459,628
|
62,567
|
107,922
|
108,842
|
180,297
|
Gross Profit
Margin
|
23.2%
|
22.3%
|
22.1%
|
22.6%
|
24.8%
|
SG&A
|
212,568
|
35,505
|
47,894
|
50,976
|
78,193
|
Interest
Expense
|
66,153
|
9,325
|
20,195
|
11,418
|
25,215
|
2. Profit Before
Income Taxes
|
193,228
|
22,042
|
46,678
|
38,895
|
85,613
|
Income
Taxes
|
113,117
|
14,625
|
25,901
|
22,366
|
50,225
|
3. Net
Profit
|
80,111
|
7,417
|
20,777
|
16,529
|
35,388
|
2017 Financial Results Adjusted for ASC 606 Adoption
|
2017
Total
|
2017
Q1
|
2017
Q2
|
2017
Q3
|
2017
Q4
|
USD'000
|
USD'000
|
USD'000
|
USD'000
|
USD'000
|
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
Contract
Sales
|
2,465,663
|
305,382
|
732,476
|
604,520
|
823,285
|
1.
Revenue
|
1,584,038
|
354,572
|
184,834
|
247,499
|
797,133
|
Gross
Profit
|
346,635
|
70,098
|
31,576
|
49,599
|
195,362
|
Gross Profit
Margin
|
21.9%
|
19.8%
|
17.1%
|
20.0%
|
24.5%
|
SG&A
|
212,568
|
35,505
|
47,894
|
50,976
|
78,193
|
Interest
Expense
|
66,153
|
9,325
|
20,195
|
11,418
|
25,215
|
2. Profit Before
Income Taxes
|
80,235
|
29,573
|
(29,669)
|
(20,347)
|
100,678
|
Income
Taxes
|
75,653
|
19,295
|
890
|
7,991
|
47,477
|
3. Net
Profit
|
4,582
|
10,278
|
(30,559)
|
(28,338)
|
53,201
|
Real Estate Project Status in China
Below is a summary table of projects that were active and
available for sale in the second quarter of 2018.
Project
|
GFA
|
(m2
'000s)
|
Total
Active
Project
|
Sold to
date
|
Unsold
to date
|
Xingyang Splendid
II
|
137.3
|
81.7
|
55.6
|
Kunshan Royal
Palace
|
280.6
|
278.9
|
1.7
|
Jinan Royal
Palace
|
449.5
|
399.9
|
49.6
|
Xuzhou Colorful
City
|
130.7
|
119.7
|
11.0
|
Chengdu Thriving
Family
|
203.4
|
197.0
|
6.4
|
Changsha Xinyuan
Splendid
|
251.7
|
245.1
|
6.6
|
Sanya Yazhou Bay
No.1
|
117.6
|
101.4
|
16.2
|
Xi'an
Metropolitan
|
290.6
|
265.5
|
25.1
|
Zhengzhou Xindo
Park
|
144.4
|
127.8
|
16.6
|
Jinan Xin
Central
|
194.4
|
178.4
|
16.0
|
Henan Xin Central
I
|
262.2
|
252.1
|
10.1
|
Zhengzhou Fancy City
I
|
166.7
|
159.9
|
6.8
|
Tianjin Spring Royal
Palace I
|
139.2
|
131.0
|
8.2
|
Zhengzhou Fancy City
II (South)
|
84.1
|
81.5
|
2.6
|
Kunshan Xindo
Park
|
89.0
|
80.4
|
8.6
|
Zhengzhou
International New City I
|
360.5
|
335.9
|
24.6
|
Henan Xin Central
II
|
109.8
|
103.6
|
6.2
|
Xingyang Splendid
III
|
121.1
|
112.0
|
9.1
|
Changsha Mulian Royal
Palace
|
91.1
|
85.7
|
5.4
|
Zhengzhou
International New City II
|
176.0
|
159.2
|
16.8
|
Zhengzhou
International New City III A
|
96.0
|
95.4
|
0.6
|
Zhengzhou Fancy City
II (North)
|
108.5
|
77.2
|
31.3
|
Tianjin Spring Royal
Palace II
|
144.0
|
14.1
|
129.9
|
Zhengzhou
International New City III D
|
46.1
|
29.7
|
16.4
|
Zhengzhou Hangmei
International Wisdom City I
|
64.7
|
16.1
|
48.6
|
Zhengzhou
International New City III B
|
118.8
|
51.3
|
67.5
|
Others
|
66.8
|
-
|
66.8
|
Total active
projects
|
4,444.8
|
3,780.5
|
664.3
|
As of August 10, 2018, the
Company's total saleable GFA was approximately 5,992,900 square
meters for active projects and under planning stage projects in
China. Below is a summary of all
of the Company's planning stage projects:
|
Unsold
GFA
(m2
'000s)
|
Pre-sales
Scheduled
|
|
Tongzhou Xinyuan
Royal Palace
|
102.3
|
To be
determined
|
Changsha Furong
Thriving Family
|
72.3
|
2018Q3
|
Xinyuan Chang'an
Royal Palace
|
226.0
|
To be
determined
|
Xinyuan Golden Water
View City
|
340.0
|
2018Q4
|
Kunshan Xinyu
Jiayuan
|
109.3
|
2018Q3
|
Zhengzhou
International New City Land Bank (all land is grouped together
and will be developed gradually)
|
1,689.5
|
2018Q4
|
Zhuhai Xin
World
|
70.0
|
To be
determined
|
Lingshan Bay Dragon
Seal
|
380.0
|
To be
determined
|
Zhengzhou Fancy City
III
|
83.0
|
2018Q4
|
Zhengzhou Hangmei
Project Land Bank (all land is grouped together and
will be developed gradually)
|
268.5
|
2018Q3
|
Zhengzhou Zhongmou
Project
|
480.0
|
To be
determined
|
Suzhou Yinhewan
Project
|
89.7
|
2018Q4
|
Suzhou Wujiang New
City
|
63.0
|
2018Q3
|
Chengdu Xinyuan
City
|
873.0
|
2018Q3
|
Wuhan New
Project(newly added)
|
185.0
|
To be
determined
|
Jinan Zhangqiu
Project(newly added)
|
118.0
|
To be
determined
|
Suzhou New
Project(newly added)
|
24.0
|
2018Q4
|
Qingdao West Coast
Project(newly added)
|
155.0
|
2018Q4
|
Total projects
under planning
|
5,328.6
|
|
Total active
projects
|
664.3
|
|
Total of all
Xinyuan unsold projects in China
|
5,992.9
|
|
Real Estate Project Update in the
United States
As of June 30, 2018, a total of
176 units out of 216 units had been sold and closed at the
Company's Oosten project in Brooklyn, New
York City, with a total revenue from this project reaching
US$259.3 million. During the first
half of 2018, revenues were US$8.8
million.
Excavation and foundation work was completed in the first half
of 2018 for the Company's Hudson
Garden project in the Hell's Kitchen area of Manhattan, New York City. The design drawings
were optimized, increasing the number of units from 82 to 92. Of
the 38,000 SF of retail/commercial space a total of 29,000 SF has
been leased to the U.S. department store retailer Target with a
20-year lease. The shell of the building is scheduled to begin in
September 2018, with facade, core
mechanical, and electrical installations to follow. Soft launch of
sales is scheduled to begin in the last quarter of 2018.
The Company continues to execute on the planning, governmental
approvals, and pre-development activities of its ground-up project
in Flushing, New York City. The
Landmark Protection Committee approved the Company's landmark
protection plan and awarded the Company a Certificate of
Appropriateness. The Company has begun the protection, master
molds, and removal of landmarked artifacts and will transfer them
in the third quarter of 2018. Offsite restoration work will follow
at a later date.
Real Estate Project Update in the United
Kingdom
During the second quarter of 2018, the structural core of
the Madison project has been constructed up to the 23rd floor out
of a total 53 floors. Construction remains on programmed for
completion in 2020.
Of the 423 residential units in The Madison, all of the 104
Affordable Housing apartments have been pre-sold to a regulated
affordable housing provider. Of the remaining 319 apartments, 130
apartments have been sold. UK inquiry levels remained robust during
the period despite ongoing political uncertainty caused
by Brexit and the transition into the typically
quieter summer sales season.
Business Outlook
The 2018 business outlook reflects the modified retrospective
adoption of ASC 606 and may not be comparable to prior year
periods.
For the third quarter of 2018, the Company expects contract
sales to be approximately US$540
million.
For 2018, the Company expects an increase in contract sales of
about 10% and an increase in consolidated net income of 15% to 20%
over 2017.
Conference Call Information
The Company will hold a conference call at 8:00 am ET on August 15,
2018 to discuss second quarter 2018 results. Listeners may
access the call by dialing:
US Toll Free: 1-866-575-6539
International: 1-323-994-2082
A webcast will also be available through the Company's investor
relations website at http://ir.xyre.com.
A replay of the call will be available through August 22, 2018 by dialing:
US: 1-844-512-2921
International: 1-412-317-6671
Access code: 3902086
About Xinyuan Real Estate Co., Ltd.
Xinyuan Real Estate Co., Ltd. ("Xinyuan") is an NYSE-listed real
estate developer and property manager primarily in China and recently in other countries. In
China, Xinyuan develops and
manages large scale, high quality real estate projects in over ten
tier one and tier two cities, including Beijing, Shanghai, Zhengzhou, Jinan, Xi'an,
Suzhou, among others. Xinyuan was one of the first Chinese real
estate developers to enter the U.S. market and over the past few
years has been active in real estate development in New York. Xinyuan aims to provide comfortable
and convenient real estate related products and services to
middle-class consumers. 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 includes
statements about estimated financial performance and sales
performance and activity, among others, and 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 successfully into new geographic
markets and new business lines 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 the countries in which we operate; 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 the markets in which we operate; fluctuations in
general economic and business conditions in the markets in which we
operate; 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,
2017. 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:
Xinyuan Real Estate Co., Ltd.
Mr. Charles Wang
Investor Relations Director
Tel: +86 (10) 8588-9376
Email: irteam@xyre.com
ICR, LLC
In U.S.: +1-646-308-1472
Email: William.zima@icrinc.com
Media:
Edmond Lococo
In China: +86 (10) 6583-7510
Email: Edmond.Lococo@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
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
2018
|
|
2018
|
|
2017
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
360,569
|
|
|
174,097
|
|
|
488,165
|
|
|
|
|
|
|
|
|
|
Total costs of
revenue
|
|
(248,921)
|
|
|
(135,394)
|
|
|
(380,242)
|
Gross
profit
|
|
111,648
|
|
|
38,703
|
|
|
107,923
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
(13,819)
|
|
|
(12,174)
|
|
|
(18,072)
|
General and
administrative expenses
|
|
(31,773)
|
|
|
(27,592)
|
|
|
(29,823)
|
|
|
|
|
|
|
|
|
|
Operating
income/(loss)
|
|
66,056
|
|
|
(1,063)
|
|
|
60,028
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
6,678
|
|
|
6,350
|
|
|
4,375
|
Interest
expense
|
|
(26,592)
|
|
|
(29,785)
|
|
|
(20,195)
|
Net realized gain on
short-term investments
|
|
2
|
|
|
1,237
|
|
|
2,257
|
Unrealized
(loss)/gains on short-term investments
|
|
(700)
|
|
|
(242)
|
|
|
524
|
Other
(expense)/income
|
|
(1,037)
|
|
|
207
|
|
|
-
|
Exchange
(loss)/gains
|
|
(21,374)
|
|
|
11,639
|
|
|
(46)
|
Share of loss of
equity investees
|
|
(3,227)
|
|
|
(921)
|
|
|
(265)
|
|
|
|
|
|
|
|
|
|
Income/(loss) from
operations before income taxes
|
|
19,806
|
|
|
(12,578)
|
|
|
46,678
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
(28,952)
|
|
|
(142)
|
|
|
(25,901)
|
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
|
(9,146)
|
|
|
(12,720)
|
|
|
20,777
|
Net (loss)/ income
attributable to non-controlling interest
|
|
2,207
|
|
|
2,315
|
|
|
(11,698)
|
Net (loss)/income
attributable to Xinyuan Real Estate Co., Ltd.
shareholders
|
|
(6,939)
|
|
|
(10,405)
|
|
|
9,079
|
|
|
|
|
|
|
|
|
|
(Loss)/earnings per
ADS:
|
|
|
|
|
|
|
|
|
Basic
|
|
(0.11)
|
|
|
(0.16)
|
|
|
0.14
|
Diluted
|
|
(0.11)
|
|
|
(0.16)
|
|
|
0.14
|
ADS used in
computation:
|
|
|
|
|
|
|
|
|
Basic
|
|
64,921
|
|
|
64,821
|
|
|
64,324
|
Diluted
|
|
65,816
|
|
|
65,805
|
|
|
65,622
|
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)
|
|
|
|
|
|
Six months
ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2018
|
|
2017
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
|
534,666
|
|
|
768,878
|
|
|
|
|
|
|
|
|
Total costs of
revenue
|
|
|
|
(384,314)
|
|
|
(598,389)
|
Gross
profit
|
|
|
|
150,352
|
|
|
170,489
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
|
|
(25,993)
|
|
|
(28,559)
|
General and
administrative expenses
|
|
|
|
(59,365)
|
|
|
(54,840)
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
|
64,994
|
|
|
87,090
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
|
13,027
|
|
|
6,974
|
Interest
expense
|
|
|
|
(56,377)
|
|
|
(29,521)
|
Net realized gain on
short-term investments
|
|
|
|
1,239
|
|
|
2,845
|
Unrealized
(loss)/gains on short-term investments
|
|
|
|
(941)
|
|
|
1,778
|
Other
(expense)/income
|
|
|
|
(830)
|
|
|
159
|
Exchange
loss
|
|
|
|
(9,735)
|
|
|
(97)
|
Share of loss of
equity investees
|
|
|
|
(4,149)
|
|
|
(508)
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
|
|
7,228
|
|
|
68,720
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
|
(29,093)
|
|
|
(40,525)
|
|
|
|
|
|
|
|
|
Net
(loss)/income
|
|
|
|
(21,865)
|
|
|
28,195
|
Net (loss)/ income
attributable to non-controlling interest
|
|
|
|
4,522
|
|
|
(11,656)
|
Net (loss)/income
attributable to Xinyuan Real Estate Co., Ltd.
shareholders
|
|
|
|
(17,343)
|
|
|
16,539
|
|
|
|
|
|
|
|
|
(Loss)/earnings per
ADS:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
(0.27)
|
|
|
0.26
|
Diluted
|
|
|
|
(0.26)
|
|
|
0.26
|
ADS used in
computation:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
64,921
|
|
|
64,159
|
Diluted
|
|
|
|
65,642
|
|
|
65,779
|
XINYUAN REAL
ESTATE CO., LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All US$ amounts and number of shares data in
thousands)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
December
31,
|
|
|
2018
|
|
2018
|
|
2017
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
1,066,507
|
|
|
813,736
|
|
|
894,551
|
Restricted
cash
|
|
|
384,276
|
|
|
378,077
|
|
|
566,676
|
Short-term
investments
|
|
|
99,409
|
|
|
123,478
|
|
|
57,740
|
Accounts
receivable
|
|
|
37,508
|
|
|
10,912
|
|
|
100,553
|
Other
receivables
|
|
|
50,158
|
|
|
49,422
|
|
|
73,194
|
Deposits for land use
rights
|
|
|
202,255
|
|
|
97,669
|
|
|
103,716
|
Other deposits and
prepayments
|
|
|
184,903
|
|
|
674,320
|
|
|
272,022
|
Advances to
suppliers
|
|
|
50,582
|
|
|
45,524
|
|
|
36,731
|
Real estate
properties development completed
|
|
|
715,893
|
|
|
813,542
|
|
|
840,393
|
Real estate
properties under development
|
|
|
3,707,284
|
|
|
3,457,139
|
|
|
1,996,001
|
Contract
asset
|
|
|
16,990
|
|
|
-
|
|
|
-
|
Amounts due from
related parties
|
|
|
149,702
|
|
|
187,644
|
|
|
125,662
|
Amounts due from
employees
|
|
|
3,298
|
|
|
5,187
|
|
|
2,174
|
Other current
assets
|
|
|
657
|
|
|
454
|
|
|
799
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
6,669,422
|
|
|
6,657,104
|
|
|
5,070,212
|
|
|
|
|
|
|
|
|
|
|
Real estate
properties held for lease, net
|
|
|
284,948
|
|
|
287,457
|
|
|
277,933
|
Property and
equipment, net
|
|
|
30,287
|
|
|
32,707
|
|
|
32,386
|
Long-term
investment
|
|
|
844,903
|
|
|
982,714
|
|
|
829,773
|
Deferred tax
assets
|
|
|
140,899
|
|
|
153,558
|
|
|
82,006
|
Deposits for land use
rights
|
|
|
22,669
|
|
|
23,854
|
|
|
22,956
|
Amounts due from
related parties
|
|
|
30,020
|
|
|
30,871
|
|
|
24,666
|
Other
assets
|
|
|
162,261
|
|
|
46,809
|
|
|
44,502
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
8,185,409
|
|
|
8,215,074
|
|
|
6,384,434
|
XINYUAN REAL
ESTATE CO., LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All US$ amounts and number of shares data in
thousands)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
December
31,
|
|
|
2018
|
|
2018
|
|
2017
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Accounts payable and
notes payable
|
|
|
489,866
|
|
|
462,161
|
|
|
690,839
|
Short-term bank loans
and other debt
|
|
|
167,338
|
|
|
264,130
|
|
|
247,758
|
Customer
deposits
|
|
|
2,634,724
|
|
|
2,429,980
|
|
|
438,342
|
Income tax
payable
|
|
|
130,764
|
|
|
159,391
|
|
|
169,839
|
Other payables and
accrued liabilities
|
|
|
267,744
|
|
|
279,251
|
|
|
300,120
|
Payroll and welfare
payable
|
|
|
9,855
|
|
|
8,973
|
|
|
31,445
|
Current portion of
long-term bank loans and other debt
|
|
|
1,690,379
|
|
|
1,987,650
|
|
|
1,648,233
|
Current maturities of
capital lease obligations
|
|
|
5,059
|
|
|
4,647
|
|
|
4,472
|
Mandatorily
redeemable non-controlling interests
|
|
|
15,853
|
|
|
16,522
|
|
|
15,593
|
Amounts due to
related parties
|
|
|
54,583
|
|
|
140,993
|
|
|
128,178
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
5,466,165
|
|
|
5,753,698
|
|
|
3,674,819
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
|
Long-term bank
loans
|
|
|
297,524
|
|
|
100,523
|
|
|
11,019
|
Other long term
debt
|
|
|
1,430,226
|
|
|
1,461,869
|
|
|
1,404,814
|
Deferred tax
liabilities
|
|
|
157,468
|
|
|
120,320
|
|
|
164,204
|
Unrecognized tax
benefits
|
|
|
31,231
|
|
|
31,231
|
|
|
31,231
|
Capital lease
obligations, net of current maturities
|
|
|
8,408
|
|
|
10,701
|
|
|
11,415
|
Amounts due to
related parties
|
|
|
114,411
|
|
|
31,831
|
|
|
29,919
|
TOTAL
LIABILITIES
|
|
|
7,505,433
|
|
|
7,510,173
|
|
|
5,327,421
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
Common
shares
|
|
|
16
|
|
|
16
|
|
|
16
|
Treasury
shares
|
|
|
(70,757)
|
|
|
(67,792)
|
|
|
(67,792)
|
Additional paid-in
capital
|
|
|
546,207
|
|
|
544,911
|
|
|
543,338
|
Statutory
reserves
|
|
|
105,848
|
|
|
105,848
|
|
|
105,660
|
Retained
earnings
|
|
|
85,498
|
|
|
81,185
|
|
|
382,124
|
Accumulated other
comprehensive loss
|
|
|
13,077
|
|
|
51,382
|
|
|
29,226
|
|
|
|
|
|
|
|
|
|
|
Total Xinyuan Real
Estate Co., Ltd. shareholders' equity
|
|
|
679,889
|
|
|
715,550
|
|
|
992,572
|
Non-controlling
interest
|
|
|
87
|
|
|
(10,649)
|
|
|
64,441
|
Total
equity
|
|
|
679,976
|
|
|
704,901
|
|
|
1,057,013
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
8,185,409
|
|
|
8,215,074
|
|
|
6,384,434
|
View original
content:http://www.prnewswire.com/news-releases/xinyuan-real-estate-co-ltd-announces-second-quarter-2018-financial-results-300697438.html
SOURCE Xinyuan Real Estate Co., Ltd.