BEIJING, Feb. 15, 2019 /PRNewswire/ -- Xinyuan Real Estate
Co., Ltd. ("Xinyuan" or the "Company") (NYSE: XIN), an NYSE-listed
real estate developer and property manager operating primarily in
China and also in other countries,
today announced its unaudited financial results for the fourth
quarter ended December 31, 2018.
Fourth Quarter 2018 Highlights
- On January 1, 2018, the Company
adopted ASC 606 to recognize revenue for contracts executed after
the adoption on an "over time" basis using costs incurred, an input
measure. As such, fourth quarter results reflect the adoption of
ASC 606 and may not be directly comparable to prior periods.
- Contract sales decreased 12.1% to US$724.0 million from US$823.3 million in the fourth quarter of 2017
and increased 26.7% from US$571.3
million in the third quarter of 2018.
- Total revenue increased 49.1% to US$1,081.8 million from US$725.7 million in the fourth quarter of 2017
and increased 81.7% from US$595.5
million in the third quarter of 2018.
- Gross profit increased 72.0% to US$310.2
million, or 28.7% of total revenue, from US$180.3 million, or 24.8% of total revenue, in
the fourth quarter of 2017 and increased 107.9% from US$149.2 million, or 25.1% of total revenue, in
the third quarter of 2018.
- Selling, General and Administrative ("SG&A") expenses as a
percentage of total revenue decreased to 9.9% from 10.8% in the
fourth quarter of 2017 and increase from 8.0% in the third quarter
of 2018.
- Net income increased 194.4% to US$104.2
million from US$35.4 million
in the fourth quarter of 2017, and increased 336.0% from
US$23.9 million in the third quarter
of 2018.
- Diluted net earnings per American Depositary Share ("ADS")
attributable to shareholders were US$1.15 compared to US$0.50 in the fourth quarter of 2017 and
US$0.31 in the third quarter of
2018.
Full Year 2018 Highlights
- For the year ended December 31,
2018, contract sales decreased 8.2% to US$2,264.5 million from US$2,465.7 million in 2017. GFA sales decreased
22.2% to 1,066,782 square meters from 1,371,621 square meters in
2017.
- Total revenues increased 11.6% to US$2,207.2 million from US$1,976.9 million in 2017.
- Gross profit was US$607.5
million, or 27.5% of revenue in 2018, compared to a gross
profit of US$459.6 million, or 23.2%
of revenue in 2017.
- SG&A expenses were US$241.1
million, or 10.9% of revenue in 2018, compared to
US$212.6 million, or 10.8% of revenue
in 2017.
- Net income was US$106.1 million
in 2018 compared to US$80.1 million
in 2017. Diluted earnings per ADS were US$1.15 in 2018 compared to US$0.97 per ADS in 2017.
Mr. Yong Zhang, Xinyuan's
Chairman, stated, "We are pleased that Xinyuan has maintained
strong growth despite the downward pressure on sales across the
industry. The total amount of contracts signed in 2018 was
US$3,223.6 million, representing
42.4% growth compared to US$2,263.0
million achieved in 2017. Correspondingly, our full year
total revenue increased by double digits. Due to the successful
selection and execution of our projects, gross profit margin for
the year reached 27.5%, resulting in bottom line growth of more
than 30%, well above our forecast of 15-20%. Our contract sales in 2018 decreased year over
year, mainly because we only included contracts qualified for
revenue recognition. As those excluded contracts meet the revenue
recognition requirement, our contract sales will recover in the
coming quarters."
"During the fourth quarter, we commenced pre-sales on ten new
projects in China that reflected
our strategy in tier-two cities, which made significant
contributions to our total GFA sales and total contract sales,"
continued Mr. Zhang, "We also invested in our future growth by
expanding our land bank with the acquisitions of Huzhou Silk Town
and Xingyang Splendid New Project. Our under planning stage
projects in China, U.S, and
Malaysia continued to proceed as
planned, and our UK project made further progress in both
construction and sales."
"The macro economic environment and government restriction
policies still pose certain challenges for our industry. However,
Xinyuan's operating strategy and strong execution capabilities are
the foundations of our steady growth. We will remain focused on
selecting quality tier-one and tier-two city projects and will
supplement our core business with value-added services in a
strategic way to solidify our leading market position. We maintain
our commitment to controlling our financial leverage and maximizing
Xinyuan's financial health. We are optimistic in the outlook for
our industry and long-term growth. We are also pleased to offer
another quarterly dividend payment to our shareholders," concluded
Mr. Zhang.
Fourth Quarter 2018 Financial Results
Contract Sales
Contract sales in China totaled
US$724.0 million in the fourth
quarter compared to US$817.1 million in the fourth
quarter of 2017 and US$571.3 million in the
third quarter of 2018.
The Company's GFA sales in China were 355,609 square meters in the fourth
quarter of 2018 compared to 443,600 square meters in the
fourth quarter of 2017 and 277,500 square meters in the
third quarter of 2018.
The average selling price ("ASP") per square meter sold in
China was RMB13,461 (US$2,036) in the fourth quarter of 2018
compared to RMB12,118 (US$1,794) in the fourth quarter of 2017 and
RMB13,406 (US$2,059) in the
third quarter of 2018.
The Company commenced pre-sales of ten new projects in the
fourth quarter of 2018, Zhengzhou Hangmei International Wisdom City
II, Dalian International Health Technology Town I, Qingdao Royal
Dragon Bay, Jinan Royal Spring Bay,
Xinyuan Golden Water View City, Zhengzhou Fancy City III, Zhengzhou
International New City III C, Zhengzhou International New City IV,
Suzhou Galaxy Bay, and Suzhou Gusu Shade I. The presales
contributed 46.5% and 48.9% of total GFA sales and total contract
sales, respectively.
Breakdown of GFA Sales and ASPs by Project in China
Project
|
Q4
2017
|
Q3
2018
|
Q4
2018
|
GFA
|
ASP
|
GFA
|
ASP
|
GFA
|
ASP
|
(m2,
000s)
|
(RMB)
|
(m2,
000s)
|
(RMB)
|
(m2,
000s)
|
(RMB)
|
Xingyang Splendid
II
|
1.6
|
11,650
|
1.2
|
13,900
|
0.7
|
10,354
|
Kunshan Royal
Palace
|
1.3
|
24,232
|
-
|
-
|
-
|
-
|
Jinan Royal
Palace
|
35.5
|
12,404
|
25.9
|
16,426
|
1.4
|
9,548
|
Xuzhou Colorful
City
|
31.4
|
11,246
|
0.1
|
10,989
|
1.9
|
29,363
|
Chengdu Thriving
Family
|
15.8
|
10,724
|
1.1
|
8,012
|
-
|
-
|
Changsha Xinyuan
Splendid
|
4.2
|
18,379
|
0.2
|
19,771
|
4.2
|
12,796
|
Sanya Yazhou Bay
No.1
|
2.7
|
27,497
|
(0.9)
|
23,515
|
0.2
|
4,995
|
Xi'an
Metropolitan
|
21.2
|
9,719
|
1.8
|
10,546
|
1.7
|
10,592
|
Zhengzhou Xindo
Park
|
11.3
|
11,110
|
4.1
|
8,015
|
0.1
|
8,651
|
Jinan Xin
Central
|
16.9
|
11,477
|
1.3
|
12,839
|
3.6
|
16,789
|
Henan Xin Central
I
|
9.5
|
12,890
|
0.3
|
18,931
|
-
|
-
|
Zhengzhou Fancy City
I
|
2.0
|
14,004
|
0.2
|
17,481
|
0.2
|
16,081
|
Zhengzhou Fancy City
II (South)
|
4.4
|
15,899
|
0.4
|
17,780
|
-
|
-
|
Tianjin Spring Royal
Palace I
|
2.5
|
12,590
|
-
|
-
|
0.3
|
-
|
Kunshan Xindo
Park
|
12.7
|
22,311
|
2.4
|
24,014
|
5.1
|
20,108
|
Zhengzhou
International New City I
|
33.9
|
4,401
|
2.3
|
25,725
|
0.2
|
25,544
|
Henan Xin Central
II
|
10.4
|
11,858
|
0.2
|
16,913
|
-
|
-
|
Xingyang Splendid
III
|
18.9
|
7,237
|
2.7
|
8,018
|
1.1
|
7,779
|
Changsha Mulian Royal
Palace
|
21.6
|
12,899
|
4.0
|
14,445
|
1.5
|
19,790
|
Zhengzhou
International New City
II
|
76.7
|
13,711
|
3.4
|
13,388
|
0.6
|
-
|
Zhengzhou
International New City
III A
|
73.6
|
14,058
|
(0.1)
|
14,150
|
0.1
|
14,150
|
Zhengzhou Fancy City
II (North)
|
31.2
|
9,499
|
2.5
|
9,567
|
4.9
|
12,569
|
Tianjin Spring Royal
Palace II
|
-
|
-
|
23.6
|
12,691
|
15.3
|
13,583
|
Zhengzhou
International New City
III D
|
-
|
-
|
14.0
|
14,264
|
-
|
9,987
|
Zhengzhou Hangmei
International
Wisdom City I
|
-
|
-
|
18.9
|
7,230
|
15.9
|
7,115
|
Zhengzhou
International New City
III B
|
-
|
-
|
54.5
|
14,135
|
10.4
|
13,561
|
Changsha Furong
Thriving Family
|
-
|
-
|
68.4
|
9,773
|
3.4
|
9,915
|
Chengdu Xinyuan
City
|
-
|
-
|
7.1
|
9,988
|
67.0
|
9,961
|
Kunshan Xinyu
Jiayuan
|
-
|
-
|
13.1
|
26,108
|
10.6
|
25,963
|
Xingyang Splendid
IV
|
-
|
-
|
14.7
|
7,576
|
6.1
|
7,455
|
Suzhou Suhe Bay
*
|
-
|
-
|
9.6
|
21,722
|
14.4
|
21,536
|
Zhengzhou Hangmei
International
Wisdom City II
|
-
|
-
|
-
|
-
|
14.2
|
7,313
|
Qingdao Royal Dragon
Bay
|
-
|
-
|
-
|
-
|
20.5
|
21,099
|
Jinan Royal Spring
Bay
|
-
|
-
|
-
|
-
|
18.2
|
9,160
|
Xinyuan Golden Water
View City
|
-
|
-
|
-
|
-
|
32.6
|
19,026
|
Zhengzhou Fancy City
III
|
-
|
-
|
-
|
-
|
16.8
|
12,850
|
Zhengzhou
International New City
III C
|
-
|
-
|
-
|
-
|
28.6
|
11,062
|
Zhengzhou
International New City
IV
|
-
|
-
|
-
|
-
|
9.3
|
14,109
|
Suzhou Galaxy
Bay
|
-
|
-
|
-
|
-
|
24.3
|
13,868
|
Suzhou Gusu Shade I
(Suzhou New
Project)
|
-
|
-
|
-
|
-
|
0.1
|
36,692
|
Dalian International
Health
Technology Town I
|
-
|
-
|
-
|
-
|
0.9
|
14,212
|
Others
|
4.3
|
-
|
0.5
|
-
|
19.2
|
-
|
Total
|
443.6
|
12,118
|
277.5
|
13,406
|
355.6
|
13,461
|
* The Company owns 16.66% equity interest in a joint venture,
Suzhou Hengwan Real Estate Co., Ltd. which develops Suzhou Suhe
Bay. The Company accounts for its investment under the equity
method.
Revenue
In the fourth quarter of 2018, the Company's total revenue
increased 49.1% to US$1,081.8 million
from US$725.7 million in the fourth
quarter of 2017 and increased 81.7% from US$595.5 million in the third quarter of
2018.
Gross Profit
Gross profit for the fourth quarter of 2018 was
US$310.2 million, or 28.7% of total
revenue, compared to a gross profit of US$180.3 million, or 24.8% of total revenue, in
the fourth quarter of 2017 and a gross profit of US US$149.2 million, or 25.1% of total revenue, in
the third quarter of 2018.
Selling, General and Administrative Expenses
SG&A expenses were US$106.6 million for the fourth
quarter of 2018 compared to US$78.2 million for the fourth
quarter of 2017 and US$47.7 million for the
third quarter of 2018. As a percentage of total revenue,
SG&A expenses were 9.9% compared to 10.8% in the fourth
quarter of 2017 and 8.0% in the third quarter of
2018.
Net Income
Net income for the fourth quarter of 2018 was
US$104.2 million compared to
US$35.4 million for the fourth
quarter of 2017 and US$23.9 million for the
third quarter of 2018. Net margin was 9.6% compared to 4.9% in
the fourth quarter of 2017 and 4.0% in the
third quarter of 2018. Diluted earnings per ADS were
US$1.15 compared to US$0.50 per ADS in the fourth
quarter of 2017 and US$0.31 per ADS in the third quarter of
2018.
Balance Sheet
As of December 31, 2018, the Company's cash and cash
equivalents (including restricted cash) decreased to US$1,188.2 million from US$1,416.9 million as of September 30,
2018.
Total debt outstanding was US$3,452.1 million, which reflected a
decrease of US$632.3 million
compared to US$4,084.4 million at the
end of the third quarter of 2018. The balance of the Company's
real estate properties under development at the end of the fourth
quarter of 2018 was US$3,804.6 million compared to US$4,469.1 million at the end of the
third 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 fourth quarter of 2018.
Project
|
GFA
|
(m2
'000s)
|
Total Active
Project
|
Sold to
date
|
Unsold to
date
|
Xingyang Splendid
II
|
137.1
|
83.6
|
53.5
|
Kunshan Royal
Palace
|
280.6
|
278.9
|
1.7
|
Jinan Royal
Palace
|
449.5
|
427.2
|
22.3
|
Xuzhou Colorful
City
|
130.7
|
121.6
|
9.1
|
Chengdu Thriving
Family
|
203.4
|
198.1
|
5.3
|
Changsha Xinyuan
Splendid
|
251.6
|
249.5
|
2.1
|
Sanya Yazhou Bay
No.1
|
117.6
|
100.8
|
16.8
|
Xi'an
Metropolitan
|
286.0
|
269.0
|
17.0
|
Zhengzhou Xindo
Park
|
134.4
|
132.0
|
2.4
|
Jinan Xin
Central
|
194.4
|
183.3
|
11.1
|
Henan Xin Central
I
|
262.2
|
252.4
|
9.8
|
Zhengzhou Fancy City
I
|
166.7
|
160.3
|
6.4
|
Zhengzhou Fancy City
II (South)
|
84.1
|
81.9
|
2.2
|
Tianjin Spring Royal
Palace I
|
139.2
|
131.3
|
7.9
|
Kunshan Xindo
Park
|
89.0
|
87.9
|
1.1
|
Zhengzhou
International New City I
|
360.7
|
338.4
|
22.3
|
Henan Xin Central
II
|
109.5
|
103.8
|
5.7
|
Xingyang Splendid
III
|
121.1
|
115.8
|
5.3
|
Zhengzhou
International New City II
|
176.0
|
163.2
|
12.8
|
Zhengzhou
International New City III A
|
96.0
|
95.4
|
0.6
|
Zhengzhou Fancy City
II (North)
|
108.7
|
84.6
|
24.1
|
Tianjin Spring Royal
Palace II
|
144.6
|
53.1
|
91.5
|
Zhengzhou
International New City III D
|
46.1
|
43.7
|
2.4
|
Zhengzhou Hangmei
International Wisdom City I
|
64.7
|
50.9
|
13.8
|
Zhengzhou
International New City III B
|
118.8
|
116.2
|
2.6
|
Changsha Furong
Thriving Family
|
72.3
|
71.9
|
0.4
|
Chengdu Xinyuan
City
|
742.8
|
74.1
|
668.7
|
Kunshan Xinyu
Jiayuan
|
107.9
|
23.6
|
84.3
|
Xingyang Splendid
IV
|
22.0
|
20.7
|
1.3
|
Suzhou Suhe Bay
*
|
62.6
|
24.0
|
38.6
|
Zhengzhou Hangmei
International Wisdom City II
|
68.8
|
14.2
|
54.6
|
Qingdao Royal Dragon
Bay
|
154.9
|
20.5
|
134.4
|
Jinan Royal Spring
Bay
|
117.0
|
18.2
|
98.8
|
Xinyuan Golden Water
View City
|
338.8
|
35.8
|
303.0
|
Zhengzhou Fancy City
III
|
80.6
|
16.7
|
63.9
|
Zhengzhou
International New City III C
|
79.9
|
28.5
|
51.4
|
Zhengzhou
International New City IV
|
198.4
|
9.2
|
189.2
|
Suzhou Galaxy
Bay
|
76.5
|
24.3
|
52.2
|
Suzhou Gusu Shade I
(Suzhou New Project)
|
12.0
|
0.2
|
11.8
|
Dalian International
Health Technology Town I
|
103.9
|
0.9
|
103.0
|
Others
|
44.7
|
-
|
44.7
|
Total active
projects
|
6,555.8
|
4,305.7
|
2,250.1
|
* The Company owns 16.66% equity interest in a joint venture,
Suzhou Hengwan Real Estate Co., Ltd. which develops Suzhou Suhe
Bay. The Company accounts for its investment under the equity
method.
As of December 31, 2018, the
Company's total saleable GFA was approximately
5,698,700 square meters for active projects and under planning
stage projects in China. Below is
a summary of all of the Company's projects in China:
|
Unsold
GFA
(m2
'000s)
|
Pre-sales
Scheduled
|
|
|
|
Tongzhou Xinyuan
Royal Palace
|
102.3
|
To be
determined
|
|
Xinyuan Chang'an
Royal Palace
|
226.0
|
To be
determined
|
|
Zhengzhou
International New City Land Bank (all land is grouped together
and will be developed gradually)
|
1,393.1
|
To be
determined
|
|
Zhuhai Xin
World
|
70.0
|
To be
determined
|
|
Lingshan Bay Dragon
Seal
|
380.0
|
To be
determined
|
|
Zhengzhou Hangmei
Project Land Bank (all land is grouped together
and will be developed gradually)
|
192.7
|
To be
determined
|
|
Zhengzhou Zhongmou
Project*
|
480.0
|
N/A
|
|
Wuhan Canglong Royal
Palace
|
185.0
|
To be
determined
|
|
Suzhou Gusu Shade II
(Suzhou New Project)
|
12.1
|
To be
determined
|
|
Dalian International
Health Technology Town II
|
44.5
|
To be
determined
|
|
Huzhou Silk
Town
|
134.9
|
To be
determined
|
|
Xingyang Splendid New
Project
|
228.0
|
To be
determined
|
|
Total projects
under planning
|
3,448.6
|
|
|
Total active
projects
|
2,250.1
|
|
|
Total of all
Xinyuan unsold projects in China
|
5,698.7
|
|
|
* In the fourth quarter of 2018, this project is now fully
engaged in the construction management service business.
Update on Real Estate Projects in the United States
As of December 31, 2018, a total
of 176 units out of 216 units were sold and closed at the Company's
Oosten project in Brooklyn, New
York City, with total revenue from this project reaching
US$259.3 million. During 2018,
revenues were US$8.8 million.
During the quarter, the Company completed the construction up to
the 6th floor for Hudson Garden
project in the Hell's Kitchen area of Manhattan, New York City. During the year, 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 were leased to the U.S. department store retailer Target
with a 20-year lease. Soft launch of sales began in the fourth
quarter of 2018.
The Company continued to execute on the planning, governmental
approvals, and pre-development activities of its ground-up project
in Flushing, New York City. During
the year, the Landmark Preservation Committee approved the
Company's landmark protection plan and awarded the Company a
Certificate of Appropriateness. The transfer phase for landmarked
artifacts is to be completed by the end of February 2019.
Real Estate Project Update in the United Kingdom
During the fourth quarter of 2018, another 8 floors were added
to the structural core of the Madison project, resulting in 42 out
of 53 floors built. The structure of the tower is
expected to be complete in mid-2019 and construction remains on
track 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, 133
apartments have been sold.
Business Outlook
For 2019, the Company expects an increase in total contract
sales of approximately 10% and an increase in consolidated net
income of 15%-20% over 2018.
Conference Call Information
The Company will hold a conference call at 8:00am ET on February 15,
2019, to discuss its fourth quarter 2018 results. Listeners
may access the call by dialing:
US Toll
Free:
|
1-888-220-8451
|
International:
|
1-323-794-2588
|
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 February 22, 2019, by dialing:
US:
|
1-844-512-2921
|
International:
|
1-412-317-6671
|
Access
code:
|
9013329
|
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, and Suzhou. 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
Mr. William Zima
In U.S.: +1-646-308-1472
Email: William.zima@icrinc.com
Media:
Mr. 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
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
1,081,829
|
|
|
|
595,460
|
|
|
|
725,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs of
revenue
|
|
|
(771,613)
|
|
|
|
(446,284)
|
|
|
|
(545,358)
|
|
Gross
profit
|
|
|
310,216
|
|
|
|
149,176
|
|
|
|
180,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
|
(44,833)
|
|
|
|
(12,282)
|
|
|
|
(28,274)
|
|
General and
administrative expenses
|
|
|
(61,783)
|
|
|
|
(35,414)
|
|
|
|
(49,920)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
203,600
|
|
|
|
101,480
|
|
|
|
102,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
10,357
|
|
|
|
8,084
|
|
|
|
4,431
|
|
Interest
expense
|
|
|
(20,610)
|
|
|
|
(21,778)
|
|
|
|
(25,215)
|
|
Net realized (loss)/
gain on short-term investments
|
|
|
(4,959)
|
|
|
|
2,119
|
|
|
|
4,012
|
|
Unrealized gain/
(loss) on short-term investments
|
|
|
575
|
|
|
|
(1,121)
|
|
|
|
(2,116)
|
|
Other income/
(expense)
|
|
|
905
|
|
|
|
(443)
|
|
|
|
2,170
|
|
Net loss on debt
extinguishment
|
|
|
(21,444)
|
|
|
|
-
|
|
|
|
-
|
|
Exchange (loss)/
gain
|
|
|
(65)
|
|
|
|
(15,451)
|
|
|
|
1,043
|
|
Share of loss of
equity investees
|
|
|
(2,169)
|
|
|
|
(2,620)
|
|
|
|
(816)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
|
166,190
|
|
|
|
70,270
|
|
|
|
85,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
(61,969)
|
|
|
|
(46,415)
|
|
|
|
(50,226)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
104,221
|
|
|
|
23,855
|
|
|
|
35,387
|
|
Net income
attributable to non-controlling interest
|
|
|
(33,140)
|
|
|
|
(3,729)
|
|
|
|
(2,375)
|
|
Net income
attributable to Xinyuan Real Estate Co., Ltd.
shareholders
|
|
|
71,081
|
|
|
|
20,126
|
|
|
|
33,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
ADS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1.17
|
|
|
|
0.32
|
|
|
|
0.51
|
|
Diluted
|
|
|
1.15
|
|
|
|
0.31
|
|
|
|
0.50
|
|
ADS used in
computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
60,957
|
|
|
|
63,734
|
|
|
|
64,754
|
|
Diluted
|
|
|
61,894
|
|
|
|
64,472
|
|
|
|
65,927
|
|
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)
|
|
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
(unaudited)
|
|
|
(audited)
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
2,207,218
|
|
|
|
1,976,907
|
|
|
|
|
|
|
|
|
|
|
Total costs of
revenue
|
|
|
(1,599,743)
|
|
|
|
(1,517,279)
|
|
Gross
profit
|
|
|
607,475
|
|
|
|
459,628
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
|
(83,425)
|
|
|
|
(75,724)
|
|
General and
administrative expenses
|
|
|
(157,677)
|
|
|
|
(136,845)
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
366,373
|
|
|
|
247,059
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
31,891
|
|
|
|
16,859
|
|
Interest
expense
|
|
|
(96,876)
|
|
|
|
(66,153)
|
|
Net realized (loss)/
gain on short-term investments
|
|
|
(1,129)
|
|
|
|
7,874
|
|
Unrealized (loss)/
gain on short-term investments
|
|
|
(1,483)
|
|
|
|
2,096
|
|
Other (expense)/
income
|
|
|
(367)
|
|
|
|
2,326
|
|
Net loss on debt
extinguishment
|
|
|
(21,444)
|
|
|
|
(15,880)
|
|
Exchange (loss)/
gain
|
|
|
(26,395)
|
|
|
|
757
|
|
Share of loss of
equity investees
|
|
|
(8,938)
|
|
|
|
(1,710)
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before income taxes
|
|
|
241,632
|
|
|
|
193,228
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
(135,571)
|
|
|
|
(113,117)
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
106,061
|
|
|
|
80,111
|
|
Net income
attributable to non-controlling interest
|
|
|
(32,048)
|
|
|
|
(16,484)
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Xinyuan Real Estate Co., Ltd.
shareholders
|
|
74,013
|
|
63,627
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
ADS:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1.16
|
|
|
|
0.99
|
|
Diluted
|
|
|
1.15
|
|
|
|
0.97
|
|
ADS used in
computation:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
63,564
|
|
|
|
64,352
|
|
Diluted
|
|
|
64,590
|
|
|
|
65,803
|
|
XINYUAN REAL
ESTATE CO., LTD. AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(All US$ amounts
and number of shares data in thousands)
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
772,367
|
|
|
|
1,000,886
|
|
|
|
894,551
|
|
Restricted
cash
|
|
|
415,803
|
|
|
|
416,060
|
|
|
|
566,676
|
|
Short-term
investments
|
|
|
8,442
|
|
|
|
243,036
|
|
|
|
57,740
|
|
Accounts
receivable
|
|
|
54,314
|
|
|
|
77,743
|
|
|
|
100,553
|
|
Other
receivables
|
|
|
120,100
|
|
|
|
114,829
|
|
|
|
73,194
|
|
Deposits for land use
rights
|
|
|
42,254
|
|
|
|
43,610
|
|
|
|
103,716
|
|
Other deposits and
prepayments
|
|
|
248,965
|
|
|
|
316,974
|
|
|
|
272,022
|
|
Advances to
suppliers
|
|
|
49,204
|
|
|
|
56,026
|
|
|
|
36,731
|
|
Real estate
properties development completed
|
|
|
853,342
|
|
|
|
678,029
|
|
|
|
840,393
|
|
Real estate
properties under development
|
|
|
3,804,555
|
|
|
|
4,469,128
|
|
|
|
1,996,001
|
|
Amounts due from
related parties
|
|
|
242,432
|
|
|
|
157,422
|
|
|
|
125,662
|
|
Amounts due from
employees
|
|
|
1,694
|
|
|
|
4,420
|
|
|
|
2,174
|
|
Other current
assets
|
|
|
520
|
|
|
|
910
|
|
|
|
799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
6,613,992
|
|
|
|
7,579,073
|
|
|
|
5,070,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate
properties held for lease, net
|
|
|
273,371
|
|
|
|
272,526
|
|
|
|
277,933
|
|
Property and
equipment, net
|
|
|
38,114
|
|
|
|
32,241
|
|
|
|
32,386
|
|
Long-term
investment
|
|
|
566,968
|
|
|
|
612,901
|
|
|
|
829,773
|
|
Deferred tax
assets
|
|
|
137,561
|
|
|
|
136,828
|
|
|
|
82,006
|
|
Deposits for land use
rights
|
|
|
21,855
|
|
|
|
21,804
|
|
|
|
22,956
|
|
Amounts due from
related parties
|
|
|
50,904
|
|
|
|
29,538
|
|
|
|
24,666
|
|
Contract
assets
|
|
|
17,426
|
|
|
|
18,517
|
|
|
|
-
|
|
Other
assets
|
|
|
132,921
|
|
|
|
134,920
|
|
|
|
44,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
7,853,112
|
|
|
|
8,838,348
|
|
|
|
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)
|
|
|
|
December
31,
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2018
|
|
|
2018
|
|
|
2017
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(audited)
|
|
LIABILITIES
AND
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
780,576
|
|
|
|
626,425
|
|
|
|
690,839
|
|
Short-term bank loans
and other debt
|
|
|
43,711
|
|
|
|
190,932
|
|
|
|
247,758
|
|
Customer
deposits
|
|
|
1,912,848
|
|
|
|
2,490,508
|
|
|
|
438,342
|
|
Income tax
payable
|
|
|
220,883
|
|
|
|
110,353
|
|
|
|
169,839
|
|
Deferred tax
liabilities-current
|
|
|
223,888
|
|
|
|
-
|
|
|
|
-
|
|
Other payables and
accrued liabilities
|
|
|
374,259
|
|
|
|
496,956
|
|
|
|
300,120
|
|
Payroll and welfare
payable
|
|
|
34,263
|
|
|
|
10,093
|
|
|
|
31,445
|
|
Current portion of
long-term bank loans and other debt
|
|
|
1,647,918
|
|
|
|
2,105,469
|
|
|
|
1,648,233
|
|
Current maturities of
capital lease obligations
|
|
|
6,135
|
|
|
|
4,629
|
|
|
|
4,472
|
|
Mandatorily
redeemable non-controlling interests
|
|
|
22,621
|
|
|
|
14,159
|
|
|
|
15,593
|
|
Amounts due to
related parties
|
|
|
12,489
|
|
|
|
70,044
|
|
|
|
128,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
5,279,591
|
|
|
|
6,119,568
|
|
|
|
3,674,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term bank
loans
|
|
|
720,039
|
|
|
|
622,849
|
|
|
|
11,019
|
|
Other long-term
debt
|
|
|
1,040,455
|
|
|
|
1,165,132
|
|
|
|
1,404,814
|
|
Deferred tax
liabilities
|
|
|
9,170
|
|
|
|
202,878
|
|
|
|
164,204
|
|
Unrecognized tax
benefits
|
|
|
31,231
|
|
|
|
31,231
|
|
|
|
31,231
|
|
Capital lease
obligations, net of current maturities
|
|
|
10,443
|
|
|
|
8,409
|
|
|
|
11,415
|
|
Amounts due to
related parties
|
|
|
4,609
|
|
|
|
30,702
|
|
|
|
29,919
|
|
TOTAL
LIABILITIES
|
|
|
7,095,538
|
|
|
|
8,180,769
|
|
|
|
5,327,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
shares
|
|
|
16
|
|
|
|
16
|
|
|
|
16
|
|
Treasury
shares
|
|
|
(87,639)
|
|
|
|
(78,265)
|
|
|
|
(67,792)
|
|
Additional paid-in
capital
|
|
|
525,554
|
|
|
|
543,253
|
|
|
|
543,338
|
|
Statutory
reserves
|
|
|
162,207
|
|
|
|
105,844
|
|
|
|
105,660
|
|
Retained
earnings
|
|
|
104,509
|
|
|
|
94,317
|
|
|
|
382,124
|
|
Accumulated other
comprehensive (loss) /income
|
|
|
(28,286)
|
|
|
|
(29,068)
|
|
|
|
29,226
|
|
Total Xinyuan Real
Estate Co., Ltd. shareholders' equity
|
|
|
676,361
|
|
|
|
636,097
|
|
|
|
992,572
|
|
Non-controlling
interest
|
|
|
81,213
|
|
|
|
21,482
|
|
|
|
64,441
|
|
Total
equity
|
|
|
757,574
|
|
|
|
657,579
|
|
|
|
1,057,013
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
7,853,112
|
|
|
|
8,838,348
|
|
|
|
6,384,434
|
|
View original
content:http://www.prnewswire.com/news-releases/xinyuan-real-estate-co-ltd-announces-fourth-quarter-2018-financial-results-300796490.html
SOURCE Xinyuan Real Estate Co., Ltd.