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Xinyuan Real Estate Co., Ltd. Announces Fourth Quarter 2018 Financial Results

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


 

Cision 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.



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