Xinyuan Real Estate Co., Ltd. Announces Fourth Quarter 2019 Financial Results
BEIJING,
Full Year 2019 Highlights
- Total revenue increased 11.9% to
US$2.5 billion fromUS$2.2 billion in 2018. - For the year ended
December 31, 2019 , contract sales decreased 6.2% toUS$2.1 billion fromUS$2.3 billion in 2018. In RMB terms, contract sales in 2019 decreased 2.2% toRMB14.6 billion yuan fromRMB15.0 billion yuan in 2018. GFA sales increased 7.1% to 1,142,149 square meters from 1,066,192 square meters in 2018. - Gross profit was
US$560.3 million , or 22.6% of revenue in 2019, compared to a gross profit ofUS$615.5 million , or 27.8% of revenue in 2018. - SG&A expenses were
US$250.4 million , or 10.1% of revenue in 2019, compared toUS$240 million , or 10.8% of revenue in 2018. - Net income was
US$83.0 million in 2019 compared toUS$106.0 million in 2018. Diluted earnings per ADS wereUS$1.20 in 2019 compared toUS$1.14 per ADS in 2018. - On
October 11, 2019 , the property management service entity of Xinyuan, Xinyuan Property Management Service (Cayman) Ltd. has been listed on the main board ofHong Kong Stock Exchange , under code 01895.HK.
Fourth Quarter 2019 Highlights
- Total revenue was
US$906.7 million in the fourth quarter of 2019 compared toUS$1,092.2 million in the fourth quarter of 2018 andUS$497.6 million in the third quarter of 2019. - Net income was
US$39.6 million in the fourth quarter of 2019 compared toUS$104.1 million in the fourth quarter of 2018 andUS$5.4 million in the third quarter of 2019. - Diluted net earnings per ADS attributable to shareholders were
US$0.62 in the fourth quarter of 2019 compared toUS$1.13 in the fourth quarter of 2018 andUS$0.07 in the third quarter of 2019.
Mr.
"We started 2020 in a challenging environment due to the COVID-19 outbreak, which has adversely affected our first quarter sales. The most immediate impact was the closure of sales and construction sites. At the moment,
Fourth Quarter 2019 Financial Results
Contract Sales
Contract sales in
The Company's GFA sales in
The average selling price ("ASP") per square meter sold in
The Company commenced pre-sales of one new project in the fourth quarter of 2019, Foshan Xinchuang AI International Science and
Breakdown of GFA Sales and ASPs by Project in
Project |
Q4 2018 |
Q3 2019 |
Q4 2019 |
|||
GFA |
ASP |
GFA |
ASP |
GFA |
ASP |
|
(m2, 000s) |
(RMB) |
(m2, 000s) |
(RMB) |
(m2, 000s) |
(RMB) |
|
Xingyang Splendid II |
0.7 |
10,354 |
0.4 |
13,048 |
0.2 |
7,667 |
|
1.4 |
9,548 |
2.2 |
16,483 |
2.0 |
11,432 |
Xuzhou Colorful City |
1.9 |
29,363 |
0.4 |
12,453 |
-0.1 |
14,000 |
|
0.2 |
4,995 |
0.4 |
24,890 |
12.8 |
14,411 |
|
1.7 |
10,592 |
0.1 |
12,845 |
1.9 |
10,909 |
Jinan Xin Central |
3.6 |
16,789 |
0.4 |
12,926 |
2.9 |
10,382 |
Henan Xin Central I |
- |
- |
- |
- |
0.5 |
23,764 |
Zhengzhou Fancy City I |
0.2 |
16,081 |
- |
- |
- |
- |
Tianjin Spring Royal Palace I |
0.3 |
- |
0.3 |
11,468 |
- |
- |
Zhengzhou International New City I |
0.2 |
25,544 |
5.9 |
14,784 |
6.2 |
19,541 |
Xingyang Splendid III |
1.1 |
7,779 |
0.8 |
16,498 |
1.5 |
13,652 |
Zhengzhou International New City II |
0.6 |
- |
1.9 |
17,817 |
4.4 |
22,965 |
Zhengzhou Fancy City II (North) |
4.9 |
12,569 |
4.3 |
9,148 |
6.7 |
9,594 |
Tianjin Spring Royal Palace II |
15.3 |
13,583 |
8.1 |
13,403 |
1.4 |
12,615 |
Zhengzhou International New City III D |
- |
9,987 |
0.1 |
14,446 |
0.9 |
23,353 |
Zhengzhou Hangmei International Wisdom |
15.9 |
7,115 |
0.5 |
6,968 |
0.8 |
6,699 |
Zhengzhou International New City III B |
10.4 |
13,561 |
0.1 |
13,874 |
0.1 |
12,947 |
Changsha Furong Thriving Family |
3.4 |
9,915 |
0.2 |
9,568 |
-0.1 |
9,730 |
Chengdu Xinyuan City |
67.0 |
9,961 |
6.1 |
7,210 |
80.0 |
10,499 |
|
10.6 |
25,963 |
5.6 |
23,878 |
6.4 |
23,443 |
Xingyang Splendid IV |
6.1 |
7,455 |
7.9 |
7,629 |
30.9 |
7,789 |
|
14.4 |
21,536 |
- |
- |
- |
- |
Zhengzhou Hangmei International Wisdom |
14.2 |
7,313 |
9.2 |
7,391 |
4.7 |
7,332 |
|
20.5 |
21,099 |
6.9 |
22,162 |
21.5 |
19,769 |
|
18.2 |
9,160 |
5.8 |
8,547 |
16.0 |
8,596 |
Xinyuan Golden Water View City-Zhengzhou |
32.6 |
19,026 |
1.3 |
24,217 |
13.5 |
21,629 |
Zhengzhou Fancy City III |
16.8 |
12,850 |
11.5 |
13,221 |
16.5 |
12,183 |
Zhengzhou International New City III C |
28.6 |
11,062 |
4.6 |
13,157 |
3.3 |
10,527 |
Zhengzhou International New City IV A12 |
9.3 |
14,109 |
85.6 |
14,325 |
24.7 |
16,598 |
Zhengzhou International New City IV B10 |
- |
- |
12.5 |
9,996 |
15.3 |
10,157 |
|
24.3 |
13,868 |
10.8 |
14,591 |
0.6 |
19,157 |
Suzhou Gusu Shade I |
0.1 |
36,692 |
1.6 |
37,563 |
0.4 |
30,076 |
Dalian International Health Technology |
0.9 |
14,212 |
19.6 |
9,349 |
12.1 |
9,606 |
Xingyang Splendid V |
- |
- |
18.4 |
7,635 |
22.8 |
7,647 |
Suzhou Gusu Shade II ** |
- |
- |
3.4 |
38,111 |
2.9 |
38,330 |
Zhengzhou International New City V A04 |
- |
- |
0.3 |
12,068 |
21.8 |
14,082 |
|
- |
- |
18.4 |
16,840 |
3.5 |
15,415 |
|
- |
- |
- |
- |
12.7 |
10,795 |
Others |
30.2 |
- |
- |
5.2 |
- |
|
Total |
355.6 |
13,461 |
255.6 |
13,531 |
356.9 |
12,628 |
* The Company owns a 16.66% equity interest in |
||||||
** The Company owns a 19.99% equity interest in |
||||||
*** The Company owns a 51% equity interest indirectly in |
Revenue
In the fourth quarter of 2019, the Company's total revenue decreased 17.0% to
Gross Profit
Gross profit for the fourth quarter of 2019 was US$146.5 million, or 16.2% of total revenue, compared to gross profit of
Selling, General and Administrative Expenses
SG&A expenses were
Net Income
Net income for the fourth quarter of 2019 was
Balance Sheet
As of
Total debt outstanding was
The balance of the Company's real estate properties under development at the end of the fourth quarter of 2019 was
Real Estate Project Status in
Below is a summary table of projects that were active and available for sale in the fourth quarter of 2019.
Project |
GFA |
||
(m2, 000s) |
|||
Total Active Projects |
Sold as of |
Unsold as of |
|
Xingyang Splendid II |
118.5 |
98.0 |
20.5 |
|
449.6 |
435.8 |
13.8 |
Xuzhou Colorful City |
130.8 |
122.5 |
8.3 |
|
117.6 |
101.4 |
16.2 |
|
286.0 |
271.8 |
14.2 |
Jinan Xin Central |
194.4 |
186.8 |
7.6 |
Henan Xin Central I |
261.5 |
253.6 |
7.9 |
Zhengzhou Fancy City I |
166.7 |
159.3 |
7.4 |
Tianjin Spring Royal Palace I |
139.7 |
131.6 |
8.1 |
Zhengzhou International New City I |
356.6 |
350.6 |
6.0 |
Xingyang Splendid III |
121.1 |
118.9 |
2.2 |
Zhengzhou International New City II |
176.0 |
170.0 |
6.0 |
Zhengzhou Fancy City II (North) |
108.7 |
101.9 |
6.8 |
Tianjin Spring Royal Palace II |
144.6 |
81.6 |
63.0 |
Zhengzhou International New City III D |
46.1 |
45.2 |
0.9 |
Zhengzhou Hangmei International Wisdom City I |
64.7 |
56.3 |
8.4 |
Zhengzhou International New City III B |
118.8 |
118.0 |
0.8 |
Changsha Furong Thriving Family |
72.3 |
72.2 |
0.1 |
Chengdu Xinyuan City |
741.9 |
196.0 |
545.9 |
|
107.9 |
54.1 |
53.8 |
Xingyang Splendid IV |
151.8 |
60.8 |
91.0 |
|
62.6 |
62.6 |
- |
Zhengzhou Hangmei International Wisdom City II |
78.4 |
37.8 |
40.6 |
|
156.5 |
92.9 |
63.6 |
|
116.8 |
46.7 |
70.1 |
Xinyuan Golden Water View City-Zhengzhou |
331.4 |
78.1 |
253.3 |
Zhengzhou Fancy City III |
80.6 |
73.9 |
6.7 |
Zhengzhou International New City III C |
82.3 |
69.4 |
12.9 |
Zhengzhou International New City IV A12 |
199.7 |
179.3 |
20.4 |
Zhengzhou International New City IV B10 |
92.3 |
51.2 |
41.1 |
|
76.5 |
72.7 |
3.8 |
Suzhou Gusu Shade I |
12.0 |
8.6 |
3.4 |
Dalian International Health Technology Town I |
103.8 |
33.0 |
70.8 |
Xingyang Splendid V |
80.5 |
54.3 |
26.2 |
Suzhou Gusu Shade II ** |
14.3 |
6.9 |
7.4 |
Zhengzhou International New City V A04 |
104.9 |
22.1 |
82.8 |
|
141.4 |
21.9 |
119.5 |
Foshan Xinchuang AI International Science and |
194.4 |
12.7 |
181.7 |
Others |
55.1 |
- |
55.1 |
Total active projects |
6,058.8 |
4,110.5 |
1,948.3 |
* The Company owns a 16.66% equity interest in |
|||
** The Company owns a 19.99% equity interest in |
|||
*** The Company owns a 51% equity interest indirectly in |
As of
Unsold GFA as of (m2, 000s) |
Pre-sales Scheduled |
|
|
102.3 |
To be determined |
|
226.0 |
To be determined |
|
879.3 |
To be determined |
|
70.0 |
To be determined |
Lingshan Bay Dragon Seal-Qingdao |
380.0 |
To be determined |
|
181.5 |
To be determined |
|
185.0 |
To be determined |
Dalian International Health Technology Town II |
34.4 |
To be determined |
Foshan Xinchuang AI International Science and Technology Innovation Valley II |
262.4 |
To be determined |
Taizhou Yihe Yayuan * |
127.9 |
To be determined |
Suzhou He'an Garden ** |
156.6 |
To be determined |
Total projects under planning |
2,605.4 |
|
Total active projects |
1,948.3 |
|
Total of all Xinyuan unsold projects in |
4,553.7 |
|
* The Company owns 40% equity interest in |
||
** The Company owns 24% equity interest in |
Update on United States Real Estate Projects
At the Oosten project in
At the Hudson Garden project, BLOOM ON FORTY FIFTH, in the
The construction is currently ahead of schedule and under budget. The building will have 92 condominium units from floors two through seven with a unit mix consisting of 17 studios, 45 one-bedroom units, 24 two-bedroom units, 2 three-bedroom duplex units, 2 three-bedroom pent house units, and 2 four-bedroom duplex units. The onsite sales office and model apartments are expected to be fully furnished during the second quarter 2020 and ready to show to brokers and potential buyers. The residential unit sales strategy started with a first phase launch in
At the RKO project in
Update on the
During the fourth quarter of 2019, construction progressed as on schedule on the Madison project in
Of the 423 residential units in The Madison, all of the 104
Business Outlook
The company expects 2020 contract sales of 20 to
However, the above outlook is based on information available as of the date of this press release and reflects the Company's current expectations, which may be subject to change in light of uncertainties and situations related to how COVID-19 develops.
Conference Call Information
The Company will hold a conference call at
US Toll Free: |
1-800-263-0877 |
Toll/International: |
1-323-794-2094 |
Mainland China National: |
4001 209101 |
Hong Kong Toll Free: |
800 961 105 |
United Kingdom Toll Free: |
0800 358 6377 |
A webcast will also be available through the Company's investor relations website at http://ir.xyre.com.
A replay of the conference call may be accessed by phone at the following numbers until
US: |
1-844-512-2921 |
International: |
1-412-317-6671 |
Access code: |
7859451 |
A live and archived webcast of the conference call will be available at http://ir.xyre.com.
About Xinyuan Real Estate Co., Ltd.
Forward Looking Statements
Certain statements in this press release constitute "forward-looking statements". These statements are made under the "safe harbor" provisions of the
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:
Mr. Charles Wang
Investor Relations Director
Tel: +86 (10) 8588-9376
Email: irteam@xyre.com
In
Email: Julia@blueshirtgroup.com
In
Mobile: +86 (138) 1081-7475
Email: susie@blueshirtgroup.com
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(All US$ amounts and number of shares data in thousands, except per share data) |
||||||||
Three months ended |
||||||||
|
|
|
||||||
2019 |
2019 |
2018 |
||||||
(unaudited) |
(unaudited) |
(unaudited) |
||||||
Total revenue |
906,703 |
497,638 |
1,092,162 |
|||||
Total costs of revenue |
(760,161) |
(374,134) |
(773,943) |
|||||
Gross profit |
146,542 |
123,504 |
318,219 |
|||||
Selling and distribution expenses |
(25,655) |
(21,067) |
(45,000) |
|||||
General and administrative expenses |
(48,144) |
(36,556) |
(60,562) |
|||||
Operating income |
72,743 |
65,881 |
212,657 |
|||||
Interest income |
38,200 |
4,245 |
9,692 |
|||||
Interest expense |
(29,747) |
(31,338) |
(22,980) |
|||||
Net realized (loss)/gain on short-term investments |
(1,060) |
3,297 |
(7,237) |
|||||
Unrealized (loss) /gain on short-term investments |
(1,651) |
(811) |
3,208 |
|||||
Other income |
129 |
6,493 |
3,014 |
|||||
Net gain/(loss) on debt extinguishment |
235 |
(2,272) |
(21,444) |
|||||
Exchange gain/(loss) |
1,088 |
(7,655) |
652 |
|||||
Share of gain/(loss) of equity investees |
28 |
(2,142) |
(2,605) |
|||||
Income from operations before income taxes |
79,965 |
35,698 |
174,957 |
|||||
Income taxes |
(40,392) |
(30,256) |
(70,845) |
|||||
Net income |
39,573 |
5,442 |
104,112 |
|||||
Net income attributable to non-controlling interest |
(5,634) |
(1,298) |
(34,009) |
|||||
Net income attributable to |
33,939 |
4,144 |
70,103 |
|||||
Earnings per ADS: |
||||||||
Basic |
0.62 |
0.07 |
1.15 |
|||||
Diluted |
0.62 |
0.07 |
1.13 |
|||||
ADS used in computation: |
||||||||
Basic |
54,774 |
56,329 |
60,957 |
|||||
Diluted |
54,936 |
56,624 |
61,894 |
|
|||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
(All US$ amounts and number of shares data in thousands, except per share data) |
|||||
Twelve months ended |
|||||
|
|
||||
2019 |
2018 |
||||
(unaudited) |
(audited) |
||||
Total revenue |
2,482,633 |
2,217,551 |
|||
Total costs of revenue |
(1,922,323) |
(1,602,073) |
|||
Gross profit |
560,310 |
615,478 |
|||
Selling and distribution expenses |
(86,761) |
(83,592) |
|||
General and administrative expenses |
(163,687) |
(156,456) |
|||
Operating income |
309,862 |
375,430 |
|||
Interest income |
51,494 |
31,226 |
|||
Interest expense |
(113,775) |
(99,246) |
|||
Net realized gain/ (loss) on short-term investments |
3,075 |
(3,407) |
|||
Unrealized (loss)/gain on short-term investments |
(1,624) |
1,150 |
|||
Other income |
5,849 |
1,742 |
|||
Net loss on debt extinguishment |
(8,581) |
(21,444) |
|||
Exchange loss |
(7,376) |
(25,678) |
|||
Share of loss of equity investees |
(5,416) |
(9,374) |
|||
Income from operations before income taxes |
233,508 |
250,399 |
|||
Income taxes |
(150,478) |
(144,447) |
|||
Net income |
83,030 |
105,952 |
|||
Net income attributable to non-controlling interest |
(14,684) |
(32,917) |
|||
Net income attributable to |
68,346 |
73,035 |
|||
Earnings per ADS: |
|||||
Basic |
1.20 |
1.14 |
|||
Diluted |
1.20 |
1.14 |
|||
ADS used in computation: |
|||||
Basic |
56,741 |
63,565 |
|||
Diluted |
57,050 |
64,570 |
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(All US$ amounts and number of shares data in thousands) |
||||||||
|
|
|
||||||
2019 |
2019 |
2018 |
||||||
(unaudited) |
(unaudited) |
(audited) |
||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and restricted cash |
989,587 |
547,975 |
1,186,017 |
|||||
Short-term investments |
5,596 |
27 |
8,442 |
|||||
Accounts receivable |
97,912 |
61,812 |
64,130 |
|||||
Other receivables |
287,300 |
150,637 |
166,633 |
|||||
Deposits for land use rights |
26,375 |
- |
42,254 |
|||||
Other deposits and prepayments |
277,463 |
321,107 |
257,288 |
|||||
Advances to suppliers |
44,358 |
52,649 |
46,983 |
|||||
Real estate properties development completed |
458,205 |
461,419 |
632,360 |
|||||
Real estate properties under development |
3,254,388 |
3,589,814 |
4,068,716 |
|||||
Amounts due from related parties |
200,758 |
317,151 |
216,184 |
|||||
Amounts due from employees |
2,351 |
2,656 |
1,694 |
|||||
Other current assets |
772 |
4,771 |
520 |
|||||
Total current assets |
5,645,065 |
5,510,018 |
6,691,221 |
|||||
Bank deposit for long-term debt |
112,998 |
140,392 |
- |
|||||
Real estate properties held for lease, net |
515,869 |
428,737 |
302,764 |
|||||
Property and equipment, net |
43,004 |
43,394 |
38,114 |
|||||
Long-term investment |
613,620 |
578,733 |
564,340 |
|||||
Deferred tax assets |
260,153 |
205,633 |
230,453 |
|||||
Deposits for land use rights and properties |
32,969 |
21,208 |
21,855 |
|||||
Amounts due from related parties |
82,687 |
24,587 |
26,122 |
|||||
Contract assets |
23,093 |
21,118 |
21,779 |
|||||
Right-of-use assets |
11,801 |
11,252 |
- |
|||||
Other assets |
80,405 |
121,355 |
137,063 |
|||||
TOTAL ASSETS |
7,421,664 |
7,106,427 |
8,033,711 |
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(All US$ amounts and number of shares data in thousands) |
||||||||
|
|
|
||||||
2019 |
2019 |
2018 |
||||||
(unaudited) |
(unaudited) |
(audited) |
||||||
LIABILITIES AND |
||||||||
SHAREHOLDERS' EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable and notes payable |
1,166,660 |
782,573 |
790,631 |
|||||
Short-term bank loans and other debt |
73,419 |
28,383 |
43,711 |
|||||
Customer deposits |
1,106,099 |
1,367,391 |
1,921,851 |
|||||
Income tax payable |
298,228 |
165,489 |
213,273 |
|||||
Other payables and accrued liabilities |
323,164 |
297,603 |
341,108 |
|||||
Payroll and welfare payable |
24,224 |
18,717 |
33,752 |
|||||
Current portion of long-term bank loans and other debt |
1,418,955 |
981,182 |
1,647,918 |
|||||
Lease liability, current portion |
11,284 |
11,878 |
6,562 |
|||||
Mandatorily redeemable non-controlling interests |
8,857 |
7,852 |
22,559 |
|||||
Amounts due to related parties |
53,682 |
31,088 |
48,502 |
|||||
Total current liabilities |
4,484,572 |
3,692,156 |
5,069,867 |
|||||
Non-current liabilities |
||||||||
Long-term bank loans |
686,065 |
801,733 |
720,039 |
|||||
Other long-term debt |
1,036,691 |
1,400,396 |
1,040,455 |
|||||
Deferred tax liabilities |
338,593 |
403,125 |
370,509 |
|||||
Unrecognized tax benefits |
73,605 |
59,820 |
45,939 |
|||||
Lease liability |
10,187 |
10,805 |
10,015 |
|||||
Amounts due to related parties |
- |
28,764 |
31,242 |
|||||
TOTAL LIABILITIES |
6,629,713 |
6,396,799 |
7,288,066 |
|||||
Shareholders' equity |
||||||||
Common shares |
16 |
16 |
16 |
|||||
|
(113,720) |
(108,582) |
(87,639) |
|||||
Additional paid-in capital |
543,291 |
531,549 |
532,117 |
|||||
Statutory reserves |
175,008 |
166,501 |
166,496 |
|||||
Retained earnings |
135,873 |
115,593 |
99,502 |
|||||
Accumulated other comprehensive loss |
(50,167) |
(66,261) |
(30,122) |
|||||
|
690,301 |
638,816 |
680,370 |
|||||
Non-controlling interest |
101,650 |
70,812 |
65,275 |
|||||
Total equity |
791,951 |
709,628 |
745,645 |
|||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
7,421,664 |
7,106,427 |
8,033,711 |
View original content:http://www.prnewswire.com/news-releases/xinyuan-real-estate-co-ltd-announces-fourth-quarter-2019-financial-results-301034697.html
SOURCE