UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
FOR THE MONTH OF AUGUST 2019
COMMISSION FILE NUMBER: 001-33863
XINYUAN REAL ESTATE CO., LTD.
27/F, China Central Place, Tower II
79 Jianguo Road, Chaoyang District
Beijing 100025
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
TABLE OF CONTENTS
Exhibits
| Exhibit 99.1 | Press release of Xinyuan Real Estate Co., Ltd., dated August 16, 2019, regarding second quarter 2019 financial results | |
| Exhibit 99.2 | Press release of Xinyuan Real Estate Co., Ltd., dated August 16, 2019, regarding dividend declaration |
Signature
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Xinyuan Real Estate Co., Ltd. | ||
| By: | /s/ Brian Yu Chen | |
| Name: | Brian Yu Chen | |
| Title: | CFO | |
Date: August 16, 2019
[Signature Page to Form 6-K]
Exhibit 99.1
Xinyuan Real Estate Co., Ltd. Announces Second Quarter 2019 Financial Results
BEIJING, China, August 16, 2019 - 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 in other countries, today announced its unaudited financial results for the second quarter ended June 30, 2019.
Highlights
| · | First half contract sales of 2019 increased 3.4% to RMB6,676.3 million from RMB6,457.0 million in the first half of 2018. |
| · | Contract sales decreased 20.0% to US$507.4 million from US$633.9 million in the second quarter of 2018 and increased 5.8% from US$479.7 million in the first quarter of 2019. |
| · | Total revenue increased 71.3% to US$609.4 million from US$355.8 million in the second quarter of 2018 and increased 30.0% from US$468.9 million in the first quarter of 2019. |
| · | Gross profit increased 45.5% to US$159.2 million from US$109.4 million in the second quarter of 2018 and increased 21.5% from US$131.0 million in the first quarter of 2019. |
| · | Selling, General and Administrative (“SG&A”) expenses as a percentage of total revenue decreased to 10.3% from 13.2% in the second quarter of 2018 and decreased from 12.0% in the first quarter of 2019. |
| · | Net income was US$19.8 million compared to net loss of US$9.3 million in the second quarter of 2018 and net income of US$18.2 million in the first quarter of 2019. |
| · | Current debt outstanding decreased 33.8% to US$1,207.2 million, or 33.6% of the total debt, from US$1,823.7 million, or 51.9% of the total debt, in the first quarter of 2019. |
| · | Diluted net earnings per American Depositary Share (“ADS”) attributable to shareholders were US$0.19 compared to diluted net loss of US$0.10 per ADS in the second quarter of 2018 and diluted net earnings of US$0.33 per ADS in the first quarter of 2019. |
1
Mr. Yong Zhang, Xinyuan’s Chairman, stated, “In the first half of 2019, Xinyuan maintained stable growth and commenced pre-sales of three new projects in China. The total value of contracts signed in the first half was RMB7,323.2 million, representing a 12.0% increase compared to RMB6,537.4 million in the first half of 2018. Thanks to the outstanding sales performance, the company has achieved top- and bottom-line growth despite downward pressure on sales across the industry. In the first half of 2019, total revenue increased 103.5% year over year. Moreover, we were able to reduce SG&A expenses as a percentage of total revenue to 11.0% in the first half from 16.4% in the first half of 2018. As a result, gross profit increased by 96.0% year over year, and net income was US$38.0 million compared to a net loss of US$22.0 million in the first half of 2018. Furthermore, our overseas projects continued to proceed as planned, and presales of our Manhattan project are expected to launch at the end of the fourth quarter of 2019.
“At the same time, we are seeing a lasting impact from changes in the macro-economic environment and stringent government restriction policies on the Chinese housing market. However, we believe that our strategic focus on high quality tier-one and tier-two city projects as well as our strong execution capabilities enable us to further solidify our leading market position and deliver sustainable long-term growth. We remain committed to controlling our financial leverage and maximizing Xinyuan’s financial health. We are also pleased to offer another quarterly dividend payment to our shareholders,” concluded Mr. Zhang.
Second Quarter 2019 Financial Results
Contract Sales
Contract sales in China totaled US$507.4 million in the second quarter compared to US$630.3 million in the second quarter of 2018 and US$478.9 million in the first quarter of 2019.
The Company’s GFA sales in China were 233,200 square meters in the second quarter of 2019 compared to 282,900 square meters in the second quarter of 2018 and 211,400 square meters in the first quarter of 2019.
The average selling price (“ASP”) per square meter sold in China was RMB14,755 (US$2,176) in the second quarter of 2019 compared to RMB14,173 (US$2,226) in the second quarter of 2018 and RMB15,269 (US$2,264) in the first quarter of 2019.
The Company commenced pre-sales of two new projects in the second quarter of 2019, Xinyang Splendid V, Suzhou Gusu Shade II. The presales contributed 5.9% and 3.6% of total GFA sales and total contract sales, respectively.
2
Breakdown of GFA Sales and ASPs by Project in China
| Q2 2018 | Q1 2019 | Q2 2019 | ||||||||||||||||||||||
| GFA | ASP | GFA | ASP | GFA | ASP | |||||||||||||||||||
| Project | (m2, 000s) | (RMB) | (m2, 000s) | (RMB) | (m2, 000s) | (RMB) | ||||||||||||||||||
| Xingyang Splendid II | 0.3 | 9,939 | 10.2 | 7,478 | 3.6 | 7,330 | ||||||||||||||||||
| Jinan Royal Palace | 27.4 | 16,341 | 1.6 | 15,661 | 2.8 | 14,739 | ||||||||||||||||||
| Xuzhou Colorful City | 0.8 | 10,495 | - | - | 0.7 | 14,541 | ||||||||||||||||||
| Chengdu Thriving Family | 1.3 | 16,011 | (0.1 | ) | 7,729 | - | - | |||||||||||||||||
| Changsha Xinyuan Splendid | 3.7 | 15,869 | - | - | 0.1 | 18,658 | ||||||||||||||||||
| Sanya Yazhou Bay No.1 | 12.0 | 25,758 | 0.4 | 25,615 | 0.3 | 38,158 | ||||||||||||||||||
| Xi’an Metropolitan | 4.5 | 7,480 | 0.6 | 11,253 | 0.1 | 12,896 | ||||||||||||||||||
| Zhengzhou Xindo Park | 0.4 | 7,560 | - | - | 0.7 | 8,661 | ||||||||||||||||||
| Jinan Xin Central | 9.2 | 14,073 | 0.1 | 13,170 | 0.1 | 18,954 | ||||||||||||||||||
| Henan Xin Central I | 1.0 | 15,342 | 0.1 | 14,887 | 0.7 | 7,942 | ||||||||||||||||||
| Zhengzhou Fancy City I | 1.2 | 10,989 | (1.4 | ) | 15,073 | 0.5 | 13,714 | |||||||||||||||||
| Zhengzhou Fancy City II (South) | 0.8 | 14,103 | (0.1 | ) | 12,660 | (0.1 | ) | 9,469 | ||||||||||||||||
| Tianjin Spring Royal Palace I | 0.1 | 16,294 | - | - | - | - | ||||||||||||||||||
| Zhengzhou International New City I | 6.0 | 25,102 | - | - | - | - | ||||||||||||||||||
| Henan Xin Central II | 6.2 | 12,351 | - | - | 0.1 | 15,932 | ||||||||||||||||||
| Xingyang Splendid III | 13.2 | 7,934 | 0.4 | 7,046 | 0.3 | 8,091 | ||||||||||||||||||
| Zhengzhou International New City II | 1.7 | 13,671 | - | - | 0.5 | 18,997 | ||||||||||||||||||
| Zhengzhou Fancy City II (North) | 35.3 | 9,801 | 3.5 | 9,838 | 2.8 | 9,884 | ||||||||||||||||||
| Tianjin Spring Royal Palace II | 11.5 | 14,124 | 8.1 | 12,670 | 10.8 | 13,496 | ||||||||||||||||||
| Zhengzhou International New City III D | 29.6 | 14,282 | (0.1 | ) | 14,461 | 0.6 | 14,045 | |||||||||||||||||
| Zhengzhou Hangmei International Wisdom City I | 16.2 | 7,195 | 2.3 | 7,144 | 1.8 | 6,845 | ||||||||||||||||||
| Zhengzhou International New City III B | 51.3 | 13,996 | 0.8 | 13,262 | 0.7 | 15,174 | ||||||||||||||||||
| Chengdu Xinyuan City | - | - | 33.1 | 9,511 | 2.7 | 7,585 | ||||||||||||||||||
| Kunshan Xinyu Jiayuan | - | - | 5.5 | 24,208 | 13.0 | 23,660 | ||||||||||||||||||
| Xingyang Splendid IV | - | - | 1.0 | 7,027 | 0.3 | 7,326 | ||||||||||||||||||
| Suzhou Suhe Bay * | - | - | 30.0 | 21,680 | 8.5 | 21,461 | ||||||||||||||||||
| Zhengzhou Hangmei International Wisdom City II | - | - | 0.5 | 7,350 | 9.3 | 7,394 | ||||||||||||||||||
| Qingdao Royal Dragon Bay | - | - | 15.3 | 20,285 | 28.8 | 19,797 | ||||||||||||||||||
| Jinan Royal Spring Bay | - | - | 2.7 | 9,201 | 4.0 | 8,777 | ||||||||||||||||||
| Xinyuan Golden Water View City-Zhengzhou | - | - | 19.0 | 18,817 | 8.3 | 19,740 | ||||||||||||||||||
| Zhengzhou Fancy City III | - | - | 20.5 | 12,637 | 8.5 | 12,729 | ||||||||||||||||||
| Zhengzhou International New City III C | - | - | 17.3 | 12,260 | 15.7 | 12,459 | ||||||||||||||||||
| Zhengzhou International New City IV A12 | - | - | 24.8 | 14,254 | 34.8 | 14,224 | ||||||||||||||||||
| Zhengzhou International New City IV B10 | - | - | 7.9 | 13,969 | 15.5 | 10,698 | ||||||||||||||||||
| Suzhou Galaxy Bay | - | - | 2.4 | 13,790 | 34.6 | 14,227 | ||||||||||||||||||
| Suzhou Gusu Shade I | - | - | 0.8 | 36,262 | 5.6 | 37,678 | ||||||||||||||||||
| Dalian International Health Technology Town I | - | - | 0.1 | 13,618 | 0.4 | 10,421 | ||||||||||||||||||
| Xingyang Splendid V | - | - | - | - | 13.1 | 7,629 | ||||||||||||||||||
| Suzhou Gusu Shade II ** | - | - | - | - | 0.6 | 38,893 | ||||||||||||||||||
| Others | 49.2 | - | 4.1 | - | 2.4 | - | ||||||||||||||||||
| Total | 282.9 | 14,173 | 211.4 | 15,269 | 233.2 | 14,755 | ||||||||||||||||||
* The Company owns 16.66% equity interest in Suzhou Hengwan Real Estate Co., Ltd., which develops Suzhou Suhe Bay. The Company accounts for its investment under the equity method.
** The Company owns 19.99% equity interest in Suzhou Litai Real Estate Co., Ltd., which develops Suzhou Gusu Shade II. The Company accounts for its investment under the equity method.
3
Revenue
In the second quarter of 2019, the Company’s total revenue increased 71.3% to US$609.4 million from US$355.8 million in the second quarter of 2018 and increased 30.0% from US$468.9 million in the first quarter of 2019.
Gross Profit
Gross profit for the second quarter of 2019 was US$159.2 million, or 26.1% of total revenue, compared to a gross profit of US$109.4 million, or 30.7% of total revenue, in the second quarter of 2018 and a gross profit of US$131.0 million, or 28.0% of total revenue, in the first quarter of 2019.
Selling, General and Administrative Expenses
SG&A expenses were US$63.0 million for the second quarter of 2019 compared to US$47.0 million for the second quarter of 2018 and US$56.1 million for the first quarter of 2019. As a percentage of total revenue, SG&A expenses were 10.3% compared to 13.2% in the second quarter of 2018 and 12.0% in the first quarter of 2019.
Net Income
Net income for the second quarter of 2019 was US$19.8 million compared to net loss of US$9.3 million for the second quarter of 2018 and net income of US$18.2 million for the first quarter of 2019. Net margin was 3.3% compared to negative 2.6% in the second quarter of 2018 and 3.9% in the first quarter of 2019. Diluted net earnings per ADS were US$0.19 compared to diluted net loss of US$0.10 per ADS in the second quarter of 2018 and diluted net earnings of US$0.33 per ADS in the first quarter of 2019.
Balance Sheet
As of June 30, 2019, the Company’s cash and cash equivalents (including restricted cash) decreased to US$1,021.8 million from US$1,127.2 million as of March 31, 2019.
Total debt outstanding was US$3,595.0 million, which reflects an increase of US$81.2 million from US$3,513.8 million at the end of the first quarter of 2019. The balance of the Company’s real estate properties under development at the end of the second quarter of 2019 was US$3,844.0 million compared to US$4,002.0 million at the end of the first quarter of 2019.
4
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 2019.
| GFA | ||||||||||||
| (m2 ’000s) | ||||||||||||
| Project | Total Active Projects |
Sold through June 30, 2019 |
Unsold as of June 30, 2019 |
|||||||||
| Xingyang Splendid II | 136.9 | 97.5 | 39.4 | |||||||||
| Jinan Royal Palace | 449.6 | 431.7 | 17.9 | |||||||||
| Xuzhou Colorful City | 130.8 | 122.2 | 8.6 | |||||||||
| Chengdu Thriving Family | 203.4 | 198.0 | 5.4 | |||||||||
| Changsha Xinyuan Splendid | 251.7 | 249.0 | 2.7 | |||||||||
| Sanya Yazhou Bay No.1 | 117.6 | 101.4 | 16.2 | |||||||||
| Xi’an Metropolitan | 286.0 | 269.7 | 16.3 | |||||||||
| Zhengzhou Xindo Park | 134.1 | 132.7 | 1.4 | |||||||||
| Jinan Xin Central | 194.4 | 183.5 | 10.9 | |||||||||
| Henan Xin Central I | 262.2 | 253.2 | 9.0 | |||||||||
| Zhengzhou Fancy City I | 166.7 | 159.4 | 7.3 | |||||||||
| Zhengzhou Fancy City II (South) | 84.1 | 81.7 | 2.4 | |||||||||
| Tianjin Spring Royal Palace I | 139.7 | 131.3 | 8.4 | |||||||||
| Zhengzhou International New City I | 360.7 | 338.5 | 22.2 | |||||||||
| Henan Xin Central II | 109.5 | 103.9 | 5.6 | |||||||||
| Xingyang Splendid III | 121.1 | 116.6 | 4.5 | |||||||||
| Zhengzhou International New City II | 176.0 | 163.7 | 12.3 | |||||||||
| Zhengzhou Fancy City II (North) | 108.7 | 90.9 | 17.8 | |||||||||
| Tianjin Spring Royal Palace II | 144.6 | 72.1 | 72.5 | |||||||||
| Zhengzhou International New City III D | 46.1 | 44.2 | 1.9 | |||||||||
| Zhengzhou Hangmei International Wisdom City I | 64.7 | 54.9 | 9.8 | |||||||||
| Zhengzhou International New City III B | 118.8 | 117.7 | 1.1 | |||||||||
| Chengdu Xinyuan City | 742.0 | 109.9 | 632.1 | |||||||||
| Kunshan Xinyu Jiayuan | 107.9 | 42.1 | 65.8 | |||||||||
| Xingyang Splendid IV | 22.0 | 22.0 | - | |||||||||
| Suzhou Suhe Bay * | 62.6 | 62.5 | 0.1 | |||||||||
| Zhengzhou Hangmei International Wisdom City II | 68.8 | 24.0 | 44.8 | |||||||||
| Qingdao Royal Dragon Bay | 157.3 | 64.6 | 92.7 | |||||||||
| Jinan Royal Spring Bay | 116.8 | 24.9 | 91.9 | |||||||||
| Xinyuan Golden Water View City-Zhengzhou | 331.5 | 63.2 | 268.3 | |||||||||
| Zhengzhou Fancy City III | 80.6 | 45.8 | 34.8 | |||||||||
| Zhengzhou International New City III C | 79.9 | 61.6 | 18.3 | |||||||||
| Zhengzhou International New City IV A12 | 198.4 | 68.9 | 129.5 | |||||||||
| Zhengzhou International New City IV B10 | 92.3 | 23.4 | 68.9 | |||||||||
| Suzhou Galaxy Bay | 76.5 | 61.3 | 15.2 | |||||||||
| Suzhou Gusu Shade I | 12.0 | 6.6 | 5.4 | |||||||||
| Dalian International Health Technology Town I | 103.8 | 1.3 | 102.5 | |||||||||
| Xingyang Splendid V | 80.5 | 13.1 | 67.4 | |||||||||
| Suzhou Gusu Shade II ** | 14.3 | 0.6 | 13.7 | |||||||||
| Others | 42.1 | - | 42.1 | |||||||||
| Total active projects | 6,196.7 | 4,209.6 | 1,987.1 | |||||||||
* The Company owns 16.66% equity interest in Suzhou Hengwan Real Estate Co., Ltd., which develops Suzhou Suhe Bay. The Company accounts for its investment under the equity method.
** The Company owns 19.99% equity interest in Suzhou Litai Real Estate Co., Ltd., which develops Suzhou Gusu Shade II. The Company accounts for its investment under the equity method.
5
As of June 30, 2019, the Company’s total saleable GFA was approximately 5,224,600 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 as of June 30, 2019 (m2 ’000s) |
Pre-sales Scheduled | |||||
| Tongzhou Xinyuan Royal Palace-Beijing | 102.3 | To be determined | ||||
| Xinyuan Chang’an Royal Palace-Xi’an | 226.0 | To be determined | ||||
| Zhengzhou International New City Land Bank (all land is grouped together and will be developed gradually) | 1,300.3 | To be determined | ||||
| Zhuhai Xin World | 70.0 | To be determined | ||||
| Lingshan Bay Dragon Seal-Qingdao | 380.0 | To be determined | ||||
| Zhengzhou Hangmei Project Land Bank (all land is grouped together and will be developed gradually) | 191.1 | To be determined | ||||
| Wuhan Hidden Dragon Royal Palace (old name: Wuhan Canglong Royal Palace) | 185.0 | To be determined | ||||
| Dalian International Health Technology Town II | 34.4 | To be determined | ||||
| Huzhou Silk Town * | 144.1 | 2019 Q3 | ||||
| Xingyang Splendid New Project | 147.5 | To be determined | ||||
| Foshan Xinchuang AI International Science and Technology Innovation Valley | 456.8 | To be determined | ||||
| Total projects under planning | 3,237.5 | |||||
| Total active projects | 1,987.1 | |||||
| Total of all Xinyuan unsold projects in China | 5,224.6 | |||||
* The Company owns 51% equity interest indirectly in Huzhou Xinhong Renju Construction Development Co., Ltd., which develops Huzhou Silk Town. Based on the articles of association, the company cannot exercise control of Huzhou Silk Town, but has the ability to exercise significant influence over Huzhou Silk Town's operating and financial decisions and accounted for it as an equity method investment.
Update on Real Estate Projects in the United States
As of June 30, 2019, a total of 177 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$260.1 million.
During the second quarter, the Company completed superstructure construction and closed out 90% of the external wall and windows for the Hudson Garden project, BLOOM ON FORTY FIFTH, in the Hell’s Kitchen area of Manhattan, New York City. During the past year, the design drawings were optimized, increasing the number of units from 82 to 92. Of the 38,000 square feet of retail/commercial space, a total of 29,000 square feet have been leased to the U.S. department store retailer Target for a 20-year term. The offering plan was approved in the first quarter of 2019, and the launch of presales is expected to begin in the end of the fourth quarter of 2019.
The Company continued to execute on the planning, governmental approvals, and pre-development activities of its ground-up project, the RKO, in Flushing, New York City. During the past year, the Landmark Preservation Committee approved the Company’s landmark protection plan relating to the landmarked theater on site and awarded the Company a Certificate of Appropriateness. Landmark artifact removal was completed at the end of February 2019, and the artifacts are currently stored in a warehouse for restoration work.
Real Estate Project Update in the United Kingdom
During the second quarter of 2019, the structural frame of the Company’s Madison project in London was completed, reaching a significant milestone for the delivery of the project. 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, 134 apartments have been sold.
6
Business Outlook
For the full year of 2019, the Company expects an increase in contract sales of about 10% and an increase in consolidated net income of 15% to 20% over 2018.
Conference Call Information
The Company will hold a conference call at 8:00 am ET on August 16, 2019, to discuss its second quarter 2019 results. Listeners may access the call by dialing:
US Toll Free: 1-800-458-4121
International: 1-323-794-2597
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 23, 2019, by dialing:
US: 1-844-512-2921
International: 1-412-317-6671
Access code: 5806910
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, 2018. 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.
7
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
8
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, | ||||||||||
| 2019 | 2019 | 2018 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Total revenue | 609,439 | 468,853 | 355,832 | |||||||||
| Total costs of revenue | (450,224 | ) | (337,804 | ) | (246,452 | ) | ||||||
| Gross profit | 159,215 | 131,049 | 109,380 | |||||||||
| Selling and distribution expenses | (20,633 | ) | (19,406 | ) | (14,135 | ) | ||||||
| General and administrative expenses | (42,343 | ) | (36,644 | ) | (32,888 | ) | ||||||
| Operating income | 96,239 | 74,999 | 62,357 | |||||||||
| Interest income | 4,964 | 4,085 | 7,100 | |||||||||
| Interest expense | (28,384 | ) | (24,306 | ) | (24,704 | ) | ||||||
| Net realized (loss) /gain on short-term investments | (333 | ) | 1,171 | 474 | ||||||||
| Unrealized gain/ (loss) on short-term investments | 838 | - | (696 | ) | ||||||||
| Other (expense)/ income | (867 | ) | 94 | (1,037 | ) | |||||||
| Net loss on debt extinguishment | (1,955 | ) | (4,589 | ) | - | |||||||
| Exchange (loss)/ gain | (4,354 | ) | 3,545 | (22,518 | ) | |||||||
| Share of loss of equity investees | (1,702 | ) | (1,600 | ) | (3,227 | ) | ||||||
| Income from operations before income taxes | 64,446 | 53,399 | 17,749 | |||||||||
| Income taxes | (44,621 | ) | (35,209 | ) | (27,046 | ) | ||||||
| Net income/(loss) | 19,825 | 18,190 | (9,297 | ) | ||||||||
| Net (income) /loss attributable to non-controlling interest | (9,171 | ) | 1,419 | 2,506 | ||||||||
| Net income/(loss) attributable to Xinyuan Real Estate Co., Ltd. shareholders | 10,654 | 19,609 | (6,791 | ) | ||||||||
| Earnings/(loss) per ADS: | ||||||||||||
| Basic | 0.19 | 0.33 | (0.10 | ) | ||||||||
| Diluted | 0.19 | 0.33 | (0.10 | ) | ||||||||
| ADS used in computation: | ||||||||||||
| Basic | 57,003 | 58,911 | 64,803 | |||||||||
| Diluted | 57,371 | 59,325 | 65,877 | |||||||||
9
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, | |||||||
| 2019 | 2018 | |||||||
| (unaudited) | (unaudited) | |||||||
| Total revenue | 1,078,292 | 529,929 | ||||||
| Total costs of revenue | (788,028 | ) | (381,846 | ) | ||||
| Gross profit | 290,264 | 148,083 | ||||||
| Selling and distribution expenses | (40,039 | ) | (26,309 | ) | ||||
| General and administrative expenses | (78,987 | ) | (60,481 | ) | ||||
| Operating income | 171,238 | 61,293 | ||||||
| Interest income | 9,049 | 13,450 | ||||||
| Interest expense | (52,690 | ) | (54,489 | ) | ||||
| Net realized gain on short-term investments | 838 | 1,711 | ||||||
| Unrealized gain/ (loss) on short-term investments | 838 | (937 | ) | |||||
| Other expense | (773 | ) | (830 | ) | ||||
| Loss on extinguishment of debt | (6,544 | ) | - | |||||
| Exchange loss | (809 | ) | (10,879 | ) | ||||
| Share of loss of equity investees | (3,302 | ) | (4,149 | ) | ||||
| Income from operations before income taxes | 117,845 | 5,170 | ||||||
| Income taxes | (79,830 | ) | (27,187 | ) | ||||
| Net income/(loss) | 38,015 | (22,017 | ) | |||||
| Net (income)/ loss attributable to non-controlling interest | (7,752 | ) | 4,821 | |||||
| Net income/(loss) attributable to Xinyuan Real Estate Co., Ltd. shareholders | 30,263 | (17,196 | ) | |||||
| Earnings/(loss) per ADS: | ||||||||
| Basic | 0.52 | (0.27 | ) | |||||
| Diluted | 0.52 | (0.26 | ) | |||||
| ADS used in computation: | ||||||||
| Basic | 57,950 | 64,803 | ||||||
| Diluted | 58,309 | 66,082 | ||||||
10
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, | ||||||||||
| 2019 | 2019 | 2018 | ||||||||||
| (unaudited) | (unaudited) | (audited) | ||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 666,057 | 761,190 | 674,142 | |||||||||
| Restricted cash | 355,776 | 366,008 | 511,875 | |||||||||
| Short-term investments | 838 | - | 8,442 | |||||||||
| Accounts receivable | 73,158 | 44,473 | 64,130 | |||||||||
| Other receivables | 176,299 | 171,271 | 166,633 | |||||||||
| Deposits for land use rights | 22,546 | 46,038 | 42,254 | |||||||||
| Other deposits and prepayments | 297,863 | 258,490 | 257,288 | |||||||||
| Advances to suppliers | 51,550 | 47,909 | 46,983 | |||||||||
| Real estate properties development completed | 714,651 | 623,871 | 632,360 | |||||||||
| Real estate properties under development | 3,843,980 | 4,001,981 | 4,068,716 | |||||||||
| Amounts due from related parties | 313,532 | 257,625 | 216,184 | |||||||||
| Amounts due from employees | 2,955 | 4,315 | 1,694 | |||||||||
| Other current assets | 1,334 | 602 | 520 | |||||||||
| Total current assets | 6,520,539 | 6,583,773 | 6,691,221 | |||||||||
| Real estate properties held for lease, net | 297,565 | 305,897 | 302,764 | |||||||||
| Property and equipment, net | 35,725 | 37,512 | 38,114 | |||||||||
| Long-term investment | 552,312 | 566,816 | 564,340 | |||||||||
| Deferred tax assets | 206,511 | 241,823 | 230,453 | |||||||||
| Deposits for land use rights | 21,819 | 22,276 | 21,855 | |||||||||
| Amounts due from related parties | 24,632 | 27,289 | 26,122 | |||||||||
| Contract assets | 20,316 | 16,292 | 21,779 | |||||||||
| Operating lease right-of-use assets | 12,920 | 14,039 | - | |||||||||
| Other assets | 131,910 | 135,710 | 137,063 | |||||||||
| TOTAL ASSETS | 7,824,249 | 7,951,427 | 8,033,711 | |||||||||
11
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, | ||||||||||
| 2019 | 2019 | 2018 | ||||||||||
| (unaudited) | (unaudited) | (audited) | ||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Accounts payable and notes payable | 833,073 | 704,397 | 790,631 | |||||||||
| Short-term bank loans and other debt | 35,901 | 27,326 | 43,711 | |||||||||
| Customer deposits | 1,573,859 | 1,827,630 | 1,921,851 | |||||||||
| Income tax payable | 165,737 | 198,148 | 213,273 | |||||||||
| Other payables and accrued liabilities | 340,145 | 341,919 | 341,108 | |||||||||
| Payroll and welfare payable | 16,529 | 12,812 | 33,752 | |||||||||
| Current portion of long-term bank loans and other debt | 1,207,191 | 1,823,724 | 1,647,918 | |||||||||
| Current maturities of lease obligations | 12,320 | 12,604 | 6,562 | |||||||||
| Mandatorily redeemable non-controlling interests | 6,905 | 22,892 | 22,559 | |||||||||
| Amounts due to related parties | 32,224 | 41,204 | 48,502 | |||||||||
| Total current liabilities | 4,223,884 | 5,012,656 | 5,069,867 | |||||||||
| Non-current liabilities | ||||||||||||
| Long-term bank loans | 732,874 | 790,267 | 720,039 | |||||||||
| Other long-term debt | 1,619,007 | 872,468 | 1,040,455 | |||||||||
| Deferred tax liabilities | 393,541 | 412,354 | 370,509 | |||||||||
| Unrecognized tax benefits | 58,922 | 45,939 | 45,939 | |||||||||
| Lease obligations, net of current maturities | 13,645 | 16,530 | 10,015 | |||||||||
| Amounts due to related parties | 28,879 | 32,537 | 31,242 | |||||||||
| TOTAL LIABILITIES | 7,070,752 | 7,182,751 | 7,288,066 | |||||||||
| Shareholders’ equity | ||||||||||||
| Common shares | 16 | 16 | 16 | |||||||||
| Treasury shares | (104,233 | ) | (97,934 | ) | (87,639 | ) | ||||||
| Additional paid-in capital | 533,366 | 532,641 | 532,117 | |||||||||
| Statutory reserves | 166,501 | 166,501 | 166,496 | |||||||||
| Retained earnings | 117,904 | 112,660 | 99,502 | |||||||||
| Accumulated other comprehensive loss | (32,957 | ) | (10,409 | ) | (30,122 | ) | ||||||
| Total Xinyuan Real Estate Co., Ltd. shareholders’ equity | 680,597 | 703,475 | 680,370 | |||||||||
| Non-controlling interest | 72,900 | 65,201 | 65,275 | |||||||||
| Total equity | 753,497 | 768,676 | 745,645 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 7,824,249 | 7,951,427 | 8,033,711 | |||||||||
12
Exhibit 99.2
Xinyuan Real Estate Co., Ltd. Announces Second Quarterly Dividend for 2019
BEIJING, August 16, 2019 – 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 that its Board of Directors has declared a cash dividend for the second quarter of 2019 of US$0.05 per common share, or US$0.10 per American Depositary Share, which will be payable on September 17, 2019 to shareholders of record as of September 3, 2019.
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 in other countries. In China, the Company 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. The Company 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.
For more information, please contact:
Xinyuan Real Estate Co., Ltd.
Mr. Charles Wang
Investor Relations Director
Tel: +86 (10) 8588-9376
Email: irteam@xyre.com
ICR, LLC
Investors:
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