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 MAY 2016

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 o

 

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): o

 

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): o

 

 

 

 

 

This Form 6-K is hereby incorporated by reference into the registration statements of Xinyuan Real Estate Co., Ltd. (“Xinyuan” or the “Company”) on Form S-8 (Registration Numbers 333-152637, 333-198525 and 333-205371) and on Form F-3 (Registration Number 333-192046) and any outstanding prospectus, offering circular or similar document issued or authorized by the Company that incorporates by reference any of the Company’s reports on Form 6-K that are incorporated into its registration statements filed with the Securities and Exchange Commission, and this Form 6-K shall be deemed a part of each such document from the date on which this Form 6-K is filed, to the extent not superseded by documents or reports subsequently filed or furnished by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

 

 

TABLE OF CONTENTS

 

  Page
Signature 2
Exhibit Index 3
Exhibit 99.1 Xinyuan Real Estate Co., Ltd. Press Release dated May 10, 2016  

 

 

 

 

 

 

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/ Huaiyu Liu  
  Name: Huaiyu Liu  
  Title: Chief Financial Officer  

 

Date: May 10, 2016

 

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EXHIBIT INDEX

 

Exhibit Number   Description
Exhibit 99.1   Xinyuan Real Estate Co., Ltd. Press Release dated May 10, 2016

 

 

 

 

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Exhibit 99.1

 

Xinyuan Real Estate Co., Ltd. Announces First Quarter 2016 Financial Results

 

Raises Full Year Financial Forecast

1Q16 Contract Sales Up 51.2% YoY to US$279.6 Million

1Q16 Total GFA Sales Up 82.7% YoY to 206,600 Square Meters

1Q16 Net Income Up 53.3% YoY to US$6.9 Million

 

BEIJING, China, May 10, 2016 - Xinyuan Real Estate Co., Ltd. (“Xinyuan” or the “Company”) (NYSE: XIN), an NYSE-listed real estate developer and property manager primarily in China and recently in other countries, today announced its unaudited financial results for the first quarter ended March 31, 2016.

 

First Quarter 2016 Highlights

 

·Total first quarter revenue increased 41.2% to US$235.4 million from US$166.7 million in the first quarter of 2015.

 

·Contract sales increased 51.2% to US$279.6 million from US$184.9 million in the first quarter of 2015.

 

·Total gross floor area (“GFA”) sales increased 82.7% to 206,600 square meters from 113,100 square meters sold in the first quarter of 2015.

 

·Selling, General and Administrative (“SG&A”) expenses as a percent of total revenue decreased to 13.4% from 16.6% in the first quarter of 2015.

 

·Net income was US$6.9 million, compared to US$4.5 million in the first quarter of 2015.

 

·Diluted net earnings per American Depositary Share (“ADS”) attributable to shareholders were US$0.09, compared to US$0.06 in the first quarter of 2015.

 

·The Company repurchased 3,634,240 ADSs at a total cost of approximately US$14.2 million in the first quarter of 2016.

 

Mr. Yong Zhang, Xinyuan’s Chairman, stated, “We are very pleased to report another strong quarter as contract sales and net income increased significantly, up 51.2% year-over-year to US$279.6 million and up 53.3% to US$6.9 million, respectively. Our unit sales activity in the first quarter continued to benefit from favorable local and national government policies, including easing monetary policy and lower down payment requirements.

 

We are also pleased to further expand our presence in China and in overseas markets. In China, we acquired three land parcels in Beijing, Kunshan and Zhengzhou, respectively. These are markets that have favorable economic and population growth trends and where we have an existing presence and good track record of performance. While we continued to make good progress with our New York-based Oosten project, we added another well-located residential project in midtown Manhattan. We believe these new projects will help contribute to our future growth.

 

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On the financing front, the Company’s wholly-own subsidiary, Xinyuan (China) Real Estate, Ltd., completed the issue of its onshore corporate bonds in China during the first quarter, representing a total principal amount of RMB2.2 billion. These onshore bonds provide financing to Xinyuan at more favorable coupon rates than the past, reduce overall financing costs as well as our exposure to foreign currency risk. The Company also repurchased a total of 3,634,240 ADSs at a total cost of approximately US$14.2 million in the first quarter.

 

Finally, we continued to be active with our cash dividend and repurchase programs, as we remain committed to delivering value to our shareholders and expect to continue to pay quarterly cash dividends the remainder of this year.”

 

First Quarter 2016 Financial Results

 

Contract Sales

 

Contract sales totaled US$279.6 million in the first quarter compared to US$184.9 million in the first quarter of 2015. The Company’s GFA sales were 206,600 square meters in the first quarter of 2016 compared to 113,100 square meters in the first quarter of 2015. The average selling price ("ASP") per square meter sold was RMB8,839 (US$1,354) in the first quarter of 2016 compared to RMB10,031 (US$1,634) in the first quarter of 2015.

 

Breakdown of GFA Sales and ASPs by Project

 

Project Q1 2015 Q4 2015 Q1 2016 Unsold
GFA ASP GFA ASP GFA ASP GFA
(m2 000) (RMB) (m2 000) (RMB) (m2 000) (RMB) (m2 000)
Zhengzhou Xin City 5.5 13,995 0.8 12,908 0.1 4,393 4.8
Zhengzhou Thriving Family 8.3 6,961 0.1 6,054 0.2 6,169 16.2
Xingyang Splendid I 5.0 5,052 12.2 5,050 0.5 5,249 43.7
Xingyang Splendid II 0.1 11,688 4.4 4,983 0.9 5,599 128.8
Kunshan Royal Palace 14.3 8,672 34.5 9,465 24.6 11,096 55.9
Suzhou Lake Royal Palace 9.9 8,207 28.7 13,482 15.2 16,718 39.9
Jinan Xinyuan Splendid 6.8 10,284 1.8 8,122 0.7 10,498 10.6
Jinan Royal Palace 12.2 6,235 44.1 6,270 13.3 5,985 292.4
Xuzhou Colorful City 3.9 9,008 2.5 10,307 2.0 11,256 60.6
Beijing Xindo Park 12.2 22,934 31.6 12,674 - - 13.5
Chengdu Thriving Family 9.0 5,607 17.3 5,146 10.6 5,292 136.3
Changsha Xinyuan Splendid 7.4 5,165 33.1 5,421 24.6 5,486 144.6
Sanya Yazhou Bay No.1 2.0 13,404 1.7 10,915 - - 110.4
Xi’an Metropolitan 9.5 6,268 42.8 6,305 25.9 6,407 148.5
Shanghai Royal Palace 5.5 20,889 8.5 21,913 5.2 24,649 28.2
Zhengzhou Xindo Park - - 16.9 7,871 2.0 7,504 110.5
Jinan Xin Central - - 16.4 10,547 12.6 9,089 114.9
Henan Xin Central I - - 52.0 7,621 26.2 7,730 158.9
Zhengzhou Fancy City I - - 57.6 7,981 29.6 8,239 79.5
Tianjin Spring Royal Palace - - 14.0 8,599 12.8 9,032 247.4
Others 1.5 - -0.1 - -0.4 - 4.9
Total 113.1 10,031 420.9 8,493 206.6 8,839 1,950.5

 

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Revenue

In the first quarter of 2016, the Company’s total revenue increased 41.2% to US$235.4 million from US$166.7 million in the first quarter of 2015.

 

Gross Profit

Gross profit for the first quarter of 2016 was US$48.9 million, or 20.8% of revenue, compared to a gross profit of US$48.0 million, or 28.8% of revenue, in the first quarter of 2015.

 

Selling, General and Administrative Expenses

SG&A expenses were US$31.5 million for the first quarter of 2016 compared to US$27.7 million for the first quarter of 2015. As a percentage of total revenue, SG&A expenses were 13.4% compared to 16.6% in the first quarter of 2015.

 

Net Income

Net income for the first quarter of 2016 was US$6.9 million compared to US$4.5 million for the first quarter of 2015. Net margin was 2.9%, compared to 2.7% in the first quarter of 2015. Diluted earnings per ADS were US$0.09, compared to US$0.06 per ADS in the first quarter of 2015.

 

Balance Sheet

As of March 31, 2016, the Company’s cash and cash equivalents (including restricted cash) increased to US$1,028.6 million from US$750.7 million as of December 31, 2015. Total debt outstanding was US$2,149.6 million, an increase of US$421.2 million, compared to US$1,728.4 million at the end of the fourth quarter of 2015. The balance of the Company’s real estate property under development at the end of the first quarter of 2016 was US$2,042.7 million, compared to US$1,887.3 million at the end of the fourth quarter of 2015.

 

Real Estate Project Status in China

Below is a summary table of projects that were active and available for sale in the first quarter of 2016.

 

Project GFA Contract Sales  Project Cost % Complete  
(m2 000) (US$ millions)  
Total Active Project Sold to date Total Active Project Sales to date % Sold  
 
Zhengzhou Xin City 211.1 206.3 362.2 329.7 91.0% 93.9%  
Zhengzhou Thriving Family 131.5 115.3 154.3 127.5 82.6% 83.9%  
Xingyang Splendid I 117.3 73.6 85.3 57.6 67.5% 76.1%  
Xingyang Splendid II 136.9 8.1 131.9 9.6 7.3% 43.9%  
Kunshan Royal Palace 279.9 224.0 475.0 323.7 68.1% 88.2%  
Suzhou Lake Royal Palace 169.6 129.7 370.9 218.3 58.9% 93.9%  
Jinan Xinyuan Splendid 572.2 561.6 758.3 749.9 98.9% 99.1%  
Jinan Royal Palace 452.2 159.8 666.3 154.1 23.1% 58.7%  
Xuzhou Colorful City 130.2 69.6 197.8 97.0 49.0% 76.4%  
Beijing Xindo Park 132.9 119.4 459.9 368.7 80.2% 97.5%  
Chengdu Thriving Family 211.4 75.1 346.0 62.2 18.0% 83.6%  
Changsha Xinyuan Splendid 252.7 108.1 341.6 90.7 26.6% 72.1%  
Sanya Yazhou Bay No.1 122.0 11.6 292.2 24.3 8.3% 65.1%  
Xi’an Metropolitan 296.6 148.1 468.1 143.9 30.7% 63.0%  
Shanghai Royal Palace 57.8 29.6 284.1 99.8 35.1% 96.0%  
Zhengzhou Xindo Park 144.4 33.9 194.6 44.7 23.0% 50.8%  
Jinan Xin Central 194.7 79.8 369.3 115.5 31.3% 58.4%  
Henan Xin Central I 262.4 103.5 360.5 120.8 33.5% 52.0%  
Zhengzhou Fancy City I 166.7 87.2 234.5 107.7 45.9% 45.9%  
Tianjin Spring Royal Palace 274.3 26.9 399.4 36.2 9.1% 27.9%  
Others remaining GFA 4.9 - -  -  -  -   
Total active projects 4,321.7 2,371.2 6,952.2 3,281.9 47.2% 73.9%  

 

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As of March 31, 2016, the Company’s total sellable GFA was approximately 2,662,500 square meters for active projects and under planning stage projects in China. Below is a summary of all of the Company’s planning stage projects:

 

 

Unsold GFA

(m2 000)

Pre sales

Scheduled

 
   
Henan Xin Central II 108.9 Q3 2016  
Xingyang Splendid III 37.4 Q4 2016  
Zhengzhou Fancy City II 203.0 Q2 2016  
Zhengzhou Shilipu project 362.7 Q3 2016  
Total projects under planning 712.0    
Total active projects 1,950.5    
Total of all Xinyuan projects in China 2,662.5    

 

In April 2016, the Company acquired two land parcels, located in Tongzhou District, Beijing and Kunshan, Jiangsu province, with a total sellable GFA of approximately 102,302 square meters and 95,000 square meters, respectively.

 

Real Estate Project Update in the U.S.

 

During the first quarter of 2016, the Company continued to make good progress on its Oosten project based in Brooklyn, New York. As of the end of the first quarter, the Company had pre-sold approximately 69% of its total units. In addition, the Company successfully completed a new land acquisition in New York located in midtown Manhattan during the first quarter of 2016.

 

Business Outlook

 

For the full year 2016, based on first quarter results, the Company raises its previously announced financial forecast, now expecting full year contract sales to grow between 15% and 20% and net income to grow between 20% and 25% compared to 2015.

 

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Conference Call Information

The Company will hold a conference call at 8:00 am ET on May 10, 2016 to discuss first quarter 2016 results. Listeners may access the call by dialing:

US: 1-888-802-2239
International: 1-913-312-0682

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 May 17, 2016 by dialing:

US: 1-877-870-5176
International: 1-858-384-5517
Access code: 7390480

 

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, 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, Suzhou, among others. Xinyuan was one of the first Chinese real estate developers to enter the U.S. market and over the past few years has been active in real estate development in New York. 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.

 

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, 2015. 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.

 

 

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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.

Ms. May Shen
Investor Relations Director
Tel: +86 (10) 8588-9376

Email: irteam@xyre.com

 

 

ICR, LLC

In U.S.: +1-646-308-1472

In China: +86 (10) 6583-7511

Email: William.zima@icrinc.com

 

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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 
   March 31,   December 31,   March 31, 
   2016   2015   2015 
   (unaudited)   (unaudited)   (unaudited) 
             
Total revenue   235,384    413,586    166,718 
                
Total costs of revenue   (186,490)   (332,188)   (118,737)
Gross profit   48,894    81,398    47,981 
                
Selling and distribution expenses   (8,121)   (20,316)   (7,267)
General and administrative expenses   (23,408)   (34,863)   (20,398)
                
Operating income   17,365    26,219    20,316 
                
Interest income   8,471    6,260    5,448 
Interest expense   (5,000)   (5,310)   (5,459)
Net realized gain /(loss) on short-term investments   109    (239)   117 
Unrealized gain on short-term investments   920    13    22 
Other income   7    1,258    4,758 
Exchange gains   54    140    26 
Share of gain/(loss) of an equity investee   42    783    (88)
                
Income from operations before income taxes   21,968    29,124    25,140 
                
Income taxes   (15,073)   (10,009)   (20,632)
                
Net income   6,895    19,115    4,508 
Net loss/(income) attributable to non-controlling interest   (776)   1    (15)
Net income attributable to Xinyuan Real Estate Co., Ltd. shareholders   6,119    19,116    4,493 
                
Earnings per ADS:               
Basic   0.09    0.27    0.06 
Diluted   0.09    0.26    0.06 
ADS used in computation:               
Basic   68,613    70,126    73,513 
Diluted   71,345    72,838    73,579 

 

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XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(All US$ amounts and number of shares data in thousands)

 

   March 31,   December 31, 
   2016   2015 
   (unaudited)   (audited) 
ASSETS          
Current assets          
Cash and cash equivalents   454,313    387,528 
Restricted cash   574,295    363,137 
Short-term investment   13,041    1,245 
Accounts receivable   41,501    42,040 
Other receivables   146,732    147,652 
Deposits for land use rights   46,431    46,199 
Other deposits and prepayments   186,920    254,048 
Advances to suppliers   55,383    50,534 
Real estate property development completed   30,314    24,077 
Real estate property under development   2,042,690    1,887,322 
Amounts due from related parties   21,470    58,630 
Amounts due from employees   1,804    351 
Other current assets   238    201 
           
Total current assets   3,615,132    3,262,964 
           
Real estate properties held for lease, net   71,251    71,133 
Property and equipment, net   38,633    39,323 
Other long-term investment   31,340    31,108 
Investment in joint venture   7,639    6,125 
Deferred tax assets   28,505    15,489 
Deposits for land use rights   153,269    107,798 
Other assets   15,534    14,943 
           
TOTAL ASSETS   3,961,303    3,548,883 

 

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XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(All US$ amounts and number of shares data in thousands)

 

   March 31,   December 31, 
   2016   2015 
   (unaudited)   (audited) 
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current liabilities          
Accounts payable   441,164    471,176 
Short-term bank loans and other debt   308,897    222,226 
Customer deposits   57,021    64,452 
Income tax payable   96,010    106,034 
Deferred tax liabilities   72,995    57,692 
Other payables and accrued liabilities   139,703    106,127 
Payroll and welfare payable   7,333    22,966 
Current portion of long-term bank loans and other debt   851,524    594,834 
Current maturities of capital lease obligations   3,081    3,066 
Mandatorily redeemable non-controlling interests   2,786    2,310 
           
Total current liabilities   1,980,514    1,650,883 
           
Non- current liabilities          
Long-term bank loans   73,516    13,860 
Other long term debt   915,684    897,504 
Deferred tax liabilities   17,817    13,500 
Unrecognized tax benefits   17,976    17,842 
Capital lease obligations, net of current maturities   17,484    18,111 
Mandatorily redeemable non-controlling interests   1,238    1,232 
TOTAL LIABILITIES   3,024,229    2,612,932 
           
Shareholders’ equity          
Common shares   16    16 
Treasury shares   (38,216)   (24,046)
Additional paid-in capital   533,881    531,233 
Statutory reserves   79,927    80,050 
Retained earnings   320,374    317,765 
Accumulated other comprehensive income   38,456    30,952 
Total Xinyuan Real Estate Co., Ltd. shareholders’ equity   934,438    935,970 
Non-controlling interest   2,636    (19)
Total equity   937,074    935,951 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   3,961,303    3,548,883 

 

 

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