News Release

BEIJING, Feb. 27, 2015 /PRNewswire/ -- Xinyuan Real Estate Co., Ltd. ("Xinyuan" or the "Company") (NYSE: XIN), a residential real estate developer with a primary focus on high growth cities in China, today announced its unaudited financial results for the fourth quarter 2014.

Highlights for the Fourth Quarter 2014

• Total fourth quarter revenues were US$362.9 million, a 121.8% increase from US$163.6 million recorded in the third quarter of 2014 and a 25.5% increase from US$289.2 million recorded in the fourth quarter of 2013. Contract sales totaled US$402.6 million, a 140.1% increase from US$167.7 million recorded in the third quarter of 2014 and a 6.6% increase from US$377.5 million recorded in the fourth quarter of 2013.
• Total gross floor area ("GFA") sales were 252,200 square meters, a 151.4% increase from 100,300 square meters sold in the third quarter of 2014, and a 4.3% increase from 241,700 square meters sold in the fourth quarter of 2013.
• Selling, General, and Administrative ("SG&A") expenses as a percent of total revenue totaled 14.6% compared to 19.6% in the third quarter of 2014 and 12.1% in the fourth quarter of 2013.
• Net income was US$23.8 million, a 205.1% increase from US$7.8 million in the third quarter of 2014 and a 24.7% decrease from US$31.6 million reported in the fourth quarter of 2013.
• Diluted net earnings per American Depositary Share ("ADS") attributable to shareholders were US$0.34, compared to diluted net earnings per ADS of US$0.10 in the third quarter of 2014 and US$0.36 per ADS in the fourth quarter of 2013.
• The Company repurchased 1.43 million ADSs at a total cost of approximately US$3.9 million in the fourth quarter of 2014.

Mr. Yong Zhang, Xinyuan's Chairman said, "We are pleased to end 2014 with a very strong fourth quarter performance, as measured by our year-over-year contract sales and revenue growth, as we experienced a general improvement in project demand. As we have indicated throughout the year, our anticipated revenue and profit recognition for 2014 was back-end loaded, with the fourth quarter alone contributing 39%, 39% and 49% to total 2014 revenue, contract sales and net income. Despite challenging market conditions for the year, we still managed revenue and contract sales growth over 2013. While it is still early to forecast how quickly China's overall real estate market recovers, we are encouraged with our improved performance and believe the macro real estate environment continues to stabilize. With our continued focus on development projects in high growth cities, solid execution and stringent cost controls, we believe 2015 can be a very productive year for our business."

"2014 was a year of adjustment for our company as we invested in resources for our future development and growth. Our operational highlights for the full year include launching presales of ten development projects, acquiring eight projects for a total GFA of 1.83 million square meters and selectively entering into new geographic areas. The balance of our real estate property under development at the end of the fourth quarter increased to US$1.7 billion from US$1.6 billion at the end of the third quarter of 2014, reflecting 18 active development projects with another six projects that are expected to commence pre-sales in 2015. As of December 31, 2014, our total sellable GFA was approximately 3.08 million square meters, representing both active projects and projects in the planning stage, reaching a new record for Xinyuan."

"Finally, we want to express gratitude to our long-term shareholders for standing with Xinyuan during these turbulent times. In 2014, the Company distributed a dividend payment of US$0.05 per ADS each quarter. We also repurchased 4.5 million ADS at total cost of US$ 17.6 million for the full year. We remain committed to rewarding our shareholders in 2015 as we further scale our operations and grow Xinyuan into a leading real estate developer in China," concluded Mr. Zhang.

Financial Results for the Fourth quarter 2014

Contract Sales

Contract sales totaled US$402.6 million in the fourth quarter compared to US$167.7 million in the third quarter of 2014 and US$377.5 million in the fourth quarter of 2013. The Company's GFA sales were 252,200 square meters in the fourth quarter of 2014 versus 100,300 square meters in the third quarter of 2014 and 241,700 square meters in the fourth quarter of 2013. The average selling price ("ASP") per square meter sold was RMB9,806 (US$1,596) in the fourth quarter of 2014 versus 10,272 (US$1,672) in the third quarter of 2014 and RMB9,678 (US$1,562) in the fourth quarter of 2013.

Breakdown of GFA Sales and ASP's by Project

Revenue

In the fourth quarter of 2014, the Company's total revenue was US$362.9 million compared to US$163.6 million in the third quarter of 2014 and US$289.2 million in the fourth quarter of 2013.

Gross Profit

Gross profit for the fourth quarter of 2014 was US$96.1 million, or 26.5% of revenue, compared to a gross profit of US$43.5 million, or 26.6% of revenue, in the third quarter of 2014 and a gross profit of US$94.9 million, or 32.8% of revenue, in the fourth quarter of 2013.

Selling, General and Administrative Expenses

SG&A expenses were US$53.1 million for the fourth quarter of 2014 compared to US$32.1 million for the third quarter of 2014 and US$35.1 million for the fourth quarter of 2013. As a percentage of total revenue, SG&A expenses were 14.6% compared to 19.6% in the third quarter of 2014 and 12.1% in the fourth quarter of 2013. The increase of SG&A expenses compared to the third quarter 2014 was mainly due to four new projects beginning presales and a year-end bonus accrual in the fourth quarter.

Net Income

Net income for the fourth quarter of 2014 was US$23.8 million compared to US$7.8 million for the third quarter of 2014 and US$31.6 million for the fourth quarter of 2013. Net margin was 6.6%, compared to 4.8% in the third quarter of 2014 and 10.9% in the fourth quarter of 2013. Diluted earnings per ADS were US$0.34, compared to US$0.10per ADS in the third quarter of 2014 and to US$0.36 per ADS in the fourth quarter of 2013.

Financial Results for the Full Year 2014

For the year ended December 31, 2014, total revenues increased by 2.5% to US$919.7 million from US$897.7 million in 2013. GFA sales decreased by 5.5% to 629,100 square meters from 665,600 square meters in 2013. Contract sales increased by 4.1% to US$1,041.6 million from US$1,000.2 million in 2013.

Gross profit was US$242.2 million, or 26.3% of revenue in 2014 compared to a gross profit of US$299.0 million, or of 33.3% of revenue in 2013. The Company commenced presales on ten projects in 2014, while certain projects' margins were lower given the softer market environment.

SG&A expenses were US$145.1 million, or 15.8% of revenue, compared to US$85.2 million, or 9.5% of revenue in 2013. The increase in SG&A was mainly due to new project promotions and an increase in headcount related to business expansion efforts.

Net income was US$48.5 million in 2014 compared to US$126.4 million in 2013. Diluted earnings per ADS were US$0.66 in 2014 compared to US$1.70 per ADS in 2013.

Balance Sheet

As of December 31, 2014, the Company reported US$509.4 million in cash and cash equivalents (including restricted cash) compared to US$553.0 million as of September 30, 2014. Total debt outstanding was US$1,508.8 million, an increase of US$117.3 million compared to US$1,391.5 million at the end of the third quarter of 2014. The balance of the Company's real estate property under development at the end of the fourth quarter was US$1,711.7 million compared to US$1,599.1 million at the end of the third quarter of 2014.

Project Status

Below is a summary table of projects that were active and available for sale in the fourth quarter of 2014.

As of December 31, 2014, the Company's total sellable GFA was approximately 3,080,000 square meters for active projects and under planning stage projects in China, up 21.5% from 2,534,100 square meters as of the Company's last reporting earnings date. Below is a summary of all of the Company's planning stage projects:

New York Oosten Project Update

The Company's New York Oosten project has a total GFA of 37,078 square meters. As of December 31, 2014, 75% of the concrete superstructure has been completed. Xinyuan is scheduled to top out the entire superstructure in the first quarter of 2015, while work on the mechanical, plumbing and electrical systems have been carried out simultaneously as planned. The Company started pre-sales on a limited scope in the third quarter 2014. Pre-sales are proceeding well at a smooth but controlled pace, while Xinyuan makes an effort to balance the number of contract sales with strategically planned price increases given the pricing uptrend in the New York City housing market. As of December 31, 2014, the total contracted amount was approximately $90 million.

Conference Call Information

The Company will hold a conference call at 7:30 am ET on February 27, 2015 to discuss fourth quarter 2014 results. Listeners may access the call by dialing 1-913-312-1447. A webcast will also be available through the Company's investor relations website at http://www.xyre.com. A replay of the call will be available through March 6, 2015 by dialing 1-858-384-5517, access code: 3273370.

About Xinyuan Real Estate Co., Ltd.

Xinyuan Real Estate Co., Ltd. ("Xinyuan") (NYSE: XIN) is a developer of large scale, high quality residential real estate projects aimed at providing middle-income consumers with a comfortable and convenient community lifestyle. In China, Xinyuan primarily focuses its development projects in high growth cities, including Zhengzhou, Jinan, Suzhou, Kunshan, Xuzhou, Chengdu, Shanghai, Beijing, Tianjin, Changsha, Sanya, Xi'an and Hefei. The Company's U.S. development arm, XIN Development Group International, Inc., is a pioneer amongst Chinese real estate residential developers, entering the US market in 2012. Xinyuan is the first real estate developer from China to be listed on the New York Stock Exchange. 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, 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 into new geographic markets 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, 2013. 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.
Ms. Jing Ye
Investor Relations Director
Tel: +86 (10) 8588-9376
Email: irmanager@xyre.com

ICR, LLC
In U.S.: +1-646-308-1472
In China: +86 (10) 6583-7511
Email: William.zima@icrinc.com

SOURCE Xinyuan Real Estate Co., Ltd.

Related Links

http://www.xyre.com