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

Under the Securities Exchange Act of 1934

 

FOR THE MONTH OF DECEMBER 2023

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 ¨

 

 

 

 

 

Exhibit Index

 

Exhibit No. Description
   
99.1 Press Release of Xinyuan Real Estate Co., Ltd. dated December 27, 2023

 

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SIGNATURES

 

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/ Yong Zhang
  Name: Yong Zhang
  Title: CEO

 

Date: December 27, 2023

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Exhibit 99.1

 

Xinyuan Real Estate Co., Ltd. Announces First Half 2023 Financial Results

 

Beijing, December 27, 2023 -- Xinyuan Real Estate Co., Ltd. (“Xinyuan” or “the Company”) (NYSE: XIN), an NYSE-listed real estate developer operating primarily in China with projects in the United States, today announced its unaudited financial results for the six months ended June 30, 2023.

 

First Half of 2023 Highlights

 

Gross profit increased by US$29.0 million to US$76.6 million, or 19.7% of total revenue for the first half of 2023 from US$47.6 million, or 8.1% of total revenue for the first half of 2022.

 

Selling, general, and administrative (“SG&A”) expenses significantly decreased by 69.2% to US$21.9 million for the first half of 2023 from US$71.0 million for the first half of 2022. As a percentage of total revenue, SG&A expenses were 5.6% and 12.2% for the first half of 2023 and 2022, respectively.

 

Total debt outstanding was US$2,044.0 million as of June 30, 2023, a decrease of 4.5% from US$2,140.4 million as of December 31, 2022.

 

Financial Results for the First Half of 2023

 

Revenue

 

For the first half of 2023, the Company’s total revenue decreased by 33.5% to US$388.2 million, compared to US$584.1 million for the first half of 2022, and the Company’s average selling price per square meter for real estate properties sold in China increased by 45.6% to RMB15,413 (US$2,226), compared to RMB10,585 (US$1,633) for the first half of 2022. The decrease in revenue was mainly due to a significant decline in signings, which were affected by the overall downturn in the real estate industry.

 

Gross Profit

 

Gross profit increased by US$29.0 million to US$76.6 million, or 19.7% of total revenue for the first half of 2023 from US$47.6 million, or 8.1% of total revenue for the first half of 2022. Mainly due to optimization of project costs.

 

SG&A Expenses

 

SG&A expenses significantly decreased by 69.2% to US$21.9 million for the first half of 2023 from US$71.0 million for the first half of 2022. As a percentage of total revenue, SG&A expenses were 5.6% and 12.2% for the first half of 2023 and 2022, respectively. The main reason is that the Company took various measures to control SG&A expenses, such as salary cuts and stricter control of office expenses.

 

Net Loss

 

Net loss decreased by US$125.8 million to US$46.7 million for the first half of 2023 from US$172.5 million for the first half of 2022.

 

Balance Sheets

 

As of June 30, 2023, the Company’s cash and restricted cash decreased to US$380.8 million from US$560.7 million as of December 31, 2022.

 

Total debt outstanding was US$2,044.0 million as of June 30, 2023, a decrease of 4.5% from US$2,140.4 million as of December 31, 2022.

 

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The balance of the Company’s real estate properties completed and under development at the end of the second quarter of 2023 was US$3,112.7 million compared to US$3,277.1 million as of December 31, 2022.

 

Completion of Exchange Offer and Consent Solicitation of Certain Notes

 

The Company has been proactively making effort to resolve debts both from domestic and foreign institutions since June 2022, and has reached or agreed into resolutions or settlements with institutions through various approaches.

 

On June 12, 2023, the Company announced an exchange offer to holders of the senior secured notes issued by the Company. The Exchange Offer expired at 5:00 p.m., Hong Kong time, on June 28, 2023 (the “Exchange Expiration Deadline”). As of the Exchange Expiration Deadline, US$307,363,580, or 46.6%, of the total aggregate outstanding principal amount of the Existing Notes were validly tendered for exchange for the Exchange Consideration. On August 18, 2023, US$307,363,580 of the total aggregate outstanding principal amount of the Existing Notes were exchanged and the Company (i) delivered the New Notes in the aggregate principal amount of US$331,303,941 and (ii) made a payment of Consent Fees in cash in the amount of US$1,536,863.12 in full satisfaction of the Exchange Consideration to the Eligible Holders whose Existing Notes had been validly tendered and accepted for exchange. Capitalized terms used but not defined herein have the meanings ascribed to them in Exhibit 99.1 of the Company’s report of foreign private issuer on Form 6-K filed on August 22, 2023.

 

This debt restructuring brought approximately US$140 million debt restructuring income to the Company, increasing the Company’s equity significantly. The pro forma financial statements after recording this debt featuring are shown below.

 

About Xinyuan Real Estate Co., Ltd.

 

Xinyuan is an NYSE-listed real estate developer primarily in China with projects in the United States. 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, Tianjin, Zhengzhou, Jinan, Qingdao, Chengdu, Xi’an, Suzhou, Dalian, Zhuhai and Foshan. 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 include statements about future debt and financial position, potential future collaborative efforts, 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 successfully enter new geographic markets, develop 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; the impact of pandemics, such as the COVID-19 pandemic, on the real estate market and the economies in our markets; fluctuations in general economic and business conditions in the markets in which we operate; and other risks outlined in our public filings with the U.S. Securities and Exchange Commission, including our annual report on Form 20-F for the year ended December 31, 2022. 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 and has not undergone external review. 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:

 

Xinyuan Real Estate Co., Ltd.

Investor Relations

Tel: +86 (10) 8588-9376

Email: irteam@xyre.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)

 

   Six months ended 
   June 30,   June 30, 
   2023   2022 
   (unaudited)   (unaudited) 
Total revenue   388,241    584,123 
           
Total costs of revenue   (311,640)   (536,560)
Gross profit   76,601    47,563 
           
Selling and distribution expenses   (2,264)   (19,374)
General and administrative expenses   (19,642)   (51,669)
Gain/(loss) on disposal of property held for lease   -    (256)
           
Operating income/(loss)   54,695    (23,736)
           
Interest income   2,858    1,159 
Interest expenses   (85,290)   (83,770)
Loss on short-term investments   (2,185)   (69,828)
Gain on extinguishment of debt   2,897    - 
Debt restructuring income   8,755    - 
Other (expenses)/income   (1,774)   729 
Exchange gain   17,975    22,040 
Share of loss of equity investees   (7,846)   (23,356)
           
Income/(loss) from operations before income taxes   (9,915)   (176,762)
           
Income tax (expenses)/benefits   (36,765)   4,274 
           
Net loss   (46,680)   (172,488)
Net income/(loss) attributable to non-controlling interest   8,045    (11,849)
Net income/(loss) attributable to Xinyuan Real Estate Co., Ltd. shareholders   (38,635)   (184,337)
           
Income/(loss) per ADS:          
Basic   (7.17)   (3.45)
Diluted   (7.17)   (3.45)
ADS used in computation:          
Basic   5,388    53,466 
Diluted   5,388    53,466 

 

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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)

 

   June 30,   December 31, 
   2023   2022 
   (unaudited)   (audited) 
ASSETS          
Current assets          
Cash and restricted cash   380,777    560,728 
Short-term investments   9,304    11,993 
Accounts receivable   12,004    32,588 
Other receivables   372,267    383,513 
Deposits for land use rights   31,340    33,858 
Other deposits and prepayments   282,848    322,170 
Advances to suppliers   48,024    54,229 
Real estate properties development completed and under development   3,112,657    3,277,057 
Amounts due from related parties   193,246    203,719 
Amounts due from employees   4,140    1,466 
Other current assets   13,987    7,886 
           
Total current assets   4,460,594    4,889,207 
           
Restricted cash, non-current   -    - 
Real estate properties held for lease, net   341,954    373,468 
Property and equipment, net   26,141    28,831 
Long-term investment   82,605    92,473 
Deferred tax assets   299,623    304,516 
Deposits for land use rights and properties   31,830    33,024 
Amounts due from related parties   12,135    15,056 
Contract cost assets   64,880    52,516 
Operating lease right-of-use assets   2,997    5,708 
Other assets   54,642    55,479 
           
TOTAL ASSETS   5,377,401    5,850,278 

 

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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)

 

   June 30,   December 31, 
   2023   2022 
   (unaudited)   (audited) 
LIABILITIES AND          
SHAREHOLDERS’ EQUITY          
Current liabilities          
Accounts payable and notes payable   954,951    950,184 
Short-term bank loans and other debt   62,042    81,598 
Customer deposits   927,284    1,280,517 
Income tax payable   212,954    241,221 
Other payables and accrued liabilities   563,511    489,623 
Payroll and welfare payable   10,969    16,432 
Current portion of long-term bank loans and other debt   1,466,390    1,653,120 
Lease liability, current portion   2,032    3,781 
Mandatorily redeemable non-controlling interests   10,217    9,864 
Amounts due to related parties   73,320    66,620 
           
Total current liabilities   4,283,670    4,792,960 
           
Non-current liabilities          
Long-term bank loans   337,699    146,603 
Other long-term debt   177,833    259,081 
Deferred tax liabilities   414,267    429,975 
Unrecognized tax benefits   147,327    135,562 
Lease liability   1,691    3,310 
Amounts due to related parties   -    - 
           
TOTAL LIABILITIES   5,362,487    5,767,491 
           
Shareholders’ equity          
Common shares   16    16 
Treasury shares   (116,062)   (116,062)
Additional paid-in capital   544,955    544,955 
Statutory reserves   179,320    179,457 
Retained earnings   (696,600)   (656,638)
Accumulated other comprehensive loss   (37,804)   (21,615)
Total Xinyuan Real Estate Co., Ltd. shareholders’ equity   (126,175)   (69,887)
Non-controlling interest   141,089    152,674 
Total equity   14,914    82,787 
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   5,377,401    5,850,278 

 

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XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(The pro forma financial statement after recording this debt restructuring)

(All US$ amounts and number of shares data in thousands, except per share data)

 

   June 30, 
   2023 
   (pro forma) 
Total revenue   388,241 
      
Total costs of revenue   (311,640)
Gross profit   76,601 
      
Selling and distribution expenses   (2,264)
General and administrative expenses   (19,642)
      
Operating income/(loss)   54,695 
      
Interest income   2,858 
Interest expenses   (85,290)
Loss on short-term investments   (2,185)
Gain on extinguishment of debt   2,897 
Debt restructuring income   149,499 
Other (expenses)/income   (1,774)
Exchange gain   17,975 
Share of loss of equity investees   (7,846)
      
Income/(loss) from operations before income taxes   130,829 
      
Income tax (expenses)/benefits   (36,765)
      
Net income   94,064 
Net income/(loss) attributable to non-controlling interest   8,045 
Net income/(loss) attributable to Xinyuan Real Estate Co., Ltd. shareholders   102,109 
      
Income/(loss) per ADS:     
Basic   18.95 
Diluted   18.95 
ADS used in computation:     
Basic   5,388 
Diluted   5,388 

 

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XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(The pro forma financial statement after recording this debt restructuring)

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

 

   June 30, 
   2023 
   (pro forma) 
ASSETS     
Current assets     
Cash and restricted cash   380,777 
Short-term investments   9,304 
Accounts receivable   12,004 
Other receivables   372,267 
Deposits for land use rights   31,340 
Other deposits and prepayments   282,848 
Advances to suppliers   48,024 
Real estate properties development completed and under development   3,112,657 
Amounts due from related parties   193,246 
Amounts due from employees   4,140 
Other current assets   13,987 
      
Total current assets   4,460,594 
      
Restricted cash, non-current   - 
Real estate properties held for lease, net   341,954 
Property and equipment, net   26,141 
Long-term investment   82,605 
Deferred tax assets   299,623 
Deposits for land use rights and properties   31,830 
Amounts due from related parties   12,135 
Contract cost assets   64,880 
Operating lease right-of-use assets   2,997 
Other assets   54,642 
      
TOTAL ASSETS   5,377,401 

 

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XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(The pro forma financial statement after recording this debt restructuring)

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

 

   June 30, 
   2023 
   (pro forma) 
LIABILITIES AND     
SHAREHOLDERS’ EQUITY     
Current liabilities     
Accounts payable and notes payable   954,951 
Short-term bank loans and other debt   62,042 
Customer deposits   927,284 
Income tax payable   212,954 
Other payables and accrued liabilities   563,511 
Payroll and welfare payable   10,969 
Current portion of long-term bank loans and other debt   1,144,807 
Lease liability, current portion   2,032 
Mandatorily redeemable non-controlling interests   10,217 
Amounts due to related parties   73,320 
      
Total current liabilities   3,962,087 
      
Non-current liabilities     
Long-term bank loans   337,699 
Other long-term debt   358,672 
Deferred tax liabilities   414,267 
Unrecognized tax benefits   147,327 
Lease liability   1,691 
Amounts due to related parties   - 
      
TOTAL LIABILITIES   5,221,743 
      
Shareholders’ equity     
Common shares   16 
Treasury shares   (116,062)
Additional paid-in capital   544,955 
Statutory reserves   179,320 
Retained earnings   (555,856)
Accumulated other comprehensive loss   (37,804)
Total Xinyuan Real Estate Co., Ltd. shareholders’ equity   14,569 
Non-controlling interest   141,089 
Total equity   155,658 
      
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   5,377,401 

 

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