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 FEBRUARY 2018
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
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________.
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Form 6-K shall be deemed a part of each such document from the date on which this Form 6-K is filed, to the extent not superseded by documents or reports subsequently filed or furnished by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as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 February 9, 2018 | |
| Exhibit 99.2 | Announcement, dated February 9, 2018, of Fourth Quarterly Dividend for 2017 |
| 1 |
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/ Yuan (Helen) Zhang | |
| Name: | Yuan (Helen) Zhang | |
| Title: | Chief Financial Officer | |
Date: February 12, 2018
| 2 |
EXHIBIT INDEX
| Exhibit Number | Description | |
| 99.1 | Xinyuan Real Estate Co., Ltd. Press Release dated February 9, 2018 | |
| 99.2 | Announcement, dated February 9, 2018, of Fourth Quarterly Dividend for 2017 |
| 3 |
Exhibit 99.1
Xinyuan Real Estate Co., Ltd. Announces Fourth Quarterly Dividend for 2017
BEIJING, February 9, 2018 – 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 fourth quarter of 2017 of US$0.05 per common share, or US$0.10 per American Depositary Share (“ADS”), which will be payable before March 15, 2018 to shareholders of record as of February 28, 2018.
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.
Safe Harbor Statement
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, 2016. 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.
For more information, please contact:
Xinyuan Real Estate Co., Ltd.
Mr. Joe Xu
Investor Relations Director
Tel: +86 (10) 8588-9376
Email: irteam@xyre.com
ICR, LLC
Investors:
William Zima
In U.S.: +1-646-308-1472
In China: +86 (10) 6583 7511
Email: William.zima@icrinc.com
Media:
Edmond Lococo
In China: +86 (10) 6583-7510
Email: Edmond.Lococo@icrinc.com
Exhibit 99.2
Xinyuan Real Estate Co., Ltd. Announces Fourth Quarter 2017 Financial Results
BEIJING, China, February 9, 2018 - 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 its unaudited financial results for the fourth quarter ended December 31, 2017.
Fourth Quarter 2017 Highlights
| · | Contract sales increased 72.4% to US$802.4 million from US$465.3 million in the fourth quarter of 2016 and increased 32.7% from US$604.5 million in the third quarter of 2017. |
| · | Total revenue increased 44.3% to US$729.0 million from US$505.3 million in the fourth quarter of 2016 and increased 51.1% from US$482.4 million in the third quarter of 2017. |
| · | Gross profit increased 40.3% to US$177.9 million, or 24.4% of total revenue, from US$126.8 million, or 25.1% of total revenue, in the fourth quarter of 2016 and increased 63.5% from US$108.8 million, or 22.6% of total revenue, in the third quarter of 2017. |
| · | Selling, General and Administrative (“SG&A”) expenses as a percentage of total revenue increased to 10.6% from 10.4% in the fourth quarter of 2016 and is the same with 10.6% in the third quarter of 2017. |
| · | Net income increased 110.2% to US$35.1 million compared from US$16.7 million in the fourth quarter of 2016, and increased 112.7% from US$16.5 million in the third quarter of 2017. |
| · | Diluted net earnings per American Depositary Share (“ADS”) attributable to shareholders were US$0.47 compared to US$0.18 in the fourth quarter of 2016 and US$0.22 in the third quarter of 2017. |
Full Year 2017 Highlights
| · | For the year ended December 31, 2017, contract sales increased 40.0% to US$2,466.0 million from US$1,761.7 million in 2016. GFA sales increased 21.1% to 1,363,600 square meters from 1,126,100 square meters in 2016. |
| · | Total revenues increased 26.8% to US$1,980.2 million from US$1,561.6 million in 2016. |
| · | Gross profit was US$457.3 million, or 23.1% of revenue in 2017, compared to a gross profit of US$358.0 million, or 22.9% of revenue in 2016. |
| · | SG&A expenses were US$211.6 million, or 10.7% of revenue in 2017, compared to US$178.6 million, or 11.4% of revenue in 2016. |
| · | Net income was US$79.8 million in 2017 compared to US$79.5 million in 2016. Diluted earnings per ADS were US$0.94 in 2017 compared to US$1.06 per ADS in 2016. |
| 1 |
Mr. Yong Zhang, Xinyuan’s Chairman, stated, “We are pleased to see strong growth in contract sales during the fourth quarter despite ongoing restrictive government policies impacting China’s overall housing market. Thanks to steady demand at our active projects, contract sales in this quarter grew to US$802 million, or over RMB5.4 billion, above the high end of our guidance range of RMB4.6 billion to RMB 4.8 billion. This consequently drove our full-year contract sales growth to 40.0% from the previous year, above our guidance range of 35% to 37%.”
“During the fourth quarter, we commenced pre-sales on two new projects in China -- Zhengzhou International New City III and Zhengzhou Fancy City II (North),” continued Mr. Zhang, “and we continued to take advantage of market conditions to increase our land bank with six projects for development and three construction management service projects are in the pipeline. These projects are mainly located in our existing markets, with solid track records, and we believe they will drive our long-term growth. Furthermore, our under planning stage projects in both China and the U.S. continue to proceed as expected.”
“We remain cautious about the market as the government’s restrictive policy continues, but we are optimistic about our ability to adjust to the environment and deliver strong financial results. We will continue to seek additional avenues of growth in our core development business as well as our new construction management service business. We remain committed to our shareholders and are proud to have achieved 24 consecutive quarterly dividends thus far,” concluded Mr. Zhang.
Fourth Quarter 2017 Financial Results
Contract Sales
Contract sales in China totaled US$795.9 million in the fourth quarter compared to US$347.8 million in the fourth quarter of 2016 and US$597.5 million in the third quarter of 2017.
The Company’s GFA sales in China were 443,600 square meters in the fourth quarter of 2017 compared to 222,000 square meters in the fourth quarter of 2016 and 369,500 square meters in the third quarter of 2017.
The average selling price (“ASP”) per square meter sold in China was RMB12,118 (US$1,794) in the fourth quarter of 2017 compared to RMB10,401 (US$1,566) in the fourth quarter of 2016 and RMB10,994 (US$1,616) in the third quarter of 2017.
Contract sales in the United States totaled US$6.5 million in the fourth quarter of 2017.
The Company commenced pre-sales of two new projects in the fourth quarter of 2017, Zhengzhou International New City III and Zhengzhou Fancy City II (North), which contributed 23.6% and 24.8% of total GFA sales and total contract sales, respectively.
| 2 |
Breakdown of GFA Sales and ASPs by Project in China
| Project | Q4 2016 | Q3 2017 | Q4 2017 | Unsold | |||
| GFA | ASP | GFA | ASP | GFA | ASP | GFA | |
| (m2, 000s) | (RMB) | (m2, 000s) | (RMB) | (m2, 000s) | (RMB) | (m2, 000s) | |
| Xingyang Splendid II | 21.4 | 6,213 | 1.4 | 6,973 | 1.6 | 11,650 | 55.8 |
| Kunshan Royal Palace | 2.0 | 23,137 | 6.2 | 25,987 | 1.3 | 24,232 | 2.0 |
| Jinan Royal Palace | 29.1 | 8,798 | 29.7 | 12,457 | 35.5 | 12,404 | 101.4 |
| Xuzhou Colorful City | 2.5 | 11,791 | 0.6 | 11,138 | 31.4 | 11,246 | 15.1 |
| Chengdu Thriving Family | 8.5 | 9,621 | 10.2 | 15,061 | 15.8 | 10,724 | 30.2 |
| Changsha Xinyuan Splendid | 12.1 | 9,461 | 7.4 | 13,726 | 4.2 | 18,379 | 13.0 |
| Sanya Yazhou Bay No.1 | 2.7 | 12,723 | 1.6 | 15,313 | 2.7 | 27,497 | 61.7 |
| Xi’an Metropolitan | 19.4 | 10,781 | 7.2 | 9,497 | 21.2 | 9,719 | 36.8 |
| Zhengzhou Xindo Park | 22.8 | 6,419 | 8.1 | 8,552 | 11.3 | 11,110 | 17.7 |
| Jinan Xin Central | 9.0 | 12,214 | 9.2 | 12,151 | 16.9 | 11,477 | 38.7 |
| Henan Xin Central I | 5.5 | 9,673 | 28.5 | 4,093 | 9.5 | 12,890 | 15.8 |
| Zhengzhou Fancy City I | 2.8 | 14,594 | 18.8 | 5,155 | 2.0 | 14,004 | 8.4 |
| Zhengzhou Fancy City II (South) | 9.6 | 12,353 | 2.9 | 13,995 | 4.4 | 15,899 | 6.0 |
| Tianjin Spring Royal Palace | 2.4 | 6,934 | 6.2 | 11,617 | 2.5 | 12,590 | 150.1 |
| Kunshan Xindo Park | 0.6 | 19,060 | 11.5 | 22,198 | 12.7 | 22,311 | 18.2 |
| Zhengzhou International New City I | 48.6 | 10,717 | 35.3 | 10,141 | 33.9 | 4,401 | 33.2 |
| Henan Xin Central II | 9.0 | 10,920 | 28.0 | 8,379 | 10.4 | 11,858 | 20.1 |
| Xingyang Splendid III | - | - | 47.4 | 7,217 | 18.9 | 7,237 | 39.3 |
| Changsha Mulian Royal Palace | - | - | 32.8 | 11,291 | 21.6 | 12,899 | 36.9 |
| Zhengzhou International New City II | - | - | 69.0 | 13,783 | 76.7 | 13,711 | 30.3 |
| Zhengzhou International New City III | - | - | - | - | 73.6 | 14,058 | 148.6 |
| Zhengzhou Fancy City II (North) | - | - | - | - | 31.2 | 9,499 | 77.2 |
| Others | 14.0 | - | 7.5 | - | 4.3 | 82.5 | |
| Total | 222.0 | 10,401 | 369.5 | 10,99 | 443.6 | 12,118 | 1,039.0 |
Revenue
In the fourth quarter of 2017, the Company’s total revenue increased 44.3% to US$729.0 million from US$505.3 million in the fourth quarter of 2016 and increased 51.1% from US$482.4 million in the third quarter of 2017.
Gross Profit
Gross profit for the fourth quarter of 2017 was US$177.9 million, or 24.4% of revenue, compared to a gross profit of US$126.8 million, or 25.1% of revenue, in the fourth quarter of 2016 and a gross profit of US$108.8 million, or 22.6% of revenue, in the third quarter of 2017.
| 3 |
Selling, General and Administrative Expenses
SG&A expenses were US$77.2 million for the fourth quarter of 2017 compared to US$52.3 million for the fourth quarter of 2016 and US$51.0 million for the third quarter of 2017. As a percentage of total revenue, SG&A expenses were 10.6% compared to 10.4% in the fourth quarter of 2016 and 10.6% in the third quarter of 2017.
Net Income
Net income for the fourth quarter of 2017 was US$35.1 million compared to US$16.7 million for the fourth quarter of 2016 and US$16.5 million for the third quarter of 2017. Net margin was 4.8% compared to 3.3% in the fourth quarter of 2016 and 3.4% in the third quarter of 2017. Diluted earnings per ADS were US$0.47 compared to US$0.18 per ADS in the fourth quarter of 2016 and US$0.22 per ADS in the third quarter of 2017.
Balance Sheet
As of December 31, 2017, the Company’s cash and cash equivalents (including restricted cash) increased to US$1,481.0 million from US$1,187.2 million as of September 30, 2017. The strong cash position is attributable to Xinyuan’s solid cash collection ability, which helped the Company’s cash collection rate (cash collected from contract sales/total 2017 contract sales) reach around 90%, higher than industry average, even under the current restrictive policies.
Total debt outstanding was US$3,311.8 million, which reflected an increase of US$819.4 million compared to US$2,492.4 million at the end of the third quarter of 2017. The balance of the Company’s real estate properties under development at the end of the fourth quarter of 2017 was US$2,001.2 million compared to US$2,080.5 million at the end of the third quarter of 2017.
Real Estate Project Status in China
Below is a summary table of projects that were active and available for sale in the fourth quarter of 2017.
| Project | GFA | Contract Sales | Project Cost % Complete | ||||
| (m2, 000s) | (US$ millions) | ||||||
| Total Active Project | Sold to date | Total Active Project | Sales to date | % Sold | |||
| Xingyang Splendid II | 137.2 | 81.4 | 139.7 | 72.4 | 51.8% | 74.7% | |
| Kunshan Royal Palace | 280.6 | 278.6 | 473.2 | 467.5 | 98.8% | 97.1% | |
| Jinan Royal Palace | 451.3 | 349.9 | 649.0 | 427.0 | 65.8% | 79.1% | |
| Xuzhou Colorful City | 130.2 | 115.1 | 197.7 | 170.9 | 86.4% | 87.0% | |
| Chengdu Thriving Family | 213.0 | 182.8 | 369.4 | 202.2 | 54.7% | 98.7% | |
| Changsha Xinyuan Splendid | 251.6 | 238.6 | 339.2 | 253.5 | 74.7% | 93.6% | |
| Sanya Yazhou Bay No.1 | 117.6 | 55.9 | 293.3 | 125.9 | 42.9% | 93.1% | |
| Xi’an Metropolitan | 290.6 | 253.8 | 449.6 | 278.6 | 62.0% | 98.8% | |
| Zhengzhou Xindo Park | 144.4 | 126.7 | 195.6 | 143.8 | 73.5% | 90.5% | |
| Jinan Xin Central | 194.4 | 155.7 | 353.8 | 240.3 | 67.9% | 94.6% | |
| Henan Xin Central I | 262.2 | 246.4 | 357.2 | 293.7 | 82.2% | 92.4% | |
| Zhengzhou Fancy City I | 166.7 | 158.3 | 233.5 | 201.8 | 86.4% | 86.9% | |
| Zhengzhou Fancy City II (South) | 84.1 | 78.1 | 145.8 | 127.9 | 87.7% | 74.8% | |
| Tianjin Spring Royal Palace | 279.7 | 129.6 | 492.9 | 159.6 | 32.4% | 54.8% | |
| Kunshan Xindo Park | 89.0 | 70.8 | 270.1 | 211.0 | 78.1% | 88.6% | |
| Zhengzhou International New City I | 360.7 | 327.5 | 659.7 | 526.9 | 79.9% | 50.1% | |
| Henan Xin Central II | 109.7 | 89.6 | 181.5 | 137.4 | 75.7% | 65.4% | |
| Xingyang Splendid III | 121.1 | 81.8 | 130.3 | 86.9 | 66.7% | 50.5% | |
| Changsha Mulian Royal Palace | 91.2 | 54.3 | 161.4 | 96.0 | 59.5% | 66.4% | |
| Zhengzhou International New City II | 176.0 | 145.7 | 381.0 | 296.5 | 77.8% | 52.8% | |
| Zhengzhou International New City III | 222.2 | 73.6 | 463.9 | 153.2 | 33.0% | 44.9% | |
| Zhengzhou Fancy City II (North) | 108.5 | 31.3 | 162.7 | 43.9 | 27.0% | 33.9% | |
| Others remaining GFA | 82.5 | ||||||
| Total active projects | 4,364.5 | 3,325.5 | 7,100.5 | 4,716.9 | 66.4% | 79.8% | |
| 4 |
Xinyuan further enlarged its land bank in the fourth quarter to support its development in future years by acquiring six pieces of land with total GFA of 1,805,000 m2, four of which are projects that will be developed through cooperation with other companies.
As of December 31, 2017, the Company’s total saleable GFA was approximately 4,935,600 square meters for active projects and under planning stage projects in China, about 223% of the same period last year. Below is a summary of all of the Company’s planning stage projects:
|
Unsold GFA (m2, 000s) |
Pre-sales Scheduled |
||
| Beijing Liyuan project | 102.3 | To be determined | |
| Changsha Furong Thriving Family | 73.0 | 2018Q1 | |
| Xian Aerospace City Project | 226.0 | 2018Q3 | |
| Zhengzhou Heizhuzhuang Project | 340.0 | 2018Q3 | |
| Kunshan Zhongyu Project | 113.0 | 2018Q3 | |
| Zhengzhou International New City IV | 787.3 | 2018Q2 | |
| Zhuhai Prince Project | 70.0 | To be determined | |
| Qingdao New Project | 380.0 | 2018Q3 | |
| Zhengzhou Fancy City III (new in this quarter) | 83.0 | To be determined | |
| Zhengzhou Hangmei Project (new in this quarter) | 231.0 | To be determined | |
| Zhengzhou Zhongmou Project (new in this quarter) | 480.0 | To be determined | |
| Suzhou Yinhewan Project (new in this quarter) | 75.0 | To be determined | |
| Suzhou Wujiang New City (new in this quarter) | 63.0 | To be determined | |
| Chengdu Wucaicheng Project (new in this quarter) | 873.0 | To be determined | |
| Total projects under planning | 3,896.6 | ||
| Total active projects | 1,039.0 | ||
| Total of all Xinyuan unsold projects in China | 4,935.6 |
| 5 |
Update on Real Estate Projects in the United States
As of December 31, 2017, a total of 172 units out of 216 total units were sold and closed for the Company’s Oosten project in Brooklyn, New York, with total revenue from this project reaching US$250.8 million. Number of units sold and revenue in 2017 were 66 and US$98.8 million respectively.
The Company expects foundation work to be completed in the first quarter of 2018 for its Hudson Garden project in Manhattan, New York. After optimizing the internal layout of the building, the Company now expects 87 units to be available for sale, an increase from the original 82.
The Company continues to execute on the planning, governmental approvals and pre-development activities of its ground-up development project in Flushing, New York. During the fourth quarter of 2017 and the beginning of 2018, the Landmark Protection Committee approved Xinyuan’s landmark protection plan and awarded the Company a Certificate of Appropriateness. The Company expects to begin transferring and protecting crucial parts of the landmark RKO theater in the first quarter of 2018. The Company continues to follow the required governmental procedures for the future construction needs of this project.
Update on Construction Management Service Business
Leveraging its experience and resources in the industry to provide value to companies that would like to own buildings but have no property development expertise, Xinyuan started its construction management service business in the third quarter of 2017 with its first project in Guangzhou. Another three projects were added to the pipeline of this business section.
Under this asset-light business model, Xinyuan will charge a service fee for providing the construction management service. Xinyuan may also charge an interest spread if it provides financing support by means including, without limitation to, holding minority interest in the project through limited partnerships with financial institutions. This business section will supplement Xinyuan’s core traditional project development business for future growth. Below is a summary of the Company’s construction management service projects:
|
Project GFA (m2, 000s) | |
| Guangzhou Project | 55.0 |
| Zhengzhou Derun Project | 1,029.0 |
| Zhengzhou Qinglongshan Project | 230.0 |
| Shandong Heze Project | 233.0 |
| Total of all Xinyuan construction management service projects | 1,547.0 |
Business Outlook
For 2018, the Company expects an increase in contract sales of about 10% and an increase in consolidated net income of 15%-20% over 2017. For first quarter of 2018, contract sales are expected to be on par with the prior year first quarter period and the Company expects significant pressure on earnings in the first quarter due to slower sales associated with Chinese New Year and increased interest expense associated with new debt from land acquisitions in late 2017.
| 6 |
Conference Call Information
The Company will hold a conference call at 8:00 am ET on February 09, 2018 to discuss fourth quarter 2017 results. Listeners may access the call by dialing:
US: 1-888-394-8218
International: 1-323-794-2149
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 February 16, 2018 by dialing:
US: 1-844-512-2921
International: 1-412-317-6671
Access code: 8795287
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, 2016. 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. Joe Xu
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
Media:
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 | ||||||||||||
| December 31, | September, | December 31, | ||||||||||
| 2017 | 2017 | 2016 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Total revenue | 728,993 | 482,373 | 505,340 | |||||||||
| Total costs of revenue | (551,060 | ) | (373,532 | ) | (378,507 | ) | ||||||
| Gross profit | 177,933 | 108,841 | 126,833 | |||||||||
| Selling and distribution expenses | (28,885 | ) | (18,890 | ) | (22,059 | ) | ||||||
| General and administrative expenses | (48,295 | ) | (32,085 | ) | (30,226 | ) | ||||||
| Operating income | 100,753 | 57,866 | 74,548 | |||||||||
| Interest income | 4,431 | 5,454 | 6,107 | |||||||||
| Interest expense | (25,215 | ) | (11,418 | ) | (13,236 | ) | ||||||
| Net realized gain on short-term investments | 4,102 | 1,017 | 198 | |||||||||
| Unrealized (loss)/gain on short-term investments | (2,116 | ) | 2,434 | (623 | ) | |||||||
| Other income | 2,170 | (3 | ) | 459 | ||||||||
| Loss on extinguishment of debt | - | (15,880 | ) | (12,124 | ) | |||||||
| Exchange gains/(loss) | 1,043 | (189 | ) | 261 | ||||||||
| Share of loss of equity investees | (898 | ) | (386 | ) | (138 | ) | ||||||
| Income from operations before income taxes | 84,270 | 38,895 | 55,452 | |||||||||
| Income taxes | (49,202 | ) | (22,366 | ) | (38,735 | ) | ||||||
| Net income | 35,068 | 16,529 | 16,717 | |||||||||
| Net income attributable to non-controlling interest | (4,089 | ) | (2,453 | ) | (4,588 | ) | ||||||
| Net income attributable to Xinyuan Real Estate Co., Ltd. shareholders | 30,979 | 14,076 | 12,129 | |||||||||
| Earnings per ADS: | ||||||||||||
| Basic | 0.48 | 0.22 | 0.18 | |||||||||
| Diluted | 0.47 | 0.22 | 0.18 | |||||||||
| ADS used in computation: | ||||||||||||
| Basic | 64,754 | 64,333 | 65,960 | |||||||||
| Diluted | 65,929 | 65,347 | 68,928 | |||||||||
| 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)
| Twelve months ended | ||||||||
| December 31, | December 31, | |||||||
| 2017 | 2016 | |||||||
| (unaudited) | (audited) | |||||||
| Total revenue | 1,980,244 | 1,561,625 | ||||||
| Total costs of revenue | (1,522,981 | ) | (1,203,636 | ) | ||||
| Gross profit | 457,263 | 357,989 | ||||||
| Selling and distribution expenses | (76,335 | ) | (58,214 | ) | ||||
| General and administrative expenses | (135,220 | ) | (120,416 | ) | ||||
| Operating income | 245,708 | 179,359 | ||||||
| Interest income | 16,859 | 20,917 | ||||||
| Interest expense | (66,153 | ) | (29,857 | ) | ||||
| Net realized gain on short-term investments | 7,964 | 2,506 | ||||||
| Unrealized gain on short-term investments | 2,096 | 235 | ||||||
| Other income | 2,326 | 4,540 | ||||||
| Loss on extinguishment of debt | (15,880 | ) | (12,124 | ) | ||||
| Exchange gains | 757 | 459 | ||||||
| Share of loss of equity investees | (1,792 | ) | (325 | ) | ||||
| Income from operations before income taxes | 191,885 | 165,710 | ||||||
| Income taxes | (112,092 | ) | (86,248 | ) | ||||
| Net income | 79,793 | 79,462 | ||||||
| Net income attributable to non-controlling interest | (18,198 | ) | (6,485 | ) | ||||
| Net income attributable to Xinyuan Real Estate Co., Ltd. shareholders | 61,595 | 72,977 | ||||||
| Earnings per ADS: | ||||||||
| Basic | 0.96 | 1.10 | ||||||
| Diluted | 0.94 | 1.06 | ||||||
| ADS used in computation: | ||||||||
| Basic | 64,352 | 66,631 | ||||||
| Diluted | 65,820 | 68,827 | ||||||
| 10 |
XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All US$ amounts and number of shares data in thousands)
| December 31, | September 30, | December 31, | ||||||||||
| 2017 | 2017 | 2016 | ||||||||||
| (unaudited) | (unaudited) | (audited) | ||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 1,119,456 | 806,459 | 578,244 | |||||||||
| Restricted cash | 361,590 | 380,785 | 328,499 | |||||||||
| Short-term investments | 55,597 | 49,813 | 39,311 | |||||||||
| Accounts receivable | 102,282 | 53,294 | 32,704 | |||||||||
| Other receivables | 72,550 | 45,199 | 31,822 | |||||||||
| Deposits for land use rights | 227,182 | 82,041 | 153,252 | |||||||||
| Other deposits and prepayments | 251,828 | 501,284 | 525,263 | |||||||||
| Advances to suppliers | 46,983 | 47,235 | 27,457 | |||||||||
| Real estate properties development completed | 827,342 | 538,476 | 477,179 | |||||||||
| Real estate properties under development | 2,001,175 | 2,080,472 | 1,719,135 | |||||||||
| Amounts due from related parties | 127,359 | 30,134 | 17,732 | |||||||||
| Amounts due from employees | 2,174 | 3,399 | 621 | |||||||||
| Other current assets | 597 | 995 | 226 | |||||||||
| Total current assets | 5,196,115 | 4,619,586 | 3,931,445 | |||||||||
| Real estate properties held for lease, net | 277,776 | 187,280 | 159,874 | |||||||||
| Property and equipment, net | 32,386 | 32,783 | 34,090 | |||||||||
| Other long-term investment | 425,037 | 12,671 | 242 | |||||||||
| Investment in joint ventures | 407,532 | 12,824 | 7,556 | |||||||||
| Deferred tax assets | 52,215 | 50,722 | 49,690 | |||||||||
| Deposits for land use rights | 22,956 | 22,601 | 28,831 | |||||||||
| Amounts due from related parties | 24,666 | - | - | |||||||||
| Other assets | 43,248 | 71,193 | 24,717 | |||||||||
| TOTAL ASSETS | 6,481,931 | 5,009,660 | 4,236,445 | |||||||||
| 11 |
XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All US$ amounts and number of shares data in thousands)
| December 31, | September 30, | December 31, | ||||||||||
| 2017 | 2017 | 2016 | ||||||||||
| (unaudited) | (unaudited) | (audited) | ||||||||||
| LIABILITIES AND | ||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Accounts payable | 826,296 | 472,000 | 524,663 | |||||||||
| Short-term bank loans and other debt | 293,671 | 120,430 | 178,576 | |||||||||
| Customer deposits | 438,695 | 318,973 | 150,545 | |||||||||
| Income tax payable | 174,556 | 109,842 | 120,573 | |||||||||
| Other payables and accrued liabilities | 303,761 | 250,848 | 199,661 | |||||||||
| Payroll and welfare payable | 24,255 | 17,005 | 19,522 | |||||||||
| Current portion of long-term bank loans and other debt | 1,602,321 | 1,295,942 | 704,695 | |||||||||
| Current maturities of capital lease obligations | 4,472 | 4,403 | 3,923 | |||||||||
| Mandatorily redeemable non-controlling interests | 15,593 | 13,184 | 12,614 | |||||||||
| Amounts due to related parties | 128,178 | 105,931 | 66,230 | |||||||||
| Total current liabilities | 3,811,798 | 2,708,558 | 1,981,002 | |||||||||
| Non- current liabilities | ||||||||||||
| Long-term bank loans | 11,019 | - | 235,885 | |||||||||
| Other long term debt | 1,404,814 | 1,076,066 | 974,791 | |||||||||
| Deferred tax liabilities | 134,575 | 179,789 | 93,107 | |||||||||
| Unrecognized tax benefits | 20,418 | 20,495 | 20,492 | |||||||||
| Capital lease obligations, net of current maturities | 11,415 | 12,314 | 15,016 | |||||||||
| Amounts due to related parties | 26,432 | 1,849 | - | |||||||||
| TOTAL LIABILITIES | 5,420,471 | 3,999,071 | 3,320,293 | |||||||||
| Shareholders’ equity | ||||||||||||
| Common shares | 16 | 16 | 16 | |||||||||
| Treasury shares | (67,792 | ) | (67,792 | ) | (53,734 | ) | ||||||
| Additional paid-in capital | 546,340 | 545,464 | 538,414 | |||||||||
| Statutory reserves | 101,691 | 96,371 | 95,973 | |||||||||
| Retained earnings | 384,054 | 365,336 | 354,274 | |||||||||
| Accumulated other comprehensive income /( loss) | 32,661 | 10,247 | (34,683 | ) | ||||||||
| Total Xinyuan Real Estate Co., Ltd. shareholders’ equity | 996,970 | 949,642 | 900,260 | |||||||||
| Non-controlling interest | 64,490 | 60,947 | 15,892 | |||||||||
| Total equity | 1,061,460 | 1,010,589 | 916,152 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 6,481,931 | 5,009,660 | 4,236,445 | |||||||||
| 12 |