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 November 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-________.
TABLE OF CONTENTS
| Signature | |
| Exhibits | |
| Exhibit 99.1 Xinyuan Real Estate Co., Ltd. Press Release dated November 12, 2018 announcing annual meeting dates | |
| Exhibit 99.2 Xinyuan Real Estate Co., Ltd. Press Release dated November 13, 2018 announcing third quarter earnings | |
| Exhibit 99.3 Xinyuan Real Estate Co., Ltd. Press Release dated November 13, 2018 announcing quarterly dividend |
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/ Xuefeng Li | ||
| Name: | Xuefeng Li | ||
| Date: November 13, 2018 | Title: | Interim Chief Financial Officer | |
Exhibit 99.1
Xinyuan Real Estate Co., Ltd. to Hold Annual General Meeting of Shareholders on December 19, 2018
BEIJING, November 12, 2018 – Xinyuan Real Estate Co., Ltd. (“Xinyuan” or the “ Company”) (NYSE: XIN), an NYSE-listed real estate developer and property manager primarily in China and in other countries, today announced that the Company will hold its 2018 annual general meeting (“AGM”) of shareholders at its office headquarters in Beijing at 27/F, China Central Place, Tower II, 79 Jianguo Road, Chaoyang District, Beijing 100025, People’s Republic of China on December 19, 2018 at 2:00 p.m. local time. The shareholder record date is November 23, 2018.
Xinyuan filed its annual report on Form 20-F, including its audited financial statements for the fiscal year ended December 31, 2017, with the U.S. Securities and Exchange Commission (the “SEC”) on April 30, 2018. Xinyuan’s Form 20-F can be accessed on the Investor Relations section of the Company’s website at http://ir.xyre.com as well as on the SEC’s website at http://www.sec.gov. The notice of the annual general meeting of shareholders and the proxy statement related to the meeting, once issued, will be available through the Company’s website at http://ir.xyre.com/news-events/agm-summary.
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, 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. 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.
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
In U.S.: +1-646-308-1472
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 Third Quarter 2018 Financial Results
BEIJING, China, November 13, 2018 - Xinyuan Real Estate Co., Ltd. (“Xinyuan” or the “Company”) (NYSE: XIN), an NYSE-listed real estate developer and property manager primarily in China and also in other countries, today announced its unaudited financial results for the third quarter ended September 30, 2018.
Third Quarter 2018 Highlights
| · | On January 1, 2018, the Company adopted ASC 606 to recognize revenue for contracts executed after the adoption on an “over time” basis using costs incurred, an input measure. As such, third quarter results reflect the adoption of ASC 606 and may not be directly comparable to prior periods. |
| · | Contract sales decreased 5.5% to US$571.3 million from US$604.5 million in the third quarter of 2017 and decreased 9.9% from US$633.9 million in the second quarter of 2018. |
| · | Total revenue increased 23.4% to US$595.5 million from US$482.4 million in the third quarter of 2017 and increased 67.4% from US$355.8 million in the second quarter of 2018. |
| · | Gross profit increased 37.1% to US$149.2 million, or 25.1% of total revenue, from US$108.8 million, or 22.6% of total revenue, in the third quarter of 2017 and increased 36.4% from US$ 109.4 million, or 30.7% of total revenue, in the second quarter of 2018. |
| · | Selling, General and Administrative (“SG&A”) expenses as a percentage of total revenue decreased to 8.0% from 10.6% in the third quarter of 2017 and 13.2% in the second quarter of 2018. |
| · | Net income increased 44.8% to US$23.9 million from US$16.5 million in the third quarter of 2017 and increased from a net loss of US$9.3 million in the second quarter of 2018. |
| · | Diluted net earnings per American Depositary Share (“ADS”) attributable to shareholders were US$0.31 compared to diluted net earnings per ADS of US$0.22 in the third quarter of 2017 and net loss per ADS of US$0.10 in the second quarter of 2018. |
Mr. Yong Zhang, Xinyuan’s Chairman, stated, “Contract sales during the third quarter of 2018 once again experienced downward pressure because of a slowing economy and continued tight regulations on China’s property market. However, we were able to offset these market uncertainties due to our strategically located projects in tier-two cities and our strong operational execution, resulting in a 67.4% increase in our top line from the prior quarter and a 23.4% increase from the prior year period. This translated into bottom-line growth of 44.8% year-over-year.”
Mr. Zhang added, “In the third quarter of 2018, we commenced pre-sales of four projects, mainly in tier-two cities where housing demand continues to be strong, including Changsha Furong Thriving Family, Chengdu Xinyuan City I, Kunshan Xinyu Jiayuan, and Xingyang Splendid IV. We were also able to expand our land bank with the strategic acquisition of Dalian International Health Technology Town. This acquisition helps unlock our growth potential in Northeastern area of China. With an enlarged land bank, and an expanded global footprint, we are well positioned for long-term growth.
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“We remain optimistic about our revenue growth and contract sales for the fourth quarter and we remain focused on our strategic priorities of rolling out projects in tier-one and tier-two cities. Our effective execution will help strengthen our ability to meet our goals for the fourth quarter. We’re also pleased to announce another quarterly dividend payment to shareholders,” concluded Mr. Zhang.
Third Quarter 2018 Financial Results
Contract Sales
Contract sales in China totaled US$571.3 million in the third quarter compared to US$597.5 million in the third quarter of 2017 and US$630.3 million in the second quarter of 2018.
The Company’s GFA sales in China were 277,500 square meters in the third quarter of 2018 compared to 369,500 square meters in the third quarter of 2017 and 282,900 square meters in the second quarter of 2018.
The average selling price (“ASP”) per square meter sold in China was RMB13,406 (US$2,059) in the third quarter of 2018 compared to RMB10,994 (US$1,616) in the third quarter of 2017 and RMB14,173 (US$2,226) in the second quarter of 2018.
The Company commenced pre-sales of four new projects in the third quarter of 2018, Changsha Furong Thriving Family, Chengdu Xinyuan City I, Kunshan Xinyu Jiayuan, and Xingyang Splendid IV, which contributed 37.2% and 32.0% of total GFA sales and total contract sales, respectively.
Breakdown of GFA Sales and ASPs by Project in China
| Project | Q3 2017 | Q2 2018 | Q3 2018 | |||
| GFA | ASP | GFA | ASP | GFA | ASP | |
| (m2 ’000s) | (RMB) | (m2 ’000s) | (RMB) | (m2 ’000s) | (RMB) | |
| Xingyang Splendid II | 1.4 | 6,973 | 0.3 | 9,939 | 1.2 | 13,900 |
| Kunshan Royal Palace | 6.2 | 25,987 | 0.2 | 22,313 | - | - |
| Jinan Royal Palace | 29.7 | 12,457 | 27.4 | 16,341 | 25.9 | 16,426 |
| Xuzhou Colorful City | 0.6 | 11,138 | 0.8 | 10,495 | 0.1 | 10,989 |
| Chengdu Thriving Family | 10.2 | 15,061 | 1.3 | 16,011 | 1.1 | 8,012 |
| Changsha Xinyuan Splendid | 7.4 | 13,726 | 3.7 | 15,869 | 0.2 | 19,771 |
| Sanya Yazhou Bay No.1 | 1.6 | 15,313 | 12.0 | 25,758 | -0.9 | 23,515 |
| Xi’an Metropolitan | 7.2 | 9,497 | 4.5 | 7,480 | 1.8 | 10,546 |
| Zhengzhou Xindo Park | 8.1 | 8,552 | 0.4 | 7,560 | 4.1 | 8,015 |
| Jinan Xin Central | 9.2 | 12,151 | 9.2 | 14,073 | 1.3 | 12,839 |
| Henan Xin Central I | 28.5 | 4,093 | 1.0 | 15,342 | 0.3 | 18,931 |
| Zhengzhou Fancy City I | 18.8 | 5,155 | 1.2 | 10,989 | 0.2 | 17,481 |
| Zhengzhou Fancy City II (South) | 2.9 | 13,995 | 0.8 | 14,103 | 0.4 | 17,780 |
| Tianjin Spring Royal Palace I | 6.2 | 11,617 | 0.1 | 16,294 | - | - |
| Kunshan Xindo Park | 11.5 | 22,198 | 4.3 | 23,585 | 2.4 | 24,014 |
| Zhengzhou International New City I | 35.3 | 10,141 | 6.0 | 25,102 | 2.3 | 25,725 |
| Henan Xin Central II | 28.0 | 8,379 | 6.2 | 12,351 | 0.2 | 16,913 |
| Xingyang Splendid III | 47.4 | 7,217 | 13.2 | 7,934 | 2.7 | 8,018 |
| Changsha Mulian Royal Palace | 32.8 | 11,291 | 29.2 | 10,188 | 4.0 | 14,445 |
| Zhengzhou International New City II | 69.0 | 13,783 | 1.7 | 13,671 | 3.4 | 13,388 |
| Zhengzhou International New City III A | - | - | 1.2 | 13,611 | -0.1 | 14,150 |
| Zhengzhou Fancy City II (North) | - | - | 35.3 | 9,801 | 2.5 | 9,567 |
| Tianjin Spring Royal Palace II | - | - | 11.5 | 14,124 | 23.6 | 12,691 |
| Zhengzhou International New City III D | - | - | 29.6 | 14,282 | 14.0 | 14,264 |
| Zhengzhou Hangmei International Wisdom City I | - | - | 16.2 | 7,195 | 18.9 | 7,230 |
| Zhengzhou International New City III B | - | - | 51.3 | 13,996 | 54.5 | 14,135 |
| Changsha Furong Thriving Family | - | - | - | - | 68.4 | 9,773 |
| Chengdu Xinyuan City I | - | - | - | - | 7.1 | 9,988 |
| Kunshan Xinyu Jiayuan | - | - | - | - | 13.1 | 26,108 |
| Xingyang Splendid IV | - | - | - | - | 14.7 | 7,576 |
| Suzhou Suhe Bay (Suzhou Wujiang New City) * | - | - | - | - | 9.6 | 21,722 |
| Others | 7.5 | - | 14.3 | - | 0.5 | - |
| Total | 369.5 | 10,994 | 282.9 | 14,173 | 277.5 | 13,406 |
* The Company owns 16.66% equity interest in a joint venture, Suzhou Hengwan Real Estate Co., Ltd. which develops Suzhou Suhe Bay. The Company accounts for its investment under the equity method.
2
Revenue
In the third quarter of 2018, the Company’s total revenue increased 23.4% to US$595.5 million from US$482.4 million in the third quarter of 2017 and increased 67.4% from US$355.8 million in the second quarter of 2018.
Gross Profit
Gross profit for the third quarter of 2018 was US$149.2 million, or 25.1% of revenue, compared to a gross profit of US$108.8 million, or 22.6% of revenue, in the third quarter of 2017 and a gross profit of US$109.4 million, or 30.7% of revenue, in the second quarter of 2018.
Selling, General and Administrative Expenses
SG&A expenses were US$47.7 million for the third quarter of 2018 compared to US$51.0 million for the third quarter of 2017 and US$47.0 million for the second quarter of 2018. As a percentage of total revenue, SG&A expenses were 8.0% compared to 10.6% in the third quarter of 2017 and 13.2% in the second quarter of 2018.
Net Income/(loss)
Net income for the third quarter of 2018 was US$23.9 million compared to net income of US$16.5 million for the third quarter of 2017 and net loss of US$9.3 million for the second quarter of 2018. Net margin increased from 3.4% in the third quarter of 2017 and increased from negative 2.6% in the second quarter of 2018 to 4.0% for the third quarter of 2018. Diluted net earnings were US$0.31 per ADS in the third quarter of 2018 compared to diluted net earnings of US$0.22 per ADS in the third quarter of 2017 and diluted net loss of US$0.10 per ADS in the second quarter of 2018.
Balance Sheet
As of September 30, 2018, the Company’s cash and cash equivalents (including restricted cash) decreased to US$1,416.9 million from US$1,451.5 million as of June 30, 2018. Total debt outstanding was US$4,084.4 million, which reflected an increase of US$498.9 million compared to US$3,585.5 million at the end of the second quarter of 2018. The balance of the Company’s real estate properties under development at the end of the third quarter of 2018 was US$4,469.1 million compared to US$3,694.8 million at the end of the second quarter of 2018.
Adoption of ASC606
On January 1, 2018, the Company adopted ASC 606: Revenue from Contracts with Customers (“ASC 606”) issued by the Financial Accounting Standards Board. The Company adopted ASC 606 using the modified retrospective approach and applied the adoption only to contracts not completed as of the date of adoption, with no restatement of comparative periods, and a cumulative-effect adjustment to retained earnings recognized as of the date of adoption.
The following tables show the actual annual 2017 operating results and the annual 2017 operating results if the Company had adopted ASC 606 on January 1, 2017.
2017 Financial Results Prior to ASC 606
| 2017 Total | 2017 Q1 | 2017 Q2 | 2017 Q3 | 2017 Q4 | ||||||||||||||||
| USD’000 | USD’000 | USD’000 | USD’000 | USD’000 | ||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||
| Contract Sales | 2,465,663 | 305,382 | 732,476 | 604,520 | 823,285 | |||||||||||||||
| 1. Revenue | 1,976,907 | 280,714 | 488,165 | 482,373 | 725,655 | |||||||||||||||
| Gross Profit | 459,628 | 62,567 | 107,922 | 108,842 | 180,297 | |||||||||||||||
| Gross Profit Margin | 23.2 | % | 22.3 | % | 22.1 | % | 22.6 | % | 24.8 | % | ||||||||||
| SG&A | 212,568 | 35,505 | 47,894 | 50,976 | 78,193 | |||||||||||||||
| Interest Expense | 66,153 | 9,325 | 20,195 | 11,418 | 25,215 | |||||||||||||||
| 2. Profit Before Income Taxes | 193,228 | 22,042 | 46,678 | 38,895 | 85,613 | |||||||||||||||
| Income Taxes | 113,117 | 14,625 | 25,901 | 22,366 | 50,225 | |||||||||||||||
| 3. Net Profit | 80,111 | 7,417 | 20,777 | 16,529 | 35,388 | |||||||||||||||
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2017 Financial Results Adjusted for ASC 606 Adoption
| 2017 Total | 2017 Q1 | 2017 Q2 | 2017 Q3 | 2017 Q4 | ||||||||||||||||
| USD’000 | USD’000 | USD’000 | USD’000 | USD’000 | ||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||
| Contract Sales | 2,465,663 | 305,382 | 732,476 | 604,520 | 823,285 | |||||||||||||||
| 1. Revenue | 1,584,038 | 354,572 | 184,834 | 247,499 | 797,133 | |||||||||||||||
| Gross Profit | 346,635 | 70,098 | 31,576 | 49,599 | 195,362 | |||||||||||||||
| Gross Profit Margin | 21.9 | % | 19.8 | % | 17.1 | % | 20.0 | % | 24.5 | % | ||||||||||
| SG&A | 212,568 | 35,505 | 47,894 | 50,976 | 78,193 | |||||||||||||||
| Interest Expense | 66,153 | 9,325 | 20,195 | 11,418 | 25,215 | |||||||||||||||
| 2. Profit Before Income Taxes | 80,235 | 29,573 | (29,669 | ) | (20,347 | ) | 100,678 | |||||||||||||
| Income Taxes | 75,653 | 19,295 | 890 | 7,991 | 47,477 | |||||||||||||||
| 3. Net Profit | 4,582 | 10,278 | (30,559 | ) | (28,338 | ) | 53,201 | |||||||||||||
Real Estate Project Status in China
Below is a summary table of projects that were active and available for sale in the third quarter of 2018.
| Project | GFA | ||
| (m2 ’000s) | |||
| Total Active Project | Sold to date | Unsold to date | |
| Xingyang Splendid II | 137.0 | 82.9 | 54.1 |
| Kunshan Royal Palace | 280.6 | 278.9 | 1.7 |
| Jinan Royal Palace | 449.5 | 425.8 | 23.7 |
| Xuzhou Colorful City | 130.7 | 119.7 | 11.0 |
| Chengdu Thriving Family | 203.4 | 198.1 | 5.3 |
| Changsha Xinyuan Splendid | 251.7 | 245.3 | 6.4 |
| Sanya Yazhou Bay No.1 | 117.6 | 100.5 | 17.1 |
| Xi’an Metropolitan | 290.6 | 267.3 | 23.3 |
| Zhengzhou Xindo Park | 134.4 | 131.9 | 2.5 |
| Jinan Xin Central | 194.4 | 179.7 | 14.7 |
| Henan Xin Central I | 262.2 | 252.4 | 9.8 |
| Zhengzhou Fancy City I | 166.7 | 160.1 | 6.6 |
| Zhengzhou Fancy City II (South) | 84.1 | 81.9 | 2.2 |
| Tianjin Spring Royal Palace I | 139.2 | 131.0 | 8.2 |
| Kunshan Xindo Park | 89.0 | 82.8 | 6.2 |
| Zhengzhou International New City I | 360.7 | 338.2 | 22.5 |
| Henan Xin Central II | 109.5 | 103.8 | 5.7 |
| Xingyang Splendid III | 121.1 | 114.7 | 6.4 |
| Changsha Mulian Royal Palace | 91.1 | 89.5 | 1.6 |
| Zhengzhou International New City II | 176.0 | 162.6 | 13.4 |
| Zhengzhou International New City III A | 96.0 | 95.2 | 0.8 |
| Zhengzhou Fancy City II (North) | 108.5 | 79.8 | 28.7 |
| Tianjin Spring Royal Palace II | 144.6 | 37.8 | 106.8 |
| Zhengzhou International New City III D | 46.1 | 43.7 | 2.4 |
| Zhengzhou Hangmei International Wisdom City I | 64.7 | 35.0 | 29.7 |
| Zhengzhou International New City III B | 118.8 | 105.8 | 13.0 |
| Changsha Furong Thriving Family | 72.3 | 68.4 | 3.9 |
| Chengdu Xinyuan City I | 76.1 | 7.1 | 69.0 |
| Kunshan Xinyu Jiayuan | 108.2 | 13.1 | 95.1 |
| Xingyang Splendid IV | 22.0 | 14.6 | 7.4 |
| Suzhou Suhe Bay (Suzhou Wujiang New City) * | 62.6 | 9.6 | 53.0 |
| Others | 64.0 | - | 64.0 |
| Total active projects | 4,773.4 | 4,057.2 | 716.2 |
* The Company owns 16.66% equity interest in a joint venture, Suzhou Hengwan Real Estate Co., Ltd. which develops Suzhou Suhe Bay. The Company accounts for its investment under the equity method.
4
As of September 30, 2018, the Company’s total saleable GFA was approximately 5,874,300 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 ’000s) |
Pre-sales Scheduled |
||
| Tongzhou Xinyuan Royal Palace | 102.3 | To be determined | |
| Xinyuan Chang’an Royal Palace | 226.0 | To be determined | |
| Xinyuan Golden Water View City | 340.0 | 2018Q4 | |
| Zhengzhou International New City III C | 76.2 | 2018Q4 | |
| Zhengzhou International New City IV | 187.1 | 2018Q4 | |
| Zhengzhou International New City Land Bank(all land is grouped together and will be developed gradually) | 1,426.2 | To be determined | |
| Zhuhai Xin World | 70.0 | To be determined | |
| Lingshan Bay Dragon Seal | 380.0 | To be determined | |
| Zhengzhou Fancy City III | 83.0 | 2018Q4 | |
| Zhengzhou Hangmei International Wisdom City II | 75.8 | 2018Q4 | |
| Zhengzhou Hangmei Project Land Bank(all land is grouped together and will be developed gradually) | 192.7 | To be determined | |
| Zhengzhou Zhongmou Project | 480.0 | To be determined | |
| Suzhou Galaxy Bay (Suzhou Yinhewan Project) | 89.7 | To be determined | |
| Chengdu Xinyuan City(all land is grouped together and will be developed gradually) | 796.9 | To be determined | |
| Wuhan Canglong Royal Palace (Wuhan New Project) | 185.0 | To be determined | |
| Jinan Royal Spring Bay (Jinan Zhangqiu Project) | 118.0 | 2018Q4 | |
| Suzhou New Project | 24.0 | 2018Q4 | |
| Qingdao Royal Dragon Bay (Qingdao West Coast Project) | 155.0 | 2018Q4 | |
| Dalian International Health Technology Town(newly added) | 150.2 | 2018Q4 | |
| Total projects under planning | 5,158.1 | ||
| Total active projects | 716.2 | ||
| Total of all Xinyuan unsold projects in China | 5,874.3 |
Real Estate Project Update in the United States
As of September 30, 2018, a total of 176 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$259.3 million. During the first nine months of 2018, revenues were US$8.8 million.
The Company has completed excavation and foundation work for Hudson Garden project in the Hell’s Kitchen area of Manhattan, New York City. The design drawings were optimized, increasing the number of units from 82 to 92. Of the 38,000 SF of retail/commercial space a total of 29,000 SF has been leased to the U.S. department store retailer Target with a 20-year lease. Soft launch of sales is scheduled to begin in the last quarter of 2018.
5
The Company continues to execute on the planning, governmental approvals, and pre-development activities of its ground-up project in Flushing, New York City. The Landmark Protection Committee approved the Company’s landmark protection plan and awarded the Company a Certificate of Appropriateness. Transfer phase for landmarked artifacts is near to be completed by the end of 2018. Offsite restoration work will follow at a later date.
Real Estate Project Update in the United Kingdom
During the third quarter of 2018, another 11 floors were added to the structural core of the Madison project, resulting in 34 out of 53 floors built. Construction remains on track for completion in 2020. While a slowing economy in the UK and heightened Brexit uncertainty caused a low sales conversion rate, international demand remains robust.
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, 131 apartments have been sold with more reservations during the period expected to yield sales in the fourth quarter.
Business Outlook
The 2018 business outlook reflects the modified retrospective adoption of ASC 606 and may not be comparable to prior year periods.
For the fourth quarter of 2018, the Company expects contract sales to be approximately US$1,158.0 million.
For 2018, the Company expects an increase in contract sales of about 10% and an increase in consolidated net income of 15% to 20% over 2017.
This guidance excludes any potential foreign currency translation impact.
Conference Call Information
The Company will hold a conference call at 8:00 am ET on November 13, 2018 to discuss third quarter 2018 results. Listeners may access the call by dialing:
US Toll Free: 1-888-256-1007
International: 1-323-994-2093
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 November 20, 2018 by dialing:
US: 1-844-512-2921
International: 1-412-317-6671
Access code: 9099342
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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, 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. 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, 2017. 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.
Mr. Charles Wang
Investor Relations Director
Tel: +86 (10) 8588-9376
Email: irteam@xyre.com
ICR, LLC
In U.S.: +1-646-308-1472
Email: William.zima@icrinc.com
Media:
Edmond Lococo
In China: +86 (10) 6583-7510
Email: Edmond.Lococo@icrinc.com
7
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 | ||||||||||||
| September 30, | June 30, | September 30, | ||||||||||
| 2018 | 2018 | 2017 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Total revenue | 595,460 | 355,832 | 482,373 | |||||||||
| Total costs of revenue | (446,284 | ) | (246,452 | ) | (373,532 | ) | ||||||
| Gross profit | 149,176 | 109,380 | 108,841 | |||||||||
| Selling and distribution expenses | (12,282 | ) | (14,135 | ) | (18,890 | ) | ||||||
| General and administrative expenses | (35,414 | ) | (32,888 | ) | (32,085 | ) | ||||||
| Operating income | 101,480 | 62,357 | 57,866 | |||||||||
| Interest income | 8,084 | 7,100 | 5,454 | |||||||||
| Interest expense | (21,778 | ) | (24,704 | ) | (11,418 | ) | ||||||
| Net realized gain on short-term investments | 2,119 | 474 | 1,017 | |||||||||
| Unrealized (loss)/gain on short-term investments | (1,121 | ) | (696 | ) | 2,434 | |||||||
| Other expense | (443 | ) | (1,037 | ) | (3 | ) | ||||||
| Loss on extinguishment of debt | - | - | (15,880 | ) | ||||||||
| Exchange loss | (15,451 | ) | (22,518 | ) | (189 | ) | ||||||
| Share of loss of equity investees | (2,620 | ) | (3,227 | ) | (386 | ) | ||||||
| Income from operations before income taxes | 70,270 | 17,749 | 38,895 | |||||||||
| Income taxes | (46,415 | ) | (27,046 | ) | (22,366 | ) | ||||||
| Net income/(loss) | 23,855 | (9,297 | ) | 16,529 | ||||||||
| Net (income)/loss attributable to non-controlling interest | (3,729 | ) | 2,506 | (2,453 | ) | |||||||
| Net income/(loss) attributable to Xinyuan Real Estate Co., Ltd. shareholders | 20,126 | (6,791 | ) | 14,076 | ||||||||
| Earnings/(loss) per ADS: | ||||||||||||
| Basic | 0.32 | (0.10 | ) | 0.22 | ||||||||
| Diluted | 0.31 | (0.10 | ) | 0.22 | ||||||||
| ADS used in computation: | ||||||||||||
| Basic | 63,734 | 64,803 | 64,333 | |||||||||
| Diluted | 64,472 | 65,877 | 65,347 | |||||||||
8
| Nine months ended | ||||||||
| September 30, | September 30, | |||||||
| 2018 | 2017 | |||||||
| (unaudited) | (unaudited) | |||||||
| Total revenue | 1,125,389 | 1,251,252 | ||||||
| Total costs of revenue | (828,130 | ) | (971,921 | ) | ||||
| Gross profit | 297,259 | 279,331 | ||||||
| Selling and distribution expenses | (38,592 | ) | (47,449 | ) | ||||
| General and administrative expenses | (95,894 | ) | (86,925 | ) | ||||
| Operating income | 162,773 | 144,957 | ||||||
| Interest income | 21,534 | 12,428 | ||||||
| Interest expense | (76,266 | ) | (40,938 | ) | ||||
| Net realized gain on short-term investments | 3,830 | 3,862 | ||||||
| Unrealized (loss)/gain on short-term investments | (2,058 | ) | 4,212 | |||||
| Other (expense)/income | (1,272 | ) | 156 | |||||
| Loss on extinguishment of debt | - | (15,880 | ) | |||||
| Exchange loss | (26,330 | ) | (286 | ) | ||||
| Share of loss of equity investees | (6,769 | ) | (894 | ) | ||||
| Income from operations before income taxes | 75,442 | 107,617 | ||||||
| Income taxes | (73,602 | ) | (62,891 | ) | ||||
| Net income | 1,840 | 44,726 | ||||||
| Net loss/(income) attributable to non-controlling interest | 1,092 | (14,109 | ) | |||||
| Net income attributable to Xinyuan Real Estate Co., Ltd. shareholders | 2,932 | 30,617 | ||||||
| Earnings per ADS: | ||||||||
| Basic | 0.05 | 0.48 | ||||||
| Diluted | 0.04 | 0.47 | ||||||
| ADS used in computation: | ||||||||
| Basic | 64,443 | 64,217 | ||||||
| Diluted | 65,489 | 65,618 | ||||||
9
XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All US$ amounts and number of shares data in thousands)
| September 30, | June 30, | December 31, | ||||||||||
| 2018 | 2018 | 2017 | ||||||||||
| (unaudited) | (unaudited) | (audited) | ||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 1,000,886 | 1,067,179 | 894,551 | |||||||||
| Restricted cash | 416,060 | 384,276 | 566,676 | |||||||||
| Short-term investments | 243,036 | 99,244 | 57,740 | |||||||||
| Accounts receivable | 77,743 | 37,508 | 100,553 | |||||||||
| Other receivables | 114,829 | 51,575 | 73,194 | |||||||||
| Deposits for land use rights | 43,610 | 202,255 | 103,716 | |||||||||
| Other deposits and prepayments | 316,974 | 169,105 | 272,022 | |||||||||
| Advances to suppliers | 56,026 | 50,977 | 36,731 | |||||||||
| Real estate properties development completed | 678,029 | 710,504 | 840,393 | |||||||||
| Real estate properties under development | 4,469,128 | 3,694,817 | 1,996,001 | |||||||||
| Contract assets | 18,517 | 16,990 | - | |||||||||
| Amounts due from related parties | 157,422 | 136,287 | 125,662 | |||||||||
| Amounts due from employees | 4,420 | 3,307 | 2,174 | |||||||||
| Other current assets | 910 | 656 | 799 | |||||||||
| Total current assets | 7,597,590 | 6,624,680 | 5,070,212 | |||||||||
| Real estate properties held for lease, net | 272,526 | 286,689 | 277,933 | |||||||||
| Property and equipment, net | 32,241 | 30,378 | 32,386 | |||||||||
| Long-term investment | 612,901 | 842,508 | 829,773 | |||||||||
| Deferred tax assets | 136,828 | 142,772 | 82,006 | |||||||||
| Deposits for land use rights | 21,804 | 22,670 | 22,956 | |||||||||
| Amounts due from related parties | 29,538 | 30,020 | 24,666 | |||||||||
| Other assets | 134,920 | 169,103 | 44,502 | |||||||||
| TOTAL ASSETS | 8,838,348 | 8,148,820 | 6,384,434 | |||||||||
10
XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All US$ amounts and number of shares data in thousands)
| September 30, | June 30, | December 31, | ||||||||||
| 2018 | 2018 | 2017 | ||||||||||
| (unaudited) | (unaudited) | (audited) | ||||||||||
| LIABILITIES AND | ||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Accounts payable and notes payable | 626,425 | 491,159 | 690,839 | |||||||||
| Short-term bank loans and other debt | 190,932 | 167,338 | 247,758 | |||||||||
| Customer deposits | 2,490,508 | 2,639,504 | 438,342 | |||||||||
| Income tax payable | 110,353 | 114,878 | 169,839 | |||||||||
| Other payables and accrued liabilities | 496,956 | 266,547 | 300,120 | |||||||||
| Payroll and welfare payable | 10,093 | 10,288 | 31,445 | |||||||||
| Current portion of long-term bank loans and other debt | 2,105,469 | 1,690,379 | 1,648,233 | |||||||||
| Current maturities of capital lease obligations | 4,629 | 5,059 | 4,472 | |||||||||
| Mandatorily redeemable non-controlling interests | 14,159 | 15,853 | 15,593 | |||||||||
| Amounts due to related parties | 70,044 | 119,190 | 128,178 | |||||||||
| Total current liabilities | 6,119,568 | 5,520,195 | 3,674,819 | |||||||||
| Non-current liabilities | ||||||||||||
| Long-term bank loans | 622,849 | 297,524 | 11,019 | |||||||||
| Other long term debt | 1,165,132 | 1,430,226 | 1,404,814 | |||||||||
| Deferred tax liabilities | 202,878 | 141,404 | 164,204 | |||||||||
| Unrecognized tax benefits | 31,231 | 31,231 | 31,231 | |||||||||
| Capital lease obligations, net of current maturities | 8,409 | 8,408 | 11,415 | |||||||||
| Amounts due to related parties | 30,702 | 30,964 | 29,919 | |||||||||
| TOTAL LIABILITIES | 8,180,769 | 7,459,952 | 5,327,421 | |||||||||
| Shareholders’ equity | ||||||||||||
| Common shares | 16 | 16 | 16 | |||||||||
| Treasury shares | (78,265 | ) | (70,757 | ) | (67,792 | ) | ||||||
| Additional paid-in capital | 543,253 | 546,238 | 543,338 | |||||||||
| Statutory reserves | 105,844 | 105,848 | 105,660 | |||||||||
| Retained earnings | 94,317 | 80,619 | 382,124 | |||||||||
| Accumulated other comprehensive (loss)/income | (29,068 | ) | 8,250 | 29,226 | ||||||||
| Total Xinyuan Real Estate Co., Ltd. shareholders’ equity | 636,097 | 670,214 | 992,572 | |||||||||
| Non-controlling interest | 21,482 | 18,654 | 64,441 | |||||||||
| Total equity | 657,579 | 688,868 | 1,057,013 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 8,838,348 | 8,148,820 | 6,384,434 | |||||||||
11
Exhibit 99.3
Xinyuan Real Estate Co., Ltd. Announces Third Quarterly Dividend for 2018
BEIJING, November 13, 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 third quarter of 2018 of US$0.05 per common share, or US$0.10 per American Depositary Share (“ADS”), which will be payable before December 12, 2018 to shareholders of record as of November 26, 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, 2017. 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. 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