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 AUGUST 2019

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 ¨

 

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): ¨

 

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): ¨

 

 

 

 

 

 

TABLE OF CONTENTS

 

Exhibits

 

  Exhibit 99.1 Press release of Xinyuan Real Estate Co., Ltd., dated August 16, 2019, regarding second quarter 2019 financial results
  Exhibit 99.2 Press release of Xinyuan Real Estate Co., Ltd., dated August 16, 2019, regarding dividend declaration

 

Signature

 

 

 

 

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/ Brian Yu Chen
Name: Brian Yu Chen
Title: CFO

 

Date: August 16, 2019

 

[Signature Page to Form 6-K]

 

 

Exhibit 99.1

  

Xinyuan Real Estate Co., Ltd. Announces Second Quarter 2019 Financial Results

 

BEIJING, China, August 16, 2019 - 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 in other countries, today announced its unaudited financial results for the second quarter ended June 30, 2019.

 

Highlights

 

  · First half contract sales of 2019 increased 3.4% to RMB6,676.3 million from RMB6,457.0 million in the first half of 2018.

 

  · Contract sales decreased 20.0% to US$507.4 million from US$633.9 million in the second quarter of 2018 and increased 5.8% from US$479.7 million in the first quarter of 2019.

 

  · Total revenue increased 71.3% to US$609.4 million from US$355.8 million in the second quarter of 2018 and increased 30.0% from US$468.9 million in the first quarter of 2019.

 

  · Gross profit increased 45.5% to US$159.2 million from US$109.4 million in the second quarter of 2018 and increased 21.5% from US$131.0 million in the first quarter of 2019.

 

  · Selling, General and Administrative (“SG&A”) expenses as a percentage of total revenue decreased to 10.3% from 13.2% in the second quarter of 2018 and decreased from 12.0% in the first quarter of 2019.

 

  · Net income was US$19.8 million compared to net loss of US$9.3 million in the second quarter of 2018 and net income of US$18.2 million in the first quarter of 2019.

 

  · Current debt outstanding decreased 33.8% to US$1,207.2 million, or 33.6% of the total debt, from US$1,823.7 million, or 51.9% of the total debt, in the first quarter of 2019.

 

  · Diluted net earnings per American Depositary Share (“ADS”) attributable to shareholders were US$0.19 compared to diluted net loss of US$0.10 per ADS in the second quarter of 2018 and diluted net earnings of US$0.33 per ADS in the first quarter of 2019.

  

1

 

 

Mr. Yong Zhang, Xinyuan’s Chairman, stated, “In the first half of 2019, Xinyuan maintained stable growth and commenced pre-sales of three new projects in China. The total value of contracts signed in the first half was RMB7,323.2 million, representing a 12.0% increase compared to RMB6,537.4 million in the first half of 2018. Thanks to the outstanding sales performance, the company has achieved top- and bottom-line growth despite downward pressure on sales across the industry. In the first half of 2019, total revenue increased 103.5% year over year. Moreover, we were able to reduce SG&A expenses as a percentage of total revenue to 11.0% in the first half from 16.4% in the first half of 2018. As a result, gross profit increased by 96.0% year over year, and net income was US$38.0 million compared to a net loss of US$22.0 million in the first half of 2018. Furthermore, our overseas projects continued to proceed as planned, and presales of our Manhattan project are expected to launch at the end of the fourth quarter of 2019.

 

“At the same time, we are seeing a lasting impact from changes in the macro-economic environment and stringent government restriction policies on the Chinese housing market. However, we believe that our strategic focus on high quality tier-one and tier-two city projects as well as our strong execution capabilities enable us to further solidify our leading market position and deliver sustainable long-term growth. We remain committed to controlling our financial leverage and maximizing Xinyuan’s financial health. We are also pleased to offer another quarterly dividend payment to our shareholders,” concluded Mr. Zhang.

 

Second Quarter 2019 Financial Results

 

Contract Sales

Contract sales in China totaled US$507.4 million in the second quarter compared to US$630.3 million in the second quarter of 2018 and US$478.9 million in the first quarter of 2019.

 

The Company’s GFA sales in China were 233,200 square meters in the second quarter of 2019 compared to 282,900 square meters in the second quarter of 2018 and 211,400 square meters in the first quarter of 2019.

 

The average selling price (“ASP”) per square meter sold in China was RMB14,755 (US$2,176) in the second quarter of 2019 compared to RMB14,173 (US$2,226) in the second quarter of 2018 and RMB15,269 (US$2,264) in the first quarter of 2019.

 

The Company commenced pre-sales of two new projects in the second quarter of 2019, Xinyang Splendid V, Suzhou Gusu Shade II. The presales contributed 5.9% and 3.6% of total GFA sales and total contract sales, respectively.

 

2

 

 

Breakdown of GFA Sales and ASPs by Project in China

 

    Q2 2018     Q1 2019     Q2 2019  
  GFA     ASP     GFA     ASP     GFA     ASP  
Project   (m2, 000s)     (RMB)     (m2, 000s)     (RMB)     (m2, 000s)     (RMB)  
Xingyang Splendid II     0.3       9,939       10.2       7,478       3.6       7,330  
Jinan Royal Palace     27.4       16,341       1.6       15,661       2.8       14,739  
Xuzhou Colorful City     0.8       10,495       -       -       0.7       14,541  
Chengdu Thriving Family     1.3       16,011       (0.1 )     7,729       -       -  
Changsha Xinyuan Splendid     3.7       15,869       -       -       0.1       18,658  
Sanya Yazhou Bay No.1     12.0       25,758       0.4       25,615       0.3       38,158  
Xi’an Metropolitan     4.5       7,480       0.6       11,253       0.1       12,896  
Zhengzhou Xindo Park     0.4       7,560       -       -       0.7       8,661  
Jinan Xin Central     9.2       14,073       0.1       13,170       0.1       18,954  
Henan Xin Central I     1.0       15,342       0.1       14,887       0.7       7,942  
Zhengzhou Fancy City I     1.2       10,989       (1.4 )     15,073       0.5       13,714  
Zhengzhou Fancy City II (South)     0.8       14,103       (0.1 )     12,660       (0.1 )     9,469  
Tianjin Spring Royal Palace I     0.1       16,294       -       -       -       -  
Zhengzhou International New City I     6.0       25,102       -       -       -       -  
Henan Xin Central II     6.2       12,351       -       -       0.1       15,932  
Xingyang Splendid III     13.2       7,934       0.4       7,046       0.3       8,091  
Zhengzhou International New City II     1.7       13,671       -       -       0.5       18,997  
Zhengzhou Fancy City II (North)     35.3       9,801       3.5       9,838       2.8       9,884  
Tianjin Spring Royal Palace II     11.5       14,124       8.1       12,670       10.8       13,496  
Zhengzhou International New City III D     29.6       14,282       (0.1 )     14,461       0.6       14,045  
Zhengzhou Hangmei International Wisdom City I     16.2       7,195       2.3       7,144       1.8       6,845  
Zhengzhou International New City III B     51.3       13,996       0.8       13,262       0.7       15,174  
Chengdu Xinyuan City     -       -       33.1       9,511       2.7       7,585  
Kunshan Xinyu Jiayuan     -       -       5.5       24,208       13.0       23,660  
Xingyang Splendid IV     -       -       1.0       7,027       0.3       7,326  
Suzhou Suhe Bay *     -       -       30.0       21,680       8.5       21,461  
Zhengzhou Hangmei International Wisdom City II     -       -       0.5       7,350       9.3       7,394  
Qingdao Royal Dragon Bay     -       -       15.3       20,285       28.8       19,797  
Jinan Royal Spring Bay     -       -       2.7       9,201       4.0       8,777  
Xinyuan Golden Water View City-Zhengzhou     -       -       19.0       18,817       8.3       19,740  
Zhengzhou Fancy City III     -       -       20.5       12,637       8.5       12,729  
Zhengzhou International New City III C     -       -       17.3       12,260       15.7       12,459  
Zhengzhou International New City IV A12     -       -       24.8       14,254       34.8       14,224  
Zhengzhou International New City IV B10     -       -       7.9       13,969       15.5       10,698  
Suzhou Galaxy Bay     -       -       2.4       13,790       34.6       14,227  
Suzhou Gusu Shade I     -       -       0.8       36,262       5.6       37,678  
Dalian International Health Technology Town I     -       -       0.1       13,618       0.4       10,421  
Xingyang Splendid V     -       -       -       -       13.1       7,629  
Suzhou Gusu Shade II **     -       -       -       -       0.6       38,893  
Others     49.2       -       4.1       -       2.4       -  
Total     282.9       14,173       211.4       15,269       233.2       14,755  

  

* The Company owns 16.66% equity interest in Suzhou Hengwan Real Estate Co., Ltd., which develops Suzhou Suhe Bay. The Company accounts for its investment under the equity method.

 

** The Company owns 19.99% equity interest in Suzhou Litai Real Estate Co., Ltd., which develops Suzhou Gusu Shade II. The Company accounts for its investment under the equity method.

 

3

 

 

Revenue

In the second quarter of 2019, the Company’s total revenue increased 71.3% to US$609.4 million from US$355.8 million in the second quarter of 2018 and increased 30.0% from US$468.9 million in the first quarter of 2019.

 

Gross Profit

Gross profit for the second quarter of 2019 was US$159.2 million, or 26.1% of total revenue, compared to a gross profit of US$109.4 million, or 30.7% of total revenue, in the second quarter of 2018 and a gross profit of US$131.0 million, or 28.0% of total revenue, in the first quarter of 2019.

 

Selling, General and Administrative Expenses

SG&A expenses were US$63.0 million for the second quarter of 2019 compared to US$47.0 million for the second quarter of 2018 and US$56.1 million for the first quarter of 2019. As a percentage of total revenue, SG&A expenses were 10.3% compared to 13.2% in the second quarter of 2018 and 12.0% in the first quarter of 2019.

 

Net Income

Net income for the second quarter of 2019 was US$19.8 million compared to net loss of US$9.3 million for the second quarter of 2018 and net income of US$18.2 million for the first quarter of 2019. Net margin was 3.3% compared to negative 2.6% in the second quarter of 2018 and 3.9% in the first quarter of 2019. Diluted net earnings per ADS were US$0.19 compared to diluted net loss of US$0.10 per ADS in the second quarter of 2018 and diluted net earnings of US$0.33 per ADS in the first quarter of 2019.

        

Balance Sheet

As of June 30, 2019, the Company’s cash and cash equivalents (including restricted cash) decreased to US$1,021.8 million from US$1,127.2 million as of March 31, 2019.

 

Total debt outstanding was US$3,595.0 million, which reflects an increase of US$81.2 million from US$3,513.8 million at the end of the first quarter of 2019. The balance of the Company’s real estate properties under development at the end of the second quarter of 2019 was US$3,844.0 million compared to US$4,002.0 million at the end of the first quarter of 2019.

 

4

 

 

Real Estate Project Status in China

 

Below is a summary table of projects that were active and available for sale in the second quarter of 2019.

 

    GFA  
  (m2 ’000s)  
Project   Total Active
Projects
    Sold through
June 30, 2019
    Unsold as of
June 30, 2019
 
Xingyang Splendid II     136.9       97.5       39.4  
Jinan Royal Palace     449.6       431.7       17.9  
Xuzhou Colorful City     130.8       122.2       8.6  
Chengdu Thriving Family     203.4       198.0       5.4  
Changsha Xinyuan Splendid     251.7       249.0       2.7  
Sanya Yazhou Bay No.1     117.6       101.4       16.2  
Xi’an Metropolitan     286.0       269.7       16.3  
Zhengzhou Xindo Park     134.1       132.7       1.4  
Jinan Xin Central     194.4       183.5       10.9  
Henan Xin Central I     262.2       253.2       9.0  
Zhengzhou Fancy City I     166.7       159.4       7.3  
Zhengzhou Fancy City II (South)     84.1       81.7       2.4  
Tianjin Spring Royal Palace I     139.7       131.3       8.4  
Zhengzhou International New City I     360.7       338.5       22.2  
Henan Xin Central II     109.5       103.9       5.6  
Xingyang Splendid III     121.1       116.6       4.5  
Zhengzhou International New City II     176.0       163.7       12.3  
Zhengzhou Fancy City II (North)     108.7       90.9       17.8  
Tianjin Spring Royal Palace II     144.6       72.1       72.5  
Zhengzhou International New City III D     46.1       44.2       1.9  
Zhengzhou Hangmei International Wisdom City I     64.7       54.9       9.8  
Zhengzhou International New City III B     118.8       117.7       1.1  
Chengdu Xinyuan City     742.0       109.9       632.1  
Kunshan Xinyu Jiayuan     107.9       42.1       65.8  
Xingyang Splendid IV     22.0       22.0       -  
Suzhou Suhe Bay *     62.6       62.5       0.1  
Zhengzhou Hangmei International Wisdom City II     68.8       24.0       44.8  
Qingdao Royal Dragon Bay     157.3       64.6       92.7  
Jinan Royal Spring Bay     116.8       24.9       91.9  
Xinyuan Golden Water View City-Zhengzhou     331.5       63.2       268.3  
Zhengzhou Fancy City III     80.6       45.8       34.8  
Zhengzhou International New City III C     79.9       61.6       18.3  
Zhengzhou International New City IV A12     198.4       68.9       129.5  
Zhengzhou International New City IV B10     92.3       23.4       68.9  
Suzhou Galaxy Bay     76.5       61.3       15.2  
Suzhou Gusu Shade I     12.0       6.6       5.4  
Dalian International Health Technology Town I     103.8       1.3       102.5  
Xingyang Splendid V     80.5       13.1       67.4  
Suzhou Gusu Shade II **     14.3       0.6       13.7  
Others     42.1       -       42.1  
Total active projects     6,196.7       4,209.6       1,987.1  

 

* The Company owns 16.66% equity interest in Suzhou Hengwan Real Estate Co., Ltd., which develops Suzhou Suhe Bay. The Company accounts for its investment under the equity method.

 

** The Company owns 19.99% equity interest in Suzhou Litai Real Estate Co., Ltd., which develops Suzhou Gusu Shade II. The Company accounts for its investment under the equity method.

 

5

 

 

As of June 30, 2019, the Company’s total saleable GFA was approximately 5,224,600 square meters for active projects and under planning stage projects in China. Below is a summary of all of the Company’s projects in China:

 

    Unsold GFA as of
June 30, 2019
(m2 ’000s)
    Pre-sales
Scheduled
Tongzhou Xinyuan Royal Palace-Beijing     102.3     To be determined
Xinyuan Chang’an Royal Palace-Xi’an     226.0     To be determined
Zhengzhou International New City Land Bank (all land is grouped together and will be developed gradually)     1,300.3     To be determined
Zhuhai Xin World     70.0     To be determined
Lingshan Bay Dragon Seal-Qingdao     380.0     To be determined
Zhengzhou Hangmei Project Land Bank (all land is grouped together and will be developed gradually)     191.1     To be determined
Wuhan Hidden Dragon Royal Palace (old name: Wuhan Canglong Royal Palace)     185.0     To be determined
Dalian International Health Technology Town II     34.4     To be determined
Huzhou Silk Town *     144.1     2019 Q3
Xingyang Splendid New Project     147.5     To be determined
Foshan Xinchuang AI International Science and Technology Innovation Valley     456.8     To be determined
Total projects under planning     3,237.5      
Total active projects     1,987.1      
Total of all Xinyuan unsold projects in China     5,224.6      

 

* The Company owns 51% equity interest indirectly in Huzhou Xinhong Renju Construction Development Co., Ltd., which develops Huzhou Silk Town. Based on the articles of association, the company cannot exercise control of Huzhou Silk Town, but has the ability to exercise significant influence over Huzhou Silk Town's operating and financial decisions and accounted for it as an equity method investment.

 

Update on Real Estate Projects in the United States

 

As of June 30, 2019, a total of 177 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$260.1 million.

 

During the second quarter, the Company completed superstructure construction and closed out 90% of the external wall and windows for the Hudson Garden project, BLOOM ON FORTY FIFTH, in the Hell’s Kitchen area of Manhattan, New York City. During the past year, the design drawings were optimized, increasing the number of units from 82 to 92. Of the 38,000 square feet of retail/commercial space, a total of 29,000 square feet have been leased to the U.S. department store retailer Target for a 20-year term. The offering plan was approved in the first quarter of 2019, and the launch of presales is expected to begin in the end of the fourth quarter of 2019.

 

The Company continued to execute on the planning, governmental approvals, and pre-development activities of its ground-up project, the RKO, in Flushing, New York City. During the past year, the Landmark Preservation Committee approved the Company’s landmark protection plan relating to the landmarked theater on site and awarded the Company a Certificate of Appropriateness. Landmark artifact removal was completed at the end of February 2019, and the artifacts are currently stored in a warehouse for restoration work.

 

Real Estate Project Update in the United Kingdom

 

During the second quarter of 2019, the structural frame of the Company’s Madison project in London was completed, reaching a significant milestone for the delivery of the project. Construction remains on track for completion in 2020.

 

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, 134 apartments have been sold.

 

6

 

  

Business Outlook

 

For the full year of 2019, the Company expects an increase in contract sales of about 10% and an increase in consolidated net income of 15% to 20% over 2018.

 

Conference Call Information

The Company will hold a conference call at 8:00 am ET on August 16, 2019, to discuss its second quarter 2019 results. Listeners may access the call by dialing:

 

US Toll Free: 1-800-458-4121

International: 1-323-794-2597

 

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 August 23, 2019, by dialing:

 

US: 1-844-512-2921

International: 1-412-317-6671

Access code: 5806910

 

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, 2018. 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. Charles Wang

Investor Relations Director

Tel: +86 (10) 8588-9376

Email: irteam@xyre.com

 

ICR, LLC

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

 

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 
   June 30,   March 31,   June 30, 
   2019   2019   2018 
   (unaudited)   (unaudited)   (unaudited) 
Total revenue   609,439    468,853    355,832 
                
Total costs of revenue   (450,224)   (337,804)   (246,452)
Gross profit   159,215    131,049    109,380 
                
Selling and distribution expenses   (20,633)   (19,406)   (14,135)
General and administrative expenses   (42,343)   (36,644)   (32,888)
                
Operating income   96,239    74,999    62,357 
                
Interest income   4,964    4,085    7,100 
Interest expense   (28,384)   (24,306)   (24,704)
Net realized (loss) /gain on short-term investments   (333)   1,171    474 
Unrealized gain/ (loss) on short-term investments   838    -    (696)
Other (expense)/ income   (867)   94    (1,037)
Net loss on debt extinguishment   (1,955)   (4,589)   - 
Exchange (loss)/ gain   (4,354)   3,545    (22,518)
Share of loss of equity investees   (1,702)   (1,600)   (3,227)
                
Income from operations before income taxes   64,446    53,399    17,749 
                
Income taxes   (44,621)   (35,209)   (27,046)
                
Net income/(loss)   19,825    18,190    (9,297)
Net (income) /loss attributable to non-controlling interest   (9,171)   1,419    2,506 
Net income/(loss) attributable to Xinyuan Real Estate Co., Ltd. shareholders   10,654    19,609    (6,791)
                
Earnings/(loss) per ADS:               
Basic   0.19    0.33    (0.10)
Diluted   0.19    0.33    (0.10)
ADS used in computation:               
Basic   57,003    58,911    64,803 
Diluted   57,371    59,325    65,877 

 

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)

  

   Six months ended 
   June 30,   June 30, 
   2019   2018 
   (unaudited)   (unaudited) 
Total revenue   1,078,292    529,929 
           
Total costs of revenue   (788,028)   (381,846)
Gross profit   290,264    148,083 
           
Selling and distribution expenses   (40,039)   (26,309)
General and administrative expenses   (78,987)   (60,481)
           
Operating income   171,238    61,293 
           
Interest income   9,049    13,450 
Interest expense   (52,690)   (54,489)
Net realized gain on short-term investments   838    1,711 
Unrealized gain/ (loss) on short-term investments   838    (937)
Other expense   (773)   (830)
Loss on extinguishment of debt   (6,544)   - 
Exchange loss   (809)   (10,879)
Share of loss of equity investees   (3,302)   (4,149)
           
Income from operations before income taxes   117,845    5,170 
           
Income taxes   (79,830)   (27,187)
           
Net income/(loss)   38,015    (22,017)
Net (income)/ loss attributable to non-controlling interest   (7,752)   4,821 
Net income/(loss) attributable to Xinyuan Real Estate Co., Ltd. shareholders   30,263    (17,196)
           
Earnings/(loss) per ADS:          
Basic   0.52    (0.27)
Diluted   0.52    (0.26)
ADS used in computation:          
Basic   57,950    64,803 
Diluted   58,309    66,082 

 

10

 

  

XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

   June 30,   March 31,   December 31, 
   2019   2019   2018 
   (unaudited)   (unaudited)   (audited) 
ASSETS               
Current assets               
Cash and cash equivalents   666,057    761,190    674,142 
Restricted cash   355,776    366,008    511,875 
Short-term investments   838    -    8,442 
Accounts receivable   73,158    44,473    64,130 
Other receivables   176,299    171,271    166,633 
Deposits for land use rights   22,546    46,038    42,254 
Other deposits and prepayments   297,863    258,490    257,288 
Advances to suppliers   51,550    47,909    46,983 
Real estate properties development completed   714,651    623,871    632,360 
Real estate properties under development   3,843,980    4,001,981    4,068,716 
Amounts due from related parties   313,532    257,625    216,184 
Amounts due from employees   2,955    4,315    1,694 
Other current assets   1,334    602    520 
                
Total current assets   6,520,539    6,583,773    6,691,221 
                
Real estate properties held for lease, net   297,565    305,897    302,764 
Property and equipment, net   35,725    37,512    38,114 
Long-term investment   552,312    566,816    564,340 
Deferred tax assets   206,511    241,823    230,453 
Deposits for land use rights   21,819    22,276    21,855 
Amounts due from related parties   24,632    27,289    26,122 
Contract assets   20,316    16,292    21,779 
Operating lease right-of-use assets   12,920    14,039    - 
Other assets   131,910    135,710    137,063 
                
TOTAL ASSETS   7,824,249    7,951,427    8,033,711 

  

11

 

 

XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

   June 30,   March 31,   December 31, 
   2019   2019   2018 
   (unaudited)   (unaudited)   (audited) 
LIABILITIES AND SHAREHOLDERS’ EQUITY               
Current liabilities               
Accounts payable and notes payable   833,073    704,397    790,631 
Short-term bank loans and other debt   35,901    27,326    43,711 
Customer deposits   1,573,859    1,827,630    1,921,851 
Income tax payable   165,737    198,148    213,273 
Other payables and accrued liabilities   340,145    341,919    341,108 
Payroll and welfare payable   16,529    12,812    33,752 
Current portion of long-term bank loans and other debt   1,207,191    1,823,724    1,647,918 
Current maturities of lease obligations   12,320    12,604    6,562 
Mandatorily redeemable non-controlling interests   6,905    22,892    22,559 
Amounts due to related parties   32,224    41,204    48,502 
                
Total current liabilities   4,223,884    5,012,656    5,069,867 
                
Non-current liabilities               
Long-term bank loans   732,874    790,267    720,039 
Other long-term debt   1,619,007    872,468    1,040,455 
Deferred tax liabilities   393,541    412,354    370,509 
Unrecognized tax benefits   58,922    45,939    45,939 
Lease obligations, net of current maturities   13,645    16,530    10,015 
Amounts due to related parties   28,879    32,537    31,242 
TOTAL LIABILITIES   7,070,752    7,182,751    7,288,066 
                
Shareholders’ equity               
Common shares   16    16    16 
Treasury shares   (104,233)   (97,934)   (87,639)
Additional paid-in capital   533,366    532,641    532,117 
Statutory reserves   166,501    166,501    166,496 
Retained earnings   117,904    112,660    99,502 
Accumulated other comprehensive loss   (32,957)   (10,409)   (30,122)
                
Total Xinyuan Real Estate Co., Ltd. shareholders’ equity   680,597    703,475    680,370 
                
Non-controlling interest   72,900    65,201    65,275 
Total equity   753,497    768,676    745,645 
                
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   7,824,249    7,951,427    8,033,711 

  

12

Exhibit 99.2

 

Xinyuan Real Estate Co., Ltd. Announces Second Quarterly Dividend for 2019

 

BEIJING, August 16, 2019 – 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 second quarter of 2019 of US$0.05 per common share, or US$0.10 per American Depositary Share, which will be payable on September 17, 2019 to shareholders of record as of September 3, 2019.

 

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.

 

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