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 DECEMBER 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 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
TABLE OF CONTENTS
Exhibits
| Exhibit 99.1 | Press release of Xinyuan Real Estate Co., Ltd., dated December 6, 2019, regarding third quarter 2019 financial results | |
| Exhibit 99.2 | Press release of Xinyuan Real Estate Co., Ltd., dated December 6, 2019, announcing third quarter 2019 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/ Yu (Brian) Chen | |
| Name: | Yu (Brian) Chen | |
| Title: | Chief Financial Officer | |
Date: December 6, 2019
[Signature Page to Form 6-K]
Exhibit 99.1
Xinyuan Real Estate Co., Ltd. Announces Third Quarter 2019 Financial Results
BEIJING, China, December 6, 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 third quarter ended September 30, 2019.
Highlights
| · | Total revenue increased 40.0% to US$1,575.9 million for the nine months ended September 30, 2019, from US$1,125.4 million in the same period of the prior year. Total revenue decreased 16.4% to US$497.6 million in the third quarter of 2019 from US$595.5 million in the third quarter of 2018 and decreased 18.3% from US$609.4 million in the second quarter of 2019. |
| · | Gross profit increased 39.2% to US$413.8 million for the nine months ended September 30, 2019, from US$297.3 million in the same period of the prior year. Gross profit decreased 17.2% to US$123.5 million in the third quarter of 2019 from US$149.2 million in the third quarter of 2018 and decreased 22.4% from US$159.2 million in the second quarter of 2019. |
| · | Net income was US$43.5 million for the nine months ended September 30, 2019, compared to US$1.8 million in the same period of the prior year. Net income was US$5.4 million in the third quarter of 2019 compared to US$23.9 million in the third quarter of 2018 and US$19.8 million in the second quarter of 2019. |
| · | Contract sales decreased 5.4% to US$1,479.3 million for the nine months ended September 30, 2019, from US$1,563.8 million in the same period of the prior year. Excluding the impact of change in exchange rate between RMB and the USD, contract sales remained flat compared to the same period of the prior year in RMB. Contract sales decreased 11.6% to US$504.8 million in the third quarter of 2019 from US$571.3 million in the third quarter of 2018 and decreased 0.5% from US$507.4 million in the second quarter of 2019. |
| · | Diluted net earnings per American Depositary Share (“ADS”) attributable to shareholders were US$0.60 for the nine months ended September 30, 2019, compared to US$0.04 in the same period of the prior year. Diluted net earnings per ADS attributable to shareholders were US$0.07 in the third quarter of 2019 compared to US$0.31 in the third quarter of 2018 and US$0.19 in the second quarter of 2019. |
| · | Current debt outstanding at the end of the third quarter of 2019 decreased 18.8% to US$1,009.6 million, or 31.4% of total debt, from US$1,243.1 million, or 34.6% of total debt, at the end of the second quarter of 2019. |
Mr. Yong Zhang, Xinyuan’s Chairman, stated, “This quarter, we remained profitable despite uncertainties in the macro-economic environment and stringent government restrictions on the Chinese housing market. These headwinds caused contract sales in the third quarter of 2019 to decrease compared to the same quarter in 2018, and total revenue decreased as well. However, we continued to see demand for our offerings and were able to commence pre-sales of two new projects, which contributed 7.3% and 9.1% of total GFA sales and contract sales, respectively.”
| 1 |
“We continued to make progress in our overseas projects,” added Mr. Zhang. “Our Hudson Garden project hard costs remained on track, and we received the Temporary Certification of Occupancy for Target’s ground floor occupancy in early November. We engaged GKV Architects for our RKO project in Flushing to develop new architectural plans, and schematic designs are already complete. Our Madison project in the United Kingdom remains on course for completion in 2020.”
Mr. Zhang continued, “In October, our Xinyuan Property Management Company was successfully listed on the Hong Kong Stock Exchange under the code ‘01895’. Our Xinyuan Property Management subsidiary has achieved rapid growth in recent years, and we believe that listing on a high-quality platform will benefit all of our shareholders.”
“Although uncertainties persist in the market, we are confident in our long-term strategy. We are constantly seeking new opportunities to enhance the Company’s overall performance and to further differentiate ourselves in the market with our auxiliary businesses and services. Furthermore, we are also pleased to offer another quarterly dividend payment to our shareholders,” concluded Mr. Zhang.
Third Quarter 2019 Financial Results
Contract Sales
Contract sales in China totaled US$504.8 million in the third quarter compared to US$571.3 million in the third quarter of 2018 and US$507.4 million in the second quarter of 2019.
The Company’s GFA sales in China were 255,600 square meters in the third quarter of 2019 compared to 277,500 square meters in the third quarter of 2018 and 233,200 square meters in the second quarter of 2019.
The average selling price (“ASP”) per square meter sold in China was RMB13,531 (US$1,975) in the third quarter of 2019 compared to RMB13,406 (US$2,059) in the third quarter of 2018 and RMB14,755 (US$2,176) in the second quarter of 2019.
The Company commenced pre-sales of two new projects in the third quarter of 2019, Zhengzhou International New City V A04 and Huzhou Silk Town. The presales contributed 7.3% and 9.1% of total GFA sales and total contract sales, respectively.
| 2 |
Breakdown of GFA Sales and ASPs by Project in China
| Project | Q3 2018 | Q2 2019 | Q3 2019 | |||
| GFA | ASP | GFA | ASP | GFA | ASP | |
| (m2, 000s) | (RMB) | (m2, 000s) | (RMB) | (m2, 000s) | (RMB) | |
| Xingyang Splendid II | 1.2 | 13,900 | 3.6 | 7,330 | 0.4 | 13,048 |
| Jinan Royal Palace | 25.9 | 16,426 | 2.8 | 14,739 | 2.2 | 16,483 |
| Xuzhou Colorful City | 0.1 | 10,989 | 0.7 | 14,541 | 0.4 | 12,453 |
| Sanya Yazhou Bay No.1 | (0.9) | 23,515 | 0.3 | 38,158 | 0.4 | 24,890 |
| Xi’an Metropolitan | 1.8 | 10,546 | 0.1 | 12,896 | 0.1 | 12,845 |
| Jinan Xin Central | 1.3 | 12,839 | 0.1 | 18,954 | 0.4 | 12,926 |
| Henan Xin Central I | 0.3 | 18,931 | 0.7 | 7,942 | - | - |
| Zhengzhou Fancy City I | 0.2 | 17,481 | 0.5 | 13,714 | - | - |
| Zhengzhou Fancy City II (South) | 0.4 | 17,780 | (0.1) | 9,469 | - | - |
| Tianjin Spring Royal Palace I | - | - | - | - | 0.3 | 11,468 |
| Zhengzhou International New City I | 2.3 | 25,725 | - | - | 5.9 | 14,784 |
| Henan Xin Central II | 0.2 | 16,913 | 0.1 | 15,932 | - | - |
| Xingyang Splendid III | 2.7 | 8,018 | 0.3 | 8,091 | 0.8 | 16,498 |
| Zhengzhou International New City II | 3.4 | 13,388 | 0.5 | 18,997 | 1.9 | 17,817 |
| Zhengzhou Fancy City II (North) | 2.5 | 9,567 | 2.8 | 9,884 | 4.3 | 9,148 |
| Tianjin Spring Royal Palace II | 23.6 | 12,691 | 10.8 | 13,496 | 8.1 | 13,403 |
| Zhengzhou International New City III D | 14.0 | 14,264 | 0.6 | 14,045 | 0.1 | 14,446 |
| Zhengzhou Hangmei International Wisdom City I | 18.9 | 7,230 | 1.8 | 6,845 | 0.5 | 6,968 |
| Zhengzhou International New City III B | 54.5 | 14,135 | 0.7 | 15,174 | 0.1 | 13,874 |
| Changsha Furong Thriving Family | 68.4 | 9,773 | - | - | 0.2 | 9,568 |
| Chengdu Xinyuan City | 7.1 | 9,988 | 2.7 | 7,585 | 6.1 | 7,210 |
| Kunshan Xinyu Jiayuan | 13.1 | 26,108 | 13.0 | 23,660 | 5.6 | 23,878 |
| Xingyang Splendid IV | 14.7 | 7,576 | 0.3 | 7,326 | 7.9 | 7,629 |
| Suzhou Suhe Bay * | 9.6 | 21,722 | 8.5 | 21,461 | - | - |
| Zhengzhou Hangmei International Wisdom City II | - | - | 9.3 | 7,394 | 9.2 | 7,391 |
| Qingdao Royal Dragon Bay | - | - | 28.8 | 19,797 | 6.9 | 22,162 |
| Jinan Royal Spring Bay | - | - | 4.0 | 8,777 | 5.8 | 8,547 |
| Xinyuan Golden Water View City-Zhengzhou | - | - | 8.3 | 19,740 | 1.3 | 24,217 |
| Zhengzhou Fancy City III | - | - | 8.5 | 12,729 | 11.5 | 13,221 |
| Zhengzhou International New City III C | - | - | 15.7 | 12,459 | 4.6 | 13,157 |
| Zhengzhou International New City IV A12 | - | - | 34.8 | 14,224 | 85.6 | 14,325 |
| Zhengzhou International New City IV B10 | - | - | 15.5 | 10,698 | 12.5 | 9,996 |
| Suzhou Galaxy Bay | - | - | 34.6 | 14,227 | 10.8 | 14,591 |
| Suzhou Gusu Shade I | - | - | 5.6 | 37,678 | 1.6 | 37,563 |
| Dalian International Health Technology Town I | - | - | 0.4 | 10,421 | 19.6 | 9,349 |
| Xingyang Splendid V | - | - | 13.1 | 7,629 | 18.4 | 7,635 |
| Suzhou Gusu Shade II ** | - | - | 0.6 | 38,893 | 3.4 | 38,111 |
| Zhengzhou International New City V A04 | - | - | - | - | 0.3 | 12,068 |
| Huzhou Silk Town *** | - | - | - | - | 18.4 | 16,840 |
| Others | 12.2 | - | 3.2 | - | - | - |
| Total | 277.5 | 13,406 | 233.2 | 14,755 | 255.6 | 13,531 |
* 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.
*** 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.
| 3 |
Revenue
In the third quarter of 2019, the Company’s total revenue decreased 16.4% to US$497.6 million from US$595.5 million in the third quarter of 2018 and decreased 18.3% from US$609.4 million in the second quarter of 2019.
Gross Profit
Gross profit for the third quarter of 2019 was US$123.5 million, or 24.8% of total revenue, compared to gross profit of US$149.2 million, or 25.1% of total revenue, in the third quarter of 2018 and a gross profit of US$159.2 million, or 26.1% of total revenue, in the second quarter of 2019.
Selling, General and Administrative Expenses
SG&A expenses were US$57.6 million for the third quarter of 2019 compared to US$47.7 million for the third quarter of 2018 and US$63.0 million for the second quarter of 2019. As a percentage of total revenue, SG&A expenses were 11.6% compared to 8.0% in the third quarter of 2018 and 10.3% in the second quarter of 2019.
Net Income
Net income for the third quarter of 2019 was US$5.4 million compared to US$23.9 million for the third quarter of 2018 and US$19.8 million for the second quarter of 2019. Net margin was 1.1% compared to 4.0% in the third quarter of 2018 and 3.3% in the second quarter of 2019. Diluted net earnings per ADS were US$0.07 compared to US$0.31 per ADS in the third quarter of 2018 and US$0.19 per ADS in the second quarter of 2019.
Balance Sheet
As of September 30, 2019, the Company’s cash and cash equivalents (including restricted cash) decreased to US$688.4 million from US$1,021.8 million as of June 30, 2019.
Total debt outstanding was US$3,211.7 million, which reflects a decrease of US$383.3 million from US$3,595.0 million at the end of the second quarter of 2019. The balance of the Company’s real estate properties under development at the end of the third quarter of 2019 was US$3,589.8 million compared to US$3,844.0 million at the end of the second 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 third quarter of 2019.
| Project | GFA | ||
| (m2, 000s) | |||
| Total Active Projects | Sold to date | Unsold to date | |
| Xingyang Splendid II | 118.5 | 97.8 | 20.7 |
| Jinan Royal Palace | 449.6 | 433.8 | 15.8 |
| Xuzhou Colorful City | 130.8 | 122.6 | 8.2 |
| Sanya Yazhou Bay No.1 | 117.6 | 101.8 | 15.8 |
| Xi’an Metropolitan | 286.0 | 269.9 | 16.1 |
| Jinan Xin Central | 194.4 | 183.9 | 10.5 |
| Henan Xin Central I | 261.5 | 253.2 | 8.3 |
| 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 | 131.6 | 8.1 |
| Zhengzhou International New City I | 356.6 | 344.4 | 12.2 |
| Henan Xin Central II | 109.5 | 103.9 | 5.6 |
| Xingyang Splendid III | 121.1 | 117.3 | 3.8 |
| Zhengzhou International New City II | 176.0 | 165.6 | 10.4 |
| Zhengzhou Fancy City II (North) | 108.7 | 95.2 | 13.5 |
| Tianjin Spring Royal Palace II | 144.6 | 80.2 | 64.4 |
| Zhengzhou International New City III D | 46.1 | 44.3 | 1.8 |
| Zhengzhou Hangmei International Wisdom City I | 64.7 | 55.5 | 9.2 |
| Zhengzhou International New City III B | 118.8 | 117.9 | 0.9 |
| Changsha Furong Thriving Family | 72.3 | 72.3 | - |
| Chengdu Xinyuan City | 741.8 | 116.0 | 625.8 |
| Kunshan Xinyu Jiayuan | 107.9 | 47.7 | 60.2 |
| Xingyang Splendid IV | 151.8 | 29.9 | 121.9 |
| Suzhou Suhe Bay * | 62.6 | 62.6 | - |
| Zhengzhou Hangmei International Wisdom City II | 78.4 | 33.2 | 45.2 |
| Qingdao Royal Dragon Bay | 157.3 | 71.5 | 85.8 |
| Jinan Royal Spring Bay | 116.8 | 30.7 | 86.1 |
| Xinyuan Golden Water View City-Zhengzhou | 331.5 | 64.5 | 267.0 |
| Zhengzhou Fancy City III | 80.6 | 57.3 | 23.3 |
| Zhengzhou International New City III C | 82.3 | 66.2 | 16.1 |
| Zhengzhou International New City IV A12 | 199.7 | 154.5 | 45.2 |
| Zhengzhou International New City IV B10 | 92.3 | 35.9 | 56.4 |
| Suzhou Galaxy Bay | 76.5 | 72.1 | 4.4 |
| Suzhou Gusu Shade I | 12.0 | 8.2 | 3.8 |
| Dalian International Health Technology Town I | 103.8 | 20.9 | 82.9 |
| Xingyang Splendid V | 80.5 | 31.5 | 49.0 |
| Suzhou Gusu Shade II ** | 14.3 | 4.0 | 10.3 |
| Zhengzhou International New City V A04 | 104.9 | 0.3 | 104.6 |
| Huzhou Silk Town *** | 141.4 | 18.4 | 123.0 |
| Others | 51.4 | - | 51.4 |
| Total active projects | 6,055.1 | 3,957.7 | 2,097.4 |
* 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.
*** 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.
| 5 |
As of September 30, 2019, the Company’s total saleable GFA was approximately 5,049,200 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 (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) | 1,187.9 | 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) | 181.5 | To be determined | |
| Wuhan Hidden Dragon Royal Palace | 185.0 | To be determined | |
| Dalian International Health Technology Town II | 34.4 | To be determined | |
| Foshan Xinchuang AI International Science and Technology Innovation Valley | 456.8 | To be determined | |
| Taizhou Yihe Yayuan | 127.9 | To be determined | |
| Total projects under planning | 2,951.8 | ||
| Total active projects | 2,097.4 | ||
| Total of all Xinyuan unsold projects in China | 5,049.2 |
Update on Real Estate Projects in the United States
As of September 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.
As of September 30, 2019, the Company had completed superstructure construction, precast concrete facade, and windows installation for its Hudson Garden project, BLOOM ON FORTY FIFTH, in the Hell’s Kitchen area of Manhattan, New York City. The project had also received permanent power from the electric utility provider. Hard costs remain under budget and trend on schedule. During the past year, the project’s design drawings were optimized, increasing the number of residential units from 82 to 92. Of the total sellable 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 and another 1,910 square feet have been leased to a dermatologist's office for a 15 year term. Residential unit sales are slated to open in the first quarter of 2020.
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. As of September 30, 2019, GKV Architects was engaged to develop new architectural plans, and the schematic design is 100% completed. 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 third quarter of 2019, construction progressed as expected on the Madison project in London. Cladding is slated for completion in the fourth quarter of 2019, and the internal fit out is progressing in earnest. The project remains on course 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.
Business Outlook
For the full year of 2019, the Company expects consolidated net income and contract sales to be similar to those of 2018.
| 6 |
Conference Call Information
The Company will hold a conference call at 8:00am ET on December 6, 2019, to discuss its third quarter 2019 results. Listeners may access the call by dialing:
US Toll Free: 888-394-8218
International: 1-323-794-2588
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 December 13, 2019, by dialing:
US: 1-844-512-2921
International: 1-412-317-6671
Access code: 8907992
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:
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
| 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 | ||||||||||||
| September 30, | June 30, | September 30, | ||||||||||
| 2019 | 2019 | 2018 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Total revenue | 497,638 | 609,439 | 595,460 | |||||||||
| Total costs of revenue | (374,134 | ) | (450,224 | ) | (446,284 | ) | ||||||
| Gross profit | 123,504 | 159,215 | 149,176 | |||||||||
| Selling and distribution expenses | (21,067 | ) | (20,633 | ) | (12,282 | ) | ||||||
| General and administrative expenses | (36,556 | ) | (42,343 | ) | (35,414 | ) | ||||||
| Operating income | 65,881 | 96,239 | 101,480 | |||||||||
| Interest income | 4,245 | 4,964 | 8,084 | |||||||||
| Interest expense | (31,338 | ) | (28,384 | ) | (21,778 | ) | ||||||
| Net realized gain/(loss) on short-term investments | 3,297 | (333 | ) | 2,119 | ||||||||
| Unrealized (loss) /gain on short-term investments | (811 | ) | 838 | (1,121 | ) | |||||||
| Other income/(expense) | 6,493 | (867 | ) | (443 | ) | |||||||
| Net loss on debt extinguishment | (2,272 | ) | (1,955 | ) | - | |||||||
| Exchange loss | (7,655 | ) | (4,354 | ) | (15,451 | ) | ||||||
| Share of loss of equity investees | (2,142 | ) | (1,702 | ) | (2,620 | ) | ||||||
| Income from operations before income taxes | 35,698 | 64,446 | 70,270 | |||||||||
| Income taxes | (30,256 | ) | (44,621 | ) | (46,415 | ) | ||||||
| Net income | 5,442 | 19,825 | 23,855 | |||||||||
| Net income attributable to non-controlling interest | (1,298 | ) | (9,171 | ) | (3,729 | ) | ||||||
| Net income attributable to Xinyuan Real Estate Co., Ltd. shareholders | 4,144 | 10,654 | 20,126 | |||||||||
| Earnings per ADS: | ||||||||||||
| Basic | 0.07 | 0.19 | 0.32 | |||||||||
| Diluted | 0.07 | 0.19 | 0.31 | |||||||||
| ADS used in computation: | ||||||||||||
| Basic | 56,329 | 57,003 | 63,734 | |||||||||
| Diluted | 56,624 | 57,371 | 64,472 | |||||||||
| 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)
| Nine months ended | ||||||||
| September 30, | September 30, | |||||||
| 2019 | 2018 | |||||||
| (unaudited) | (unaudited) | |||||||
| Total revenue | 1,575,930 | 1,125,389 | ||||||
| Total costs of revenue | (1,162,162 | ) | (828,130 | ) | ||||
| Gross profit | 413,768 | 297,259 | ||||||
| Selling and distribution expenses | (61,106 | ) | (38,592 | ) | ||||
| General and administrative expenses | (115,543 | ) | (95,894 | ) | ||||
| Operating income | 237,119 | 162,773 | ||||||
| Interest income | 13,294 | 21,534 | ||||||
| Interest expense | (84,028 | ) | (76,266 | ) | ||||
| Net realized gain on short-term investments | 4,135 | 3,830 | ||||||
| Unrealized gain/ (loss) on short-term investments | 27 | (2,058 | ) | |||||
| Other income/ (expense) | 5,720 | (1,272 | ) | |||||
| Net loss on debt extinguishment | (8,816 | ) | - | |||||
| Exchange loss | (8,464 | ) | (26,330 | ) | ||||
| Share of loss of equity investees | (5,444 | ) | (6,769 | ) | ||||
| Income from operations before income taxes | 153,543 | 75,442 | ||||||
| Income taxes | (110,086 | ) | (73,602 | ) | ||||
| Net income | 43,457 | 1,840 | ||||||
| Net (income)/ loss attributable to non-controlling interest | (9,050 | ) | 1,092 | |||||
| Net income attributable to Xinyuan Real Estate Co., Ltd. shareholders | 34,407 | 2,932 | ||||||
| Earnings per ADS: | ||||||||
| Basic | 0.60 | 0.05 | ||||||
| Diluted | 0.60 | 0.04 | ||||||
| ADS used in computation: | ||||||||
| Basic | 57,404 | 64,443 | ||||||
| Diluted | 57,758 | 65,489 | ||||||
| 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, | ||||||||||
| 2019 | 2019 | 2018 | ||||||||||
| (unaudited) | (unaudited) | (audited) | ||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 327,488 | 666,057 | 674,142 | |||||||||
| Restricted cash | 220,487 | 355,776 | 511,875 | |||||||||
| Short-term investments | 27 | 838 | 8,442 | |||||||||
| Accounts receivable | 61,812 | 73,158 | 64,130 | |||||||||
| Other receivables | 150,637 | 176,299 | 166,633 | |||||||||
| Deposits for land use rights | - | 22,546 | 42,254 | |||||||||
| Other deposits and prepayments | 321,107 | 297,863 | 257,288 | |||||||||
| Advances to suppliers | 52,649 | 51,550 | 46,983 | |||||||||
| Real estate properties development completed | 461,419 | 714,651 | 632,360 | |||||||||
| Real estate properties under development | 3,589,814 | 3,843,980 | 4,068,716 | |||||||||
| Amounts due from related parties | 317,151 | 313,532 | 216,184 | |||||||||
| Amounts due from employees | 2,656 | 2,955 | 1,694 | |||||||||
| Other current assets | 4,771 | 1,334 | 520 | |||||||||
| Total current assets | 5,510,018 | 6,520,539 | 6,691,221 | |||||||||
| Restricted cash | 140,392 | - | - | |||||||||
| Real estate properties held for lease, net | 428,737 | 297,565 | 302,764 | |||||||||
| Property and equipment, net | 43,394 | 35,725 | 38,114 | |||||||||
| Long-term investment | 578,733 | 552,312 | 564,340 | |||||||||
| Deferred tax assets | 205,633 | 206,511 | 230,453 | |||||||||
| Deposits for land use rights | 21,208 | 21,819 | 21,855 | |||||||||
| Amounts due from related parties | 24,587 | 24,632 | 26,122 | |||||||||
| Contract assets | 21,118 | 20,316 | 21,779 | |||||||||
| Operating lease right-of-use assets | 11,252 | 12,920 | - | |||||||||
| Other assets | 121,355 | 131,910 | 137,063 | |||||||||
| TOTAL ASSETS | 7,106,427 | 7,824,249 | 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)
| September 30, | June 30, | December 31, | ||||||||||
| 2019 | 2019 | 2018 | ||||||||||
| (unaudited) | (unaudited) | (audited) | ||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Accounts payable and notes payable | 782,573 | 833,073 | 790,631 | |||||||||
| Short-term bank loans and other debt | 28,383 | 35,901 | 43,711 | |||||||||
| Customer deposits | 1,367,391 | 1,573,859 | 1,921,851 | |||||||||
| Income tax payable | 165,489 | 165,737 | 213,273 | |||||||||
| Other payables and accrued liabilities | 297,603 | 340,145 | 341,108 | |||||||||
| Payroll and welfare payable | 18,717 | 16,529 | 33,752 | |||||||||
| Current portion of long-term bank loans and other debt | 981,182 | 1,207,191 | 1,647,918 | |||||||||
| Current maturities of finance lease | 6,322 | 6,504 | 6,562 | |||||||||
| Current maturities of operating lease | 5,556 | 5,816 | - | |||||||||
| Mandatorily redeemable non-controlling interests | 7,852 | 6,905 | 22,559 | |||||||||
| Amounts due to related parties | 31,088 | 32,224 | 48,502 | |||||||||
| Total current liabilities | 3,692,156 | 4,223,884 | 5,069,867 | |||||||||
| Non-current liabilities | ||||||||||||
| Long-term bank loans | 801,733 | 732,874 | 720,039 | |||||||||
| Other long-term debt | 1,400,396 | 1,619,007 | 1,040,455 | |||||||||
| Deferred tax liabilities | 403,125 | 393,541 | 370,509 | |||||||||
| Unrecognized tax benefits | 59,820 | 58,922 | 45,939 | |||||||||
| Finance lease, net of current maturities | 5,294 | 6,996 | 10,015 | |||||||||
| Operating lease, net of current maturities | 5,511 | 6,649 | - | |||||||||
| Amounts due to related parties | 28,764 | 28,879 | 31,242 | |||||||||
| TOTAL LIABILITIES | 6,396,799 | 7,070,752 | 7,288,066 | |||||||||
| Shareholders’ equity | ||||||||||||
| Common shares | 16 | 16 | 16 | |||||||||
| Treasury shares | (108,582 | ) | (104,233 | ) | (87,639 | ) | ||||||
| Additional paid-in capital | 531,549 | 533,366 | 532,117 | |||||||||
| Statutory reserves | 166,501 | 166,501 | 166,496 | |||||||||
| Retained earnings | 115,593 | 117,904 | 99,502 | |||||||||
| Accumulated other comprehensive loss | (66,261 | ) | (32,957 | ) | (30,122 | ) | ||||||
| Total Xinyuan Real Estate Co., Ltd. shareholders’ equity | 638,816 | 680,597 | 680,370 | |||||||||
| Non-controlling interest | 70,812 | 72,900 | 65,275 | |||||||||
| Total equity | 709,628 | 753,497 | 745,645 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 7,106,427 | 7,824,249 | 8,033,711 | |||||||||
| 12 |
Exhibit 99.2
Xinyuan Real Estate Co., Ltd. Announces Third Quarterly Dividend for 2019
BEIJING, December 6, 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 third quarter of 2019 of US$0.05 per common share, or US$0.10 per American Depositary Share, which will be payable on January 16, 2020, to shareholders of record as of December 18, 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