omniture

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

2019-05-23 18:00 9543

BEIJING, May 23, 2019 /PRNewswire/ -- 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 first quarter ended March 31, 2019.

First Quarter 2019 Highlights

  • Contract sales increased 26.0% to US$479.7 million from US$380.7 million in the first quarter of 2018 and decreased 33.7% from US$724.0 million in the fourth quarter of 2018.
  • Total revenue increased 169.3% to US$468.9 million from US$174.1 million in the first quarter of 2018 and decreased 57.1% from US$1,092.2 million in the fourth quarter of 2018.
  • Gross profit increased 238.5% to US$131.0 million, or 28.0% of total revenue, from US$38.7 million, or 22.2% of total revenue, in the first quarter of 2018 and decreased 58.8% from US$318.2 million, or 29.1% of total revenue, in the fourth quarter of 2018.
  • Selling, General and Administrative ("SG&A") expenses as a percentage of total revenue decreased to 12.0% from 22.8% in the first quarter of 2018 and increased from 9.7% in the fourth quarter of 2018.
  • Net income was US$18.2 million compared to net loss of US$12.7 million in the first quarter of 2018 and net income of US$104.1 million in the fourth quarter of 2018.
  • Diluted net earnings per American Depositary Share ("ADS") attributable to shareholders were US$0.33 compared to diluted net loss of US$0.16 per ADS in the first quarter of 2018 and diluted net earnings of US$1.13 per ADS in the fourth quarter of 2018.

Mr. Yong Zhang, Xinyuan's Chairman, stated, "We are pleased that Xinyuan has maintained strong growth despite the downward pressure on sales across the industry. Our contract sales in the first quarter of 2019 increased 26.0% from the first quarter of last year. In addition, we commenced pre-sales on one new project in China."

"The macro economic environment and restrictive government policies still pose certain challenges for our industry. However, Xinyuan's operating strategy and strong execution capabilities continue to drive our steady growth. We will remain focused on selecting quality tier-one and tier-two city projects and will supplement our core business with value-added services in a thoughtful way to solidify our leading market position. We maintain our commitment to controlling our financial leverage and maximizing Xinyuan's financial health. We are optimistic in the outlook for our industry and long-term growth. We are also pleased to offer another quarterly dividend payment to our shareholders," concluded Mr. Zhang.

First Quarter 2019 Financial Results

Contract Sales

Contract sales in China totaled US$478.9 million in the first quarter compared to US$375.5 million in the first quarter of 2018 and US$724.0 million in the fourth quarter of 2018.

The Company's GFA sales in China were 211,400 square meters in the first quarter of 2019 compared to 149,800 square meters in the first quarter of 2018 and 355,000 square meters in the fourth quarter of 2018.

The average selling price ("ASP") per square meter sold in China was RMB15,269 (US$2,264) in the first quarter of 2019 compared to RMB15,932 (US$2,506) in the first quarter of 2018 and RMB13,483 (US$2,039) in the fourth quarter of 2018. 

The Company commenced pre-sales of one new project in the first quarter of 2019, Zhengzhou International New City IV B10, which contributed 3.7% and 3.4% of total GFA sales and total contract sales, respectively.

Breakdown of GFA Sales and ASPs by Project in China

Project

Q1 2018

Q4 2018

Q1 2019

GFA

ASP

GFA

ASP

GFA

ASP

(m2, 000s)

(RMB)

(m2, 000s)

(RMB)

(m2, 000s)

(RMB)

Xingyang Splendid II

-

-

0.7

10,354

10.2

7,478

Jinan Royal Palace

22.4

12,626

1.4

9,548

1.6

15,661

Xuzhou Colorful City

3.6

10,265

1.9

29,363

-

-

Chengdu Thriving Family

4.5

17,183

-

-

(0.1)

7,729

Changsha Xinyuan Splendid

2.6

15,130

3.7

12,796

-

-

Sanya Yazhou Bay No.1

30.9

23,197

0.2

4,995

0.4

25,615

Xi'an Metropolitan

1.5

9,594

1.7

10,592

0.6

11,253

Zhengzhou Xindo Park

0.1

10,000

0.1

8,651

-

-

Jinan Xin Central

12.2

10,527

3.6

16,789

0.1

13,170

Henan Xin Central I

0.3

18,486

-

-

0.1

14,887

Zhengzhou Fancy City I

0.2

19,949

0.2

16,081

(1.4)

15,073

Zhengzhou Fancy City II (South)

1.2

13,031

-

-

(0.1)

12,660

Tianjin Spring Royal Palace I

1.1

14,631

0.3

-

-

-

Zhengzhou International New City
I

2.4

13,322

0.2

25,544

-

-

Henan Xin Central II

7.7

11,768

-

-

-

-

Xingyang Splendid III

16.2

7,381

1.1

7,779

0.4

7,046

Zhengzhou International New City
II

11.8

13,739

0.6

-

-

-

Zhengzhou Fancy City II (North)

2.3

9,813

4.9

12,569

3.5

9,838

Tianjin Spring Royal Palace II

2.7

13,412

15.3

13,583

8.1

12,670

Zhengzhou International New City
III D

-

-

-

9,987

(0.1)

14,461

Zhengzhou Hangmei International
Wisdom City I

-

-

15.9

7,115

2.3

7,144

Zhengzhou International New City
III B

-

-

10.4

13,561

0.8

13,262

Chengdu Xinyuan City

-

-

67.0

9,961

33.1

9,511

Kunshan Xinyu Jiayuan

-

-

10.6

25,963

5.5

24,208

Xingyang Splendid IV

-

-

6.1

7,455

1.0

7,027

Suzhou Suhe Bay *

-

-

14.4

21,536

30.0

21,680

Zhengzhou Hangmei International
Wisdom City II

-

-

14.2

7,313

0.5

7,350

Qingdao Royal Dragon Bay

-

-

20.5

21,099

15.3

20,285

Jinan Royal Spring Bay

-

-

18.2

9,160

2.7

9,201

Xinyuan Golden Water View City

-

-

32.6

19,026

19.0

18,817

Zhengzhou Fancy City III

-

-

16.8

12,850

20.5

12,637

Zhengzhou International New City
III C

-

-

28.6

11,062

17.3

12,260

Zhengzhou International New City
IV A12

-

-

9.3

14,109

24.8

14,254

Zhengzhou International New City
IV B10

-

-

-

-

7.9

13,969

Suzhou Galaxy Bay

-

-

24.3

13,868

2.4

13,790

Suzhou Gusu Shade I

-

-

0.1

36,692

0.8

36,262

Dalian International Health
Technology Town I

-

-

0.9

14,212

0.1

13,618

Others

26.1

-

29.2

-

4.1

-

Total

149.8

15,932

355.0

13,483

211.4

15,269

* 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.

Revenue

In the first quarter of 2019, the Company's total revenue increased 169.3% to US$468.9 million from US$174.1 million in the first quarter of 2018 and decreased 57.1% from US$1,092.2 million in the fourth quarter of 2018.

Gross Profit

Gross profit for the first quarter of 2019 was US$131.0 million, or 27.9% of total revenue, compared to a gross profit of US$38.7 million, or 22.2% of total revenue, in the first quarter of 2018 and a gross profit of US$318.2 million, or 29.1% of total revenue, in the fourth quarter of 2018.

Selling, General and Administrative Expenses

SG&A expenses were US$56.1 million for the first quarter of 2019 compared to US$39.8 million for the first quarter of 2018 and US$105.6 million for the fourth quarter of 2018. As a percentage of total revenue, SG&A expenses were 12.0% compared to 22.8% in the first quarter of 2018 and 9.7% in the fourth quarter of 2018.

Net Income

Net income for the first quarter of 2019 was US$18.2 million compared to net loss of US$12.7 million for the first quarter of 2018 and net income of US$104.1 million for the fourth quarter of 2018. Net margin was 3.9% compared to negative 7.3% in the first quarter of 2018 and 9.5% in the fourth quarter of 2018. Diluted net earnings per ADS were US$0.33 compared to diluted net loss of US$0.16 per ADS in the first quarter of 2018 and diluted net earnings of US$1.13 per ADS in the fourth quarter of 2018. 

Balance Sheet

As of March 31, 2019, the Company's cash and cash equivalents (including restricted cash) decreased to US$1,127.2 million from US$1,186.0 million as of December 31, 2018.

Total debt outstanding was US$3,513.8 million, which reflected an increase of US$61.7 million compared to US$3,452.1 million at the end of the fourth quarter of 2018. The balance of the Company's real estate properties under development at the end of the first quarter of 2019 was US$4,002.0 million compared to US$4,068.7 million at the end of the fourth quarter of 2018.

Real Estate Project Status in China

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

Project

GFA

(m2 '000s)

Total Active Project

Sold to date

Unsold to date

Xingyang Splendid II

136.9

93.8

43.1

Jinan Royal Palace

449.6

428.8

20.8

Xuzhou Colorful City

130.6

121.6

9.0

Chengdu Thriving Family

203.4

198.0

5.4

Changsha Xinyuan Splendid

251.7

248.9

2.8

Sanya Yazhou Bay No.1

117.6

101.2

16.4

Xi'an Metropolitan

286.0

269.6

16.4

Zhengzhou Xindo Park

134.4

132.0

2.4

Jinan Xin Central

194.4

183.3

11.1

Henan Xin Central I

262.2

252.5

9.7

Zhengzhou Fancy City I

166.7

158.9

7.8

Zhengzhou Fancy City II (South)

84.1

81.8

2.3

Tianjin Spring Royal Palace I

139.7

131.3

8.4

Zhengzhou International New City I

360.7

338.4

22.3

Henan Xin Central II

109.5

103.8

5.7

Xingyang Splendid III

121.1

116.2

4.9

Zhengzhou International New City II

176.0

163.2

12.8

Zhengzhou Fancy City II (North)

108.7

88.1

20.6

Tianjin Spring Royal Palace II

144.6

61.2

83.4

Zhengzhou International New City III D

46.1

43.6

2.5

Zhengzhou Hangmei International Wisdom
City I

64.7

53.2

11.5

Zhengzhou International New City III B

118.8

117.0

1.8

Chengdu Xinyuan City

742.7

107.2

635.5

Kunshan Xinyu Jiayuan

107.9

29.2

78.7

Xingyang Splendid IV

22.0

21.7

0.3

Suzhou Suhe Bay *

62.6

54.0

8.6

Zhengzhou Hangmei International Wisdom
City II

68.8

14.7

54.1

Qingdao Royal Dragon Bay

157.3

35.8

121.5

Jinan Royal Spring Bay

117.1

21.0

96.1

Xinyuan Golden Water View City

338.7

54.8

283.9

Zhengzhou Fancy City III

80.6

37.3

43.3

Zhengzhou International New City III C

79.9

45.9

34.0

Zhengzhou International New City IV A12

198.4

34.1

164.3

Zhengzhou International New City IV B10

92.3

7.9

84.4

Suzhou Galaxy Bay

76.5

26.7

49.8

Suzhou Gusu Shade I

12.0

0.9

11.1

Dalian International Health Technology
Town I

103.9

1.0

102.9

Others

44.5

-

44.5

Total active projects

6,112.7

3,978.6

2,134.1

* 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.

As of March 31, 2019, the Company's total saleable GFA was approximately 5,511,200 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

102.3

To be determined


Xinyuan Chang'an Royal Palace

226.0

To be determined


Zhengzhou International New City Land Bank (all land is grouped together
and will be developed gradually)

1,300.8

 To be determined


Zhuhai Xin World

70.0

To be determined


Lingshan Bay Dragon Seal

380.0

To be determined


Zhengzhou Hangmei Project Land Bank (all land is grouped together and
will be developed gradually)

192.7

 2019 Q2


Wuhan Canglong Royal Palace

185.0

To be determined


Suzhou Gusu Shade II

12.1

2019 Q2


Dalian International Health Technology Town II

44.5

2019 Q2


Huzhou Silk Town

134.9

To be determined


Xingyang Splendid New Project

228.0

2019 Q2


Foshan Xinchuang AI International Science and Technology Innovation
Valley

500.8

To be determined


Total projects under planning

3,377.1



Total active projects

2,134.1



Total of all Xinyuan unsold projects in China

5,511.2



Update on Real Estate Projects in the United States

As of March 31, 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 first quarter of 2019, revenues were US$0.8 million.

During the quarter, the Company completed pouring superstructure up to the 6th floor for the Hudson Garden project 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 were leased to the U.S. department store retailer Target with a 20-year lease. The offering plan was approved in the first quarter of 2019, and the launch of presales is expected to begin in the end of second quarter of 2019.

The Company continued to execute on the planning, governmental approvals, and pre-development activities of its ground-up project in Flushing, New York City. During the past year, the Landmark Preservation Committee approved the Company's landmark protection plan relating to a landmarked theater on site and awarded the Company a Certificate of Appropriateness. Landmark artifacts 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 first quarter of 2019, the structural core of the Madison project was completed, and the structural frame is expected to be completed in the second quarter of 2019. 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, 133 apartments have been sold.

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 8:00am ET on May 23, 2019, to discuss its first quarter 2019 results. Listeners may access the call by dialing:

US Toll Free:

1-800-458-4121

International:

1-323-794-2093

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 May 31, 2019, by dialing:

US:

1-844-512-2921

International:

1-412-317-6671

Access code:

6620456

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.

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 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

 

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


March 31,


December 31,


March 31,


2019


2018


2018


(unaudited)


(unaudited)


(unaudited)










Total revenue


468,853



1,092,162



174,097










Total costs of revenue


(337,804)



(773,943)



(135,394)

Gross profit


131,049



318,219



38,703










Selling and distribution expenses


(19,406)



(45,000)



(12,174)

General and administrative expenses


(36,644)



(60,562)



(27,592)










Operating income/(loss)


74,999



212,657



(1,063)










Interest income


4,085



9,692



6,350

Interest expense


(24,306)



(22,980)



(29,785)

Net realized gain/ (loss) on short-term investments


1,171



(7,237)



1,237

Unrealized gain/ (loss) on short-term investments


-



3,208



(242)

Other income


94



3,014



207

Net loss on debt extinguishment


(4,589)



(21,444)



-

Exchange gain


3,545



652



11,639

Share of loss of equity investees


(1,600)



(2,605)



(921)










Income/(loss) from operations before income taxes


53,399



174,957



(12,578)










Income taxes


(35,209)



(70,845)



(142)










Net income/(loss)


18,190



104,112



(12,720)

Net loss/(income) attributable to non-controlling interest


1,419



(34,009)



2,315

Net income/(loss) attributable to Xinyuan Real Estate Co.,
Ltd. shareholders


19,609



70,103



(10,405)










Earnings/(loss) per ADS:









Basic


0.33



1.15



(0.16)

Diluted


0.33



1.13



(0.16)

ADS used in computation:









Basic


58,911



60,957



64,821

Diluted


59,325



61,894



65,805

 

 

XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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



March 31,


December 31,


March 31,


2019


2018


2018


(unaudited)


(audited)


(unaudited)

ASSETS









Current assets









Cash and cash equivalents


761,190



674,142



813,736

Restricted cash


366,008



511,875



378,077

Short-term investments


-



8,442



123,478

Accounts receivable


44,473



64,130



10,912

Other receivables


171,271



166,633



49,422

Deposits for land use rights


46,038



42,254



97,669

Other deposits and prepayments


258,490



257,288



674,320

Advances to suppliers


47,909



46,983



45,524

Real estate properties development completed


623,871



632,360



813,542

Real estate properties under development


4,001,981



4,068,716



3,457,139

Amounts due from related parties


257,625



216,184



187,644

Amounts due from employees


4,315



1,694



5,187

Other current assets


602



520



454










Total current assets


6,583,773



6,691,221



6,657,104










Real estate properties held for lease, net


305,897



302,764



287,457

Property and equipment, net


37,512



38,114



32,707

Long-term investment


566,816



564,340



982,714

Deferred tax assets


241,823



230,453



153,558

Deposits for land use rights


22,276



21,855



23,854

Amounts due from related parties


27,289



26,122



30,871

Contract assets


16,292



21,779



-

Right-of-use assets


14,039



-



-

Other assets


135,710



137,063



46,809










TOTAL ASSETS


7,951,427



8,033,711



8,215,074

 

 

XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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



March 31,


December 31,


March 31,


2019


2018


2018


(unaudited)


(audited)


(unaudited)

LIABILITIES AND









SHAREHOLDERS' EQUITY









Current liabilities









Accounts payable and notes payable


704,397



790,631



462,161

Short-term bank loans and other debt


27,326



43,711



264,130

Customer deposits


1,827,630



1,921,851



2,429,980

Income tax payable


198,148



213,273



159,391

Other payables and accrued liabilities


341,919



341,108



279,251

Payroll and welfare payable


12,812



33,752



8,973

Current portion of long-term bank loans and other debt


1,823,724



1,647,918



1,987,650

Current maturities of lease obligations


12,604



6,562



4,647

Mandatorily redeemable non-controlling interests


22,892



22,559



16,522

Amounts due to related parties


41,204



48,502



140,993










Total current liabilities


5,012,656



5,069,867



5,753,698










Non-current liabilities









Long-term bank loans


790,267



720,039



100,523

Other long-term debt


872,468



1,040,455



1,461,869

Deferred tax liabilities


412,354



370,509



120,320

Unrecognized tax benefits


45,939



45,939



31,231

Lease obligations, net of current maturities


16,530



10,015



10,701

Amounts due to related parties


32,537



31,242



31,831

TOTAL LIABILITIES


7,182,751



7,288,066



7,510,173










Shareholders' equity









Common shares


16



16



16

Treasury shares


(97,934)



(87,639)



(67,792)

Additional paid-in capital


532,641



532,117



544,911

Statutory reserves


166,501



166,496



105,848

Retained earnings


112,660



99,502



81,185

Accumulated other comprehensive (loss)/ income


(10,409)



(30,122)



51,382


Total Xinyuan Real Estate Co., Ltd. shareholders' equity


703,475



680,370



715,550

Non-controlling interest


65,201



65,275



(10,649)

Total equity


768,676



745,645



704,901


TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


7,951,427



8,033,711



8,215,074

 

Cision View original content:http://www.prnewswire.com/news-releases/xinyuan-real-estate-co-ltd-announces-first-quarter-2019-financial-results-300855758.html

Source: Xinyuan Real Estate Co., Ltd.
Related Stocks:
NYSE:XIN
Related Links: