Xinyuan Real Estate Co., Ltd. Announces First Quarter 2018 Financial Results
Xinyuan Real Estate Co., Ltd. Announces First Quarter 2018 Financial Results
BEIJING, May 30, 2018 /PRNewswire/ -- 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 first quarter ended March 31, 2018.
First Quarter 2018 Highlights
-- Under ASC 606, the Company expects to recognize revenue for all
contracts executed starting from January 1, 2018, on an "over time"
basis using costs incurred, an input measure.
-- First quarter results reflect the adoption of ASC 606 and may not be
directly comparable to prior periods.
-- The adoption of ASC 606 reduced first quarter reported revenues and net
income by US$341.4 million and US$32.8 million, respectively.
-- Contract sales increased 24.7% to US$380.7 million from US$305.4 million
in the first quarter of 2017 and decreased 53.8% from US$823.3 million
in the fourth quarter of 2017.
-- Total revenue decreased 38.0% to US$174.1 million from US$280.7 million
in the first quarter of 2017 and decreased 76.0% from US$725.7 million
in the fourth quarter of 2017.
-- Gross profit decreased 38.2% to US$38.7 million, or 22.2% of total
revenue, from US$62.6 million, or 22.3% of total revenue, in the first
quarter of 2017 and decreased 78.5% from US$180.3 million, or 24.8% of
total revenue, in the fourth quarter of 2017.
-- Selling, General and Administrative ("SG&A") expenses as a percentage of
total revenue increased to 22.9% from 12.6% in the first quarter of 2017
and increased from 10.8% in the fourth quarter of 2017.
-- Net loss was US$12.7 million compared to net income of US$7.4 million in
the first quarter of 2017 and net income of US$35.4 million in the
fourth quarter of 2017.
-- Diluted net loss per American Depositary Share ("ADS") attributable to
shareholders were US$0.16 compared to diluted net earnings per American
Depositary Share("ADS") US$0.11 in the first quarter of 2017 and US$0.50
in the fourth quarter of 2017.
Mr. Yong Zhang, Xinyuan's Chairman, stated: "Despite the fact that the overall domestic real estate market is affected by the continuous government restrictions on purchases and prices, our contract sales in the first quarter of 2018 have increased 25% from the first quarter of last year.
"This quarter's financial report reflects the normal seasonal adjustment of the real estate industry and the impact of the new changes in accounting standards.
In early 2018, Xinyuan adopted a strategy to become an international technology-driven property ecosystem, under which Xinyuan will place emphasis not only on the development of its traditional real estate business, but also on its five sub-businesses: industrial real estate; commercial property management; traditional property management; property construction management, and real estate technology. This combination of Xinyuan's core real estate business with its five sub-businesses will form an ecosystem that functions as an integrated whole.
With the upgrade of our strategy, we expect the Group's sales and net profits will grow better than last year, and we maintain a stable dividend policy this quarter. The management is optimistic about the financial outlook for the entire year of 2018, and will further enhance operational efficiency, optimize the capital structure, and build a first-class global real estate development operations and asset management group."
First Quarter 2018 Financial Results
Contract Sales
Contract sales in China totaled US$375.5 million in the first quarter compared to US$240.8 million in the first quarter of 2017 and US$817.1 million in the fourth quarter of 2017.
The Company's GFA sales in China were 149,800 square meters in the first quarter of 2018 compared to 140,300 square meters in the first quarter of 2017 and 443,600 square meters in the fourth quarter of 2017.
The average selling price ("ASP") per square meter sold in China was RMB15,932 (US$2,506) in the first quarter of 2018 compared to RMB11,820 (US$1,717) in the first quarter of 2017 and RMB12,118 (US$1,794) in the fourth quarter of 2017.
Contract sales in the United States totaled US$5.2 million in the first quarter of 2018.
The Company commenced pre-sales of one new project in the first quarter of 2018, Tianjin Spring Royal Palace II, which contributed 1.8% and 1.5% of total GFA sales and total contract sales, respectively.
Breakdown of GFA Sales and ASPs by Project in China
Project Q1 2017 Q4 2017 Q1 2018
------- ------- ------- -------
GFA ASP GFA ASP GFA ASP
--- --- --- --- --- ---
(m2 '000s) (RMB) (m2 '000s) (RMB) (m2 '000s) (RMB)
--------- ---- --------- ---- --------- ----
Xingyang Splendid II 8.6 6,710 1.6 11,650 - -
-------------------- --- ----- --- ------ --- ---
Kunshan Royal Palace 2.3 21,222 1.3 24,232 -0.2 22,314
-------------------- --- ------ --- ------ ---- ------
Jinan Royal Palace 22.4 9,280 35.5 12,404 22.4 12,626
------------------ ---- ----- ---- ------ ---- ------
Xuzhou Colorful City 1.7 15,131 31.4 11,246 3.6 10,265
-------------------- --- ------ ---- ------ --- ------
Chengdu Thriving Family 4.7 11,277 15.8 10,724 4.5 17,183
----------------------- --- ------ ---- ------ --- ------
Changsha Xinyuan Splendid 9.7 9,050 4.2 18,379 2.6 15,130
------------------------- --- ----- --- ------ --- ------
Sanya Yazhou Bay No.1 26.3 15,432 2.7 27,497 30.9 23,197
--------------------- ---- ------ --- ------ ---- ------
Xi'an Metropolitan 3.1 8,889 21.2 9,719 1.5 9,594
------------------ --- ----- ---- ----- --- -----
Zhengzhou Xindo Park 13.2 6,342 11.3 11,110 0.1 10,000
-------------------- ---- ----- ---- ------ --- ------
Jinan Xin Central 6.8 11,777 16.9 11,477 12.2 10,527
----------------- --- ------ ---- ------ ---- ------
Henan Xin Central I 0.5 11,568 9.5 12,890 0.3 18,486
------------------- --- ------ --- ------ --- ------
Zhengzhou Fancy City I 0.8 21,739 2.0 14,004 0.2 19,949
---------------------- --- ------ --- ------ --- ------
Zhengzhou Fancy City II (South) 10.1 12,394 4.4 15,899 1.2 13,031
------------------------------ ---- ------ --- ------ --- ------
Tianjin Spring Royal Palace I -0.1 6,844 2.5 12,590 1.1 14,631
(Tianjin Spring Royal Palace)
----------------------------
Kunshan Xindo Park 4.4 18,244 12.7 22,311 2.3 23,009
------------------ --- ------ ---- ------ --- ------
Zhengzhou International New City I 0.9 10,834 33.9 4,401 2.4 13,322
---------------------------------- --- ------ ---- ----- --- ------
Henan Xin Central II 15.0 10,955 10.4 11,858 7.7 11,768
-------------------- ---- ------ ---- ------ --- ------
Xingyang Splendid III - - 18.9 7,237 16.2 7,381
--------------------- --- --- ---- ----- ---- -----
Changsha Mulian Royal Palace - - 21.6 12,899 2.0 16,177
---------------------------- --- --- ---- ------ --- ------
Zhengzhou International New City - - 76.7 13,711 11.8 13,739
II
---
Zhengzhou International New City III - - 73.6 14,058 20.4 13,802
------------------------------------ --- --- ---- ------ ---- ------
Zhengzhou Fancy City II (North) - - 31.2 9,499 2.3 9,813
------------------------------ --- --- ---- ----- --- -----
Tianjin Spring Royal Palace II - - - - 2.7 13,412
(Tianjin Spring Royal Palace)
----------------------------
Others 9.9 - 4.3 - 1.6 -
------ --- --- --- --- --- ---
Total 140.3 11,820 443.6 12,118 149.8 15,932
----- ----- ------ ----- ------ ----- ------
Revenue
In the first quarter of 2018, the Company's total revenue decreased 38.0% to US$174.1 million from US$280.7 million in the first quarter of 2017 and decreased 76.0% from US$725.7 million in the fourth quarter of 2017. The revenue decrease was mainly due to the adoption of ASC606.
Gross Profit
Gross profit for the first quarter of 2018 was US$38.7 million, or 22.2% of revenue, compared to a gross profit of US$62.6 million, or 22.3% of revenue, in the first quarter of 2017 and a gross profit of US$180.3 million, or 24.8% of revenue, in the fourth quarter of 2017.
Selling, General and Administrative Expenses
SG&A expenses were US$39.8 million for the first quarter of 2018 compared to US$35.5 million for the first quarter of 2017 and US$78.2 million for the fourth quarter of 2017. As a percentage of total revenue, SG&A expenses were 22.9% compared to 12.6% in the first quarter of 2017 and 10.8% in the fourth quarter of 2017. The increase was due to costs associated with company expansion and the decrease of revenue.
Net Income
The Company experienced a net loss due to the decrease of revenue, increase of SG&A expenses, and increase of interest expenses due to an increase in debt during the quarter. Net loss for the first quarter of 2018 was US$12.7 million compared to net income of US$7.4 million for the first quarter of 2017 and net income of US$35.4 million for the fourth quarter of 2017. Net margin decreased from 2.6% in the first quarter of 2017 and 4.9% in the fourth quarter of 2017 to negative 7.3% for the first quarter of 2018. Diluted net loss was US$0.16 per ADS in the first quarter of 2018 compared to diluted net earnings of US$0.11 per ADS in the first quarter of 2017 and diluted net earnings of US$0.50 per ADS in the fourth quarter of 2017.
Balance Sheet
As of March 31, 2018, the Company's cash and cash equivalents (including restricted cash) decreased to US$1,191.8 million from US$1,461.2 million as of December 31, 2017. Total debt outstanding was US$3,814.2 million, which reflected an increase of US$502.4 million compared to US$3,311.8 million at the end of the fourth quarter of 2017. The balance of the Company's real estate properties under development at the end of the first quarter of 2018 was US$3,457.1 million compared to US$1,996.0 million at the end of the fourth quarter of 2017.
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 XIN 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
------------- ------ ----- ------ ------ ------
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 first quarter of 2018.
Project GFA
------- ---
(m(2) '000s)
-----------
Total
Active
Project Sold to date Unsold to date
------- ------------ --------------
Xingyang Splendid II 137.3 81.5 55.8
-------------------- ----- ---- ----
Kunshan Royal Palace 280.6 278.8 1.8
-------------------- ----- ----- ---
Jinan Royal Palace 449.5 372.4 77.1
------------------ ----- ----- ----
Xuzhou Colorful City 130.1 118.8 11.3
-------------------- ----- ----- ----
Chengdu Thriving Family 203.4 195.7 7.7
----------------------- ----- ----- ---
Changsha Xinyuan Splendid 251.6 241.4 10.2
------------------------- ----- ----- ----
Sanya Yazhou Bay No.1 117.6 89.4 28.2
--------------------- ----- ---- ----
Xi'an Metropolitan 290.6 261.0 29.6
------------------ ----- ----- ----
Zhengzhou Xindo Park 144.4 127.5 16.9
-------------------- ----- ----- ----
Jinan Xin Central 194.4 169.2 25.2
----------------- ----- ----- ----
Henan Xin Central I 262.2 251.1 11.1
------------------- ----- ----- ----
Zhengzhou Fancy City I 166.7 158.6 8.1
---------------------- ----- ----- ---
Zhengzhou Fancy City II (South) 84.1 80.7 3.4
------------------------------ ---- ---- ---
Tianjin Spring Royal Palace I (Tianjin Spring Royal Palace) 139.2 130.9 8.3
---------------------------------------------------------- ----- ----- ---
Kunshan Xindo Park 89.0 76.1 12.9
------------------ ---- ---- ----
Zhengzhou International New City I 360.5 330.0 30.5
---------------------------------- ----- ----- ----
Henan Xin Central II 109.7 97.4 12.3
-------------------- ----- ---- ----
Xingyang Splendid III 121.1 98.8 22.3
--------------------- ----- ---- ----
Changsha Mulian Royal Palace 91.2 56.5 34.7
---------------------------- ---- ---- ----
Zhengzhou International New City II 176.0 157.4 18.6
----------------------------------- ----- ----- ----
Zhengzhou International New City III 222.2 94.2 128
------------------------------------ ----- ---- ---
Zhengzhou Fancy City II (North) 108.5 41.9 66.6
------------------------------ ----- ---- ----
Tianjin Spring Royal Palace II (Tianjin Spring Royal Palace) 140.6 2.7 137.9
----------------------------------------------------------- ----- --- -----
Others 80.9 - 80.9
------ ---- --- ----
Total active projects 4,351.4 3,512.0 839.4
--------------------- ------- ------- -----
As of May 20, 2018, the Company's total saleable GFA was approximately 5,899,100 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 Pre-sales
(m(2) '000s) Scheduled
----------- ---------
Tongzhou Xinyuan Royal Palace
(Beijing Liyuan project) 102.3 To be determined
----- ----------------
Changsha Furong Thriving
Family 72.3 2018Q3
---- ------
Xinyuan Chang'an Royal Palace
(Xi'an Aerospace City
Project) 226.0 2018Q4
----- ------
Xinyuan Golden Water View
City (Zhengzhou Heizhuzhuang
Project) 340.0 2018Q4
----- ------
Kunshan Xinyu Jiayuan
(Kunshan Zhongyu Project) 109.3 2018Q3
----- ------
Zhengzhou International New
City IV 864.6 2018Q2
----- ------
Zhengzhou International New
City V(newly added) 871.0 To be determined
----- ----------------
Zhuhai Xin World (Zhuhai
Prince Project) 70.0 To be determined
---- ----------------
Lingshan Bay Dragon Seal
(Qingdao New Project) 380.0 To be determined
----- ----------------
Zhengzhou Fancy City III 83.0 To be determined
---- ----------------
Zhengzhou Hangmei Project I 230.8 2018Q2
----- ------
Zhengzhou Hangmei Project
II(newly added) 204.7 To be determined
----- ----------------
Zhengzhou Zhongmou Project 480.0 To be determined
----- ----------------
Suzhou Yinhewan Project 89.7 To be determined
---- ----------------
Suzhou Wujiang New City 63.0 To be determined
---- ----------------
Chengdu Xinyuan City (Chengdu
Wucaicheng Project) 873.0 To be determined
----- ----------------
Total projects under planning 5,059.7
-------
Total active projects 839.4
-----
Total of all Xinyuan unsold
projects in China 5,899.1
-------
Real Estate Project Update in the United States
As of March 31, 2018, a total of 174 units out of 216 total units were sold and closed at the Company's Oosten project in Brooklyn, New York City, with total revenue from this project reaching US$255.7 million. During the first quarter of 2018, two units were sold, and revenues were US$5.2 million.
Foundation work was completed in the first quarter of 2018 for the Company's Hudson Garden project in Manhattan, New York City. After optimizing the internal layout of the building, the Company now expects 92 units to be available for sale, an increase from the original 82.
The Company continues to execute on the planning, governmental approvals, and pre-development activities of its ground-up development project in Flushing, New York City. The Landmark Protection Committee has approved the Company's landmark protection plan and awarded the Company a Certificate of Appropriateness. The Company has begun transferring and protecting crucial parts of the landmark RKO theater as scheduled.
Real Estate Project Update in the United Kingdom
During the first quarter of 2018, construction continued to progress at the Madison Project in London. All below-ground work has been completed, including the formation of the extensive basement and all piling work. The structural core of the building has been constructed up to the 12th floor, out of a total 53 floors. Central mechanical and electrical installations also began during the quarter, and cladding work commenced shortly after the period end. Construction remains on schedule for completion in 2020.
Of the 423 residential units in the Madison Project, all of the 104 Affordable Housing apartments have been pre-sold to a regulated affordable housing provider. At the end of the first quarter 2018, pre-sale contracts had been exchanged on 128 of the 319 market sale units, representing GBP 89.6 million of gross development value, or 40% of available market sale units. Enquiry levels remained robust during the period, tempered by a competitive market environment and a backdrop of ongoing political uncertainty.
Update on Construction Management Service Business
Xinyuan started its construction management service business in the third quarter of 2017 with its first project in Guangzhou, and this business developed well in the first quarter of 2018. Under this asset-light business model, Xinyuan charges a service fee for providing the construction management service. Xinyuan may also charge an interest spread if it provides financing support by means including, without limitation to, establishing limited partnerships with financial institutions. Below is a summary of the Company's active construction management service projects:
Project GFA
(m(2), 000s)
-----------
Guangzhou Project 55.0
----
Zhengzhou Derun Southern District
Project 1,029.0
-------
Zhengzhou Qinglongshan Project 357.0
-----
Shandong Heze Project 233.0
-----
Zhengzhou Derun Northern District
Project 181.0
-----
Qiqihar Project 797.0
-----
Total of all Xinyuan construction
management service projects 2,652.0
-------
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 second quarter of 2018, the Company expects contract sales to be approximately US$530 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.
Conference Call Information
The Company will hold a conference call at 8:00 am ET on May 30, 2018 to discuss first quarter 2018 results. Listeners may access the call by dialing:
US Toll Free: 1-800-347-6311
International: 1-323-794-2094
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 June 5, 2018 by dialing:
US: 1-844-512-2921
International: 1-412-317-6671
Access code: 5602971
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, 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 City. 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) 8588-9314
Email: irteam@xyre.com
ICR, LLC
Investors:
In U.S.: +1-646-308-1472
In China: +86 (10) 6583-7511
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,
2018 2017 2017
---- ---- ----
(unaudited) (unaudited) (unaudited)
Total revenue 174,097 725,656 280,714
Total costs of revenue (135,394) (545,358) (218,147)
-------- -------- --------
Gross profit 38,703 180,298 62,567
Selling and
distribution expenses (12,174) (28,274) (10,488)
General and
administrative
expenses (27,592) (49,920) (25,017)
------- ------- -------
Operating (loss)/income (1,063) 102,104 27,062
Interest income 6,350 4,431 2,599
Interest expense (29,785) (25,215) (9,325)
Net realized gain on
short-term
investments 1,237 4,012 588
Unrealized gain/(loss)
on short-term
investments (242) (2,116) 1,254
Other income 207 2,170 159
Loss on extinguishment
of debt - - -
Exchange gains/(loss) 11,639 1,043 (51)
Share of loss of equity
investees (921) (816) (243)
---- ---- ----
Loss/(income) from
operations before
income taxes (12,578) 85,613 22,043
Income taxes (142) (50,226) (14,625)
---- ------- -------
Net (loss)/income (12,720) 35,387 7,418
======= ====== =====
Net loss/(income)
attributable to non-
controlling interest 2,315 (2,375) 42
Net (loss)/income
attributable to
Xinyuan Real Estate
Co., Ltd. (10,405) 33,012 7,460
shareholders
(Loss)/earnings per
ADS:
Basic (0.16) 0.51 0.12
Diluted (0.16) 0.50 0.11
ADS used in
computation:
Basic 64,821 64,754 63,995
Diluted 65,805 65,927 64,944
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,
2018 2017 2017
---- ---- ----
(unaudited) (audited) (unaudited)
ASSETS
Current assets
Cash and cash
equivalents 813,736 894,551 916,029
Restricted cash 378,077 566,676 329,909
Short-term
investments 123,478 57,740 41,113
Accounts
receivable 10,912 100,553 26,884
Other receivables 49,422 73,194 31,804
Deposits for land
use rights 97,669 103,716 100,804
Other deposits
and prepayments 674,320 272,022 276,914
Advances to
suppliers 45,524 36,731 30,433
Real estate
properties
development
completed 813,542 840,393 429,254
Real estate
properties under
development 3,457,139 1,996,001 1,848,471
Amounts due from
related parties 187,644 125,662 20,284
Amounts due from
employees 5,187 2,174 2,277
Other current
assets 454 799 140
--- --- ---
Total current
assets 6,657,104 5,070,212 4,054,316
--------- --------- ---------
Real estate
properties held
for lease, net 287,457 277,933 163,541
Property and
equipment, net 32,707 32,386 33,610
Long-term
investment 982,714 829,773 16,479
Deferred tax
assets 153,558 82,006 49,701
Deposits for land
use rights 23,854 22,956 28,988
Amounts due from
related parties 30,871 24,666 -
Other assets 46,809 44,502 24,740
------ ------ ------
TOTAL ASSETS 8,215,074 6,384,434 4,371,375
========= ========= =========
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,
2018 2017 2017
---- ---- ----
(unaudited) (unaudited) (audited)
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and notes payable 462,161 690,839 423,413
Short-term bank loans and other debt 264,130 247,758 130,448
Customer deposits 2,429,980 438,342 168,829
Income tax payable 159,391 169,839 106,396
Other payables and accrued liabilities 279,251 300,120 208,466
Payroll and welfare payable 8,973 31,445 4,626
Current portion of long-term bank
loans and other debt 1,987,650 1,648,233 574,802
Current maturities of capital lease
obligations 4,647 4,472 3,945
Mandatorily redeemable non-
controlling interests 16,522 15,593 -
Amounts due to related parties 140,993 128,178 67,949
------- ------- ------
Total current liabilities 5,753,698 3,674,819 1,688,874
--------- --------- ---------
Non-current liabilities
Long-term bank loans 100,523 11,019 350,887
Other long term debt 1,461,869 1,404,814 1,270,978
Deferred tax liabilities 120,320 164,204 105,086
Unrecognized tax benefits 31,231 31,231 20,492
Capital lease obligations, net of
current maturities 10,701 11,415 14,876
Amounts due to related parties 31,831 29,919 -
------ ------ ---
TOTAL LIABILITIES 7,510,173 5,327,421 3,451,193
--------- --------- ---------
Shareholders' equity
Common shares 16 16 16
Treasury shares (67,792) (67,792) (60,915)
Additional paid-in capital 544,911 543,338 539,763
Statutory reserves 105,848 105,660 95,965
Retained earnings 81,185 382,124 354,905
Accumulated other comprehensive loss/
(income) 51,382 29,226 (30,652)
Total Xinyuan Real Estate Co., Ltd.
shareholders' equity 715,550 992,572 899,082
------- ------- -------
Non-controlling interest (10,649) 64,441 21,100
Total equity 704,901 1,057,013 920,182
------- --------- -------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 8,215,074 6,384,434 4,371,375
========= ========= =========
Note: The adoption of ASC 606 reduced first quarter total equity 33.31% to US$704.90 million from US$1,057.01 million in the fourth quarter of 2017.
View original content:http://www.prnewswire.com/news-releases/xinyuan-real-estate-co-ltd-announces-first-quarter-2018-financial-results-300656349.html
SOURCE Xinyuan Real Estate Co., Ltd.
