Xinyuan Real Estate Co., Ltd. Announces Fourth Quarter 2018 Financial Results
BEIJING, Feb. 15, 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 also in other countries, today announced its unaudited financial results for the fourth quarter ended December 31, 2018.
Fourth Quarter 2018 Highlights
-- On January 1, 2018, the Company adopted ASC 606 to recognize revenue for
contracts executed after the adoption on an "over time" basis using
costs incurred, an input measure. As such, fourth quarter results
reflect the adoption of ASC 606 and may not be directly comparable to
prior periods.
-- Contract sales decreased 12.1% to US$724.0 million from US$823.3 million
in the fourth quarter of 2017 and increased 26.7% from US$571.3 million
in the third quarter of 2018.
-- Total revenue increased 49.1% to US$1,081.8 million from US$725.7
million in the fourth quarter of 2017 and increased 81.7% from US$595.5
million in the third quarter of 2018.
-- Gross profit increased 72.0% to US$310.2 million, or 28.7% of total
revenue, from US$180.3 million, or 24.8% of total revenue, in the fourth
quarter of 2017 and increased 107.9% from US$149.2 million, or 25.1% of
total revenue, in the third quarter of 2018.
-- Selling, General and Administrative ("SG&A") expenses as a percentage of
total revenue decreased to 9.9% from 10.8% in the fourth quarter of 2017
and increase from 8.0% in the third quarter of 2018.
-- Net income increased 194.4% to US$104.2 million from US$35.4 million in
the fourth quarter of 2017, and increased 336.0% from US$23.9 million in
the third quarter of 2018.
-- Diluted net earnings per American Depositary Share ("ADS") attributable
to shareholders were US$1.15 compared to US$0.50 in the fourth quarter
of 2017 and US$0.31 in the third quarter of 2018.
Full Year 2018 Highlights
-- For the year ended December 31, 2018, contract sales decreased 8.2% to
US$2,264.5 million from US$2,465.7 million in 2017. GFA sales decreased
22.2% to 1,066,782 square meters from 1,371,621 square meters in 2017.
-- Total revenues increased 11.6% to US$2,207.2 million from US$1,976.9
million in 2017.
-- Gross profit was US$607.5 million, or 27.5% of revenue in 2018, compared
to a gross profit of US$459.6 million, or 23.2% of revenue in 2017.
-- SG&A expenses were US$241.1 million, or 10.9% of revenue in 2018,
compared to US$212.6 million, or 10.8% of revenue in 2017.
-- Net income was US$106.1 million in 2018 compared to US$80.1 million in
2017. Diluted earnings per ADS were US$1.15 in 2018 compared to US$0.97
per ADS in 2017.
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. The total amount of contracts signed in 2018 was US$3,223.6 million, representing 42.4% growth compared to US$2,263.0 million achieved in 2017. Correspondingly, our full year total revenue increased by double digits. Due to the successful selection and execution of our projects, gross profit margin for the year reached 27.5%, resulting in bottom line growth of more than 30%, well above our forecast of 15-20%. Our contract sales in 2018 decreased year over year, mainly because we only included contracts qualified for revenue recognition. As those excluded contracts meet the revenue recognition requirement, our contract sales will recover in the coming quarters."
"During the fourth quarter, we commenced pre-sales on ten new projects in China that reflected our strategy in tier-two cities, which made significant contributions to our total GFA sales and total contract sales," continued Mr. Zhang, "We also invested in our future growth by expanding our land bank with the acquisitions of Huzhou Silk Town and Xingyang Splendid New Project. Our under planning stage projects in China, U.S, and Malaysia continued to proceed as planned, and our UK project made further progress in both construction and sales."
"The macro economic environment and government restriction policies still pose certain challenges for our industry. However, Xinyuan's operating strategy and strong execution capabilities are the foundations of 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 strategic 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.
Fourth Quarter 2018 Financial Results
Contract Sales
Contract sales in China totaled US$724.0 million in the fourth quarter compared to US$817.1 million in the fourth quarter of 2017 and US$571.3 million in the third quarter of 2018.
The Company's GFA sales in China were 355,609 square meters in the fourth quarter of 2018 compared to 443,600 square meters in the fourth quarter of 2017 and 277,500 square meters in the third quarter of 2018.
The average selling price ("ASP") per square meter sold in China was RMB13,461 (US$2,036) in the fourth quarter of 2018 compared to RMB12,118 (US$1,794) in the fourth quarter of 2017 and RMB13,406 (US$2,059) in the third quarter of 2018.
The Company commenced pre-sales of ten new projects in the fourth quarter of 2018, Zhengzhou Hangmei International Wisdom City II, Dalian International Health Technology Town I, Qingdao Royal Dragon Bay, Jinan Royal Spring Bay, Xinyuan Golden Water View City, Zhengzhou Fancy City III, Zhengzhou International New City III C, Zhengzhou International New City IV, Suzhou Galaxy Bay, and Suzhou Gusu Shade I. The presales contributed 46.5% and 48.9% of total GFA sales and total contract sales, respectively.
Breakdown of GFA Sales and ASPs by Project in China
Project Q4 2017 Q3 2018 Q4 2018
---
GFA ASP
GFA ASP
GFA ASP
--- ---
(m(2), 000s) (RMB) (m(2), 000s) (RMB) (m(2), 000s) (RMB)
--- ---
Xingyang Splendid II 1.6 11,650 1.2 13,900 0.7 10,354
---
Kunshan Royal Palace 1.3 24,232
---
Jinan Royal Palace 35.5 12,404 25.9 16,426 1.4 9,548
---
Xuzhou Colorful City 31.4 11,246 0.1 10,989 1.9 29,363
---
Chengdu Thriving Family 15.8 10,724 1.1 8,012
---
Changsha Xinyuan Splendid 4.2 18,379 0.2 19,771 4.2 12,796
---
Sanya Yazhou Bay No.1 2.7 27,497 (0.9) 23,515 0.2 4,995
---
Xi'an Metropolitan 21.2 9,719 1.8 10,546 1.7 10,592
---
Zhengzhou Xindo Park 11.3 11,110 4.1 8,015 0.1 8,651
---
Jinan Xin Central 16.9 11,477 1.3 12,839 3.6 16,789
---
Henan Xin Central I 9.5 12,890 0.3 18,931
---
Zhengzhou Fancy City I 2.0 14,004 0.2 17,481 0.2 16,081
---
Zhengzhou Fancy City II (South) 4.4 15,899 0.4 17,780
---
Tianjin Spring Royal Palace I 2.5 12,590 0.3
---
Kunshan Xindo Park 12.7 22,311 2.4 24,014 5.1 20,108
---
Zhengzhou International New City I 33.9 4,401 2.3 25,725 0.2 25,544
---
Henan Xin Central II 10.4 11,858 0.2 16,913
---
Xingyang Splendid III 18.9 7,237 2.7 8,018 1.1 7,779
---
Changsha Mulian Royal Palace 21.6 12,899 4.0 14,445 1.5 19,790
---
Zhengzhou International New City 76.7 13,711 3.4 13,388 0.6
II
---
Zhengzhou International New City 73.6 14,058 (0.1) 14,150 0.1 14,150
III A
---
Zhengzhou Fancy City II (North) 31.2 9,499 2.5 9,567 4.9 12,569
---
Tianjin Spring Royal Palace II 23.6 12,691 15.3 13,583
---
Zhengzhou International New City 14.0 14,264 9,987
III D
---
Zhengzhou Hangmei International 18.9 7,230 15.9 7,115
Wisdom City I
---
Zhengzhou International New City 54.5 14,135 10.4 13,561
III B
---
Changsha Furong Thriving Family 68.4 9,773 3.4 9,915
---
Chengdu Xinyuan City 7.1 9,988 67.0 9,961
---
Kunshan Xinyu Jiayuan 13.1 26,108 10.6 25,963
---
Xingyang Splendid IV 14.7 7,576 6.1 7,455
---
Suzhou Suhe Bay * 9.6 21,722 14.4 21,536
---
Zhengzhou Hangmei International 14.2 7,313
Wisdom City II
---
Qingdao Royal Dragon Bay 20.5 21,099
---
Jinan Royal Spring Bay 18.2 9,160
---
Xinyuan Golden Water View City 32.6 19,026
---
Zhengzhou Fancy City III 16.8 12,850
---
Zhengzhou International New City 28.6 11,062
III C
---
Zhengzhou International New City 9.3 14,109
IV
---
Suzhou Galaxy Bay 24.3 13,868
---
Suzhou Gusu Shade I (Suzhou New 0.1 36,692
Project)
---
Dalian International Health 0.9 14,212
Technology Town I
---
Others 4.3 0.5 19.2
---
Total 443.6 12,118 277.5 13,406 355.6 13,461
---
* 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 fourth quarter of 2018, the Company's total revenue increased 49.1% to US$1,081.8 million from US$725.7 million in the fourth quarter of 2017 and increased 81.7% from US$595.5 million in the third quarter of 2018.
Gross Profit
Gross profit for the fourth quarter of 2018 was US$310.2 million, or 28.7% of total revenue, compared to a gross profit of US$180.3 million, or 24.8% of total revenue, in the fourth quarter of 2017 and a gross profit of US US$149.2 million, or 25.1% of total revenue, in the third quarter of 2018.
Selling, General and Administrative Expenses
SG&A expenses were US$106.6 million for the fourth quarter of 2018 compared to US$78.2 million for the fourth quarter of 2017 and US$47.7 million for the third quarter of 2018. As a percentage of total revenue, SG&A expenses were 9.9% compared to 10.8% in the fourth quarter of 2017 and 8.0% in the third quarter of 2018.
Net Income
Net income for the fourth quarter of 2018 was US$104.2 million compared to US$35.4 million for the fourth quarter of 2017 and US$23.9 million for the third quarter of 2018. Net margin was 9.6% compared to 4.9% in the fourth quarter of 2017 and 4.0% in the third quarter of 2018. Diluted earnings per ADS were US$1.15 compared to US$0.50 per ADS in the fourth quarter of 2017 and US$0.31 per ADS in the third quarter of 2018.
Balance Sheet
As of December 31, 2018, the Company's cash and cash equivalents (including restricted cash) decreased to US$1,188.2 million from US$1,416.9 million as of September 30, 2018.
Total debt outstanding was US$3,452.1 million, which reflected a decrease of US$632.3 million compared to US$4,084.4 million at the end of the third quarter of 2018. The balance of the Company's real estate properties under development at the end of the fourth quarter of 2018 was US$3,804.6 million compared to US$4,469.1 million at the end of the third quarter of 2018.
Adoption of ASC606
On January 1, 2018, the Company adopted ASC 606: Revenue from Contracts with Customers ("ASC 606") issued by the Financial Accounting Standards Board. The Company adopted ASC 606 using the modified retrospective approach and applied the adoption only to contracts not completed as of the date of adoption, with no restatement of comparative periods, and a cumulative-effect adjustment to retained earnings recognized as of the date of adoption.
The following tables show the actual annual 2017 operating results and the annual 2017 operating results if the Company had adopted ASC 606 on January 1, 2017.
2017 Financial Results Prior to ASC 606
2017 Total
2017 Q1
2017 Q2
2017 Q3
2017 Q4
USD'000
USD'000
USD'000
USD'000
USD'000
---
(unaudited) (unaudited) (unaudited) (unaudited)
Contract Sales 2,465,663 305,382 732,476 604,520 823,285
---
1. Revenue 1,976,907 280,714 488,165 482,373 725,655
---
Gross Profit 459,628 62,567 107,922 108,842 180,297
---
Gross Profit Margin 23.2% 22.3% 22.1% 22.6% 24.8%
---
SG&A 212,568 35,505 47,894 50,976 78,193
---
Interest Expense 66,153 9,325 20,195 11,418 25,215
---
2. Profit Before Income Taxes 193,228 22,042 46,678 38,895 85,613
---
Income Taxes 113,117 14,625 25,901 22,366 50,225
---
3. Net Profit 80,111 7,417 20,777 16,529 35,388
---
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 fourth quarter of 2018.
Project
GFA
---
(m(2) '000s)
---
Total Active Project
Sold to date
Unsold to date
---
Xingyang Splendid II 137.1 83.6 53.5
--- ---
Kunshan Royal Palace 280.6 278.9 1.7
--- ---
Jinan Royal Palace 449.5 427.2 22.3
--- ---
Xuzhou Colorful City 130.7 121.6 9.1
--- ---
Chengdu Thriving Family 203.4 198.1 5.3
--- ---
Changsha Xinyuan Splendid 251.6 249.5 2.1
--- ---
Sanya Yazhou Bay No.1 117.6 100.8 16.8
--- ---
Xi'an Metropolitan 286.0 269.0 17.0
--- ---
Zhengzhou Xindo Park 134.4 132.0 2.4
--- ---
Jinan Xin Central 194.4 183.3 11.1
--- ---
Henan Xin Central I 262.2 252.4 9.8
--- ---
Zhengzhou Fancy City I 166.7 160.3 6.4
--- ---
Zhengzhou Fancy City II (South) 84.1 81.9 2.2
--- ---
Tianjin Spring Royal Palace I 139.2 131.3 7.9
--- ---
Kunshan Xindo Park 89.0 87.9 1.1
--- ---
Zhengzhou International New City I 360.7 338.4 22.3
--- ---
Henan Xin Central II 109.5 103.8 5.7
--- ---
Xingyang Splendid III 121.1 115.8 5.3
--- ---
Zhengzhou International New City II 176.0 163.2 12.8
--- ---
Zhengzhou International New City III A 96.0 95.4 0.6
--- ---
Zhengzhou Fancy City II (North) 108.7 84.6 24.1
--- ---
Tianjin Spring Royal Palace II 144.6 53.1 91.5
--- ---
Zhengzhou International New City III D 46.1 43.7 2.4
--- ---
Zhengzhou Hangmei International Wisdom City I 64.7 50.9 13.8
--- ---
Zhengzhou International New City III B 118.8 116.2 2.6
--- ---
Changsha Furong Thriving Family 72.3 71.9 0.4
--- ---
Chengdu Xinyuan City 742.8 74.1 668.7
--- ---
Kunshan Xinyu Jiayuan 107.9 23.6 84.3
--- ---
Xingyang Splendid IV 22.0 20.7 1.3
--- ---
Suzhou Suhe Bay * 62.6 24.0 38.6
--- ---
Zhengzhou Hangmei International Wisdom City II 68.8 14.2 54.6
--- ---
Qingdao Royal Dragon Bay 154.9 20.5 134.4
--- ---
Jinan Royal Spring Bay 117.0 18.2 98.8
--- ---
Xinyuan Golden Water View City 338.8 35.8 303.0
--- ---
Zhengzhou Fancy City III 80.6 16.7 63.9
--- ---
Zhengzhou International New City III C 79.9 28.5 51.4
--- ---
Zhengzhou International New City IV 198.4 9.2 189.2
--- ---
Suzhou Galaxy Bay 76.5 24.3 52.2
--- ---
Suzhou Gusu Shade I (Suzhou New Project) 12.0 0.2 11.8
--- ---
Dalian International Health Technology Town I 103.9 0.9 103.0
--- ---
Others 44.7 44.7
--- ---
Total active projects 6,555.8 4,305.7 2,250.1
--- ---
* 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 December 31, 2018, the Company's total saleable GFA was approximately 5,698,700 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
Pre-sales
(m(2)
'
000s)
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 1,393.1
To be determined
and will be developed gradually)
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 192.7
To be determined
and will be developed gradually)
Zhengzhou Zhongmou Project* 480.0 N/A
Wuhan Canglong Royal Palace 185.0
To be determined
Suzhou Gusu Shade II (Suzhou New Project) 12.1
To be determined
Dalian International Health Technology Town II 44.5
To be determined
Huzhou Silk Town 134.9
To be determined
Xingyang Splendid New Project 228.0
To be determined
Total projects under planning 3,448.6
Total active projects 2,250.1
Total of all Xinyuan unsold projects in China 5,698.7
* In the fourth quarter of 2018, this project is now fully engaged in the construction management service business.
Update on Real Estate Projects in the United States
As of December 31, 2018, a total of 176 units out of 216 units were sold and closed at the Company's Oosten project in Brooklyn, New York City, with total revenue from this project reaching US$259.3 million. During 2018, revenues were US$8.8 million.
During the quarter, the Company completed the construction up to the 6th floor for Hudson Garden project in the Hell's Kitchen area of Manhattan, New York City. During the year, the design drawings were optimized, increasing the number of units from 82 to 92. Of the 38,000 SF of retail/commercial space a total of 29,000 SF were leased to the U.S. department store retailer Target with a 20-year lease. Soft launch of sales began in the fourth quarter of 2018.
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 year, the Landmark Preservation Committee approved the Company's landmark protection plan and awarded the Company a Certificate of Appropriateness. The transfer phase for landmarked artifacts is to be completed by the end of February 2019.
Real Estate Project Update in the United Kingdom
During the fourth quarter of 2018, another 8 floors were added to the structural core of the Madison project, resulting in 42 out of 53 floors built. The structure of the tower is expected to be complete in mid-2019 and 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 2019, the Company expects an increase in total contract sales of approximately 10% and an increase in consolidated net income of 15%-20% over 2018.
Conference Call Information
The Company will hold a conference call at 8:00am ET on February 15, 2019, to discuss its fourth quarter 2018 results. Listeners may access the call by dialing:
US Toll Free: 1-888-220-8451
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 February 22, 2019, by dialing:
US: 1-844-512-2921
International: 1-412-317-6671
Access code: 9013329
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, 2017. Except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statement is made.
Notes to Unaudited Financial Information
This release contains unaudited financial information which is subject to year-end audit adjustments. Adjustments to the financial statements may be identified when the audit work is completed, which could result in significant differences between our audited financial statements and this unaudited financial information.
For more information, please contact:
In China:
Xinyuan Real Estate Co., Ltd.
Mr. Charles Wang
Investor Relations Director
Tel: +86 (10) 8588-9376
Email: irteam@xyre.com
ICR, LLC
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
December 31, September 30, December 31,
2018 2018 2017
(unaudited) (unaudited) (unaudited)
Total revenue 1,081,829 595,460 725,656
Total costs of revenue (771,613) (446,284) (545,358)
Gross profit 310,216 149,176 180,298
Selling and distribution expenses (44,833) (12,282) (28,274)
General and administrative expenses (61,783) (35,414) (49,920)
Operating income 203,600 101,480 102,104
Interest income 10,357 8,084 4,431
Interest expense (20,610) (21,778) (25,215)
Net realized (loss)/ gain on short-term investments (4,959) 2,119 4,012
Unrealized gain/ (loss) on short-term investments 575 (1,121) (2,116)
Other income/ (expense) 905 (443) 2,170
Net loss on debt extinguishment (21,444)
Exchange (loss)/ gain (65) (15,451) 1,043
Share of loss of equity investees (2,169) (2,620) (816)
Income from operations before income taxes 166,190 70,270 85,613
Income taxes (61,969) (46,415) (50,226)
Net income 104,221 23,855 35,387
Net income attributable to non-controlling interest (33,140) (3,729) (2,375)
Net income attributable to Xinyuan Real Estate Co., Ltd. 71,081 20,126 33,012
shareholders
Earnings per ADS:
Basic 1.17 0.32 0.51
Diluted 1.15 0.31 0.50
ADS used in computation:
Basic 60,957 63,734 64,754
Diluted 61,894 64,472 65,927
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)
Twelve months ended
December 31, December 31,
2018 2017
(unaudited) (audited)
Total revenue 2,207,218 1,976,907
Total costs of revenue (1,599,743) (1,517,279)
Gross profit 607,475 459,628
Selling and distribution expenses (83,425) (75,724)
General and administrative expenses (157,677) (136,845)
Operating income 366,373 247,059
Interest income 31,891 16,859
Interest expense (96,876) (66,153)
Net realized (loss)/ gain on short-term investments (1,129) 7,874
Unrealized (loss)/ gain on short-term investments (1,483) 2,096
Other (expense)/ income (367) 2,326
Net loss on debt extinguishment (21,444) (15,880)
Exchange (loss)/ gain (26,395) 757
Share of loss of equity investees (8,938) (1,710)
Income from operations before income taxes 241,632 193,228
Income taxes (135,571) (113,117)
Net income 106,061 80,111
Net income attributable to non-controlling interest (32,048) (16,484)
Net income attributable to Xinyuan Real Estate Co., Ltd. shareholders 74,013 63,627
Earnings per ADS:
Basic 1.16 0.99
Diluted 1.15 0.97
ADS used in computation:
Basic 63,564 64,352
Diluted 64,590 65,803
XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All US$ amounts and number of shares data in thousands)
December 31, September 30, December 31,
2018 2018 2017
(unaudited) (unaudited) (audited)
ASSETS
Current assets
Cash and cash equivalents 772,367 1,000,886 894,551
Restricted cash 415,803 416,060 566,676
Short-term investments 8,442 243,036 57,740
Accounts receivable 54,314 77,743 100,553
Other receivables 120,100 114,829 73,194
Deposits for land use rights 42,254 43,610 103,716
Other deposits and prepayments 248,965 316,974 272,022
Advances to suppliers 49,204 56,026 36,731
Real estate properties development completed 853,342 678,029 840,393
Real estate properties under development 3,804,555 4,469,128 1,996,001
Amounts due from related parties 242,432 157,422 125,662
Amounts due from employees 1,694 4,420 2,174
Other current assets 520 910 799
Total current assets 6,613,992 7,579,073 5,070,212
Real estate properties held for lease, net 273,371 272,526 277,933
Property and equipment, net 38,114 32,241 32,386
Long-term investment 566,968 612,901 829,773
Deferred tax assets 137,561 136,828 82,006
Deposits for land use rights 21,855 21,804 22,956
Amounts due from related parties 50,904 29,538 24,666
Contract assets 17,426 18,517
Other assets 132,921 134,920 44,502
TOTAL ASSETS 7,853,112 8,838,348 6,384,434
XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All US$ amounts and number of shares data in thousands)
December 31, September 30, December 31,
2018 2018 2017
(unaudited) (unaudited) (audited)
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable 780,576 626,425 690,839
Short-term bank loans and other debt 43,711 190,932 247,758
Customer deposits 1,912,848 2,490,508 438,342
Income tax payable 220,883 110,353 169,839
Deferred tax liabilities-current 223,888
Other payables and accrued liabilities 374,259 496,956 300,120
Payroll and welfare payable 34,263 10,093 31,445
Current portion of long-term bank loans and other debt 1,647,918 2,105,469 1,648,233
Current maturities of capital lease obligations 6,135 4,629 4,472
Mandatorily redeemable non-controlling interests 22,621 14,159 15,593
Amounts due to related parties 12,489 70,044 128,178
Total current liabilities 5,279,591 6,119,568 3,674,819
Non-current liabilities
Long-term bank loans 720,039 622,849 11,019
Other long-term debt 1,040,455 1,165,132 1,404,814
Deferred tax liabilities 9,170 202,878 164,204
Unrecognized tax benefits 31,231 31,231 31,231
Capital lease obligations, net of current maturities 10,443 8,409 11,415
Amounts due to related parties 4,609 30,702 29,919
TOTAL LIABILITIES 7,095,538 8,180,769 5,327,421
Shareholders' equity
Common shares 16 16 16
Treasury shares (87,639) (78,265) (67,792)
Additional paid-in capital 525,554 543,253 543,338
Statutory reserves 162,207 105,844 105,660
Retained earnings 104,509 94,317 382,124
Accumulated other comprehensive (loss) /income (28,286) (29,068) 29,226
Total Xinyuan Real Estate Co., Ltd. shareholders' equity 676,361 636,097 992,572
Non-controlling interest 81,213 21,482 64,441
Total equity 757,574 657,579 1,057,013
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 7,853,112 8,838,348 6,384,434
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SOURCE Xinyuan Real Estate Co., Ltd.
