Xinyuan Real Estate Co., Ltd. Announces Fourth Quarter 2019 Financial Results
BEIJING, April 3, 2020 /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 the U.S., today announced its unaudited financial results for the fourth quarter ended December 31, 2019.
Full Year 2019 Highlights
-- Total revenue increased 11.9% to US$2.5 billion from US$2.2 billion in
2018.
-- For the year ended December 31, 2019, contract sales decreased 6.2% to
US$2.1 billion from US$2.3 billion in 2018. In RMB terms, contract sales
in 2019 decreased 2.2% to RMB14.6 billion yuan from RMB15.0 billion yuan
in 2018. GFA sales increased 7.1% to 1,142,149 square meters from
1,066,192 square meters in 2018.
-- Gross profit was US$560.3 million, or 22.6% of revenue in 2019, compared
to a gross profit of US$615.5 million, or 27.8% of revenue in 2018.
-- SG&A expenses were US$250.4 million, or 10.1% of revenue in 2019,
compared to US$240 million, or 10.8% of revenue in 2018.
-- Net income was US$83.0 million in 2019 compared to US$106.0 million in
2018. Diluted earnings per ADS were US$1.20 in 2019 compared to US$1.14
per ADS in 2018.
-- On October 11, 2019, the property management service entity of Xinyuan,
Xinyuan Property Management Service (Cayman) Ltd. has been listed on the
main board of Hong Kong Stock Exchange, under code 01895.HK.
Fourth Quarter 2019 Highlights
-- Total revenue was US$906.7 million in the fourth quarter of 2019
compared to US$1,092.2 million in the fourth quarter of 2018 and
US$497.6 million in the third quarter of 2019.
-- Net income was US$39.6 million in the fourth quarter of 2019 compared to
US$104.1 million in the fourth quarter of 2018 and US$5.4 million in the
third quarter of 2019.
-- Diluted net earnings per ADS attributable to shareholders were US$0.62
in the fourth quarter of 2019 compared to US$1.13 in the fourth quarter
of 2018 and US$0.07 in the third quarter of 2019.
Mr. Yong Zhang, Xinyuan's Chairman, stated, "Industry conditions remained challenging during the fourth quarter, but solid execution of our strategy enabled us to sustain an attractive level of profitability. Our growth strategy is sound. We build attractive homes for our customers by more tightly integrating real estate and technology. We believe our innovative business model and ability to execute will further differentiate us in the market and enable robust growth going forward."
Mr. Zhang continued, "On October 11, 2019, our property management service subsidiary has been listed on the main board of HKEX, which we anticipate will contribute to strengthen our core real estate business. For the year 2019, Xinyuan was again ranked in the Top 100 Chinese Real Estate Developers, an important benchmark for evaluating our operating strength and industry status. We are proud to have achieved this ranking for 15 consecutive years. Furthermore, we were also recently honored with the designation as a 'Top 5 Innovative Chinese Real Estate Developers'. That designation reflects our continual effort to improve our operations and further solidifies our position as one of the leading real estate developers in China.
"We started 2020 in a challenging environment due to the COVID-19 outbreak, which has adversely affected our first quarter sales. The most immediate impact was the closure of sales and construction sites. At the moment, China has contained the spread of the virus, and by the end of March 2020, all of our construction and sales sites have re-opened, except our Wuhan project, and we are striving to resume full operations."
Mr. Zhang concluded, "Although our business is experiencing short-term turbulence due to the virus outbreak, we are confident that consumer demand will rebound as the virus has been contained in China. We are optimistic about the long-term strength of the Chinese economy and the growth potential of China's real estate industry."
Fourth Quarter 2019 Financial Results
Contract Sales
Contract sales in China totaled US$653.6 million in the fourth quarter compared to US$724.0 million in the fourth quarter of 2018 and US$504.8 million in the third quarter of 2019.
The Company's GFA sales in China were 356,900 square meters in the fourth quarter of 2019 compared to 355,609 square meters in the fourth quarter of 2018 and 255,600 square meters in the third quarter of 2019.
The average selling price ("ASP") per square meter sold in China was RMB12,628 (US$1,831) in the fourth quarter of 2019 compared to RMB13,461 (US$2,036) in the fourth quarter of 2018 and RMB13,531 (US$1,975) in the third quarter of 2019.
The Company commenced pre-sales of one new project in the fourth quarter of 2019, Foshan Xinchuang AI International Science and Technology Innovation Valley. The presales contributed 3.0% and 3.6% of total contract sales and total GFA sales, respectively.
Breakdown of GFA Sales and ASPs by Project in China
Project Q4 2018 Q3 2019 Q4 2019
--- ---
GFA ASP
GFA ASP
GFA ASP
--- ---
(m(2), 000s) (RMB) (m(2), 000s) (RMB) (m(2), 000s) (RMB)
--- ---
Xingyang Splendid II 0.7 10,354 0.4 13,048 0.2 7,667
--- ---
Jinan Royal Palace 1.4 9,548 2.2 16,483 2.0 11,432
--- ---
Xuzhou Colorful City 1.9 29,363 0.4 12,453 -0.1 14,000
--- ---
Sanya Yazhou Bay No.1 0.2 4,995 0.4 24,890 12.8 14,411
--- ---
Xi'an Metropolitan 1.7 10,592 0.1 12,845 1.9 10,909
--- ---
Jinan Xin Central 3.6 16,789 0.4 12,926 2.9 10,382
--- ---
Henan Xin Central I 0.5 23,764
---
Zhengzhou Fancy City I 0.2 16,081 -
---
Tianjin Spring Royal Palace I 0.3 0.3 11,468 -
---
Zhengzhou International New City I 0.2 25,544 5.9 14,784 6.2 19,541
--- ---
Xingyang Splendid III 1.1 7,779 0.8 16,498 1.5 13,652
--- ---
Zhengzhou International New City II 0.6 1.9 17,817 4.4 22,965
---
Zhengzhou Fancy City II (North) 4.9 12,569 4.3 9,148 6.7 9,594
--- ---
Tianjin Spring Royal Palace II 15.3 13,583 8.1 13,403 1.4 12,615
--- ---
Zhengzhou International New City III D 9,987 0.1 14,446 0.9 23,353
---
Zhengzhou Hangmei International Wisdom 15.9 7,115 0.5 6,968 0.8 6,699
City I
--- ---
Zhengzhou International New City III B 10.4 13,561 0.1 13,874 0.1 12,947
--- ---
Changsha Furong Thriving Family 3.4 9,915 0.2 9,568 -0.1 9,730
--- ---
Chengdu Xinyuan City 67.0 9,961 6.1 7,210 80.0 10,499
--- ---
Kunshan Xinyu Jiayuan 10.6 25,963 5.6 23,878 6.4 23,443
--- ---
Xingyang Splendid IV 6.1 7,455 7.9 7,629 30.9 7,789
--- ---
Suzhou Suhe Bay * 14.4 21,536 -
---
Zhengzhou Hangmei International Wisdom 14.2 7,313 9.2 7,391 4.7 7,332
City II
--- ---
Qingdao Royal Dragon Bay 20.5 21,099 6.9 22,162 21.5 19,769
--- ---
Jinan Royal Spring Bay 18.2 9,160 5.8 8,547 16.0 8,596
--- ---
Xinyuan Golden Water View City-Zhengzhou 32.6 19,026 1.3 24,217 13.5 21,629
--- ---
Zhengzhou Fancy City III 16.8 12,850 11.5 13,221 16.5 12,183
--- ---
Zhengzhou International New City III C 28.6 11,062 4.6 13,157 3.3 10,527
--- ---
Zhengzhou International New City IV A12 9.3 14,109 85.6 14,325 24.7 16,598
--- ---
Zhengzhou International New City IV B10 12.5 9,996 15.3 10,157
---
Suzhou Galaxy Bay 24.3 13,868 10.8 14,591 0.6 19,157
--- ---
Suzhou Gusu Shade I 0.1 36,692 1.6 37,563 0.4 30,076
--- ---
Dalian International Health Technology 0.9 14,212 19.6 9,349 12.1 9,606
Town I
--- ---
Xingyang Splendid V 18.4 7,635 22.8 7,647
---
Suzhou Gusu Shade II ** 3.4 38,111 2.9 38,330
---
Zhengzhou International New City V A04 0.3 12,068 21.8 14,082
---
Huzhou Silk Town *** 18.4 16,840 3.5 15,415
---
Foshan Xinchuang AI International 12.7 10,795
Science and Technology Innovation Valley
---
Others 30.2 5.2 -
---
Total 355.6 13,461 255.6 13,531 356.9 12,628
--- ---
* The Company owns a 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 a 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 a 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.
Revenue
In the fourth quarter of 2019, the Company's total revenue decreased 17.0% to US$906.7 million from US$1,092.2 million in the fourth quarter of 2018 and increased 82.2% from US$497.6 million in the third quarter of 2019.
Gross Profit
Gross profit for the fourth quarter of 2019 was US$146.5 million, or 16.2% of total revenue, compared to gross profit of US$318.2 million, or 29.1% of total revenue, in the fourth quarter of 2018 and a gross profit of US$123.5 million, or 24.8% of total revenue, in the third quarter of 2019.
Selling, General and Administrative Expenses
SG&A expenses were US$73.8 million for the fourth quarter of 2019 compared to US$105.6 million for the fourth quarter of 2018 and US$57.6 million for the third quarter of 2019. As a percentage of total revenue, SG&A expenses were 8.1% compared to 9.7% in the fourth quarter of 2018 and 11.6% in the third quarter of 2019.
Net Income
Net income for the fourth quarter of 2019 was US$39.6 million compared to US$104.1 million for the fourth quarter of 2018 and US$5.4 million for the third quarter of 2019. Net margin was 4.4% compared to 9.5% in the fourth quarter of 2018 and 1.1% in the third quarter of 2019. Diluted net earnings per ADS were US$0.62 compared to US$1.13 per ADS in the fourth quarter of 2018 and US$0.07 per ADS in the third quarter of 2019.
Balance Sheet
As of December 31, 2019, the Company's cash and restricted cash (including bank deposit for long-term debt) increased to US$1,102.6 million from US$688.4 million as of September 30, 2019.
Total debt outstanding was US$3,215.1 million, which reflects an increase of US$3.4 million from US$3,211.7 million at the end of the third quarter of 2019.
The balance of the Company's real estate properties under development at the end of the fourth quarter of 2019 was US$3,254.4 million compared to US$3,589.8 million at the end of the third quarter of 2019.
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 2019.
Project
GFA
--- ---
(m(2), 000s)
---
Total Active Projects
Sold as of
Unsold as of
as of December 31, December December
2019 31, 2019 31, 2019
---
Xingyang Splendid II 118.5 98.0 20.5
--- ---
Jinan Royal Palace 449.6 435.8 13.8
--- ---
Xuzhou Colorful City 130.8 122.5 8.3
--- ---
Sanya Yazhou Bay No.1 117.6 101.4 16.2
--- ---
Xi'an Metropolitan 286.0 271.8 14.2
--- ---
Jinan Xin Central 194.4 186.8 7.6
--- ---
Henan Xin Central I 261.5 253.6 7.9
--- ---
Zhengzhou Fancy City I 166.7 159.3 7.4
--- ---
Tianjin Spring Royal Palace I 139.7 131.6 8.1
--- ---
Zhengzhou International New City I 356.6 350.6 6.0
--- ---
Xingyang Splendid III 121.1 118.9 2.2
--- ---
Zhengzhou International New City II 176.0 170.0 6.0
--- ---
Zhengzhou Fancy City II (North) 108.7 101.9 6.8
--- ---
Tianjin Spring Royal Palace II 144.6 81.6 63.0
--- ---
Zhengzhou International New City III D 46.1 45.2 0.9
--- ---
Zhengzhou Hangmei International Wisdom City I 64.7 56.3 8.4
--- ---
Zhengzhou International New City III B 118.8 118.0 0.8
--- ---
Changsha Furong Thriving Family 72.3 72.2 0.1
--- ---
Chengdu Xinyuan City 741.9 196.0 545.9
--- ---
Kunshan Xinyu Jiayuan 107.9 54.1 53.8
--- ---
Xingyang Splendid IV 151.8 60.8 91.0
--- ---
Suzhou Suhe Bay * 62.6 62.6
--- ---
Zhengzhou Hangmei International Wisdom City II 78.4 37.8 40.6
--- ---
Qingdao Royal Dragon Bay 156.5 92.9 63.6
--- ---
Jinan Royal Spring Bay 116.8 46.7 70.1
--- ---
Xinyuan Golden Water View City-Zhengzhou 331.4 78.1 253.3
--- ---
Zhengzhou Fancy City III 80.6 73.9 6.7
--- ---
Zhengzhou International New City III C 82.3 69.4 12.9
--- ---
Zhengzhou International New City IV A12 199.7 179.3 20.4
--- ---
Zhengzhou International New City IV B10 92.3 51.2 41.1
--- ---
Suzhou Galaxy Bay 76.5 72.7 3.8
--- ---
Suzhou Gusu Shade I 12.0 8.6 3.4
--- ---
Dalian International Health Technology Town I 103.8 33.0 70.8
--- ---
Xingyang Splendid V 80.5 54.3 26.2
--- ---
Suzhou Gusu Shade II ** 14.3 6.9 7.4
--- ---
Zhengzhou International New City V A04 104.9 22.1 82.8
--- ---
Huzhou Silk Town *** 141.4 21.9 119.5
--- ---
Foshan Xinchuang AI International Science and 194.4 12.7 181.7
Technology Innovation Valley
--- ---
Others 55.1 55.1
--- ---
Total active projects 6,058.8 4,110.5 1,948.3
--- ---
* The Company owns a 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 a 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 a 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.
As of December 31, 2019, the Company's total saleable GFA was approximately 4,553,700 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 as of
Pre-sales
December 31,
2019
Scheduled
(m(2)
, 000s)
---
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 879.3
To be determined
will be developed gradually)
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 181.5
To be determined
developed gradually)
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 II 262.4
To be determined
Taizhou Yihe Yayuan * 127.9
To be determined
Suzhou He'an Garden ** 156.6
To be determined
Total projects under planning 2,605.4
Total active projects 1,948.3
Total of all Xinyuan unsold projects in China 4,553.7
* The Company owns 40% equity interest in Taizhou Yiju Real Estate Co., Ltd. which develops Taizhou Yihe Yayuan.
** The Company owns 24% equity interest in Suzhou Kairongchen Real Estate Co., Ltd. which develops Suzhou He'an
Garden. The Company accounts for its investment under the equity method. Based on the articles of association, the
company cannot exercise control of Suzhou He'an Garden, but has the ability to exercise significant influence over Suzhou
He'an Garden 's operating and financial decisions and accounted for it as an equity method investment.
Update on United States Real Estate Projects
At the Oosten project in Brooklyn, New York City, as of December 31, 2019, a total of 177 units out of 216 units were sold. Total revenue from this project has reached US$260.1 million.
At the Hudson Garden project, BLOOM ON FORTY FIFTH, in the Hell's Kitchen area of Manhattan, New York City, as of December 31, 2019, the Company had completed superstructure construction, precast concrete facade, and windows installation. 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 34,903 square feet of retail/commercial space, a total of 28,090 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 lease term.
The construction is currently ahead of schedule and under budget. The building will have 92 condominium units from floors two through seven with a unit mix consisting of 17 studios, 45 one-bedroom units, 24 two-bedroom units, 2 three-bedroom duplex units, 2 three-bedroom pent house units, and 2 four-bedroom duplex units. The onsite sales office and model apartments are expected to be fully furnished during the second quarter 2020 and ready to show to brokers and potential buyers. The residential unit sales strategy started with a first phase launch in China during Q4 2019 in which we exhibited in five Tier 1 and Tier 2 cities, leveraging Xinyuan's own client database and established third-party channels. The second phase will start in New York City in the second quarter 2020.
At the RKO project in Flushing, New York City, the Company continued to execute on the planning, governmental approvals, and pre-development activities. As of December 31, 2019, we have engaged GKV Architects to develop new architectural plans, and completed the schematic design for the condo and hotel mixed-use development.
Update on the United Kingdom Real Estate Project
During the fourth quarter of 2019, construction progressed as on schedule on the Madison project in London. Cladding to the building was completed in the period, and the internal fit out continues to progress well. 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, 135 apartments have been sold.
Business Outlook
The company expects 2020 contract sales of 20 to 22 billion RMB, with consolidated net income similar to 2019.
However, the above outlook is based on information available as of the date of this press release and reflects the Company's current expectations, which may be subject to change in light of uncertainties and situations related to how COVID-19 develops.
Conference Call Information
The Company will hold a conference call at 8:00am ET on April 3, 2020, to discuss its fourth quarter 2019 results. Listeners may access the call by dialing:
US Toll Free: 1-800-263-0877
Toll/International: 1-323-794-2094
Mainland China National:
4001 209101
Hong Kong Toll Free:
800 961 105
United Kingdom Toll Free: 0800 358 6377
A webcast will also be available through the Company's investor relations website at http://ir.xyre.com.
A replay of the conference call may be accessed by phone at the following numbers until April 10, 2020:
US: 1-844-512-2921
International: 1-412-317-6671
Access code: 7859451
A live and archived webcast of the conference call will be available at http://ir.xyre.com.
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, and 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 impact of the COVID-19 pandemic on the real estate markets and economies of the cities and countries in which we operate; 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 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
The Blueshirt Group
In U.S.: Ms. Julia Qian
Email: Julia@blueshirtgroup.com
In China: Ms. Susie Wang
Mobile: +86 (138) 1081-7475
Email: susie@blueshirtgroup.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,
2019 2019 2018
(unaudited) (unaudited) (unaudited)
Total revenue 906,703 497,638 1,092,162
Total costs of revenue (760,161) (374,134) (773,943)
Gross profit 146,542 123,504 318,219
Selling and distribution expenses (25,655) (21,067) (45,000)
General and administrative expenses (48,144) (36,556) (60,562)
Operating income 72,743 65,881 212,657
Interest income 38,200 4,245 9,692
Interest expense (29,747) (31,338) (22,980)
Net realized (loss)/gain on short-term investments (1,060) 3,297 (7,237)
Unrealized (loss) /gain on short-term investments (1,651) (811) 3,208
Other income 129 6,493 3,014
Net gain/(loss) on debt extinguishment 235 (2,272) (21,444)
Exchange gain/(loss) 1,088 (7,655) 652
Share of gain/(loss) of equity investees 28 (2,142) (2,605)
Income from operations before income taxes 79,965 35,698 174,957
Income taxes (40,392) (30,256) (70,845)
Net income 39,573 5,442 104,112
Net income attributable to non-controlling interest (5,634) (1,298) (34,009)
Net income attributable to Xinyuan Real Estate Co., Ltd. 33,939 4,144 70,103
shareholders
Earnings per ADS:
Basic 0.62 0.07 1.15
Diluted 0.62 0.07 1.13
ADS used in computation:
Basic 54,774 56,329 60,957
Diluted 54,936 56,624 61,894
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,
2019 2018
(unaudited) (audited)
Total revenue 2,482,633 2,217,551
Total costs of revenue (1,922,323) (1,602,073)
Gross profit 560,310 615,478
Selling and distribution expenses (86,761) (83,592)
General and administrative expenses (163,687) (156,456)
Operating income 309,862 375,430
Interest income 51,494 31,226
Interest expense (113,775) (99,246)
Net realized gain/ (loss) on short-
term investments 3,075 (3,407)
Unrealized (loss)/gain on short-term
investments (1,624) 1,150
Other income 5,849 1,742
Net loss on debt extinguishment (8,581) (21,444)
Exchange loss (7,376) (25,678)
Share of loss of equity investees (5,416) (9,374)
Income from operations before income
taxes 233,508 250,399
Income taxes (150,478) (144,447)
Net income 83,030 105,952
Net income attributable to non-
controlling interest (14,684) (32,917)
Net income attributable to Xinyuan Real
Estate Co., Ltd. 68,346 73,035
shareholders
Earnings per ADS:
Basic 1.20 1.14
Diluted 1.20 1.14
ADS used in computation:
Basic 56,741 63,565
Diluted 57,050 64,570
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,
2019 2019 2018
(unaudited) (unaudited) (audited)
ASSETS
Current assets
Cash and restricted cash 989,587 547,975 1,186,017
Short-term investments 5,596 27 8,442
Accounts receivable 97,912 61,812 64,130
Other receivables 287,300 150,637 166,633
Deposits for land use rights 26,375 42,254
Other deposits and prepayments 277,463 321,107 257,288
Advances to suppliers 44,358 52,649 46,983
Real estate properties development completed 458,205 461,419 632,360
Real estate properties under development 3,254,388 3,589,814 4,068,716
Amounts due from related parties 200,758 317,151 216,184
Amounts due from employees 2,351 2,656 1,694
Other current assets 772 4,771 520
Total current assets 5,645,065 5,510,018 6,691,221
Bank deposit for long-term debt 112,998 140,392
Real estate properties held for lease, net 515,869 428,737 302,764
Property and equipment, net 43,004 43,394 38,114
Long-term investment 613,620 578,733 564,340
Deferred tax assets 260,153 205,633 230,453
Deposits for land use rights and properties 32,969 21,208 21,855
Amounts due from related parties 82,687 24,587 26,122
Contract assets 23,093 21,118 21,779
Right-of-use assets 11,801 11,252
Other assets 80,405 121,355 137,063
TOTAL ASSETS 7,421,664 7,106,427 8,033,711
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,
2019 2019 2018
(unaudited) (unaudited) (audited)
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and notes payable 1,166,660 782,573 790,631
Short-term bank loans and other debt 73,419 28,383 43,711
Customer deposits 1,106,099 1,367,391 1,921,851
Income tax payable 298,228 165,489 213,273
Other payables and accrued liabilities 323,164 297,603 341,108
Payroll and welfare payable 24,224 18,717 33,752
Current portion of long-term bank loans and other debt 1,418,955 981,182 1,647,918
Lease liability, current portion 11,284 11,878 6,562
Mandatorily redeemable non-controlling interests 8,857 7,852 22,559
Amounts due to related parties 53,682 31,088 48,502
Total current liabilities 4,484,572 3,692,156 5,069,867
Non-current liabilities
Long-term bank loans 686,065 801,733 720,039
Other long-term debt 1,036,691 1,400,396 1,040,455
Deferred tax liabilities 338,593 403,125 370,509
Unrecognized tax benefits 73,605 59,820 45,939
Lease liability 10,187 10,805 10,015
Amounts due to related parties 28,764 31,242
TOTAL LIABILITIES 6,629,713 6,396,799 7,288,066
Shareholders' equity
Common shares 16 16 16
Treasury shares (113,720) (108,582) (87,639)
Additional paid-in capital 543,291 531,549 532,117
Statutory reserves 175,008 166,501 166,496
Retained earnings 135,873 115,593 99,502
Accumulated other comprehensive loss (50,167) (66,261) (30,122)
Total Xinyuan Real Estate Co., Ltd. shareholders' equity 690,301 638,816 680,370
Non-controlling interest 101,650 70,812 65,275
Total equity 791,951 709,628 745,645
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 7,421,664 7,106,427 8,033,711
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SOURCE Xinyuan Real Estate Co., Ltd.
