BEIJING, May 16, 2014 /PRNewswire/ -- Xinyuan Real Estate
Co., Ltd. ("Xinyuan" or "the Company") (NYSE: XIN), a residential
real estate developer with a primary focus on high growth cities in
China, today announced its
unaudited financial results for the first quarter 2014.
Highlights for the First Quarter 2014
- Total first quarter revenues were US$226.4 million, a 21.7% decrease from
US$289.2 million recorded in the
fourth quarter of 2013 and a 33.6% increase from US$169.4 million reported in the first quarter of
2013. First quarter revenue exceeded the mid-point of previous
guidance of US$197.5 million by
14.6%.
- Contract sales totaled US$273.9
million, a 27.4% decrease from US$377.5 million recorded in the fourth quarter
of 2013 and a 53.6% increase from US$178.3
million recorded in the first quarter of 2013. First quarter
contract sales exceeded the mid-point of previous guidance of
US$227.5 million by 20.4%.
- Total gross floor area ("GFA") sales were 127,100 square
meters, a 47.4% decrease from 241,700 square meters sold in the
fourth quarter of 2013, and a 2.0% increase from 124,600 square
meters sold in the first quarter of 2013.
- Selling, General, and Administrative ("SG&A") expenses as a
percent of total revenue totaled 10.7% compared to 12.1% in the
fourth quarter of 2013 and 7.3% in the first quarter of 2013.
- Net income was US$10.1 million, a
68.0% decrease from US$31.6 million
in the fourth quarter of 2013 and a 62.0% decrease from
US$26.6 million reported in the first
quarter of 2013. First quarter net income slightly exceeded
the mid-point of previous net income guidance.
- Diluted net earnings per American Depositary Share ("ADS")
attributable to shareholders were US$0.12, compared to diluted net earnings per ADS
of US$0.36 in the fourth quarter of
2013 and US$0.37 per ADS in the first
quarter of 2013.
- Cash and cash equivalents, including restricted cash, decreased
by US$182.2 million to US$655.0 million as of March 31, 2014 from US$837.2 million as of December 31, 2013. Short and long term debt
increased by US$136.2 million from
US$811.0 million as of December 31, 2013 to US$947.2 million as of March 31, 2014.
- Book value was US$11.85 per ADS
as of March 31, 2014.
- The Company repurchased 1.54 million ADSs at a total cost of
approximately US$7.6 million in the
first quarter.
- The Board of Directors of the Company has approved the payment
of a quarterly dividend of US$0.05
per ADS payable on June 12, 2014 to
shareholders of record as of May 30,
2014.
- The Company acquired three land parcels (for a total of three
development projects) in Chengdu,
Sanya and Changsha respectively,
for a total GFA of 611,600 square meters.
Mr. Yong Zhang, Xinyuan's
Chairman said, "We experienced another strong quarter of sales
exceeding our contract sales and revenue forecast as market
conditions were generally stable in the cities in which we conduct
operations. Of our five main projects this quarter, the
majority experienced increases in average selling prices and our
two main projects this quarter that experienced an ASP decrease
were due to product mix. Importantly, we did not reduce
prices at our available units in the first quarter. We also
commenced pre-sales of one new project Beijing Xindo Park and
acquired three new land parcels during the first quarter, along
with one additional land acquisition in Shanghai in April."
"As we look to the remaining quarters of the year, we expect our
project activity will expand. Three new projects in
China are scheduled to launch
pre-sales in the second quarter, and we expect greater levels of
year-over-year growth in the second quarter and the second half of
the year. Our New York Oosten project in Williamsburg is expected
to start pre-sales in late May. We remain committed to investing in
our business for future development and growth," concluded Mr.
Zhang.
Financial Results for the First Quarter 2014
Contract Sales
Contract sales totaled US$273.9
million in the first quarter compared to US$377.5 million in the fourth quarter of 2013
and US$178.3 million in the first
quarter of 2013. The Company's GFA sales were 127,100 square meters
in the first quarter of 2014 versus 241,700 square meters in the
fourth quarter of 2013 and 124,600 square meters in the first
quarter of 2013. The average selling price ("ASP") per square meter
sold was RMB13,181 (US$2,155) in the first quarter of 2014 versus
RMB9,678 (US$1,562) in the fourth quarter of 2013 and
RMB8,985 (US$1,431) in the first quarter of 2013.
The Company commenced pre-sales of the Beijing Xindo Park
project in the first quarter with total saleable GFA of 132,400
square meters. Sales of Beijing Xindo Park contributed
approximately 28.2% of GFA sales, and 44.6% of contract sales in
the first quarter 2014.
Breakdown of GFA Sales and ASP's by Project
|
|
|
|
|
|
|
|
|
Q1 2013
|
Q4 2013
|
Q1 2014
|
Unsold
|
|
GFA
|
ASP
|
GFA
|
ASP
|
GFA
|
ASP
|
GFA
|
Project
|
(m2
000)
|
(Rmb)
|
(m2
000)
|
(Rmb)
|
(m2
000)
|
(Rmb)
|
(m2
000)
|
Zhengzhou Royal
Palace
|
17.2
|
9,093
|
1.2
|
23,351
|
0.4
|
33,539
|
0.5
|
Zhengzhou Century
East A
|
19.4
|
9,209
|
1.9
|
13,319
|
1.2
|
15,309
|
1.4
|
Zhengzhou Century
East B
|
21.1
|
8,822
|
2.3
|
16,831
|
0.2
|
9,147
|
0.7
|
Zhengzhou Xin
City
|
-
|
-
|
53.7
|
9,972
|
33.6
|
10,672
|
66.1
|
Kunshan Intl City
Garden
|
18.3
|
8,519
|
8.8
|
11,209
|
1.1
|
12,887
|
2.4
|
Kunshan Royal
Palace
|
-
|
-
|
42.5
|
9,265
|
7.0
|
10,615
|
238.9
|
Suzhou Xin
City
|
-
|
-
|
52.6
|
8,577
|
19.4
|
9,369
|
25.4
|
Jinan Xinyuan
Splendid
|
40.8
|
8,764
|
45.7
|
10,372
|
23.8
|
9,746
|
90.2
|
Xuzhou Colorful
City
|
-
|
-
|
31.3
|
8,820
|
4.0
|
6,954
|
94.0
|
Beijing Xindo
Park
|
-
|
-
|
-
|
-
|
35.8
|
20,867
|
96.6
|
Others
|
7.8
|
-
|
1.7
|
-
|
0.6
|
-
|
3.9
|
Total
|
124.6
|
8,985
|
241.7
|
9,678
|
127.1
|
13,181
|
620.1
|
Revenue
In the first quarter of 2014, the Company's total revenue was
US$226.4 million compared to
US$289.2 million in the fourth
quarter of 2013 and US$169.4 million
in the first quarter of 2013.
Gross Profit
Gross profit for the first quarter of 2014 was US$59.4 million, or 26.2% of revenue, compared to
a gross profit of US$94.9 million, or
32.8% of revenue, in the fourth quarter of 2013 and a gross profit
of US$55.7 million, or 32.9% of
revenue, in the first quarter of 2013. The gross margin decrease
was mainly due to cost increases of two near completion projects
and two lower margin projects which contributed 35% of total
revenue in the first quarter.
Selling, General and Administrative Expenses
SG&A expenses were US$24.3
million for the first quarter of 2014 compared to
US$35.1 million for the fourth
quarter of 2013 and US$12.4 million
for the first quarter of 2013. As a percentage of total revenue,
SG&A expenses were 10.7% compared to 12.1% in the fourth
quarter of 2013 and 7.3% in the first quarter of 2013. The decrease
in SG&A expenses compared to the 2013 fourth quarter was mainly
due to a fourth quarter year end performance based bonus payments
and selling and marketing expenses related to robust sales in the
fourth quarter of 2013.
Net Income
Net income for the first quarter of 2014 was US$10.1 million compared to US$31.6 million for the fourth quarter of 2013
and US$26.6 million for the same
period in 2013. Net margin was 4.4%, compared to 10.9% in the
fourth quarter of 2013 and 15.7% in the first quarter of
2013. Diluted earnings per ADS were US$0.12, compared to US$0.36 per ADS in the fourth quarter of 2013 and
to US$0.37 per ADS in the same period
in 2013.
Balance Sheet
As of March 31, 2014, the Company
reported US$655.0 million in cash and
cash equivalents (including restricted cash) compared to
US$837.2 million as of December 31, 2013. Total debt outstanding was
US$947.2 million, an increase of
US$136.2 million compared to
US$811.0 million at the end of the
fourth quarter of 2013. The cash decrease was largely due to the
payment of US$376.3 million for land
acquisitions and deposits, partially offset by the proceeds from
bank loans and other debts in the aggregate of US$192.4 million. The balance of the Company's
real estate property under development at the end of the first
quarter was US$868.7 million compared
to US$932.5 million at the end of the
fourth quarter of 2013.
Project Status
Below is a summary table of projects that were active and
available for sale in the first quarter of 2014.
|
GFA
|
Contract
Sales
|
Project
Cost % Complete
|
(m2
000)
|
(US$
millions)
|
Project
|
Total
Active Projects
|
Sold to
date
|
Total
Active Projects
|
Sales to
date
|
% Sold
|
|
|
Zhengzhou Royal
Palace
|
132.4
|
131.9
|
241.7
|
238.9
|
98.8%
|
91.0%
|
Zhengzhou Century
East A
|
77.3
|
75.9
|
127.5
|
124.9
|
98.0%
|
95.0%
|
Zhengzhou Century
East B
|
166.5
|
165.8
|
247.1
|
246.0
|
99.6%
|
96.9%
|
Zhengzhou Xin
City
|
185.0
|
118.9
|
330.1
|
195.7
|
59.3%
|
62.5%
|
Kunshan Intl City
Garden
|
497.9
|
495.5
|
613.4
|
608.8
|
99.3%
|
100.0%
|
Kunshan Royal
Palace
|
288.4
|
49.5
|
511.3
|
76.4
|
14.9%
|
41.3%
|
Suzhou Xin
City
|
126.8
|
101.4
|
187.1
|
142.6
|
76.2%
|
71.6%
|
Jinan Xinyuan
Splendid
|
565.2
|
475.0
|
795.3
|
669.5
|
84.2%
|
85.2%
|
Xuzhou Colorful
City
|
129.3
|
35.3
|
198.9
|
49.6
|
24.9%
|
45.1%
|
Beijing Xindo
Park
|
132.4
|
35.8
|
461.0
|
122.3
|
26.5%
|
68.9%
|
Others remaining
GFA
|
3.9
|
|
|
|
|
|
Total
active projects
|
2,305.1
|
1,685.0
|
3,713.4
|
2,474.7
|
66.6%
|
78.0%
|
As of May 15, 2014, the Company's
total saleable GFA was approximately 2,457,700 square meters for
active projects and under planning stage projects. Below is a
summary of all of our planning stage projects:
|
Unsold
GFA
(m2
000)
|
Pre sales
Scheduled
|
Zhengzhou Xindo
Park
|
293.4
|
Q2 2014
|
Suzhou Lake Royal
Palace
|
171.9
|
Q2 2014
|
Xingyang
Splendid
|
240.2
|
Q2 2014
|
New York
Oosten
|
37.1
|
Q2 2014
|
Jinan Royal
Palace
|
420.5
|
Q3 2014
|
Newly Acquired
Chengdu Land
|
225.0
|
Q4 2014
|
Newly Acquired Sanya
Land
|
118.2
|
Q1 2015
|
Newly Acquired
Shanghai Land
|
62.9
|
Q1 2015
|
Newly Acquired
Changsha Land
|
268.4
|
Q1 2015
|
Total projects
under planning
|
1,837.6
|
|
Total active
projects
|
620.1
|
|
Total all Xinyuan
projects
|
2,457.7
|
|
Second Quarter Outlook
The Company expects contract sales in the second quarter of 2014
to reach approximately US$277
million. Revenue is expected to total US$230 million in the second quarter while net
income is expected to reach US$23
million which includes certain tax expense benefits to be
realized in the second quarter.
Conference Call Information
The Company will hold a conference call at 8:00 am ET on May 16,
2014 to discuss first quarter 2014 results. Listeners may
access the call by dialing 1-913-312-1427. A webcast will also be
available through the Company's investor relations website at
http://www.xyre.com. A replay of the call will be available through
May 23, 2014 by dialing
1-858-384-5517, access code: 6996086
About Xinyuan Real Estate Co., Ltd.
Xinyuan Real Estate Co., Ltd. ("Xinyuan") (NYSE: XIN) is a
developer of large scale, high quality residential real estate
projects aimed at providing middle-income consumers with a
comfortable and convenient community lifestyle. In China, Xinyuan primarily focuses its
development projects in Tier II cities, including Hefei, Jinan,
Kunshan, Suzhou, Zhengzhou, Xuzhou
and Chengdu. The Company's U.S.
development arm, XIN Development Group International, Inc. ,is a
pioneer amongst Chinese real estate residential developers,
entering the US market in 2012. Xinyuan is the first real
estate developer from China to be
listed on the New York Stock Exchange. 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, 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 into new geographic markets 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, 2013. 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:
Ms. Helen Zhang
Interim Chief Financial Officer
Tel: +86 (10) 8588-9398
Email: irmanager@xyre.com
ICR, LLC
In U.S.: +1-646-308-1472
In China: +86 (10) 6583-7511
Email: William.zima@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,
|
|
2014
|
|
2013
|
|
2013
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
Total
revenue
|
226,412
|
|
289,160
|
|
169,429
|
|
|
|
|
|
|
Total costs of
revenue
|
(167,043)
|
|
(194,228)
|
|
(113,762)
|
Gross
profit
|
59,369
|
|
94,932
|
|
55,667
|
|
|
|
|
|
|
Selling and
distribution expenses
|
(4,781)
|
|
(9,443)
|
|
(2,788)
|
General and
administrative expenses
|
(19,494)
|
|
(25,650)
|
|
(9,574)
|
|
|
|
|
|
|
Operating
income
|
35,094
|
|
59,839
|
|
43,305
|
|
|
|
|
|
|
Interest
income
|
1,531
|
|
3,084
|
|
1,635
|
Interest
expense
|
(8,641)
|
|
(6,411)
|
|
-
|
Other
income
|
-
|
|
1,539
|
|
-
|
Share of loss of
equity investee
|
(217)
|
|
(117)
|
|
-
|
|
|
|
|
|
|
Income from
operations before income taxes
|
27,767
|
|
57,934
|
|
44,940
|
|
|
|
|
|
|
Income
taxes
|
(17,717)
|
|
(26,303)
|
|
(18,325)
|
|
|
|
|
|
|
Net
income
|
10,050
|
|
31,631
|
|
26,615
|
|
|
|
|
|
|
Net income
attributable to Xinyuan Real Estate Co., Ltd.
shareholders
|
10,050
|
|
31,631
|
|
26,615
|
|
|
|
|
|
|
Earnings per
ADS:
|
|
|
|
|
|
Basic
|
0.13
|
|
0.41
|
|
0.37
|
Diluted
|
0.12
|
|
0.36
|
|
0.37
|
ADS used in
computation:
|
|
|
|
|
|
Basic
|
77,801
|
|
77,616
|
|
71,043
|
Diluted
|
90,810
|
|
91,097
|
|
72,292
|
|
|
|
|
|
|
|
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,
|
|
|
2014
|
|
2013
|
|
|
(unaudited)
|
|
(audited)
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
348,096
|
|
587,119
|
Restricted
cash
|
|
306,857
|
|
250,098
|
Accounts
receivable
|
|
24,986
|
|
8,528
|
Other
receivables
|
|
143,813
|
|
10,593
|
Restricted
deposit
|
|
11,411
|
|
11,514
|
Deposits for land use
right
|
|
480,739
|
|
297,389
|
Other deposits and
prepayments
|
|
106,026
|
|
103,790
|
Advances to
suppliers
|
|
20,175
|
|
15,317
|
Real estate property
held for sale
|
|
5,524
|
|
5,524
|
Real estate property
development completed
|
|
17,036
|
|
21,260
|
Real estate property
under development
|
|
868,679
|
|
932,519
|
Amounts due from
related party
|
|
1,301
|
|
820
|
Amounts due from
employees
|
|
586
|
|
59
|
Other current
assets
|
|
34
|
|
-
|
|
|
|
|
|
Total current
assets
|
|
2,335,263
|
|
2,244,530
|
|
|
|
|
|
Real estate
properties held for lease, net
|
|
61,534
|
|
60,410
|
Property and
equipment, net
|
|
45,688
|
|
46,706
|
Other long-term
investment
|
|
242
|
|
242
|
Investment in joint
venture
|
|
5,676
|
|
5,945
|
Deferred tax
assets
|
|
10,593
|
|
10,191
|
Deferred
charges
|
|
8,699
|
|
9,049
|
Other
assets
|
|
4,940
|
|
5,028
|
|
|
|
|
|
TOTAL
ASSETS
|
|
2,472,635
|
|
2,382,101
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
171,161
|
|
194,403
|
Short-term bank loans
and other debts
|
|
113,782
|
|
23,291
|
Customer
deposits
|
|
81,805
|
|
75,285
|
Income tax
payable
|
|
106,833
|
|
121,642
|
Deferred tax
liabilities
|
|
85,821
|
|
78,958
|
Other payables and
accrued liabilities
|
|
79,881
|
|
73,446
|
Payroll and welfare
payable
|
|
4,610
|
|
19,638
|
Current portion of
long-term bank loans and other debt
|
|
231,015
|
|
217,964
|
Current maturities of
capital lease obligations
|
|
2,721
|
|
2,746
|
|
|
|
|
|
Total current
liabilities
|
|
877,629
|
|
807,373
|
|
|
|
|
|
Non- current
liabilities
|
|
|
|
|
Long-term bank
loans
|
|
61,768
|
|
32,804
|
Other long term
debts
|
|
540,662
|
|
536,943
|
Deferred tax
liabilities
|
|
9,385
|
|
9,385
|
Unrecognized tax
benefits
|
|
16,167
|
|
16,314
|
Capital lease
obligations, net of current maturities
|
|
25,742
|
|
26,646
|
TOTAL
LIABILITIES
|
|
1,531,353
|
|
1,429,465
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Common
shares
|
|
16
|
|
16
|
Treasury
shares
|
|
(10,696)
|
|
(3,085)
|
Additional paid-in
capital
|
|
535,169
|
|
534,937
|
Statutory
reserves
|
|
68,547
|
|
68,547
|
Retained
earnings
|
|
250,447
|
|
244,310
|
Accumulated other
comprehensive income
|
|
97,799
|
|
107,911
|
TOTAL
EQUITY
|
|
941,282
|
|
952,636
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
2,472,635
|
|
2,382,101
|
SOURCE Xinyuan Real Estate Co., Ltd.