UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

 

FOR THE MONTH OF DECEMBER 2019

COMMISSION FILE NUMBER: 001-33863

 

XINYUAN REAL ESTATE CO., LTD.

 

27/F, China Central Place, Tower II
79 Jianguo Road, Chaoyang District
Beijing 100025
People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x                                Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

  

 

 

 

 

  

TABLE OF CONTENTS

 

Exhibits

 

Exhibit 99.1Press release of Xinyuan Real Estate Co., Ltd., dated December 6, 2019, regarding third quarter 2019 financial results
 Exhibit 99.2Press release of Xinyuan Real Estate Co., Ltd., dated December 6, 2019, announcing third quarter 2019 dividend declaration

 

Signature

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Xinyuan Real Estate Co., Ltd.
   
   
     
  By:

/s/ Yu (Brian) Chen

  Name: Yu (Brian) Chen
  Title: Chief Financial Officer

 

Date: December 6, 2019

 

 

 

 

[Signature Page to Form 6-K] 

 

 

 

 

Exhibit 99.1

  

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

 

 

BEIJING, China, December 6, 2019 - Xinyuan Real Estate Co., Ltd. (“Xinyuan” or the “Company”) (NYSE: XIN), an NYSE-listed real estate developer and property manager operating primarily in China and in other countries, today announced its unaudited financial results for the third quarter ended September 30, 2019.

 

Highlights

 

·Total revenue increased 40.0% to US$1,575.9 million for the nine months ended September 30, 2019, from US$1,125.4 million in the same period of the prior year. Total revenue decreased 16.4% to US$497.6 million in the third quarter of 2019 from US$595.5 million in the third quarter of 2018 and decreased 18.3% from US$609.4 million in the second quarter of 2019.

 

·Gross profit increased 39.2% to US$413.8 million for the nine months ended September 30, 2019, from US$297.3 million in the same period of the prior year. Gross profit decreased 17.2% to US$123.5 million in the third quarter of 2019 from US$149.2 million in the third quarter of 2018 and decreased 22.4% from US$159.2 million in the second quarter of 2019.

 

·Net income was US$43.5 million for the nine months ended September 30, 2019, compared to US$1.8 million in the same period of the prior year. Net income was US$5.4 million in the third quarter of 2019 compared to US$23.9 million in the third quarter of 2018 and US$19.8 million in the second quarter of 2019.

 

·Contract sales decreased 5.4% to US$1,479.3 million for the nine months ended September 30, 2019, from US$1,563.8 million in the same period of the prior year. Excluding the impact of change in exchange rate between RMB and the USD, contract sales remained flat compared to the same period of the prior year in RMB. Contract sales decreased 11.6% to US$504.8 million in the third quarter of 2019 from US$571.3 million in the third quarter of 2018 and decreased 0.5% from US$507.4 million in the second quarter of 2019.

 

·Diluted net earnings per American Depositary Share (“ADS”) attributable to shareholders were US$0.60 for the nine months ended September 30, 2019, compared to US$0.04 in the same period of the prior year. Diluted net earnings per ADS attributable to shareholders were US$0.07 in the third quarter of 2019 compared to US$0.31 in the third quarter of 2018 and US$0.19 in the second quarter of 2019.

 

·Current debt outstanding at the end of the third quarter of 2019 decreased 18.8% to US$1,009.6 million, or 31.4% of total debt, from US$1,243.1 million, or 34.6% of total debt, at the end of the second quarter of 2019.

 

Mr. Yong Zhang, Xinyuan’s Chairman, stated, “This quarter, we remained profitable despite uncertainties in the macro-economic environment and stringent government restrictions on the Chinese housing market. These headwinds caused contract sales in the third quarter of 2019 to decrease compared to the same quarter in 2018, and total revenue decreased as well. However, we continued to see demand for our offerings and were able to commence pre-sales of two new projects, which contributed 7.3% and 9.1% of total GFA sales and contract sales, respectively.”

 

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“We continued to make progress in our overseas projects,” added Mr. Zhang. “Our Hudson Garden project hard costs remained on track, and we received the Temporary Certification of Occupancy for Target’s ground floor occupancy in early November. We engaged GKV Architects for our RKO project in Flushing to develop new architectural plans, and schematic designs are already complete. Our Madison project in the United Kingdom remains on course for completion in 2020.”

 

Mr. Zhang continued, “In October, our Xinyuan Property Management Company was successfully listed on the Hong Kong Stock Exchange under the code ‘01895’. Our Xinyuan Property Management subsidiary has achieved rapid growth in recent years, and we believe that listing on a high-quality platform will benefit all of our shareholders.”

 

“Although uncertainties persist in the market, we are confident in our long-term strategy. We are constantly seeking new opportunities to enhance the Company’s overall performance and to further differentiate ourselves in the market with our auxiliary businesses and services. Furthermore, we are also pleased to offer another quarterly dividend payment to our shareholders,” concluded Mr. Zhang.

 

Third Quarter 2019 Financial Results

 

Contract Sales

Contract sales in China totaled US$504.8 million in the third quarter compared to US$571.3 million in the third quarter of 2018 and US$507.4 million in the second quarter of 2019.

 

The Company’s GFA sales in China were 255,600 square meters in the third quarter of 2019 compared to 277,500 square meters in the third quarter of 2018 and 233,200 square meters in the second quarter of 2019.

 

The average selling price (“ASP”) per square meter sold in China was RMB13,531 (US$1,975) in the third quarter of 2019 compared to RMB13,406 (US$2,059) in the third quarter of 2018 and RMB14,755 (US$2,176) in the second quarter of 2019.

 

The Company commenced pre-sales of two new projects in the third quarter of 2019, Zhengzhou International New City V A04 and Huzhou Silk Town. The presales contributed 7.3% and 9.1% of total GFA sales and total contract sales, respectively.

 

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Breakdown of GFA Sales and ASPs by Project in China

 

Project Q3 2018 Q2 2019 Q3 2019
GFA ASP GFA ASP GFA ASP
(m2, 000s) (RMB) (m2, 000s) (RMB) (m2, 000s) (RMB)
Xingyang Splendid II 1.2 13,900 3.6 7,330 0.4 13,048
Jinan Royal Palace 25.9 16,426 2.8 14,739 2.2 16,483
Xuzhou Colorful City 0.1 10,989 0.7 14,541 0.4 12,453
Sanya Yazhou Bay No.1 (0.9) 23,515 0.3 38,158 0.4 24,890
Xi’an Metropolitan 1.8 10,546 0.1 12,896 0.1 12,845
Jinan Xin Central 1.3 12,839 0.1 18,954 0.4 12,926
Henan Xin Central I 0.3 18,931 0.7 7,942 - -
Zhengzhou Fancy City I 0.2 17,481 0.5 13,714 - -
Zhengzhou Fancy City II (South) 0.4 17,780 (0.1) 9,469 - -
Tianjin Spring Royal Palace I - - - - 0.3 11,468
Zhengzhou International New City I 2.3 25,725 - - 5.9 14,784
Henan Xin Central II 0.2 16,913 0.1 15,932 - -
Xingyang Splendid III 2.7 8,018 0.3 8,091 0.8 16,498
Zhengzhou International New City II 3.4 13,388 0.5 18,997 1.9 17,817
Zhengzhou Fancy City II (North) 2.5 9,567 2.8 9,884 4.3 9,148
Tianjin Spring Royal Palace II 23.6 12,691 10.8 13,496 8.1 13,403
Zhengzhou International New City III D 14.0 14,264 0.6 14,045 0.1 14,446
Zhengzhou Hangmei International Wisdom City I 18.9 7,230 1.8 6,845 0.5 6,968
Zhengzhou International New City III B 54.5 14,135 0.7 15,174 0.1 13,874
Changsha Furong Thriving Family 68.4 9,773 - - 0.2 9,568
Chengdu Xinyuan City 7.1 9,988 2.7 7,585 6.1 7,210
Kunshan Xinyu Jiayuan 13.1 26,108 13.0 23,660 5.6 23,878
Xingyang Splendid IV 14.7 7,576 0.3 7,326 7.9 7,629
Suzhou Suhe Bay * 9.6 21,722 8.5 21,461 - -
Zhengzhou Hangmei International Wisdom City II - - 9.3 7,394 9.2 7,391
Qingdao Royal Dragon Bay - - 28.8 19,797 6.9 22,162
Jinan Royal Spring Bay - - 4.0 8,777 5.8 8,547
Xinyuan Golden Water View City-Zhengzhou - - 8.3 19,740 1.3 24,217
Zhengzhou Fancy City III - - 8.5 12,729 11.5 13,221
Zhengzhou International New City III C - - 15.7 12,459 4.6 13,157
Zhengzhou International New City IV A12 - - 34.8 14,224 85.6 14,325
Zhengzhou International New City IV B10 - - 15.5 10,698 12.5 9,996
Suzhou Galaxy Bay - - 34.6 14,227 10.8 14,591
Suzhou Gusu Shade I - - 5.6 37,678 1.6 37,563
Dalian International Health Technology Town I - - 0.4 10,421 19.6 9,349
Xingyang Splendid V - - 13.1 7,629 18.4 7,635
Suzhou Gusu Shade II ** - - 0.6 38,893 3.4 38,111
Zhengzhou International New City V A04 - - - - 0.3 12,068
Huzhou Silk Town *** - - - - 18.4 16,840
Others 12.2 - 3.2 - - -
Total 277.5 13,406 233.2 14,755 255.6 13,531

 

* The Company owns 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 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 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.

 

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Revenue

In the third quarter of 2019, the Company’s total revenue decreased 16.4% to US$497.6 million from US$595.5 million in the third quarter of 2018 and decreased 18.3% from US$609.4 million in the second quarter of 2019.

 

Gross Profit

Gross profit for the third quarter of 2019 was US$123.5 million, or 24.8% of total revenue, compared to gross profit of US$149.2 million, or 25.1% of total revenue, in the third quarter of 2018 and a gross profit of US$159.2 million, or 26.1% of total revenue, in the second quarter of 2019.

 

Selling, General and Administrative Expenses

SG&A expenses were US$57.6 million for the third quarter of 2019 compared to US$47.7 million for the third quarter of 2018 and US$63.0 million for the second quarter of 2019. As a percentage of total revenue, SG&A expenses were 11.6% compared to 8.0% in the third quarter of 2018 and 10.3% in the second quarter of 2019.

 

Net Income

Net income for the third quarter of 2019 was US$5.4 million compared to US$23.9 million for the third quarter of 2018 and US$19.8 million for the second quarter of 2019. Net margin was 1.1% compared to 4.0% in the third quarter of 2018 and 3.3% in the second quarter of 2019. Diluted net earnings per ADS were US$0.07 compared to US$0.31 per ADS in the third quarter of 2018 and US$0.19 per ADS in the second quarter of 2019.

        

Balance Sheet

As of September 30, 2019, the Company’s cash and cash equivalents (including restricted cash) decreased to US$688.4 million from US$1,021.8 million as of June 30, 2019.

 

Total debt outstanding was US$3,211.7 million, which reflects a decrease of US$383.3 million from US$3,595.0 million at the end of the second quarter of 2019. The balance of the Company’s real estate properties under development at the end of the third quarter of 2019 was US$3,589.8 million compared to US$3,844.0 million at the end of the second quarter of 2019.

 

 4 

 

 

Real Estate Project Status in China

 

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

 

Project GFA
(m2, 000s)
Total Active Projects Sold to date Unsold to date
Xingyang Splendid II 118.5 97.8 20.7
Jinan Royal Palace 449.6 433.8 15.8
Xuzhou Colorful City 130.8 122.6 8.2
Sanya Yazhou Bay No.1 117.6 101.8 15.8
Xi’an Metropolitan 286.0 269.9 16.1
Jinan Xin Central 194.4 183.9 10.5
Henan Xin Central I 261.5 253.2 8.3
Zhengzhou Fancy City I 166.7 159.4 7.3
Zhengzhou Fancy City II (South) 84.1 81.7 2.4
Tianjin Spring Royal Palace I 139.7 131.6 8.1
Zhengzhou International New City I 356.6 344.4 12.2
Henan Xin Central II 109.5 103.9 5.6
Xingyang Splendid III 121.1 117.3 3.8
Zhengzhou International New City II 176.0 165.6 10.4
Zhengzhou Fancy City II (North) 108.7 95.2 13.5
Tianjin Spring Royal Palace II 144.6 80.2 64.4
Zhengzhou International New City III D 46.1 44.3 1.8
Zhengzhou Hangmei International Wisdom City I 64.7 55.5 9.2
Zhengzhou International New City III B 118.8 117.9 0.9
Changsha Furong Thriving Family 72.3 72.3 -
Chengdu Xinyuan City 741.8 116.0 625.8
Kunshan Xinyu Jiayuan 107.9 47.7 60.2
Xingyang Splendid IV 151.8 29.9 121.9
Suzhou Suhe Bay * 62.6 62.6 -
Zhengzhou Hangmei International Wisdom City II 78.4 33.2 45.2
Qingdao Royal Dragon Bay 157.3 71.5 85.8
Jinan Royal Spring Bay 116.8 30.7 86.1
Xinyuan Golden Water View City-Zhengzhou 331.5 64.5 267.0
Zhengzhou Fancy City III 80.6 57.3 23.3
Zhengzhou International New City III C 82.3 66.2 16.1
Zhengzhou International New City IV A12 199.7 154.5 45.2
Zhengzhou International New City IV B10 92.3 35.9 56.4
Suzhou Galaxy Bay 76.5 72.1 4.4
Suzhou Gusu Shade I 12.0 8.2 3.8
Dalian International Health Technology Town I 103.8 20.9 82.9
Xingyang Splendid V 80.5 31.5 49.0
Suzhou Gusu Shade II ** 14.3 4.0 10.3
Zhengzhou International New City V A04 104.9 0.3 104.6
Huzhou Silk Town *** 141.4 18.4 123.0
Others 51.4 - 51.4
Total active projects 6,055.1 3,957.7 2,097.4

 

* The Company owns 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 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 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.

 

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As of September 30, 2019, the Company’s total saleable GFA was approximately 5,049,200 square meters for active projects and under planning stage projects in China. Below is a summary of all of the Company’s projects in China:

 

 

Unsold GFA

(m2, 000s)

Pre-sales

Scheduled

 
   
Tongzhou Xinyuan Royal Palace-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 will be developed gradually) 1,187.9 To be determined  
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 developed gradually) 181.5 To be determined  
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 456.8 To be determined  
Taizhou Yihe Yayuan 127.9 To be determined  
Total projects under planning 2,951.8    
Total active projects 2,097.4    
Total of all Xinyuan unsold projects in China 5,049.2    

  

Update on Real Estate Projects in the United States

 

As of September 30, 2019, a total of 177 units out of 216 units were sold and closed at the Company’s Oosten project in Brooklyn, New York City, with total revenue from this project reaching US$260.1 million.

 

As of September 30, 2019, the Company had completed superstructure construction, precast concrete facade, and windows installation for its Hudson Garden project, BLOOM ON FORTY FIFTH, in the Hell’s Kitchen area of Manhattan, New York City. The project had also received permanent power from the electric utility provider. Hard costs remain under budget and trend on schedule. 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 38,000 square feet of retail/commercial space, a total of 29,000 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 term. Residential unit sales are slated to open in the first quarter of 2020. 

 

The Company continued to execute on the planning, governmental approvals, and pre-development activities of its ground-up project, the RKO, in Flushing, New York City. As of September 30, 2019, GKV Architects was engaged to develop new architectural plans, and the schematic design is 100% completed. During the past year, the Landmark Preservation Committee approved the Company’s landmark protection plan relating to the landmarked theater on site and awarded the Company a Certificate of Appropriateness. Landmark artifact removal was completed at the end of February 2019, and the artifacts are currently stored in a warehouse for restoration work. ​

 

Real Estate Project Update in the United Kingdom

 

During the third quarter of 2019, construction progressed as expected on the Madison project in London. Cladding is slated for completion in the fourth quarter of 2019, and the internal fit out is progressing in earnest. 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, 134 apartments have been sold.

 

Business Outlook

 

For the full year of 2019, the Company expects consolidated net income and contract sales to be similar to those of 2018.

 

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Conference Call Information

 

The Company will hold a conference call at 8:00am ET on December 6, 2019, to discuss its third quarter 2019 results. Listeners may access the call by dialing:

 

US Toll Free: 888-394-8218

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 December 13, 2019, by dialing:

 

US: 1-844-512-2921

International: 1-412-317-6671

Access code: 8907992

  

About Xinyuan Real Estate Co., Ltd.

Xinyuan Real Estate Co., Ltd. (“Xinyuan”) is an NYSE-listed real estate developer and property manager primarily in China and recently in other countries. In China, Xinyuan develops and manages large scale, high quality real estate projects in over ten tier one and tier two cities, including Beijing, Shanghai, Zhengzhou, Jinan, Xi’an, and Suzhou. Xinyuan was one of the first Chinese real estate developers to enter the U.S. market and over the past few years has been active in real estate development in New York. Xinyuan aims to provide comfortable and convenient real estate related products and services to middle-class consumers. For more information, please visit http://www.xyre.com.

 

Forward Looking Statements

Certain statements in this press release constitute “forward-looking statements”. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements includes statements about estimated financial performance and sales performance and activity, among others, and can generally be identified by terminology such as “will”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar statements. Statements that are not historical statements are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including, but not limited to, our ability to continue to implement our business model successfully; our ability to secure adequate financing for our project development; our ability to successfully sell or complete our property projects under construction and planning; our ability to enter successfully into new geographic markets and new business lines and expand our operations; the marketing and sales ability of our third-party sales agents; the performance of our third-party contractors; the impact of laws, regulations and policies relating to real estate developers and the real estate industry in the countries in which we operate; our ability to obtain permits and licenses to carry on our business in compliance with applicable laws and regulations; competition from other real estate developers; the growth of the real estate industry in the markets in which we operate; fluctuations in general economic and business conditions in the markets in which we operate; and other risks outlined in our public filings with the Securities and Exchange Commission, including our annual report on Form 20-F for the year ended December 31, 2018. Except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statement is made.

 

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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

 

ICR, LLC

Investors:

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

 

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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 
   September 30,   June 30,   September 30, 
   2019   2019   2018 
   (unaudited)   (unaudited)   (unaudited) 
             
Total revenue   497,638    609,439    595,460 
                
Total costs of revenue   (374,134)   (450,224)   (446,284)
Gross profit   123,504    159,215    149,176 
                
Selling and distribution expenses   (21,067)   (20,633)   (12,282)
General and administrative expenses   (36,556)   (42,343)   (35,414)
                
Operating income   65,881    96,239    101,480 
                
Interest income   4,245    4,964    8,084 
Interest expense   (31,338)   (28,384)   (21,778)
Net realized gain/(loss) on short-term investments   3,297    (333)   2,119 
Unrealized (loss) /gain on short-term investments   (811)   838    (1,121)
Other income/(expense)   6,493    (867)   (443)
Net loss on debt extinguishment   (2,272)   (1,955)   - 
Exchange loss   (7,655)   (4,354)   (15,451)
Share of loss of equity investees   (2,142)   (1,702)   (2,620)
                
Income from operations before income taxes   35,698    64,446    70,270 
                
Income taxes   (30,256)   (44,621)   (46,415)
                
Net income   5,442    19,825    23,855 
Net income attributable to non-controlling interest   (1,298)   (9,171)   (3,729)
Net income attributable to Xinyuan Real Estate Co., Ltd. shareholders   4,144    10,654    20,126 
                
Earnings per ADS:               
Basic   0.07    0.19    0.32 
Diluted   0.07    0.19    0.31 
ADS used in computation:               
Basic   56,329    57,003    63,734 
Diluted   56,624    57,371    64,472 

 

 9 

 

 

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)

 

   Nine months ended 
   September 30,   September 30, 
   2019   2018 
   (unaudited)   (unaudited) 
         
Total revenue   1,575,930    1,125,389 
           
Total costs of revenue   (1,162,162)   (828,130)
Gross profit   413,768    297,259 
           
Selling and distribution expenses   (61,106)   (38,592)
General and administrative expenses   (115,543)   (95,894)
           
Operating income   237,119    162,773 
           
Interest income   13,294    21,534 
Interest expense   (84,028)   (76,266)
Net realized gain on short-term investments   4,135    3,830 
Unrealized gain/ (loss) on short-term investments   27    (2,058)
Other income/ (expense)   5,720    (1,272)
Net loss on debt extinguishment   (8,816)   - 
Exchange loss   (8,464)   (26,330)
Share of loss of equity investees   (5,444)   (6,769)
           
Income from operations before income taxes   153,543    75,442 
           
Income taxes   (110,086)   (73,602)
           
Net income   43,457    1,840 
Net (income)/ loss attributable to non-controlling interest   (9,050)   1,092 
Net income attributable to Xinyuan Real Estate Co., Ltd. shareholders   34,407    2,932 
           
Earnings per ADS:          
Basic   0.60    0.05 
Diluted   0.60    0.04 
ADS used in computation:          
Basic   57,404    64,443 
Diluted   57,758    65,489 

 

 10 

 

 

XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

   September 30,   June 30,   December 31, 
   2019   2019   2018 
   (unaudited)   (unaudited)   (audited) 
ASSETS               
Current assets               
Cash and cash equivalents   327,488    666,057    674,142 
Restricted cash   220,487    355,776    511,875 
Short-term investments   27    838    8,442 
Accounts receivable   61,812    73,158    64,130 
Other receivables   150,637    176,299    166,633 
Deposits for land use rights   -    22,546    42,254 
Other deposits and prepayments   321,107    297,863    257,288 
Advances to suppliers   52,649    51,550    46,983 
Real estate properties development completed   461,419    714,651    632,360 
Real estate properties under development   3,589,814    3,843,980    4,068,716 
Amounts due from related parties   317,151    313,532    216,184 
Amounts due from employees   2,656    2,955    1,694 
Other current assets   4,771    1,334    520 
                
Total current assets   5,510,018    6,520,539    6,691,221 
                
Restricted cash   140,392    -    - 
Real estate properties held for lease, net   428,737    297,565    302,764 
Property and equipment, net   43,394    35,725    38,114 
Long-term investment   578,733    552,312    564,340 
Deferred tax assets   205,633    206,511    230,453 
Deposits for land use rights   21,208    21,819    21,855 
Amounts due from related parties   24,587    24,632    26,122 
Contract assets   21,118    20,316    21,779 
Operating lease right-of-use assets   11,252    12,920    - 
Other assets   121,355    131,910    137,063 
                
TOTAL ASSETS   7,106,427    7,824,249    8,033,711 

 

 11 

 

 

XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

   September 30,   June 30,   December 31, 
   2019   2019   2018 
   (unaudited)   (unaudited)   (audited) 
LIABILITIES AND SHAREHOLDERS’ EQUITY               
Current liabilities               
Accounts payable and notes payable   782,573    833,073    790,631 
Short-term bank loans and other debt   28,383    35,901    43,711 
Customer deposits   1,367,391    1,573,859    1,921,851 
Income tax payable   165,489    165,737    213,273 
Other payables and accrued liabilities   297,603    340,145    341,108 
Payroll and welfare payable   18,717    16,529    33,752 
Current portion of long-term bank loans and other debt   981,182    1,207,191    1,647,918 
Current maturities of finance lease   6,322    6,504    6,562 
Current maturities of operating lease   5,556    5,816    - 
Mandatorily redeemable non-controlling interests   7,852    6,905    22,559 
Amounts due to related parties   31,088    32,224    48,502 
                
Total current liabilities   3,692,156    4,223,884    5,069,867 
                
Non-current liabilities               
Long-term bank loans   801,733    732,874    720,039 
Other long-term debt   1,400,396    1,619,007    1,040,455 
Deferred tax liabilities   403,125    393,541    370,509 
Unrecognized tax benefits   59,820    58,922    45,939 
Finance lease, net of current maturities   5,294    6,996    10,015 
Operating lease, net of current maturities   5,511    6,649    - 
Amounts due to related parties   28,764    28,879    31,242 
                
TOTAL LIABILITIES   6,396,799    7,070,752    7,288,066 
                
Shareholders’ equity               
Common shares   16    16    16 
Treasury shares   (108,582)   (104,233)   (87,639)
Additional paid-in capital   531,549    533,366    532,117 
Statutory reserves   166,501    166,501    166,496 
Retained earnings   115,593    117,904    99,502 
Accumulated other comprehensive loss   (66,261)   (32,957)   (30,122)
Total Xinyuan Real Estate Co., Ltd. shareholders’ equity   638,816    680,597    680,370 
Non-controlling interest   70,812    72,900    65,275 
Total equity   709,628    753,497    745,645 
                
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   7,106,427    7,824,249    8,033,711 

 

 12 

  

 

Exhibit 99.2

 

Xinyuan Real Estate Co., Ltd. Announces Third Quarterly Dividend for 2019

 

BEIJING, December 6, 2019 – 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 that its Board of Directors has declared a cash dividend for the third quarter of 2019 of US$0.05 per common share, or US$0.10 per American Depositary Share, which will be payable on January 16, 2020, to shareholders of record as of December 18, 2019.

 

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, the Company 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. The Company 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.

  

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

 

ICR, LLC

Investors:

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