BEIJING, Aug. 12, 2016 /PRNewswire/ -- Xinyuan Real Estate Co., Ltd. ('Xinyuan' or the 'Company') (NYSE: XIN), an NYSE-listed real estate developer and property manager primarily in China and recently in other countries, today announced its unaudited financial results for the second quarter ended June 30, 2016.

Second Quarter 2016 Highlights

  • Total second quarter revenue increased 36.9% to US$376.6 million from US$275.1 million in the second quarter of 2015 and increased 60.0% from US$235.4 million in the first quarter of 2016.
  • Contract sales increased 42.8% to US$474.4 million from US$332.3 million in the second quarter of 2015 and increased 69.7% from US$279.6 million in the first quarter of 2016.
  • Total gross floor area ('GFA') sales increased 57.6% to 344,600 square meters from 218,700 square meters sold in the second quarter of 2015 and increased 66.8% from 206,600 square meters sold in the first quarter of 2016.
  • Selling, General and Administrative ('SG&A') expenses as a percent of total revenue decreased to 10.9% from 13.0% in the second quarter of 2015 and decreased from 13.4% in the first quarter of 2016.
  • Net income was US$27.8 million, compared to US$20.2 million in the second quarter of 2015 and US$6.9 million in the first quarter of 2016.
  • Diluted net earnings per American Depositary Share ('ADS') attributable to shareholders were US$0.39, compared to US$0.27 in the second quarter of 2015 and US$0.09 in the first quarter of 2016.
  • The Company repurchased 1,387,008 ADSs at a total cost of approximately US$7.0 million in the second quarter of 2016.

Mr. Yong Zhang, Xinyuan's Chairman, stated, 'We are very pleased with our second quarter operational and financial results as sales activity across our projects remained healthy in the second quarter. Our performance was supported by ongoing positive market momentum which helped support unit demand and ASPs at the majority of our projects. Year-over-year contract sales increased 42.8% to US$474.4 million and GFA sales increased 57.6% to 344,600 square meters resulting in 37.6% growth in net income to US$27.8 million.

In the U.S., our Oosten project is performing well. We pre-sold approximately 73% of the total units at this project through the end of June. We have also expanded our presence in New York City through our new Hudson Garden project in midtown Manhattan announced earlier this year as well as our newly acquired development project in Flushing, Queens announced earlier this month. These three projects together total approximately one million square feet of gross buildable square feet in New York City marking Xinyuan's ascent into the New York metro real estate development market.

In addition to our core real estate development operations in China and the U.S., we are also developing real estate related products and services that will complement our core real estate development and diversify the Company's business operations. During the second quarter, the Company's property management arm was awarded and ranked #14 among the top 100 property management companies in China by the National Property Management Association in 2016. Lastly, we are pleased to raise our full year financial forecast and increase our quarterly dividend payment, which represents a 100% increase from the first quarter 2016 dividend payment,' concluded Mr. Zhang.

Second Quarter 2016 Financial Results

Contract Sales

Contract sales totaled US$474.4 million in the second quarter of 2016 compared to US$332.3 million in the second quarter of 2015 and US$279.6 million in the first quarter of 2016. The Company's GFA sales increased to 344,600 square meters in the second quarter of 2016 from 218,700 square meters in the second quarter of 2015 and 206,600 square meters in the first quarter of 2016. The average selling price ('ASP') per square meter sold was RMB8,992(US$1,377) in the second quarter of 2016 compared to RMB9,309(US$1,519) in the second quarter of 2015 and RMB8,839(US$1,354) in the first quarter of 2016.

The Company commenced pre-sales of one new project in the second quarter of 2016, Zhengzhou Fancy City II (South), which contributed 1.6% of total GFA sales.

Breakdown of GFA Sales and ASPs by Project

Project

Q2 2015

Q1 2016

Q2 2016

Unsold

GFA

ASP

GFA

ASP

GFA

ASP

GFA

(m000)

(RMB)

(m000)

(RMB)

(m000)

(RMB)

(m000)

Zhengzhou Xin City

9.4

15,992

0.1

4,393

-0.1

13,136

4.9

Zhengzhou Thriving Family

4.6

7,214

0.2

6,169

0.1

10,446

16.2

Xingyang Splendid I

3.9

5,291

0.5

5,249

2.1

5,281

41.6

Xingyang Splendid II

0.9

12,957

0.9

5,599

8.6

5,253

120.2

Kunshan Royal Palace

28.8

9,120

24.6

11,096

29.0

15,586

26.8

Suzhou Lake Royal Palace

22.8

9,293

15.2

16,718

10.6

21,575

29.3

Jinan Xinyuan Splendid

7.3

7,598

0.7

10,498

1.3

9,499

9.4

Jinan Royal Palace

18.9

6,318

13.3

5,985

32.0

6,874

257.0

Xuzhou Colorful City

8.7

8,449

2.0

11,256

2.9

9,895

57.7

Beijing Xindo Park

8.1

26,720

-

-

-0.3

31,469

13.9

Chengdu Thriving Family

12.6

5,647

10.6

5,292

30.7

5,639

105.6

Changsha Xinyuan Splendid

18.1

5,804

24.6

5,486

39.2

6,355

105.5

Sanya Yazhou Bay No.1

1.6

12,753

-

-

4.2

12,438

101.0

Xi'an Metropolitan

28.1

6,359

25.9

6,407

21.7

7,133

120.7

Shanghai Royal Palace

5.1

21,314

5.2

24,649

7.0

30,594

21.2

Zhengzhou Xindo Park

10.2

9,593

2.0

7,504

10.2

6,448

100.4

Jinan Xin Central

28.5

9,328

12.6

9,089

11.9

10,793

103.0

Henan Xin Central I

-

-

26.2

7,730

29.9

8,083

128.8

Zhengzhou Fancy City I

-

-

29.6

8,239

29.0

8,970

50.5

Zhengzhou Fancy City II
(South)

-

-

-

-

5.6

8,897

77.8

Tianjin Spring Royal Palace

-

-

12.8

9,032

68.5

7,429

179.0

Others

1.1

-

-0.4

-

0.5

-

4.4

Total

218.7

9,309

206.6

8,839

344.6

8,992

1,674.9

Revenue

In the second quarter of 2016, the Company's total revenue increased 36.9% to US$376.6 million from US$275.1 million in the second quarter of 2015 and increased 60.0% from US$235.4 million in the first quarter of 2016.

Gross Profit

Gross profit for the second quarter of 2016 was US$77.3 million, or 20.5% of revenue, compared to a gross profit of US$60.9 million, or 22.2% of revenue, in the second quarter of 2015 and a gross profit of US$48.9 million, or 20.8% of revenue, in the first quarter of 2016.

Selling, General and Administrative Expenses

SG&A expenses were US$41.0 million for the second quarter of 2016 compared to US$35.8 million for the second quarter of 2015 and US$31.5 million for the first quarter of 2016. As a percentage of total revenue, SG&A expenses were 10.9% compared to 13.0% in the second quarter of 2015 and 13.4% in the first quarter of 2016.

Net Income

Net income for the second quarter of 2016 was US$27.8 million, compared to US$20.2 million for the second quarter of 2015 and US$6.9 million for the first quarter of 2016. Net margin was 7.4%, compared to 7.3% in the second quarter of 2015 and 2.9% in the first quarter of 2016. Diluted earnings per ADS were US$0.39, compared to US$0.27 per ADS in the second quarter of 2015 and US$0.09 per ADS in the first quarter of 2016.

Balance Sheet

As of June 30, 2016, the Company's cash and cash equivalents (including restricted cash) decreased to US$899.0 million from US$1,028.6 million as of March 31, 2016. Total debt outstanding was US$1,978.9 million, a decrease of US$170.7 million, compared to US$2,149.6 million at the end of the first quarter of 2016. The balance of the Company's real estate property under development at the end of the second quarter of 2016 was US$2,082.7 million, compared to US$2,042.7 million at the end of the first quarter of 2016.

Real Estate Project Status in China

Below is a summary table of projects that were active and available for sale in the second quarter of 2016.

Project

GFA

Contract Sales

Project
Cost %
Complete

(m 000)

(US$ millions)

Total
Active
Project

Sold to
date

Total
Active
Project

Sales to
date

% Sold

Zhengzhou Xin City

211.1

206.2

362.2

329.4

90.9%

94.5%

Zhengzhou Thriving Family

131.5

115.3

154.3

127.6

82.7%

85.1%

Xingyang Splendid I

117.3

75.7

85.4

59.3

69.4%

75.8%

Xingyang Splendid II

136.9

16.7

143.7

16.5

11.5%

50.0%

Kunshan Royal Palace

279.9

253.1

480.5

392.9

81.8%

91.9%

Suzhou Lake Royal Palace

169.6

140.3

379.7

253.4

66.7%

97.3%

Jinan Xinyuan Splendid

572.2

562.8

758.2

751.7

99.1%

99.4%

Jinan Royal Palace

448.9

191.9

671.2

187.8

28.0%

63.1%

Xuzhou Colorful City

130.2

72.5

197.8

101.3

51.2%

77.3%

Beijing Xindo Park

133.0

119.1

459.9

367.4

79.9%

96.9%

Chengdu Thriving Family

211.4

105.8

381.2

88.7

23.3%

84.9%

Changsha Xinyuan Splendid

252.7

147.2

359.0

128.8

35.9%

76.2%

Sanya Yazhou Bay No.1

116.8

15.8

303.1

32.3

10.7%

68.1%

Xi'an Metropolitan

290.5

169.8

483.4

167.6

34.7%

68.5%

Shanghai Royal Palace

57.8

36.6

294.8

132.4

44.9%

96.0%

Zhengzhou Xindo Park

144.4

44.0

202.3

54.7

27.0%

55.3%

Jinan Xin Central

194.7

91.7

366.0

135.2

36.9%

63.1%

Henan Xin Central I

262.2

133.4

366.2

157.7

43.1%

56.8%

Zhengzhou Fancy City I

166.7

116.2

240.1

147.6

61.5%

52.2%

Zhengzhou Fancy City II (South)

83.4

5.6

136.7

7.7

5.6%

42.6%

Tianjin Spring Royal Palace

274.3

95.3

399.4

114.1

28.6%

31.3%

Others remaining GFA

4.4

-

-

-

-

-

Total active projects

4,389.9

2,715.0

7,225.1

3,754.1

52.0%

76.1%

As of June 30, 2016, the Company's total sellable GFA was approximately 2,500,800 square meters for active projects and under planning stage projects in China. Below is a summary of all of the Company's planning stage projects:

Unsold GFA

Pre sales

Targeted

(m 000)

Zhengzhou Fancy City II (North)

119.6

Q3 2016

Zhengzhou International New City I (Zhengzhou Shilipu project)

362.7

Q3 2016

Kunshan Xindo Park

95.0

Q3 2016

Xingyang Splendid III

37.4

Q4 2016

Beijing Liyuan project

102.3

Q4 2016

Henan Xin Central II

108.9

Q4 2016

Total projects under planning

825.9

Total active projects

1,674.9

Total all Xinyuan projects in China

2,500.8

Real Estate Project Update in the U.S.

As of the end of the second quarter, the Company had pre-sold approximately 73% of the total units at its Brooklyn-based Oosten project.

The Company's second New York project, announced in January 2016, and located in midtown Manhattan, is in the planning and design stage. The Company has recently submitted its official building permit application to the New York City Department of Buildings.

In August 2016, Xinyuan announced a new land acquisition in Flushing, Queens, New York City. Xinyuan estimates construction to begin on this property once the Company's Oosten project construction is completed.

Business Outlook

For the full year 2016, the Company is raising its previously announced financial forecast and now expects full year contract sales to grow approximately 30% and net income to grow approximately 50% compared to 2015.

Conference Call Information

The Company will hold a conference call at 8:00 am ET on August 12, 2016 to discuss second quarter 2016 results. Listeners may access the call by dialing:

US:

1-888-637-7734

International:

1-913-312-0975

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 August 19, 2016 by dialing:

US:

1-877-870-5176

International:

1-858-384-5517

Access code:

2411439

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, 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, 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. 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.

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, 2015. 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.
Ms. May Shen
Investor Relations Director
Tel: +86 (10) 8588-9376
Email: irteam@xyre.com

ICR, LLC
In U.S.: +1-646-308-1472
In China: +86 (10) 6583-7511
Email: William.zima@icrinc.com

Media: 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

June 30,

March 31,

June 30,

2016

2016

2015

(unaudited)

(unaudited)

(unaudited)

Total revenue

376,623

235,384

275,066

Total costs of revenue

(299,317)

(186,490)

(214,122)

Gross profit

77,306

48,894

60,944

Selling and distribution expenses

(8,801)

(8,121)

(11,380)

General and administrative expenses

(32,197)

(23,408)

(24,395)

Operating income

36,308

17,365

25,169

Interest income

4,223

8,471

6,463

Interest expense

(5,063)

(5,000)

(4,492)

Net realized gain on short-term investments

807

109

645

Unrealized (loss)/gain on short-term investments

(153)

920

(3)

Other income/(expense)

4,101

7

(36)

Exchange gains/(loss)

182

54

(31)

Share of gain/(loss) of equity investees

(641)

42

566

Income from operations before income taxes

39,764

21,968

28,281

Income taxes

(11,960)

(15,073)

(8,115)

Net income

27,804

6,895

20,166

Net (income)/loss attributable to non-controlling interest

(1,278)

(776)

15

Net income attributable to Xinyuan Real Estate Co., Ltd.
shareholders

26,526

6,119

20,181

Earnings per ADS:

Basic

0.40

0.09

0.27

Diluted

0.39

0.09

0.27

ADS used in computation:

Basic

66,005

68,613

73,522

Diluted

68,164

71,345

73,725

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)

Six months ended

June 30,

June 30,

2016

2015

(unaudited)

(unaudited)

Total revenue

612,007

441,784

Total costs of revenue

(485,807)

(332,859)

Gross profit

126,200

108,925

Selling and distribution expenses

(16,922)

(18,647)

General and administrative expenses

(55,605)

(44,793)

Operating income

53,673

45,485

Interest income

12,694

11,911

Interest expense

(10,063)

(9,951)

Net realized gain on short-term investments

916

762

Unrealized gain on short-term investments

767

19

Other income

4,108

4,722

Exchange gains/(loss)

236

(5)

Share of gain of equity investees

(599)

478

Income from operations before income taxes

61,732

53,421

Income taxes

(27,033)

(28,747)

Net income

34,699

24,674

Net income attributable to non-controlling interest

(2,054)

-

Net income attributable to Xinyuan Real Estate Co., Ltd. shareholders

32,645

24,674

Earnings per ADS:

Basic

0.49

0.34

Diluted

0.47

0.34

ADS used in computation:

Basic

67,309

73,518

Diluted

69,492

73,619

XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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

June 30,

March 31,

December 31,

2016

2016

2015

(unaudited)

(unaudited)

(audited)

ASSETS

Current assets

Cash and cash equivalents

416,829

454,313

387,528

Restricted cash

482,125

574,295

363,137

Short-term investments

32,398

13,041

1,245

Accounts receivable

17,228

41,501

42,040

Other receivables

28,331

146,732

147,652

Deposits for land use rights

49,765

46,431

46,199

Other deposits and prepayments

261,492

186,920

254,048

Advances to suppliers

55,850

55,383

50,534

Real estate properties development completed

21,987

30,314

24,077

Real estate properties under development

2,082,680

2,042,690

1,887,322

Amounts due from related parties

45,591

21,470

58,630

Amounts due from employees

1,872

1,804

351

Other current assets

115

238

201

Total current assets

3,496,263

3,615,132

3,262,964

Real estate properties held for lease, net

68,664

71,251

71,133

Property and equipment, net

36,778

38,633

39,323

Other long-term investment

31,108

31,340

31,108

Investment in joint ventures

11,009

7,639

6,125

Deferred tax assets

28,807

28,505

15,489

Deposits for land use rights

78,417

153,269

107,798

Other assets

13,310

15,534

14,943

TOTAL ASSETS

3,764,356

3,961,303

3,548,883

XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

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

June 30,

March 31,

December 31,

2016

2016

2015

(unaudited)

(unaudited)

(audited)

LIABILITIES AND

SHAREHOLDERS' EQUITY

Current liabilities

Accounts payable and notes payable

457,770

441,164

471,176

Short-term bank loans and other debt

226,679

308,897

222,226

Customer deposits

63,833

57,021

64,452

Income tax payable

98,037

96,010

106,034

Deferred tax liabilities

44,369

72,995

57,692

Other payables and accrued liabilities

105,787

139,703

106,127

Payroll and welfare payable

8,788

7,333

22,966

Amounts due to related parties

15,080

-

-

Current portion of long-term bank loans and other debt

809,094

851,524

594,834

Current maturities of capital lease obligations

3,002

3,081

3,066

Mandatorily redeemable non-controlling interests

1,206

2,786

2,310

Total current liabilities

1,833,645

1,980,514

1,650,883

Noncurrent liabilities

Long-term bank loans

51,022

73,516

13,860

Other long-term debt

892,098

915,684

897,504

Deferred tax liabilities

20,711

17,817

13,500

Unrecognized tax benefits

18,081

17,976

17,842

Capital lease obligations, net of current maturities

16,549

17,484

18,111

Mandatorily redeemable non-controlling interests

452

1,238

1,232

TOTAL LIABILITIES

2,832,558

3,024,229

2,612,932

Shareholders' equity

Common shares

16

16

16

Treasury shares

(45,262)

(38,216)

(24,046)

Additional paid-in capital

533,955

533,881

531,233

Statutory reserves

79,255

79,927

80,050

Retained earnings

344,197

320,374

317,765

Accumulated other comprehensive income

11,516

38,456

30,952

Total Xinyuan Real Estate Co., Ltd. shareholders' equity

923,677

934,438

935,970

Non-controlling interest

8,121

2,636

(19)

Total equity

931,798

937,074

935,951

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

3,764,356

3,961,303

3,548,883

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/xinyuan-real-estate-co-ltd-announces-second-quarter-2016-financial-results-300312871.html

SOURCE Xinyuan Real Estate Co., Ltd.

Xinyuan Real Estate Co. Ltd. published this content on 12 August 2016 and is solely responsible for the information contained herein.
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