Third Quarter 2015 Highlights
- Total third quarter revenue increased by 88.9% to
US$309.0 million fromUS$163.6 million in the third quarter of 2014 and increased by 12.3% fromUS$275.1 million in the second quarter of 2015. -
Contract sales increased by 84.7% to
US$309.7 million fromUS$167.7 million in the third quarter of 2014 and decreased by 6.8% fromUS$332.3 million in the second quarter of 2015. - Total gross floor area ('GFA') sales increased by 132.6% to 233,300 square meters from 100,300 square meters sold in the third quarter of 2014 and increased by 6.7% from 218,700 square meters sold in the second quarter of 2015.
- Selling, General and Administrative ('SG&A') expenses as a percent of total revenue decreased to 15.8% from 21.8% in the third quarter of 2014 and increased from 13.0% in the second quarter of 2015.
-
Net income increased by 609.4% to
US$22.7 million fromUS$3.2 million in the third quarter of 2014 and increased by 12.4% fromUS$20.2 million in the second quarter of 2015. -
Diluted net earnings per American Depositary Share ('ADS') attributable to shareholders increased to
US$0.31 fromUS$0.04 in the third quarter of 2014 andUS$0.27 in the second quarter of 2015.
Mr.
'Looking ahead, we remain committed to delivering value to our shareholders. We intend to continue to pay quarterly cash dividends the remainder of this year and execute our share repurchase program as appropriate based on valuation,' concluded Mr. Zhang.
Third Quarter 2015 Financial Results
Contract Sales
Contract sales totaled
The Company commenced pre-sales of one new project in the third quarter of 2015, Henan Xin Central, which contributed 10.9% of total GFA sales.
Breakdown of GFA Sales and ASPs by Project
Project | Q3 2014 | Q2 2015 | Q3 2015 | Unsold | |||
GFA | ASP | GFA | ASP | GFA | ASP | GFA | |
(m2000) | (RMB) | (m2000) | (RMB) | (m2000) | (RMB) | (m2000) | |
Zhengzhou Xin City | 8.4 | 11,484 | 9.4 | 15,992 | 0.1 | 3,927 | 18.9 |
Zhengzhou Thriving Family | 27.6 | 7,240 | 4.6 | 7,214 | - | 3,401 | 16.6 |
Xingyang Splendid I | 6.5 | 5,366 | 3.9 | 5,291 | 4.2 | 5,149 | 58.0 |
Xingyang Splendid II | - | - | 0.9 | 12,957 | 0.2 | 9,500 | 135.0 |
Kunshan Royal Palace | 6.6 | 8,875 | 28.8 | 9,120 | 36.4 | 9,148 | 115.4 |
Suzhou Xin City | 5.5 | 10,659 | 1.3 | 13,253 | 0.7 | 13,052 | 0.4 |
Suzhou Lake Royal Palace | 2.0 | 11,095 | 22.8 | 9,293 | 39.0 | 9,446 | 83.8 |
Jinan Xinyuan Splendid | 20.1 | 9,881 | 7.3 | 7,598 | 3.3 | 7,986 | 12.8 |
Jinan Royal Palace | 18.1 | 6,428 | 18.9 | 6,318 | 26.2 | 6,294 | 346.7 |
Xuzhou Colorful City | -0.3 | 8,863 | 8.7 | 8,449 | 5.1 | 9,424 | 63.7 |
Beijing Xindo Park | 5.3 | 27,233 | 8.1 | 26,720 | 0.6 | 20,439 | 43.9 |
Chengdu Thriving Family | 0.4 | 5,296 | 12.6 | 5,647 | 9.7 | 5,401 | 164.8 |
Changsha Xinyuan Splendid | - | - | 18.1 | 5,804 | 14.1 | 5,611 | 202.3 |
Sanya Yazhou Bay No.1 | - | - | 1.6 | 12,753 | 0.1 | 12,194 | 106.7 |
Xi'an Metropolitan* | - | - | 28.1 | 6,359 | 35.8 | 6,350 | 217.1 |
Shanghai Royal Palace | - | - | 5.1 | 21,314 | 5.4 | 21,606 | 41.8 |
Zhengzhou Xindo Park | - | - | 10.2 | 9,593 | 4.8 | 9,584 | 129.5 |
Jinan Xin Central | - | - | 28.5 | 9,328 | 22.3 | 9,019 | 146.4 |
Henan Xin Central I (Zhengzhou Nangangliu | - | - | - | - | 25.4 | 7,493 | 237.4 |
Others | 0.1 | - | -0.2 | - | -0.1 | - | 4.6 |
Total | 100.3 | 10,272 | 218.7 | 9,309 | 233.3 | 8,196 | 2,145.8 |
* The Company owns 51% equity interest in a joint venture, Shaanxi Zhongmao Economy Development Co., Ltd. which develops Xi'an Metropolitan. The Company accounts for its investment under the equity method. |
Revenue
In the third quarter of 2015, the Company's total revenue increased by 88.9% to
Gross Profit
Gross profit for the third quarter of 2015 was
Selling, General and Administrative Expenses
SG&A expenses were
Net Income
Net income for the third quarter of 2015 increased by 609.4% to
Balance Sheet
As of
Real Estate Project Status in
Below is a summary table of projects that were active and available for sale in the third quarter of 2015.
Project | GFA | Contract Sales | Project Cost % Complete | ||||
(m2 000) | (US$ millions) | ||||||
Total Active Project | Sold to date | Total Active Project | Sales to date | % Sold | |||
Zhengzhou Xin City | 224.3 | 205.4 | 386.9 | 345.7 | 89.4% | 89.3% | |
Zhengzhou Thriving Family | 131.5 | 114.9 | 163.0 | 134.5 | 82.5% | 68.9% | |
Xingyang Splendid I | 118.8 | 60.8 | 90.9 | 50.5 | 55.6% | 62.3% | |
Xingyang Splendid II | 137.8 | 2.8 | 136.0 | 6.0 | 4.4% | 35.3% | |
Kunshan Royal Palace | 280.3 | 164.9 | 502.0 | 245.1 | 48.8% | 75.8% | |
Suzhou Xin City | 127.2 | 126.8 | 185.7 | 184.6 | 99.4% | 99.3% | |
Suzhou Lake Royal Palace | 169.6 | 85.8 | 363.1 | 127.0 | 35.0% | 86.1% | |
Jinan Xinyuan Splendid | 571.9 | 559.1 | 802.0 | 789.7 | 98.5% | 98.2% | |
Jinan Royal Palace | 449.2 | 102.5 | 691.7 | 105.3 | 15.2% | 54.4% | |
Xuzhou Colorful City | 128.7 | 65.0 | 206.9 | 94.7 | 45.8% | 69.6% | |
Beijing Xindo Park | 131.9 | 88.0 | 480.6 | 324.4 | 67.5% | 98.4% | |
Chengdu Thriving Family | 211.9 | 47.1 | 353.2 | 42.3 | 12.0% | 79.2% | |
Changsha Xinyuan Splendid | 252.7 | 50.4 | 363.9 | 45.0 | 12.4% | 60.9% | |
Sanya Yazhou Bay No.1 | 116.9 | 10.2 | 302.0 | 23.4 | 7.7% | 60.5% | |
Xi'an Metropolitan* | 296.6 | 79.5 | 489.6 | 81.7 | 16.7% | 54.2% | |
Shanghai Royal Palace | 57.8 | 16.0 | 299.1 | 55.0 | 18.4% | 84.8% | |
Zhengzhou Xindo Park | 144.5 | 15.0 | 203.2 | 23.3 | 11.5% | 44.5% | |
Jinan Xin Central | 197.2 | 50.8 | 398.7 | 75.7 | 19.0% | 52.5% | |
Henan Xin Central I (Zhengzhou | 262.8 | 25.4 | 374.6 | 30.9 | 8.2% | 42.7% | |
Others remaining GFA | 4.6 | - | - | - | - | - | |
Total active projects | 4,016.2 | 1,870.4 | 6,793.1 | 2,784.8 | 41.0% | 71.8% |
* The Company owns 51% equity interest in a joint venture, Shaanxi Zhongmao Economy Development Co., Ltd. which develops Xi'an Metropolitan. The Company accounts for its investment under the equity method. |
As of
Unsold GFA | Pre sales Scheduled | ||
(m2 000) | |||
Tianjin Spring Royal Palace (Newly Acquired Tianjin Land) | 263.5 | Q4 2015 | |
Zhengzhou Fancy City (Zhengzhou Jiaotong college project) | 166.2 | Q4 2015 | |
Henan Xin Central II (Zhengzhou Nangangliu project) | 108.9 | Q1 2016 | |
Xingyang Splendid III | 37.4 | Q1 2016 | |
Total projects under planning | 576.0 | ||
Total active projects | 2,145.8 | ||
Total all Xinyuan projects in China | 2,721.8 |
Real Estate Project Update in the U.S. and Other Initiatives
During the third quarter of 2015, the Company continued to make good progress in its Oosten project based in
The Company's property management arm was awarded and ranked #16 among the top 100 property management companies in
Business Outlook
For the full year 2015, based on the third quarter results, the Company reiterates its expectation of full year contract sales and net income growth of approximately 30% compared to 2014.
Conference Call Information
The Company will hold a conference call at
US: | 1-888-820-9410 |
International: | 1-913-312-6694 |
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
US: | 1-877-870-5176 |
International: | 1-858-384-5517 |
Access code: | 4595189 |
About
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
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
Ms.
Investor Relations Director
Tel: +86 (10) 8588-9376
Email: irteam@xyre.com
In U.S.: +1-646-308-1472
In
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 | ||||||||||||
September 30, | June 30, | September 30, | ||||||||||
2015 | 2015 | 2014 | ||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||
Total revenue | 308,954 | 275,066 | 163,612 | |||||||||
Total costs of revenue | (226,288) | (214,122) | (120,154) | |||||||||
Gross profit | 82,666 | 60,944 | 43,458 | |||||||||
Selling and distribution expenses | (13,163) | (11,380) | (8,495) | |||||||||
General and administrative expenses | (35,673) | (24,395) | (27,145) | |||||||||
Operating income | 33,830 | 25,169 | 7,818 | |||||||||
Interest income | 6,333 | 6,463 | 1,907 | |||||||||
Interest expense | (5,021) | (4,492) | (5,954) | |||||||||
Net realized gain on short-term investments | 80 | 645 | (497) | |||||||||
Unrealized gain/(loss) on short-term investments | 17 | (3) | 2,195 | |||||||||
Other income | (35) | (36) | - | |||||||||
Exchange gains/(losses) | 269 | (31) | 50 | |||||||||
Share of gain/(loss) of an equity investee | 974 | 566 | (227) | |||||||||
Income from operations before income taxes | 36,447 | 28,281 | 5,292 | |||||||||
Income taxes | (13,756) | (8,115) | (2,110) | |||||||||
Net income | 22,691 | 20,166 | 3,182 | |||||||||
Net loss attributable to non-controlling interest | - | 15 | - | |||||||||
Net income attributable to Xinyuan Real Estate Co., Ltd. | 22,691 | 20,181 | 3,182 | |||||||||
Earnings per ADS: | ||||||||||||
Basic | 0.31 | 0.27 | 0.04 | |||||||||
Diluted | 0.31 | 0.27 | 0.04 | |||||||||
ADS used in computation: | ||||||||||||
Basic | 73,434 | 73,522 | 75,325 | |||||||||
Diluted | 73,499 | 73,725 | 88,165 |
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, | |||||||
2015 | 2014 | |||||||
(unaudited) | (unaudited) | |||||||
Total revenue | 750,738 | 556,848 | ||||||
Total costs of revenue | (559,147) | (410,762) | ||||||
Gross profit | 191,591 | 146,086 | ||||||
Selling and distribution expenses | (31,810) | (22,133) | ||||||
General and administrative expenses | (80,466) | (69,897) | ||||||
Operating income | 79,315 | 54,056 | ||||||
Interest income | 18,244 | 5,865 | ||||||
Interest expense | (14,972) | (22,012) | ||||||
Net realized gain on short-term investments | 842 | - | ||||||
Unrealized gain on short-term investments | 36 | 2,105 | ||||||
Other income | 4,687 | 3,109 | ||||||
Exchange gains | 264 | 50 | ||||||
Share of gain/(loss) of an equity investee | 1,452 | (645) | ||||||
Income from operations before income taxes | 89,868 | 42,528 | ||||||
Income taxes | (42,503) | (17,873) | ||||||
Net income | 47,365 | 24,655 | ||||||
Net income attributable to non-controlling interest | - | - | ||||||
Net income attributable to Xinyuan Real Estate Co., Ltd. shareholders | 47,365 | 24,655 | ||||||
Earnings per ADS: | ||||||||
Basic | 0.64 | 0.32 | ||||||
Diluted | 0.64 | 0.30 | ||||||
ADS used in computation: | ||||||||
Basic | 73,490 | 76,481 | ||||||
Diluted | 73,579 | 89,440 |
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, | ||||||||||
2015 | 2015 | 2014 | ||||||||||
(unaudited) | (unaudited) | (audited) | ||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 218,765 | 159,844 | 140,495 | |||||||||
Restricted cash | 337,117 | 281,585 | 368,874 | |||||||||
Short-term investment | 6,397 | 7,679 | 6,008 | |||||||||
Accounts receivable | 35,832 | 26,238 | 15,457 | |||||||||
Other receivables | 153,774 | 156,099 | 134,819 | |||||||||
Restricted deposit | 66,716 | 69,419 | 69,358 | |||||||||
Deposits for land use rights | 144,625 | 160,298 | 299,739 | |||||||||
Other deposits and prepayments | 233,378 | 218,385 | 152,290 | |||||||||
Advances to suppliers | 56,836 | 52,323 | 29,787 | |||||||||
Real estate property held for sale | - | - | 1,185 | |||||||||
Real estate property development completed | 27,273 | 11,518 | 12,309 | |||||||||
Real estate property under development | 2,012,161 | 2,097,123 | 1,714,575 | |||||||||
Amounts due from related parties | 71,245 | 81,998 | 125,374 | |||||||||
Amounts due from employees | 2,241 | 1,638 | 50 | |||||||||
Other current assets | 682 | 236 | 139 | |||||||||
Total current assets | 3,367,042 | 3,324,383 | 3,070,459 | |||||||||
Real estate properties held for lease, net | 74,439 | 77,310 | 69,224 | |||||||||
Property and equipment, net | 41,703 | 44,231 | 46,476 | |||||||||
Other long-term investment | 31,755 | 32,956 | 242 | |||||||||
Investment in joint venture | 5,429 | 4,709 | 4,226 | |||||||||
Deferred tax assets | 13,504 | 13,975 | 13,642 | |||||||||
Deferred charges | 14,197 | 16,359 | 16,677 | |||||||||
Deposits for land use rights | 3,144 | 3,271 | - | |||||||||
Other assets | 11,180 | 11,027 | 10,580 | |||||||||
TOTAL ASSETS | 3,562,393 | 3,528,221 | 3,231,526 |
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, | ||||||||||
2015 | 2015 | 2014 | ||||||||||
(unaudited) | (unaudited) | (audited) | ||||||||||
LIABILITIES AND | ||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | 408,199 | 366,097 | 351,506 | |||||||||
Short-term bank loans and other debt | 235,966 | 204,925 | 293,450 | |||||||||
Customer deposits | 80,522 | 152,586 | 107,163 | |||||||||
Income tax payable | 60,989 | 61,885 | 62,429 | |||||||||
Deferred tax liabilities | 108,581 | 108,704 | 91,202 | |||||||||
Other payables and accrued liabilities | 98,141 | 77,281 | 74,089 | |||||||||
Payroll and welfare payable | 14,212 | 3,594 | 18,457 | |||||||||
Current portion of long-term bank loans and other debt | 743,520 | 687,025 | 586,841 | |||||||||
Current maturities of capital lease obligations | 3,129 | 3,256 | 3,010 | |||||||||
Redeemable non-controlling interests | - | 4,089 | 4,486 | |||||||||
Total current liabilities | 1,753,259 | 1,669,442 | 1,592,633 | |||||||||
Non- current liabilities | ||||||||||||
Long-term bank loans | 28,296 | 84,598 | 52,296 | |||||||||
Other long term debt | 785,318 | 745,257 | 576,204 | |||||||||
Deferred tax liabilities | 16,637 | 14,404 | 9,825 | |||||||||
Unrecognized tax benefits | 10,948 | 11,259 | 14,005 | |||||||||
Capital lease obligations, net of current maturities | 20,159 | 21,632 | 23,500 | |||||||||
Redeemable non-controlling interests | 3,616 | 3,762 | 2,451 | |||||||||
TOTAL LIABILITIES | 2,618,233 | 2,550,354 | 2,270,914 | |||||||||
Shareholders' equity | ||||||||||||
Common shares | 16 | 16 | 16 | |||||||||
Treasury shares | (22,384) | (20,696) | (20,696) | |||||||||
Additional paid-in capital | 529,978 | 530,360 | 530,670 | |||||||||
Statutory reserves | 72,821 | 72,821 | 72,829 | |||||||||
Retained earnings | 309,566 | 290,561 | 273,255 | |||||||||
Accumulated other comprehensive income | 54,182 | 104,825 | 104,557 | |||||||||
Total Xinyuan Real Estate Co., Ltd. shareholders' equity | 944,179 | 977,887 | 960,631 | |||||||||
Non-controlling interest | (19) | (20) | (19) | |||||||||
Total equity | 944,160 | 977,867 | 960,612 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 3,562,393 | 3,528,221 | 3,231,526 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/xinyuan-real-estate-co-ltd-announces-third-quarter-2015-financial-results-300178342.html
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