Xinyuan Real Estate Co., Ltd. Announces Fourth Quarter and Full Year 2015 Financial Results

FY15 Contract Sales Up 34.5% Year-over-Year to US$1.40 billion

FY15 Net Income Up 37.1% Year-over-Year to US$66.5million

01 Mar, 2016, 05:20 ET from Xinyuan Real Estate Co., Ltd.

BEIJING, March 1, 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 fourth quarter and full year ended December 31, 2015.

Fourth Quarter 2015 Highlights

  • Total fourth quarter revenue increased 13.9% to US$413.6 million from US$362.9 million in the fourth quarter of 2014 and increased 33.9% from US$309.0 million in the third quarter of 2015.
  • Contract sales increased 42.6% to US$574.2 million from US$402.6 million in the fourth quarter of 2014 and increased 85.4% from US$309.7 million in the third quarter of 2015.
  • Total gross floor area ("GFA") sales increased 66.9% to 420,900 square meters from 252,200 square meters sold in the fourth quarter of 2014 and increased 80.4% from 233,300 square meters sold in the third quarter of 2015.
  • Selling, General and Administrative ("SG&A") expenses as a percent of total revenue decreased to 13.3% from 14.6% in the fourth quarter of 2014 and decreased from 15.8% in the third quarter of 2015.
  • Net income was US$19.1 million, compared to US$23.8 million in the fourth quarter of 2014 and US$22.7 million in the third quarter of 2015.
  • Diluted net earnings per American Depositary Share ("ADS") attributable to shareholders were US$0.26, compared to US$0.30 in the fourth quarter of 2014 and US$0.31 in the third quarter of 2015.
  • The Company repurchased 495,759 ADSs at a total cost of approximately US$1.7 million in the fourth quarter of 2015.

Full Year 2015 Highlights

  • For the year ended December 31, 2015, total revenues increased 26.6% to US$1,164.3 million from US$919.7 million in 2014. GFA sales increased 56.7% to 986,100 square meters from 629,100 square meters in 2014. Contract sales increased 34.5% to US$1,401.1 million from US$1,041.6 million in 2014.
  • Gross profit was US$273.0 million, or 23.4% of revenue in 2015, compared to a gross profit of US$242.2 million, or 26.3% of revenue in 2014. The Company commenced presales on six projects in 2015.
  • SG&A expenses were US$167.5 million, or 14.4% of revenue in 2015, compared to US$145.1 million, or 15.8% of revenue in 2014.
  • Net income was US$66.5 million in 2015 compared to US$48.5 million in 2014. Diluted earnings per ADS were US$0.91 in 2015 compared to US$0.58 per ADS in 2014.

Mr. Yong Zhang, Xinyuan's Chairman, stated, "We are pleased with our full year 2015 results, as contract sales were up 34.5% to US$1.40 billion and net income increased 37.1% to US$66.5 million. We experienced strong sequential and year-over-year GFA sales. Our improvement in GFA sales is indicative of improving market conditions."

"Recent local and national government policies which include easing monetary policy, relaxed home purchase restrictions and lower down payment requirements, continued to have a favorable impact on our unit sales activity in the fourth quarter. There were twenty two active development projects during 2015, including our US-based Oosten project, which represents a record number of projects for Xinyuan. We are also proud of our efforts to improve our balance sheet in the fourth quarter, highlighted by our increased cash position, lower debt level and improved coupon rates associated with our outstanding debt. We were active with our dividend program and repurchase activity throughout the year and remain committed to these programs for 2016."

"As we carefully monitor industry trends for 2016, we remain optimistic about the projects in our existing markets. While China's real estate market remains uncertain, we expect the favorable government policies to introduce new buyers to our projects. We also intend to explore new land acquisitions both in China and in overseas markets. Overall, we believe 2016 will represent another year of contract sales and net income growth for Xinyuan."

Fourth Quarter 2015 Financial Results

Contract Sales

Contract sales totaled US$574.2 million in the fourth quarter of 2015 compared to US$402.6 million in the fourth quarter of 2014 and US$309.7 million in the third quarter of 2015. The Company's GFA sales increased to 420,900 square meters in the fourth quarter of 2015 from 252,200 square meters in the fourth quarter of 2014 and 233,300 square meters in the third quarter of 2015. The average selling price ("ASP") per square meter sold was RMB8,493 (US$1,364) in the fourth quarter of 2015 compared to RMB9,806 (US$1,596) in the fourth quarter of 2014 and RMB8,196 (US$1,328) in the third quarter of 2015.

The Company commenced pre-sales of two new projects in the fourth quarter of 2015, Zhengzhou Fancy City, which contributed 13.7% of total GFA sales, and Tianjin Spring Royal Palace, which contributed 3.3% of total GFA sales.

Breakdown of GFA Sales and ASPs by Project

Project

Q4 2014

Q3 2015

Q4 2015

Unsold

GFA

ASP

GFA

ASP

GFA

ASP

GFA

(m2000)

(RMB)

(m2000)

(RMB)

(m2000)

(RMB)

(m2000)

Zhengzhou Royal Palace

3.8

7,502

-

-

-

-

-

Zhengzhou Xin City

27.9

14,206

0.1

3,927

0.8

12,908

4.9

Zhengzhou Thriving Family

41.5

7,229

-

3,401

0.1

6,054

16.5

Xingyang Splendid I

16.8

4,831

4.2

5,149

12.2

5,050

45.8

Xingyang Splendid II

1.7

13,401

0.2

9,500

4.4

4,983

129.7

Kunshan Royal Palace

23.0

8,843

36.4

9,148

34.5

9,465

80.5

Suzhou Xin City

5.8

10,312

0.7

13,052

0.1

372

0.3

Suzhou Lake Royal Palace

12.1

8,299

39.0

9,446

28.7

13,482

55.2

Jinan Xinyuan Splendid

20.9

9,595

3.3

7,986

1.8

8,122

11.3

Jinan Royal Palace

23.6

6,348

26.2

6,294

44.1

6,270

305.8

Xuzhou Colorful City

9.6

8,700

5.1

9,424

2.5

10,307

62.6

Beijing Xindo Park

19.8

22,889

0.6

20,439

31.6

12,674

13.4

Chengdu Thriving Family

15.5

5,498

9.7

5,401

17.3

5,146

147.0

Changsha Xinyuan Splendid

10.6

5,139

14.1

5,611

33.1

5,421

169.2

Sanya Yazhou Bay No.1

6.5

14,750

0.1

12,194

1.7

10,915

110.2

Xi'an Metropolitan*

6.2

6,362

35.8

6,350

42.8

6,305

174.3

Shanghai Royal Palace

-

-

5.4

21,606

8.5

21,913

33.4

Zhengzhou Xindo Park

-

-

4.8

9,584

16.9

7,871

113.3

Jinan Xin Central

-

-

22.3

9,019

16.4

10,547

127.4

Henan Xin Central I

(Zhengzhou Nangangliu project)

-

-

25.4

7,493

52.0

7,621

185.4

Zhengzhou Fancy City

 

-

-

-

-

57.6

7,981

109.1

Tianjin Spring Royal Palace

-

-

-

-

14.0

8,599

260.2

Others

6.9

-

-0.1

-

-0.2

-

4.8

Total

252.2

9,806

233.3

8,196

420.9

8,493

2,160.3

* The Company owns 51% equity interest in a joint venture, Shaanxi Zhongmao Economy Development Co., Ltd. which develops Xi'an Metropolitan project. The Company accounts for its investment under the equity method.

Revenue

In the fourth quarter of 2015, the Company's total revenue increased 13.9% to US$413.6 million from US$362.9 million in the fourth quarter of 2014 and increased 33.9% from US$309.0 million in the third quarter of 2015.

Gross Profit

Gross profit for the fourth quarter of 2015 was US$81.4 million, or 19.7% of revenue, compared to a gross profit of US$96.1 million, or 26.5% of revenue, in the fourth quarter of 2014 and a gross profit of US$82.7 million, or 26.8% of revenue, in the third quarter of 2015.

Selling, General and Administrative Expenses

SG&A expenses were US$55.2 million for the fourth quarter of 2015 compared to US$53.1 million for the fourth quarter of 2014 and US$48.8 million for the third quarter of 2015. As a percentage of total revenue, SG&A expenses were 13.3% compared to 14.6% in the fourth quarter of 2014 and 15.8% in the third quarter of 2015.

Net Income

Net income for the fourth quarter of 2015 was US$19.1 million, compared to US$23.8 million for the fourth quarter of 2014 and US$22.7 million for the third quarter of 2015. Net margin was 4.6%, compared to 6.6% in the fourth quarter of 2014 and 7.3% in the third quarter of 2015. Diluted earnings per ADS were US$0.26, compared to US$0.30 per ADS in the fourth quarter of 2014 and US$0.31 per ADS in the third quarter of 2015.

Balance Sheet

As of December 31, 2015, the Company's cash and cash equivalents (including restricted cash) increased to US$750.7 million from US$555.9 million as of September 30, 2015. Total debt outstanding was US$1,740.9 million, a decrease of US$52.2 million, compared to US$1,793.1 million at the end of the third quarter of 2015. The balance of the Company's real estate property under development at the end of the fourth quarter of 2015 was US$1,884.3 million, compared to US$2,012.2 million at the end of the third quarter of 2015.

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 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

211.1

206.2

380.8

345.6

90.8%

93.9%

Zhengzhou Thriving Family

131.5

115.0

161.7

133.5

82.6%

78.7%

Xingyang Splendid I

118.8

73.0

89.5

60.0

67.0%

72.6%

Xingyang Splendid II

136.9

7.2

138.4

9.5

6.9%

40.6%

Kunshan Royal Palace

279.9

199.4

496.4

295.5

59.5%

84.4%

Suzhou Xin City

127.2

126.9

184.2

183.1

99.4%

99.8%

Suzhou Lake Royal Palace

169.6

114.4

388.9

188.0

48.3%

91.9%

Jinan Xinyuan Splendid

572.2

560.9

795.2

785.3

98.8%

98.9%

Jinan Royal Palace

452.3

146.5

698.7

148.8

21.3%

55.9%

Xuzhou Colorful City

130.2

67.6

207.5

98.1

47.3%

75.1%

Beijing Xindo Park

132.9

119.5

482.3

385.8

80.0%

97.5%

Chengdu Thriving Family

211.4

64.4

355.9

56.2

15.8%

82.4%

Changsha Xinyuan Splendid

252.7

83.5

364.6

73.4

20.1%

67.1%

Sanya Yazhou Bay No.1

122.0

11.8

306.7

26.1

8.5%

62.7%

Xi'an Metropolitan*

296.6

122.3

490.8

124.3

25.3%

63.3%

Shanghai Royal Palace

57.8

24.4

297.9

84.3

28.3%

88.0%

Zhengzhou Xindo Park

145.2

31.9

203.9

44.5

21.8%

48.2%

Jinan Xin Central

194.7

67.3

388.8

102.8

26.4%

57.3%

Henan Xin Central I (Zhengzhou Nangangliu project)

262.8

77.4

377.4

94.2

25.0%

49.2%

Zhengzhou Fancy City

166.7

57.6

244.8

73.8

30.1%

43.6%

Tianjin Spring Royal Palace

274.3

14.1

374.2

19.4

5.2%

25.3%

Others remaining GFA

4.8

-

-

-

-

-

Total active projects

4,451.6

2,291.3

7,428.6

3,332.2

44.9%

71.8%

* The Company owns 51% equity interest in a joint venture, Shaanxi Zhongmao Economy Development Co., Ltd. which develops Xi'an Metropolitan project. The Company accounts for its investment under the equity method.

As of December 31, 2015, the Company's total sellable GFA was approximately 2,306,614 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

Scheduled

(m2 000)

Henan Xin Central II (Zhengzhou Nangangliu project)

108.9

Q2 2016

Xingyang Splendid III

37.4

Q2 2016

Total projects under planning

146.3

Total active projects

2,160.3

Total all Xinyuan projects in China

2,306.6

Real Estate Project Update in the U.S.

During the fourth quarter of 2015, the Company continued to make good progress in its Oosten project based in Brooklyn, New York. As of the end of the fourth quarter, the Company had pre-sold approximately 64% of its total units.

Business Outlook

The full year 2015 contract sales and net income were up 34.5% and 37.1% year-over-year to US$1.40 billion and US$66.5 million, respectively. For the full year 2016, the Company currently expects its full year contract sales to grow between 10% and 15% and net income to grow between 15% and 20% compared to 2015.

Conference Call Information

The Company will hold a conference call at 8:00 am ET on March 1, 2016 to discuss its fourth quarter 2015 results. Listeners may access the call by dialing:

US:

1-888-661-5174

International:

1-913-312-9309

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 March 8, 2016 by dialing:

US:

1-877-870-5176

International:

1-858-384-5517

Access code:

6487042

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, 2014. 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

 

 

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,

2015

2015

2014

(unaudited)

(unaudited)

(unaudited)

Total revenue

413,586

308,954

362,900

Total costs of revenue

(332,188)

(226,288)

(266,820)

Gross profit

81,398

82,666

96,080

Selling and distribution expenses

(20,316)

(13,163)

(17,361)

General and administrative expenses

(34,863)

(35,673)

(35,725)

Operating income

26,219

33,830

42,994

Interest income

6,260

6,333

8,711

Interest expense

(5,986)

(5,021)

(6,189)

Net realized gain on short-term investments

437

80

3,128

Unrealized gain/(loss) on short-term investments

13

17

(1,983)

Other income/(expense)

1,258

(35)

105

Loss on extinguishment of debt

-

-

(9,849)

Exchange gains

140

269

656

Share of gain/(loss) of an equity investee

783

974

(1,047)

Income from operations before income taxes

29,124

36,447

36,526

Income taxes

(10,009)

(13,756)

(12,685)

Net income

19,115

22,691

23,841

Net loss attributable to non-controlling interest

1

-

19

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

19,116

22,691

23,860

Earnings per ADS:

Basic

0.27

0.31

0.32

Diluted

0.26

0.31

0.30

ADS used in computation:

Basic

70,126

73,434

74,446

Diluted

72,838

73,499

81,660

 

 

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,

2015

2014

(unaudited)

(audited)

Total revenue

1,164,324

919,748

Total costs of revenue

(891,334)

(677,582)

Gross profit

272,990

242,166

Selling and distribution expenses

(52,126)

(39,494)

General and administrative expenses

(115,329)

(105,622)

Operating income

105,535

97,050

Interest income

24,504

14,577

Interest expense

(20,957)

(28,201)

Net realized gain on short-term investments

1,279

3,128

Unrealized gain on short-term investments

49

122

Other income

5,945

3,213

Loss on extinguishment of debt

-

(9,849)

Exchange gains

403

706

Share of gain/(loss) of an equity investee

2,235

(1,692)

Income from operations before income taxes

118,993

79,054

Income taxes

(52,511)

(30,558)

Net income

66,482

48,496

Net loss attributable to non-controlling interest

1

19

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

66,483

48,515

Earnings per ADS:

Basic

0.93

0.64

Diluted

0.91

0.58

ADS used in computation:

Basic

71,313

75,968

Diluted

73,244

88,559

 

 

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

2015

2015

2014

(unaudited)

(unaudited)

(audited)

ASSETS

Current assets

Cash and cash equivalents

414,497

218,765

140,495

Restricted cash

336,168

337,117

368,874

Short-term investments

1,245

6,397

6,008

Accounts receivable

42,040

35,832

15,457

Other receivables

149,959

153,774

134,819

Restricted deposit

-

66,716

69,358

Deposits for land use rights

46,199

144,625

299,739

Other deposits and prepayments

254,048

233,378

152,290

Advances to suppliers

50,534

56,836

29,787

Real estate properties held for sale

-

-

1,185

Real estate properties development completed

24,077

27,273

12,309

Real estate properties under development

1,884,331

2,012,161

1,714,575

Amounts due from related parties

58,630

71,245

125,374

Amounts due from employees

351

2,241

50

Other current assets

414

682

139

Total current assets

3,262,493

3,367,042

3,070,459

Real estate properties held for lease, net

71,133

74,439

69,224

Property and equipment, net

39,323

41,703

46,476

Other long-term investment

31,108

31,755

242

Investment in joint ventures

6,125

5,429

4,226

Deferred tax assets

15,489

13,504

13,642

Deferred charges

12,504

14,197

16,677

Deposits for land use rights

100,099

3,144

-

Other assets

14,943

11,180

10,580

TOTAL ASSETS

3,553,217

3,562,393

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)

December 31

September 30,

December 31

2015

2015

2014

(unaudited)

(unaudited)

(audited)

LIABILITIES AND

SHAREHOLDERS' EQUITY

Current liabilities

Accounts payable and notes payable

471,176

408,199

351,506

Short-term bank loans and other debt

222,226

235,966

293,450

Customer deposits

63,768

80,522

107,163

Income tax payable

106,034

60,989

62,429

Deferred tax liabilities

57,692

108,581

91,202

Other payables and accrued liabilities

98,640

98,141

74,089

Payroll and welfare payable

22,966

14,212

18,457

Current portion of long-term bank loans and other debt

564,204

743,520

586,841

Current maturities of capital lease obligations

3,066

3,129

3,010

Mandatorily redeemable non-controlling interests

2,310

-

4,486

Total current liabilities

1,612,082

1,753,259

1,592,633

Noncurrent liabilities

Long-term bank loans

13,860

28,296

52,296

Other long-term debt

940,638

785,318

576,204

Deferred tax liabilities

13,500

16,637

9,825

Unrecognized tax benefits

17,842

10,948

14,005

Capital lease obligations, net of current maturities

18,111

20,159

23,500

Mandatorily redeemable non-controlling interests

1,232

3,616

2,451

TOTAL LIABILITIES

2,617,265

2,618,233

2,270,914

Shareholders' equity

Common shares

16

16

16

Treasury shares

(24,045)

(22,384)

(20,696)

Additional paid-in capital

531,233

529,978

530,670

Statutory reserves

80,451

72,821

72,829

Retained earnings

317,364

309,566

273,255

Accumulated other comprehensive income

30,952

54,182

104,557

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

935,971

944,179

960,631

Non-controlling interest

(19)

(19)

(19)

Total equity

935,952

944,160

960,612

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

3,553,217

3,562,393

3,231,526

 

 

SOURCE Xinyuan Real Estate Co., Ltd.



RELATED LINKS

http://www.xyre.com