Xinyuan Real Estate Co., Ltd. Announces fourth Quarter and Full Year 2012 Financial Results

  Xinyuan Real Estate Co., Ltd. Announces fourth Quarter and Full Year 2012
                              Financial Results

-- Exceeds 4Q12 Contract Sales, Revenue and Net Income Estimates --

PR Newswire

BEIJING, Feb. 27, 2013

BEIJING, Feb. 27, 2013 /PRNewswire/ --Xinyuan Real Estate Co., Ltd.
("Xinyuan" or "the Company") (NYSE: XIN), a residential real estate developer
with primary focus on high growth cities in China, today announced its
unaudited financial results for the fourth quarter and full year 2012.

Highlights for the Fourth Quarter 2012

  oTotal fourth quarter revenues were US$263.1 million, a 31.7% increase from
    US$199.8 million in the fourth quarter of 2011 and a 16.4% increase from
    US$226.1 million in the third quarter of 2012.
  oContract sales totaled US$188.4 million, a 9.5% increase from US$172.1
    million in the fourth quarter of 2011 and an 18.0% decrease from US$229.8
    million in the third quarter of 2012.
  oTotal gross floor area ("GFA") sales were 132,700 square meters, an 18.6%
    increase from 111,900 square meters in the fourth quarter of 2011 and a
    22.3% decrease from 170,700 square meters sold in the third quarter of
    2012.
  oSelling, General, and Administrative ("SG&A") expenses as a percent of
    total revenue totaled 5.4% compared to 5.8% in the fourth quarter of 2011
    and 6.6% in the third quarter of 2012.
  oNet income totaled US$33.6 million, an 18.7% increase from US$28.3 million
    in the fourth quarter of 2011 and a 5.3% increase from US$31.9 million in
    the third quarter of 2012.
  oDiluted net earnings per American Depositary Share ("ADS") attributable to
    shareholders were US$0.47 compared to diluted net earnings per ADS of
    US$0.38 in the fourth quarter of 2011 and US$0.44 per ADS in the third
    quarter of 2012. 
  oCash and cash equivalents, including restricted cash, increased by US$33.3
    million to US$641.9 million as of December 31, 2012 from US$608.6 million
    as of September 30, 2012. Short and long term debt increased by US$34.2
    million to US$314.1 million compared to US$279.9 million as of September
    30, 2012.
  oThe Company paid a quarterly dividend of US$0.04 per ADS on October 31,
    2012 and will pay a quarterly dividend of US$0.05 per ADS on February 28,
    2013.

Mr. Yong Zhang, Xinyuan's Chairman and Chief Executive Officer said, "We
experienced a very strong fourth quarter with revenue, contract sales and net
income significantly exceeding our previous guidance. China's property market
remained stable in the fourth quarter as we expected. While economic
uncertainties and stricter purchasing controls remain possibilities for the
China market, we believe the current fundamentals in the housing market are
healthy and we intend to continue to develop projects at a measured pace to
meet continued market demand. Overall, we are very pleased to have completed
an extremely successful year with revenue of US$915 million, contract sales of
US$836 million and net income of US$157 million, each of which are significant
gains over the prior year.

"As announced earlier, we continue to address shareholder value by raising our
quarterly dividend payment by 25% from US$0.04 per ADS to US$0.05 per ADS
payable to shareholders tomorrow to shareholders of record as of February 19,
2013.

"We commenced pre-sales of our Zhengzhou Century East Ain November 2012 and
expect to debut four additional new projects during the course of 2013. Our
strong balance sheet allows us to continue to pursue additional land
acquisitions and development projects further strengthening our growth
prospects in the years to come."

Financial Results for the Fourth Quarter 2012

Contract Sales

Contract sales totaled US$188.4 million in the fourth quarter compared to
US$172.1 million in the fourth quarter of 2011 and US$229.8 million in the
third quarter of 2012. The Company's GFA sales were 132,700 square meters in
the fourth quarter of 2012 versus 111,900 square meters in the fourth quarter
of 2011 and 170,700 square meters in the third quarter of 2012. The average
selling price per square meter sold was RMB8,964 (US$1,420) in the fourth
quarter of 2012 versus RMB9,940 (US$1,538) in the fourth quarter of 2011 and
RMB8,505 (US$1,346) in the third quarter of 2012. 

Breakdown of GFA Sales and ASP's by Project

                              Q4 2011          Q3 2012          Q4 2012          Unsold
                              GFA       ASP    GFA       ASP    GFA       ASP    GFA
Project                       (m^2000) (Rmb)  (m^2000) (Rmb)  (m^2000) (Rmb)  (m^2000)
Chengdu Splendid I            6.3       10,195 4.0       5,693  4.8       5,959  3.7
Chengdu Splendid II           13.9      6,936  8.9       7,078  1.3       7,153  0.5
Zhengzhou Modern City         15.5      13,462 3.0       14,671 4.2       18,294 3.2
Zhengzhou Royal Palace        9.2       15,568 19.6      10,303 15.5      8,948  50.5
Zhengzhou Century East A      -         -      -         -      12.5      8,841  64.8
Zhengzhou Century East B      13.1      8,555  30.8      8,355  18.5      8,506  36.1
Kunshan Intl City Garden      7.9       9,433  41.7      7,851  22.2      8,251  38.9
Suzhou Intl City Garden       10.1      10,676 10.1      10,843 1.7       11,450 1.4
Xuzhou Colorful Garden        0.8       11,064 -         -      -1.7      7,091  1.7
Jinan Xinyuan Splendid        7.5       8,375  43.6      7,956  45.4      8,927  340.2
ZhengzhouYipinxiangshanII 26.8      8,157  8.7       8,637  8.3       8,498  5.2
Others                        0.8       -      0.3       -      -         -      3.2
 Total                       111.9     9,940  170.7     8,505  132.7     8,964  549.4

Revenue

In the fourth quarter of 2012, total revenue was US$263.1million compared to
US$199.8 million in the fourth quarter of 2011 and US$226.1 million in the
third quarter of 2012. The early introduction of the Zhengzhou Century East A
project, over US$8.0 million of re-sale of our Reno projects, and a higher
percentage of completion as Shandong recovered from piling problems
encountered last quarter were primary contributors to the strong revenue.

Gross Profit

Gross profit for the fourth quarter of 2012 was US$87.8 million, or 33.4% of
revenue, compared to gross profit of US$56.4 million, or 28.2% of revenue, in
the fourth quarter of 2011 and a gross profit of US$65.5 million, or 29.0% of
revenue, in the third quarter of 2012.

The Company revised total project costs and sales projections for certain
projects resulting in the recognition of a US$11.6 million increase of
cumulative gross profit in the fourth quarter of 2012 under the percentage of
completion method. This increase was largely due to Chengdu Splendid I and
Kunshan International City Garden projects, which achieved substantial cost
savings as they completed the delivery process.

Selling, General and Administrative Expenses

SG&A expenses were US$14.1 million for the fourth quarter of 2012 compared to
US$11.7 million for the fourth quarter of 2011 and US$14.9 million for the
third quarter of 2012. As a percentage of total revenue, SG&A expenses were
5.4% compared to 5.8% in the fourth quarter of 2011 and 6.6% in the third
quarter of 2012.

Income Taxes

Income taxes in the fourth quarter totaled US$43.1 million or 56.2% of pre-tax
income. This compared unfavorably to third quarter 2012 income taxes that
totaled US$21.5 million or 40.2% of pre-tax income. US$14.8 million of the
taxes amounting to 19.3% of fourth quarter pre-tax income was attributable to
adjustments for unfavorable tax bureau interpretations of Land Value Added Tax
(LVAT) relating to car park cost allocations and China headquarters' expense
allocations.

Net Income

Net income for the fourth quarter of 2012 was US$33.6 million compared to
US$28.3 million for the same period in 2011, and US$31.9 million in the third
quarter of 2012. Net margin was 12.8%, compared to 14.2% in the fourth quarter
of 2011 and 14.1% in the third quarter of 2012. Diluted earnings per ADS were
US$0.47, compared to US$0.38 per ADS in the same period in 2011, and US$0.44
per ADS in the third quarter of 2012.

Financial Results for the Full Year 2012

For the year ended December 31, 2012, total revenues increased by 33.1% to
US$914.8 million from US$687.5 million in 2011. GFA sales increased by 8.3% to
612,400 square meters from 565,700 square meters in 2011. Contract sales
increased by 10.2% to US$836.0 million from US$758.9 million in 2011.

Gross profit was US$280.0 million, or 30.6% of revenue in 2012 compared to a
gross profit of US$199.7 million, or of 29.1% of revenue in 2011.

SG&A expenses were US$56.8 million, or 6.2% of revenue, compared to US$43.4
million, or 6.3% of revenue in 2011.

Net income was US$157.0 million in 2012 compared to US$102.3 million in 2011.
Diluted earnings per ADS were US$2.17 in 2012 compared to US$1.36 per ADS in
2011.

Balance Sheet

As of December 31, 2012, the Company reported US$641.9 million in cash and
cash equivalents (including restricted cash) compared to US$608.6 million as
of September 30, 2012. Total debt outstanding was US$314.1 million, an
increase of US$34.2 million from US$279.9 million at the end of the third
quarter of 2012. The value of the Company's real estate property under
development at the end of the fourth quarter of 2012 was US$722.1 million
compared to US$631.9 million at the end of the third quarter of 2012.

Project Status

Below is a summary table of projects that were active in the fourth quarter of
2012.

                                GFA              Contract Sales         Project
                                                                        Cost %
                                (m^2 000)        (US$ million)          Complete
                                Total    Sold to Total    Sales   %
 Project                   Active   date    Active   to date
                                Projects         Projects         Sold
Chengdu Splendid I              231.0    227.3   196.3    189.8   96.7% 97.7%
Chengdu Splendid II             217.0    216.5   232.1    231.6   99.8% 98.6%
ZhengzhouModernCity           226.4    223.2   307.6    300.7   97.8% 98.8%
Zhengzhou Royal Palace          132.2    81.7    220.1    151.2   68.7% 76.1%
ZhengzhouCenturyEastA        77.3     12.5    111.6    17.5    15.7% 77.7%
Zhengzhou Century East B        166.5    130.4   233.5    175.6   75.2% 81.3%
Kunshan Intl City Garden        497.9    459.0   587.9    533.6   90.8% 97.9%
Suzhou Intl City Garden         204.9    203.5   326.9    323.9   99.1% 99.3%
Xuzhou Colorful Garden          101.8    100.1   119.3    117.4   98.4% 98.6%
Jinan Xinyuan Splendid          565.4    225.2   759.6    301.6   39.7% 70.7%
ZhengzhouYipinxiangshanII 198.2    193.0   230.5    223.9   97.1% 91.9%
Others remaining GFA            3.2
Total active projects           2,621.8  2,072.4 3,325.4  2,566.8 77.2% 87.7%

As of December 31, 2012, unsold GFA in active projects fell to 549,400 square
meters with all but four projects more than 90% sold. The Company's total
sellable GFA for both active projects and projects under planning was
approximately 1,112,300 square meters. Below is a summary of all China
projects at Xinyuan that are in the planning stage:

                                              Unsold GFA 

                                              (m^2 000)  Pre sales
                                                         Scheduled
Newly Acquired Zhengzhou Land                207.4      Q3 2013
Newly Acquired Xuzhou Land                    110.7      Q3 2013
Newly Acquired Suzhou Land                   126.5      Q3 2013
Newly Acquired Beijing Land                   118.3      Q3 2013
Total projects under planning  562.9
Total active projects                         549.4
Total all Xinyuan projects                    1,112.3

First Quarter and Full Year 2013 Outlook

The Company is projecting lower sequential results in the first quarter of
2013 due to the seasonal impact of Chinese New Year as well as lower levels of
sellable inventory. The Company expects contract sales in the first quarter
reach approximately US$135 million. Revenue is expected to range between
US$130 and US$140 million and net income is expected to be in the range of
US$16 to US$18 million. 

For the full year 2013, contract sales are projected to exceed US$830 million.
Revenue is expected to range between US$750 and US$775 million and net income
is expected to be in the range of US$90 million to US$100 million.

Conference Call Information

Xinyuan's management will host an earnings conference call on February 27th,
2013 at 8:00 a.m. U.S. Eastern Time. Listeners may access the call by dialing
1-719-457-1512. A webcast will also be available through the Company's
investor relations website at http://www.xyre.com. Listeners may access the
replay by dialing 1-858-384-5517, access code: 9493270.

About Xinyuan Real Estate Co., Ltd.

Xinyuan Real Estate Co., Ltd. ("Xinyuan") (NYSE: XIN) is a developer of large
scale, high quality residential real estate projects aimed at providing
middle-income consumers with a comfortable and convenient community lifestyle.
Xinyuan focuses on China's Tier I and II cities, characterized as larger, more
developed urban areas with above average GDP and population growth rates.
Xinyuan has expanded its network to cover a total population of over 64.7
million people in eight strategically selected cities, comprising Beijing,
Hefei, Jinan, Kunshan, Suzhou, Zhengzhou, Xuzhou and Chengdu. Xinyuan's U.S.
development arm, XIN Development Group International, Inc. ("XIN") is a
pioneer amongst Chinese real estate residential developers, entering the US
market in 2012. Xinyuan is the first real estate developer from China to be
listed on the New York Stock Exchange. For more information, please visit
http://www.xyre.com.

Safe Harbor Statement

This press release contains 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 can be
identified by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," "confident" and similar
statements. Statements that are not historical facts, including statements
concerning our beliefs, forecasts, estimates and expectations, 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, the risk that:
our financing costs are subject to changes in interest rates; our results of
operations may fluctuate from period to period; the recognition of our real
estate revenue and costs relies on our estimation of total project sales value
and costs; we may be unable to acquire desired development sales at
commercially reasonable costs; increases in the price of raw materials may
increase our cost of sales and reduce our earnings; we are heavily dependent
on the performance of the residential property market in China, which is at a
relatively early development stage; PRC economic, political and social
conditions as well as government policies can affect our business; the market
price of our ADSs may be volatile, and other risks outlined in our public
filings with the Securities and Exchange Commission, including our annual
report on Form 20-F/A for the year ended December 31, 2011. All information
provided in this press release is as of February 27, 2013. Except as required
by law, we undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events.

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:
Mr. Tom Gurnee
Chief Financial Officer
Tel: +86 (10) 8588-9390
Email: tom.gurnee@xyre.com

Ms. Helen Zhang
Financial Controller
Tel: +86 (10) 8588-9255
Email: yuan.z@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
                                                          December31,  September30,  December31,
                                                          2012          2012           2011
                                                          (unaudited)   (unaudited)    (unaudited)
Revenue                                                   263,094       226,062        199,770
Cost of revenue                                           (175,261)     (160,576)      (143,407)
Gross profit                                              87,833        65,486         56,363
Selling and distribution expenses                         (4,425)       (5,220)        (3,645)
General and administrative expenses                       (9,695)       (9,667)        (8,006)
Operating income                                          73,713        50,599         44,712
Interest income                                           2,941         2,827          2,582
Exchange gains                                            -             -              1
Incomefromoperationsbeforeincometaxes                76,654        53,426         47,295
Income taxes                                              (43,084)      (21,498))      (18,986)
Net income                                                33,570        31,928         28,309
Less:netincomeattributabletononcontrollinginterest -             -              114
Net income attributable to shareholders                   33,570        31,928         28,195
Earnings per share:
 Basic                                                   0.47          0.44           0.38
 Diluted                                                 0.47          0.44           0.38
Shares used in computation:
 Basic                                                   70,969        71,839         73,996
 Diluted                                                 71,747        72,076         73,996

XINYUAN REAL ESTATE CO., LTD. AND 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,
                                                    2012          2011
                                                    (unaudited)   (audited)
Revenue                                             914,799       687,508
Cost of revenue                                     (634,763)     (487,777)
Gross profit                                        280,036       199,731
Selling and distribution expenses                   (17,942)      (16,209)
General and administrative expenses                 (38,829)      (27,231)
Operating income                                    223,265       156,291
Interest income                                     9,019         5,294
Exchange gains                                      -             57
Income from operations before income taxes          232,284       161,642
Income taxes                                        (74,175)      (58,637)
Net income                                          158,109       103,005
Less: net income attributable to non-controlling    1,110         707
interest
Net income attributable to shareholders             156,999       102,298
Earnings per share:
 Basic                                             2.18          1.36
 Diluted                                           2.17          1.36
Shares used in computation:
 Basic                                             72,129        75,657
 Diluted                                           72,366        75,657



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,
                             2012           2012                 2011
                             (unaudited)     (unaudited)  (audited)
ASSETS
Current assets
Cash and cash equivalents    462,484        443,091              319,218
Restricted cash              179,451        165,537              168,384
Accounts receivable          3,076          2,876                20,806
Other receivables            27,018         8,831                13,352
Other deposits and           105,427        216,296              60,006
prepayments
Advances to suppliers        11,435         14,056               13,579
Real estate property held    11,191         -                    -
for sale
Real estate property         1,811          1,939                6,775
development completed
Real estate property under   722,053        631,945              761,871
development
Other current assets         690            18,566               659
Total current assets         1,524,636      1,503,137            1,364,650
Real estate properties held  24,327         21,715               18,527
for lease, net
Property and equipment, net  2,567          2,580                2,981
Restricted deposit           11,169         -                    -
Other long-term investment   242            239                  242
Deferred tax assets          1,599          1,529                1,307
Other assets                 2,250          2,280                2,907
TOTAL ASSETS                 1,566,790      1,531,480            1,390,614



XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All US$ amounts and number of shares data in thousands)
                                     December31,  September30,  December31,
                                     2012          2012           2011
                                     (unaudited)   (unaudited)    (audited)
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable                     242,182       225,169        235,911
Short-term bank loans                83,866        56,763         42,950
Customer deposits                    50,201        131,002        69,524
Income tax payable                   75,877        35,977         69,909
Deferred tax liabilities             13,612        37,560         22,175
Other payables and accrued           64,842        53,437         50,970
liabilities
Payroll and welfare payable          9,663         10,746         7,018
Current portion of long-term bank    195,282       198,141        129,403
loans and other debt
Total current liabilities            735,525       748,795        627,860
Non- current liabilities
Long-term bank loans                 35,000        25,000         73,482
Deferred tax liabilities             5,885         5,582          -
Unrecognized tax benefits            8,842         8,765          13,824
Other long-term debt                 -             -              39,709
TOTAL LIABILITIES                    785,252       788,142        754,875
Shareholders' equity
Common shares                        15            15             15
Treasury shares                      (13,667)      (13,667)       (7,959)
Additional paid-in capital           511,964       511,331        509,713
Statutory reserves                   49,622        33,579         33,579
Retained earnings                    233,604       212,080        99,280
TOTAL SHAREHOLDERS' EQUITY           781,538       743,338        634,628
Non-controlling interest             -             -              1,111
TOTAL EQUITY                         781,538       743,338        635,739
TOTAL LIABILITIES AND EQUITY         1,566,790     1,531,480      1,390,614



SOURCE Xinyuan Real Estate Co., Ltd.

Website: http://www.xyre.com