Xinyuan Real Estate Co., Ltd. Announces FIRST Quarter 2013 FINANCIAL RESULTS

 Xinyuan Real Estate Co., Ltd. Announces FIRST Quarter 2013 FINANCIAL RESULTS

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

--Declares Quarterly Dividend of US$0.05 Per ADS Payable May 31, 2013--

--Raises FY2013 Contract Sales, Revenue and Net Income Guidance--

PR Newswire

BEIJING, May 10, 2013

BEIJING, May 10, 2013 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 first quarter of 2013.

Highlights for the First Quarter 2013

  oTotal first quarter revenues were US$169.4 million, a 1.9% decrease from
    US$172.6 million reported in the first quarter of 2012, and a 35.6%
    decrease from US$263.1 million recorded in the fourth quarter of 2012.
    First quarter revenue exceeded the midpoint of previous guidance of
    US$135.0 million by 25.5%.
  oContract sales totaled US$178.3 million, an 11.6% increase from US$159.7
    million recorded in the first quarter of 2012, and a 5.4% decrease from
    US$188.4 million recorded in the fourth quarter of 2012. First quarter
    contract sales exceeded previous guidance of US$135.0 million by 32.1%.
  oTotal gross floor area ("GFA") sales were 124,600 square meters, an 8.7%
    increase from 114,600 square meters sold in the first quarter of 2012 and
    a 6.1% decrease from 132,700 square meters sold in the fourth quarter of
    2012.
  oSelling, General, and Administrative ("SG&A") expenses as a percent of
    total revenue totaled 7.3% compared to 6.9% in the first quarter of 2012
    and 5.4% in the fourth quarter of 2012.
  oNet income reached US$26.6 million, a 14.7% increase from US$23.2 million
    reported in the first quarter of 2012 and a 20.8% decrease from US$33.6
    million in the fourth quarter of 2012. First quarter net income exceeded
    the midpoint of previous guidance of US$17.0 million by 56.5%.
  oDiluted net earnings per American Depositary Share ("ADS") attributable to
    shareholders were US$0.37, compared to diluted net earnings per ADS of
    US$0.31 in the first quarter of 2012 and US$0.47 per ADS in the fourth
    quarter of 2012. 
  oCash and cash equivalents, including restricted cash, decreased by US$15.5
    million to US$626.4 million as of March 31, 2013 from US$641.9 million as
    of December 31, 2012. Short and long term debt increased by US$2.0 million
    to US$316.1 million compared to US$314.1 million as of December 31, 2012.
  oOn May 3, 2013, the Company announced the closing of its offering of
    13.25% senior notes with an aggregate principal amount of US$200 million
    due in 2018. The Company intends to use the net proceeds of this offering
    to repay certain existing debts, invest in new real estate projects in
    China and the United States and for general corporate purposes.
  oThe Board of Directors of the Company has approved the payment of a
    quarterly dividend of US$0.05 per ADS on May 31, 2013 to shareholders of
    record on May 21, 2013.

Mr. Yong Zhang, Xinyuan's Chairman and Chief Executive Officer said, "The 2013
first quarter was a very strong start for Xinyuan as we significantly exceeded
our first quarter 2013 revenue, contract sales and net income guidance
forecast. The fundamentals of China's housing market remained healthy as
expected with general housing prices stable in the first quarter.
Additionally, we have not experienced any discernible changes in customer
buying patterns in the wake of the central government's latest home purchase
restriction announcements.

"Although our first quarter results were impacted by the usual Chinese New
Year seasonality effect, first quarter results were stronger than our previous
expectation due to strong buying demand at our development projects. In the
second quarter, we project lower sequential results due to lower sellable
inventory levels, but we expect sales to pick up in the second half of this
year as three new projects commence pre-sales and contribute to our revenue
performance in the back half of the year. Consequently, we are pleased to
raise our full year 2013 guidance accordingly, which reflects higher levels of
contract sales under the current operating environment.

"As announced earlier, we have successfully issued US$200 million of senior
notes due in 2018 to repay certain existing debts, and invest in new projects
in China and the United States.

"As we continue to evaluate opportunities to maximize return for our
shareholders, we are pleased to announce that our board of directors has
approved a quarterly dividend of US$0.05 per ADS payable on May 31, 2013 to
shareholders of record as of May 21, 2013.

"Overall, we are very pleased with our operational and financial results in
the first quarter and remain confident in Xinyuan's long-term growth strategy
with our experienced managerial team, attractive development projects and
solid balance sheet."

Financial Results for the First Quarter 2013

Contract Sales

Contract sales totaled US$178.3 million in the first quarter compared to
US$159.7 million in the first quarter of 2012 and US$188.4 million in the
fourth quarter of 2012. The Company's GFA sales were 124,600 square meters in
the first quarter of 2013 versus 114,600 square meters in the first quarter of
2012 and 132,700 square meters in the fourth quarter of 2012. The average
selling price per square meter sold was RMB8,985 (US$1,431) in the first
quarter of 2013 versus RMB8,787 (US$1,393) in the first quarter of 2012 and
RMB8,964 (US$1,420) in the fourth quarter of 2012.

Breakdown of GFA Sales and ASP's by Project

                            Q1 2012          Q4 2012          Q1 2013          Unsold
                            GFA       ASP    GFA       ASP    GFA       ASP    GFA
Project                     (m^2000) (Rmb)  (m^2000) (Rmb)  (m^2000) (Rmb)  (m^2000)
Chengdu Splendid I          2.8       7,048  4.8       5,959  3.8       5,899  0.4
Chengdu Splendid II         20.2      6,829  1.3       7,153  0.4       16,563 -
Zhengzhou Modern City       11.3      9,646  4.2       18,294 1.7       17,427 1.4
Zhengzhou Royal Palace      6.7       16,244 15.5      8,948  17.2      9,093  33.3
Zhengzhou Century East A    -         -      12.5      8,841  19.4      9,209  45.4
Zhengzhou Century East B    11.2      8,215  18.5      8,506  21.1      8,822  15.0
Kunshan Intl City Garden    (4.6)     8,201  22.2      8,251  18.3      8,519  20.6
Suzhou Intl City Garden     27.8      9,836  1.7       11,450 0.1       10,212 1.3
Xuzhou Colorful Garden      0.8       7,549  -1.7      7,091  -1.0      6,378  2.7
Jinan Xinyuan Splendid      16.4      7,723  45.4      8,927  40.8      8,764  299.4
ZhengzhouYipinxiangshanII 20.7      7,228  8.3       8,498  2.6       10,792 2.6
Others                      1.3       -      -         -      0.2       -      2.9
 Total                     114.6     8,787  132.7     8,964  124.6     8,985  425.0

Revenue under the Percentage of Completion Method

In the first quarter of 2013, the Company's total revenue using the percentage
of completion method was US$169.4 million compared to US$172.6 million in the
first quarter of 2012 and US$263.1 million in the fourth quarter of 2012.

Gross Profit

Gross profit for the first quarter of 2013 was US$55.7 million, or 32.9% of
revenue, compared to gross profit of US$49.2 million, or 28.2% of revenue, in
the first quarter of 2012 and a gross profit of US$87.8 million, or 33.4% of
revenue, in the fourth quarter of 2012.

The Company revised total project costs and sales projections for certain
projects resulting in the recognition of US$11.8 million increase of
cumulative gross profit in the first quarter of 2013 under the percentage of
completion method. The Company also realized significant cost savings through
final contractor settlements as projects were delivered to customers in the
first quarter.

Selling, General and Administrative Expenses

SG&A expenses were US$12.4 million for the first quarter of 2013 compared to
US$12.0 million for the first quarter of 2012 and US$14.1 million for the
fourth quarter of 2012. As a percentage of total revenue, SG&A expenses were
7.3% compared to 6.9% in the first quarter of 2012 and 5.4% in the fourth
quarter of 2012.

Net Income

Net income for the first quarter of 2013 was US$26.6 million compared to
US$23.2 million for the same period in 2012 and US$33.6 million for the fourth
quarter of 2012. Net margin was 15.7 %, compared to 13.5% in the first quarter
of 2012 and 12.8% in the fourth quarter of 2012. Diluted earnings per ADS were
US$0.37, compared to US$0.31 per ADS in the same period in 2012, and US$0.47
per ADS in the four quarter of 2012.

Balance Sheet

As of March 31, 2013, the Company reported US$626.4 million in cash and cash
equivalents (including restricted cash) compared to US$641.9 million as of
December 31, 2012. Total debt outstanding was US$316.7 million, an increase of
US$2.6 million compared to US$314.1 million at the end of the fourth quarter
of 2012. The value of the Company's real estate property under development at
the end of the first quarter was US$620.2 million compared to US$722.8 million
at the end of the fourth quarter of 2012.

Project Status

Below is a summary table of projects that were active in the first quarter of
2013.

                                                                      Project
                            GFA              ContractSales
                                                                      Cost %
                            (m^2000)        (US$million)
                                                                      Complete
                            Total            Total
                                     Sold to          Sales to %
 Project               Active           Active
                                     date             date     Sold
                            Projects         Projects
Chengdu Splendid I          231.6    231.2   197.9    194.4    98.2%  98.0%
Chengdu Splendid II         217.0    217.0   234.1    234.0    100.0% 99.1%
Zhengzhou Modern City       226.4    225.0   310.0    307.1    99.1%  98.8%
Zhengzhou Royal Palace      132.2    98.9    230.2    176.8    76.8%  77.5%
Zhengzhou Century East A    77.3     31.9    112.7    46.1     40.9%  79.5%
Zhengzhou Century East B    166.5    151.5   235.9    206.3    87.5%  82.8%
Kunshan Intl City Garden    497.9    477.3   593.1    561.3    94.6%  98.2%
Suzhou Intl City Garden     204.9    203.6   328.6    325.8    99.1%  99.3%
Xuzhou Colorful Garden      101.8    99.1    119.8    117.0    97.7%  99.9%
Jinan Xinyuan Splendid      565.4    266.0   762.7    360.1    47.2%  72.5%
ZhengzhouYipinxiangshanII 198.2    195.6   233.3    229.6    98.4%  94.3%
Others remaining GFA        2.9
Total active projects       2,622.1  2,197.1 3,358.3  2,758.5  82.1%  88.7%

As of March 31, 2013, the Company's total sellable GFA was approximately
1,025,000 square meters for active projects and pre-revenue stage projects.
Below is a summary of all projects at Xinyuan that are in the planning stage:

                              Unsold GFA Presales

                              (m^2000)  Scheduled
NewlyAcquiredZhengzhouLand 207.4      Q3 2013
Newly Acquired Xuzhou Land    110.7      Q1 2014
Newly Acquired Suzhou Land   126.5      Q3 2013
Newly Acquired Beijing Land   118.3      Q3/Q4 2013
Newly Acquired New York Land  37.1
Totalprojectsunderplanning 600.0
Total active projects         425.0
Total all Xinyuan projects    1,025.0

Second Quarter and Full Year 2013 Outlook

The Company projects lower sequential results in the second quarter of 2013 on
lower than expected sellable inventory due to stronger than expected sales of
inventory in the first quarter.

The Company expects contract sales in the second quarter of 2013 to reach
approximately US$150 million. Revenue is expected to total US$140 million in
the second quarter while net income is expected to reach US$25 million
including US$9 million in tax expense benefits to be realized in the second
quarter.

The Company is raising its full year 2013 guidance forecast. Contract sales
are now expected to reach US$850 million versus US$830 million guided
previously. 2013 full year revenue under the percentage of completion method
is projected to total US$820 million, up 8% from last quarter's midpoint of
previous guidance while net income is expected to reach US$105 million, up 11%
from the midpoint of previous guidance.

Conference Call Information

Xinyuan's management will host an earnings conference call on May 10^th, 2013
at 8:30 a.m. U.S. Eastern Time. Listeners may access the call by dialing
1-719-325-2472. 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: 9116786.

About Xinyuan Real Estate Co., Ltd.

Xinyuan Real Estate Co., Ltd. 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 primarily
focuses on China's Tier II and III cities. Xinyuan's U.S. development arm, XIN
Development Group International, Inc. is a pioneer amongst Chinese real estate
residential developers, entering the U.S. 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.

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 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 China and, to the extent we expand operations into other
countries, such as the U.S., the laws, regulations and policies of such
countries; 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 China,
particularly Tier II and Tier III cities, and in our targeted areas in the
U.S.; fluctuations in general economic and business conditions in China, and,
to the extent we expand operation into other countries, such as the U.S., the
general economic and business conditions in such countries; 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,
2012. 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:
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
                                        March 31,    December 31,  March 31,
                                        2013         2012          2012
                                        (unaudited)  (unaudited)   (unaudited)
Total revenue                           169,429      263,094       172,584
Total cost of revenue                   (113,762)    (175,261)     (123,357)
Gross profit                            55,667       87,833        49,227
Selling and distribution expenses       (2,788)      (4,425)       (3,472)
General and administrative expenses     (9,574)      (9,695)       (8,493)
Operating income                        43,305       73,713        37,262
Interest income                         1,635        2,941         1,328
Income from operations before income    44,940       76,654        38,590
taxes
Income taxes                            (18,325)     (43,084)      (15,345)
Net income                             26,615       33,570        23,245
Net income attributable to              -            -             701
non-controlling interest
Net income attributable to Xinyuan Real
Estate Co.,                            26,615       33,570        22,544
Ltd. shareholders
Earnings per ADS:
Basic                               0.37         0.47          0.31
Diluted                              0.37         0.47          0.31
ADS used in computation:
Basic                               71,043       70,969        72,936
Diluted                              72,292       71,747        72,974



XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All US$ amounts and number of shares data in thousands)
                                                     March 31,    December 31,
                                                     2013         2012
                                                     (unaudited)  (audited)
ASSETS
Current assets
Cash and cash equivalents                            442,122      496,205
Restricted cash                                      184,260      145,730
Accounts receivable                                  4,612        3,076
Other receivables                                    9,103        27,413
Other deposits and prepayments                       212,071      105,427
Advances to suppliers                                17,206       11,028
Real estate property held for sale                   10,313       11,191
Real estate property development completed           2,011        3,158
Real estate property under development               620,168      722,819
Other current assets                                 7            295
Total current assets                                 1,501,873    1,526,342
Real estate properties held for lease, net           22,894       23,204
Property and equipment, net                          1,571        1,576
Restricted deposit                                   11,198       11,169
Other long-term investment                          242          242
Deferred tax asset                                   1,660        1,599
Other assets                                         2,073        2,249
TOTAL ASSETS                                         1,541,511    1,566,381
XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All US$ amounts and number of shares data in thousands)
                                                     March 31,    December 31,
                                                     2013         2012
                                                     (unaudited)  (audited)
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable                                     179,931      241,894
Short-term bank loans and other debt                 157,197      113,066
Customer deposits                                    57,238       50,201
Income tax payable                                   81,431       75,877
Deferred tax liabilities                             15,516       13,612
Other payables and accrued liabilities               65,397       64,721
Payroll and welfare payable                          2,942        9,663
Current portion of long-term bank loans and other    123,874      166,082
debt
Total current liabilities                            683,526      735,116
Non- current liabilities
Long-term bank loans                                 35,000       35,000
Deferred tax liabilities                             6,253        5,885
Unrecognized tax benefits                            8,866        8,842
TOTAL LIABILITIES                                    733,645      784,843
Shareholders' equity
Common shares                                        15           15
Treasury shares                                      (13,667)     (13,667)
Additional paid-in capital                           512,692      511,964
Statutory reserves                                   49,622       49,622
Retained earnings                                    259,204      233,604
TOTAL EQUITY                                         807,866      781,538
TOTAL LIABILITIES AND
                                                     1,541,511    1,566,381
SHAREHOLDERS' EQUITY



SOURCE Xinyuan Real Estate Co., Ltd.

Website: http://www.xyre.com
 
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