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/C O R R E C T I O N -- Xinyuan Real Estate Co., Ltd./



            /C O R R E C T I O N -- Xinyuan Real Estate Co., Ltd./

PR Newswire

BEIJING, Nov. 8, 2013

In the news release, Xinyuan Real Estate Co., Ltd. Announces Unaudited Third
Quarter 2013 Financial Results, issued 08-Nov-2013 by Xinyuan Real Estate Co.,
Ltd. over PR Newswire, we are advised by the company that third subheadline
should read, "Raising 2013 Revenue, Contract Sales and Net Income Guidance
Forecast," rather than "2014" as originally issued inadvertently. The
complete, corrected release follows:

  Xinyuan Real Estate Co., Ltd. Announces Unaudited Third Quarter 2013
  Financial Results

    -- 3Q13 Contract Sales Exceeds Previous Guidance by 16.0% --

    -- 3Q13 Revenue Exceeds Previous Guidance by 12.0% --

    -- Raising 2013 Revenue, Contract Sales and Net Income Guidance Forecast
    --

BEIJING, Nov. 8, 2013 /PRNewswire/ -- Xinyuan Real Estate Co., Ltd. ("Xinyuan"
or "the Company") (NYSE: XIN), a residential real estate developer with a
primary focus on high growth cities in China, today announced its unaudited
financial results for the third quarter of 2013.

Highlights for the Third Quarter 2013

  o Total third quarter revenues were US$240.7 million, a 21.3% increase from
    US$198.5 million recorded in the second quarter of 2013 and a 6.5%
    increase from US$226.1 million reported in the third quarter of 2012.
    Third quarter revenue exceeded the previous guidance of US$215.0 million
    by 12.0%.
  o Contract sales totaled US$243.7million, a 24.3% increase from US$196.0
    million recorded in the second quarter of 2013 and a 6.0% increase from
    US$229.8 million recorded in the third quarter of 2012. Third quarter
    contract sales exceeded previous guidance of US$210.0 million by 16.0%.
  o Total gross floor area ("GFA") sales were 151,900 square meters, a 3.2%
    increase from 147,200 square meters sold in the second quarter of 2013,
    and an 11.0% decrease from 170,700 square meters sold in the third quarter
    of 2012.
  o Selling, General, and Administrative ("SG&A") expenses as a percent of
    total revenue totaled 9.6% compared to 7.4% in the second quarter of 2013
    and 6.6% in the third quarter of 2012.
  o Net income was US$28.7 million, a 27.2% decrease from US$39.4 million in
    the second quarter of 2013 and a 10.0% decrease from US$31.9million
    reported in the third quarter of 2012.
  o Diluted net earnings per American Depositary Share ("ADS") attributable to
    shareholders were US$0.39, compared to diluted net earnings per ADS of
    US$0.54 in the second quarter of 2013 and US$0.44 per ADS in the third
    quarter of 2012.
  o Cash and cash equivalents, including restricted cash, decreased by US$78.7
    million from US$874.7 million as of June 30, 2013 to US$796.0 million as
    of September 30, 2013. Short and long term debt increased by US$4.9
    million from US$510.7 million as of June 30, 2013 to US$515.6 million as
    of September 30, 2013.
  o Book value was US$11.55 per ADS, as of September 30, 2013.
  o The Board of Directors of the Company has approved the payment of a
    quarterly dividend of US$0.05 per ADS payable on November 29, 2013 to
    shareholders of record as of November 18, 2013.

Mr. Yong Zhang, Xinyuan's Chairman said, "The third quarter was exceptionally
strong for Xinyuan as we exceeded our quarterly revenue and contract sales
forecasts and came in at the high end of our range for our net income
forecast. These results were driven by solid operational execution within our
existing development projects, including two new projects launched in the
third quarter, and aided by a robust housing market in the cities in which we
operate."

"The past few months have been an eventful period for Xinyuan. We've created a
strong future revenue pipeline by adding five new projects to our development
portfolio in the last two months alone. We also strengthened our management
team through the addition of industry veterans Xinqi Wang as CEO and Kevin Wei
as CFO. These talented and highly experienced executives will contribute
significantly to Xinyuan's operational and financial performance and help
realize our full growth potential."

"During the third quarter, we received an investment of US$108.6 million from
TPG, one of the world's leading private investment firms in the form of common
equity and convertible debt. These investment proceeds will assist us in
expanding our land portfolio and developing our internal infrastructure and
operational capabilities to drive future growth. We look forward to a fruitful
long term relationship with our new investor TPG."

"Our Board recently approved the third quarterly cash dividend payment for
2013 of $0.05 per ADS. As we go forward, we are excited by our expansion
opportunities and continue to focus on increasing our growth and profit
opportunities for our shareholders."

Financial Results for the Third Quarter 2013

Contract Sales

Contract sales totaled US$243.7 million in the third quarter compared to
US$196.0 million in the second quarter of 2013 and US$229.8 million in the
third quarter of 2012. The Company's GFA sales were 151,900 square meters in
the third quarter of 2013 versus 147,200 square meters in the second quarter
of 2013 and 170,700 square meters in the third quarter of 2012. The average
selling price ("ASP") per square meter sold was RMB9,976 (US$1,604)in the
third quarter of 2013 versus RMB8,312 (US$1,332) in the second quarter of 2013
and RMB8,505 (US$1,346) in the third quarter of 2012.

Two new projects became available for sale in the third quarter of 2013,
namely Suzhou XIN City with 127,000 square meters and Zhengzhou XIN City with
186,000 square meters. Sales were brisk for both projects and they contributed
approximately 40.1% of XIN's GFA sales in the quarter.

Breakdown of GFA Sales and ASP's by Project

                  Q3 2012          Q2 2013          Q3 2013          Unsold
                  GFA       ASP    GFA       ASP    GFA       ASP    GFA
Project           (m^2 000) (Rmb)  (m^2 000) (Rmb)  (m^2 000) (Rmb)  (m^2 000)
Zhengzhou Royal   19.6      10,303 18.6      9,269  12.9      10,767 1.9
Palace
Zhengzhou Century -         -      27.2      10,451 13.7      10,708 4.5
East A
Zhengzhou Century 30.8      8,355  3.9       15,030 7.9       14,058 3.2
East B
Zhengzhou Xin     -         -      -         -      31.6      9,587  154.3
City
Kunshan Intl City 41.7      7,851  3.8       9,378  4.5       11,419 12.3
Garden
Suzhou Xin City   -         -      -         -      29.3      8,160  97.2
Jinan Xinyuan     43.6      7,956  91.0      7,062  48.5      10,021 159.7
Splendid
Others            35.0      -      2.7       -      3.5       -      7.1
  Total           170.7     8,505  147.2     8,312  151.9     9,976  440.2

Revenue

In the third quarter of 2013, the Company's total revenue was US$240.7 million
compared to US$198.5 million in the second quarter of 2013 and US$226.1
million in the third quarter of 2012.

Gross Profit

Gross profit for the third quarter of 2013 was US$78.5 million, or 32.6% of
revenue, compared to a gross profit of US$69.9 million, or 35.2% of revenue,
in the second quarter of 2013 and a gross profit of US$65.5 million, or 29.0%
of revenue, in the third quarter of 2012.

The decrease of gross profit as a percentage of revenue compared to last
quarter was largely due to favorable project completion settlements in the
previous quarter that resulted in lower costs.

Selling, General and Administrative Expenses

SG&A expenses were US$23.0 million for the third quarter of 2013 compared to
US$14.7 million for the second quarter of 2013 and US$14.9 million for the
third quarter of 2012. As a percentage of total revenue, SG&A expenses were
9.6% compared to 7.4% in the second quarter of 2013 and 6.6% in the third
quarter of 2012. The increase of SG&A expenses as a percentage of revenue
compared to previous quarter was due to more employee hiring, performance and
retention bonuses and higher promotional spending on our two new project
launches.

Net Income

Net income for the third quarter of 2013 was US$28.7 million compared to
US$39.4 million for the second quarter of 2013 and US$31.9 million for the
same period in 2012. Net margin was 11.9%, compared to 19.8% in the second
quarter of 2013 and 14.1% in the third quarter of 2012. Diluted earnings per
ADS were US$0.39, compared to US$0.54 per ADS in the second quarter of 2013
and to US$0.44 per ADS in the same period in 2012.

Balance Sheet

As of September 30, 2013, the Company reported US$796.0 million in cash and
cash equivalents (including restricted cash) compared to US$874.7 million as
of June 30, 2013 as a result of substantial land purchases made in the
quarter, which offset the net proceeds of the TPG investment transaction.
Total debt outstanding was US$515.6 million, an increase of US$4.9 million
compared to US$510.7 million at the end of the second quarter of 2013. The
balance of the Company's real estate property under development at the end of
the third quarter was US$534.7 million compared to US$605.7 million at the end
of the second quarter of 2013.

Project Status

Below is a summary table of projects that were active and available for sale
in the third quarter of 2013.

                         GFA              Contract Sales
                         (m^2 000)        (US$ millions)             Project
                         Total            Total
Project                           Sold to          Sales to   % Sold Cost %
                         Active           Active   date              Complete
                                  date
                         Projects         Projects
Zhengzhou Royal Palace   132.2    130.3   236.6    228.6     96.6%   84.0%
Zhengzhou Century East A 77.3     72.8    124.7    115.9     92.9%   88.0%
Zhengzhou Century East B 166.5    163.3   242.3    235.5     97.2%   94.6%
Kunshan Intl City Garden 497.9    485.6   602.3    580.9     96.5%   99.9%
Jinan Xinyuan Splendid   565.2    405.5   773.4    545.2     70.5%   78.9%
Suzhou Xin City          126.5    29.3    170.8    38.5      22.5%   15.5%
Zhengzhou Xin City       185.9    31.6    306.6    48.7      15.9%   12.3%
Others remaining GFA     7.1
  Total active projects  1,758.6  1,318.4 2,456.7  1,793.3   73.0%   82.4%

As of September 30, 2013, the Company's total sellable GFA was approximately
1,581,100 square meters for active projects and pre-revenue stage projects.
Below is a summary of all our planning stage projects:

                              Unsold    Pre sales

                              GFA       Scheduled
                              (m^2 000)
 Xuzhou Colorful City         117.5     Q4 2013
Beijing Xindo Park            117.7     Q4 2013
Newly Acquired Kushan Land    284.0     Q4 2013
Newly Acquired Erqi Land      293.4     Q2 2014
Newly Acquired Suzhou Land    171.9     Q2 2014
Newly Acquired Xingyang Land  119.3
Newly Acquired New York Land  37.1
Total projects under planning 1,140.9
Total active projects         440.2
Total all Xinyuan projects    1,581.1

Fourth Quarter and Full Year 2013 Outlook

The Company expects fourth quarter contract sales to reach approximately
US$310 to US$320 million. Fourth quarter revenue is expected to total US$255
to US$265 million while net income is projected at US$20 to US$30 million.

With the addition of several new projects to the Company's active project list
during the fourth quarter, the Company has raised its full year 2013 financial
forecast.

Contract sales for the full year 2013 are now expected to reach US$930 to
US$940 million. Revenue under the percentage of completion method is expected
to reach US$860 to US$870 million, while net income is expected to exceed
US$115 million for the year.

Conference Call Information

Xinyuan's management will host an earnings conference call at 7:30 am ET on
November 8, 2013 to discuss third quarter 2013 results. Listeners may access
the call by dialing 1-719-325-2308. A webcast will also be available through
the Company's investor relations website at http://www.xyre.com. A replay of
the call will be available through November 15, 2013 by dialing
1-858-384-5517, access code: 9179858.

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.
In China, Xinyuan primarily focuses its development projects in Tier II
cities, including Hefei, Jinan, Kunshan, Suzhou, Zhengzhou, Xuzhou and
Chengdu. The Company'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.

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. Kevin Wei
Chief Financial Officer
Tel: +86-10-8588-9278

Ms. Helen Zhang
Financial Controller
Tel: +86-10-8588-9255
Email: irmanager@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
                                                    September 30,  June 30,     September 30,
                                                    2013           2013         2012
                                                    (unaudited)    (unaudited)  (unaudited)
Total revenue                                       240,665        198,484      226,062
Total cost of revenue                               (162,152)      (128,598)    (160,576)
Gross profit                                        78,513         69,886       65,486
Selling and distribution expenses                   (5,633)        (2,860)      (5,220)
General and administrative expenses                 (17,397)       (11,877)     (9,667)
Operating income                                    55,483         55,149       50,599
Interest income                                     4,085          2,877        2,827
Interest expense                                    (5,608)        (4,844)      -
Income from operations before income taxes          53,960         53,182       53,426
Income taxes                                        (25,212)       (13,820)     (21,498)
Net income                                          28,748         39,362       31,928
Net income attributable to Xinyuan Real Estate Co.,
                                                    28,748         39,362       31,928
Ltd. shareholders
Earnings per ADS:
  Basic                                             0.40           0.55         0.44
  Diluted                                           0.39           0.54         0.44
ADS used in computation:
  Basic                                             71,360         71,256       71,839
  Diluted                                           73,480         72,242       72,076

 

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)
                                                  Nine  months ended
                                                  September 30,  September 30,
                                                  2013           2012
                                                  (unaudited)    (unaudited)
Revenue                                           608,578        651,705
Cost of revenue                                   (404,512)      (459,502)
Gross profit                                      204,066        192,203
Selling expenses                                  (11,281)       (13,517)
General and administrative expenses               (38,848)       (29,134)
Operating income                                  153,937        149,552
Interest income                                   8,596          6,078
Interest expense                                  (10,450)       -
Income from operations before income taxes        152,083        155,630
Income taxes                                      (57,357)       (31,091)
Net income                                        94,726         124,539
Less: net income attributable to non-controlling  -              1,110
interest
Net income attributable to shareholders           94,726         123,429
Earnings per ADS:
  Basic                                           1.33           1.70
  Diluted                                         1.31           1.70
ADS used in computation:
  Basic                                           71,266         72,521
  Diluted                                         72,344         72,750

 

XINYUAN REAL ESTATE CO., LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All US$ amounts and number of shares data in thousands)
                                       
                                                     June 30,     December 31,
                                      September 30,
                                      2013           2013         2012
                                      (unaudited)    (unaudited)  (audited)
ASSETS
Current assets
Cash and cash equivalents             562,019        635,800      496,205
Restricted cash                       233,951        238,926      145,730
Accounts receivable                   17,297         2,312        3,076
Other receivables                     16,619         11,445       27,413
Other deposits and prepayments        404,389        231,289      105,427
Advances to suppliers                 25,041         18,597       11,028
Real estate property held for sale    5,394          6,498        11,191
Real estate property development      34,214         4,780        3,158
completed
Real estate property under            534,688        605,673      722,819
development
Other current assets                  198            -            295
Total current assets                  1,833,810      1,755,320    1,526,342
Real estate properties held for       53,443         16,360       23,204
lease, net
Property and equipment, net           45,560         1,850        1,576
Restricted deposit                    11,418         11,362       11,169
Other long-term investment            249            247          242
Deferred tax asset                    1,404          1,242        1,599
Deferred charges                      4,878          4,834        -
Other assets                          2,260          2,013        2,249
TOTAL ASSETS                          1,953,022      1,793,228    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)
                                      September 30,  June 30,     December 31,
                                      2013           2013         2012
                                      (unaudited)    (unaudited)  (audited)
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable                      184,763        171,677      241,894
Short-term bank loans and other debt  80,223         129,198      113,066
Customer deposits                     92,578         78,636       50,201
Income tax payable                    77,502         68,972       75,877
Deferred tax liabilities              40,857         33,029       13,612
Other payables and accrued            68,100         57,978       64,721
liabilities
Payroll and welfare payable           7,872          7,500        9,663
Current portion of long-term bank     100,846        97,917       166,082
loans and other debt
Current maturities of capital lease   2,723          -            -
obligations
Total current liabilities             655,464        644,907      735,116
Non- current liabilities
Long-term bank loans                  58,796         83,554       35,000
Other long term debt                  275,761        200,000      -
Deferred tax liabilities              8,253          6,733        5,885
Unrecognized tax benefits             9,105          7,279        8,842
Capital lease obligations, net of
                                      28,619         -            -
current  maturities
TOTAL LIABILITIES                     1,035,998      942,473      784,843
Shareholders' equity
Common shares                         15             15           15
Treasury shares                       (3,086)        (19,434)     (13,667)
Additional paid-in capital            533,647        513,904      511,964
Statutory reserves                    49,622         49,622       49,622
Retained earnings                     336,826        306,648      233,604
TOTAL EQUITY                          917,024        850,755      781,538
TOTAL LIABILITIES AND
                                      1,953,022      1,793,228    1,566,381
SHAREHOLDERS' EQUITY

 

SOURCE Xinyuan Real Estate Co., Ltd.

Website: http://www.xyre.com
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