Xinyuan Real Estate Co., Ltd. Announces Fourth Quarter and Full Year 2013 Financial Results

  Xinyuan Real Estate Co., Ltd. Announces Fourth Quarter and Full Year 2013
                              Financial Results

--4Q13 Contract Sales Exceeds Mid-Point of Previous Guidance by 19.8%--

--4Q13 Revenue Exceeds Mid-Point of Previous Guidance by 11.2%--

PR Newswire

BEIJING, Feb. 28, 2014

BEIJING, Feb. 28, 2014 /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 fourth quarter and full year of 2013.

Highlights for the Fourth Quarter 2013

  oTotal fourth quarter revenues were US$289.2 million, a 20.1% increase from
    US$240.7 million recorded in the third quarter of 2013 and a 9.9% increase
    from US$263.1 million reported in the fourth quarter of 2012. Fourth
    quarter revenue exceeded the mid-point of previous guidance of US$260.0
    million by 11.2%.
  oContract sales totaled US$377.5 million, a 54.9% increase from US$243.7
    million recorded in the third quarter of 2013 and a 100.4% increase from
    US$188.4 million recorded in the fourth quarter of 2012. Fourth quarter
    contract sales exceeded the mid-point of previous guidance of US$315.0
    million by 19.8%.
  oTotal gross floor area ("GFA") sales were 241,700 square meters, a 59.1%
    increase from 151,900 square meters sold in the third quarter of 2013, and
    an 82.1% increase 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 12.2% compared to 9.6% in the third quarter of 2013
    and 5.4% in the fourth quarter of 2012.
  oNet income was US$26.0 million, a 9.4% decrease from US$28.7 million in
    the third quarter of 2013 and a 22.6% decrease from US$33.6 million
    reported in the fourth quarter of 2012.
  oDiluted net earnings per American Depositary Share ("ADS") attributable to
    shareholders were US$0.29, compared to diluted net earnings per ADS of
    US$0.39 in the third quarter of 2013 and US$0.47 per ADS in the fourth
    quarter of 2012.
  oCash and cash equivalents, including restricted cash, increased by US$52.7
    million to US$848.7 million as of December 31, 2013 from US$796.0 million
    as of September 30, 2013. Short and long term debt increased by US$295.4
    million from US$515.6 million as of September 30, 2013 to US$811.0 million
    as of December 31, 2013.
  oBook value was US$11.93 per ADS, as of December 31, 2013, a 3.3% increase
    over the prior quarter.
  oThe Board of Directors of the Company has approved the payment of a
    quarterly dividend of US$0.05 per ADS payable on March 20, 2014 to
    shareholders of record as of March 7, 2014.
  oThe Company acquired five land parcels (for a total of three development
    projects) in Xingyang, Jinan and Kunshan respectively, with total GFA of
    829,768 square meters.

Mr. Yong Zhang, Xinyuan's Chairman said, "We experienced a strong fourth
quarter beating the mid-points of our quarterly revenue, contract sales and
net income guidance. The general state of the real estate environment
remained healthy in the fourth quarter and we experienced excellent project
sales results in each of our operating cities. We commenced pre-sales at two
projects in the fourth quarter-- Xuzhou Colorful City and our newly acquired
Kunshan Royal Palace project, which has already sold out over 90% of the
apartment units we have made available thus far. Additionally, our 3 most
active projects -- Zhengzhou XIN City, Jinan Xinyuan Splendid and Suzhou XIN
City -- each performed very well experiencing sequential improvements average
selling prices and solid GFA sales levels."

"The balance of our real estate property under development at the end of the
fourth quarter increased significantly to US$919.8 million compared to
US$534.7 million at the end of the last quarter. This balance reflects nine
active development projects with another five projects that are expected to
commence pre-sales during the course of 2014. As of today's reporting date,
our total sellable GFA was approximately 2.24 million square meters for active
projects and under planning stage projects, a record for Xinyuan."

"For Xinyuan's long-term success, it's imperative that we expand more
aggressively to become a larger player in the market. China's real estate
industry is changing and property development companies need to get bigger to
benefit from acquiring land at public auction at reasonable prices, attain
greater price negotiating leverage and capitalize on compelling M&A
opportunities. Additionally, financing costs are typically lower for large
scale developers, whom we quantify as having annual contract sales that exceed
RMB10 billion. 2014 is a building year for our company as we invest in
resources for our future development and growth. As we expand our project
pre-sales activity more aggressively in 2014 than in years past, higher
operating expenses are expected to impact our year-over-year profit growth
during the course of 2014. However, beyond this period, as our marketing
expenses moderate and our development projects mature, we believe we will
achieve higher net margin and overall profit growth on a percentage basis that
is consistent with our future top line growth projections."

"Finally, we are pleased with the continuation of our dividend program,
announcing our fourth quarter dividend. We remain committed to this program
as we progress through 2014," concluded Mr. Zhang.

Financial Results for the Fourth Quarter 2013

Contract Sales

Contract sales totaled US$377.5 million in the fourth quarter compared to
US$243.7 million in the third quarter of 2013 and US$188.4 million in the
fourth quarter of 2012. The Company's GFA sales were 241,700 square meters in
the fourth quarter of 2013 versus 151,900 square meters in the third quarter
of 2013 and 132,700 square meters in the fourth quarter of 2012. The average
selling price ("ASP") per square meter sold was RMB9,678 (US$1,562)in the
fourth quarter of 2013 versus RMB9,976 (US$1,604) in the third quarter of 2013
and RMB8,964 (US$1,420) in the fourth quarter of 2012. The sequential ASP
decrease was due to product mix, and the Company did not decrease the price of
any category of product in any of its projects.

Two new projects became available for sale in the fourth quarter of 2013,
namely Kunshan Royal Palace with sellable GFA of 288,400 square meters and
Xuzhou Colorful City with sellable GFA of 129,300 square meters. Sales were
healthy for both projects and they contributed approximately 30.5% of XIN's
GFA sales in the quarter.

Breakdown of GFA Sales and ASP's by Project

                         Q4 2012        Q3 2013        Q4 2013        Unsold
                         GFA      ASP   GFA     ASP    GFA     ASP    GFA
Project                  (m^2     (Rmb) (m^2    (Rmb)  (m^2    (Rmb)  (m^2
                         000)           000)           000)           000)
ZhengzhouRoyalPalace   15.5     8,948 12.9    10,767 1.2     23,351 0.9
ZhengzhouCenturyEastA 12.5     8,841 13.7    10,708 1.9     13,319 2.6
ZhengzhouCenturyEastB 18.5     8,506 7.9     14,058 2.3     16,831 0.9
ZhengzhouXinCity       -        -     31.6    9,587  53.7    9,972  99.7
KunshanIntlCityGarden 22.2     8,251 4.5     11,419 8.8     11,209 3.5
KunshanRoyalPalace     -        -     -       -      42.5    9,265  245.9
SuzhouXinCity          -        -     29.3    8,160  52.6    8,577  44.9
JinanXinyuanSplendid   45.4     8,927 48.5    10,021 45.7    10,372 114.0
XuzhouColorfulCity     -        -     -       -      31.3    8,820  98.0
Others                   18.6     -     3.5     -      1.7     -      4.2
Total                  132.7    8,964 151.9   9,976  241.7   9,678  614.6

Revenue

In the fourth quarter of 2013, the Company's total revenue was US$289.2
million compared to US$240.7 million in the third quarter of 2013 and US$263.1
million in the fourth quarter of 2012.

Gross Profit

Gross profit for the fourth quarter of 2013 was US$82.6 million, or 28.6% of
revenue, compared to a gross profit of US$78.5 million, or 32.6% of revenue,
in the third quarter of 2013 and a gross profit of US$87.8 million, or 33.4%
of revenue, in the fourth quarter of 2012. The decrease in gross margin was
due to an increase in the target cost of two existing projects caused by a
product upgrade, and another newly acquired project, caused by the fair value
adjustment as of the acquisition date.

Selling, General and Administrative Expenses

SG&A expenses were US$35.1 million for the fourth quarter of 2013 compared to
US$23.0 million for the third quarter of 2013 and US$14.1 million for the
fourth quarter of 2012. As a percentage of total revenue, SG&A expenses were
12.2% compared to 9.6% in the third quarter of 2013 and 5.4% in the fourth
quarter of 2012. The increase of SG&A expenses as a percentage of revenue
compared to previous quarters was mainly due to an increase in personnel
related to the rapid expansion of Xinyuan's development projects, year-end
annual bonus payments and higher promotional spending levels on the Company's
two new projects launched in the fourth quarter.

Net Income

Net income for the fourth quarter of 2013 was US$26.0 million compared to
US$28.7 million for the third quarter of 2013 and US$33.6 million for the same
period in 2012. Net margin was 9.0%, compared to 11.9% in the third quarter
of 2013 and 12.8% in the fourth quarter of 2012. Diluted earnings per ADS
were US$0.29, compared to US$0.39 per ADS in the third quarter of 2013 and to
US$0.47 per ADS in the same period in 2012.

Financial Results for the Full Year 2013

For the year ended December 31, 2013, contract sales increased by 19.7% to
US$1,000.2 million from US$835.9 million in 2012. GFA sales increased by 8.7%
to 665,600 square meters from 612,400 square meters in 2012. Total revenues
decreased by 1.9% to US$897.7 million from US$914.8 million in 2012 due to a
higher percentage of completion of more mature development projects in their
near completion stage resulting in higher revenue in 2012, as well as from
lower percentage of completion from two of the Company's major development
projects -- Suzhou XIN City and Xuzhou Colorful City, each of which launched
in the third and fourth quarters of 2013, respectively.

Gross profit was US$286.7 million, or 31.9% of revenue in 2013 compared to a
gross profit of US$280.0 million, or 30.6% of revenue in 2012.

SG&A expenses were US$85.3 million, or 9.5% of revenue, compared to US$56.8
million, or 6.2% of revenue in 2012.

Net income was US$120.7 million in 2013 compared to US$157.0 million in 2012.
Diluted earnings per ADS were US$1.63 in 2013 compared to US$2.17 per ADS in
2012.

Balance Sheet

As of December 31, 2013, the Company reported US$848.7 million in cash and
cash equivalents (including restricted cash) compared to US$796.0 million as
of September 30, 2013. Total debt outstanding was US$811.0 million, an
increase of US$295.4 million compared to US$515.6 million at the end of the
third quarter of 2013. This increase was largely due to new financings
totaling $379.7 million offset by the repayment of an $89.7 million bank loan
in the fourth quarter. The balance of the Company's real estate property
under development at the end of the fourth quarter was US$919.8 million
compared to US$534.7 million at the end of the third quarter of 2013. This
significant increase was due to the purchase of land parcels, and the
capitalization of construction costs incurred for existing projects in the
fourth quarter.

Project Status

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

                         GFA              Contract Sales
                         (m^2 000)        (US$ millions)           Project
                         Total            Total
Project                           Sold to          Sales to        Cost %
                         Active           Active   date     %Sold
                                  date                             Complete
                         Projects         Projects
Zhengzhou Royal Palace   132.4    131.5   237.5    233.9    98.5%  89.0%
Zhengzhou Century East A 77.3     74.7    125.6    120.3    95.8%  95.0%
Zhengzhou Century East B 166.5    165.6   244.0    242.5    99.4%  97.2%
Zhengzhou Xin City       185.0    85.3    324.6    135.4    41.7%  59.0%
Kunshan Intl City Garden 497.9    494.4   605.3    598.9    98.9%  100.0%
Kunshan Royal Palace     288.4    42.5    504.5    63.6     12.6%  35.9%
Suzhou Xin City          126.8    81.9    178.7    111.5    62.4%  63.6%
Jinan Xinyuan Splendid   565.2    451.2   784.3    623.6    79.5%  83.6%
Xuzhou Colorful City     129.3    31.3    196.0    44.6     22.8%  40.4%
Others remaining GFA     4.2
Total active projects  2,173.0  1,558.4 3,200.5  2,174.3  67.9%  77.0%

As of today's reporting date, the Company's total sellable GFA was
approximately 2,238,600 square meters for active projects and under planning
stage projects. Below is a summary of all of the Company's planning stage
projects:

                                                 Unsold GFA Pre sales

                                                 (m^2000)   Scheduled
Beijing Xindo Park                               117.7      Q1 2014
Zhengzhou Xindo Park                            293.4      Q2 2014
Suzhou Lake Royal Palace                         171.9      Q2 2014
Xingyang Splendid (Newly Acquired Xingyang Land) 240.2      Q2 2014
Williamsburg Brooklyn Project                    37.1       Q2 2014
Jinan Royal Palace (Newly Acquired Jinan Land)   420.5      Q3 2014
Newly Acquired Chengdu Land                      225.0      Q4 2014
Newly Acquired Sanya Land                        118.2      Q1 2015
Total projects under planning                    1,624.0
Total active projects                            614.6
Total all Xinyuan projects                       2,238.6

First Quarter and Full Year 2014 Outlook

The Company expects first quarter contract sales to reach approximately US$225
to US$230 million. First quarter revenue is expected to total US$195 to
US$200 million while net income is projected at US$9 to US$11 million.

For the full year, the Company expects contract sales to reach approximately
US$1,640 million. Full year revenue is expected to total US$1,230 to US$1,280
million while full year net income is projected at US$120 to US$125 million.

Conference Call Information

Xinyuan's management will host an earnings conference call at 8:00 am ET on
February 28, 2014 to discuss fourth quarter 2013 results. Listeners may
access the call by dialing 1-913-312-0637. 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 March 7, 2014 by dialing
1-858-384-5517, access code: 6583895.

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. ("XDGI") 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:

Ms. Helen Zhang
Interim Chief Financial Officer
Tel: +86 (10) 8588-9398
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
                                                    December31,  September30,  December31,

                                                    2013          2013           2012
                                                    (unaudited)   (unaudited)    (unaudited)
Total revenue                                       289,160       240,665        263,094
Total cost of revenue                               (206,571)     (162,152)      (175,261)
Gross profit                                        82,589        78,513         87,833
Selling and distribution expenses                   (9,492)       (5,633)        (4,425)
General and administrative expenses                 (25,650)      (17,397)       (9,695)
Operating income                                    47,447        55,483         73,713
Interest income                                     3,084         4,085          2,941
Interest expense                                    (6,411)       (5,608)        -
Other income                                        1,539         -              -
Share of loss in an equity investee                 (117)         -              -
Income from operations before income taxes          45,542        53,960         76,654
Income taxes                                        (19,556)      (25,212)       (43,084)
Net income                                          25,986        28,748         33,570
NetincomeattributabletoXinyuanRealEstateCo.,
                                                    25,986        28,748         33,570
Ltd. shareholders
Earnings per ADS:
Basic                                             0.33          0.40           0.47
Diluted                                           0.29          0.39           0.47
ADS used in computation:
Basic                                             77,616        71,360         70,969
Diluted                                           91,097        73,480         71,747



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,

                                                    2013          2012
                                                    (unaudited)   (audited)
Revenue                                             897,738       914,799
Cost of revenue                                     (611,083)     (634,763)
Gross profit                                        286,655       280,036
Selling expenses                                    (20,773)      (17,942)
General and administrative expenses                 (64,498)      (38,829)
Operating income                                    201,384       223,265
Interest income                                     11,681        9,019
Interest expense                                    (16,863)      -
Other income                                        1,539         -
Share of loss in an equity investee                 (117)         -
Income from operations before income taxes          197,624       232,284
Income taxes                                        (76,913)      (74,175)
Net income                                          120,711       158,109
Less: net income attributable to non-controlling    -             1,110
interest
Net income attributable to shareholders             120,711       156,999
Earnings per ADS:
Basic                                             1.66          2.18
Diluted                                           1.63          2.17
ADS used in computation:
Basic                                             72,867        72,129
Diluted                                           74,732        72,366



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,

                                            2013          2013           2012
                                            (unaudited)   (unaudited)    (audited)
ASSETS
Current assets
Cash and cash equivalents                   587,119       562,019        496,205
Restricted cash                             261,612       233,951        145,730
Accounts receivable                         8,528         17,297         3,076
Other receivables                           10,595        16,619         27,413
Other deposits and prepayments              402,310       404,389        105,427
Advances to suppliers                       15,317        25,041         11,028
Real estate property held for sale          5,524         5,394          11,191
Realestatepropertydevelopmentcompleted  23,161        34,214         3,158
Real estate property under development      919,846       534,688        722,819
Other current assets                        59            198            295
Due from related parties                    820           -              -
Total current assets                        2,234,891     1,833,810      1,526,342
Real estate properties held for lease, net  58,717        53,443         23,204
Property and equipment, net                 46,706        45,560         1,576
Restricted deposit                          -             11,418         11,169
Other long-term investment                  251           249            242
Interests in an equity investee             5,945         -              -
Deferred tax asset                          8,547         1,404          1,599
Deferred charges                            9,049         4,878          -
Other assets                                3,760         2,260          2,249
TOTAL ASSETS                                2,367,866     1,953,022      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)
                                     December 31,  September30,  December31,

                                     2013          2013           2012
                                     (unaudited)   (unaudited)    (audited)
LIABILITIES AND

SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable                     193,046       184,763        241,894
Short-term bank loans and other      23,291        80,223         113,066
debt
Customer deposits                    75,285        92,578         50,201
Income tax payable                   121,642       77,502         75,877
Deferred tax liabilities             70,458        40,857         13,612
Other payables and accrued           74,804        68,100         64,721
liabilities
Payroll and welfare payable          19,638        7,872          9,663
Current portion of long-term bank    217,964       100,846        166,082
loans and other debt
Current maturities of capital lease  2,746         2,723          -
obligations
Total current liabilities            798,874       655,464        735,116
Non- current liabilities
Long-term bank loans                 32,804        58,796         35,000
Other long term debt                 536,943       275,761        -
Deferred tax liabilities             9,385         8,253          5,885
Unrecognized tax benefits            16,314        9,105          8,842
Capital lease obligations, net of    26,646        28,619         -
currentmaturities
TOTAL LIABILITIES                    1,420,966     1,035,998      784,843
Shareholders' equity
Common shares                        16            15             15
Treasury shares                      (3,085)       (3,086)        (13,667)
Additional paid-in capital           534,937       533,647        511,964
Statutory reserves                   68,547        49,622         49,622
Retained earnings                    346,485       336,826        233,604
TOTAL EQUITY                         946, 900      917,024        781,538
TOTAL LIABILITIES AND
                                     2,367,866     1,953,022      1,566,381
SHAREHOLDERS' EQUITY

SOURCE Xinyuan Real Estate Co., Ltd.

Website: http://www.xyre.com
 
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