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Xinyuan Real Estate Co., Ltd. Announces First Quarter 2019 Financial Results

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BEIJING, May 23, 2019 /PRNewswire/ -- Xinyuan Real Estate Co., Ltd. ("Xinyuan" or the "Company") (NYSE:XIN), an NYSE-listed real estate developer and property manager operating primarily in China and in other countries, today announced its unaudited financial results for the first quarter ended March 31, 2019.

First Quarter 2019 Highlights

  • Contract sales increased 26.0% to US$479.7 million from US$380.7 million in the first quarter of 2018 and decreased 33.7% from US$724.0 million in the fourth quarter of 2018.
  • Total revenue increased 169.3% to US$468.9 million from US$174.1 million in the first quarter of 2018 and decreased 57.1% from US$1,092.2 million in the fourth quarter of 2018.
  • Gross profit increased 238.5% to US$131.0 million, or 28.0% of total revenue, from US$38.7 million, or 22.2% of total revenue, in the first quarter of 2018 and decreased 58.8% from US$318.2 million, or 29.1% of total revenue, in the fourth quarter of 2018.
  • Selling, General and Administrative ("SG&A") expenses as a percentage of total revenue decreased to 12.0% from 22.8% in the first quarter of 2018 and increased from 9.7% in the fourth quarter of 2018.
  • Net income was US$18.2 million compared to net loss of US$12.7 million in the first quarter of 2018 and net income of US$104.1 million in the fourth quarter of 2018.
  • Diluted net earnings per American Depositary Share ("ADS") attributable to shareholders were US$0.33 compared to diluted net loss of US$0.16 per ADS in the first quarter of 2018 and diluted net earnings of US$1.13 per ADS in the fourth quarter of 2018.

Mr. Yong Zhang, Xinyuan's Chairman, stated, "We are pleased that Xinyuan has maintained strong growth despite the downward pressure on sales across the industry. Our contract sales in the first quarter of 2019 increased 26.0% from the first quarter of last year. In addition, we commenced pre-sales on one new project in China."

"The macro economic environment and restrictive government policies still pose certain challenges for our industry. However, Xinyuan's operating strategy and strong execution capabilities continue to drive our steady growth. We will remain focused on selecting quality tier-one and tier-two city projects and will supplement our core business with value-added services in a thoughtful way to solidify our leading market position. We maintain our commitment to controlling our financial leverage and maximizing Xinyuan's financial health. We are optimistic in the outlook for our industry and long-term growth. We are also pleased to offer another quarterly dividend payment to our shareholders," concluded Mr. Zhang.

First Quarter 2019 Financial Results

Contract Sales

Contract sales in China totaled US$478.9 million in the first quarter compared to US$375.5 million in the first quarter of 2018 and US$724.0 million in the fourth quarter of 2018.

The Company's GFA sales in China were 211,400 square meters in the first quarter of 2019 compared to 149,800 square meters in the first quarter of 2018 and 355,000 square meters in the fourth quarter of 2018.

The average selling price ("ASP") per square meter sold in China was RMB15,269 (US$2,264) in the first quarter of 2019 compared to RMB15,932 (US$2,506) in the first quarter of 2018 and RMB13,483 (US$2,039) in the fourth quarter of 2018. 

The Company commenced pre-sales of one new project in the first quarter of 2019, Zhengzhou International New City IV B10, which contributed 3.7% and 3.4% of total GFA sales and total contract sales, respectively.

Breakdown of GFA Sales and ASPs by Project in China

Project

Q1 2018

Q4 2018

Q1 2019

GFA

ASP

GFA

ASP

GFA

ASP

(m2, 000s)

(RMB)

(m2, 000s)

(RMB)

(m2, 000s)

(RMB)

Xingyang Splendid II

-

-

0.7

10,354

10.2

7,478

Jinan Royal Palace

22.4

12,626

1.4

9,548

1.6

15,661

Xuzhou Colorful City

3.6

10,265

1.9

29,363

-

-

Chengdu Thriving Family

4.5

17,183

-

-

(0.1)

7,729

Changsha Xinyuan Splendid

2.6

15,130

3.7

12,796

-

-

Sanya Yazhou Bay No.1

30.9

23,197

0.2

4,995

0.4

25,615

Xi'an Metropolitan

1.5

9,594

1.7

10,592

0.6

11,253

Zhengzhou Xindo Park

0.1

10,000

0.1

8,651

-

-

Jinan Xin Central

12.2

10,527

3.6

16,789

0.1

13,170

Henan Xin Central I

0.3

18,486

-

-

0.1

14,887

Zhengzhou Fancy City I

0.2

19,949

0.2

16,081

(1.4)

15,073

Zhengzhou Fancy City II (South)

1.2

13,031

-

-

(0.1)

12,660

Tianjin Spring Royal Palace I

1.1

14,631

0.3

-

-

-

Zhengzhou International New City
I

2.4

13,322

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