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Sunday, 29 November 2020
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The News and Media Division of The Insight Partners
Friday, 05 Jun 2020 01:00 pm

Xinyuan Real Estate Co., Ltd. Announces First Quarter 2020 Financial Results

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 the U.S., today announced its unaudited financial results for the first quarter ended March 31, 2020.

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First Quarter 2020 Highlights

  • Total revenue was US$125.8 million in the first quarter of 2020 compared to US$468.9 million in the first quarter of 2019.
  • Net loss was US$39.1 million in the first quarter of 2020 compared to net income of US$18.2 million in the first quarter of 2019.
  • Diluted net loss per ADS attributable to shareholders were US$0.73 in the first quarter of 2020 compared to diluted net income of US$0.33 in the first quarter of 2019.

Xinyuan's Chairman Yong Zhang commented, "First quarter results were heavily affected by the COVID-19 outbreak. Project construction and pre-sales were delayed by the nationwide lock-down, which disrupted our supply chain. Suppliers and engineering firms resumed operations toward the end of March, an early sign of economic recovery as China gradually re-opens for business. We are working closely with all suppliers and partners to restart construction, and anticipate returning to normal business pace early in the third quarter this year."

Mr. Zhang added, "Notably, our Hong Kong-listed property management company performed well. Property management is a recurring revenue business that is not particularly impacted by outside factors such as pandemic, the economy, or other forces. Recently, Xinyuan Property Management was again recognized for its strong execution and leadership position. In May 2020, we were designated as a '2020 leading listed company of property management service in business performance'. We are proud to achieve this honor."

Mr. Zhang concluded, "Despite the short-term challenges of this unprecedented pandemic, our fundamental business strengths are intact. We continue to streamline project construction, optimize cost control, and expand sales channels. We ended the quarter with a solid cash balance and ample liquidity. We fully redeemed the US$200 million senior notes on March 19. We will continue repurchase our ADRs depending on market conditions. With the majority of our projects in China, we remain optimistic about our business outlook for this year. Our high-quality residential projects and best-in-class property services continue to attract our customers. We believe these efforts will drive positive performance for the rest of 2020 and beyond."

First Quarter 2020 Financial Results

Contract Sales

Contract sales in China totaled US$153.3 million in the first quarter of 2020 compared to US$478.9 million in the first quarter of 2019 and US$653.6 million in the fourth quarter of 2019.

The Company's GFA sales in China were 90,500 square meters in the first quarter of 2020 compared to 211,400 square meters in the first quarter of 2019 and 356,900 square meters in the fourth quarter of 2019.

The average selling price ("ASP") per square meter sold in China was RMB11,809 (US$1,693) in the first quarter of 2020 compared to RMB15,269 (US$2,264) in the first quarter of 2019 and RMB12,628 (US$1,831) in the fourth quarter of 2019.

Breakdown of GFA Sales and ASPs by Project in China

Project

 

Q1 2019

Q4 2019

Q1 2020

GFA

ASP

GFA

ASP

GFA

ASP

(m2, 000s)

(RMB)

(m2, 000s)

(RMB)

(m2, 000s)

(RMB)

Xingyang Splendid II

10.2

7,478

0.2

7,667

0.1

8,399

Jinan Royal Palace

1.6

15,661

2.0

11,432

0.4

6,838

Xuzhou Colorful City

-

-

-0.1

14,000

0.1

6,879

Chengdu Thriving Family

-0.1

7,729

-

-

-

-

Sanya Yazhou Bay No.1

0.4

25,615

12.8

14,411

0.5

22,816

Xi'an Metropolitan

0.6

11,253

1.9

10,909

2.2

11,742

Jinan Xin Central

0.1

13,170

2.9

10,382

0.8

30,644

Henan Xin Central I

0.1

14,887

0.5

23,764

-1.1

9,828

Zhengzhou Fancy City I

-1.4

15,073

-

-

-0.9

-

Zhengzhou Fancy City II (South)

-0.1

12,660

-

-

-

-

Kunshan Xindo Park

-

31,766

-

-

-

-

Zhengzhou International New City I

-

-

6.2

19,541

0.4

27,968

Xingyang Splendid III

0.4

7,046

1.5

13,652

-

40,922

Zhengzhou International New City II

-

-

4.4

22,965

0.4

29,421

Zhengzhou International New City III A

-0.2

14,713

-

-

-

-

Zhengzhou Fancy City II (North)

3.5

9,838

6.7

9,594

-3.2

10,700

Tianjin Spring Royal Palace II

8.1

12,670

1.4

12,615

4.8

14,250

Zhengzhou International New City III D

-0.1

14,461

0.9

23,353

-

-

Zhengzhou Hangmei International Wisdom
City I

2.3

7,144

0.8

6,699

-

7,090

Zhengzhou International New City III B

0.8

13,262

0.1

12,947

-

-

Changsha Furong Thriving Family

0.2

9,779

-0.1

9,730

0.1

9,632

Chengdu Xinyuan City

33.1

9,511

80.0

10,499

39.0

10,849

Kunshan Xinyu Jiayuan

5.5

24,208

6.4

23,443

1.6

23,826

Xingyang Splendid IV

1.0

7,027

30.9

7,789

14.3

7,336

Suzhou Suhe Bay *

30.0

21,680

-

-

-

-

Zhengzhou Hangmei International Wisdom
City II

0.5

7,350

4.7

7,332

0.9

7,246

Qingdao Royal Dragon Bay

15.3

20,285

21.5

19,769

3.8

22,854

Jinan Royal Spring Bay

2.7

9,201

16.0

8,596

8.0

8,493

Xinyuan Golden Water View
City-Zhengzhou

19.0

18,817

13.5

21,629

-0.2

19,744

Zhengzhou Fancy City III

20.5

12,637

16.5

12,183

2.5

12,321

Zhengzhou International New City III C

17.3

12,260

3.3

10,527

0.1

11,897

Zhengzhou International New City IV A12

24.8

14,254

24.7

16,598

1.2

17,825

Zhengzhou International New City IV B10

7.9

13,969

15.3

10,157

2.1

10,740

Suzhou Galaxy Bay

2.4

13,790

0.6

19,157

0.2

24,328

Suzhou Gusu Shade I

0.8

36,262

0.4

30,076

-

-

Dalian International Health Technology
Town I

0.1

13,618

12.1

9,606

1.9

11,465

Xingyang Splendid V

-

-

22.8

7,647

0.6

5,206

Suzhou Gusu Shade II **

-

-

2.9

38,330

0.8

23,508

Zhengzhou International New City V A04

-

-

21.8

14,082

5.3

13,576

Huzhou Silk Town ***

-

-

3.5

15,415

0.7

16,710

Foshan Xinchuang AI International Science
and Technology Innovation Valley

-

-

12.7

10,795

2.4

10,533

Others

4.1

-

5.2

-

0.8

-

Total

211.4

15,269

356.9

12,628

90.5

11,809

* The Company owns a 16.66% equity interest in Suzhou Hengwan Real Estate Co., Ltd., which develops Suzhou Suhe Bay. The Company accounts for its investment under the equity method.

** The Company owns a 19.99% equity interest in Suzhou Litai Real Estate Co., Ltd., which develops Suzhou Gusu Shade II. The Company accounts for its investment under the equity method.

*** The Company owns a 51% equity interest indirectly in Huzhou Xinhong Renju Construction Development Co., Ltd., which develops Huzhou Silk Town. Based on the articles of association, the company cannot exercise control of Huzhou Silk Town, but has the ability to exercise significant influence over Huzhou Silk Town's operating and financial decisions and accounted for it as an equity method investment.

Revenue

In the first quarter of 2020, the Company's total revenue decreased 73.2% to US$125.8 million from US$468.9 million in the first quarter of 2019 and decreased 86.1% from US$906.7 million in the fourth quarter of 2019.

Gross Profit

Gross profit for the first quarter of 2020 was US$28.1 million, or 22.3% of total revenue, compared to gross profit of US$131.0 million, or 27.9% of total revenue, in the first quarter of 2019 and a gross profit of US$146.5 million, or 16.2% of total revenue, in the fourth quarter of 2019.

Selling, General and Administrative Expenses

SG&A expenses were US$44.0 million for the first quarter of 2020 compared to US$56.1 million for the first quarter of 2019 and US$73.8 million for the fourth quarter of 2019. As a percentage of total revenue, SG&A expenses were 35.0% compared to 12.0% in the first quarter of 2019 and 8.1% in the fourth quarter of 2019.

Net Income

Net loss for the first quarter of 2020 was US$39.1 million compared to net income of US$18.2 million for the first quarter of 2019 and net income of US$39.6 million for the fourth quarter of 2019. Net margin was negative 31.1% compared to 3.9% in the first quarter of 2019 and 4.4% in the fourth quarter of 2019. Diluted net loss per ADS were US$0.73 compared to diluted net earnings of US$0.33 per ADS in the first quarter of 2019 and diluted net earnings of US$0.62 per ADS in the fourth quarter of 2019.

Tags Xinyuan Real Estate Co China United States Financial Real estate

Neha Pandey

Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.


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