XIN Xinyuan Real Estate Co Ltd

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

Under the Securities Exchange Act of 1934

 

FOR THE MONTH OF OCTOBER 2024

COMMISSION FILE NUMBER: 001-33863

 

XINYUAN REAL ESTATE CO., LTD.

 

27/F, China Central Place, Tower II
79 Jianguo Road, Chaoyang District
Beijing 100025
People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x                             Form 40-F ¨

 

 

 

Exhibit Index

 

Exhibit No.	Description
99.1	Press Release of Xinyuan Real Estate Co., Ltd. dated October 25, 2024

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	Xinyuan Real Estate Co., Ltd.
	By:	/s/ Yong Zhang
	Name:	Yong Zhang
	Title:	CEO

 

Date: October 25, 2024

 

 

 

Exhibit 99.1

 

Xinyuan Real Estate Co., Ltd. Announces First Half 2024 Financial Results

 

Beijing, October 25, 2024 -- Xinyuan Real Estate Co., Ltd. (“Xinyuan” or “the Company”) (NYSE: XIN), an NYSE-listed real estate developer operating primarily in China with projects in the United States, today announced its unaudited financial results for the six months ended June 30, 2024.

 

Financial Results for the First Half of 2024

 

Revenue

 

For the first half of 2024, the Company’s total revenue decreased by 59.9% to US$155.6 million, compared to US$388.2 million for the first half of 2023, and the Company’s average selling price per square meter for real estate properties sold in China decreased by 41.1% to RMB8,951 (US$1,260), compared to RMB15,413 (US$2,226) for the first half of 2023. The decrease in revenue was mainly due to a significant decline in signings, which were affected by the overall downturn in the real estate industry. The decrease in average selling price is primarily attributable to the change in the proportion of real estate sales in different types of real estate property products.

 

Gross Profit

 

Gross profit decreased by US$36.8 million to US$39.8 million, or 25.6% of total revenue for the first half of 2024 from US$76.6 million, or 19.7% of total revenue for the first half of 2023. The increase of gross profit rate was mainly due to optimization of project costs.

 

SG&A Expenses

 

SG&A expenses increased by 4.3% to US$22.9 million for the first half of 2024 from US$21.9 million for the first half of 2023. As a percentage of total revenue, SG&A expenses were 14.7% and 5.6% for the first half of 2024 and 2023, respectively. The main reason for the significant increase in the percentage of SG&A is the substantial decline in total revenue.

 

Net Loss

 

Net loss increased by US$1.2 million to US$47.9 million for the first half of 2024 from US$46.7 million for the first half of 2023.

 

Balance Sheets

 

As of June 30, 2024, the Company’s cash and restricted cash decreased to US$169.3 million from US$230.8 million as of December 31, 2023.

 

Total debt outstanding was US$1,960.4 million as of June 30, 2024, an increase of 0.2% from US$1,957.2 million as of December 31, 2023.

 

The balance of the Company’s real estate properties completed and under development at the end of the second quarter of 2024 was US$3,309.6 million compared to US$3,308.0 million as of December 31, 2023.

 

 

About Xinyuan Real Estate Co., Ltd.

 

Xinyuan is an NYSE-listed real estate developer primarily in China with projects in the United States. In China, Xinyuan develops and manages large-scale, high-quality real estate projects in over ten tier one and tier two cities, including Beijing, Shanghai, Tianjin, Zhengzhou, Jinan, Qingdao, Chengdu, Xi’an, Suzhou, Dalian, Zhuhai and Foshan. Xinyuan was one of the first Chinese real estate developers to enter the U.S. market and over the past few years has been active in real estate development in New York. Xinyuan aims to provide comfortable and convenient real estate related products and services to middle-class consumers. 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 include statements about future debt and financial position, potential future collaborative efforts, among others, and 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 successfully enter new geographic markets, develop new business lines 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 the countries in which we operate; 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 the markets in which we operate; the impact of pandemics, such as the COVID-19 pandemic, on the real estate market and the economies in our markets; fluctuations in general economic and business conditions in the markets in which we operate; and other risks outlined in our public filings with the U.S. Securities and Exchange Commission, including our annual report on Form 20-F for the year ended December 31, 2023. 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 and has not undergone external review. 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:

 

Xinyuan Real Estate Co., Ltd.

Investor Relations

Tel: +86 (10) 8588-9376

Email: irteam@xyre.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)

 

		Six months ended
		June 30,				June 30,
		2024				2023
		(unaudited)				(unaudited)
Total revenue			155,556				388,241
Total costs of revenue			(115,759	)			(311,640	)
Gross profit			39,797				76,601
Selling and distribution expenses			(2,574	)			(2,264	)
General and administrative expenses			(20,281	)			(19,642	)
Gain on disposal of property held for lease			72				-
Operating income			17,014				54,695
Interest income			1,457				2,858
Interest expenses			(73,321	)			(85,290	)
Loss on short-term investments			(1,036	)			(2,185	)
Gain on extinguishment of debt			9,637				2,897
Debt restructuring income			-				8,755
Other income/(expenses)			11,647				(1,774	)
Exchange gain			4,977				17,975
Share of loss of equity investees			(9,849	)			(7,846	)
Loss from operations before income taxes			(39,474	)			(9,915	)
Income tax expenses			(8,376	)			(36,765	)
Net loss			(47,850	)			(46,680	)
Net income attributable to non-controlling interest			1,666				8,045
Net loss attributable to Xinyuan Real Estate Co., Ltd. shareholders			(46,184	)			(38,635	)
Loss per ADS:
Basic			(8.17	)			(7.17	)
Diluted			(8.17	)			(7.17	)
ADS used in computation:
Basic			5,651				5,392
Diluted			5,651				5,392

 

 

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,
		2024				2023
		(unaudited)				(audited)
ASSETS
Current assets
Cash and restricted cash			169,262				230,821
Short-term investments			4,377				5,422
Accounts receivable			37,795				44,252
Other receivables			351,676				378,656
Deposits for land use rights			31,966				31,974
Other deposits and prepayments			258,409				259,752
Advances to suppliers			48,351				39,804
Real estate properties development completed and under development			3,309,556				3,307,965
Amounts due from related parties			192,682				192,627
Amounts due from employees			4,432				1,038
Other current assets			2,142				901
Total current assets			4,410,648				4,493,212
Restricted cash, non-current			-				-
Real estate properties held for lease, net			314,237				322,552
Property and equipment, net			23,925				25,543
Long-term investment			67,307				73,788
Deferred tax assets			289,676				283,688
Deposits for land use rights and properties			32,273				32,474
Amounts due from related parties			14,717				14,805
Contract cost assets			26,117				34,255
Operating lease right-of-use assets			1,518				1,616
Other assets			45,793				51,461
TOTAL ASSETS			5,226,211				5,333,393

 

 

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,
		2024				2023
		(unaudited)				(audited)
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable and notes payable			972,834				1,023,914
Short-term bank loans and other debt			62,903				63,295
Customer deposits			677,700				740,013
Income tax payable			229,702				294,923
Other payables and accrued liabilities			712,672				659,502
Payroll and welfare payable			9,660				14,191
Current portion of long-term bank loans and other debt			1,241,910				1,265,785
Lease liability, current portion			1,697				2,228
Mandatorily redeemable non-controlling interests			10,439				9,741
Amounts due to related parties			72,729				72,910
Total current liabilities			3,992,246				4,146,503
Non-current liabilities
Long-term bank loans			166,575				152,089
Other long-term debt			489,044				476,033
Deferred tax liabilities			419,584				347,969
Unrecognized tax benefits			103,048				103,048
Lease liability			152				338
Amounts due to related parties			-				-
TOTAL LIABILITIES			5,170,649				5,225,981
Shareholders’ equity
Common shares			18				18
Treasury shares			(117,179	)			(116,793	)
Additional paid-in capital			546,277				546,549
Statutory reserves			179,459				179,844
Retained earnings			(664,876	)			(616,743	)
Accumulated other comprehensive loss			(26,997	)			(26,603	)
Total Xinyuan Real Estate Co., Ltd. shareholders’ equity			(83,298	)			(33,729	)
Non-controlling interest			138,859				141,141
Total equity			55,561				107,412
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			5,226,211				5,333,393

 

 

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