Xinyuan Real Estate (XIN) Reports Q1 Loss of $0.73 on Revenues of $125.8M

Xinyuan Real Estate (NYSE: XIN) reported Q1 EPS of ($0.73), versus $0.33 reported last year. Revenue for the quarter came in at $125.8 million, versus $468.9 million reported last year.

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."

Business Outlook

The company strives to achieve contract sales of 20 billion to 22 billion RMB in 2020, with consolidated net income in the range of $60 million to $80 million.

However, the company believes that the COVID-19 outbreak is likely to have a material and extended adverse impact on its operational and financial results for full year 2020. With that, the above outlook may be subject to change in light of uncertainties and situations related to how overall market develops as well as company's business performance in the following months.

For earnings history and earnings-related data on Xinyuan Real Estate (XIN) click here.

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