Xinyuan Real Estate Co., Ltd. (NYSE:XIN) Q2 2019 Earnings Conference Call Transcript
Aug 16, 2019 • 08:00 am ET
Good day, everyone, and welcome to the Xinyuan Real Estate Company Limited Second Quarter 2019 Earnings Conference Call. Please note that today's call is being recorded.
I would now like to turn the conference call over to Mr. Bill Zima of ICR. Please go ahead, sir.
Hello, everyone, and welcome to the Xinyuan's Second Quarter 2019 Earnings Conference Call. The company's second quarter earnings results were released earlier today and are available on the company's IR website as well as on Newswire services.
Before we continue, please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the US Securities Private Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties, as such our results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in our form 20-F and other documents filed with the US Securities and Exchange Commission. Xinyuan does not assume any obligation to update any forward-looking statements except as required under applicable law.
Today, you will hear from Mr. Yong Zhang, the company's Chairman and Chief Executive Officer, who'll comment on the company's operating results. He will be followed by Mr. Brian Chen, the company's Chief Financial Officer, who will provide some additional color on Xinyuan's performance, review the company's financial results and discuss the financial outlook. Following management's prepared remarks, we will open up the call to questions.
With that said, I would now like to turn the call over to Xinyuan's CEO, Mr. Zhang. Please go ahead.
Thank you, Bill. Good morning, and thank you all for joining our second quarter 2019 earnings conference call. We are pleased to acknowledge that in the first half of 2019 Xinyuan maintained stable growth and commenced pre-sales of three new projects in China. The total value of contracts signed in the first half was 2,000 -- RMB1,080 million [Phonetic] representing a 5.2% increase compared to RMB1026.7 [Phonetic] million in the first half of 2018. In addition, we achieved top and bottom line growth despite downward pressure on sales across the industry.
In the first half of 2019, total revenue increased 103.5% year-over-year. Moreover, we were able to reduce SG&A expenses as a percentage of total revenue to 11% in the first half from 16.4% in the first half of 2018. As a result, gross profit increased by 96% year-over-year, and net income was $38.0 million, compared to net loss of $22 million in the half -- in the first half of 2018. Furthermore, our overseas projects continued to proceed as planned, and presales of our Manhattan project are expected to launch at the end of the fourth quarter of 2019.
We are pleased -- we are also pleased to be able to continue to deliver value to our shareholders with our dividend payment this quarter. Despite market and policy uncertainties, we remain optimistic about our ability to achieve positive operating performance. We will remain focused on our core business, maintaining