Additionally, our balance sheet continues to trend healthier with the large increase in cash and improved sales equities this year. We remain committed to maximizing shareholder value and we have continued to repurchase ADS' on the open market. As we end the final quarter on 2011, we have favorable outlook and remain comfortable with our full-year financial forecast.
I would now turn the call over to Tom Gurnee, our Chief Financial Officer.
Thomas H.R. Gurnee
Okay. Thank you, Chairman, Yong Zhang. As the Chairman mentioned, our quarterly financial performance was strong once again. Third quarter 2011 contract sales, margins and revenue were all up over the previous quarter, while net income was slightly lower on higher operating expenses and taxes, more on that later. Contract sales at $257 million exceeded the previous quarter by 14% and the second quarter of 2010 by 70%. It also exceeded the mid-point of our previous guidance of $230 million to $250 million by 7%. GFA sold also exceeded the previous quarter at 189,000 square meters versus 184,000 in the previous quarter. ASPs held firm with our aggregate ASP rising from $1,228 per square meter to $1,362 per square meter, primarily due to the launch of the premium Zhengzhou Royal Palace property. Prices have not been revised since May 2011 when we reduced prices for the Suzhou Project and selected apartments in our Chengdu. Project. We did however increased commission rates on virtually all our projects to incentivize our sales agents; more on that later. Let me make some notes project by project; Xuzhou International City Garden, the GFA or gross floor area sales, they grew [6 acs] over the second quarter of 2011 to 21,000 square meters, as the second quarter price reductions have the desired effect. Kunshan International City Garden showed renewed life with the introduction of seller-financed contracts as GFA sales grew 65% over the second quarter. Fully 73% of Kunshan sales were seller-financed contracts as apposed to historical mortgage contracts; again, more on that later. Read the rest of this transcript for free on seekingalpha.com