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» Xinyuan Real Estate's CEO Discusses Q1 2011 Results - Earnings Call Transcript
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» Xinyuan Real Estate Company LTD Q2 2010 Earnings Call Transcript
» Xinyuan Real Estate Co., Ltd. Q1 2010 Earnings Call Transcript
Today, you will hear from Mr. Yong Zhang, our Chairman and Chief Executive Officer, who will comment on current operations, and provide some perspectives on the market environment. He will be followed by Mr. Tom Gurnee, our Chief Financial Officer, who will provide some additional color on our performance, review the company’s financial results, and discuss our outlook for the reminder of year 2011.Following management prepared remarks we’ll open the call to questions. During the Q&A session, Mr. Zhang will speak in Mandarin, and I will translate his comments into English. Please note that unless otherwise stated, all figures mentioned during this conference call are in U.S. dollars. I will now turn the call over to Xinyuan’s Chairman and CEO, Mr. Yong Zhang. Please go ahead, sir. Yong Zhang Hello, everyone and thank you for attending us today. Overall, we were quite pleased with our strong result for the second quarter. As we expected our second quarter financial forecast for revenue, contract sales and net income. This accomplishment occurred in despite of the impact (inaudible) to mortgage and the purchase restriction policies in China. Issued by regional government earlier this year, the good performance for the second quarter was then attributed to the offending (inaudible) including active marketing advert in launching new product and the progress in cost charges. As expected, our customers most of whom are first time (inaudible) have learnt to comp with the new round of policy. We were pleased that average selling prices was stable for most of our development project, which reported our net income in the quarter. Our two new project launched in Q2 are of to a strong start and contributed meaningfully to our contract sales for the quarter. We also are scheduled to launch one new project in the third quarter, which will represent about 134,000 square meter of key asset.
In the third quarter, there will be 11 major active projects, which are expected to contribute to our performance in the second half of the year.We are proud that our (inaudible) continues to improve its record high cash and lower debt dependencies. Consequently, we were pleased to the provision of returning some money to shareholders in the form of dividend. The company will declare dividend as long-term policies as we are making projects. We also implemented US$10 million share buyback program. We will continue to buy our share after the second quarter earnings. Our company is actively looking for opportunities of the land acquisition both by public auction or acquisition through other means such as land purchase from smaller developers who have financial problem (inaudible) element. We believe these multiple measures will secure the company a sustainable growth that have the reasonable (inaudible) course. Well, the market is challenging on the current policies we remain cautious to market trend due to tightening in mortgage and purchase restriction. I firmly believe that Xinyuan is very well positioned in the coming quarters with a highly (inaudible) to project the pipeline and stronger balance sheet. I will now turn the call over to Tom Gurnee, our Chief Financial Officer. Thomas Gurnee Thank you, Chairman and thank you to those (inaudible) during these tumultuous times. By virtually all measures our second quarter 2011 financial results were beyond expectations, contract sales, revenue and net profit exceeded the mid point of guidance by fully 43%, 26% and 59% respectively. The primary driver of this performance was contract sales. Contract sales results of Q2 were very strong on new product launches. Of the 183,000 square meter sold in total 115,000 or 62% of the total was reported in three new projects, Chengdu Splendid, which is in Jinan and Chengdu province, launched in May 2011 selling nearly 56,000 square meters of product or 11% of its total GFA in just May and June for contract sales totaling $74 million making up 33% of Xinyuan’s Q2 bookings.
Yipinxiangshan II, which was acquired from the minority owned joint venture we acquired in November last year, it launched at the end of March and sold 50,000 square meters or 25% of its total GFA in the second quarter with contract sales totaling $52 million comprising 23% of Xinyuan’s Q2 contract sales.Read the rest of this transcript for free on seekingalpha.com