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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 first quarter of 2012.Following management's 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 US 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 joining us today. We are pleased to achieve our revenue and the net income guidance for the fourth quarter. Well, demand for our project was affected by home based restrictions. Our development projected total (inaudible) have been better protected from much weaker. Housing prices inter one cities. There were 11 active developments protecting the fourth quarter with a total sales of about 112,000 square meters. We also made two new land purchases in the fourth quarter. The two (inaudible) allotting to gain greater excise (inaudible) where our past projects in these cities have general is then returns. For the four year 2011 our revenue increased by 53% to US $688 million and net profit. At cities US dollar were 100 million which is double from last year. This strong performance has allowed us to purchase land, reduce our debt, establish a stock buyback program and initiate invented program. Well we expect contact the sales to remain in 2012. There is no easing of buyer. We expect the revenue and the net income grew for senior this year. We have formed the balance sheet and the capital result is for the development of our projects. We continue to see land additions and focus on amazing shareholder returns.
I would now turn the call over to Tom Gurnee, our Chief Financial OfficerTom Gurnee Thank you Chairman. Let me start this call by saying how pleased we are that we were able to exceed the $100 million net profit milestone for the year 2011. This resulted in earnings per ADS more than doubling from $0.66 per ADS in 2010 to $1.36 per ADS in 2011. We believe that growing revenue by 53% and doubling our profits while adding a 182 million in cash in a period of government policy overhang was a very major accomplishment. My thanks go out to all of our employees and contractors for fine performance in 2011. Now that we have congratulated ourselves, let’s examine the results for the fourth quarter 2011 and outlook for 2012. In the fourth quarter of 2011 our quarterly financial performance was strong once again. With revenue and net income achieving the high end of previous guidance and contract sales falling slightly short despite market headwind. Contract sales were 172 million in the quarter did fall 33% from the 257 million achieved in the previous quarter. We have largely but not fully anticipated the sequential decrease in our guidance for the first quarter as we projected contract sales of 180 to 200 million. However we experienced an unexpected 38% sequential month-on-month drop in demand in November which is followed by an equally abrupt 38% sequential increase in December. This in turn was followed by another sharp drop in January and a sharp increase in February. Needless to say it’s difficult to establish a pattern here. Since the fluctuations have been surprisingly consistent across all projects, we believe we are experiencing the long term effects of broad government policy initiatives and those effects are negative or so we have assumed in our projections.
The GFA sold in the quarter also fell from 189,000 square meters in the third quarter to 112,000 square meters in the fourth due mainly to two factors. First there were two new product launches that took place in the third quarter which was followed by more normal at sales activity in the fourth. So in other words, no new product launches in Q4. And second, overall market demand has mentioned earlier did moderate as described above.Read the rest of this transcript for free on seekingalpha.com