Xinyuan Real Estate 4Q15 Earnings Call Notes

Xinyuan Real Estate (XIN) Q4 2015 Results

George Liu

Favorable government policies have supported the markets that we serve

“Overall there were several positive developments for Xinyuan in the fourth quarter. Favorable government policies in China’s real-estate sector including easy monetary policies, relaxed home purchase and lower down-payments hence supported the markets we serve.”

China real estate market is getting better, it’s actually getting crazy in recent weeks

“Basically, the same implies in the China real estate market, it’s actually getting better. It’s getting actually crazy in recent weeks but it’s getting better in the last quarter of last year, I mean, 2015. And one of the main reasons, main drivers why the contract sales is up, GFA sales is up. But the property’s fund is mainly because the margin of the projects that we sold is lower as compared of the margin of the projects we sold – we have sold in the quarter before or in the same quarter of the prior year.”

It’s running high in a crazy way

“we intend since the pricing of those good projects, it’s actually getting running high in a crazy way so we are raising our price significantly basically we slow down the sales of our good products while we are trying to push sales of our bad products in such a heated market.””

Shanghai is getting overheated

“And for Shanghai project, we were selling in 22,000 in February of 2016 but as you might know the real estate market in Shanghai is getting overheated so we probably will increase 30% to 40% of our pricing in March or in April.”