BEIJING, April 30 /Xinhua-PRNewswire/ -- Xinyuan Real Estate Co., Ltd. ("Xinyuan" or "the Company") (NYSE: XIN), a fast-growing residential real estate developer with a focus on strategically selected Tier II cities in China, today announced that Zhengzhou Jiantou Xinyuan Real Estate Co., Ltd. ("Jiantou Xinyuan"), Xinyuan’s 45% owned subsidiary, has acquired two adjoining parcels of land in Zhengzhou, the capital city of central China’s Henan Province.
Jiantou Xinyuan paid a total of RMB253.2 million for the unencumbered land use rights for the two parcels, which offer a combined total site area of approximately 81,345 square meters. Based on pre-planning of the proposed development projects, Jiantou Xinyuan is expected to generate an estimated gross floor area of approximately 194,177 square meters from the properties.
"We are excited to be a part of yet another quality development in Zhengzhou," said Mr. Yong Zhang, Xinyuan’s chairman and chief executive officer. "Our business model has been successful in Zhengzhou and its proven results have contributed to our strong brand recognition. The newly acquired land is located next to one of Xinyuan’s developments under construction and we look forward to delivering another quality residential community to the people of Zhengzhou."
About Xinyuan Real Estate Co., Ltd.
Xinyuan Real Estate Co., Ltd. ("Xinyuan") (NYSE: XIN) is a fast-growing developer of large scale, quality residential real estate projects aimed at providing middle-income consumers with a comfortable and convenient community life. Xinyuan focuses on China’s Tier II cities, characterized as larger, more developed urban areas with above average GDP and population growth rates. Ranked #1 among all property developers in Zhengzhou in terms of contracted sales of residential units for the years 2004, 2005 and 2006, Xinyuan has expanded its network to cover a total population of over 34.5 million people in 6 strategically selected Tier II cities, including Chengdu, Hefei, Jinan, Kunshan, Suzhou and Zhengzhou. Xinyuan has completed 14 projects with a total gross floor area ("GFA") of over 1.0 million square meters within the past 10 years and as of December 31, 2007, Xinyuan had 8 projects under construction with a total GFA of 1.1 million square meters and 6 additional projects under planning with total GFA of 1.4 million square meters. With a focus on high asset turnover, efficient working capital management and strict cost control, Xinyuan is dedicated to bringing high-quality, affordable homes to China’s middle-income buyers. For more information, please visit http://www.xyre.com .
About Zhengzhou Jiantou Xinyuan Real Estate Co., Ltd.
Zhengzhou Jiantou Xinyuan Real Estate Co., Ltd. ("Jiantou Xinyuan") is a joint venture established under PRC law, of which, 45% is held by Xinyuan, 50% held by Zhengzhou General Construction Investment Company and the remaining 5% held by Zhengzhou Jiantou Project Consulting Co., Ltd. Under the relevant joint venture agreement, Xinyuan shares the profit or loss of Jiantou Xinyuan according to its equity interest percentage. Since Xinyuan only holds a minority interest in Jiantou Xinyuan, it does not have full control over its operations.
Safe Harbor Statement
This announcement may contain forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Statements that are not historical facts, including statements concerning Xinyuan’s beliefs, forecasts, estimates and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks that: any designs pre-planned by us or by Jiantou Xinyuan related to development projects of purchased properties may require modification, resulting in an increase or decrease in the gross floor area that we or Jiantou Xinyuan can develop from the properties; since we have a minority interest in Jiantou Xinyuan, we do not have full control of its operations and may not be able to control design modifications to its development projects or production schedules; if we do not maintain good relationships with our joint venture partners in Jiantou Xinyuan, our results of operations may be adversely affected; we or Jiantou Xinyuan may fail to obtain, or may experience material delays in obtaining necessary government approvals for any major property development, which will adversely affect our business; we or Jiantou Xinyuan may forfeit land to the PRC government if we or Jiantou Xinyuan fail to comply with procedural requirements applicable to land grants from the government or the terms of the land use rights grant contracts; if we are unable to successfully manage our expansion into other Tier II cities, we will not be able to execute our business plan; we face intense competition from other real estate developers; we may be unable to complete our property developments on time or at all; our results of operations may fluctuate from period to period; we are heavily dependent on the performance of the residential property market in China, which is at a relatively early development stage; the PRC government may adopt further measures to curtail the overheating property sector; PRC economic, political and social conditions as well as government policies can affect our business and other risks outlined in our public filings with the Securities and Exchange Commission, including our registration statement on Form F-1, as amended. All information provided in this press release is as of April 30, 2008. Except as required by law, Xinyuan undertakes no duty to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
For investor and media inquiries, please contact:
In China:
Ms. Lisa Wang
Director of Investor Relations
GM of Strategy, Investment and Finance Department
Tel: +86-10-6598-1626
Email: lisa.wang@xyre.com
Mr. Derek Mitchell
Ogilvy Public Relations Worldwide (Beijing)
Tel: +86-10-8520-6284
Email: derek.mitchell@ogilvy.com
In the United States:
Mr. Jeremy Bridgman
Ogilvy Public Relations Worldwide (New York)
Tel: +1-212-880-5363
Email: jeremy.bridgman@ogilvypr.com
