China Real Estate Information Corporation (CRIC – a subsidiary of E-House) released estimated 2015 sales data for the country’s top 100 property developers. (LINK)
Xinyuan China is shown at #73 with estimated sales of 13.5Bn RMB
CRIC does not have access to any official company records and compiles its estimates from 3rd party sources like municipal data. “Sales” estimated by CRIC are never going to equal “contract sales” reported under US GAAP financial statements. Some of the sales in the CRIC data do not end up being closed and some are recognized in later periods (Xinyuan does not book a “contract sale” until it has received 30% of the price in cash). Even though the numbers don’t match, CRIC data in prior quarters has been a good indication of the trend in Xinyuan results:
Conclusions from this week’s data:
- a very strong 4Q and full year performance from Xinyuan
- a strong performance relative to the industry (national ranking improved from #84 in 2014 to #73 in 2015)
- improved asset turnover and progress towards deleveraging
Note: edited 1/11 for clarity
Koneko Research 