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China Housing 2009 Preliminary Fourth Quarter and Annual Contract Sales Exceed Previous Outlook
Press Release Source: China Housing & Land Development, Inc. On Tuesday January 19, 2010, 9:00 am EST
XI'AN, China, Jan. 19 /PRNewswire-Asia-FirstCall/ -- China Housing & Land Development, Inc., ("China Housing" or the "Company," Nasdaq: CHLN) today reported preliminary results for the fourth fiscal quarter and annual results ended December 31, 2009, significantly exceeding previous guidance.
During the fourth quarter of 2009, contract sales totaled RMB 280.5 million (US$41.1 million) of residential and commercial unit sales from the JunJing II Phase One, Phase Two, Tsining 24-G and Puhua Phase One Projects, representing a total of 58,672 square meters. Previous guidance was US$32 to 34 million in contract sales, and 46,000 to 48,000 square meters Gross Floor Area ("GFA"). The Company's average selling price per square meter in the fourth quarter 2009 was RMB 4,780.
The Company's whole year contract sales totaled RMB 709.9 million (US$103.9 million), representing a total of 146,973 square meters, exceeding previous guidance of US$86 million to US$88 million in contract sales and 130,000 to 132,000 square meters.
Puhua Phase One, the Company's first project in the Baqiao Development Region, started to contribute contract sales in the fourth quarter 2009. Puhua Phase One and JunJing II Phase Two are currently the Company's major development projects and generated the majority of contract sales in the fourth quarter of 2009.
Sales contracts are reported under the percentage of completion accounting method for revenue recognition and may not be fully recognized in the fourth quarter.
According to data from E-house (China) and the Xi'an Bureau of Statistics, which track sales statistics in China's real estate market, Xi'an residential sales in the fourth quarter 2009 totaled 5.13 million square meters for an average selling price of RMB 5,000 per square meter, a 66% increase in volume and 0.8% increase in prices compared to third quarter of 2009 results of 3.09 million square meters in sales for an average selling price of RMB 4,962 per square meters.
During 2009, the average selling price of residential units in Xi'an increased 11.2% from RMB 4,349 in January to RMB 4,835 per square meter in December, while volume increased significantly from 0.32 million square meters in January to 2.35 million square meters in December. Total sales volume in 2009 was 12.7 million square meters.
Mr. Xiaohong Feng, Chief Executive Officer of China Housing & Land Development said, "We are pleased with our fourth quarter sales results, and glad to see strong sales coming from the Puhua project. We are also encouraged by the increasingly strong sales momentum seen throughout the fourth quarter."
Commenting on a series of national policies imposed on the Chinese real estate market, Mr. Feng said, "We believe the impact of Policy changes might be limited on China Housing." Mr. Pingji Lu, Chairman of China Housing and Land Development added, "Most of these policies target to reduce speculation and limit unreasonable housing price increases, especially in the tier-1 cities, in order to enable more people to buy their own properties. As China Housing and Land Development mainly targets middle-income, first-time home buyers or customers upgrading self-owned properties in Tier 2-3 cities, we see limited impact from such policies, which are further validated by our results and low housing vacancy rates for our projects, or in other words, low speculation levels."
Based in Xi'an, the capital city of China's Shaanxi province, China Housing & Land Development, Inc., is a leading developer of residential and commercial properties in northwest China. Since 1992, China Housing has been engaged in the acquisition, development, management, and sales of residential and commercial real estate properties and land through its wholly-owned subsidiaries in China.
China Housing & Land Development is the first and only Chinese real estate development company traded on NASDAQ.
By leveraging its strong relationships with China's local state authorities, China Housing & Land Development has been able to capitalize on the supply of available land and develop residential and commercial properties, further increase China Housing's brand recognition, and outperform its competitors in medium size residential and commercial real estate developments in greater Xi'an.
Located in Xi'an, China Housing & Land Development is a leading real estate developer of residential and commercial buildings and land in northwest China.
- China Housing & Land Development is the number 1 residential real estate development company in Xi'an, Shaanxi Province, China.
- Favorable market growth and demographic trends in Shaanxi Province are driving the company's substantial pipeline of residential and commercial development projects.
- The company's preeminent position in residential housing development is permitting the company to increase its penetration in the residential and commercial property development market in Shaanxi Province.
- The company's competitive advantages include an eight year history of market leadership, brand recognition, and established relationships with key decision makers, as well as an unblemished record of outstanding architecture, engineering, and construction.
- The company enjoys a good depth of management and technical expertise.
- Company leaders own significant shares.
- The company expects to continue its strong operations, to gradually accelerate its long-term revenue and earnings growth, and to boost its potential for sustained attractive long-term returns on investment.
- The company reports using U.S. GAAP accounting and complies with all SEC reporting requirements. Its independent auditor is MSCM LLP in Toronto, Ontario, Canada; the firm was previously named Moore Stephens Cooper Molyneux LLP.