Xinyuan Real Estate Cuts FY16 Growth Forecast For Earnings, Contract Sales

(RTTNews) - China-based Xinyuan Real Estate Co., Ltd. (XIN) on Monday said it now expects full year 2016 contract sales to grow 20 percent-25 percent and net income to grow 20 percent-25 percent in RMB terms compared to 2015. In US dollar terms, the company expects full year contract sales to grow 12 percent-17 percent and net income to grow 12 percent-17 percent.

Previously, the company expected full-year contract sales to grow approximately 30 percent and net income to grow approximately 50 percent compared to 2015.

In the third quarter, net income increased to $28.0 million from $22.7 million last year. Net earnings per American Depositary Share attributable to shareholders were $0.41, compared to $0.31 in 2015.

Total third-quarter revenue increased 43.8 percent to $444.3 million from $309.0 million last year.

Contract sales climbed 69.6 percent to $525.4 million from $309.7 million a year ago.

The company noted that overall project sales remained active in the quarter aided by steady market demand resulting in GFA and ASP growth at the majority of its projects.

Separately, Xinyuan announced that its Board of Directors has declared a cash dividend for the third quarter of $0.05 per share, or $0.10 per ADS, which will be payable on December 15 to shareholders of record as of November 28.