Agoracom Blog Small-Cap Feature: Xinyuan Real Estate Co., Ltd

Posted by AGORACOM at 9:30 AM on Monday, November 9th, 2009

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations – Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.


Xinyuan Real Estate Co., Ltd (NYSE:XIN)


Xinyuan Real Estate Co., Ltd. (NYSE: XINNews) is a developer of large scale, high quality residential real estate projects aimed at providing middle-income consumers with a comfortable and convenient community lifestyle. Xinyuan focuses on China’s Tier II cities, characterized as larger, more developed urban areas with above average GDP and population growth rates. Xinyuan is the first real estate developer from China to be listed on the New York Stock Exchange.

On November 9th 2009, the Company announced its Third Quarter Financial Results.

Check out the full details below:

Read Full Press Release

Chinese Stocks TV Segment


  • Total revenues were US$128.2 million, compared to US$91.8 million in the second quarter of 2009 and US$83.0 million for the same period of 2008.
  • Net income was US$15.4 million, compared to net income of US$3.9 million in the second quarter of 2009 and US$7.9 million for the same period of 2008.
  • Cash and cash equivalents, including restricted cash, increased by US$67.6 million to US$304.5 million as of September 30, 2009 from US$236.9 million as of June 30, 2009.


As always, these are my own views and conclusions.  Do your own due diligence.  I know this is one company that would benefit from online investor relations.

If you have any comments, I’d love to see them below.


We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. – tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.


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