IF this helps? I recalled reading an explanation of their business model in a Qtrly but was not able to locate it. What I did find is one in the same though a shortened version from the Sept 11, '13 article by SeekingAlpha titled Xinyuan Real Estate Property Visit Highlights Promising Outlook. The following quote is under the subtitle Perspective on Xinyuan Shares as follows "•Low Debt/High Asset turnover. Xinyuan is the only small developer with cash in excess of debt. Most developers pursue a land banking strategy of locking up development sites 3-5 years in advance of construction. During that idle period the land purchase cost must be financed with debt. In contrast, Xinyuan typically only buys land for immediate development - this minimizes the debt financing requirement and quickly recaptures the capital spent on land acquisition."
IF you need further clarification rather than look through several Qtrlys i'd suggest contact IR. Keep in mind China's lending rates and practices are different than what we are use to along with the government releasing land for sale. When your in the biz and all of a sudden a fine location cmes on the sale block via "the gov't" it's nice to have some cash to flash. I agree with a fellow poster mentioning the issuing of the bonds as a good idea of keeping the cash leverage. Also there are those that want to see bonds and a culture at XIN that prides itself to model itself after the big boys hence the NYSE listing and the shoot for the moon perspective. Maybe at 13.25% not the best financially but XIN wants to include bonds in their bigger picture outlook. That's my 2 cents ...... enjoy any non company bad news pullbacks as it's part of the up-hill climb =s $$$ in our pockets