I feel lucky to drop this stock several years ago after knowing the true color of the CEO. The price of the stock has dropped from height of over $100 to less than $1. What a ride. I am amazed by the growth of the number of the shares as the equities of the stock owners are diluted and stolen. Looking forward to another reverse split.
XIN fall to 78th(floor size) & 84th(revenue) from about 45th a few years ago.
No wonder they need to expand. Every one is expanding at about 30% per year.
The ranked #1 is 200 times larger than XIN
I went to oosten official site and went to the availability link, there are 7 pages of listed units, and only the first 2 pages of listed units are available and the rest 5 pages of listed units are on contract. That is about 2/3 units already on contract.
As the "Chinese big mother" are dropping their gold bars and real estate certificates to embrace stock certificates, A group of Shanghai stock analysts are calling for the return of 10000.
Basically XIN's is selling units for getting capital back from this project quickly. They are selling 10-20% less than market average and very likely at a loss. 0
If you do some google research on "vacancy rate in Chengdu", you'll find out that the grade A office commercial vacancy rate is between 20% and 40% from 2005-2014. XIN has 3 projects in Chengdu, one is Xinduhwei (translation from chinese) which is a retailer shopping center (not on sale yet). The retailer vacancy rate is stable and much better than office, although there are a lot of competition from internet. The other one you mentioned is Chengdu lake family, which is mixed-ued residential, retailer and commercial property and is on sale. I can not comment on this property as there are little information about it. The last is chengdu xinyan famous family, which has been sold out.
If XIN is losing money, I double they'll have money to purchase new lands.
In the quarterly report nov 11, 2014, the chengdu project just start selling at average price of 5296. All projects selling price is about the same as the last quarter. The only project that drop price almost half is suzhou colorful palace. This project has different types of units from luxury villa to condo. I don't know if it is due to demand or due to different types of units.
This single parcel of land is equivalent to the current market cap. Recent news from China shows that the top five developers have gained market share in china, but still only hold about 16% of total market share. Still a very fragment market. Consolidation is going on.