BEIJING and NEW YORK, April 28, 2011 /PRNewswire/ -- Kirin International Holding, Inc. (OTC BB: KIRI, the "Company"), the largest private developer of residential mixed-use properties in Xingtai, North China's oldest city, announced that its recently acquired and wholly-owned subsidiary, Kirin China Holding, Ltd. ("Kirin China") recorded earnings of $20.9 million for the year ended December 31, 2010, an increase of 156% over 2009. Revenues hit $51.3 million for 2010, up 123% over 2009. Kirin China's Gross Margin for 2010 was 45.2% of sales compared to 24.5% for the prior year period. "The build-out of our Kirin County residential community project in Xingtai drove these increases," said Kirin Chairman and Founder Mr. Jianfeng Guo. "We also sold several higher-margin commercial buildings in Kirin County and that contributed to the bottom line growth," added Chairman Guo. The Company debuted on the U.S. public markets last month.
Kirin China's balance sheet reflected growth in 2010, with total assets more than doubling to $130.0 million from $62.0 million in 2009. Total stockholders' equity increased to $68.4 million, up 76.7% from $38.7 million in 2009.
As previously disclosed in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on March 7, 2011 (the "Original 8-K"), the Company acquired Kirin China in a reverse acquisition on March 1, 2011. On April 28, 2011, the Company filed an amendment (the "Amendment") to the Original 8-K. The Amendment includes the audited consolidated financial statements of Kirin China and its subsidiaries for the years ended December 31, 2010, 2009 and 2008.
The Company's projects are currently concentrated in the southern area of Hebei Province of the PRC, primarily in the city of Xingtai, approximately three hours south of Beijing, and nearby regions. The Company's real estate developments target first-time, owner-occupied homebuyers consisting primarily of young urban professional families and middle class clients. According to the Company, approximately half of its homebuyers pay cash for their housing units and another quarter of their purchasers make 50% down payments.
The Company believes its home market of Xingtai demonstrates the real estate development potential of China's Third Tier cities: continued urban migration, a balanced and growing economy, the need for trade up housing from an emerging middle class eager and willing to improve itself economically, and greater relative affordability than the PRC's First Tier and megacities.
In addition to its projects in Xingtai, the Company has started gaining knowledge on property conditions and related land and development approval procedures in Shijiazhuang of Hebei Province and in Dezhou and Tai'an of Shandong Province, and the suburban area of Tianjin, all adjacent to the Beijing-to-Shanghai high-speed rail corridor.
Ms. Cindy Zheng, CFO, Kirin International Holding, Inc.
+86 186 1025 7686
Mr. Dan McClory, Managing Director, Hunter Wise Financial Group, LLC
+1 949 732 4102
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of the Company's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements.
Such statements include, among others, those concerning market and industry segment growth and demand for the Company's communities; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China, as well as all assumptions, expectations, predictions, intentions or beliefs about future events.
Therefore, you should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The following factors, among others, could cause the Company's actual results to differ materially from those anticipated in such forward-looking statements: business conditions in China; general economic conditions; geopolitical events and regulatory changes; availability of capital; the Company's ability to maintain its competitive position; the Company's dependence on key management; and other factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
SOURCE Kirin International Holding, Inc.