[photopress:xinyuan.jpg,full,alignright]Zhengzhou based Xinyuan Real Estate saw its shares fall after the company posted a fourth-quarter net loss attributable to common shareholders of $176.2 million.
In fact, this was attributed by the company to a one-time, non-cash deemed dividend of $182 million as a result of a waiver of the contingent conversion option contained in its Series A convertible preference shares.
On a net basis, earnings rose 81.1% to $6.57 million from $3.63 million.
Revenue for the quarter ended December 31 more than doubled to $91.4 million from $42.7 million.
All of which is a bit complex but seems to suggest the company was doing very well except for that one-time $182 million.
However, the company said it will not provide ‘forward guidance’ at this time due to the existing uncertainty related to the current regulatory market in China. It specifically pointed to the way in which recent austerity measures tightening the availability of credit may impact its future financial results and, equally, on its ability to predict future profits. What Xinyuan is saying is that at the moment this is an uncertain market. Few would argue.
You must log in to post a comment.