BEIJING and NEW YORK, Oct. 11, 2011 (GLOBE NEWSWIRE) -- Kirin International Holding, Inc. (OTCBB:KIRI), the largest private developer of residential mixed-use properties in Xingtai, North China's oldest city, announced that today it has officially obtained the Presale Permit from the Xingtai Administration Bureau of Real Estate for Kirin Bay. It will enable the company in Q4 2011 to generate about $35 million sales in contact sales and receive 50%-60% cash of the amount of contract sales.
Kirin Bay is one of its major master-planned developments. Kirin Bay covers a land area of over 660,000 square meters, and the Company expects it to become the largest high-end residential community in Xingtai upon completion. The project is comprised of three sections of mixed use, residential and commercial properties. The Company expects to commence construction of Kirin Bay in October 2011. The first phase residences are expected to be delivered by the end of 2013 while final phase residences are expected to be delivered in May 2015.
"The Presale Permit for Kirin Bay project is a great step forward for Kirin International Holding, Inc.," said Kirin CEO Mr. Longlin Hu. "Upon the receipt of the Presale Permit, we can launch various marketing campaigns to boost the sales of our project. As the Chinese government authorities become more and more strict on presales management, only upon the issuance of the presale permit can a real state company to start to sign contacts with potential buyers," Mr. Hu stated. "Kirin will take advantage of the best selling period of October and November to market our Kirin Bay master-planned community project to the citizens of Xingtai. We also believe our financial performance will be positively improved by the on-time issuance of the Presale Permit. We estimate that Kirin Bay project will bring us contact sales in the last quarter of about $35 million and the cash received will be about to 50% to 60% of the contact sales," concluded Mr. Hu.
Kirin'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. Kirin's real estate developments target first-time, owner-occupied homebuyers consisting primarily of young urban professional families and middle class clients. According to Kirin, approximately half of Kirin's homebuyers pay cash for their housing units and another quarter of their purchasers make 50% down payments.
In addition to its projects in Xingtai, Kirin China 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 recently-opened Beijing-to-Shanghai high-speed rail corridor.
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 (www.sec.gov/">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.
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