COMPANY DESCRIPTION
Xinyuan Real Estate Co., Ltd (Xinyuan) is a developer of large-scale, high-quality multiple rise apartment buildings aimed at providing middle-income consumers with a comfortable and convenient community lifestyle. Xinyuan focuses on China’s Tier 2 cities, characterized as larger, more developed urban areas with above average GDP and population growth rates, and has differentiated itself by its strong reputation and brand recognition especially in the Henan province. The Company currently operates in seven strategically selected Tier 2 cities: Zhengzhou, Hefei, Jinan, Kunshan, Suzhou, Xuzhou and Chengdu. EI helped lead the Company’s 2007 initial public equity offering on the New York Stock Exchange (NYSE:XIN), where it was the first and only Chinese homebuilder listed on the NYSE. EI sold its interest in Xinyuan through a series of market sales in 2010.

MARKET OVERVIEW
The massive urbanization and growth of the middle class in China have resulted in significant demand for housing, including in China’s second-tier cities with populations of more than three million people. Greater affordability, rising income levels, availability of consumer credit and strong demand for home ownership have resulted in considerable residential growth in Xinyuan’s target markets. In addition, significant barriers such as capital constraints and complicated land acquisition and entitlement have historically limited new competition and adequate supply.