HANZHONG, China, July 20 /PRNewswire-Asia-FirstCall/ -- China HGS
Real Estate Inc. (OTC Bulletin Board: CAHS) ("China HGS" or "the
Company"), a leading residential property developer in Hanzhong,
China, today provided updates on
the Company's Ming Zhu Xin Ju Project ("Xin Ju"), Ming Zhu Nan Yuan
Project Phase II and Phase III, and Yang Zhou Ming Zhu Project
("Yang Zhou"), all located in Shaanxi
Province, China.
The Company's Xin Ju Project in Hanzhong's downtown comprises
two high-rise apartment buildings (Tower A and Tower B) with a
total Gross Floor Area ("GFA") of 42,476 square meters. As of the
end of June 2010, approximately 96%
of the entire project had been sold. The Company is on schedule to
complete and deliver Tower A, with a GFA of 20,500 square meters,
in June 2011. As a result of improved
project planning and highly efficient project management, China HGS
completed construction and delivery of Tower B, with a GFA of
21,900 square meters, significantly ahead of schedule in
June 2010.
The Company's Nan Yuan II Project in downtown Hanzhong comprises
four multi-layer residential buildings and five high-rise apartment
buildings. China HGS has completed construction of four multi-layer
buildings and these units were delivered to customers in
March 2010. The construction of two
of the five high-rise apartment buildings (Building #27 and
Building #28), with a total GFA of 30,300 square meters, is
expected to be completed by November
2010. At the end of June 2010,
about 80% of Building #27 and Building #28 had been either sold or
reserved. Construction of two of the remaining three buildings is
expected to be completed and delivered to customers in March 2011 and the third building is expected to
be constructed and delivered to customers in September 2011.
The entire Ming Zhu Nan Yuan Project has a total of three
phases, of which construction of Phase I with a total GFA of
221,851 square meters was completed and delivered to customers in
2009, construction of Phase II with a total GFA of 91,514 square
meters is estimated to be completed and delivered in September 2011, construction of Phase III with a
total GFA of 63,671 square meters, will be complete in March 2011.
China HGS recently commenced construction of over 10 multi-layer
buildings at its Yang Zhou project
in Yang County, which is expected to be completed over the course
of 2011 and 2012
"We are pleased to report that our Xin
Ju project was nearly sold out at the end of June 2010, reflecting the continued strong demand
in the Hanzhong residential property market," commented Mr.
Xiaojun Zhu, Chairman and CEO of
China HGS. "Despite the tightening measures undertaken by the
Chinese government in 2010 to control the overheated real estate
market in certain Tier 1 cities, Hanzhong and the surrounding areas
have continued to be vibrant markets during the first half of 2010.
Increasing flow of the population into urban areas, rising incomes,
and affordable housing costs have contributed to strong demand,
primarily by first-time homeowners. We are very confident that the
economic growth in Hanzhong will continue to exhibit robust growth
for the next several years, resulting in stable and growing demand
for real estate."
"We also expect the new multi-layer buildings we are
constructing in Yang County to make meaningful revenue
contributions over the next two years. We remain confident in our
ability to meet our 2010 fiscal year guidance of revenue of
approximately $47.5 million to $49.0
million and net income of $15.5
million to $16.0 million," added Mr. Zhu.
About China HGS Real Estate Inc.
China HGS Real Estate Inc., through its wholly-owned subsidiary,
Shaanxi Guangsha Investment and Development Group Co., Ltd.,
specializes in real estate development in China's second-tier and third-tier cities. The
Company's real estate properties include multi-layer,
sub-high-rise, and high-rise apartment buildings. The Company
possesses the national grade II real estate qualification and was
ranked as the No. 1 property developer in Hanzhong, Shaanxi Province in terms of market share in
2007 and 2008 successively.
Forward-looking Statements:
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995: Certain statements in this press release
constitute forward-looking statements for purposes of the safe
harbor provisions under The Private Securities Litigation Reform
Act of 1995. These statements include, without limitation,
statements regarding the company's financial estimates and
construction timeline of the Ming Zhu Xin Ju Project, Ming Zhu Nan
Yuan Project Phase II and III, and Yang Zhou Ming Zhu Project; and
predictions and guidance relating to the Company's future financial
performance. We have based these forward-looking statements largely
on our current expectations and projections about future events and
financial trends that we believe may affect our financial
condition, results of operations, business strategy and financial
needs but they involve risks and uncertainties that could cause
actual results to differ materially from those in the
forward-looking statements, which may include, but are not limited
to, such factors as unanticipated changes in demand especially in
the residential property market of tier II and tier III cities, the
Company's ability to secure financing for land use rights
acquisition and property development, meet the planned property
development schedule, reliance on third-party contractors, changes
in government regulations, risk of default by customers on the
Company guaranteed mortgage loans, increase in the cost of raw
materials, downturns in the Chinese economy, and other information
detailed from time to time in the Company's filings and future
filings with the United States Securities and Exchange Commission.
You are urged to consider these factors care in evaluating the
forward-looking statements herein and are cautioned not to place
undue reliance on such forward-looking statements, which are
qualified in their entirety by this cautionary statement. The
forward-looking statements made herein speak only as of the date of
this press release and the Company undertakes no duty to update any
forward-looking statement to conform the statement to actual
results or changes in the company's expectations.
For more information, please contact:
Company Contact:
Mr. Ran Xiong, Deputy GM
Email: xr968@163.net
Tel: +86-916-2622612
Investor Relations Contact:
CCG Investor Relations
Mr. Crocker Coulson, President
Email: crocker.coulson@ccgir.com
Tel: +1-646-213-1915 (NY office)
Elaine Ketchmere, Partner
Email: Elaine.ketchmere@ccgir.com
Tel: +1-310-954-1345 (LA office)
SOURCE China HGS Real Estate Inc.