HANZHONG, China, March 18 /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 announced updates on
the Company's Ming Zhu Xin Ju ("Xin
Ju") Project and Ming Zhu Nan Yuan Phase II ("Nan Yuan II Project")
Project located in Hanzhong downtown, Shaanxi Province.
The Xin Ju Project comprises two high-rise apartment buildings
with a total Gross Floor Area ("GFA") of 42,476 square meters. At
the end of February 2010,
approximately 98% of the apartment units of Tower B of the Xin Ju
Project were already sold. The Company also completed construction
of the roof and is currently working on the interiors. In addition,
the Company has completed building the foundation for Tower A.
China HGS expects construction of Tower B and Tower A to be
completed and delivered to customers in September 2010 and June
2011, respectively.
The Nan Yuan II Project comprises four multi-layer resident
buildings and five high-rise apartment buildings. The construction
of the four multi-layer buildings are expected to be completed and
delivered to customers by the end of March
2010 and June 2010,
respectively. The Construction of five high-rise apartment
buildings is expected to be completed by March 2011. At the end of February 2010, about 57% of the entire project
was sold or reserved. The Nan Yuan Project has a total of three
phases, of which Phase I with a total GFA of 221,851 square meters
was delivered to customers in 2009, Phase II with a total GFA of
91,514 square meters is estimated to be completed and delivered in
March 2011, Phase III with a total
GFA of 63,671 square meters, will complete construction in
March 2011.
"Our Nan Yuan II and Xin Ju
Projects based in Hanzhong downtown are ahead of our estimated
schedule," commented Mr. Xiaojun
Zhu, Chairman and CEO of China HGS. "Market demand for high
quality and well-equipped residential properties continues to grow,
resulting in increased market recognition and strong sales for
China HGS, which is well-known for its superior quality residential
properties. We estimate the Xin Ju Project and the Nan Yuan II
Project to generate over RMB 170
million ($24.9 million) in
revenue for fiscal year 2010."
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 and Ming Zhu
Nan Yuan Phase II 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:
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.