Businessweek

China HGS Real Estate Inc., through its subsidiary, Shaanxi Guangsha Investment and Development Group Co., Ltd., engages in real estate development, primarily in the construction and sale of residential apartments, car parks, and commercial properties, as well as office buildings. The company’s target market is western China. Projects The company develops 3 types of real estate projects, which might be developed in various phases, including multi-layer apartment buildings, which are 6 stories or less; sub-high-rise apartment buildings, which are 7 to 11 stories; and high-rise apartment buildings, which are 12 to 33 stories. The company has three primary projects that it is developing in Hanzhong City and one in Yang County, which is adjacent to Hanzhong City. Its primary projects located in Hanzhong City include Mingzhu Garden-Mingzhu Nanyuan, Mingzhu Beiyuan, Oriental Pearl Garden, and NanDajie (Mingzhu Xinju). In Yang County, its project is Yangzhou Pearl Garden. Majority projects are being developed in multiple phases. Projects located in Hanzhong City Mingzhu Garden-Mingzhu Nanyuan: Mingzhu Nanyuan consisted of multi-layer residential buildings, and sub-high-rise and high-rise residential buildings with commercial shops on the first floors, all of which have been completed as of September 30, 2012. The unsold property remained in 2 sub-high-rise and 2 high-rise residential buildings with total unsold gross floor area (GFA) of 33,389 square meters. Mingzhu Garden-Mingzhu Beiyuan: This project is located in the south west part of Hanzhong City. The project included 2 high-rise residential buildings with commercial shops located on the first floor with unsold GFA of 9,043 square meters as of September 30, 2012. The Mingzhou Beiyuan project under development includes 17 high-rise residential buildings with an estimated GFA of 350,000 square meters. Mingzhu Xinju: This project is located in the downtown of Hanzhong City. It consists of two residential high-rise buildings, with commercial shops located on the first floors. 2 buildings were completed with remaining unsold GFA of 9,633 square meters as of September 30, 2012. Oriental Pearl Garden: This project is located in the downtown of Hanzhong City and is under development. It consists of 12 high-rise residential buildings with commercial shops on the first and second floors with an estimated GFA of 260,000 square meters. Projects located in Yang County Yangzhou Pearl Garden consists of multi-layer residential buildings, and sub-high-rise and high-rise residential buildings with commercial shops on the first floors. As of September 30, 2012, the remaining completed portion of Yangzhou Pearl Garden included multi-layer residential buildings, commercial units, and sub-high-rise and high-rise residential buildings, with a total GFA of 50,445 square meters. Yangzhou Pearl Garden under development consisted of multi-layer residential buildings and high-rise residential buildings, with a total GFA of 99,038 square meters. Strategies The company’s business strategies include expanding in selected tier 3 and tier 4 cities; and quality control. Competition The company’s major competitors include regional real estate developers, such as Wanbang Real Estate Development Co. Ltd.; Jingtai Real Estate Development Co. Ltd.; and Shaanxi Fenghui Real Estate Development Co. Ltd., as well as other national real estate developer, including Evergrande Real Estate Group. History China HGS Real Estate Inc. was founded in 1995.