HANZHONG, Shaanxi province, China, Nov. 14, 2011 /PRNewswire-Asia-FirstCall/ -- China HGS Real Estate Inc. (NASDAQ: HGSH) ("China HGS" or "the Company"), a leading residential and commercial property developer in China's southern Shaanxi province, today announced that the Company signed two residential-apartment bulk-purchase agreements (the "Agreements") with the Hanzhong Local Tax Bureau and the Hanzhong Social Insurance Center for the Company's "Mingzhu Beiyuan" project (currently under development) on October 18, 2011.
According to the Agreements, the Hanzhong Local Tax Bureau and the Hanzhong Social Insurance Center will purchase the residential apartments in the "Mingzhu Beiyuan" project at fixed price of RMB 278 per sq. ft. (approximately $43.78 per sq. ft.) for the first floor of each building. The unit price will increase by RMB 2.30 per sq. ft. (approximately $0.36 per sq. ft.) per floor, starting on the second floor of each building. China HGS is required to deliver the residential apartments to the buyers under the Agreements by June 2014. As of November 10, 2011, the Hanzhong Local Tax Bureau and the Hanzhong Social Insurance Center had purchased a total of 41 units of residential apartments at a total contract value of RMB 15 million (approximately $2.4 million). In addition, the Company has registered over 160 intended purchasers under the terms of the Agreements.
Prior to the Agreements with the Hanzhong Local Tax Bureau and the Hanzhong Social Insurance Center, China HGS had signed two bulk purchase agreements for the Mingzhu Beiyuan project this summer, for total a contract value of RMB 180 million (approximately $28.3 million).
"We are delighted to sign another two large-scale bulk-purchase agreements for our 'Mingzhu Beiyuan' project, which have further secured the future revenue streams for this project since the signing of two bulk purchase agreements this summer. We will strictly comply with the agreed terms to ensure the delivery of this high-quality project to our bulk purchase customers on a timely basis," commented Mr. Xiaojun Zhu, Chairman and Chief Executive Officer of China HGS Real Estate, Inc.
About China HGS Real Estate Inc.
China HGS Real Estate Inc., through its wholly owned subsidiary, Shaanxi Guangsha Investment and Development Group Co., Ltd., has specialized since 1995 in real estate development in China's third-tier and fourth-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-I real estate qualification and was ranked as the No. 1 property developer in Hanzhong, Shaanxi Province in terms of market share in 2007, 2008, 2009, and 2010 successively.
This press release contains certain statements that may include 'forward-looking statements'. All statements other than statements of historical fact included herein are 'forward-looking statements'. These forward looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website 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.
Investor Relations Contact:
Mr. Ran Xiong, Deputy GM
Mr. Crocker Coulson, President
Tel: +86 (91) 6262 2612
Tel: +1 (646) 213-1915 (New York)
Mr. John Harmon, CFA, Sr. Account Manager
Tel: +86-10-6561-6886 (Beijing)
SOURCE China HGS Real Estate Inc.