China HGS Real Estate to receive land use right or cash compensation

February 21, 2013

China HGS Real Estate announced that the Company was approved to receive additional 35.25 mu land use right or equivalent amount of cash compensation from the municipal government of Yang County. To date, the sales of all the contracted affordable apartments have been completed. The construction of some of these apartment buildings has been completed and some owners have started to move into their apartments. The company completed total contracted sales of 487 units of these affordable apartments with total GFA of 58,286.89 square meters. The related contracted sales revenues are estimated to be RMB124 million. These affordable apartment buildings used a land of 35.25 mu in total.