Green Giant Inc. · OTC:GGEI
Green Giant — China HGS Real Estate — Investor Presentation (January 2010)
23 slides from Green Giant's investor presentation, Jan 26, 2010
Slide 1: China HGS Real Estate Inc. (OTC BB: CAHS)
China HGS Real Estate Inc. (OTC BB: CAHS) January 2010
Slide 2: Forward Looking Statement
2 Forward Looking Statement CAUTIONARY STATEMENT REGARDING FORWARD - - LOOKING STATEMENTS This presentation includes or incorporates by reference statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Slide 3: Equity Snapshot
3 Equity Snapshot OTC BB Listed CAHS Share Price (01/20/2010) $3.98 52 Week Range $0.02 - $4.00 Market Cap $179.5 Million Shares Outstanding* 45.1 Million Revenue (ttm) $28.5 Million Net Income (ttm) $11.1 Million EPS $0.28 Gross Margin 47.0% Net Margin 38.9% P/E (ttm) 14.2x * As of December 24, 200
Slide 4: Investment Highlights
4 § Rapidly growing real estate market in the tier II and tier III cities in China § Strong project pipelines under development and planning with 459,614 sq m GFA (Gross Floor Area) § Largest property developer in Hanzhong (3.8 m population) § Standardized, scalable model that emphasizes rapid asset
Slide 5: Company Overview
5 Company Overview § No.1 real estate developer with 47% market share in Hanzhong, a third-tier city in Shaanxi province with 3.8 million population § Real estate properties offered include: multi-layer, sub-high-rise, and high-rise apartment buildings § Majority of recent projects completed with gr
Slide 6: Promising Real Estate Opportunity in Tier II and Tier III cities
6 Promising Real Estate Opportunity in Tier II and Tier III cities § Increasing urbanization rate drives demand for real estate § Less significant and small-scale property bubbles in tier II and tier III cities relative to tier I cities § Attractive growth in resident disposable income boost demand
Slide 7: Hanzhong's Geographic Significance
7 Hanzhong’s Geographic Significance Weinan Hanzhong ü Located in the southwestern part of Shaanxi Province, Hangzhong is historically a strategic passageway liking northwest to southwest ü Located in the southeastern part of Shaanxi Province, Weinan the “Eastern Gate” connecting northwest to centra
Slide 8: Hanzhong - Culture Center in Central China
8 Hanzhong - - Culture Center in Central China Source: Shaanxi Statistical Bureau GDP (Hundred Million RMB) Average Disposal Income (RMB) Real Estate Investment (Hundred Million RMB)
Slide 9: Systematic & Standardized Project Development Process
9 • Pre-sale • Customer Financing Opportunity Identification Initial Planning Land Acquisition • Strategic Planning • Geographic and Market Analysis • Auction Opportunity Study • Feasibility • Preliminary Design • Costing and Financial Evaluation • Financial Projection • Internal Approval • Biding P
Slide 10: Solid Track Record of Completed Projects
10 Solid Track Record of Completed Projects Location Type of Projects Completion Date Total GFA (sq m) % of Units Sold Weinan Lijing Garden - Project I Weinan City M April 2005 44,373 100% Weinan Lijing Garden - Project II Weinan City M December 2006 55,390 100% Weinan Lijing Garden - Project III We
Slide 11: Under Construction and Planned Projects
11 Under Construction and Planned Projects Location Type of Projects Expected Completion Date Total GFA* (sq m) % of Units Pre-sold Projects under Construction Yangzhou Pearl Garden Yang County M December 2010 72,476 8.8% Mingzhu Xinju - Project I Hanzhong City M/S December 2010 42,476 62.5% Mingzhu
Slide 12: Competition
12 Competition § Dominant residential real estate development company in Hanzhong § Primary competitors include local and regional property developers § No direct competition from the increasing number of large national players in Tier II cities as HGS focuses on small to medium -size projects (in T
Slide 13: Competitive Strengths
13 • Recognized as "AAA Enterprise in Shaanxi Construction Industry" by Credit Association of Agricultural Bank of China, Shaanxi Branch • Disciplined bidding process • Senior management closely supervises management and planning process Forward looking land acquisition strategy focuses on locations
Slide 14: Target Customer Profile
14 Target Customer Profile Occupation Region Age Payment
Slide 15: Marketing Strategies
15 Marketing Strategies Key Marketing Strategies Advance sales - Pre sale of units when new buildings made available for trading Internal improvement - Enhanced designs for residential areas - Supporting infrastructure (roads, heating system, schools and hospitals) Other Marketing Initiatives Advert
Slide 16: Experienced Management Team
16 Experienced Management Team Zhu Xiaojun, President, CEO and Chairman - More than 20 years of experience in the real estate industry in China and a well-known industry leader - Rated as one of “Top 100 Management Elites in China’s Building Industry 2005” Ma Haizhu, Deputy General Manager - Solid b
Slide 17: Large-scale Real Estate Development
17 Large-scale Real Estate Development • Enormous market opportunity • Very low land acquisition cost Pricing strategy • High quality • Moderate pricing • Targeting middle income group Strict Cost Control • Long term construction partners • Supervision system • Efficient sales expenses Product Innov
Slide 18: Strong Revenue Growth
18 Strong Revenue Growth * Management Estimates
Slide 19: Attractive Net Income Growth
19 Attractive Net Income Growth * Management Estimates
Slide 20: Selected Income Statement
20 Selected Income Statement Fiscal Year Ended September 30 2009 2008 Real estate sales, net of sales taxes 28,459,176 17,249,539 Gross profit 13,375,159 8,087,591 Gross margin 47.0% 46.9% Operating income (loss) 11,402,326 6,289,037 Operating margin 40.1% 36.5% Net income (loss) $11,057,550 $6,019,
Slide 21: Selected Balance Sheet
21 Selected Balance Sheet Fiscal Year Ended September 30 2009 2008 ASSETS Current assets: Cash & cash equivalents $820,783 $2,121,060 Restricted cash 412,373 596,258 Real estate property development completed 2,392,003 13,657,042 Real estate property under development 42,522,287 22,699,749 Total cur
Slide 22: Investment Highlights
22 § Rapidly growing real estate market in the tier II and tier III cities in China § Strong project pipelines under development and planning with 459,614 GFA § Largest property developer in Hanzhong (3.8 m population) § Standardized, scalable model that emphasizes rapid asset turnover, efficient ca
Slide 23: Contact
23 Contact Company Contact China HGS Real Estate Inc. Mr. Ran Xiong, Deputy GM China HGS Real Estate Inc. Tel: +86-916-2622612 Email: xr968@163.net Investor Relations CCG Investor Relations Crocker Coulson, President Tel: +1-646-213-915 Email: crocker.coulson@ccgir.com Legal Counsel The Crone Law Gr
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