Green Giant Inc. · OTC:GGEI
Green Giant — China HGS Real Estate — Investor Presentation (December 2009)
24 slides from Green Giant's investor presentation, Dec 14, 2009
Slide 1: Cy DIXIE
Cy DIXIE yp CHINAHGS
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
PHIXT g Statement CHINAHGS 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 Sec
Slide 3: Equity Snapshot
WANANAY, DMX IB CHINAHGS Equity Snapshot OTC BB Listed: Share (12/09/2009) 52 Week Range Market Cap $74.3Million Shares Outstanding: Revenue*: $22.2 Million Net Income*: P/E*: 9.0x Revenue**: Net Income**: $12.4 Million * For twelve months ending December 31, 2008 * For twelve months ending December
Slide 4: Investment Highlights
PHIXT AST Investment Highlights Rapidly growing real estate market in the tier II and tier Ill cities in China Strong project pipelines under development and planning with 398,438 GFA Largest property developer in Hanzhong (3.8 m population) Standardized, scalable model that emphasizes rapid asset t
Slide 5: Business Overview
PHIXT CHINAHGS Business 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 A majority of recent projects complet
Slide 6: Corporate structure of China HGS Real Estate Inc.
(PINT BB CHINAHGS China HGS Real Estate Inc. (CAHS) 100% Entrusted China HGS Investment Inc. (A Delaware Company) enero ‘Agreement Outside China Inside China Shaanxi Hanguangsha Management and Consultation Limited Company (Shaanxi HGS) y Contractual VIE Agreement (1) = M CEO of Shaanxi Shaanxi Guang
Slide 7: Promising Real Estate Opportunity in Tier II and Tier III cities
ipmXs eB mising Real Estate Opportunity CHINAHGS in Tier II and Tier Ti cities to tier | cities Percentage of urban population in China's total population 50 40 30 20 (q)eBeueoed 10 Significantly less competition in tier III cities Increasing urbanization rate drives demand for real estate Less sign
Slide 8: Hanzhong's Geographic Significance
PT & Hanzhong’s Geographic Significance ¥ Located in the southwestern part of Shaanxi Province, Hangzhong is historically a strategic passageway liking northwest to southwest ¥ Located in the southeastern part of Shaanxi Province, Weinan the “Eastern Gate” connecting northwest to central China
Slide 9: Hanzhong - Culture Center in Central China
PIT & Hanzhong — Culture Center in Central China GDP (Hundred Million RMB) Average Disposable Income eegad § estment Tl (Hundred Mi eesuserugy Source: Shaanxi Statistical Bureau ux
Slide 10: Systematic & Standardized Project Development Process
Systematic & Standardized Projec Development Process Project Construction [| Pre-sale, sale After-sale, & & Marketing Service Management Project Land Acquisition Process Planning & Design A systematic and standardized process to proj p j hich is implemented through several
Slide 11: Completed Projects
Location Type of Completion TotalGFA’ Gross Projects Date (sqm) Margin Fcompitearocts Weinan Lijing Garden - Project | Weinan Multilayer April 2005 44,373 49.3% Weinan Lijing Garden -Project Il | Weinan Multi-layer December 55,390 50.5% 2006 Weinan Lijing Garden -Project Ill | Weinan Multi-layer Jun
Slide 12: Projects Under Construction and Planning
A Bat eM al Under Construction and Pl: CHINAHGS Location Type of Expected Total % of Units Projects Completion GFA’ (sqm) Sold Date Proncesncercensucion | || Yang Xian Yang County December 2010 72,476 8.8% Nan Da Street Hanzhong City MIS December 2010 21,950 625% Mingzhu Real Estate Hanzhong City MI
Slide 13: Big Real Estate Investors in Hanzhong, 2008
Be XV CHINAHGS Big 5 Real Estate Investors in Hanzhong, 2008 A . . (Investment) = Dominant residential real estate 35000 | e300 development company in Hanzhong 30000 26648 = Primary competitors include local and 25000 regional property developers gin = No direct competition from the increasing 15000
Slide 14: Competitive Strengths
(PHT CHINAHGS WANANAY, Competitive Strengths + Recognized as “AAA Enterprise in Shaanxi Construction Industry” by Credit High Standard Quality Association of Agricultural Bank of China, Shaanxi Branch Control + Disciplined bidding process + Senior management closely supervises management and plannin
Slide 15: Our Target Customer Profile
PHXT We Target Customer P; CHINAHGS Occupation Region 5% 10% 40% 30% . . . . Moet craracenwany ciety Resrenpievararennet Farmer = Seasonal worker =Local residents = Residents nearby Age Payment 10% 0% 30% malaga ae e304) poversn =Self-owned Capital = Mortgage Loan
Slide 16: Our Marketing Strategies
PHXT We Marketing Strategies CHINAHGS 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 Init
Slide 17: Experienced Management Team
(PIAS Ie Experienced Management Team CHINAHGS Zhu Xiaojun, President, CEO and Chairman - More then 20 years experience in the real estate industry in China and a well-known leader in the industry - Rated as one of “Top 100 Management Elites in China’s Building Industry 2005” Ma Haizhu, Deputy Genera
Slide 18: Strict Cost Control and Growth Goal
(PHT CHINAHGS Ret cueb Roel Strict Cost Control Estate Development + Long term + Enorme construction partners stu + Supervision system lo + Efficient sales expenses Product Innovation Pricing strategy + Design + Project management + Heating Services HGS Goal To become the leading residential propert
Slide 19: CF omer
CF omer CHINAHGS 40 30 = = = 20 3 B $26.4 10 $12.3 o+ : 1 1 2007 2008 2009E
Slide 20: CF omer
CF omer CHINAHGS 15 $US Million a 2007 2008 2009E
Slide 21: Selected Income Statement
CHINAHGS Real estate sales, net of sales taxes Gross profit Operating income (loss) Net income (loss) Si PHXT Be Selected Income Months Ended June 30, (Unaudited) 901,029 292,051 79,135 -133,558 6,906,700 3,448,778 3,229,142 3,188,836 Fiscal Year Ended December 31, 22,244,647 10,258,874 8,608,569 8,
Slide 22: Selected Balance Sheet
ip CHINAHGS ASSETS: Current assets: Cash & cash equivalents Restricted cash Real estate property development completed Real estate property under development Total current assets Property, plant and equipment, net Total Assets LIABILITIES AND SHAREHOLDERS’ EQUITY Total current liabilities Total shar
Slide 23: Investment Highlights
PHIXT Ararat) at Investment Highlights Rapidly growing real estate market in the tier II and tier Ill cities in China Strong project pipelines under development and planning with 398,438 GFA Largest property developer in Hanzhong (3.8 m population) Standardized, scalable model that emphasizes rapid
Slide 24: Contact Information
CE XT CHINAHGS Contact Information China HGS Real Estate Inc. Mr. Ran Xiong, Deputy GM China HGS Real Estate Inc. Tel: +86-916-26226 12 Email: xr968@ 163.net Independent Auditor: Investor Relations CCG Investor Relations Crocker Coulson, President Tel: +1-646-213-1915 Email: crocker.coulson@ccgir.co
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