China HGS Real Estate Inc. (China HGS), along with its subsidiaries and variable interest entity (VIE), engages in real estate development, in the construction and sale of residential apartments, car parks and commercial properties. The Company conducts all of its business through its Shaanxi Guangsha Investment and Development Group Co., Ltd. (Guangsha) subsidiary. All of its business is conducted in mainland the People�s Republic of China. The Company focuses to expand selected Tier II and Tier III cities and counties. It develops three types of real estate projects, which may be developed in one or more phases, including multi-layer apartment buildings, which are six stories or less; sub-high-rise apartment buildings, which are seven to 11 stories, and high-rise apartment buildings, which are typically 12 to 33 stories. As of September 30, 2010, it had three projects that it was developing in Hanzhong City and one in Yang County, which is adjacent to Hanzhong City.