[China HGS Real Estate Inc. (OTC BB: CAHS) January 2010 2 CAUTIONARY STATEMENT REGARDING FORWARD - LOOKING STATEMENTS 3 Equity Snapshot OTC BB Listed CAHS Share Price (01/20/2010) 52 Week Range $0.02 - $4.00 Market Cap $179.5 Million Shares Outstanding* 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] [FORM 8-K CURRENT REPORT Date of Report (Date of Earliest Event Reported): January 25, 2010 CHINA HGS REAL ESTATE INC. Florida 000-49687 33-0961490 (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 6 Xinghan Road, 19th Floor, Hanzhong City Shaanxi Province, PRC 723000 (212) 232-0120 N/A (Former name or former address, if changed since last report) see]

[CHARTER OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS OF CHINA HGS REAL ESTATE INC. ADOPTED AS OF JANUARY 22, 2010 I. PURPOSE AND AUTHORITY OF THE COMMITTEE II. COMPOSITION OF THE COMMITTEE 1 III. MEETINGS AND PROCEDURES OF THE COMMITTEE 2 IV. COMMITTEE AUTHORITY AND RESPONSIBILITIES The Committee shall: A. Financial Statement and Disclosure Matters 1. Meet with] [CHARTER OF THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF CHINA HGS REAL ESTATE INC. ADOPTED AS OF JANUARY 22, 2010 I. PUPOSE AND AUTHORITY OF THE COMMITTEE II. COMPOSITION OF THE COMMITTEE 1 III. MEETINGS AND PROCEDURES OF THE COMMITTEE The Committee shall meet as often as its members deem necessary to fulfill the Committee’s responsibilities. A majority] [CHARTER OF THE NOMINATING AND CORPORATE GOVERNANCE COMMITTEE OF THE BOARD OF DIRECTORS OF CHINA HGS REAL ESTATE INC. ADOPTED AS OF JANUARY 22, 2010 I. PURPOSE AND AUTHORITY OF THE COMMITTEE II. COMPOSTION OF THE COMMITTEE 1 III. MEETINGS AND PROCEDURES OF THE COMMITTEE IV. COMMITTEE AUTHORITY AND RESPONSIBILITIES 1. Developing the criteria and qualifications for membership on the] [CHINA HGS REAL ESTATE INC. CODE OF CONDUCT This Code of Conduct of China HGS Real Estate Inc. (“China HGS” or the “Company”) provides the standards by which the Company’s employees, officers and directors should conduct themselves. It is the Company’s goal to foster the highest possible ethical standards in its employees’, officers’ and directors’ interactions with each other, customers,] [CHINA HGS REAL ESTATE INC. STATEMENT OF POLICY ON INSIDER TRADING Adopted January 22, 2010 Introduction All personnel must maintain a basic familiarity with the principles and purposes of these laws as they may be applied to Home System, and avoid any activity that might violate these laws or give any appearance either of a violation. This policy statement has] [Item 8.01 Other Events.]

[January 13, 2010 100 F Street, NE Dear Ladies and Gentlemen: Sincerely, Bagell, Josephs, Levine & Company, LLC] [China HGS Real Estate Inc. (the “Company”) was notified that the audit practice of Bagell, Josephs, Levine & Company, LLP, the Company’s independent registered public accounting firm (“BJL”), was combined with Friedman LLP (“Friedman”) effective as of January 1, 2010. On January 12, 2010, BJL resigned as the independent registered public accounting firm of the Company and, with the approval]

[FORM 8-K CURRENT REPORT Date of Report (Date of Earliest Event Reported): January 6, 2010 CHINA HGS REAL ESTATE INC. Florida 000-49687 33-0961490 (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 6 Xinghan Road, 19th Floor Hanzhong City, Shaanxi Province People’s Republic of China, 723000 (212) 232-0120 N/A (Former name or former address, if changed since]