China HGS Real Estate Inc. (Nasdaq: HGSH) reported increased revenue and income for the first quarter of fiscal 2021.
The regional real estate developer based in Hanzhong, said in its report today that its revenue for the three months ended December 31, 2020, reached $2.8 million, up 19.6% year-over-year. Net income, the company added, was $300,000, compared with a net loss of $300,000 from last year.
In December, the company announced the establishment of a sales center for the Liangzhou Mansion project, which is a part of the Liangzhou road real estate project. The announcement lifted its share price by 133.52% to $4.07 on the day.
The project consists of 7 high-rise residential buildings and commercial shops with a total planned GFA of 160K sq. mt located in the downtown of Hanzhong city.
According to Nikkei, China's regional governments are taking in whopping proceeds from land sales equivalent to more than half of the country's combined tax revenue. Last year, sales of government land in China generated 16% more in revenue at 8.41 trillion yuan.
In the top-tier cities including Beijing, Shanghai, Guangzhou and Shenzhen, the extra liquidity from coronavirus relief has sent an influx of money into their property markets. Condo sales have picked up, Nikkei added.
Founded in 1995, China HGS is focusing on the development of high-rise, sub-high-rise residential buildings and multi-building apartment complexes in China's Tier 3 and Tier 4 cities.
Shares in HGS closed at $2.6, up 6.12%.