Green Giant (GGEI) 10-Q 17 May 21 2021 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2021	May 14, 2021
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Registrant Name	CHINA HGS REAL ESTATE INC.
Entity Central Index Key	0001158420
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Trading Symbol	HGSH
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		22,525,000
Title of 12(b) Security	None

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2021	Sep. 30, 2020
ASSETS
Cash	$ 555,576	$ 457,699
Restricted cash	3,297,734	3,409,837
Contract assets	15,195,730	14,255,328
Real estate property development completed	93,359,420	94,671,258
Other assets	9,709,848	8,132,555
Property, plant and equipment, net	567,292	571,330
Security deposits	1,922,853	1,855,506
Real estate property under development	251,151,767	227,741,017
Due from local governments for real estate property development completed	2,973,777	2,869,623
Total Assets	378,733,997	353,964,153
LIABILITIES AND STOCKHOLDERS' EQUITY
Construction loans	116,060,624	109,937,408
Accounts payables	31,854,281	25,415,352
Other payables	4,569,384	4,028,048
Construction deposits	3,318,974	3,202,730
Contract liabilities	1,885,982	1,847,685
Customer deposits	21,498,027	19,405,528
Accrued expenses	1,861,745	1,920,370
Taxes payable	20,592,607	19,881,211
Total liabilities	201,641,624	185,638,332
Commitments and Contingencies
Stockholders' equity
Common stock, $0.001 par value, 50,000,000 shares authorized, 22,525,000 shares issued and outstanding March 31, 2021 and September 30, 2020	22,525	22,525
Additional paid-in capital	129,930,330	129,930,330
Statutory surplus	10,458,395	10,458,395
Retained earnings	37,466,885	34,954,061
Accumulated other comprehensive loss	(785,762)	(7,039,490)
Total stockholders' equity	177,092,373	168,325,821
Total Liabilities and Stockholders' Equity	$ 378,733,997	$ 353,964,153

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2021	Sep. 30, 2020
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	22,525,000	22,525,000
Common stock, shares outstanding	22,525,000	22,525,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Real estate sales	$ 18,278,112	$ 1,889,829	$ 21,033,374	$ 4,194,073
Less: Sales tax	115,166	27,048	138,704	66,281
Cost of real estate sales	(14,474,264)	(1,466,381)	(16,327,906)	(3,171,993)
Gross profit	3,688,682	396,400	4,566,764	955,799
Operating expenses
Selling and distribution expenses	16,821	200,390	96,166	400,558
General and administrative expenses	543,334	819,415	849,259	1,408,254
Total operating expenses	560,155	1,019,805	945,425	1,808,812
Operating income (loss)	3,128,527	(623,405)	3,621,339	(853,013)
Interest income (expense), net	712	(15,586)	3,537	(32,839)
Other expense	(166,571)	(96,729)	(272,428)	(96,729)
Income (loss) before income taxes	2,962,668	(735,720)	3,352,448	(982,581)
Provision (benefit) for income taxes	741,431	(111,699)	839,624	(101,179)
Net income (loss)	2,221,237	(624,021)	2,512,824	(881,402)
Other comprehensive income (loss)
Foreign currency translation adjustment	(737,431)	(2,823,145)	6,253,728	1,557,717
Comprehensive income (loss)	$ 1,483,806	$ (3,447,166)	$ 8,766,552	$ 676,315
Basic and diluted income (loss) per common share
Basic and diluted	$ 0.10	$ (0.01)	$ 0.11	$ (0.02)
Weighted average common shares outstanding
Basic and diluted	22,525,000	22,525,000	22,525,000	22,525,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Common stock	Additional Paid-in Capital	Statutory Surplus	Retained Earnings	Accumulated Other Comprehensive loss	Total
Beginning balance at Sep. 30, 2019	$ 22,525	$ 129,930,330	$ 10,360,251	$ 34,070,767	$ (15,683,723)	$ 158,700,150
Beginning balance (in Shares) at Sep. 30, 2019	22,525,000
Net income (loss) for the period	$ 0	0	0	(257,381)	0	(257,381)
Foreign currency translation adjustment	0	0	0	0	4,380,862	4,380,862
Ending balance (Unaudited) at Dec. 31, 2019	$ 22,525	129,930,330	10,360,251	33,189,365	(11,302,861)	162,823,631
Ending balance (Unaudited) (in Shares) at Dec. 31, 2019	22,525,000
Beginning balance at Sep. 30, 2019	$ 22,525	129,930,330	10,360,251	34,070,767	(15,683,723)	158,700,150
Beginning balance (in Shares) at Sep. 30, 2019	22,525,000
Net income (loss) for the period						(881,402)
Foreign currency translation adjustment						1,557,717
Ending balance (Unaudited) at Mar. 31, 2020	$ 22,525	129,930,330	10,360,251	33,189,365	(14,126,006)	159,376,465
Ending balance (Unaudited) (in Shares) at Mar. 31, 2020	22,525,000
Beginning balance at Dec. 31, 2019	$ 22,525	129,930,330	10,360,251	33,189,365	(11,302,861)	162,823,631
Beginning balance (in Shares) at Dec. 31, 2019	22,525,000
Net income (loss) for the period	$ 0	0	0	(624,021)	0	(624,021)
Foreign currency translation adjustment	0	0	0	0	(2,823,145)	(2,823,145)
Ending balance (Unaudited) at Mar. 31, 2020	$ 22,525	129,930,330	10,360,251	33,189,365	(14,126,006)	159,376,465
Ending balance (Unaudited) (in Shares) at Mar. 31, 2020	22,525,000
Beginning balance at Sep. 30, 2020	$ 22,525	129,930,330	10,458,395	34,954,061	(7,039,490)	168,325,821
Beginning balance (in Shares) at Sep. 30, 2020	22,525,000
Net income (loss) for the period	$ 0	0	0	291,587	0	291,587
Foreign currency translation adjustment	0	0	0	0	6,991,159	6,991,159
Ending balance (Unaudited) at Dec. 31, 2020	$ 22,525	129,930,330	10,458,395	35,245,648	(48,331)	175,608,567
Ending balance (Unaudited) (in Shares) at Dec. 31, 2020	22,525,000
Beginning balance at Sep. 30, 2020	$ 22,525	129,930,330	10,458,395	34,954,061	(7,039,490)	168,325,821
Beginning balance (in Shares) at Sep. 30, 2020	22,525,000
Net income (loss) for the period						2,512,824
Foreign currency translation adjustment						6,253,728
Ending balance (Unaudited) at Mar. 31, 2021	$ 22,525	129,930,330	10,458,395	37,466,885	(785,762)	177,092,373
Ending balance (Unaudited) (in Shares) at Mar. 31, 2021	22,525,000
Beginning balance at Dec. 31, 2020	$ 22,525	129,930,330	10,458,395	35,245,648	(48,331)	175,608,567
Beginning balance (in Shares) at Dec. 31, 2020	22,525,000
Net income (loss) for the period	$ 0	0	0	2,221,237	0	2,221,237
Foreign currency translation adjustment	0	0	0	0	(737,431)	(737,431)
Ending balance (Unaudited) at Mar. 31, 2021	$ 22,525	$ 129,930,330	$ 10,458,395	$ 37,466,885	$ (785,762)	$ 177,092,373
Ending balance (Unaudited) (in Shares) at Mar. 31, 2021	22,525,000

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities
Net income (loss)	$ 2,512,824	$ (881,402)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred tax provision (benefit)		(235,179)
Depreciation	24,772	37,710
Changes in operating assets and liabilities:
Contract assets	(422,948)	651,289
Real estate property development completed	(4,747,385)	(2,937,724)
Real estate property under development	(13,010,220)	(2,835,288)
Other current assets	(1,281,964)	(935,053)
Security deposit	0	3,195,887
Accounts payables	5,515,797	89,325
Other payables	395,088	111,347
Contract liabilities	(28,762)	(71,507)
Customer deposits	1,387,999	2,349,028
Construction deposits	0	(428)
Accrued expenses		(675,478)
Taxes payables	109,454	(1,379,060)
Net cash (used in) provided by operating activities	(50,575)	2,358,915
Cash flow from financing activities
Repayments of construction loans		(2,128,585)
Net cash used in financing activities		(2,128,585)
Effect of changes of foreign exchange rate on cash and restricted cash	36,349	103,801
Net (decrease) increase in cash and restricted cash	(14,226)	334,131
Cash and restricted cash, beginning of period	3,867,536	4,202,117
Cash and restricted cash, end of period	3,853,310	4,536,248
Supplemental disclosures of cash flow information:
Interest paid	1,847,904	3,416,592
Income taxes paid	135,462	375,601
Reconciliation to amounts on condensed consolidated balance sheets:
Cash, end of period	555,576	658,313
Restricted, end of period	3,297,734	3,877,935
Total cash and restricted cash, end of period	3,853,310	4,536,248
Cash, beginning of period	457,699	263,139
Restricted, beginning of period	3,409,837	3,938,978
Total cash and restricted cash, beginning of period	3,867,536	$ 4,202,117
Non-cash financing activities:
Reclassification of interest payable to construction loan	1,626,210
Real estate sales for settlements in real estate property under development	$ (14,432,275)

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Mar. 31, 2021
ORGANIZATION AND BASIS OF PRESENTATION
ORGANIZATION AND BASIS OF PRESENTATION	NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION China HGS Real Estate, Inc. (“China HGS” or the “Company” or “we”, “us”, “our”), through its subsidiaries and variable interest entity (“VIE”), engages in real estate development, and the construction and sales of residential apartments, parking spaces and commercial properties in Tier 3 and Tier 4 cities and counties in China. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended March 31, 2021 and 2020 are not necessarily indicative of the results that may be expected for the full year. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020 filed with the SEC on January 13, 2021. Liquidity In recent years, the Chinese government has implemented measures to control overheating residential and commercial property prices including but not limited to restrictions on home purchase, increasing the down-payment requirement against speculative buying, development of low-cost rental housing properties to help low-income groups while reducing the demand in the commercial housing market, increasing real estate property taxes to discourage speculation, control of the land supply and slowdown the construction land auction process, etc. In addition, in December 2019, a novel strain of coronavirus (COVID-19) surfaced. COVID-19 has spread rapidly throughout China and worldwide, which has caused significant volatility in the PRC and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the PRC and international economies. To reduce the spread of the COVID-19, the Chinese government has employed measures including city lockdowns, quarantines, travel restrictions, suspension of business activities and school closures. Due to difficulties resulting from the COVID-19 outbreak, including, but not limited to, the temporary closure of the Company’s facilities and operations beginning in early February through early March 2020, limited support from the Company’s employees, delayed access to construction raw material supplies, reduced customer visits to the Company’s sales office, and inability to promote real estate property sales to customers on a timely basis, our revenue during the six months ended March 31, 2020 were significantly lower. The Company is experiencing recovery of its real estate development business in the first half of fiscal 2021 due to increasing demand from the local real estate market. The Company had revenue of approximately $21.0 million for the six months ended March 31, 2021, increased from $4.2 million in the same period of last year. Based on the assessment of current economic environment, customer demand and sales trends, we believe that consumer spending has been restored in the local real estate market and the real estate sales are expected to grow in the coming periods. On the other side, due to negative impact from COVID-19 outbreak and spread, the developing period of real estate properties and our operating cycle has been extended and we may not be able to liquidate our large balance of completed real estate property within the short term as we originally expected. In addition, as of March 31, 2021, we had large construction loans payable of approximately $116.1 million and large accounts payable of approximately $31.9 million to be paid to subcontractors within one year. The extent of the impact of COVID-19 on the Company's future financial results will be dependent on future developments such as the length and severity of the crisis, the potential resurgence of the crisis, future government actions in response to the crisis and the overall impact of the COVID-19 pandemic on the local economy and real estate markets, among many other factors, all of which remain highly uncertain and unpredictable. Given this uncertainty, the Company is currently unable to quantify the expected impact of the COVID-19 pandemic on its future operations, financial condition, liquidity and results of operations if the current situation continues. The above mentioned facts raise substantial doubt about the Company's ability to continue as a going concern from the date of this filing. In assessing its liquidity, management monitors and analyzes the Company’s cash on-hand, its ability to generate sufficient revenue sources in the future, and its operating and capital expenditure commitments. As of March 31, 2021, our total cash and restricted cash balance was approximately $3.9 million similar to approximately $3.9 million as of September 30, 2020. With respect to capital funding requirements, the Company budgeted its capital spending based on ongoing assessments of needs to maintain adequate cash. As of March 31, 2021, we had approximately $93.4 million of completed residential apartments and commercial units available for sale to potential buyers. Although we reported approximately $31.9 million accounts payable as of March 31, 2021, due to the long-term relationship with our construction suppliers and subcontractors, we were able to effectively manage cash spending on construction and negotiate with them to adjust the payment schedule based on our cash on hand. In addition, most of our existing real estate development projects relate to the old town renovation which are supported by the local government. As of March 31, 2021, we reported approximately $116.1 million of construction loans borrowed from financial institutions controlled by the local government and such loans can only be used on the old town renovation related project development. We expect that we will be able to renew all of the existing construction loans upon their maturity and borrow additional new loans from local financial institutions when necessary, based on our past experience and the Company’s good credit history. Also, the Company’s cash flows from pre-sales and current sales should provide financial support for our current developments and operations. As of March 31, 2021, we had approximately $21.5 million of customer deposits representing cash advances from buyers for pre-sales of our residential units and we believe such cash advances can be used to fund our ongoing construction projects whenever necessary. For the six months ended March 31, 2021, we had six large ongoing construction projects (see Note 3, real estate properties under development) which were under the preliminary development stage due to delayed inspection and acceptance of the development plans by the local government. In June 2020, we completed the residence relocation surrounding the Liangzhou Road related projects and launched the construction of these projects in December 2020. For the other four projects, we expect we will be able to obtain the government’s approval of the development plans on these projects in the coming fiscal year and start the pre-sale of the real estate property to generate cash when certain property development milestones have been achieved. In addition, our principal shareholder, Mr. Xiaojun Zhu has been providing and has committed to continue to provide his personal funds to support the Company’s operation whenever necessary. Principles of consolidation The unaudited condensed consolidated financial statements include the financial statements of China HGS Real Estate Inc. (the “Company” or “China HGS”), China HGS Investment Inc. (“HGS Investment”), Shaanxi HGS Management and Consulting Co., Ltd. (“Shaanxi HGS”) and its variable interest entity (“VIE”), Shaanxi Guangsha Investment and Development Group Co., Ltd. (“Guangsha”). All inter-company transactions and balances between the Company and its subsidiaries and VIE have been eliminated upon consolidation. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes, and disclosure of contingent liabilities at the date of the consolidated financial statements. Estimates are used for, but not limited to, the assumptions and estimates used by management in recognizing development revenue under the percentage of completion method, the selection of the useful lives of property and equipment, provision necessary for contingent liabilities, revenue recognition, taxes and budgeted costs. Actual results could differ from these estimates. Fair value of financial instruments The Company follows the provisions of the Financial Accounting Standard Board (“”FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures. It clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1‑Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2‑Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3‑Inputs are unobservable inputs which reflect the reporting entity’s own assumptions or what assumptions market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the accompanying consolidated balance sheets for cash, restricted cash and all other current assets, security deposits for land use rights, loans and all current liabilities approximate their fair value based on the short-term maturity of these instruments. The fair value of the customer advances, construction and security deposits approximate their carrying amounts because the deposits are received in cash. It was impractical to estimate the fair value of the amount due from the local government and the other loans payable. Revenue recognition The Company adopted FASB ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on October 1, 2018 using the modified retrospective approach. Under ASC 606, Revenue from Contracts with Customers, revenue is recognized in accordance with the transfer of goods and services to customers at an amount that reflects the consideration that the Company expects to be entitled to for those goods and services. The Company determines revenue recognition through the following steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price, including the constraint on variable consideration; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when (or as) the Company satisfies a performance obligation. Most of the Company’s revenue is derived from real estate sales of condominiums and commercial properties in the PRC. The majority of the Company’s contracts contain a single performance obligation involving significant real estate development activities that are performed together to deliver a real estate property to customers. Revenues arising from real estate sales are recognized when or as the control of the asset is transferred to the customer. The control of the asset may transfer over time or at a point in time. For the sales of individual condominium units in a real estate development project, the Company has an enforceable right to payment for performance completed to date, revenue is recognized over time by measuring the progress towards complete satisfaction of that performance obligation (“percentage completion method”). Otherwise, revenue is recognized at a point in time when the customer obtains control of the asset. Under percentage completion method, revenue and profit from the sales of long-term real estate development properties is recognized by the percentage of completion method on the sale of individual units when all the following criteria are met: a. Construction is beyond a preliminary stage. b. The buyer is committed to the extent of being unable to require a refund except for non-delivery of the unit or interest. c. Sufficient units have already been sold to assure that the entire property will not revert to rental property. d. Sale prices are collectible. e. Aggregate sales proceeds and costs can be reasonably estimated. If any of the above criteria is not met, proceeds shall be accounted for as deposits until the criteria are met. Under the percentage of completion method, revenues from individual real estate condominium units sold under development and related costs are recognized over the course of the construction period, based on the completion progress of a project. The progress towards complete satisfaction of the performance obligation is measured based on the Company’s efforts or inputs to the satisfaction of the performance obligation, by reference to the contract costs incurred up to the end of reporting period as a percentage of total estimated costs for each contract. In relation to any project, revenue is determined by calculating the ratio of incurred costs, including land use rights costs and construction costs, to total estimated costs and applying that ratio to the contracted sales amounts. Cost of sales is recognized by determining the ratio of contracted sales during the period to total estimated sales value, and applying that ratio to the incurred costs. Current period amounts are calculated based on the difference between the life-to-date project totals and the previously recognized amounts. Any changes in significant judgments and/or estimates used in determining construction and development revenue could significantly change the timing or amount of construction and development revenue recognized. Changes in total estimated project costs or losses, if any, are recognized in the period in which they are determined. Revenue from the sales of previously completed real estate condominium units is recognized at the time of the closing of an individual unit sale. This occurs when the customer obtains the physical possession, the legal title, or the significant risks and rewards of ownership of the assets and the Company has the right to payment and the collection of the consideration is probable. For municipal road construction projects, fees are generally recognized at the time the projects are completed. Disaggregation of Revenues Disaggregated revenues was as follows: For the three months ended March 31, 2021 2020 Revenue recognized for completed condominium real estate projects $ 18,278,112 $ 1,889,829 Revenue recognized for condominium real estate projects under development — — Total $ 18,278,112 $ 1,889,829 For the six months ended March 31, 2020 2019 Revenue recognized for completed condominium real estate projects $ 21,033,374 $ 4,194,073 Revenue recognized for condominium real estate projects under development — — Total $ 21,033,374 $ 4,194,073

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue recognitio Contract balances Timing of revenue recognition may differ from the timing of billing and cash receipts from customers. The Company records a contract asset when revenue is recognized prior to invoicing, or a contract liability when cash is received in advance of recognizing revenue. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets include billed and billable receivables, which are the Company’s unconditional rights to consideration other than to the passage of time. Contract liabilities include cash collected in excess of revenues. Customer deposits are excluded from contract liabilities. The Company has elected to apply the optional practical expedient for costs to obtain a contract which allows the Company to immediately expense sales commissions (included under selling expenses) because the amortization period of the asset that the Company otherwise would have used is one year or less. The Company provides “mortgage loan guarantees” only with respect to buyers who make down-payments of 20%‑50% of the total purchase price of the property. The period of the mortgage loan guarantee begins on the date the bank approves the buyer’s mortgage and we receive the loan proceeds in our bank account and ends on the date the “Certificate of Ownership” evidencing that title to the property has been transferred to the buyer. The procedures to obtain the Certificate of Ownership take six to twelve months (the “Mortgage Loan Guarantee Period”). If, after investigation of the buyer’s income and other relevant factors, the bank decides not to grant the mortgage loan, our mortgage-loan based sales contract terminates and there will be no guarantee obligation. If, during the Mortgage Loan Guarantee Period, the buyer defaults on his or her monthly mortgage payment for three consecutive months, we are required to return the loan proceeds back to the bank, although we have the right to keep the customer’s deposit and resell the property to a third party. Once the Certificate of Ownership has been issued by the relevant government authority, our loan guarantee terminates. If the buyer then defaults on his or her mortgage loan, the bank has the right to take the property back and sell it and use the proceeds to pay off the loan. The Company is not liable for any shortfall that the bank may incur in this event. To date, no buyer has defaulted on his or her mortgage payments during the Mortgage Loan Guarantee Period and the Company has not returned any loan proceeds pursuant to its mortgage loan guarantees. Foreign currency translation The Company’s financial information is presented in U.S. dollars. The functional currency of the Company’s operating subsidiaries is Renminbi (“RMB”), the currency of the PRC. The financial statements of the Company have been translated into U.S. dollars in accordance with ASC 830‑30 “Translation of Financial Statements”. The financial information is first prepared in RMB and then is translated into U.S. dollars at period-end exchange rates as to assets and liabilities and average exchange rates as to revenue and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income in stockholders’ equity. For three months For six months ended March 31, ended March 31, September 30, 2021 2020 2021 2020 2020 Period end RMB : USD exchange rate 6.5518 7.0808 6.5518 7.0808 6.7896 Period average RMB : USD exchange rate 6.4817 6.9786 6.5526 7.0117 7.0056 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. Real estate property development completed and under development Real estate property consists of finished residential unit sites, commercial offices and residential unit sites under development. The Company leases the land for the residential unit sites under land use right leases with various terms from the PRC government. The cost of land use rights is included in the development cost and allocated to each project. Real estate property development completed and real estate property under development are stated at the lower of cost or fair value. Expenditures for land development, including cost of land use rights, deed tax, pre-development costs, and engineering costs, exclusive of depreciation, are capitalized and allocated to development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio of the sales area of units to the estimated total sales area of the project (or phase of the project) multiplied by the total cost of the project (or phase of the project). Cost of amenities transferred to buyers is allocated to specific units as a component of total construction cost. The amenity cost includes landscaping, road paving, etc. Once the projects are completed, the amenities are under control of the property management companies. Real estate property development completed and under development are subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is recognized only if the carrying amount of the assets is not recoverable and exceeds its fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to be generated by the assets. The Company reviews all of its real estate projects for future losses and impairment by comparing the estimated future undiscounted cash flows for each project to the carrying value of such project. For the three and six months ended March 31, 2021 and 2020, the Company did not recognize an impairment loss for any of its real estate properties. Capitalization of Interest Interest incurred during and directly related to real estate development projects is capitalized to the related real estate property under development during the active development period, which generally commences when borrowings are used to acquire real estate assets and ends when the properties are substantially complete or the property becomes inactive. Interest is capitalized based on the interest rate applicable to specific borrowings or the weighted average of rates applicable to other borrowings during the period. Interest capitalized to real estate property under development is recorded as a component of the cost of real estate sales when related units are sold. All other interest is expensed as incurred. For the three and six months ended March 31, 2020, the total interest capitalized in the real estate property development was $1,705,550 and $3,474,114, respectively. For the three and six months ended March 31, 2020, the total interest capitalized in the real estate property development was $1,732,506 and $3,460,383, respectively Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds its estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally determined by using the asset's expected future discounted cash flows or market value. The Company estimates fair value of the assets based on certain assumptions such as budgets, internal projections, and other available information as considered necessary. There was no impairment of long-lived assets during the three and six months ended March 31, 2021 and 2020. Income taxes Deferred tax assets and liabilities are for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowances is established, when necessary, to reduce net deferred tax assets to the amount expected to be realized. ASC 740-10-25 prescribes a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax positions taken (or expected to be taken) in a tax return. It also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. There are no material uncertain tax positions as of March 31, 2021 and September 30, 2020. The Company is a corporation organized under the laws of the State of Florida. However, all of the Company’s operations are conducted solely by its subsidiaries and VIE in the PRC. No income is earned in the United States and the management does not repatriate any earnings outside the PRC. As a result, the Company did not generate any U.S. taxable income for the three and six months ended March 31, 2021 and 2020. As of March 31, 2021, the Chinese entities’ income tax returns filed in China for the years ended December 31, 2020, 2019, 2018, 2017 and 2016 are subject to examination by the Chinese taxing authorities. The parent Company China HGS Real Estate Inc.’s both U.S. federal tax returns and Florida state tax returns are delinquent since 2009. Its tax years ended September 30, 2009 through September 30, 2020 remain open for statutory examination by U.S. federal and state tax authorities. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a U.S. corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. Due to the complexity involved in applying the provisions of the Tax Act, we made reasonable estimates of the effects and recorded accrued amounts in our consolidated financial statements as of March 31, 2021 and September 30, 2020, including an approximately $2.3 million provision on the deemed repatriation of undistributed foreign earnings and an additional $0.8 million provision for delinquent U.S. and State tax fillings. The Company is in the process of engaging a tax professional to file its delinquent tax returns. Failure to furnish any income tax and information returns with respect to any foreign business entity required, within the time prescribed by the IRS, subjects the Company to civil penalties. Land appreciation tax (“LAT”) In accordance with the relevant taxation laws in the PRC, the Company is subject to LAT based on progressive rates ranging from 30% to 60% on the appreciation of land value, which is calculated as the proceeds of sales of properties less deductible expenditures including borrowing costs and all property development expenditures. LAT is exempted if the appreciation values do not exceed certain thresholds specified in the relevant tax laws. The whole project must be completed before the LAT obligation can be assessed. Accordingly, the Company should record the liability and the total related expense at the completion of a project unless the tax authorities impose an assessment at an earlier date. The methods to implement this tax law vary among different geographic areas. Hanzhong, where the project Mingzhu Garden, Nan Dajie and Central Plaza are located, implements this tax rule by requiring real estate companies prepay the LAT based upon customer deposits received. The tax rate in Hanzhong is 1%. Yang County, where the Yangzhou Pearl Garden and Yangzhou Palace projects are located, has a tax rate of 0.5%. Comprehensive income (loss) In accordance with ASC 220-10-55, comprehensive income (loss) is defined as all changes in equity except those resulting from investments by owners and distributions to owners. The Company’s only components of comprehensive income (loss) for the three and six months ended March 31, 2021 and 2020 were net income (loss) and foreign currency translation adjustments. Basic and diluted earnings (loss) per share The Company computes earnings (loss) per share (“EPS”) in accordance with the FASB ASC 260, “Earnings per share”, which requires companies to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There were no anti-dilutive share for the three and six months ended March 31, 2021 and 2020. Concentration risk The Company's operations are carried out in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC's economy. The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America. The Company's results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. The Company's cash and restricted cash were on deposit at financial institutions in the PRC, which the management believes are of high credit quality. In May, 2015, China's new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in China are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company's accounts, as its aggregate deposits are much higher than the compensation limit of RMB500,000 (approximately $76,300). However, the Company believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in China and the Company believes that those Chinese banks that hold the Company's cash and restricted cash are financially sound based on public available information. The Company has not experienced any losses in its bank accounts. The Company is dependent on third-party sub-contractors, manufacturers, and distributors for all construction services and supply of construction materials. For the three and six months ended March 31, 2021 and 2020, no supplier accounted for more than 10% of the total project expenditures. For the three and six months ended March 31, 2021, the Company had real estate sales revenue of $14,432,275 related to sales to the local government for residence reallocation purposes, representing 79% and 68.6% of the Company’s total real estate sales revenue for the three and six months ended March 31,2021, respectively. For the three and six months ended March 31, 2020, the Company did not have any individual customer with over 10% of the Company real estate sales revenue for the related periods. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses," "ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses," "Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," and "ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief," which provided additional implementation guidance on the previously issued ASU. The ASU is effective for fiscal years beginning after December 15, 2020. The ASU requires a modified retrospective adoption method. The Company is still evaluating the impact of adoption on its financial statements and disclosures. In October 2018, the FASB issued ASU No. 2018-17 ("ASU 2018-17"), Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. The updated guidance requires entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety when determining whether a decision-making fee is a variable interest. The amendments in this update are effective for non-public business entities for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021, with early adoption permitted. These amendments should be applied retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. Management has considered all other recent accounting pronouncements issued. The Company's management believes that these recent pronouncements will not have a material effect on the Company's financial statements.

REAL ESTATE PROPERTY DEVELOPMEN

REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT	6 Months Ended
	Mar. 31, 2021
REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT
REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT	NOTE 3. REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT The following summarizes the components of real estate property development completed and under development As of March 31, 2021 and September 30, 2020: Balance as of March 31, 2021 September 30, 2020 (Unaudited) Development completed: Hanzhong City Mingzhu Garden Phase II $ 23,487,591 $ 22,801,439 Hanzhong City Oriental Pearl Garden 20,660,729 19,937,105 Yang County Yangzhou Pearl Garden Phase II 2,616,474 2,559,977 Yang County Yangzhou Palace 46,594,626 49,372,737 Real estate property development completed $ 93,359,420 $ 94,671,258 Under development: Hanzhong City Liangzhou Road and related projects (a) $ 174,713,368 $ 164,879,955 Hanzhong City Nanyuan II project(e) 23,185,457 — Hanzhong City Hanfeng Beiyuan East (b) 854,422 824,496 Hanzhong City Beidajie (b) 46,530,230 57,142,127 Yang County East 2 nd Ring Road (c) 5,868,290 4,894,439 Real estate property under development $ 251,151,767 $ 227,741,017 (a) In September 2013, the Company entered into an agreement (“Liangzhou Agreement”) with the Hanzhong local government on the Liangzhou Road reformation and expansion project (Liangzhou Road Project”). Pursuant to the agreement, the Company is contracted to reform and expand the Liangzhou Road, a commercial street in downtown Hanzhong City, with a total length of 2,080 meters and width of 30 meters and to resettle the existing residences in the Liangzhou road area. The government’s original road construction budget was approximately $33 million in accordance with the Liangzhou Agreement. The Company, in return, is being compensated by the local government to have an exclusive right on acquiring at least 394.5 Mu land use rights in a specified location of Hanzhong City. The Liangzhou Road Project’s road construction started at the end of 2013. In 2014, the original scope and budget on the Liangzhou road reformation and expansion project was extended, because the local government included more area and resettlement residences into the project, which resulted in additional investments from the Company. In return, the Company is authorized by the local government to develop and manage the commercial and residential properties surrounding the Liangzhou Road project. As of March 31, 2021, the main Liangzhou road construction is substantially completed. The Company launched the construction of the Liangzhou Road related projects in December 2020. The Company’s development cost incurred on Liangzhou Road Project is treated as the Company’s deposit on purchasing the related land use rights, as agreed by the local government. As of March 31, 2021, the actual costs incurred by the Company were $174,713,368 (September 30, 2019 - $164,879,955) and the incremental cost related to residence resettlement approved by the local government. The Company determined that the Company’s Investment in Liangzhou Road Project in exchange for interests in future land use rights is a barter transaction with commercial substance. (b) In September 2012, the Company was approved by the Hanzhong local government to construct four municipal roads with a total length of approximately 1,192 meters. The project was deferred and then restarted during the quarter ended June 30, 2014. As of March 31, 2021, the local government has not completed the budget for these projects therefore the delivery for these projects for government's acceptance and related settlement were extended to 2022. Due to delays in the government approval and slow development progress, the Company disposed of certain construction properties in the Beidajie project to Hanzhong Guangsha Real Estate Development Inc. ("Hanzhong Guangsha") an entity controlled by the Company’s chairman and Chief executive officer Mr. Xiaojun Zhu to settle the payable of approximately $28.2 million related to Hanzhong Guangsha in connection with the acquisition of the Hanzhong Nanyuan II Project disclosed below in (e). (c) The Company was engaged by the Yang County local government to construct the East 2nd Ring Road with a total length of 2.15 km. The local government is required to repay the Company’s project investment costs within 3 years with interest at the interest rate based on the commercial borrowing rate with the similar term published by the China Construction Bank (December 31, 2020 and 2019 – 4.75%). The local government has approved a refund to the Company by reducing local surcharges or taxes otherwise required in the real estate development. The road construction was substantially completed as of March 31, 2021 and in process of government review and approval. (e) On January 20, 2021, the Company entered into agreement with Hanzhong Guangsha, an entity controlled by the Company's chairman and Chief executive officer Mr. Xiaojun Zhu, to acquire certain real estate under development in the Hanzhong Nanyuan II Project in the amount of approximately $28.2 million , for the local government's residence reallocation related to the Liangzhou road and affiliated project. The remaining balance of the real estate under development in the Hanzhong Nanyuan II project is expected to be completed before September 30, 2021 and will be sold to the local government for residence reallocation purposes.

CONSTRUCTION LOANS

CONSTRUCTION LOANS	6 Months Ended
	Mar. 31, 2021
CONSTRUCTION LOANS
CONSTRUCTION LOANS	NOTE 4. CONSTRUCTION LOANS March 31, September 30, 2021 2020 (Unaudited) Loan A $ 97,939,013 $ 92,450,491 Loan B 18,121,611 17,486,917 Total $ 116,060,624 $ 109,937,408 (A) On June 26, 2015 and March 10, 2016, the Company signed phase I and Phase II agreements with Hanzhong Urban Construction Investment Development Co., Ltd, a state-owned Company, to borrow up to approximately $118.8 million (RMB 775,000,000) for a long term loan with interest at 4.75% to the develop Liangzhou Road Project. As of September 30, 2020, the Company borrowed $97,832,408 under this credit line with a due date in October 2021. Due to local government’s delay in the reallocation of residences in the Liangzhou Road Project and related area, the Hanzhong Urban Construction Investment Development Co., Ltd has not released all the funds available to the Company and additional withdrawals will be based on the project’s development progress and the Company expects the loan will be extended upon maturity. The loan is guaranteed by Hanzhong City Hantai District Municipal Government and pledged by the Company’s Yang County Yangzhou Palace project with a carrying value of $46,594,626 as of March 31, 2021 (September 30, 2020- $49,372,737). For the three and six months ended March 31, 2021, the interest was $1,570,490 and $3,203,279, respectively, which was capitalized into the development cost of the Liangzhou Road Project. For the three and six months ended March 31, 2020, interest was $1,599,637 and $3,195,887, respectively, which was capitalized in to the development cost of the Liangzhou Road Project. (B) In December 2016, the Company signed a loan agreement with Hantai District Urban Construction Investment Development Co., Ltd, a state-owned Company, to borrow up to approximately $18.2 million (RMB 119,000,000) for the development of the Hanzhong City Liangzhou Road Project. The interest is 1.2% and due on June 20, 2031. The Company is required to repay the loan by equal annual principal repayments of approximately $3.3 million commencing from December 2027 through June 2031 with interest payable on an annual basis. The Company pledged the assets of the Liangzhou Road related projects with a carrying value of $174,713,368 as collateral for the loan. Total interest of $54,262 and $109,583 for the three and six months ended March 31, 2021, respectively, was capitalized into the development cost of the Hanzhong City Liangzhou Road Project. Total interest of $51,732 and $102,961 for the three and six months ended March 31, 2020, respectively, were capitalized into the development cost of Hanzhong City Liangzhou Road Project. Additionally, in September 2017, the Urban Development Center Co., Ltd. approved a construction loan for the Company in the amount of approximately $26.8 million (RMB 175,000,000) with an annual interest rate of 1.2% per year in connection with the Liangzhou Road and related Project. The Company is required to repay the loan by equal annual principal repayment of approximately $5 million commencing from December 2027 through May 2031 with the interest payable on an annual basis. The amount of this loan is available to be drawn down as soon as the land use rights of the Liangzhou Road Project are approved and the construction starts, which is expected to be completed before the end of 2021. As of March 31, 2021 and September 30, 2020, the outstanding balance of the loan was Nil. Interest charges for the three and six months ended March 31, 2021 was $79,798 and $161,152, respectively, which was included in the construction capitalized costs. Interest charges for the three and six months ended March 31, 2020 was $76,062 and $151,414, respectively, which was included in the construction capitalized costs.

CUSTOMER DEPOSITS

CUSTOMER DEPOSITS	6 Months Ended
	Mar. 31, 2021
CUSTOMER DEPOSITS
CUSTOMER DEPOSITS	NOTE 5. CUSTOMER DEPOSITS Customer deposits consist of amounts received from customers for the pre-sale of residential units in the PRC. The detail of customer deposits is as follows: March 31, September 30, 2021 2020 (Unaudited) Customer deposits by real estate projects: Mingzhu Garden (Mingzhu Nanyuan and Mingzhu Beiyuan) $ 7,906,459 $ 7,606,944 Oriental Pearl Garden 4,669,289 4,358,467 Liangzhou Road and related projects 615,098 888,123 Yangzhou Pearl Garden 1,442,548 1,243,137 Yangzhou Palace 6,864,633 5,308,857 Total $ 21,498,027 $ 19,405,528 Customer deposits are typically 10% - 20% of the unit price for those customers who purchase properties in cash and 30%‑50% of the unit price for those customers who purchase properties with mortgages.

TAXES

TAXES	6 Months Ended
	Mar. 31, 2021
TAXES
TAXES	NOTE 6. TAXES (A) Value added Tax (“VAT”) The Company is subject to a 5% VAT for its existing real estate projects based on the local tax authority’s practice. As of March 31, 2021, the Company had business sales tax payable of $4,643,839 (September 30, 2020 - $5,159,296), which is expected to be paid when the projects are completed and assessed by the local tax authority. B) Corporate income taxes (“CIT”) The Company’s PRC subsidiaries and VIE are governed by the Income Tax Law of the People’s Republic of China concerning the privately run enterprises, which are generally subject to income tax at a statutory rate of 25% on income reported in the statutory financial statements after appropriate tax adjustments. The Company’s CIT is 25% on taxable income. Although the possibility exists for reinterpretation of the application of the tax regulations by higher tax authorities in the PRC, potentially overturning the decision made by the local tax authority, the Company has not experienced any reevaluation of the income taxes for prior years. The PRC tax rules are different from the local tax rules and the Company is required to comply with local tax rules. The difference between the two tax rules will not be a liability of the Company. There will be no further tax payments for the difference. As of March 31,2021 and September 30, 2020, the Company’s total income tax payable amounted to $13,241,343 and $11,639,537, respectively, which included the income tax payable balances in the PRC of $9,944,343 and $8,342,537, respectively and the Company expects to pay this income tax payable balance when the related real estate projects are completely sold. The following table reconciles the statutory rates to the Company’s effective tax rate for the three and six months ended March 31,2021 and 2020: Three months ended Six months ended March 31, March 31, 2021 2020 2021 2020 Chinese statutory tax rate 25 % 25 % 25 % 25 % Valuation allowance change and other adjustments* — (9.8) % — (14.7) % Effective tax rate 25 % 15.2 % $ 25 % 10.3 % *Valuation allowance change and other adjustments for the three and six months ended March 31, 2021 and 2020 were primarily related to valuation allowance changes on historical losses. Income tax expense for the three and six months ended March 31, 2021 and 2020 is summarized as follows: Three months ended Six months ended March 31, March 31, 2021 2020 2021 2020 Current tax provision $ 741,431 $ 67,000 $ 839,624 $ 134,000 Deferred tax provision — (178,699) — (235,179) Income tax provision $ 741,431 $ (111,699) $ 839,624 $ (101,179) Recent U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into law on December 22, 2017. The U.S. Tax Reform significantly modified the U.S. Internal Revenue Code by, among other things, reducing the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31, 2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transition tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations, generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign earnings. Taxpayers may elect to pay the one-time transition tax over eight years or in a single lump sum. The U.S. Tax Reform also includes provisions for a new tax on GILTI effective for tax years of foreign corporations beginning after December 31, 2017. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of controlled foreign corporations (“CFCs”), subject to the possible use of foreign tax credits and a deduction equal to 50 percent to offset the income tax liability, subject to some limitations. As of March 31, 2021 and September 30, 2020, the Company’s GILTI tax payable was Nil. For the year ended September 30, 2018, the Company recognized a one-time transition toll tax of approximately $2.3 million that represented management’s estimate of the amount of U.S. corporate income tax based on the deemed repatriation to the United States of the Company’s share of previously deferred earnings of certain non-U.S. subsidiaries and VIE of the Company mandated by the U.S. Tax Reform. The Company’s estimate of the onetime transition toll Tax is subject to the finalization of management’s analysis related to certain matters, such as developing interpretations of the provisions of the Tax Act and amounts related to the earnings and profits of certain foreign VIEs and the filing of our tax returns. U.S. Treasury regulations, administrative interpretations or court decisions interpreting the Tax Act may require further adjustments and changes in our estimates. As of March 31, 2021 and September 30, 2020, the Company provided an additional $0.8 million provision due to delinquent U.S. tax return fillings. (C) Land Appreciation Tax (“LAT”) Since January 1, 1994, LAT has been applicable at progressive tax rates ranging from 30% to 60% on the appreciation of land values, with an exemption provided for the sales of ordinary residential properties if the appreciation values do not exceed certain thresholds specified in the relevant tax laws. However, the Company’s local tax authority in Hanzhong City has not imposed the regulation on real estate companies in its area of administration. Instead, the local tax authority has levied the LAT at the rate of 0.5% in Yang County and 1.0% in Hanzhong against total cash receipts from sales of real estate properties, rather than according to the progressive rates. As at March 31, 2021 and September 30, 2020, the outstanding LAT payable balance was Nil with respect to completed real estate properties sold up to March 31,2021 and September 30, 2020. (D) Taxes payable consisted of the following: December 31, September 30, 2020 2020 (Unaudited) (Unaudited) CIT $ 13,241,343 $ 12,213,470 VAT payable 4,643,839 5,159,296 Other taxes and fees 2,707,425 2,508,445 Tax payable $ 20,592,607 $ 19,881,211

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Mar. 31, 2021
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	NOTE 7. STOCKHOLDERS’ EQUITY On August 19, 2020, the Company filed an Amendment to the Company’s Articles of Incorporation (the “Certificate of Amendment”) with the Florida Secretary of State to affect a one-for-two reverse split of the Company’s authorized and issued and outstanding shares of common stock (the “Reverse Stock Split”). The Reverse Stock Split became effective in accordance with the terms of the Certificate of Amendment on August 20, 2020 (the “Effective Time”). At the Effective Time, every two shares of the Company’s common stock authorized issued and outstanding were automatically combined into one share of common stock, without any change in the par value per share. The Company will not issue any fractional shares in connection with the Reverse Stock Split. Instead, fractional shares will be rounded up to the nearest full share. The Company had a total of 45,050,000 shares of common stock issued and outstanding prior to the Reverse Stock Split. As a result of the Reverse Stock Split, the number of common stock outstanding as of March 31, 2021 and September 30, 2020, which reflects the effect of the reverse split, was 22,525,000. The financial statements give retroactive effect to this reverse stock split.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Mar. 31, 2021
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 8. COMMITMENTS AND CONTINGENCIES From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company’s management does not believe the liability from the disposition of such claims and litigation individually or in the aggregate would have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows. As an industry practice, the Company provides guarantees to PRC banks with respect to loans procured by the purchasers of the Company’s real estate properties for the total mortgage loan amount until the completion of obtaining the “Certificate of Ownership” of the properties from the government, which generally takes six to twelve months. Because the banks provide loan proceeds without getting the “Certificate of Ownership” as loan collateral during the six to twelve months’ period, the mortgage banks require the Company to maintain, as restricted cash of at least 5% of the mortgage proceeds as security for the Company’s obligations under such guarantees. If a purchaser defaults on its payment obligations, the mortgage bank may deduct the delinquent mortgage payment from the security deposit and require the Company to pay the excess amount if the delinquent mortgage payments exceed the security deposit. If the delinquent mortgage payments exceed the security deposit, the banks may require us to pay the excess amount. If multiple purchasers' default on their payment obligations at around the same time, we will be required to make significant payments to the banks to satisfy our guarantee obligations. If we are unable to resell the properties underlying defaulted mortgages on a timely basis or at prices higher than the amounts of our guarantees and related expenses, we will suffer financial losses. The Company has made necessary reserves in its restricted cash account to cover any potential mortgage defaults as required by the mortgage lenders. For the three and six months ended March 31, 2021 and 2020, the Company has not experienced any delinquent mortgage loans and has not experienced any losses related to this guarantee. As of March 31, 2021 and September 30, 2020, our outstanding guarantees in respect of our customers' mortgage loans amounted to approximately $66 million and $68 million, respectively. As of March 31, 2021 and September 30, 2020, the amount of security deposits provided for these guarantees was approximately $3.3 million and $3.4 million, respectively, and the Company believes that such reserves are sufficient.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	6 Months Ended
	Mar. 31, 2021
SUBSEQUENT EVENT
SUBSEQUENT EVENT	NOTE 9. SUBSEQUENT EVENT On April 19, 2021 (the "Closing Date"), pursuant to the terms of the Equity Acquisition Agreement, dated as of March 24, 2021, between China HGS Real Estate Inc., (the "Company,") and Shaanxi Tianhao Construction Engineer Co., Ltd ("Shaanxi Tianhao") (the "Purchaser") (the "Equity Acquisition Agreement"), the Company issued 3,092,114 shares of common stock to the Purchaser to settle its accounts payable balance of RMB 43 million with the Purchaser. In accordance with the Equity Acquisition Agreement, the Purchaser received shares of common stock equivalent to RMB 43 million based on a price of $2.13 per share which was the average stock price of the Company stock during the five (5) trading days preceding the Closing Date.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of consolidation	Principles of consolidation The unaudited condensed consolidated financial statements include the financial statements of China HGS Real Estate Inc. (the “Company” or “China HGS”), China HGS Investment Inc. (“HGS Investment”), Shaanxi HGS Management and Consulting Co., Ltd. (“Shaanxi HGS”) and its variable interest entity (“VIE”), Shaanxi Guangsha Investment and Development Group Co., Ltd. (“Guangsha”). All inter-company transactions and balances between the Company and its subsidiaries and VIE have been eliminated upon consolidation.
Use of estimates	Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes, and disclosure of contingent liabilities at the date of the consolidated financial statements. Estimates are used for, but not limited to, the assumptions and estimates used by management in recognizing development revenue under the percentage of completion method, the selection of the useful lives of property and equipment, provision necessary for contingent liabilities, revenue recognition, taxes and budgeted costs. Actual results could differ from these estimates.
Fair value of financial instruments	Fair value of financial instruments The Company follows the provisions of the Financial Accounting Standard Board (“”FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures. It clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1‑Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2‑Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3‑Inputs are unobservable inputs which reflect the reporting entity’s own assumptions or what assumptions market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the accompanying consolidated balance sheets for cash, restricted cash and all other current assets, security deposits for land use rights, loans and all current liabilities approximate their fair value based on the short-term maturity of these instruments. The fair value of the customer advances, construction and security deposits approximate their carrying amounts because the deposits are received in cash. It was impractical to estimate the fair value of the amount due from the local government and the other loans payable.
Revenue recognition	Revenue recognition The Company adopted FASB ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on October 1, 2018 using the modified retrospective approach. Under ASC 606, Revenue from Contracts with Customers, revenue is recognized in accordance with the transfer of goods and services to customers at an amount that reflects the consideration that the Company expects to be entitled to for those goods and services. The Company determines revenue recognition through the following steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract; • determination of the transaction price, including the constraint on variable consideration; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when (or as) the Company satisfies a performance obligation. Most of the Company’s revenue is derived from real estate sales of condominiums and commercial properties in the PRC. The majority of the Company’s contracts contain a single performance obligation involving significant real estate development activities that are performed together to deliver a real estate property to customers. Revenues arising from real estate sales are recognized when or as the control of the asset is transferred to the customer. The control of the asset may transfer over time or at a point in time. For the sales of individual condominium units in a real estate development project, the Company has an enforceable right to payment for performance completed to date, revenue is recognized over time by measuring the progress towards complete satisfaction of that performance obligation (“percentage completion method”). Otherwise, revenue is recognized at a point in time when the customer obtains control of the asset. Under percentage completion method, revenue and profit from the sales of long-term real estate development properties is recognized by the percentage of completion method on the sale of individual units when all the following criteria are met: a. Construction is beyond a preliminary stage. b. The buyer is committed to the extent of being unable to require a refund except for non-delivery of the unit or interest. c. Sufficient units have already been sold to assure that the entire property will not revert to rental property. d. Sale prices are collectible. e. Aggregate sales proceeds and costs can be reasonably estimated. If any of the above criteria is not met, proceeds shall be accounted for as deposits until the criteria are met. Under the percentage of completion method, revenues from individual real estate condominium units sold under development and related costs are recognized over the course of the construction period, based on the completion progress of a project. The progress towards complete satisfaction of the performance obligation is measured based on the Company’s efforts or inputs to the satisfaction of the performance obligation, by reference to the contract costs incurred up to the end of reporting period as a percentage of total estimated costs for each contract. In relation to any project, revenue is determined by calculating the ratio of incurred costs, including land use rights costs and construction costs, to total estimated costs and applying that ratio to the contracted sales amounts. Cost of sales is recognized by determining the ratio of contracted sales during the period to total estimated sales value, and applying that ratio to the incurred costs. Current period amounts are calculated based on the difference between the life-to-date project totals and the previously recognized amounts. Any changes in significant judgments and/or estimates used in determining construction and development revenue could significantly change the timing or amount of construction and development revenue recognized. Changes in total estimated project costs or losses, if any, are recognized in the period in which they are determined. Revenue from the sales of previously completed real estate condominium units is recognized at the time of the closing of an individual unit sale. This occurs when the customer obtains the physical possession, the legal title, or the significant risks and rewards of ownership of the assets and the Company has the right to payment and the collection of the consideration is probable. For municipal road construction projects, fees are generally recognized at the time the projects are completed. Disaggregation of Revenues Disaggregated revenues was as follows: For the three months ended March 31, 2021 2020 Revenue recognized for completed condominium real estate projects $ 18,278,112 $ 1,889,829 Revenue recognized for condominium real estate projects under development — — Total $ 18,278,112 $ 1,889,829 For the six months ended March 31, 2020 2019 Revenue recognized for completed condominium real estate projects $ 21,033,374 $ 4,194,073 Revenue recognized for condominium real estate projects under development — — Total $ 21,033,374 $ 4,194,073 Contract balances Timing of revenue recognition may differ from the timing of billing and cash receipts from customers. The Company records a contract asset when revenue is recognized prior to invoicing, or a contract liability when cash is received in advance of recognizing revenue. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets include billed and billable receivables, which are the Company’s unconditional rights to consideration other than to the passage of time. Contract liabilities include cash collected in excess of revenues. Customer deposits are excluded from contract liabilities. The Company has elected to apply the optional practical expedient for costs to obtain a contract which allows the Company to immediately expense sales commissions (included under selling expenses) because the amortization period of the asset that the Company otherwise would have used is one year or less. The Company provides “mortgage loan guarantees” only with respect to buyers who make down-payments of 20%‑50% of the total purchase price of the property. The period of the mortgage loan guarantee begins on the date the bank approves the buyer’s mortgage and we receive the loan proceeds in our bank account and ends on the date the “Certificate of Ownership” evidencing that title to the property has been transferred to the buyer. The procedures to obtain the Certificate of Ownership take six to twelve months (the “Mortgage Loan Guarantee Period”). If, after investigation of the buyer’s income and other relevant factors, the bank decides not to grant the mortgage loan, our mortgage-loan based sales contract terminates and there will be no guarantee obligation. If, during the Mortgage Loan Guarantee Period, the buyer defaults on his or her monthly mortgage payment for three consecutive months, we are required to return the loan proceeds back to the bank, although we have the right to keep the customer’s deposit and resell the property to a third party. Once the Certificate of Ownership has been issued by the relevant government authority, our loan guarantee terminates. If the buyer then defaults on his or her mortgage loan, the bank has the right to take the property back and sell it and use the proceeds to pay off the loan. The Company is not liable for any shortfall that the bank may incur in this event. To date, no buyer has defaulted on his or her mortgage payments during the Mortgage Loan Guarantee Period and the Company has not returned any loan proceeds pursuant to its mortgage loan guarantees.
Foreign currency translation	Foreign currency translation The Company’s financial information is presented in U.S. dollars. The functional currency of the Company’s operating subsidiaries is Renminbi (“RMB”), the currency of the PRC. The financial statements of the Company have been translated into U.S. dollars in accordance with ASC 830‑30 “Translation of Financial Statements”. The financial information is first prepared in RMB and then is translated into U.S. dollars at period-end exchange rates as to assets and liabilities and average exchange rates as to revenue and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income in stockholders’ equity. For three months For six months ended March 31, ended March 31, September 30, 2021 2020 2021 2020 2020 Period end RMB : USD exchange rate 6.5518 7.0808 6.5518 7.0808 6.7896 Period average RMB : USD exchange rate 6.4817 6.9786 6.5526 7.0117 7.0056 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation.
Real estate property development completed and under development	Real estate property development completed and under development Real estate property consists of finished residential unit sites, commercial offices and residential unit sites under development. The Company leases the land for the residential unit sites under land use right leases with various terms from the PRC government. The cost of land use rights is included in the development cost and allocated to each project. Real estate property development completed and real estate property under development are stated at the lower of cost or fair value. Expenditures for land development, including cost of land use rights, deed tax, pre-development costs, and engineering costs, exclusive of depreciation, are capitalized and allocated to development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio of the sales area of units to the estimated total sales area of the project (or phase of the project) multiplied by the total cost of the project (or phase of the project). Cost of amenities transferred to buyers is allocated to specific units as a component of total construction cost. The amenity cost includes landscaping, road paving, etc. Once the projects are completed, the amenities are under control of the property management companies. Real estate property development completed and under development are subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is recognized only if the carrying amount of the assets is not recoverable and exceeds its fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to be generated by the assets. The Company reviews all of its real estate projects for future losses and impairment by comparing the estimated future undiscounted cash flows for each project to the carrying value of such project. For the three and six months ended March 31, 2021 and 2020, the Company did not recognize an impairment loss for any of its real estate properties.
Capitalization of Interest	Capitalization of Interest Interest incurred during and directly related to real estate development projects is capitalized to the related real estate property under development during the active development period, which generally commences when borrowings are used to acquire real estate assets and ends when the properties are substantially complete or the property becomes inactive. Interest is capitalized based on the interest rate applicable to specific borrowings or the weighted average of rates applicable to other borrowings during the period. Interest capitalized to real estate property under development is recorded as a component of the cost of real estate sales when related units are sold. All other interest is expensed as incurred. For the three and six months ended March 31, 2020, the total interest capitalized in the real estate property development was $1,705,550 and $3,474,114, respectively. For the three and six months ended March 31, 2020, the total interest capitalized in the real estate property development was $1,732,506 and $3,460,383, respectively
Impairment of long-lived assets	Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds its estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally determined by using the asset's expected future discounted cash flows or market value. The Company estimates fair value of the assets based on certain assumptions such as budgets, internal projections, and other available information as considered necessary. There was no impairment of long-lived assets during the three and six months ended March 31, 2021 and 2020.
Income taxes	Income taxes Deferred tax assets and liabilities are for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowances is established, when necessary, to reduce net deferred tax assets to the amount expected to be realized. ASC 740-10-25 prescribes a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax positions taken (or expected to be taken) in a tax return. It also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. There are no material uncertain tax positions as of March 31, 2021 and September 30, 2020. The Company is a corporation organized under the laws of the State of Florida. However, all of the Company’s operations are conducted solely by its subsidiaries and VIE in the PRC. No income is earned in the United States and the management does not repatriate any earnings outside the PRC. As a result, the Company did not generate any U.S. taxable income for the three and six months ended March 31, 2021 and 2020. As of March 31, 2021, the Chinese entities’ income tax returns filed in China for the years ended December 31, 2020, 2019, 2018, 2017 and 2016 are subject to examination by the Chinese taxing authorities. The parent Company China HGS Real Estate Inc.’s both U.S. federal tax returns and Florida state tax returns are delinquent since 2009. Its tax years ended September 30, 2009 through September 30, 2020 remain open for statutory examination by U.S. federal and state tax authorities. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a U.S. corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. Due to the complexity involved in applying the provisions of the Tax Act, we made reasonable estimates of the effects and recorded accrued amounts in our consolidated financial statements as of March 31, 2021 and September 30, 2020, including an approximately $2.3 million provision on the deemed repatriation of undistributed foreign earnings and an additional $0.8 million provision for delinquent U.S. and State tax fillings. The Company is in the process of engaging a tax professional to file its delinquent tax returns. Failure to furnish any income tax and information returns with respect to any foreign business entity required, within the time prescribed by the IRS, subjects the Company to civil penalties.
Land appreciation tax ("LAT")	Land appreciation tax (“LAT”) In accordance with the relevant taxation laws in the PRC, the Company is subject to LAT based on progressive rates ranging from 30% to 60% on the appreciation of land value, which is calculated as the proceeds of sales of properties less deductible expenditures including borrowing costs and all property development expenditures. LAT is exempted if the appreciation values do not exceed certain thresholds specified in the relevant tax laws. The whole project must be completed before the LAT obligation can be assessed. Accordingly, the Company should record the liability and the total related expense at the completion of a project unless the tax authorities impose an assessment at an earlier date. The methods to implement this tax law vary among different geographic areas. Hanzhong, where the project Mingzhu Garden, Nan Dajie and Central Plaza are located, implements this tax rule by requiring real estate companies prepay the LAT based upon customer deposits received. The tax rate in Hanzhong is 1%. Yang County, where the Yangzhou Pearl Garden and Yangzhou Palace projects are located, has a tax rate of 0.5%.
Comprehensive income (loss)	Comprehensive income (loss) In accordance with ASC 220-10-55, comprehensive income (loss) is defined as all changes in equity except those resulting from investments by owners and distributions to owners. The Company’s only components of comprehensive income (loss) for the three and six months ended March 31, 2021 and 2020 were net income (loss) and foreign currency translation adjustments.
Basic and diluted earnings (loss) per share	Basic and diluted earnings (loss) per share The Company computes earnings (loss) per share (“EPS”) in accordance with the FASB ASC 260, “Earnings per share”, which requires companies to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There were no anti-dilutive share for the three and six months ended March 31, 2021 and 2020.
Concentration risk	Concentration risk The Company's operations are carried out in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC's economy. The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America. The Company's results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. The Company's cash and restricted cash were on deposit at financial institutions in the PRC, which the management believes are of high credit quality. In May, 2015, China's new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in China are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company's accounts, as its aggregate deposits are much higher than the compensation limit of RMB500,000 (approximately $76,300). However, the Company believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in China and the Company believes that those Chinese banks that hold the Company's cash and restricted cash are financially sound based on public available information. The Company has not experienced any losses in its bank accounts. The Company is dependent on third-party sub-contractors, manufacturers, and distributors for all construction services and supply of construction materials. For the three and six months ended March 31, 2021 and 2020, no supplier accounted for more than 10% of the total project expenditures. For the three and six months ended March 31, 2021, the Company had real estate sales revenue of $14,432,275 related to sales to the local government for residence reallocation purposes, representing 79% and 68.6% of the Company’s total real estate sales revenue for the three and six months ended March 31,2021, respectively. For the three and six months ended March 31, 2020, the Company did not have any individual customer with over 10% of the Company real estate sales revenue for the related periods.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses," "ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses," "Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," and "ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief," which provided additional implementation guidance on the previously issued ASU. The ASU is effective for fiscal years beginning after December 15, 2020. The ASU requires a modified retrospective adoption method. The Company is still evaluating the impact of adoption on its financial statements and disclosures. In October 2018, the FASB issued ASU No. 2018-17 ("ASU 2018-17"), Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities. The updated guidance requires entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety when determining whether a decision-making fee is a variable interest. The amendments in this update are effective for non-public business entities for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021, with early adoption permitted. These amendments should be applied retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. Management has considered all other recent accounting pronouncements issued. The Company's management believes that these recent pronouncements will not have a material effect on the Company's financial statements.

ORGANIZATION AND BASIS OF PRE_2

ORGANIZATION AND BASIS OF PRESENTATION (Tables)	6 Months Ended
	Mar. 31, 2021
ORGANIZATION AND BASIS OF PRESENTATION
Schedule of Disaggregated revenues	For the three months ended March 31, 2021 2020 Revenue recognized for completed condominium real estate projects $ 18,278,112 $ 1,889,829 Revenue recognized for condominium real estate projects under development — — Total $ 18,278,112 $ 1,889,829 For the six months ended March 31, 2020 2019 Revenue recognized for completed condominium real estate projects $ 21,033,374 $ 4,194,073 Revenue recognized for condominium real estate projects under development — — Total $ 21,033,374 $ 4,194,073

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Mar. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of Currency exchange rate	For three months For six months ended March 31, ended March 31, September 30, 2021 2020 2021 2020 2020 Period end RMB : USD exchange rate 6.5518 7.0808 6.5518 7.0808 6.7896 Period average RMB : USD exchange rate 6.4817 6.9786 6.5526 7.0117 7.0056

REAL ESTATE PROPERTY DEVELOPM_2

REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT (Tables)	6 Months Ended
	Mar. 31, 2021
REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT
Schedule of components of real estate property development completed and under development	NOTE 3. REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT The following summarizes the components of real estate property development completed and under development As of March 31, 2021 and September 30, 2020: Balance as of March 31, 2021 September 30, 2020 (Unaudited) Development completed: Hanzhong City Mingzhu Garden Phase II $ 23,487,591 $ 22,801,439 Hanzhong City Oriental Pearl Garden 20,660,729 19,937,105 Yang County Yangzhou Pearl Garden Phase II 2,616,474 2,559,977 Yang County Yangzhou Palace 46,594,626 49,372,737 Real estate property development completed $ 93,359,420 $ 94,671,258 Under development: Hanzhong City Liangzhou Road and related projects (a) $ 174,713,368 $ 164,879,955 Hanzhong City Nanyuan II project(e) 23,185,457 — Hanzhong City Hanfeng Beiyuan East (b) 854,422 824,496 Hanzhong City Beidajie (b) 46,530,230 57,142,127 Yang County East 2 nd Ring Road (c) 5,868,290 4,894,439 Real estate property under development $ 251,151,767 $ 227,741,017 (a) In September 2013, the Company entered into an agreement (“Liangzhou Agreement”) with the Hanzhong local government on the Liangzhou Road reformation and expansion project (Liangzhou Road Project”). Pursuant to the agreement, the Company is contracted to reform and expand the Liangzhou Road, a commercial street in downtown Hanzhong City, with a total length of 2,080 meters and width of 30 meters and to resettle the existing residences in the Liangzhou road area. The government’s original road construction budget was approximately $33 million in accordance with the Liangzhou Agreement. The Company, in return, is being compensated by the local government to have an exclusive right on acquiring at least 394.5 Mu land use rights in a specified location of Hanzhong City. The Liangzhou Road Project’s road construction started at the end of 2013. In 2014, the original scope and budget on the Liangzhou road reformation and expansion project was extended, because the local government included more area and resettlement residences into the project, which resulted in additional investments from the Company. In return, the Company is authorized by the local government to develop and manage the commercial and residential properties surrounding the Liangzhou Road project. As of March 31, 2021, the main Liangzhou road construction is substantially completed. The Company launched the construction of the Liangzhou Road related projects in December 2020. The Company’s development cost incurred on Liangzhou Road Project is treated as the Company’s deposit on purchasing the related land use rights, as agreed by the local government. As of March 31, 2021, the actual costs incurred by the Company were $174,713,368 (September 30, 2019 - $164,879,955) and the incremental cost related to residence resettlement approved by the local government. The Company determined that the Company’s Investment in Liangzhou Road Project in exchange for interests in future land use rights is a barter transaction with commercial substance. (b) In September 2012, the Company was approved by the Hanzhong local government to construct four municipal roads with a total length of approximately 1,192 meters. The project was deferred and then restarted during the quarter ended June 30, 2014. As of March 31, 2021, the local government has not completed the budget for these projects therefore the delivery for these projects for government's acceptance and related settlement were extended to 2022. Due to delays in the government approval and slow development progress, the Company disposed of certain construction properties in the Beidajie project to Hanzhong Guangsha Real Estate Development Inc. ("Hanzhong Guangsha") an entity controlled by the Company’s chairman and Chief executive officer Mr. Xiaojun Zhu to settle the payable of approximately $28.2 million related to Hanzhong Guangsha in connection with the acquisition of the Hanzhong Nanyuan II Project disclosed below in (e). (c) The Company was engaged by the Yang County local government to construct the East 2nd Ring Road with a total length of 2.15 km. The local government is required to repay the Company’s project investment costs within 3 years with interest at the interest rate based on the commercial borrowing rate with the similar term published by the China Construction Bank (December 31, 2020 and 2019 – 4.75%). The local government has approved a refund to the Company by reducing local surcharges or taxes otherwise required in the real estate development. The road construction was substantially completed as of March 31, 2021 and in process of government review and approval. (e) On January 20, 2021, the Company entered into agreement with Hanzhong Guangsha, an entity controlled by the Company's chairman and Chief executive officer Mr. Xiaojun Zhu, to acquire certain real estate under development in the Hanzhong Nanyuan II Project in the amount of approximately $28.2 million , for the local government's residence reallocation related to the Liangzhou road and affiliated project. The remaining balance of the real estate under development in the Hanzhong Nanyuan II project is expected to be completed before September 30, 2021 and will be sold to the local government for residence reallocation purposes.

CONSTRUCTION LOANS (Tables)

CONSTRUCTION LOANS (Tables)	6 Months Ended
	Mar. 31, 2021
CONSTRUCTION LOANS
Schedule of long-term debt instruments	March 31, September 30, 2021 2020 (Unaudited) Loan A $ 97,939,013 $ 92,450,491 Loan B 18,121,611 17,486,917 Total $ 116,060,624 $ 109,937,408 (A) On June 26, 2015 and March 10, 2016, the Company signed phase I and Phase II agreements with Hanzhong Urban Construction Investment Development Co., Ltd, a state-owned Company, to borrow up to approximately $118.8 million (RMB 775,000,000) for a long term loan with interest at 4.75% to the develop Liangzhou Road Project. As of September 30, 2020, the Company borrowed $97,832,408 under this credit line with a due date in October 2021. Due to local government’s delay in the reallocation of residences in the Liangzhou Road Project and related area, the Hanzhong Urban Construction Investment Development Co., Ltd has not released all the funds available to the Company and additional withdrawals will be based on the project’s development progress and the Company expects the loan will be extended upon maturity. The loan is guaranteed by Hanzhong City Hantai District Municipal Government and pledged by the Company’s Yang County Yangzhou Palace project with a carrying value of $46,594,626 as of March 31, 2021 (September 30, 2020- $49,372,737). For the three and six months ended March 31, 2021, the interest was $1,570,490 and $3,203,279, respectively, which was capitalized into the development cost of the Liangzhou Road Project. For the three and six months ended March 31, 2020, interest was $1,599,637 and $3,195,887, respectively, which was capitalized in to the development cost of the Liangzhou Road Project. (B) In December 2016, the Company signed a loan agreement with Hantai District Urban Construction Investment Development Co., Ltd, a state-owned Company, to borrow up to approximately $18.2 million (RMB 119,000,000) for the development of the Hanzhong City Liangzhou Road Project. The interest is 1.2% and due on June 20, 2031. The Company is required to repay the loan by equal annual principal repayments of approximately $3.3 million commencing from December 2027 through June 2031 with interest payable on an annual basis. The Company pledged the assets of the Liangzhou Road related projects with a carrying value of $174,713,368 as collateral for the loan. Total interest of $54,262 and $109,583 for the three and six months ended March 31, 2021, respectively, was capitalized into the development cost of the Hanzhong City Liangzhou Road Project. Total interest of $51,732 and $102,961 for the three and six months ended March 31, 2020, respectively, were capitalized into the development cost of Hanzhong City Liangzhou Road Project.

CUSTOMER DEPOSITS (Tables)

CUSTOMER DEPOSITS (Tables)	6 Months Ended
	Mar. 31, 2021
CUSTOMER DEPOSITS
Schedule of customer deposits from pre-sale of residential units	Customer deposits consist of amounts received from customers for the pre-sale of residential units in the PRC. The detail of customer deposits is as follows: March 31, September 30, 2021 2020 (Unaudited) Customer deposits by real estate projects: Mingzhu Garden (Mingzhu Nanyuan and Mingzhu Beiyuan) $ 7,906,459 $ 7,606,944 Oriental Pearl Garden 4,669,289 4,358,467 Liangzhou Road and related projects 615,098 888,123 Yangzhou Pearl Garden 1,442,548 1,243,137 Yangzhou Palace 6,864,633 5,308,857 Total $ 21,498,027 $ 19,405,528

TAXES (Tables)

TAXES (Tables)	6 Months Ended
	Mar. 31, 2021
TAXES
Schedule of reconciliation of statutory rates to the Company's effective tax rate	Three months ended Six months ended March 31, March 31, 2021 2020 2021 2020 Chinese statutory tax rate 25 % 25 % 25 % 25 % Valuation allowance change and other adjustments* — (9.8) % — (14.7) % Effective tax rate 25 % 15.2 % $ 25 % 10.3 %
Schedule of Income tax expenses	Three months ended Six months ended March 31, March 31, 2021 2020 2021 2020 Current tax provision $ 741,431 $ 67,000 $ 839,624 $ 134,000 Deferred tax provision — (178,699) — (235,179) Income tax provision $ 741,431 $ (111,699) $ 839,624 $ (101,179)
Schedule of taxes payable	December 31, September 30, 2020 2020 (Unaudited) (Unaudited) CIT $ 13,241,343 $ 12,213,470 VAT payable 4,643,839 5,159,296 Other taxes and fees 2,707,425 2,508,445 Tax payable $ 20,592,607 $ 19,881,211

ORGANIZATION AND BASIS OF PRE_3

ORGANIZATION AND BASIS OF PRESENTATION - Schedule of Variable Interest Entities (Details)	3 Months Ended	6 Months Ended
	Mar. 31, 2020USD ($)	Mar. 31, 2021USD ($)project	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)
Revenues	$ 4,200,000	$ 21,000,000
Total liabilities		201,641,624	$ 185,638,332
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 4,536,248	3,853,310	3,867,536	$ 4,202,117
Variable Interest Entity, Primary Beneficiary [Member]
Loan Payable maturity less than one year		116,100,000
Loan Payable maturity within one year		31,900,000
Residential and Commercial Unit for Sale		93,400,000
Account Payable to Suppliers and Subcontractors		31,900,000
Short Term Construction Loan		116,100,000
Customer Deposits		$ 21,500,000
Number of Ongoing Project | project		6
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents		$ 3,900,000	$ 3,900,000

ORGANIZATION AND BASIS OF PRE_4

ORGANIZATION AND BASIS OF PRESENTATION - Revenue recognition (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
ORGANIZATION AND BASIS OF PRESENTATION
Revenue recognized for completed condominium real estate projects	$ 18,278,112	$ 1,889,829	$ 21,033,374	$ 4,194,073
Revenue recognized for condominium real estate projects under development	0	0	0	0
Total	$ 18,278,112	$ 1,889,829	$ 21,033,374	$ 4,194,073

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Currency Exchange Rate (Details) - ¥ / $	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Period end RMB:USD exchange rate	6.551800	7.080800	6.551800	7.080800	6.789600
Period average RMB:USD exchange rate	6.481700	6.978600	6.552600	7.011700	7.005600

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details)	Dec. 22, 2017	Mar. 31, 2021USD ($)shares	Mar. 31, 2020USD ($)shares	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Sep. 30, 2020USD ($)	Dec. 31, 2020	Mar. 31, 2021CNY (¥)	Mar. 31, 2021USD ($)
Significant Accounting Policies [Line Items]
Real Estate Property Plant And Equipment Interest Capitalization		$ 1,705,550	$ 1,732,506	$ 3,474,114	$ 3,460,383
Impairment of long lived assets				0	$ 0
Effective Income Tax Rate Reconciliation Provision For Delinquent Tax Filings				2,300,000		$ 2,300,000
Additional Provision for Tax				$ 800,000		$ 800,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%		25.00%	25.00%	25.00%		21.00%	21.00%
Anti-dilutive shares | shares		0	0
Concentration Risk, Percentage		10.00%	10.00%	10.00%	10.00%
Real estate sales revenue		$ 18,278,112	$ 1,889,829	$ 21,033,374	$ 4,194,073
Aggregate deposits								¥ 500,000	$ 76,300
Sales Revenue | Customer
Significant Accounting Policies [Line Items]
Concentration Risk, Percentage		79.00%		68.60%
Real estate sales revenue		$ 14,432,275		$ 14,432,275
Hanzhong
Significant Accounting Policies [Line Items]
Land appreciation tax rate				1.00%
Yang County
Significant Accounting Policies [Line Items]
Land appreciation tax rate				0.50%
Minimum
Significant Accounting Policies [Line Items]
Percentage of down payments to total purchase price of property to receive mortgage loan guarantees				20.00%
Land appreciation tax rate				30.00%
Maximum
Significant Accounting Policies [Line Items]
Percentage of down payments to total purchase price of property to receive mortgage loan guarantees				50.00%
Land appreciation tax rate				60.00%

REAL ESTATE PROPERTY DEVELOPM_3

REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT - Components of Real Estate (Details) - USD ($)	Mar. 31, 2021	Sep. 30, 2020
Real Estate Properties [Line Items]
Real estate property development completed	$ 93,359,420	$ 94,671,258
Real estate property under development -long-term	251,151,767	227,741,017
Hanzhong City Mingzhu Garden Phase II
Real Estate Properties [Line Items]
Real estate property development completed	23,487,591	22,801,439
Hanzhong City Oriental Pearl Garden
Real Estate Properties [Line Items]
Real estate property development completed	20,660,729	19,937,105
Yang County Yangzhou Pearl Garden Phase II
Real Estate Properties [Line Items]
Real estate property development completed	2,616,474	2,559,977
Yang County Yangzhou Palace
Real Estate Properties [Line Items]
Real estate property development completed	46,594,626	49,372,737
Hanzhong City Liangzhou Road and related projects
Real Estate Properties [Line Items]
Real estate property completed - long-term	174,713,368	164,879,955
Hanzhong City Hanfeng Beiyuan East
Real Estate Properties [Line Items]
Real estate property under development -long-term	854,422	824,496
Hanzhong City Beidajie
Real Estate Properties [Line Items]
Real estate property under development -long-term	46,530,230	57,142,127
Yang County East 2nd Ring Road
Real Estate Properties [Line Items]
Real estate property under development -long-term	5,868,290	4,894,439
Hanzhong City Nanyuan II project
Real Estate Properties [Line Items]
Real estate property completed - long-term	$ 23,185,457	$ 0

REAL ESTATE PROPERTY DEVELOPM_4

REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT - Additional Information (Details) - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2021	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019
Mr. Xiaojun Zhu
Real Estate Properties [Line Items]
Settlement Payable to business acquisiton	$ 28,200,000
Hanzhong City Liangzhou Road and related projects
Real Estate Properties [Line Items]
Budgeted Price For Municipal Roads	33,000,000
Land use right included in real estate property under development	394,500,000
Actual Construction And Development Costs Incurred	174,713,368	$ 164,879,955
Yang County East 2nd Ring Road
Real Estate Properties [Line Items]
Debt Instrument, Interest Rate, Stated Percentage			4.75%	4.75%
Hanzhong City Nanyuan II project
Real Estate Properties [Line Items]
Payments to acquire real estate development properties	$ 28,200,000

CONSTRUCTION LOANS - Other Loan

CONSTRUCTION LOANS - Other Loans-Long Term Portion (Details) - USD ($)	Mar. 31, 2021	Sep. 30, 2020
Total construction loans	$ 116,060,624	$ 109,937,408
Loan A
Total construction loans	97,939,013	92,450,491
Loan B
Total construction loans	$ 18,121,611	$ 17,486,917

CONSTRUCTION LOANS - Additional

CONSTRUCTION LOANS - Additional Information (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Sep. 30, 2017USD ($)	Mar. 31, 2021CNY (¥)	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2017CNY (¥)	Sep. 30, 2017USD ($)	Dec. 31, 2016CNY (¥)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment, Interest		$ 1,599,637		$ 3,195,887
Hantai District Urban Construction Investment Development Co., Ltd [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount							$ 174,713,368
Debt Instrument, Interest Rate, Stated Percentage						1.20%	1.20%
Interest Costs Capitalized		51,732		102,961
Debt Instrument, Periodic Payment, Interest	$ 54,262		$ 109,583
Debt Instrument, Periodic Payment, Principal			3,300,000
Agreement With Hanzhong Urban Construction Investment Development Co Ltd [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage						4.75%	4.75%
Long-term Line of Credit									$ 97,832,408
Line of Credit Facility, Maximum Borrowing Capacity						¥ 775,000,000	$ 118,800,000
Long-term Debt, Gross							$ 46,594,626		49,372,737
Debt Instrument, Periodic Payment, Interest	1,570,490		3,203,279
Agreement With Hanzhong Municipal Housing Provident Fund Management Center [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity												¥ 119,000,000	$ 18,200,000
Construction Loan [Member] | Urban Development Center Co., Ltd [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount										¥ 175,000,000	$ 26,800,000
Debt Instrument, Interest Rate, Stated Percentage										1.20%	1.20%
Interest Costs Capitalized		$ 76,062		$ 151,414
Line of Credit Facility, Maximum Borrowing Capacity								$ 0	$ 0
Debt Instrument, Periodic Payment, Interest	$ 79,798		$ 161,152
Debt Instrument, Periodic Payment, Principal					$ 5,000,000

CUSTOMER DEPOSITS - Customer De

CUSTOMER DEPOSITS - Customer Deposits From Pre-Sale Of Residential Units (Details) - USD ($)	Mar. 31, 2021	Sep. 30, 2020
Customer deposits by real estate projects:
Total	$ 21,498,027	$ 19,405,528
Hanzhong City Mingzhu Garden Phase I
Customer deposits by real estate projects:
Total	7,906,459	7,606,944
Oriental Pearl Garden
Customer deposits by real estate projects:
Total	4,669,289	4,358,467
Liangzhou Road and related projects
Customer deposits by real estate projects:
Total	615,098	888,123
Yang County Yangzhou Pearl Garden Phase I
Customer deposits by real estate projects:
Total	1,442,548	1,243,137
Yangzhou Palace
Customer deposits by real estate projects:
Total	$ 6,864,633	$ 5,308,857

CUSTOMER DEPOSITS - Additional

CUSTOMER DEPOSITS - Additional Information (Details) - Customer deposits [Member]	6 Months Ended
	Mar. 31, 2021
Minimum
Deposit Liabilities [Line Items]
Percentage of customer deposit of unit price for cash purchase	10.00%
Percentage of customer deposit to unit price for mortgage properties	30.00%
Maximum
Deposit Liabilities [Line Items]
Percentage of customer deposit of unit price for cash purchase	20.00%
Percentage of customer deposit to unit price for mortgage properties	50.00%

TAXES - Reconciliation Of Statu

TAXES - Reconciliation Of Statutory Rates To Effective Tax Rate (Details)	Dec. 22, 2017	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Mar. 31, 2021
TAXES
Chinese statutory tax rate	35.00%	25.00%	25.00%	25.00%	21.00%	21.00%
Valuation allowance change and other adjustments		(9.80%)		(14.70%)
Effective tax rate		15.20%	25.00%	10.30%

TAXES - Components of Income Ta

TAXES - Components of Income Tax Expenses (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
TAXES
Current tax provision	$ 741,431	$ 67,000	$ 839,624	$ 134,000
Deferred tax provision	0	(178,699)		(235,179)
Income tax expense	$ 741,431	$ (111,699)	$ 839,624	$ (101,179)

TAXES - Taxes Payable (Details)

TAXES - Taxes Payable (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020
TAXES
CIT		$ 13,241,343	$ 12,213,470
VAT payable	$ 4,643,839	4,643,839	5,159,296
Other taxes and fees		2,707,425	2,508,445
Tax payable		$ 20,592,607	$ 19,881,211

TAXES - Additional Information

TAXES - Additional Information (Details) - USD ($)	Dec. 22, 2017	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2020	Sep. 30, 2018	Dec. 31, 2020	Mar. 31, 2021
Income Taxes [Line Items]
Business sales tax			$ 4,643,839		$ 5,159,296		$ 4,643,839	$ 4,643,839
Effective Value Added Tax Rate Percentage			5.00%					5.00%
Income tax at statutory tax rate	35.00%	25.00%	25.00%	25.00%			21.00%	21.00%
Local income tax rate			25.00%
Income tax payable					12,213,470		$ 13,241,343
GILTI tax payable			$ 0		0			$ 0
Land appreciation tax payable					0		$ 0
Effective Income Tax Rate Reconciliation, Deduction, Percent			50.00%
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount						$ 2,300,000
Additional Provision for Tax			$ 800,000		800,000
Minimum
Income Taxes [Line Items]
Land appreciation tax rate			30.00%
Maximum
Income Taxes [Line Items]
Land appreciation tax rate			60.00%
Hanzhong
Income Taxes [Line Items]
Land appreciation tax rate			1.00%
Yang County
Income Taxes [Line Items]
Land appreciation tax rate			0.50%
Income tax payable			$ 13,241,343		11,639,537			13,241,343
PRC
Income Taxes [Line Items]
Income tax payable			$ 9,944,343		$ 8,342,537			$ 9,944,343

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - shares	Mar. 31, 2021	Sep. 30, 2020
STOCKHOLDERS' EQUITY
Common Stock, Shares, Issued Before Reverse Stock Split Effect	45,050,000
Common Stock, Shares, Outstanding Before Reverse Stock Split Effect	45,050,000
Common Stock, Shares, Issued	22,525,000	22,525,000
Common Stock, Shares, Outstanding	22,525,000	22,525,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2021	Sep. 30, 2020
Commitments And Contingencies [Line Items]
Outstanding guarantees of customers' mortgage loans	$ 66	$ 68
Security deposit provided for guarantee	$ 3.3	$ 3.4
Minimum
Commitments And Contingencies [Line Items]
Percentage of mortgage proceeds as security	5.00%

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) ¥ in Millions	Apr. 19, 2021USD ($)$ / sharesshares	Apr. 19, 2021CNY (¥)	Mar. 31, 2021$ / shares	Sep. 30, 2020$ / shares
Subsequent Event [Line Items]
Common stock, par value | $ / shares			$ 0.001	$ 0.001
Subsequent Event
Subsequent Event [Line Items]
Number of shares issued | shares	3,092,114
Purchaser received shares of common stock equivalent | ¥		¥ 43
Number of trading days | $	5
Accounts payable | ¥		¥ 43
Sale of stock, price per share | $ / shares	$ 2.13