Green Giant (GGEI) 10-Q 9 Aug 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Aug. 02, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Registrant Name	CHINA HGS REAL ESTATE INC.
Entity Central Index Key	1,158,420
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	HGSH
Entity Common Stock, Shares Outstanding		45,050,000

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Current assets:
Cash	$ 2,085,365	$ 1,333,919
Restricted cash	1,498,730	1,715,268
Cost and earnings in excess of billings	10,647,842	11,825,036
Real estate property development completed	65,629,882	75,391,512
Real estate property under development	48,766,106	55,154,153
Other current assets	5,509,313	228,223
Total current assets	134,137,238	145,648,111
Property, plant and equipment, net	695,857	780,038
Real estate property development completed, net of current portion	1,896,673	2,140,271
Security deposits for land use right	2,932,377	3,146,237
Real estate property under development, net of current portion	182,557,600	143,660,781
Due from local government for real estate property development completed	3,010,099	3,065,000
Total Assets	325,229,844	298,440,438
Current liabilities:
Bank loan	0	6,292,474
Other loans	6,149,632	5,674,239
Accounts payable	24,877,120	41,501,682
Other payables	9,810,636	12,676,362
Construction deposits	896,572	1,959,706
Billings in excess of cost and earnings	1,680,886	3,315,302
Customer deposits	19,508,249	17,387,969
Shareholder loan	1,810,000	1,810,000
Accrued expenses	3,440,961	4,855,891
Taxes payable	15,448,779	15,830,886
Total current liabilities	83,622,835	111,304,511
Deferred tax liabilities	4,882,100	4,711,161
Customer deposits, net of current portion	10,149,810	8,246,004
Other loans, less current portion	70,212,895	15,731,186
Construction deposits, net of current portion	700,921	972,432
Total liabilities	169,568,561	140,965,294
Commitments and Contingencies
Stockholders' equity
Common stock, $01 par value, 100,000,000 shares authorized, 45,050,000 shares issued and outstanding June 30, 2016 and September 30, 2015	45,050	45,050
Additional paid-in capital	17,809,016	17,764,316
Statutory surplus	16,439,333	16,439,333
Retained earnings	124,839,624	119,668,198
Accumulated other comprehensive income	(3,471,740)	3,558,247
Total stockholders' equity	155,661,283	157,475,144
Total Liabilities and Stockholders' Equity	$ 325,229,844	$ 298,440,438

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Sep. 30, 2015
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	45,050,000	45,050,000
Common stock, shares outstanding	45,050,000	45,050,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Real estate sales	$ 12,497,413	$ 26,014,516	$ 25,205,879	$ 60,138,945
Less: Sales tax	(847,938)	(1,655,046)	(1,741,251)	(3,892,435)
Cost of real estate sales	(8,183,462)	(9,347,052)	(15,520,371)	(27,702,998)
Gross profit	3,466,013	15,012,418	7,944,257	28,543,512
Operating expenses
Selling and distribution expenses	71,959	211,558	288,138	804,700
General and administrative expenses	609,428	427,363	1,668,790	1,636,889
Total operating expenses	681,387	638,921	1,956,928	2,441,589
Operating income	2,784,626	14,373,497	5,987,329	26,101,923
Interest expense	(29,917)	(22,540)	(203,057)	(54,300)
Income before income taxes	2,754,709	14,350,957	5,784,272	26,047,623
Provision for income taxes	310,548	641,368	612,846	1,441,943
Net income	2,444,161	13,709,589	5,171,426	24,605,680
Other comprehensive income (loss)
Foreign currency translation adjustment	(4,745,409)	306,940	(7,029,987)	1,086,967
Comprehensive income (loss)	$ (2,301,248)	$ 14,016,529	$ (1,858,561)	$ 25,692,647
Basic and diluted income per common share
Basic and diluted	$ 0.05	$ 0.30	$ 0.11	$ 0.55
Weighted average common shares outstanding
Basic	45,050,000	45,050,000	45,050,000	45,050,000
Diluted	45,050,000	45,075,821	45,050,000	45,089,819

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Net income	$ 5,171,426	$ 24,605,680
Adjustments to reconcile net income to net cash providing by (used in) operating activities:
Deferred tax provision	383,850	1,369,997
Stock based compensation	44,700	0
Depreciation	59,658	63,137
Changes in assets and liabilities:
Due from local government for real estate property development completed	0	815,661
Cost and earnings in excess of billings	681,609	942,175
Real estate property development completed	6,811,151	1,915,343
Real estate property under development	(42,105,175)	6,547,520
Other current assets	(5,418,847)	955,405
Accounts payables	(15,187,183)	(25,674,976)
Other payables	(2,373,223)	886,212
Billings in excess of cost and earnings	(1,526,997)	4,786,440
Customer deposits	5,257,341	(7,585,864)
Construction deposits	(1,236,962)	12,902
Accrued expenses	(1,248,883)	1,126,826
Taxes payable	310,218	2,471,784
Net cash (used in) providing by operating activities	(50,377,317)	13,238,242
Cash flows from investing activities
Purchase of fixed assets	(8,010)	0
Net cash used in investing activities	(8,010)	0
Cash flow from financing activities
Restricted cash	145,758	(181,039)
Proceeds from shareholder loan	840,077	10,500,816
Repayment of shareholder loan	(840,077)	(12,084,829)
Repayment of bank loans	(6,165,703)	(6,525,285)
Proceeds from other loans	62,793,918	9,787,928
Repayment of other loans	(5,559,922)	(12,094,617)
Net cash provided by (used in) financing activities	51,214,051	(10,597,026)
Effect of changes of foreign exchange rate on cash	(77,278)	17,623
Net increase in cash	751,446	2,658,839
Cash, beginning of period	1,333,919	1,125,545
Cash, end of period	2,085,365	3,784,384
Supplemental disclosures of cash flow information:
Interest paid	2,843,145	1,355,741
Income taxes paid	$ 369,885	$ 102,337

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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 space 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 nine months ended June 30, 2016 and 2015 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, 2015 filed with the SEC on December 18, 2015.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 have been eliminated upon consolidation. 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, budgeted costs, share-based compensation and other similar charges. Management believes that the estimates utilized in preparing its consolidated financial statements are reasonable and prudent. Actual results could differ from these estimates. The Company follows the provisions of 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 the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the accompanying condensed 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 long term customer, 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 long term other loans payable. Percentage of Completion method Real estate sales for the long term real estate projects are recognized under percentage completion method in accordance with the provisions of ASC 360-20-40D “Sale of Condominium Units”. Revenue and profit from the sales of long term development properties is recognized under 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. Sales 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. Percentage of Completion method Under the percentage of completion method, revenues from condominium units sold and related costs are recognized over the course of the construction period, based on the completion progress of a project. 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. Full accrual method Revenue from the sales of short term development properties, where the construction period is expected to be 18 months or less is recognized by the full accrual method at the time of the closing of an individual unit sale. This occurs when title to or possession of the property is transferred to the buyer. A sale is not considered consummated until (a) the parties are bound by the terms of a contract, (b) all consideration has been exchanged, (c) any permanent financing for which the seller is responsible has been arranged, (d) all conditions precedent to closing have been performed, (e) the seller does not have substantial continuing involvement with the property, and (f) the usual risks and rewards of ownership have been transferred to the buyer. Further, the buyer’s initial and continuing investment is adequate to demonstrate a commitment to pay for the property. The Company provides “mortgage loan guarantees” only with respect to buyers who make down-payments of 20 50 Full accrual method For municipal road construction projects, fees are generally recognized under the full accrual method at the time the projects are completed. 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 year-end exchange rates as to assets and liabilities and average exchange rates as to revenue and expenses. Stockholders’ equity 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 nine months September 30, 2016 2015 2015 Period end RMB : USD exchange rate 6.6443 6.1088 6.3568 Nine months average RMB : USD exchange rate 6.4875 6.1300 6.1653 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. Cash includes cash on hand and demand deposits in accounts maintained with commercial banks within the PRC. The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. The Company maintains bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. The restricted cash is required by the banks as collateral for mortgage loans given to the home buyers before obtaining the certificates of ownership of the properties as collateral. In order to provide the banks with the certificates of ownership, the Company is required to complete certain procedures with the Chinese government, which normally takes six to twelve months. Because the banks provide the loan proceeds to the Company without obtaining certificates of ownership as loan collateral during this six to twelve months’ period, the mortgage banks require the Company to maintain, as restricted cash, 5 10 Advances to vendors consist of balances paid to contractors and vendors for services and materials that have not been provided or received and generally relate to the development and construction of residential and commercial units in the PRC. Advances to vendors are reviewed periodically to determine whether their carrying value has become impaired. Historically, the Company has not experienced any losses as a result of these advances. Security deposits for land use rights consist of the deposits held by the PRC government for the purchase of land use rights and other deposit held by an unrelated party to transfer its land use rights to the Company. The deposits will be reclassified to real estate property under development upon the transfer of legal title. 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 real estate property under development are reclassified on the balance sheet into current and non-current portions based on the estimated date of construction completion and sales. The real estate property development completed classification is based on the estimated date that each property is expected to be sold within the Company’s normal operating cycle of the business and the Company’s sales plan. Real estate property development completed is classified as a current asset if the property is expected to be sold within the normal operating cycle of the business. Otherwise, it is classified as a non-current asset. Real estate property under development is classified as a current asset, if the property is reasonably expected to be completed within the Company’s normal operating cycle of the business. Otherwise, it is classified as a non-current asset. The majority of real estate projects the Company has completed in the past were multi-layer or sub-high-rise real estate projects. The Company considers its normal operating cycle is 12 months. 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 the rates applicable to other borrowings during the period. Interest capitalized to real estate property under development is expensed as a component of cost of real estate sales when related units are sold. All other interest is expensed as incurred. For the three and nine months ended June 30, 2016, the total interest capitalized in the real estate property development was $ 746,851 1,639,256 631,886 2,600,199 In accordance with ASC 360, "Accounting for the Impairment or Disposal of Long-Lived Assets", the Company is required to review 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 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 is no impairment of long-lived assets during the three and nine months ended June 30, 2016 and 2015. Customer deposits consist of amounts received from customers relating to the sale of residential units in the PRC. In the PRC, customers will generally obtain permanent financing for the purchase of their residential unit prior to the completion of the project. The lending institution will provide the funding to the Company upon the completion of the financing rather than the completion of the project. The Company receives these funds and recognizes them as a liability until the revenue can be recognized. The Company provides its customers with warranties which cover major defects of building structure and certain fittings and facilities of properties sold. The warranty period varies from two years to five years, depending on different property components the warranty covers. The Company continually estimates potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a property. Reserves are determined based on historical data and trends with respect to similar property types and geographical areas. The Company continually monitors the warranty reserve and makes adjustments to its pre-existing warranties, if any, in order to reflect changes in trends and historical data as information becomes available. The Company may seek further recourse against its contractors or any related third parties if it can be proved that the faults are caused by them. In addition, the Company also withholds up to 2 Construction deposits are the warranty deposits the real estate contractors provide to the Company upon signing the construction contracts. The Company can use such deposits to reimburse customers in the event of customer claims due to construction defects. The remaining balance of the deposits are returned to the contractors when the terms of the after-sale property warranty expires, which normally occurs within two to five years after the date of the deposit. Share-based payment transactions are measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period, or vesting period. Forfeitures are estimated at the time of grant and revised, if necessary, in the subsequent period if actual forfeitures differ from initial estimates. Forfeiture rate is estimated based on historical and future expectation of employee turnover rate and are adjusted to reflect future change in circumstances and facts, if any. Share-based compensation expense is recorded net of estimated forfeitures such that expense was recorded only for those stock options and common stock awards that are expected to vest. 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. Valuation allowances are established, when necessary, to reduce 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 position 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 June 30, 2016 and September 30, 2015. 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 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 nine months ended June 30, 2016 and 2015, respectively. As of June 30, 2016, the tax years ended September 30, 2007 through December 31, 2015 for the Company’s PRC entities remain open for statutory examination by PRC tax authorities. The parent Company China HGS Real Estate Inc.’s tax years ended September 30, 2011 through December 31, 2015 remains open for statutory examination by U.S. tax authorities. In accordance with the relevant taxation laws in the PRC, the Company is subject to LAT based on progressive rates ranging from 30 60 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, Nandajie 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 0.5 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) during the three and nine months ended June 30, 2016 and 2015 were net income and foreign currency translation adjustments. The Company computes earnings per share (“EPS”) in accordance with the ASC 260, “Earnings per share”, which requires companies to present basic and diluted EPS. Basic EPS is measured as net income 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. Advertising costs are expensed as incurred. For the three and nine months ended June 30, 2016, the Company recorded advertising expenses of $ 10,465 53,881 42,720 196,763 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. All of the Company’s cash is maintained with state-owned banks within the People’s Republic of China of which no deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in 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 months ended June 30, 2016, two suppliers accounted for over 39 14 22 20 19 16 46 13 25 22 10 Reclassification Restricted cash in 2015 cash flows have been reclassified as cash flow from financing activities to conform to the current period presentation. This reclassification has no effect on the accompanying condensed consolidated cash flows. In January 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance is intended to improve the recognition and measurement of financial instruments. The new guidance makes targeted improvements to existing U.S. GAAP by: (1) requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (2) Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; (3) Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and. (4) Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the effect, if any, this update will have on the Company's unaudited condensed consolidated financial position, results of operations and cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its unaudited condensed consolidated financial statements. In April 2016, the FASB released ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. While aimed at reducing the cost and complexity of the accounting for share-based payments, the amendments are expected to significantly impact net income, EPS, and the statement of cash flows. Implementation and administration may present challenges for companies with significant share-based payment activities. This ASU is effective for public companies in annual periods beginning after December 15, 2016, and interim periods within those years. The Company is currently evaluating the impact of this new standard on its unaudited condensed consolidated financial statements. In April 2016, FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this new standard on its unaudited condensed consolidated financial statements. In May 2016, the FASB issued ASU No. 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815); Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, which is rescinding certain SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive Activities—Oil and Gas, effective upon adoption of Topic 606. The Company is assessing the impact of the adoption of this ASU on its unaudited condensed consolidated financial statements, disclosure requirements and methods of adoption. In May 2016, FASB issued ASU No. 2016-12—Revenue from Contracts with Customers (Topic 606); Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The Company is assessing the impact of the adoption of this ASU on its unaudited condensed consolidated financial statements, disclosure requirements and methods of adoption.

REAL ESTATE PROPERTY DEVELOPMEN

REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT	9 Months Ended
	Jun. 30, 2016
Real Estate [Abstract]
REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT	NOTE 3. REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT June 30, 2016 September 30, 2015 Development completed Hanzhong City Mingzhu Garden Phase I $ 1,042,161 $ 1,146,277 Hanzhong City Mingzhu Garden Phase II 57,622,592 66,070,589 Hanzhong City Nan Dajie (Mingzhu Xinju) 1,376,980 1,439,257 Yang County Yangzhou Pearl Garden Phase I 2,961,051 3,419,273 Yang County Yangzhou Pearl Garden Phase II 4,523,771 5,456,387 Real estate property development completed 67,526,555 77,531,783 Less: Real estate property completed –short-term 65,629,882 75,391,512 Real estate property completed –long-term $ 1,896,673 $ 2,140,271 Under development: Hanzhong City Oriental Pearl Garden (a) $ 48,766,119 $ 55,154,153 Yang County Yangzhou Palace 69,154,951 47,843,166 Hanzhong City Shijin Project 7,290,118 7,619,829 Hanzhong City Liangzhou Road and related projects (b) 103,047,597 85,069,755 Hanzhong City Hanfeng Beiyuan East (c) 562,550 587,993 Hanzhong City Beidajie (e) 75,328 78,735 Yang County East 2nd Ring Road (d) 2,427,043 2,461,303 Real estate property under development 231,323,706 198,814,934 Less: Short-term portion 48,766,106 55,154,153 Real estate property under development –long-term $ 182,557,600 $ 143,660,781 (a) The Company recognized $ 5,789,026 8,709,207 1,940,411 8,559,833 (b) 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 As of June 30, 2016, the actual costs incurred by the Company were $ 103,047,597 85,069,755 64,322,132 (c) 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 year ended September 30, 2014. As of June 30, 2016, the Company still waited for the local government to finalize the budget for the project. (d) The Company was engaged by the Yang County local government to construct the East 2nd Ring Road with a total length of 2.15 kilometers and a budgeted price of approximately $ 25.3 168 5 5 (e) For the three and nine months ended June 30, 2016, the Company received government’s subsidies in the amount of $Nil and $ 3,160,604 As of June 30, 2016 and September 30, 2015, land use rights included in real estate property under development totaled $ 37,035,962 39,929,072

BANK LOAN

BANK LOAN	9 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
BANK LOAN	NOTE 4. BANK LOAN On August 23, 2013, the Company entered into a project finance loan agreement (the "Loan Agreement") with China Construction Bank, Hanzhong Branch (the “Bank") for development of the Company’s Mingzhu Beiyuan project and was fully repaid at June 30, 2016. The average interest rate of the loan was 5.5 131,952 216,515 822,843

OTHER LOANS

OTHER LOANS	9 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
OTHER LOANS	NOTE 5. OTHER LOANS June 30, 2016 September 30, 2015 Loan A (i) $ - $ 954,883 Loan B (ii) - 4,719,356 Loan C (iii) 64,322,132 15,731,186 Loan D (iv) 12,040,395 - 76,362,527 21,405,425 Less: current maturities of other loans 6,149,632 5,674,239 Other loans-long term portion $ 70,212,895 $ 15,731,186 (i) A working capital finance agreement with a local investment company in Hanzhong was fully repaid in fiscal 2016. The loan carried a fixed interest of 10 23,526 245,227 961,501 (ii) A line of credit with a financial institution was fully repaid in fiscal 2016. The line of credit carried a fixed interest of 20 107,900 82,418 532,898 (iii) 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 $ 116,641,336 775,000,000 4.245 64,322,132 69,154,951 652,422 1,305,307 Repayment in USD Repayment in RMB 29-May-2017 6,149,632 40,860,000 20-November-2017 6,149,632 40,860,000 20-April -2018 13,167,678 87,490,000 20-May-2018 6,256,491 41,570,000 20-November-2018 6,256,491 41,570,000 20-April-2019 13,167,678 87,490,000 20-May-2019 6,406,996 42,570,000 20-October-2019 13,167,678 87,490,000 29-November-2019 6,406,996 42,570,000 20-April-2020 13,172,193 87,520,000 20-October-2020 13,167,678 87,490,000 20-October-2021 13,172,193 87,520,000 Total 116,641,336 775,000,000 (iv) On January 8, 2016, the Company signed a loan agreement with Hanzhong Municipal Housing Provident Fund Management Center (“Housing Fund”) to borrow up to approximately $ 12,040,395 80,000,000 3.575 112,429 180,013 Repayment in USD Repayment in RMB Earlier of July 2018 or 60% sales completed 3,101,099 20,000,000 Earlier of October 2018 or 70% sales completed 4,515,148 30,000,000 Earlier of January 2019 or 75% sales completed 4,515,148 30,000,000 Total 12,040,395 80,000,000

CUSTOMER DEPOSITS

CUSTOMER DEPOSITS	9 Months Ended
	Jun. 30, 2016
Banking and Thrift [Abstract]
CUSTOMER DEPOSITS	NOTE 6. CUSTOMER DEPOSITS June 30, 2016 September 30, 2015 Customer deposits by real estate projects Mingzhu Garden (Mingzhu Nanyuan & Mingzhu Beiyuan) Phase I and II $ 10,182,279 $ 7,832,619 Hanzhong City Oriental Pearl Garden 5,746,658 7,220,575 Liangzhou road and related projects 2,746,715 2,035,615 Yang County Palace 3,579,312 6,210,389 Yangzhou Pearl Garden Phase I and II 7,403,095 2,334,775 Total 29,658,059 25,633,973 Less Customer deposits -short-term 19,508,249 17,387,969 Customer deposits - long-term $ 10,149,810 $ 8,246,004 Customer deposits are typically 10 20 20 50 1.5 1.7

RELATED PARTY LOANS

RELATED PARTY LOANS	9 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY LOANS	NOTE 7. RELATED PARTY LOANS June 30, 2016 September 30, Shareholder loan – USD loan (a) $ 1,810,000 $ 1,810,000 Shareholder loan – RMB loan (b) - - Total $ 1,810,000 $ 1,810,000 a. The Company has a one year loan agreement (“USD Loan Agreement”) with Mr. Xiaojun Zhu, the Chairman, CEO and major shareholder, pursuant to which the Company borrowed $ 1,810,000 18,100 54,300 18,100 54,300 b. On December 31, 2013, Shaanxi Guangsha Investment and Development Group Co., Ltd. (the “Guangsha”), the Company's PRC operating subsidiary, entered into a loan agreement with the Chairman (the “Shareholder RMB Loan Agreement”), pursuant to which Guangsha is able to borrow from Mr. Zhu in order to support the Company’s Liang Shan Road construction project development and the Company’s working capital needs. The Loan Agreement has a one-year term, and has been renewed with a new expiration date of June 30, 2017, with at an interest rate of 5.5 22,510 87,726 282,957

STOCK OPTIONS

STOCK OPTIONS	9 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTIONS	NOTE 8. STOCK OPTIONS On August 22, 2015, the Company’s Board of Directors granted stock options to two new independent directors to repurchase up to an aggregate of 120,000 1.89 27.8 2.8 The assumptions used in calculating the fair Options Risk-free interest rate 0.95 % Expected life of the options 3 year Expected volatility 143 % Expected dividend yield 0 % Fair value $ 178,800 The Company uses the Black-Scholes option-pricing model, which incorporates various assumptions including volatility, expected life and interest rates to determine fair value. The Company’s expected volatility assumption is based on the historical volatility of Company’s stock. The expected life assumption is primarily based on the simplified method due to the Company’s limited option exercise behavior. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The following table summarizes the stock option activities of the Company: Number of Weighted Weighted Aggregate Outstanding, September 30, 2015 130,000 $ 1.93 2.71 $ - Granted - - - - Forfeited (10,000) 1.31 - - Exercised - - - - Outstanding, June 30, 2016 120,000 $ 1.89 2.14 $ - Exercisable, June 30, 2016 33,333 $ 1.89 2.14 $ - The Company recorded $ 14,900 44,700

TAXES

TAXES	9 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
TAXES	NOTE 9. TAXES (A) Business sales tax and VAT The Company is subject to a 5 13,194,895 13,306,414 5 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 However, as approved by the local tax authority of Hanzhong City, the Company’s CIT was assessed annually at a pre-determined fixed rate as an incentive to stimulate the local economy and encourage entrepreneurship. The local income tax rate in Hanzhong is 2.5 1.25 310,548 612,846 641,368 1,441,943 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. Three months ended June Nine months ended June 2016 2015 2016 2015 Current tax provision $ 81,316 $ 5,778 $ 228,996 $ 71,946 Deferred tax provision 229,232 635,590 383,850 1,369,997 Income tax provision $ 310,548 $ 641,368 $ 612,846 $ 1,441,943 The parent Company China HGS Real Estate Inc. is incorporated in the United States. Net operating loss carry forwards for United States income tax purposes approximated to $ 500,160 401,000 2035 June 30, September 30, Deferred tax assets Deferred tax assets from net operating loss carry-forwards for U.S. parent company $ 170,054 $ 136,394 Valuation allowance (170,054) (136,394) Deferred tax asset-net $ - $ - Deferred tax liability Revenue recognized based on percentage of completion $ 4,882,100 $ 4,711,161 Deferred tax liability- long term $ 4,882,100 $ 4,711,161 The valuation allowance increased $ 11,220 33,660 6,154 18,462 (C) Land Appreciation Tax (“LAT”) Since January 1, 1994, LAT has been applicable at progressive tax rates ranging from 30 60 0.5 1.0 954,159 752,664 (D) Taxes payable consisted of the following: June 30, 2016 September 30, CIT $ 622,826 $ 794,780 Business tax 13,194,895 13,306,414 Other tax and fees 1,631,058 1,729,692 Total taxes payable $ 15,448,779 $ 15,830,886

COMMITMENTS AND CONTINGENCY

COMMITMENTS AND CONTINGENCY	9 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 10. COMMITMENTS AND CONTINGENCY 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 this six to twelve months’ period, the mortgage banks require the Company to maintain, as restricted cash, 5 10 1.5 1.7

SUMMARY OF SIGNIFICANT ACCOUN16

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
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 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, budgeted costs, share-based compensation and other similar charges. Management believes that the estimates utilized in preparing its consolidated financial statements are reasonable and prudent. Actual results could differ from these estimates.
Fair value of financial instruments	Fair value of financial instruments The Company follows the provisions of 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 the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the accompanying condensed 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 long term customer, 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 long term other loans payable.
Revenue recognition	Revenue recognition Percentage of Completion method Real estate sales for the long term real estate projects are recognized under percentage completion method in accordance with the provisions of ASC 360-20-40D “Sale of Condominium Units”. Revenue and profit from the sales of long term development properties is recognized under 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. Sales 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. Percentage of Completion method Under the percentage of completion method, revenues from condominium units sold and related costs are recognized over the course of the construction period, based on the completion progress of a project. 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. Full accrual method Revenue from the sales of short term development properties, where the construction period is expected to be 18 months or less is recognized by the full accrual method at the time of the closing of an individual unit sale. This occurs when title to or possession of the property is transferred to the buyer. A sale is not considered consummated until (a) the parties are bound by the terms of a contract, (b) all consideration has been exchanged, (c) any permanent financing for which the seller is responsible has been arranged, (d) all conditions precedent to closing have been performed, (e) the seller does not have substantial continuing involvement with the property, and (f) the usual risks and rewards of ownership have been transferred to the buyer. Further, the buyer’s initial and continuing investment is adequate to demonstrate a commitment to pay for the property. The Company provides “mortgage loan guarantees” only with respect to buyers who make down-payments of 20 50 Full accrual method For municipal road construction projects, fees are generally recognized under the full accrual method at the time the projects are completed.
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 year-end exchange rates as to assets and liabilities and average exchange rates as to revenue and expenses. Stockholders’ equity 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 nine months September 30, 2016 2015 2015 Period end RMB : USD exchange rate 6.6443 6.1088 6.3568 Nine months average RMB : USD exchange rate 6.4875 6.1300 6.1653 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.
Cash	Cash Cash includes cash on hand and demand deposits in accounts maintained with commercial banks within the PRC. The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. The Company maintains bank accounts in the PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs.
Restricted cash	Restricted Cash The restricted cash is required by the banks as collateral for mortgage loans given to the home buyers before obtaining the certificates of ownership of the properties as collateral. In order to provide the banks with the certificates of ownership, the Company is required to complete certain procedures with the Chinese government, which normally takes six to twelve months. Because the banks provide the loan proceeds to the Company without obtaining certificates of ownership as loan collateral during this six to twelve months’ period, the mortgage banks require the Company to maintain, as restricted cash, 5 10
Advances to vendors	Advances to vendors Advances to vendors consist of balances paid to contractors and vendors for services and materials that have not been provided or received and generally relate to the development and construction of residential and commercial units in the PRC. Advances to vendors are reviewed periodically to determine whether their carrying value has become impaired. Historically, the Company has not experienced any losses as a result of these advances.
Security deposits for land use rights	Security deposits for land use rights Security deposits for land use rights consist of the deposits held by the PRC government for the purchase of land use rights and other deposit held by an unrelated party to transfer its land use rights to the Company. The deposits will be reclassified to real estate property under development upon the transfer of legal title.
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 real estate property under development are reclassified on the balance sheet into current and non-current portions based on the estimated date of construction completion and sales. The real estate property development completed classification is based on the estimated date that each property is expected to be sold within the Company’s normal operating cycle of the business and the Company’s sales plan. Real estate property development completed is classified as a current asset if the property is expected to be sold within the normal operating cycle of the business. Otherwise, it is classified as a non-current asset. Real estate property under development is classified as a current asset, if the property is reasonably expected to be completed within the Company’s normal operating cycle of the business. Otherwise, it is classified as a non-current asset. The majority of real estate projects the Company has completed in the past were multi-layer or sub-high-rise real estate projects. The Company considers its normal operating cycle is 12 months. In accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”), 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 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 reviewed 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 nine months ended June 30, 2016 and 2015, the Company did not recognize any impairment for real estate property under development and completed.
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 the rates applicable to other borrowings during the period. Interest capitalized to real estate property under development is expensed as a component of cost of real estate sales when related units are sold. All other interest is expensed as incurred. For the three and nine months ended June 30, 2016, the total interest capitalized in the real estate property development was $ 746,851 1,639,256 631,886 2,600,199
Impairment of long-lived assets	Impairment of long-lived assets In accordance with ASC 360, "Accounting for the Impairment or Disposal of Long-Lived Assets", the Company is required to review 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 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 is no impairment of long-lived assets during the three and nine months ended June 30, 2016 and 2015.
Customer deposits	Customer deposits Customer deposits consist of amounts received from customers relating to the sale of residential units in the PRC. In the PRC, customers will generally obtain permanent financing for the purchase of their residential unit prior to the completion of the project. The lending institution will provide the funding to the Company upon the completion of the financing rather than the completion of the project. The Company receives these funds and recognizes them as a liability until the revenue can be recognized.
Property warranty	Property warranty The Company provides its customers with warranties which cover major defects of building structure and certain fittings and facilities of properties sold. The warranty period varies from two years to five years, depending on different property components the warranty covers. The Company continually estimates potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a property. Reserves are determined based on historical data and trends with respect to similar property types and geographical areas. The Company continually monitors the warranty reserve and makes adjustments to its pre-existing warranties, if any, in order to reflect changes in trends and historical data as information becomes available. The Company may seek further recourse against its contractors or any related third parties if it can be proved that the faults are caused by them. In addition, the Company also withholds up to 2
Construction Deposits	Construction Deposits Construction deposits are the warranty deposits the real estate contractors provide to the Company upon signing the construction contracts. The Company can use such deposits to reimburse customers in the event of customer claims due to construction defects. The remaining balance of the deposits are returned to the contractors when the terms of the after-sale property warranty expires, which normally occurs within two to five years after the date of the deposit.
Stock-based compensation	Share-based compensation Share-based payment transactions are measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period, or vesting period. Forfeitures are estimated at the time of grant and revised, if necessary, in the subsequent period if actual forfeitures differ from initial estimates. Forfeiture rate is estimated based on historical and future expectation of employee turnover rate and are adjusted to reflect future change in circumstances and facts, if any. Share-based compensation expense is recorded net of estimated forfeitures such that expense was recorded only for those stock options and common stock awards that are expected to vest.
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. Valuation allowances are established, when necessary, to reduce 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 position 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 June 30, 2016 and September 30, 2015. 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 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 nine months ended June 30, 2016 and 2015, respectively. As of June 30, 2016, the tax years ended September 30, 2007 through December 31, 2015 for the Company’s PRC entities remain open for statutory examination by PRC tax authorities. The parent Company China HGS Real Estate Inc.’s tax years ended September 30, 2011 through December 31, 2015 remains open for statutory examination by U.S. tax authorities.
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 60 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, Nandajie 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 0.5
Comprehensive income	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) during the three and nine months ended June 30, 2016 and 2015 were net income and foreign currency translation adjustments.
Basic and diluted earnings per share	Basic and diluted earnings per share The Company computes earnings per share (“EPS”) in accordance with the ASC 260, “Earnings per share”, which requires companies to present basic and diluted EPS. Basic EPS is measured as net income 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.
Advertising expenses	Advertising expenses Advertising costs are expensed as incurred. For the three and nine months ended June 30, 2016, the Company recorded advertising expenses of $ 10,465 53,881 42,720 196,763
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. All of the Company’s cash is maintained with state-owned banks within the People’s Republic of China of which no deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in 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 months ended June 30, 2016, two suppliers accounted for over 39 14 22 20 19 16 46 13 25 22 10
Reclassification	Reclassification Restricted cash in 2015 cash flows have been reclassified as cash flow from financing activities to conform to the current period presentation. This reclassification has no effect on the accompanying condensed consolidated cash flows.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2016, the FASB has issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance is intended to improve the recognition and measurement of financial instruments. The new guidance makes targeted improvements to existing U.S. GAAP by: (1) requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (2) Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; (3) Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; and. (4) Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the effect, if any, this update will have on the Company's unaudited condensed consolidated financial position, results of operations and cash flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its unaudited condensed consolidated financial statements. In April 2016, the FASB released ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. While aimed at reducing the cost and complexity of the accounting for share-based payments, the amendments are expected to significantly impact net income, EPS, and the statement of cash flows. Implementation and administration may present challenges for companies with significant share-based payment activities. This ASU is effective for public companies in annual periods beginning after December 15, 2016, and interim periods within those years. The Company is currently evaluating the impact of this new standard on its unaudited condensed consolidated financial statements. In April 2016, FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this new standard on its unaudited condensed consolidated financial statements. In May 2016, the FASB issued ASU No. 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815); Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, which is rescinding certain SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive Activities—Oil and Gas, effective upon adoption of Topic 606. The Company is assessing the impact of the adoption of this ASU on its unaudited condensed consolidated financial statements, disclosure requirements and methods of adoption. In May 2016, FASB issued ASU No. 2016-12—Revenue from Contracts with Customers (Topic 606); Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The Company is assessing the impact of the adoption of this ASU on its unaudited condensed consolidated financial statements, disclosure requirements and methods of adoption.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Currency Exchange Rate	For nine months September 30, 2016 2015 2015 Period end RMB : USD exchange rate 6.6443 6.1088 6.3568 Nine months average RMB : USD exchange rate 6.4875 6.1300 6.1653

REAL ESTATE PROPERTY DEVELOPM18

REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT (Tables)	9 Months Ended
	Jun. 30, 2016
Real Estate [Abstract]
Components of Real Estate Property Completed and under Development	The following summarizes the components of real estate property development completed and under development as of June 30, 2016 and September 30, 2015: June 30, 2016 September 30, 2015 Development completed Hanzhong City Mingzhu Garden Phase I $ 1,042,161 $ 1,146,277 Hanzhong City Mingzhu Garden Phase II 57,622,592 66,070,589 Hanzhong City Nan Dajie (Mingzhu Xinju) 1,376,980 1,439,257 Yang County Yangzhou Pearl Garden Phase I 2,961,051 3,419,273 Yang County Yangzhou Pearl Garden Phase II 4,523,771 5,456,387 Real estate property development completed 67,526,555 77,531,783 Less: Real estate property completed –short-term 65,629,882 75,391,512 Real estate property completed –long-term $ 1,896,673 $ 2,140,271 Under development: Hanzhong City Oriental Pearl Garden (a) $ 48,766,119 $ 55,154,153 Yang County Yangzhou Palace 69,154,951 47,843,166 Hanzhong City Shijin Project 7,290,118 7,619,829 Hanzhong City Liangzhou Road and related projects (b) 103,047,597 85,069,755 Hanzhong City Hanfeng Beiyuan East (c) 562,550 587,993 Hanzhong City Beidajie (e) 75,328 78,735 Yang County East 2nd Ring Road (d) 2,427,043 2,461,303 Real estate property under development 231,323,706 198,814,934 Less: Short-term portion 48,766,106 55,154,153 Real estate property under development –long-term $ 182,557,600 $ 143,660,781 (a) The Company recognized $ 5,789,026 8,709,207 1,940,411 8,559,833 (b) 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 As of June 30, 2016, the actual costs incurred by the Company were $ 103,047,597 85,069,755 64,322,132 (c) 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 year ended September 30, 2014. As of June 30, 2016, the Company still waited for the local government to finalize the budget for the project. (d) The Company was engaged by the Yang County local government to construct the East 2nd Ring Road with a total length of 2.15 kilometers and a budgeted price of approximately $ 25.3 168 5 5 (e) For the three and nine months ended June 30, 2016, the Company received government’s subsidies in the amount of $Nil and $ 3,160,604

OTHER LOANS (Tables)

OTHER LOANS (Tables) - OTHER LOANS [Member]	9 Months Ended
	Jun. 30, 2016
Schedule of Long-term Debt Instruments	June 30, 2016 September 30, 2015 Loan A (i) $ - $ 954,883 Loan B (ii) - 4,719,356 Loan C (iii) 64,322,132 15,731,186 Loan D (iv) 12,040,395 - 76,362,527 21,405,425 Less: current maturities of other loans 6,149,632 5,674,239 Other loans-long term portion $ 70,212,895 $ 15,731,186 (i) A working capital finance agreement with a local investment company in Hanzhong was fully repaid in fiscal 2016. The loan carried a fixed interest of 10 23,526 245,227 961,501 (ii) A line of credit with a financial institution was fully repaid in fiscal 2016. The line of credit carried a fixed interest of 20 107,900 82,418 532,898 (iii) 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 $ 116,641,336 775,000,000 4.245 64,322,132 69,154,951 652,422 1,305,307 (iv) On January 8, 2016, the Company signed a loan agreement with Hanzhong Municipal Housing Provident Fund Management Center (“Housing Fund”) to borrow up to approximately $ 12,040,395 80,000,000 3.575 112,429 180,013
Hanzhong Urban Construction Investment Development Co., Ltd [Member]
Schedule of Maturities of Long-term Debt	Repayment in USD Repayment in RMB 29-May-2017 6,149,632 40,860,000 20-November-2017 6,149,632 40,860,000 20-April -2018 13,167,678 87,490,000 20-May-2018 6,256,491 41,570,000 20-November-2018 6,256,491 41,570,000 20-April-2019 13,167,678 87,490,000 20-May-2019 6,406,996 42,570,000 20-October-2019 13,167,678 87,490,000 29-November-2019 6,406,996 42,570,000 20-April-2020 13,172,193 87,520,000 20-October-2020 13,167,678 87,490,000 20-October-2021 13,172,193 87,520,000 Total 116,641,336 775,000,000
Hanzhong Municipal Housing Provident Fund Management Center [Member]
Schedule of Maturities of Long-term Debt	Repayment in USD Repayment in RMB Earlier of July 2018 or 60% sales completed 3,101,099 20,000,000 Earlier of October 2018 or 70% sales completed 4,515,148 30,000,000 Earlier of January 2019 or 75% sales completed 4,515,148 30,000,000 Total 12,040,395 80,000,000

CUSTOMER DEPOSITS (Tables)

CUSTOMER DEPOSITS (Tables)	9 Months Ended
	Jun. 30, 2016
Banking and Thrift [Abstract]
Customer Deposits from Pre-Sale of Residential Units	Customer deposits consist of amounts received from customers for the pre-sale of residential units. The detail of customer deposits is as follows: June 30, 2016 September 30, 2015 Customer deposits by real estate projects Mingzhu Garden (Mingzhu Nanyuan & Mingzhu Beiyuan) Phase I and II $ 10,182,279 $ 7,832,619 Hanzhong City Oriental Pearl Garden 5,746,658 7,220,575 Liangzhou road and related projects 2,746,715 2,035,615 Yang County Palace 3,579,312 6,210,389 Yangzhou Pearl Garden Phase I and II 7,403,095 2,334,775 Total 29,658,059 25,633,973 Less Customer deposits -short-term 19,508,249 17,387,969 Customer deposits - long-term $ 10,149,810 $ 8,246,004

RELATED PARTY LOANS (Tables)

RELATED PARTY LOANS (Tables)	9 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Schedule of Shareholder Loan	June 30, 2016 September 30, Shareholder loan – USD loan (a) $ 1,810,000 $ 1,810,000 Shareholder loan – RMB loan (b) - - Total $ 1,810,000 $ 1,810,000 a. The Company has a one year loan agreement (“USD Loan Agreement”) with Mr. Xiaojun Zhu, the Chairman, CEO and major shareholder, pursuant to which the Company borrowed $ 1,810,000 18,100 54,300 18,100 54,300 b. On December 31, 2013, Shaanxi Guangsha Investment and Development Group Co., Ltd. (the “Guangsha”), the Company's PRC operating subsidiary, entered into a loan agreement with the Chairman (the “Shareholder RMB Loan Agreement”), pursuant to which Guangsha is able to borrow from Mr. Zhu in order to support the Company’s Liang Shan Road construction project development and the Company’s working capital needs. The Loan Agreement has a one-year term, and has been renewed with a new expiration date of June 30, 2017, with at an interest rate of 5.5 22,510 87,726 282,957

STOCK OPTIONS (Tables)

STOCK OPTIONS (Tables)	9 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Assumptions used in Calculating Fair Value of Options Granted	The assumptions used in calculating the fair Options Risk-free interest rate 0.95 % Expected life of the options 3 year Expected volatility 143 % Expected dividend yield 0 % Fair value $ 178,800
Stock Option Activities	Number of Weighted Weighted Aggregate Outstanding, September 30, 2015 130,000 $ 1.93 2.71 $ - Granted - - - - Forfeited (10,000) 1.31 - - Exercised - - - - Outstanding, June 30, 2016 120,000 $ 1.89 2.14 $ - Exercisable, June 30, 2016 33,333 $ 1.89 2.14 $ -

TAXES (Tables)

TAXES (Tables)	9 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	Income tax expense for the three and nine months ended June 30, 2016 and 2015 is summarized as follows: Three months ended June Nine months ended June 2016 2015 2016 2015 Current tax provision $ 81,316 $ 5,778 $ 228,996 $ 71,946 Deferred tax provision 229,232 635,590 383,850 1,369,997 Income tax provision $ 310,548 $ 641,368 $ 612,846 $ 1,441,943
Components of Deferred Taxes	The components of deferred taxes as of June 30, 2016 and September 30, 2015 consist of the following: June 30, September 30, Deferred tax assets Deferred tax assets from net operating loss carry-forwards for U.S. parent company $ 170,054 $ 136,394 Valuation allowance (170,054) (136,394) Deferred tax asset-net $ - $ - Deferred tax liability Revenue recognized based on percentage of completion $ 4,882,100 $ 4,711,161 Deferred tax liability- long term $ 4,882,100 $ 4,711,161
Taxes payable	June 30, 2016 September 30, CIT $ 622,826 $ 794,780 Business tax 13,194,895 13,306,414 Other tax and fees 1,631,058 1,729,692 Total taxes payable $ 15,448,779 $ 15,830,886

SUMMARY OF SIGNIFICANT ACCOUN24

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Currency Exchange Rate) (Details)	9 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Period end RMB : USD exchange rate	6.6443	6.1088	6.3568
Nine months average RMB : USD exchange rate	6.4875	6.13	6.1653

SUMMARY OF SIGNIFICANT ACCOUN25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Significant Accounting Policies [Line Items]
Advertising Expense	$ 10,465	$ 42,720	$ 53,881	$ 196,763
Percentage Of Contract Cost Withholds			2.00%
Real Estate Property Plant And Equipment Interest Capitalization	$ 746,851	$ 631,886	$ 1,639,256	$ 2,600,199
Supplier One [Member] | Project Expenditure [Member]
Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	39.00%	22.00%	46.00%	25.00%
Supplier Two [Member] | Project Expenditure [Member]
Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	14.00%	20.00%	13.00%	22.00%
Supplier Three [Member] | Project Expenditure [Member]
Significant Accounting Policies [Line Items]
Concentration Risk, Percentage		19.00%		10.00%
Supplier Four [Member] | Project Expenditure [Member]
Significant Accounting Policies [Line Items]
Concentration Risk, Percentage		16.00%
Hanzhong
Significant Accounting Policies [Line Items]
Land appreciation tax rate			1.00%
Yang Country
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%
Percentage Of Mortgage Proceeds As Security			5.00%
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%
Percentage Of Mortgage Proceeds As Security			10.00%
Land appreciation tax rate			60.00%

REAL ESTATE PROPERTY DEVELOPM26

REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT (Components Of Real Estate) (Details) - USD ($)		Jun. 30, 2016	Sep. 30, 2015
Real Estate Properties [Line Items]
Real estate property development completed		$ 67,526,555	$ 77,531,783
Less: Real estate property completed - short-term		65,629,882	75,391,512
Real estate property completed - long-term		1,896,673	2,140,271
Real estate property under development		231,323,706	198,814,934
Less: Short-term portion		48,766,106	55,154,153
Real estate property under development -long-term		182,557,600	143,660,781
Hanzhong City Mingzhu Garden Phase I
Real Estate Properties [Line Items]
Real estate property development completed		1,042,161	1,146,277
Hanzhogn City Mingzhu Garden Phase II
Real Estate Properties [Line Items]
Real estate property development completed		57,622,592	66,070,589
Hanzhong City Nan Dajie (Mingzhu Xinju)
Real Estate Properties [Line Items]
Real estate property development completed		1,376,980	1,439,257
Yang County Yangzhou Pearl Garden Phase I
Real Estate Properties [Line Items]
Real estate property development completed		2,961,051	3,419,273
Yang County Yangzhou Pearl Garden Phase II
Real Estate Properties [Line Items]
Real estate property development completed		4,523,771	5,456,387
Hanzhong City Oriental Pearl Garden
Real Estate Properties [Line Items]
Real estate property under development	[1]	48,766,119	55,154,153
Yang County Yangzhou Palace
Real Estate Properties [Line Items]
Real estate property under development		69,154,951	47,843,166
Hanzhong City Shijin Project
Real Estate Properties [Line Items]
Real estate property under development		7,290,118	7,619,829
Hanzhong City Liangzhou Road and related projects
Real Estate Properties [Line Items]
Real estate property under development	[2]	103,047,597	85,069,755
Hanzhong City Hanfeng Beiyuan East
Real Estate Properties [Line Items]
Real estate property under development	[3]	562,550	587,993
Hanzhong City Beidajie
Real Estate Properties [Line Items]
Real estate property under development	[4]	75,328	78,735
Yang County East 2nd Ring Road
Real Estate Properties [Line Items]
Real estate property under development	[5]	$ 2,427,043	$ 2,461,303
[1]	The Company recognized $5,789,026 and $8,709,207 of development cost in cost of real estate sales under the percentage of completion method for the three and nine months ended June 30, 2016 (2015 - $1,940,411 and $8,559,833). The Company was in the process of finalizing landscaping and underground structure and expected to complete the construction before September 30, 2016.
[2]	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. Due to the extension, the Company expected the road construction to be completed in late 2016. 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 June 30, 2016, the actual costs incurred by the Company were $103,047,597 (September 30, 2015- $85,069,755) 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. For the three and nine months ended June 30, 2016 and 2015, the Company did not receive government’s subsidies for its Shanty Area Reform Project surrounding Liang Zhou Road located in Hantai District, Hanzhong City, respectively. As of June 30, 2016, the Company borrowed $64,322,132 loan from Hanzhong Urban Construction Investment Development Co., Ltd to develop Liangzhou road and related project.
[3]	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 year ended September 30, 2014. As of June 30, 2016, the Company still waited for the local government to finalize the budget for the project.
[4]	For the three and nine months ended June 30, 2016, the Company received government’s subsidies in the amount of $Nil and $3,160,604 for its Shanty Area Reform Project surrounding Beidajie Project located in Hantai District, Hanzhong City, respectively. For the three and nine months ended June 30, 2015, the Company did not receive related government subsidies. Since the Company has not met the performance requirement, the Company included the subsidies received in the liability.
[5]	The Company was engaged by the Yang County local government to construct the East 2nd Ring Road with a total length of 2.15 kilometers and a budgeted price of approximately $25.3 million (or RMB168 million), which was approved by the local Yang County government in March 2014. 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 China construction bank (June 30, 2016 -5% and September 30, 2015 – 5%). The local government has approved a refund to the Company by reducing local surcharges or taxes otherwise required in the real estate development. The load construction is expected to be completed by late 2016 or early 2017.

REAL ESTATE PROPERTY DEVELOPM27

REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT (Narrative) (Details) ¥ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2016CNY (¥)	Jun. 30, 2015USD ($)	Sep. 30, 2015USD ($)
Real Estate Properties [Line Items]
Land use right included in real estate property under development	$ 37,035,962		$ 37,035,962			$ 39,929,072
Agreement With Hanzhong Urban Construction Investment Development Co Ltd [Member]
Real Estate Properties [Line Items]
Long-term Line of Credit	64,322,132		64,322,132
Hanzhong City Oriental Pearl Garden
Real Estate Properties [Line Items]
Construction and Development Costs, Total	5,789,026	$ 1,940,411	8,709,207		$ 8,559,833
Hanzhong City Liangzhou Road and related projects
Real Estate Properties [Line Items]
Budgeted Price For Municipal Roads			33,000,000
Actual Construction And Development Costs Incurred	$ 103,047,597		103,047,597			$ 85,069,755
Yang County East 2nd Ring Road
Real Estate Properties [Line Items]
Budgeted Price For Municipal Roads			$ 25,300,000	¥ 168
Debt Instrument, Interest Rate, Stated Percentage	5.00%		5.00%			5.00%
Hanzhong City Beidajie
Real Estate Properties [Line Items]
Revenue from Grants	$ 0		$ 3,160,604

BANK LOAN (Narrative) (Details)

BANK LOAN (Narrative) (Details) - Loan Agreement [Member] - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Share Based Compensation Arrangement By Share Based Payment Award Options Weighted Average Remaining Contractual Term [Abstract]
Debt instrument, weighted average interest rate	5.50%		5.50%		5.50%
Debt instrument, capitalized interest expense	$ 0	$ 216,515	$ 131,952	$ 822,843

OTHER LOANS (Other Loans-Long T

OTHER LOANS (Other Loans-Long Term Portion) (Details) - USD ($)		Jun. 30, 2016	Sep. 30, 2015
Other loan		$ 76,362,527	$ 21,405,425
Less: current maturities of other loans		6,149,632	5,674,239
Other loans-long term portion		70,212,895	15,731,186
Loan A
Other loan	[1]	0	954,883
Loan B
Other loan	[2]	0	4,719,356
Loan C
Other loan	[3]	64,322,132	15,731,186
Loan D
Other loan	[4]	$ 12,040,395	$ 0
[1]	A working capital finance agreement with a local investment company in Hanzhong was fully repaid in fiscal 2016. The loan carried a fixed interest of 10% per year. For the three and nine months ended June 30, 2016, total interest was $Nil and $23,526 (2015 - $245,227 and $961,501) respectively, which was capitalized in to the development cost of Liangzhou road project.
[2]	A line of credit with a financial institution was fully repaid in fiscal 2016. The line of credit carried a fixed interest of 20% per year. For the three and nine months ended June 30, 2016, the interest was $Nil and $107,900 (2015 - $82,418 and $532,898), respectively, which was capitalized in to the development cost of Oriental Pearl Garden real estate project.
[3]	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 $116,641,336 (RMB 775,000,000) for a long term loan at 4.245% interest to develop Liang Zhou Road Project. As of June 30, 2016, the Company borrowed $64,322,132 under this credit line. The loan is guaranteed by Hanzhong City Hantai District Municipal Government and pledged by the Company’s Yang County Palace project with carrying value of $69,154,951 as of June 30, 2016. For the three and nine months ended June 30, 2016, total interest was $652,422 and $1,305,307 (2015- $Nil) respectively, which was capitalized in to the development cost of Liangzhou road project.
[4]	On January 8, 2016, the Company signed a loan agreement with Hanzhong Municipal Housing Provident Fund Management Center (“Housing Fund”) to borrow up to approximately $12,040,395 (RMB 80,000,000) on development of Oriental Garden related projects. The loan carries interest at is 3.575% and is due in January 2019. Our major shareholder Mr. Xiaojun Zhu and his wife Ms. Jianhong Liu pledged their personal assets as collateral for the loan. As of June 30, 2016, the Company received all the proceeds from Housing Fund. The progress repayment is required based on certain sales milestones or a fixed repayment schedule starting in July 2018. The Housing Fund has rights to monitor the project’s future cash flow. For the three and nine months ended June 30, 2016, total interest was $112,429 and $180,013 (2015- $Nil) respectively, which was capitalized in to the development cost of Oriental Garden project. The full amount of loan has following repayment schedule:

OTHER LOANS (Schedule Of Repaym

OTHER LOANS (Schedule Of Repayment Loan) (Details) - 9 months ended Jun. 30, 2016	USD ($)	CNY (¥)
Debt Instrument Scheduled Repayment Amount	$ 116,641,336	¥ 775,000,000
May 29, 2017
Debt Instrument Scheduled Repayment Amount	6,149,632	40,860,000
November 20, 2017
Debt Instrument Scheduled Repayment Amount	6,149,632	40,860,000
April 20, 2018
Debt Instrument Scheduled Repayment Amount	13,167,678	87,490,000
May 20, 2018
Debt Instrument Scheduled Repayment Amount	6,256,491	41,570,000
November 20, 2018
Debt Instrument Scheduled Repayment Amount	6,256,491	41,570,000
April 20, 2019
Debt Instrument Scheduled Repayment Amount	13,167,678	87,490,000
May 20, 2019
Debt Instrument Scheduled Repayment Amount	6,406,996	42,570,000
October 20, 2019
Debt Instrument Scheduled Repayment Amount	13,167,678	87,490,000
November 29, 2019
Debt Instrument Scheduled Repayment Amount	6,406,996	42,570,000
Apri 20, 2020
Debt Instrument Scheduled Repayment Amount	13,172,193	87,520,000
October 20, 2020
Debt Instrument Scheduled Repayment Amount	13,167,678	87,490,000
October 20, 2021
Debt Instrument Scheduled Repayment Amount	$ 13,172,193	¥ 87,520,000

OTHER LOANS (Schedule Of Full R

OTHER LOANS (Schedule Of Full Repayment Loan) (Details) - 9 months ended Jun. 30, 2016 - Other Short Term Loan 4 [Member]	USD ($)	CNY (¥)
Debt Instrument, Periodic Payment, Total	$ 12,040,395	¥ 80,000,000
Earlier Of July 2018 Or 60 Sales Completed [Member]
Debt Instrument, Periodic Payment, Total	3,101,099	20,000,000
Earlier Of October 2018 Or 70 Sales Completed [Member]
Debt Instrument, Periodic Payment, Total	4,515,148	30,000,000
Earlier Of January 2019 Or 75 Sales Completed [Member]
Debt Instrument, Periodic Payment, Total	$ 4,515,148	¥ 30,000,000

OTHER LOANS (Narrative) (Detail

OTHER LOANS (Narrative) (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2016CNY (¥)	Jan. 08, 2016USD ($)	Jan. 08, 2016CNY (¥)
Finance Agreement [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%			10.00%
Interest Costs Capitalized	$ 0	$ 245,227	$ 23,526	$ 961,501
Credit Agreement [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	20.00%		20.00%			20.00%
Interest Costs Capitalized	$ 0	$ 82,418	$ 107,900	$ 532,898
Agreement Wth Hanzhong Urban Construction Investment Development Co Ltd [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.245%		4.245%			4.245%
Long-term Line of Credit	$ 64,322,132		$ 64,322,132
Line of Credit Facility, Maximum Borrowing Capacity	116,641,336		116,641,336			¥ 775,000,000
Long-term Debt, Gross	69,154,951		69,154,951
Debt Instrument, Periodic Payment, Interest	652,422		1,305,307		$ 0
Agreement With Hanzhong Municipal Housing Provident Fund Management Center [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage							3.575%	3.575%
Line of Credit Facility, Maximum Borrowing Capacity							$ 12,040,395	¥ 80,000,000
Debt Instrument, Periodic Payment, Interest	$ 112,429		$ 180,013		$ 0

CUSTOMER DEPOSITS (Customer Dep

CUSTOMER DEPOSITS (Customer Deposits From Pre-Sale Of Residential Units) (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Customer deposits by real estate projects
Total	$ 29,658,059	$ 25,633,973
Less Customer deposits -short-term	19,508,249	17,387,969
Customer deposits - long-term	10,149,810	8,246,004
Mingzhu Garden (Mingzhu Nanyuan & Mingzhu Beiyuan) Phase I and II
Customer deposits by real estate projects
Total	10,182,279	7,832,619
Hanzhong City Oriental Pearl Garden
Customer deposits by real estate projects
Total	5,746,658	7,220,575
Liangzhou road and related projects
Customer deposits by real estate projects
Total	2,746,715	2,035,615
Yang County Palace
Customer deposits by real estate projects
Total	3,579,312	6,210,389
Yangzhou Pearl Garden Phase I and II
Customer deposits by real estate projects
Total	$ 7,403,095	$ 2,334,775

CUSTOMER DEPOSITS (Narrative) (

CUSTOMER DEPOSITS (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2016	Sep. 30, 2015
Deposit Liabilities [Line Items]
Mortgage loan guarantee amount	$ 1.5	$ 1.7
Minimum
Deposit Liabilities [Line Items]
Percentage of customer deposit of unit price for cash purchase	10.00%
Percentage of down payments to total purchase price of property to receive mortgage loan guarantees	20.00%
Maximum
Deposit Liabilities [Line Items]
Percentage of customer deposit of unit price for cash purchase	20.00%
Percentage of down payments to total purchase price of property to receive mortgage loan guarantees	50.00%

RELATED PARTY LOANS (Schedule o

RELATED PARTY LOANS (Schedule of Other Short-term Loans) (Details)		Jun. 30, 2016USD ($)	Jun. 30, 2016CNY (¥)	Sep. 30, 2015USD ($)	Sep. 30, 2015CNY (¥)
Shareholder Loans [Line Items]
Shareholder loan		$ 1,810,000		$ 1,810,000
Shareholder USD Loan Agreement
Shareholder Loans [Line Items]
Shareholder loan	[1]	$ 1,810,000		$ 1,810,000
Shareholder RMB Loan Agreement
Shareholder Loans [Line Items]
Shareholder loan | ¥	[2]		¥ 0		¥ 0
[1]	The Company has a one year loan agreement (“USD Loan Agreement”) with Mr. Xiaojun Zhu, the Chairman, CEO and major shareholder, pursuant to which the Company borrowed $1,810,000 to make a capital injection into Shaanxi HGS, the Company’s subsidiary. The loan was renewed on July 31, 2016 with the same term. The Company recorded interest of $18,100 and $54,300 for the three and nine months ended June 30, 2016 (2015 -$18,100 and $54,300). The Company has not yet paid this interest and it is recorded in accrued expenses in the accompanying condensed consolidated balance sheets as of June 30, 2016 and September 30, 2015.
[2]	On December 31, 2013, Shaanxi Guangsha Investment and Development Group Co., Ltd. (the “Guangsha”), the Company's PRC operating subsidiary, entered into a loan agreement with the Chairman (the “Shareholder RMB Loan Agreement”), pursuant to which Guangsha is able to borrow from Mr. Zhu in order to support the Company’s Liang Shan Road construction project development and the Company’s working capital needs. The Loan Agreement has a one-year term, and has been renewed with a new expiration date of June 30, 2017, with at an interest rate of 5.5% as of June 30, 2016 and September 30, 2015. The Company repaid full loan balance as of June 30, 2016 and September 30, 2015, respectively. The Company recorded interest of $Nil and $22,510 for the three and nine months ended June 30, 2016 (2015 - $87,726 and $282,957), respectively, which is capitalized in the development cost of Liangzhou road project.

RELATED PARTY LOANS (Narrative)

RELATED PARTY LOANS (Narrative) (Details) - USD ($)		3 Months Ended		9 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Shareholder Loans [Line Items]
Interest (expense)		$ 29,917	$ 22,540	$ 203,057	$ 54,300
Shareholder loan		1,810,000		1,810,000		$ 1,810,000
Shareholder USD Loan Agreement
Shareholder Loans [Line Items]
Interest (expense)		18,100	18,100	54,300	54,300
Shareholder loan	[1]	$ 1,810,000		1,810,000		$ 1,810,000
Shareholder's RMB Loan Agreement
Shareholder Loans [Line Items]
Interest (expense)			$ 87,726	$ 22,510	$ 282,957
Debt instrument, stated interest rate		5.50%		5.50%		5.50%
[1]	The Company has a one year loan agreement (“USD Loan Agreement”) with Mr. Xiaojun Zhu, the Chairman, CEO and major shareholder, pursuant to which the Company borrowed $1,810,000 to make a capital injection into Shaanxi HGS, the Company’s subsidiary. The loan was renewed on July 31, 2016 with the same term. The Company recorded interest of $18,100 and $54,300 for the three and nine months ended June 30, 2016 (2015 -$18,100 and $54,300). The Company has not yet paid this interest and it is recorded in accrued expenses in the accompanying condensed consolidated balance sheets as of June 30, 2016 and September 30, 2015.

STOCK OPTIONS (Assumptions Used

STOCK OPTIONS (Assumptions Used In Calculating Fair Value Of Options Granted) (Details)	1 Months Ended
	Aug. 31, 2015USD ($)
Risk-free interest rate	0.95%
Expected life of the options	3 years
Expected volatility	143.00%
Expected dividend yield	0.00%
Fair value	$ 178,800

STOCK OPTIONS (Stock Option Act

STOCK OPTIONS (Stock Option Activities) (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2016	Sep. 30, 2015
Number of Options
Outstanding, September 30, 2015	130,000
Granted	0
Forfeited	(10,000)
Exercised	0
Outstanding, June 30, 2016	120,000	130,000
Exercisable, June 30, 2016	33,333
Weighted Average Exercise Price
Outstanding, September 30, 2015	$ 1.93
Granted	0
Forfeited	1.31
Exercised	0
Outstanding, June 30, 2016	1.89	$ 1.93
Exercisable, June 30, 2016	$ 1.89
Weighted Average Remaining Life in Years
Outstanding, September 30, 2015	2 years 1 month 20 days	2 years 8 months 16 days
Exercisable, June 30, 2016	2 years 1 month 20 days
Aggregate intrinsic value
Outstanding, June 30, 2016	$ 0
Exercisable, June 30, 2016	$ 0

STOCK OPTIONS (Narrative) (Deta

STOCK OPTIONS (Narrative) (Details) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended		12 Months Ended
	Aug. 31, 2015	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercise price			$ 0
Stock Based Compensation		$ 14,900	$ 44,700	$ 0
Stock Option Plan 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted	120,000
Options exercise price	$ 1.89
Stock option vesting, percentage			27.80%		2.80%

TAXES (Components of Income Tax

TAXES (Components of Income Tax Expenses) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Taxes [Line Items]
Current tax provision	$ 81,316	$ 5,778	$ 228,996	$ 71,946
Deferred tax provision	229,232	635,590	383,850	1,369,997
Income tax provision	$ 310,548	$ 641,368	$ 612,846	$ 1,441,943

TAXES (Components Of Deferred T

TAXES (Components Of Deferred Taxes) (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Deferred tax assets
Deferred tax assets from net operating loss carry-forwards for U.S. parent company	$ 170,054	$ 136,394
Valuation allowance	(170,054)	(136,394)
Deferred tax asset-net	0	0
Deferred tax liability
Revenue recognized based on percentage of completion	4,882,100	4,711,161
Deferred tax liability- long term	$ 4,882,100	$ 4,711,161

TAXES (Taxes Payable) (Details)

TAXES (Taxes Payable) (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Income Taxes [Line Items]
CIT	$ 622,826	$ 794,780
Business tax	13,194,895	13,306,414
Other tax and fees	1,631,058	1,729,692
Total taxes payable	$ 15,448,779	$ 15,830,886

TAXES (Narrative) (Details)

TAXES (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Income Taxes [Line Items]
Business sales tax, rate			5.00%
Business sales tax	$ 13,194,895		$ 13,194,895		$ 13,306,414
Income tax at statutory tax rate			25.00%
Net operating loss carry forwards	500,160		$ 500,160		401,000
Net operating loss carry forwards, expiration year			2,035
Provision for income taxes	310,548	$ 641,368	$ 612,846	$ 1,441,943
Land appreciation tax payable	954,159		954,159		$ 752,664
Valuation allowance, period additions	$ 11,220	$ 6,154	$ 33,660	$ 18,462
Effective Value Added Tax Rate Percentage	5.00%		5.00%
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]
Local income tax rate			2.50%
Land appreciation tax rate			1.00%
Yang Country
Income Taxes [Line Items]
Local income tax rate			1.25%
Land appreciation tax rate			0.50%

COMMITMENTS AND CONTINGENCY (Na

COMMITMENTS AND CONTINGENCY (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2016	Sep. 30, 2015
Commitments And Contingencies [Line Items]
Security deposit provided for guarantee	$ 1.5	$ 1.7
Minimum
Commitments And Contingencies [Line Items]
Percentage Of Mortgage Proceeds As Security	5.00%
Maximum
Commitments And Contingencies [Line Items]
Percentage Of Mortgage Proceeds As Security	10.00%