Green Giant (GGEI) 10-Q 12 May 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2017	May 09, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
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 ($)	Mar. 31, 2017	Sep. 30, 2016
Current assets:
Cash	$ 2,290,389	$ 6,401,237
Restricted cash	1,100,447	1,493,537
Cost and earnings in excess of billings	12,340,490	11,891,230
Real estate property development completed	94,437,309	113,185,929
Real estate property under development	94,376,792	0
Other current assets	2,008,185	2,722,036
Total current assets	206,553,612	135,693,969
Property, plant and equipment, net	737,396	792,650
Real estate property development completed, net of current portion	1,605,777	1,657,055
Security deposits for land use right	7,694,430	7,940,137
Real estate property under development, net of current portion	153,223,559	207,384,015
Due from local government for real estate property development completed	2,830,600	2,920,990
Total Assets	372,645,374	356,388,816
Current liabilities:
Other loans	11,872,385	6,125,753
Accounts payable	24,604,226	30,574,497
Other payables	5,057,405	5,200,807
Construction deposits	1,437,652	1,911,158
Billings in excess of cost and earnings	2,078,686	2,110,808
Customer deposits	16,662,127	16,790,208
Shareholder loan	3,175,644	2,709,523
Accrued expenses	2,873,536	3,205,099
Taxes payable	15,912,799	15,843,815
Total current liabilities	83,674,460	84,471,668
Deferred tax liabilities	4,949,824	5,107,887
Customer deposits, net of current portion	13,856,184	10,687,272
Other loans, less current portion	117,192,568	99,843,228
Construction deposits, net of current portion	1,276,989	1,329,820
Total liabilities	220,950,025	201,439,875
Commitments and Contingencies
Stockholders' equity
Common stock, $0.001 par value, 100,000,000 shares authorized, 45,050,000 shares issued and outstanding March 31, 2017 and September 30, 2016	45,050	45,050
Additional paid-in capital	129,823,372	129,793,572
Statutory surplus	8,495,631	8,495,631
Retained earnings	22,246,398	20,661,184
Accumulated other comprehensive income	(8,915,102)	(4,046,496)
Total stockholders' equity	151,695,349	154,948,941
Total Liabilities and Stockholders' Equity	$ 372,645,374	$ 356,388,816

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Sep. 30, 2016
Common stock, par value	$ 0.001	$ 0.001
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		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Real estate sales	$ 11,113,794	$ 6,851,859	$ 20,011,648	$ 12,708,466
Less: Sales tax	(353,436)	(481,325)	(466,038)	(893,313)
Cost of real estate sales	(8,254,621)	(4,128,020)	(15,315,656)	(7,336,909)
Gross profit	2,505,737	2,242,514	4,229,954	4,478,244
Operating expenses
Selling and distribution expenses	131,851	126,026	278,085	216,179
General and administrative expenses	1,150,833	580,851	1,623,563	1,059,362
Total operating expenses	1,282,684	706,877	1,901,648	1,275,541
Operating income	1,223,053	1,535,637	2,328,306	3,202,703
Interest expense	(123,447)	(69,094)	(244,570)	(173,140)
Income before income taxes	1,099,606	1,466,543	2,083,736	3,029,563
Provision for income taxes	276,524	166,502	498,522	302,298
Net income	823,082	1,300,041	1,585,214	2,727,265
Other comprehensive income (loss)
Foreign currency translation adjustment	1,357,385	1,054,539	(4,868,606)	(2,284,578)
Comprehensive income (loss)	$ 2,180,467	$ 2,354,580	$ (3,283,392)	$ 442,687
Basic and diluted income per common share
Basic and diluted	$ 0.02	$ 0.03	$ 0.04	$ 0.06
Weighted average common shares outstanding
Basic and diluted	45,050,000	45,050,000	45,050,000	45,050,000

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net income	$ 1,585,214	$ 2,727,265
Adjustments to reconcile net income to net cash used in operating activities:
Deferred tax provision	0	154,618
Stock based compensation	29,800	29,800
Depreciation	30,837	39,909
Changes in assets and liabilities:
Advances to vendors	0	(22,979)
Cost and earnings in excess of billings	(820,187)	876,158
Real estate property development completed	15,301,222	4,416,727
Real estate property under development	(46,802,444)	(21,468,295)
Other current assets	631,894	(2,336,254)
Accounts payables	(5,042,313)	(13,409,544)
Other payables	17,601	714,978
Billings in excess of cost and earnings	33,317	(972,219)
Customer deposits	3,905,190	6,092,375
Construction deposits	(427,586)	(465,792)
Accrued expenses	(245,158)	(437,604)
Taxes payable	561,290	442,578
Net cash used in operating activities	(31,241,323)	(23,618,279)
Cash flow from financing activities
Restricted cash	348,127	(64,102)
Proceeds from shareholder loan	495,742	842,975
Repayment of shareholder loan	0	(357,298)
Repayment of bank loans	0	(4,640,228)
Proceeds from other loans	26,470,545	33,746,140
Repayment of other loans	0	(5,579,101)
Net cash provided by financing activities	27,314,414	23,948,386
Effect of changes of foreign exchange rate on cash	(183,939)	(18,343)
Net increase (decrease) in cash	(4,110,848)	311,764
Cash, beginning of period	6,401,237	1,333,919
Cash, end of period	2,290,389	1,645,683
Supplemental disclosures of cash flow information:
Interest paid	2,781,494	961,149
Income taxes paid	$ 355,975	$ 162,762

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Mar. 31, 2017
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 and the requirement of Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended March 31, 2017 and 2016 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 consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016 filed with the SEC on December 21, 2016.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Mar. 31, 2017
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 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, advances to vendors, security deposits for land use rights, other current assets, accounts payable, short-term loans, other payables, customer deposits, accrued expenses and taxes payable approximate their fair value based on the short-term maturity of these instruments. The fair value of the long-term customer, construction, security deposits, due from the local government and the long-term loan payable approximate their carrying amounts because the deposits are received in cash. 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 by the percentage of completion method on the sale of individual units when all the following criteria are met: a. Construction is beyond a preliminary stage. b. The buyer is committed to the extent of being unable to require a refund except for non-delivery of the unit or interest. c. Sufficient units have already been sold to assure that the entire property will not revert to rental property. d. 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. 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 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 30 50 For municipal road construction projects, fees are generally recognized by the full accrual method at the time of 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. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income in stockholders’ equity. For six months ended March 31, September 30, 2017 2016 2016 Period end RMB: USD exchange rate 6.8832 6.4494 6.6702 Six months average RMB: USD exchange rate 6.8584 6.4652 6.5326 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 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. 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 six months ended March 31, 2017 and 2016, the Company did not recognize any impairment for real estate property under development and completed. 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 six months ended March 31, 2017, the total interest capitalized in the real estate property development was $ 1,320,670 2,602,545 442,788 874,936 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 six months ended March 31, 2017 and 2016. 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 March 31, 2017 and September 30, 2016. 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 six months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, Chinese entities’ income tax returns filed in China for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 are subject to examination by the Chinese taxing authorities. As of March 31, 2017, the tax year ended September 30, 2008 through March 31, 2017 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 year ended September 30, 2012 through September 30, 2016 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 Mingzhou Garden, Nandajie, Central Plaza and Oriental Pearl Garden 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 (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 six months ended March 31, 2017 and 2016 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 six months ended March 31, 2017, the Company recorded advertising expenses of $ 31,478 105,769 22,949 43,416 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 March 31, 2017, one supplier accounted for over 38 43 16 14 55 12 In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU No. 2015-14, “Deferral of the Effective Date” (“ASU 2015-14”), which defers the effective date for ASU 2014-09 by one year. For public entities, the guidance in ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods), which means it will be effective for the Company’s fiscal year beginning October 1, 2018. In March 2016, the FASB issued ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue versus Net)” (“ASU 2016-08”), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard. In April 2016, the FASB issued ASU No. 2016-10, “Identifying Performance Obligations and Licensing” (“ASU 2016-10”), which reduces the complexity when applying the guidance for identifying performance obligations and improves the operability and understandability of the license implementation guidance. In May 2016, the FASB issued ASU No. 2016-12 “Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), which amends the guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes. In December 2016, the FASB further issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” (“ASU 2016-20”), which makes minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments are intended to address implementation and provide additional practical expedients to reduce the cost and complexity of applying the new revenue standard. These amendments have the same effective date as the new revenue standard. Preliminarily, we plan to adopt Topic 606 in the first quarter of our fiscal 2019 using the retrospective transition method, and are continuing to evaluate the impact our pending adoption of Topic 606 will have on our unaudited condensed consolidated financial statements. The Company’s current revenue recognition policies are generally consistent with the new revenue recognition standards set forth in ASU 2014-09. Potential adjustments to input measures are not expected to be pervasive to the majority of the Company’s contracts. While no significant impact is expected upon adoption of the new guidance, the Company will not be able to make that determination until the time of adoption based upon outstanding contracts at that time. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business". The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Basically these amendments provide a screen to determine when a set is not a business. If the screen is not met, the amendments in this ASU first, require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and second, remove the evaluation of whether a market participant could replace missing elements. These amendments take effect for public businesses for fiscal years beginning after December 15, 2017 and interim periods within those period. The Company does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements.

REAL ESTATE PROPERTY DEVELOPMEN

REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT	6 Months Ended
	Mar. 31, 2017
Real Estate [Abstract]
REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT	NOTE 3. REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT Balance as of March 31, September 30, 2017 2016 Development completed: Hanzhong City Mingzhu Garden Phase I $ 922,604 $ 952,066 Hanzhong City Mingzhu Garden Phase II 46,805,702 54,933,680 Hanzhong City Nan Dajie (Mingzhu Xinju) 1,329,188 1,371,633 Hanzhong City Oriental Pearl Garden (a) 40,408,165 50,643,258 Yang County Yangzhou Pearl Garden Phase I 2,322,263 2,396,420 Yang County Yangzhou Pearl Garden Phase II 4,255,164 4,545,927 Real estate property development completed 96,043,086 114,842,984 Less: Real estate property completed – short-term 94,437,309 113,185,929 Real estate property completed – long-term $ 1,605,777 $ 1,657,055 Under development: Yang County Yangzhou Palace $ 91,370,390 $ 76,618,856 Hanzhong City Shijin Project 7,037,095 7,261,811 Hanzhong City Liangzhou Road and related projects (b) 122,122,212 117,226,429 Hanzhong City Hanfeng Beiyuan East (c) 689,746 657,706 Hanzhong City Beidajie (e) 24,064,253 3,228,580 Yang County East 2 nd 2,316,655 2,390,633 Real estate property under development 247,600,351 207,384,015 Less: Short-term portion 94,376,792 - Real estate property under development –long-term $ 153,223,559 $ 207,384,015 (a) The Company recognized $Nil of development cost in cost of real estate sales under the percentage of completion method for the three and six months ended March 31, 2017 (2016 - $ 1,970,130 2,920,181 (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 The Company’s development cost incurred on Liangzhou Road Project is treated as the Company’s deposit on purchasing the related land use rights, as agreed by the local government. As of March 31, 2017, the actual costs incurred by the Company were $ 122,122,212 117,226,429 (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 March 31, 2017, the local government was still in the process of assessing the budget for these projects. (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 km and a budgeted price of approximately $ 24.4 168 4.75 4.75 (e) For the three and six months ended March 31, 2017, the Company has not received government’s subsidies related to its Shanty Area Reform Project surrounding Beidajie Project located in Hantai District, Hanzhong City. For the three and six months ended March 31, 2016, the Company received government’s subsidies in the amount of $Nil and $ 3,256,029 As of March 31, 2017 and September 30, 2016, land use rights included in real estate property under development totaled $ 18,962,916 19,568,460

OTHER LOANS

OTHER LOANS	6 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
OTHER LOANS	NOTE 4. OTHER LOANS March 31, 2017 September 30, 2016 Loan A (i) $ 100,153,982 $ 93,975,338 Loan B (ii) 11,622,501 11,993,643 Loan C (iii) 17,288,470 - 129,064,953 105,968,981 Less: current maturities of other loans 11,872,385 6,125,753 Other loans – long-term portion $ 117,192,568 $ 99,843,228 (i) 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 $ 112,592,978 775,000,000 4.245 100,153,982 93,975,338 91,370,390 76,618,856 5,288,950 4,941,726 1,175,312 359,405 2,313,186 652,885 Repayment in USD Repayment in RMB 29-May-2017 5,936,192 40,860,000 20-November-2017 5,936,192 40,860,000 20-April -2018 12,710,658 87,490,000 20-May-2018 6,039,342 41,570,000 20-November-2018 6,039,342 41,570,000 20-April-2019 12,710,658 87,490,000 20-May-2019 6,184,623 42,570,000 20-October-2019 12,710,658 87,490,000 29-November-2019 6,184,623 42,570,000 20-April-2020 12,715,016 87,520,000 20-October-2020 12,710,658 87,490,000 20-October-2021 12,715,016 87,520,000 Total 112,592,978 775,000,000 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 $ 11,622,501 80,000,000 3.575 103,880 67,584 209,662 67,584 Repayment in USD Repayment in RMB Earlier of July 2018 or 60% sales completed 2,905,625 20,000,000 Earlier of October 2018 or 70% sales completed 4,358,438 30,000,000 Earlier of January 2019 or 75% sales completed 4,358,438 30,000,000 Total 11,622,501 80,000,000 In December 2016, the Company signed a loan agreement with Hantai District Urban Construction Investment Development Co., Ltd, a state owned Company, to borrow up to $ 17,288,470 119,000,000 1.2 122,122,212 128,143 258,646

CUSTOMER DEPOSITS

CUSTOMER DEPOSITS	6 Months Ended
	Mar. 31, 2017
Banking and Thrift [Abstract]
CUSTOMER DEPOSITS	NOTE 5. CUSTOMER DEPOSITS March 31, September 30, 2017 2016 Customer deposits by real estate projects Mingzhu Garden (Mingzhu Nanyuan and Mingzhu Beiyuan) $ 9,617,704 $ 9,150,119 Oriental Pearl Garden 5,076,396 5,582,158 Liangzhou road and related projects 2,556,950 2,593,625 Yang County Pearl Garden 1,968,027 2,057,931 Yang County Palace 11,299,234 8,093,647 Total 30,518,311 27,477,480 Less: Customer deposits - short-term 16,662,127 16,790,208 Customer deposits - long-term $ 13,856,184 $ 10,687,272 Customer deposits are typically 10 20 30 50 1.1 1.5

RELATED PARTY LOANS

RELATED PARTY LOANS	6 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
RELATED PARTY LOANS	NOTE 6. RELATED PARTY LOANS As of March 31, September 30, 2017 2016 Shareholder loan – USD loan (a) $ 1,810,000 $ 1,810,000 Shareholder loan – RMB loan (b) 1,365,644 899,523 Total $ 3,175,644 $ 2,709,523 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 4 18,100 36,200 18,100 36,200 b. On December 31, 2013, Shaanxi Guangsha Investment and Development Group Co., Ltd. (the “Guangsha”) 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 upon maturity, with at an interest rate of 4.35 1,365,644 899,523 17,214 30,712 10,070 22,588

STOCK OPTIONS

STOCK OPTIONS	6 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTIONS	NOTE 7. 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 52.8 36.1 Options The assumptions used in calculating the fair granted in value of options granted using the Black-Scholes August option pricing model are as follows: 2015 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: Weighted Weighted Average Average Remaining Number of Exercise Life in Grant Date options Price Years Fair Value Outstanding, September 30, 2016 120,000 $ 1.89 1.89 $ 178,800 Granted - - - - Forfeited - - - - Exercised - - - - Outstanding, March 31, 2017 120,000 $ 1.89 1.39 $ 178,800 Exercisable, March 31, 2017 63,333 $ 1.89 1.39 $ 94,367 The Company recorded $ 14,900 29,800 14,900 29,800

TAXES

TAXES	6 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
TAXES	NOTE 8. TAXES (A) Business sales tax The Company is subject to a 5 13,373,642 13,453,236 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 1.25 276,524 498,522 166,502 302,298 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 Six months ended March 31, March 31, 2017 2016 2017 2016 Current tax provision $ 276,524 $ 78,188 $ 498,522 $ 147,680 Deferred tax provision - 88,314 - 154,618 Income tax provision $ 276,524 $ 166,502 $ 498,522 $ 302,298 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 $ 599,160 533,160 2035 March 31, September 30, 2017 2016 Deferred tax assets: Deferred tax asset from net operating loss carry-forwards for parent company $ 203,714 $ 181,274 Valuation allowance (203,714) (181,274) Deferred tax asset - net $ - $ - Deferred tax liability: Revenue recognized based on percentage of completion $ 4,949,824 $ 5,107,087 Deferred tax liability – long term $ 4,949,824 $ 5,107,087 Movement of valuation allowance: March 31, September 30, 2017 2016 Beginning Balance $ 181,274 $ 136,394 Current period additions 22,440 44,880 Ending Balance $ 203,714 $ 181,274 The valuation allowance increased $ 11,220 22,440 11,220 22,440 (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 1,237,002 1,049,401 (D) Taxes payable consisted of the following: March 31, September 30, 2017 2016 CIT $ 798,795 $ 677,734 Business tax 13,373,642 13,453,236 Other taxes and fees 1,740,362 1,712,845 Total taxes payable $ 15,912,799 $ 15,843,815

COMMITMENTS AND CONTINGENCY

COMMITMENTS AND CONTINGENCY	6 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9. COMMITMENTS AND CONTINGENCY From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company's management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would have a material adverse impact on the Company's consolidated financial position, results of operations and cash flows. As an industry practice, the Company provides guarantees to PRC banks with respect to loans procured by the purchasers of the Company’s real estate properties for the total mortgage loan amount until the completion of obtaining the “Certificate of Ownership” of the properties from the government, which generally takes six to twelve months. Because the banks provide loan proceeds without getting the “Certificate of Ownership” as loan collateral during this six to twelve months’ period, the mortgage banks require the Company to maintain, as restricted cash, 5 10 1.1 1.5

SUMMARY OF SIGNIFICANT ACCOUN15

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Mar. 31, 2017
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 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, advances to vendors, security deposits for land use rights, other current assets, accounts payable, short-term loans, other payables, customer deposits, accrued expenses and taxes payable approximate their fair value based on the short-term maturity of these instruments. The fair value of the long-term customer, construction, security deposits, due from the local government and the long-term loan payable approximate their carrying amounts because the deposits are received in cash.
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 by the percentage of completion method on the sale of individual units when all the following criteria are met: a. Construction is beyond a preliminary stage. b. The buyer is committed to the extent of being unable to require a refund except for non-delivery of the unit or interest. c. Sufficient units have already been sold to assure that the entire property will not revert to rental property. d. 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. 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 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 30 50 For municipal road construction projects, fees are generally recognized by the full accrual method at the time of 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. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income in stockholders’ equity. For six months ended March 31, September 30, 2017 2016 2016 Period end RMB: USD exchange rate 6.8832 6.4494 6.6702 Six months average RMB: USD exchange rate 6.8584 6.4652 6.5326 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 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 six months ended March 31, 2017 and 2016, 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 six months ended March 31, 2017, the total interest capitalized in the real estate property development was $ 1,320,670 2,602,545 442,788 874,936
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 six months ended March 31, 2017 and 2016.
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.
Share-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 March 31, 2017 and September 30, 2016. 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 six months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, Chinese entities’ income tax returns filed in China for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 are subject to examination by the Chinese taxing authorities. As of March 31, 2017, the tax year ended September 30, 2008 through March 31, 2017 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 year ended September 30, 2012 through September 30, 2016 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 Mingzhou Garden, Nandajie, Central Plaza and Oriental Pearl Garden 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 (loss)	Comprehensive income (loss) 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 six months ended March 31, 2017 and 2016 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 six months ended March 31, 2017, the Company recorded advertising expenses of $ 31,478 105,769 22,949 43,416
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 March 31, 2017, one supplier accounted for over 38 43 16 14 55 12
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU No. 2015-14, “Deferral of the Effective Date” (“ASU 2015-14”), which defers the effective date for ASU 2014-09 by one year. For public entities, the guidance in ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods), which means it will be effective for the Company’s fiscal year beginning October 1, 2018. In March 2016, the FASB issued ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue versus Net)” (“ASU 2016-08”), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard. In April 2016, the FASB issued ASU No. 2016-10, “Identifying Performance Obligations and Licensing” (“ASU 2016-10”), which reduces the complexity when applying the guidance for identifying performance obligations and improves the operability and understandability of the license implementation guidance. In May 2016, the FASB issued ASU No. 2016-12 “Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), which amends the guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes. In December 2016, the FASB further issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” (“ASU 2016-20”), which makes minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments are intended to address implementation and provide additional practical expedients to reduce the cost and complexity of applying the new revenue standard. These amendments have the same effective date as the new revenue standard. Preliminarily, we plan to adopt Topic 606 in the first quarter of our fiscal 2019 using the retrospective transition method, and are continuing to evaluate the impact our pending adoption of Topic 606 will have on our unaudited condensed consolidated financial statements. The Company’s current revenue recognition policies are generally consistent with the new revenue recognition standards set forth in ASU 2014-09. Potential adjustments to input measures are not expected to be pervasive to the majority of the Company’s contracts. While no significant impact is expected upon adoption of the new guidance, the Company will not be able to make that determination until the time of adoption based upon outstanding contracts at that time. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business". The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Basically these amendments provide a screen to determine when a set is not a business. If the screen is not met, the amendments in this ASU first, require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and second, remove the evaluation of whether a market participant could replace missing elements. These amendments take effect for public businesses for fiscal years beginning after December 15, 2017 and interim periods within those period. The Company does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN16

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Currency Exchange Rate	For six months ended March 31, September 30, 2017 2016 2016 Period end RMB: USD exchange rate 6.8832 6.4494 6.6702 Six months average RMB: USD exchange rate 6.8584 6.4652 6.5326

REAL ESTATE PROPERTY DEVELOPM17

REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT (Tables)	6 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and September 30, 2016: Balance as of March 31, September 30, 2017 2016 Development completed: Hanzhong City Mingzhu Garden Phase I $ 922,604 $ 952,066 Hanzhong City Mingzhu Garden Phase II 46,805,702 54,933,680 Hanzhong City Nan Dajie (Mingzhu Xinju) 1,329,188 1,371,633 Hanzhong City Oriental Pearl Garden (a) 40,408,165 50,643,258 Yang County Yangzhou Pearl Garden Phase I 2,322,263 2,396,420 Yang County Yangzhou Pearl Garden Phase II 4,255,164 4,545,927 Real estate property development completed 96,043,086 114,842,984 Less: Real estate property completed – short-term 94,437,309 113,185,929 Real estate property completed – long-term $ 1,605,777 $ 1,657,055 Under development: Yang County Yangzhou Palace $ 91,370,390 $ 76,618,856 Hanzhong City Shijin Project 7,037,095 7,261,811 Hanzhong City Liangzhou Road and related projects (b) 122,122,212 117,226,429 Hanzhong City Hanfeng Beiyuan East (c) 689,746 657,706 Hanzhong City Beidajie (e) 24,064,253 3,228,580 Yang County East 2 nd 2,316,655 2,390,633 Real estate property under development 247,600,351 207,384,015 Less: Short-term portion 94,376,792 - Real estate property under development –long-term $ 153,223,559 $ 207,384,015 (a) The Company recognized $Nil of development cost in cost of real estate sales under the percentage of completion method for the three and six months ended March 31, 2017 (2016 - $ 1,970,130 2,920,181 (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 The Company’s development cost incurred on Liangzhou Road Project is treated as the Company’s deposit on purchasing the related land use rights, as agreed by the local government. As of March 31, 2017, the actual costs incurred by the Company were $ 122,122,212 117,226,429 (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 March 31, 2017, the local government was still in the process of assessing the budget for these projects. (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 km and a budgeted price of approximately $ 24.4 168 4.75 4.75 (e) For the three and six months ended March 31, 2017, the Company has not received government’s subsidies related to its Shanty Area Reform Project surrounding Beidajie Project located in Hantai District, Hanzhong City. For the three and six months ended March 31, 2016, the Company received government’s subsidies in the amount of $Nil and $ 3,256,029

OTHER LOANS (Tables)

OTHER LOANS (Tables) - OTHER LOANS [Member]	6 Months Ended
	Mar. 31, 2017
Schedule of Long-term Debt Instruments	March 31, 2017 September 30, 2016 Loan A (i) $ 100,153,982 $ 93,975,338 Loan B (ii) 11,622,501 11,993,643 Loan C (iii) 17,288,470 - 129,064,953 105,968,981 Less: current maturities of other loans 11,872,385 6,125,753 Other loans – long-term portion $ 117,192,568 $ 99,843,228 (i) 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 $ 112,592,978 775,000,000 4.245 100,153,982 93,975,338 91,370,390 76,618,856 5,288,950 4,941,726 1,175,312 359,405 2,313,186 652,885 (ii) 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 $ 11,622,501 80,000,000 3.575 103,880 67,584 209,662 67,584 (iii) In December 2016, the Company signed a loan agreement with Hantai District Urban Construction Investment Development Co., Ltd, a state owned Company, to borrow up to $ 17,288,470 119,000,000 1.2 122,122,212 128,143 258,646
Hanzhong Urban Construction Investment Development Co., Ltd [Member]
Schedule of Maturities of Long-term Debt	Repayment in USD Repayment in RMB 29-May-2017 5,936,192 40,860,000 20-November-2017 5,936,192 40,860,000 20-April -2018 12,710,658 87,490,000 20-May-2018 6,039,342 41,570,000 20-November-2018 6,039,342 41,570,000 20-April-2019 12,710,658 87,490,000 20-May-2019 6,184,623 42,570,000 20-October-2019 12,710,658 87,490,000 29-November-2019 6,184,623 42,570,000 20-April-2020 12,715,016 87,520,000 20-October-2020 12,710,658 87,490,000 20-October-2021 12,715,016 87,520,000 Total 112,592,978 775,000,000
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 2,905,625 20,000,000 Earlier of October 2018 or 70% sales completed 4,358,438 30,000,000 Earlier of January 2019 or 75% sales completed 4,358,438 30,000,000 Total 11,622,501 80,000,000

CUSTOMER DEPOSITS (Tables)

CUSTOMER DEPOSITS (Tables)	6 Months Ended
	Mar. 31, 2017
Banking and Thrift [Abstract]
Customer Deposits from Pre-Sale of Residential Units	March 31, September 30, 2017 2016 Customer deposits by real estate projects Mingzhu Garden (Mingzhu Nanyuan and Mingzhu Beiyuan) $ 9,617,704 $ 9,150,119 Oriental Pearl Garden 5,076,396 5,582,158 Liangzhou road and related projects 2,556,950 2,593,625 Yang County Pearl Garden 1,968,027 2,057,931 Yang County Palace 11,299,234 8,093,647 Total 30,518,311 27,477,480 Less: Customer deposits - short-term 16,662,127 16,790,208 Customer deposits - long-term $ 13,856,184 $ 10,687,272

RELATED PARTY LOANS (Tables)

RELATED PARTY LOANS (Tables)	6 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Schedule of Shareholder Loan	As of March 31, September 30, 2017 2016 Shareholder loan – USD loan (a) $ 1,810,000 $ 1,810,000 Shareholder loan – RMB loan (b) 1,365,644 899,523 Total $ 3,175,644 $ 2,709,523 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 4 18,100 36,200 18,100 36,200 b. On December 31, 2013, Shaanxi Guangsha Investment and Development Group Co., Ltd. (the “Guangsha”) 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 upon maturity, with at an interest rate of 4.35 1,365,644 899,523 17,214 30,712 10,070 22,588

STOCK OPTIONS (Tables)

STOCK OPTIONS (Tables)	6 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Assumptions used in Calculating Fair Value of Options Granted	Options The assumptions used in calculating the fair granted in value of options granted using the Black-Scholes August option pricing model are as follows: 2015 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	Weighted Weighted Average Average Remaining Number of Exercise Life in Grant Date options Price Years Fair Value Outstanding, September 30, 2016 120,000 $ 1.89 1.89 $ 178,800 Granted - - - - Forfeited - - - - Exercised - - - - Outstanding, March 31, 2017 120,000 $ 1.89 1.39 $ 178,800 Exercisable, March 31, 2017 63,333 $ 1.89 1.39 $ 94,367

TAXES (Tables)

TAXES (Tables)	6 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	Three months ended Six months ended March 31, March 31, 2017 2016 2017 2016 Current tax provision $ 276,524 $ 78,188 $ 498,522 $ 147,680 Deferred tax provision - 88,314 - 154,618 Income tax provision $ 276,524 $ 166,502 $ 498,522 $ 302,298
Components of Deferred Taxes	The components of deferred taxes as of March 31, 2017 and September 30, 2016 consist of the following: March 31, September 30, 2017 2016 Deferred tax assets: Deferred tax asset from net operating loss carry-forwards for parent company $ 203,714 $ 181,274 Valuation allowance (203,714) (181,274) Deferred tax asset - net $ - $ - Deferred tax liability: Revenue recognized based on percentage of completion $ 4,949,824 $ 5,107,087 Deferred tax liability – long term $ 4,949,824 $ 5,107,087
Summary of Valuation Allowance	March 31, September 30, 2017 2016 Beginning Balance $ 181,274 $ 136,394 Current period additions 22,440 44,880 Ending Balance $ 203,714 $ 181,274
Taxes payable	March 31, September 30, 2017 2016 CIT $ 798,795 $ 677,734 Business tax 13,373,642 13,453,236 Other taxes and fees 1,740,362 1,712,845 Total taxes payable $ 15,912,799 $ 15,843,815

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Currency Exchange Rate) (Details)	6 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
Period end RMB : USD exchange rate	6.8832	6.4494	6.6702
Six months average RMB: USD exchange rate	6.8584	6.4652	6.5326

SUMMARY OF SIGNIFICANT ACCOUN24

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Significant Accounting Policies [Line Items]
Advertising Expense	$ 31,478	$ 22,949	$ 105,769	$ 43,416
Percentage Of Contract Cost Withholds			2.00%
Real Estate Property Plant And Equipment Interest Capitalization	$ 1,320,670	$ 442,788	$ 2,602,545	$ 874,936
Supplier One [Member] | Project Expenditure [Member]
Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	38.00%	43.00%	14.00%	55.00%
Supplier Two [Member] | Project Expenditure [Member]
Significant Accounting Policies [Line Items]
Concentration Risk, Percentage		16.00%		12.00%
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			30.00%
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 DEVELOPM25

REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT (Components Of Real Estate) (Details) - USD ($)		Mar. 31, 2017	Sep. 30, 2016
Real Estate Properties [Line Items]
Real estate property development completed		$ 96,043,086	$ 114,842,984
Less: Real estate property completed - short-term		94,437,309	113,185,929
Real estate property completed - long-term		1,605,777	1,657,055
Real estate property under development		247,600,351	207,384,015
Less: Short-term portion		94,376,792	0
Real estate property under development -long-term		153,223,559	207,384,015
Hanzhong City Mingzhu Garden Phase I
Real Estate Properties [Line Items]
Real estate property development completed		922,604	952,066
Hanzhogn City Mingzhu Garden Phase II
Real Estate Properties [Line Items]
Real estate property development completed		46,805,702	54,933,680
Hanzhong City Nan Dajie (Mingzhu Xinju)
Real Estate Properties [Line Items]
Real estate property development completed		1,329,188	1,371,633
Hanzhong City Oriental Pearl Garden
Real Estate Properties [Line Items]
Real estate property development completed	[1]	40,408,165	50,643,258
Yang County Yangzhou Pearl Garden Phase I
Real Estate Properties [Line Items]
Real estate property development completed		2,322,263	2,396,420
Yang County Yangzhou Pearl Garden Phase II
Real Estate Properties [Line Items]
Real estate property development completed		4,255,164	4,545,927
Yang County Yangzhou Palace
Real Estate Properties [Line Items]
Real estate property under development		91,370,390	76,618,856
Hanzhong City Shijin Project
Real Estate Properties [Line Items]
Real estate property under development		7,037,095	7,261,811
Hanzhong City Liangzhou Road and related projects
Real Estate Properties [Line Items]
Real estate property under development	[2]	122,122,212	117,226,429
Hanzhong City Hanfeng Beiyuan East
Real Estate Properties [Line Items]
Real estate property under development	[3]	689,746	657,706
Hanzhong City Beidajie
Real Estate Properties [Line Items]
Real estate property under development	[4]	24,064,253	3,228,580
Yang County East 2nd Ring Road
Real Estate Properties [Line Items]
Real estate property under development	[5]	$ 2,316,655	$ 2,390,633
[1]	The Company recognized $Nil of development cost in cost of real estate sales under the percentage of completion method for the three and six months ended March 31, 2017 (2016 - $1,970,130 and $2,920,181).
[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 and approved by the local government in 2017. The Company’s development cost incurred on Liangzhou Road Project is treated as the Company’s deposit on purchasing the related land use rights, as agreed by the local government. As of March 31, 2017, the actual costs incurred by the Company were $122,122,212 (September 30, 2016 - $117,226,429) 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 six months ended March 31, 2017 and 2016, 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 and the Company recorded the subsidies to offset against the development cost of Liangzhou Road 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 March 31, 2017, the local government was still in the process of assessing the budget for these projects.
[4]	For the three and six months ended March 31, 2017, the Company has not received government’s subsidies related to its Shanty Area Reform Project surrounding Beidajie Project located in Hantai District, Hanzhong City. For the three and six months ended March 31, 2016, the Company received government’s subsidies in the amount of $Nil and $3,256,029 for its Shanty Area Reform Project surrounding Beidajie Project located in Hantai District, Hanzhong City, respectively. Since the Company has not met the performance requirement, the Company recorded the subsidies to offset against the development cost of Beidajie project.
[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 km and a budgeted price of approximately $24.4 million (or RMB 168 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 (March 31, 2017 – 4.75% and September 30, 2016 – 4.75%). The local government has approved a refund to the Company by reducing local surcharges or taxes otherwise required in the real estate development. The road construction is expected to be completed by 2017.

REAL ESTATE PROPERTY DEVELOPM26

REAL ESTATE PROPERTY DEVELOPMENT COMPLETED AND UNDER DEVELOPMENT (Narrative) (Details) ¥ in Millions	3 Months Ended		6 Months Ended			12 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2017CNY (¥)	Mar. 31, 2016USD ($)	Sep. 30, 2013USD ($)	Sep. 30, 2016USD ($)
Real Estate Properties [Line Items]
Land use right included in real estate property under development	$ 18,962,916		$ 18,962,916				$ 19,568,460
Hanzhong City Oriental Pearl Garden
Real Estate Properties [Line Items]
Construction and Development Costs, Total	0	$ 1,970,130	0		$ 2,920,181
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	$ 122,122,212		122,122,212				$ 117,226,429
Yang County East 2nd Ring Road
Real Estate Properties [Line Items]
Budgeted Price For Municipal Roads			$ 24,400,000	¥ 168
Debt Instrument, Interest Rate, Stated Percentage	4.75%		4.75%				4.75%
Hanzhong City Beidajie
Real Estate Properties [Line Items]
Revenue from Grants	$ 0				$ 3,256,029

OTHER LOANS (Other Loans-Long T

OTHER LOANS (Other Loans-Long Term Portion) (Details) - USD ($)		Mar. 31, 2017	Sep. 30, 2016
Other loan		$ 129,064,953	$ 105,968,981
Less: current maturities of other loans		11,872,385	6,125,753
Other loans - long-term portion		117,192,568	99,843,228
Loan A
Other loan	[1]	100,153,982	93,975,338
Loan B
Other loan	[2]	11,622,501	11,993,643
Loan C
Other loan	[3]	$ 17,288,470	$ 0
[1]	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 $112,592,978 (RMB 775,000,000) for a long-term loan at 4.245% interest per year to develop Liang Zhou Road Project. As of March 31, 2017 and September 30, 2016, the Company borrowed $100,153,982 and $93,975,338 under this credit line, respectively. 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 $91,370,390 as of March 31, 2017 (September 30, 2016 - $76,618,856). In addition, the Company was required to provide a security deposit for the loan received. As of March 31, 2017 and September 30, 2016, the deposit balances were $5,288,950 and $4,941,726, respectively, and included in the security deposits. Interest of $1,175,312 and $359,405 for the three months ended March 31, 2017 and 2016, and interest of $2,313,186 and $652,885 for the six months ended March 31, 2017 and 2016, respectively, were capitalized in to the development cost of Liangzhou road project. The combined loan repayment schedule assuming total loan proceeds are borrowed are listed below:
[2]	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 $11,622,501 (RMB 80,000,000) related to Oriental Garden related projects. The loan carries interest at 3.575% per year and is due in January 2019. The Company’s major shareholder Mr. Xiaojun Zhu pledged his personal assets as collateral for the loan. As of March 31, 2017, 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 months ended March 31, 2017 and 2016, total interest was $103,880 and $67,584, respectively. For the six months ended March 31, 2017 and 2016, total interest was $209,662 and $67,584, respectively. As of September 30, 2016, these projects were completed and the related interest was charged to expense. The full amount of loan has following repayment schedule:
[3]	In December 2016, the Company signed a loan agreement with Hantai District Urban Construction Investment Development Co., Ltd, a state owned Company, to borrow up to $17,288,470 (RMB119,000,000) for the development of Hanzhong City Liangzhou Road project. As of March 31, 2017, the Company received all the proceeds. The loan carries interest at a fixed interest of 1.2% and is due on June 30, 2021. The Company pledged the assets of Liangzhou Road and related projects with carrying value of $122,122,212 as collateral for the loan. Total financing costs of $128,143 and $Nil for the three months ended March 31, 2017 and 2016, and $258,646 and $Nil for the six months ended March 31, 2017 and 2016, respectively, were capitalized in to the development cost of Hanzhong City Liangzhou Road project.

OTHER LOANS (Schedule Of Repaym

OTHER LOANS (Schedule Of Repayment Loan) (Details) - 6 months ended Mar. 31, 2017	USD ($)	CNY (¥)
Debt Instrument Scheduled Repayment Amount	$ 112,592,978	¥ 775,000,000
May 29, 2017
Debt Instrument Scheduled Repayment Amount	5,936,192	40,860,000
November 20, 2017
Debt Instrument Scheduled Repayment Amount	5,936,192	40,860,000
April 20, 2018
Debt Instrument Scheduled Repayment Amount	12,710,658	87,490,000
May 20, 2018
Debt Instrument Scheduled Repayment Amount	6,039,342	41,570,000
November 20, 2018
Debt Instrument Scheduled Repayment Amount	6,039,342	41,570,000
April 20, 2019
Debt Instrument Scheduled Repayment Amount	12,710,658	87,490,000
May 20, 2019
Debt Instrument Scheduled Repayment Amount	6,184,623	42,570,000
October 20, 2019
Debt Instrument Scheduled Repayment Amount	12,710,658	87,490,000
November 29, 2019
Debt Instrument Scheduled Repayment Amount	6,184,623	42,570,000
Apri 20, 2020
Debt Instrument Scheduled Repayment Amount	12,715,016	87,520,000
October 20, 2020
Debt Instrument Scheduled Repayment Amount	12,710,658	87,490,000
October 20, 2021
Debt Instrument Scheduled Repayment Amount	$ 12,715,016	¥ 87,520,000

OTHER LOANS (Schedule Of Full R

OTHER LOANS (Schedule Of Full Repayment Loan) (Details) - 6 months ended Mar. 31, 2017 - Other Short Term Loan 4 [Member]	USD ($)	CNY (¥)
Debt Instrument, Periodic Payment, Total	$ 11,622,501	¥ 80,000,000
Earlier of July 2018 or 60% sales completed
Debt Instrument, Periodic Payment, Total	2,905,625	20,000,000
Earlier of October 2018 or 70% sales completed
Debt Instrument, Periodic Payment, Total	4,358,438	30,000,000
Earlier of January 2019 or 75% sales completed
Debt Instrument, Periodic Payment, Total	$ 4,358,438	¥ 30,000,000

OTHER LOANS (Narrative) (Detail

OTHER LOANS (Narrative) (Details)	3 Months Ended		6 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2017CNY (¥)	Sep. 30, 2016USD ($)	Jan. 08, 2016USD ($)	Jan. 08, 2016CNY (¥)
Debt Instrument [Line Items]
Debt Instrument, Collateral Amount	$ 122,122,212		$ 122,122,212
Security Deposit	$ 7,694,430		$ 7,694,430			$ 7,940,137
Hantai District Urban Construction Investment Development Co., Ltd [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	1.20%		1.20%		1.20%
Line of Credit Facility, Maximum Borrowing Capacity	$ 17,288,470		$ 17,288,470		¥ 119,000,000
Interest Expense, Debt	$ 128,143	$ 0	$ 258,646	$ 0
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	$ 100,153,982		$ 100,153,982			93,975,338
Line of Credit Facility, Maximum Borrowing Capacity	112,592,978		112,592,978		¥ 775,000,000
Long-term Debt, Gross	91,370,390		91,370,390			76,618,856
Debt Instrument, Periodic Payment, Interest	1,175,312	359,405	2,313,186	652,885
Security Deposit	5,288,950		5,288,950			$ 4,941,726
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							$ 11,622,501	¥ 80,000,000
Debt Instrument, Periodic Payment, Interest	$ 103,880	$ 67,584	$ 209,662	$ 67,584

CUSTOMER DEPOSITS (Customer Dep

CUSTOMER DEPOSITS (Customer Deposits From Pre-Sale Of Residential Units) (Details) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Customer deposits by real estate projects
Total	$ 30,518,311	$ 27,477,480
Less: Customer deposits - short-term	16,662,127	16,790,208
Customer deposits - long-term	13,856,184	10,687,272
Mingzhu Garden (Mingzhu Nanyuan and Mingzhu Beiyuan)
Customer deposits by real estate projects
Total	9,617,704	9,150,119
Oriental Pearl Garden
Customer deposits by real estate projects
Total	5,076,396	5,582,158
Liangzhou road and related projects
Customer deposits by real estate projects
Total	2,556,950	2,593,625
Yang County Pearl Garden
Customer deposits by real estate projects
Total	1,968,027	2,057,931
Yang County Palace
Customer deposits by real estate projects
Total	$ 11,299,234	$ 8,093,647

CUSTOMER DEPOSITS (Narrative) (

CUSTOMER DEPOSITS (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2017	Sep. 30, 2016
Deposit Liabilities [Line Items]
Mortgage loan guarantee amount	$ 1.1	$ 1.5
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	30.00%
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)		Mar. 31, 2017USD ($)	Mar. 31, 2017CNY (¥)	Sep. 30, 2016USD ($)	Sep. 30, 2016CNY (¥)
Shareholder Loans [Line Items]
Shareholder loan		$ 3,175,644		$ 2,709,523
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]		¥ 1,365,644		¥ 899,523
[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 interest rate for the loan is 4% per annum and the loan matured on July 19, 2014. The Company entered into the amendments to the USD Loan Agreement to extend the term until July 31, 2017. The Company recorded interest of $18,100 and $36,200 for the three and six months ended March 31, 2017 (2016 -$18,100 and $36,200). The Company has not yet paid this interest and it is recorded in accrued expenses in the accompanying condensed consolidated balance sheets as of March 31, 2017 and September 30, 2016.
[2]	On December 31, 2013, Shaanxi Guangsha Investment and Development Group Co., Ltd. (the “Guangsha”) 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 upon maturity, with at an interest rate of 4.35% per year. The RMB loan balance as of March 31, 2017 and September 30, 2016 was $1,365,644 and $899,523, respectively. The Company recorded interest of $17,214 and $30,712 for the three and six months ended March 31, 2017 (2016 - $10,070 and $22,588), 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		6 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
Shareholder Loans [Line Items]
Interest (expense)		$ 123,447	$ 69,094	$ 244,570	$ 173,140
Shareholder loan		3,175,644		3,175,644		$ 2,709,523
Shareholder USD Loan Agreement
Shareholder Loans [Line Items]
Interest (expense)		$ 18,100	18,100	$ 36,200	36,200
Debt instrument, stated interest rate		4.00%		4.00%
Shareholder loan	[1]	$ 1,810,000		$ 1,810,000		1,810,000
Shareholder's RMB Loan Agreement
Shareholder Loans [Line Items]
Interest (expense)		$ 17,214	$ 10,070	$ 30,712	$ 22,588
Debt instrument, stated interest rate		4.35%		4.35%
Shareholder loan		$ 1,365,644		$ 1,365,644		$ 899,523
[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 interest rate for the loan is 4% per annum and the loan matured on July 19, 2014. The Company entered into the amendments to the USD Loan Agreement to extend the term until July 31, 2017. The Company recorded interest of $18,100 and $36,200 for the three and six months ended March 31, 2017 (2016 -$18,100 and $36,200). The Company has not yet paid this interest and it is recorded in accrued expenses in the accompanying condensed consolidated balance sheets as of March 31, 2017 and September 30, 2016.

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 ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2017	Sep. 30, 2016
Number of Options
Outstanding	120,000
Granted	0
Forfeited	0
Exercised	0
Outstanding	120,000	120,000
Exercisable, March 31, 2017	63,333
Weighted Average Exercise Price
Outstanding	$ 1.89
Granted	0
Forfeited	0
Exercised	0
Outstanding	1.89	$ 1.89
Exercisable, March 31, 2017	$ 1.89
Weighted Average Remaining Life in Years
Outstanding	1 year 4 months 20 days	1 year 10 months 20 days
Exercisable, March 31, 2017	1 year 4 months 20 days
Grant Date Fair Value
Outstanding	$ 178,800
Granted	0
Forfeited	0
Exercised	0
Outstanding	178,800	$ 178,800
Exercisable, March 31, 2017	$ 94,367

STOCK OPTIONS (Narrative) (Deta

STOCK OPTIONS (Narrative) (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 31, 2015	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercise price				$ 0
Stock Based Compensation		$ 14,900	$ 14,900	$ 29,800	$ 29,800
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				52.80%		36.10%

TAXES (Components of Income Tax

TAXES (Components of Income Tax Expenses) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Income Taxes [Line Items]
Current tax provision	$ 276,524	$ 78,188	$ 498,522	$ 147,680
Deferred tax provision	0	88,314	0	154,618
Income tax provision	$ 276,524	$ 166,502	$ 498,522	$ 302,298

TAXES (Components Of Deferred T

TAXES (Components Of Deferred Taxes) (Details) - USD ($)	Mar. 31, 2017	Sep. 30, 2016	Sep. 30, 2015
Deferred tax assets:
Deferred tax asset from net operating loss carry-forwards for parent company	$ 203,714	$ 181,274
Valuation allowance	(203,714)	(181,274)	$ (136,394)
Deferred tax asset - net	0	0
Deferred tax liability:
Revenue recognized based on percentage of completion	4,949,824	5,107,087
Deferred tax liability - long term	$ 4,949,824	$ 5,107,087

TAXES (Movement of valuation al

TAXES (Movement of valuation allowance) (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
Income Taxes [Line Items]
Beginning Balance			$ 181,274	$ 136,394	$ 136,394
Current period additions	$ 11,220	$ 11,220	22,440	$ 22,440	44,880
Ending Balance	$ 203,714		$ 203,714		$ 181,274

TAXES (Taxes Payable) (Details)

TAXES (Taxes Payable) (Details) - USD ($)	Mar. 31, 2017	Sep. 30, 2016
Income Taxes [Line Items]
CIT	$ 798,795	$ 677,734
Business tax	13,373,642	13,453,236
Other taxes and fees	1,740,362	1,712,845
Total taxes payable	$ 15,912,799	$ 15,843,815

TAXES (Narrative) (Details)

TAXES (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
Income Taxes [Line Items]
Business sales tax, rate			5.00%
Business sales tax	$ 13,373,642		$ 13,373,642		$ 13,453,236
Income tax at statutory tax rate			25.00%
Net operating loss carry forwards	599,160		$ 599,160		533,160
Net operating loss carry forwards, expiration year			2,035
Provision for income taxes	276,524	$ 166,502	$ 498,522	$ 302,298
Land appreciation tax payable	1,237,002		1,237,002		1,049,401
Valuation allowance, period additions	$ 11,220	$ 11,220	$ 22,440	$ 22,440	$ 44,880
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	6 Months Ended
	Mar. 31, 2017	Sep. 30, 2016
Commitments And Contingencies [Line Items]
Security deposit provided for guarantee	$ 1.1	$ 1.5
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%