With 1.3 billion citizens, China is easily the world's largest housing market.  Since China's government stopped providing free housing to its citizens and has began promoting the use of mortgage financing, the demand for privately built, up-to-date housing and related products has skyrocketed. It stands to reason that the potential for established, regional and experienced construction companies is virtually unlimited.

Gold Horse International is a multi-functional construction, engineering company and a leading builder of multi-unit residential complexes and hotels near Inner Mongolia. Additionally, Gold Horse has extensive experience offering program, project, and construction management services for residential facilities and hotels.  We posses the capacity of undertaking various kinds of construction work both for industrial and civil purposes. 

The Company is emerging to grow and diversify in other market such as transportation, mining, and potentially power industries.  Chinese construction spending will increase twelve percent annually through 2009. However, short term projects will strategically focus on the development of a huge mid-range housing market, still in it’s infancy in China with an estimated 82.5 million new homes projected, according to the Wall Street Journal, to be built during the next five years.

Gold Horse’s reputation for completing projects on time is a significant competitive advantage in the building market. We are well known for its ability to plan and execute rapid response assignments and multi-year contracts through diversified construction and design-build abilities. With its established networks within the Chinese government, the outstanding recognized executive team, and a staff of over 900 employees Gold Horse is a regional market leader.
Since its inception in 1981, Gold Horse International has crafted its buildings with a blend of exact science and personal commitment. Its mission is to build high quality construction projects on time, within budget using qualified professionals, maximum safety standards and state-of-the-art technology. We are committed to delivering a product that meets or exceeds all expectations for complete customer satisfaction.

The World Bank estimates that between now and 2015 roughly half of the world's new building construction will take place in China. The vast majority of these projects are large—commercial office buildings between 100,000 and 150,000 m2 and residential developments that span more than 500,000 m2 of construction area. China's entry into the World Trade Organization and its subsequent investment boom is spurring new real estate development across the nation, and Beijing's successful bid for the 2008 Olympics will result in billions of dollars in new construction in the capital. China's Ministry of Construction (MOC) estimates that China will add 2 billion m2 in new construction in 2005 and will double its current building stock by 2020.

Since the founding of the People's Republic of China in 1949, urban workers have been virtually guaranteed housing by their employers.  However, state subsidies for housing are gradually being eliminated with housing reforms introduced by Premier Zhu Rongji.  The expectation of suspended subsides, the establishment of a housing fund from which low interest loans are drawn, and local tax breaks for home purchases have led to greater demands for affordable housing and have encouraged home ownership. 

The market potential for housing construction and building materials in China is enormous.  State economic reforms, which designated the building material industry as an engine of economic growth in 2003, are promoting the development of housing industry.  During the next three years, government official plan to increase spending on new homes by 15% by investing $97 billion (8 trillion RMB) in infrastructure and residential housing construction. 

Along with the increase in development, the reforms has moved Chinese residential construction industry away from traditional building materials and building style by encouraging the usage of energy efficient and environmentally friendly building materials, which opens the market for American made building products. Just in the last year, Chinese market size for this type of building materials have grown 24.7% from the previous year and is expected to continue to increase this year.

The Construction industry has dramatically contributed to the sustainable development of China's economy. According to statistics from the State Statistics Bureau, the construction industry accounts for 6.6% of the national GDP, making it the 4th biggest industry over the last five years. By the end of 2001, there were 36.69 million people working in the construction industry, and there are 65,671 ACE companies in China.

China's entry to the WTO stimulated demand for ACE services in projects such as hotels, high-rise buildings and housing. Foreign investment has also been stimulated by this growth.

China's real estate market has been booming, with investment in domestic real-estate projects rising 31% in 2002 to USD 97 Billion. Home ownership has increased remarkably. Powered by the housing reform program and rising personal income, the demand for home ownership will continue to be strong. But, high housing costs, poor construction quality and limited financing options continue to drag on the housing sector.

More and more domestic real estate developers are looking for high-quality architectural services. This niche market offers foreign ACE firms good opportunities in the long term. While Chinese architects have rich experience in small and medium-sized buildings, they often lack experience with large-scale projects such as super high-rises and large-scale, integrated projects. In addition, intelligent architecture and integrating new technology & building materials are also weak points. Foreign ACE firms should be able to find a good market niche in high-end projects.

The Tenth Five-Year Plan (2001-2005) stipulates that the construction industry must be promoted, design standards improved and the level of design, construction and management rose. As outlined by the Chinese government, the construction sector's main tasks are as follows: a more standardized construction market should be established; a construction project price-management system that fits the requirements of the market economy should be set up; a reasonable organizational framework of the sector should be established; a modern enterprise system should be set up in the vast majority of State-owned key enterprises; the quality of construction projects, especially of residences, will be largely improved and heavy casualty rates should be effectively controlled; the quality of the construction sector as a whole must be significantly improved; the Chinese construction industry's position and market share on the international contract market will be promoted.

Key drivers in the current construction boom in China are inexpensive labor and manufacturing costs, coupled with plentiful land for building factories, plants and supporting infrastructure. According to Global Insight, China's impressive 7.9% growth rate over the next decade will be surpassed in the short term by a five-year projection of 8.5%. A focused look at commercial, industrial, institutional and office construction reveals an even higher growth rate of 8.9% over the next five years. A boom in residential construction will soon follow, as an increasing number of skilled and unskilled workers migrate to urban centers for employment opportunities.