Home System Group Reports 2006 Financial Results

Home System Group Reports 2006 Financial Results

April 02, 2007

    - Company reports 2006 revenue of $26.4 million and net
income of $1.4
      million

    - On January 31, 2007 Company completed acquisition of
Oceanic Well
      Profit, Inc.


    LOS ANGELES, April 2 /Xinhua-PRNewswire-FirstCall/ --
Home System Group
(OTC Bulletin Board: HSYT) based in Guangdong Province,
PRC, an International
manufacturer and distributor of home appliance products to
major global
retailers, today announced 2006 financial results.

    Reported results exclude contribution from the January
2007 acquisition of
Holy (H.K.) Limited, a Hong Kong holding company which owns
100 percent of
Oceanic Well Profit, Inc., one of China's largest
professional BBQ gas grill
manufacturers with annual production capacity of $75
million.

    For the year ended December 31, 2006, revenues were
$26.4 million and were
generated from the distribution of home appliance products,
including BBQ gas
grills, home water pumps, blenders, electric fans, heaters,
and other
electronic and environmentally friendly products made in
China and sold
through major distributors such as Nexgrill, Pro Steel,
Rich Empire and Whalen
directly to retailers based in the US, Europe and
Australia. Cost of sales for
the year were $23.7 million yielding gross profits of $2.7
million and gross
margins of 10.1 percent. General and administrative
expenses were $1 million,
of which $0.7 million was a non-cash charge related to
equity compensation for
consultants.

    Operating income for the year totaled $1.7 million with
a related
operating margin of 6.4 percent. Net income was $1.4
million with earnings per
share of $0.08 based on 16.1 million fully diluted shares
outstanding. The
Company did not incur taxes as revenues were generated
outside of Hong Kong.

    Net cash provided by operating activities for 2006
totaled $2.0 million,
which was a result of positive net income, decreased
accounts receivable and
strong working capital management. Current assets were $7.2
million and the
Company maintained a healthy current ratio of 2.1 to 1.
Shareholders' equity
improved 133.8 percent to $3.8 million.

    "We made further progress in growing our
International business by
establishing incremental distribution capabilities in
Europe and North
America, adding new product lines to broaden our portfolio,
while formalizing
several new customer relationships. In order to develop a
vertically
integrated Company and capitalize on the management teams'
manufacturing
expertise, we have been actively pursuing acquisition
opportunities, including
companies developing and manufacturing key products
complementary to our
distribution platform," stated Mr. Li Wei Qiu, CEO and
Chairman of Home System
Group.

    "On January 30 2007, the Company completed a
crucial first step in this
initiative with the acquisition of Oceanic Well Profit,
Inc., which is located
in Zhongshan City, Guangdong Province, adjacent to
Shenzhen. The Company is a
leading OEM manufacturer of BBQ gas grills for end
customers such as Home
Depot which sells the product under its Charm Glow(R)
private label. In 2006
Home System generated 15 percent of its revenues from
distributing Oceanic
Well Profit's product and thus we anticipate this
acquisition will
significantly enhance overall margins and provide
incremental opportunities
for pricing power. As a point of reference, over $4 billion
in grill sales
occur in the United States each year, with approximately 85
percent of
households owning a grill."

    Consideration for the purchase of Oceanic Well Profit
included 42.5
million common shares and $3 million in cash. After the
acquisition of Oceanic
Well Profit, the Company had approximately 62.5 million
shares outstanding.
The Company commenced operations in April, 2006 and
utilizes a state of the
art, newly constructed 864,000 square-foot manufacturing
facility on 82.5
acres of property. This new facility is equipped with over
500 pieces of
advanced production equipment and utilizes a staff of 1,200
employees.
Currently, the facility operates five production lines
which are
interchangeable and can produce 450,000 grills, 3 million
water pumps, and 2
million tool and hardware cabinets annually, collectively
representing $75
million in total revenue capacity.

    Additionally, Oceanic Well Profit, Inc. has an
extensive research and
development team consisting of 278 employees dedicated to
product enhancement
and development, As part of the Company's new product
efforts, Oceanic Well
Profit expects to introduce a new line of energy efficient
oven range hoods,
BBQ grills, water pumps and dishwashers, in addition to new
tool and hardware
cabinets. Management expects that these new product
introductions will
complement and enhance its current product offering while
further penetrating
both international and domestic markets through existing
and new customers.

    "We have identified several additional acquisition
opportunities which are
attractive from a production and geographic standpoint. The
goal is to
increase the size and scope of our Company while
capitalizing on our ability
to significantly increase overall production capacity and
monetizing a broader
base of significant customers. The new facility we
purchased with Ocean Well
Profit offers us the flexibility to meaningfully improve
our economies of
scale and optimize leverage in our business model. The
secular trend towards
outsourcing manufacturing to China remains strong and we
are well positioned
to capture a meaningful portion of this large and growing
market," Mr. Li Wei
Qiu concluded.

    About Home System Group

    Headquartered in Hong Kong, China, Home System Group,
through its wholly
owned distributor Oceanic International (Hong Kong), Ltd.
(OCIL) and Oceanic
Well Profit produces and distributes home appliances,
including stainless
steel gas grills, residential water pumps, electronic fans,
fruit processors,
and other electrical appliances to retailers in the U.S.,
Europe and Australia.

The Company became public through a reverse merger and
received its stock
trading symbol on October 4, 2006. Please visit the company
website at:
www.homesystemgroup.com.

    Safe Harbor Statement:
    Certain statements in this news release may contain
forward-looking
information about Home System Group, Inc.'s business and
products within the
meaning of Rule 175 under the Securities Act of 1933 and
Rule 3b-6 under the
Securities Exchange Act of 1934, and are subject to the
safe harbor created by
those rules. The actual results may differ materially
depending on a number of
risk factors including, but not limited to, the following:
general economic
and business conditions, product development, shipments to
end customers,
market acceptance of new and existing products, additional
competition from
existing and new competitors, changes in technology, and
various other factors
beyond its control. All forward-looking statements are
expressly qualified in
their entirety by this Cautionary Statement and the risks
factors detailed in
the Company's reports filed with the Securities and
Exchange Commission. Home
System Group undertakes no duty to revise or update any
forward-looking
statements to reflect events or circumstances after the
date of this release.

    The financial information stated above and in the
tables below has been
abstracted from the Company's Form 10-K for the year ended
December 31, 2006
filed with the Securities and Exchange Commission and
should be read in
conjunction with the information provided therein.


        HOME SYSTEM GROUP (formerly SUPREME REALTY
INVESTMENTS, INC.)
                               AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                          DECEMBER 31, 2006 AND 2005

                                                     2006  
           2005
    ASSETS

    CURRENT ASSETS
    Cash                                           $65,615 
        $103,701
    Accounts receivable - Net of
     allowance for doubtful
     accounts of $58,012 and $-0-                1,886,349 
       3,962,986
    Trade deposits                               2,903,959 
       2,208,079
    Due from directors                               7,629 
               -
    Due from related party                       2,344,415 
               -
                                                 7,207,967 
       6,274,766

    PROPERTY AND EQUIPMENT                             996 
               -

    TOTAL ASSETS                                $7,208,963 
      $6,274,766

    LIABILITIES AND STOCKHOLDERS' EQUITY

    CURRENT LIABILITIES
    Bank loans                                    $962,020 
      $3,030,836
    Accounts payable and accrued expenses        2,474,180 
       1,578,677
    Due to directors                                 8,624 
          54,917

    TOTAL LIABILITIES                            3,444,824 
       4,664,430

    STOCKHOLDERS' EQUITY

    COMMON STOCK - $0.001 par value;
     200,000,000 shares authorized,
     19,797,949 and 8,000,000 shares issued
     and outstanding                                19,798 
           8,000

    ADDITIONAL PAID-IN CAPITAL                   1,680,204 
          (7,998)

    NOTE RECEIVABLE FOR STOCK ISSUANCE            (900,000)
               -

    RETAINED EARNINGS                            2,964,137 
       1,610,334

    TOTAL STOCKHOLDERS' EQUITY                   3,764,139 
       1,610,336

    TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                     $7,208,963 
      $6,274,766


        HOME SYSTEM GROUP (formerly SUPREME REALTY
INVESTMENTS, INC.)
                               AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                        YEARS ENDED DECEMBER 31, 2006

                                                           
          2006

    NET SALES                                              
      $26,391,044

    OPERATING EXPENSES
    Cost of net sales                                      
       23,736,261
    General and administrative expenses                    
          992,379
                                                           
       24,728,640

    INCOME FROM OPERATIONS                                 
        1,662,404

    OTHER INCOME (EXPENSE)
    Finance costs                                          
         (313,784)
    Interest income                                        
            5,183
                                                           
         (308,601)

    NET INCOME                                             
       $1,353,803

    BASIC AND DILUTED EARNINGS PER SHARE                   
            $0.08

    BASIC AND DILUTED WEIGHTED AVERAGE
          NUMBER OF SHARES                                 
       16,047,950


    CONTACT:  

     investors, Hai Yan Lin, 
     [phone],
     [e-mail]

     Matt Hayden, HC International,
     [phone]
     [e-mail]