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HOME SYSTEM GROUP (GREY:HSYT)

Wednesday, December 15, 2010

Pro-forma income statement reflecting the addition of a recent acquisition Electrical Appliances Co., Ltd. See exhibit 99.3

HOME SYSTEM GROUP AND SUBSIDIARIES

Unaudited PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010

	In USD
Items	Sanfan			Jinxinglong			HSG			Adjustment			HSYT (Pro forma)
	30-Sep-10			30-Sep-10			30-Sep-10						30-Sep-10
Net Sales	$	17,132,548		$	17,028,721		$	86,607,478		$	-		$	120,768,747
Cost of Sales		(13,455,112	)		(13,955,606	)		(66,877,268	)		-			(94,287,986	)
GROSS PROFIT		3,677,436			3,073,115			19,730,210			-			26,480,761

General, selling and administrative expenses		(274,195	)		(327,547	)		(5,314,898	)		-			(5,916,640	)

INCOME FROM OPERATIONS		3,403,241			2,745,568			14,415,312						20,564,121

OTHER (EXPENSE) INCOME
Loss on debt conversion		-			-			(1,747,762	)		-			(1,747,762	)
Other income (expense)		45,125			723			815,951			-			861,799
Interest expense, net		1,487			(58,952	)		(1,007,428	)		-			(1,064,902	)

INCOME BEFORE INCOME TAXES	$	3,449,853		$	2,687,339		$	12,476,073		$	-		$	18,613,265

INCOME TAXES		(862,463	)		(354,839	)		(3,045,826	)		-			(4,263,128	)

NET INCOME	$	2,587,390		$	2,332,500		$	9,430,247		$	-		$	14,350,137

Less: income attributable to non controlling interest		-			-			-			(258,739	)		(258,739	)

Net income attributable to HSYT shareholders		2,587,390			2,332,500			9,430,247			(258,379	)		14,091,398
Basic & Diluted Weighted Average Shares		65,837,787			65,837,787			65,837,787			-			65,837,787
Basic & Diluted Earnings per Share		0.04			0.03			0.14			-			0.21