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**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**




**FORM
      10-KSB**





(Mark
      One)





**x**  ANNUAL
      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      193 4


For
                the annual period ended
            **December
                31, 2006**







**o**  TRANSITION
      REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT


For
                the transition period from
            
            to





Commission
                file number
            **000-49770**








**HOME
                SYSTEM GROUP**
              (Exact
                name of small business issuer as specified in its
                charter)**Nevada**
              (State
                or other jurisdiction of incorporation or organization)
            **43-1954776**
              (IRS
                Employer Identification No.)**No.
                5A, Zuanshi Ge, Fuqiang Yi Tian Ming Yuan,**
              **Fu
                Tian Qu, Shenzhen City, P.R. China**
              (Address
                of principal executive offices)**86
                755 83570142**
              (Issuer's
                telephone number)Securities
                Issued under Section 12(b) of the Exchange Act:Title
                of Each Class
            
            Name
                of Exchange on which registered**$0.001
                par value, common**
            
            **Over-the-Counter
                Bulletin Board(OTCBB)**Securities
                Issued under Section 12(g) of the Exchange Act: NoneTitle
                of Class


Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days. Yes **x** No **o**





Check
      if
      there is no disclosure of delinquent filers in response to Item 405 of
      Regulation S-B contained in this form, and no disclosure will be contained,
      to
      the best of registrant’s knowledge, in definitive proxy or information
      statements incorporated by reference in Part III of this Form 10-KSB or any
      amendment to this Form 10-KSB. o





Indicate
      by check mark whether the Company is a shell company (as defined in Rule 12b-2
      of the Exchange Act) Yes o No x





Issuer’s
      revenues for the fiscal year ended December 31, 2006, were
      $26,391,044.





The
      aggregate market value of the voting and non-voting common equity held by
      non-affiliates of the Issuer as of March 20, 2007, based upon the last reported
      sales price on the OTCBB was $65,222,693.





**(APPLICABLE
      ONLY TO CORPORATE ISSUERS)**





The
      Issuer’s common stock outstanding as of March 21, 2007 was 62,297,949
      shares.





**DOCUMENTS
      INCORPORATED BY REFERENCE:**





**None**





Transitional
      Small Business Disclosure Format (Check One): Yes o No x







**HOME
      SYSTEM GROUP**




**10-KSB**




**FOR
      THE YEAR ENDED DECEMBER 31, 2006**




**INDEX**




PagePart
                  I
              Item
                  1
              Description
                  of Business
              1Item
                  2
              Description
                  of Property
              4Item
                  3
              Legal
                  Proceedings
              4Item
                  4
              Submission
                  of Matter to a Vote of Security Holders
              4Part
                  II
              Item
                  5
              Market
                  for Common Equity and Related Stockholder Matters
              5Item
                  6
              Management’s
                  Discussion and Analysis or Plan of Operation
              6Item
                  7
              Financial
                  Statements
              14Item
                  8
              Changes
                  in and Disagreements with Accountants on Accounting and Financial
                  Disclosure
              15Item
                  8A
              Controls
                  and Procedures
              15Item
                  8B
              Other
                  Information
              15Part
                  III
              Item
                  9
              Directors,
                  Executive Officers, Promoters, Control Persons and Corporate Governance:
                  Compliance with Section 16(a) of the Exchange Act
              16Item10
              Executive
                  Compensation
              18Item
                  11
              Security
                  Ownership of Certain Beneficial Owners and Management and Related
                  Stockholder Matters
              19Item
                  12
              Certain
                  Relationships and Related Transactions, and Director
                  Independence
              20Item
                  13
              Exhibits
              20Item
                  14
              Principal
                  Accountant Fees and Services
              21Signatures
              21














**PART
      I**






**Item
      1.****Description
      of Business**




**Overview**





We
      were
      organized February 9, 2000, under the laws of the State of Nevada with the
      name
      of Coronation Acquisition Corp. (the “Company”). In March 31, 2003, the Company
      entered into an Agreement and Plan of Exchange and Reorganization with Supreme
      Property, Inc, an Illinois corporation, and began to operate under the name
      of
      Supreme Realty Investment, Inc (“Supreme”). On August 4, 2006, Supreme acquired
      Home System Group, Inc. (“HSGI”) and its wholly owned operating subsidiary,
      Oceanic International (HK) Limited (“Oceanic” or “OCIL”), a company organized
      under the law of Hong Kong. On September 28, 2006, we filed a certificate of
      amendment to our articles of incorporation with the Nevada Secretary of State
      to
      Change our name from “Supreme Realty Investment, Inc.” to “Home System Group”.
      Through Oceanic, the Company distributes home appliance products such as grills,
      home use water pumps, blenders, electric fans, heaters, laser printers and
      other
      electronic and environmental friendly products.





**History**





On
      April
      11, 2006, Supreme entered into a stock purchase agreement (the “Stock Purchase
      Agreement”) with Thomas Elliot, Jean LeRoy, Jimmy Harvey and Zujun Xu. Pursuant
      to the terms and conditions of the Stock Purchase Agreement, Zujun Xu acquired
      from Thomas Elliot, Jean LeRoy, and Jimmy Harvey approximately 70.6% of the
      issued and outstanding shares of common stock of Supreme.





On
      May 4,
      2006, the Company entered into a Subscription Agreement with Yujiao Xiong,
      Youming Xiong, Chaohui Wu, Pingxin Liu, Bo Chen, Wei Liu, Juhua Wang, Shaoke
      Chen, Hanping Lee, and Mingtung Chen (collectively referred to herein as
“Investors”). Pursuant to the terms of the Subscription Agreement, the Company
      issued and sold 55,000,000 shares of its common stock to the Investors in a
      private placement exempt from the registration requirements of Section 5 of
      the
      Securities Act of 1933.





Immediately
      prior to the closing of the Transaction, Thomas Elliot served as the sole member
      of the Board of Directors of the Company (the “Board of Directors”). Pursuant to
      the terms and conditions set forth in the Stock Purchase Agreement, immediately
      following the closing of the Transaction, (1) Zujun Xu, was appointed to
      the Board of Directors, (2) Thomas Elliot tendered an undated resignation
      from the Board of Directors, with the understanding that such resignation would
      be accepted at a future date, to be determined by Zujun Xu, after the closing
      of
      the Transaction.





On
      August
      4, 2006, the Company acquired HSGI. Under the terms of the merger agreement,
      the
      stockholders of HSGI received 8,000,000 shares of our common stock of for 100%
      of HSGI’s outstanding common stock. Following the merger, on September 28, 2006,
      we filed a certificate of amendment to our articles of incorporation with the
      Nevada Secretary of State to change our name from “Supreme Realty Investment,
      Inc.” to “Home System Group”.











1








On
      August 16, 2006 Zujun Xu resigned all corporate offices and as a Director of
      the
      Company. On August 17, 2006 Mr. Li Wei Qiu was appointed Chief Executive
      Officer, Mr. Cheung Kin Wai was appointed Chief Financial Officer and Ms. Liu
      Jing was appointed Secretary. On same day, the Board of Directors appointed
      Li
      Wei Qiu and Cheung Kin Wai to serve as a member of the Board of Directors of
      the
      Company, with Li Wei Qiu serving as Chairman of the Board of Directors.





On
      July
      26, 2006 we filed a certificate of amendment to our incorporation with the
      Nevada Secretary of State to affect a one (1) for ten (10) reverse stock split.





**HSGI**





Home
      System Group, Inc. (“HSGI”) was incorporated with limited liability in the
      British Virgin Islands on February 28, 2003. On June 30, 2006 HSGI acquired
      all
      the issued and outstanding stock of Oceanic International (HK) Limited (“OCIL”).





**OCIL**





OCIL
      is a
      company organized under the laws of Hong Kong, China since June 23rd, 2004.
      OCIL
      is a distributor of home appliance products, such as grills, home use water
      pumps, blenders, electric fans, heaters, laser printers, and other electronics
      and environmental protection products. OCIL has established strategic
      partnerships with some of the world famous enterprises. OCIL is the strategic
      partner of the well-known global home grill manufacture, Nexgrill Industries
      Inc., in the greater China area. OCIL is also one of the strategic partners
      of a
      well-known global retailer, Whalen Storage, in the greater China area. Products
      distributed by OCIL have already entered into the US, Germany, France, and
      Australia markets, and continuously expands to other neighboring
      countries.  OCIL
      does
      not have a R&D Department and does not initiate any advertising or promotion
      activities on the products because OCIL is not the manufacturer.





**Industry**





The
      Company is part of the hardware industry. The hardware category is one of the
      largest international trading industries with an annual trade volume of 600
      billion USD. Product from this industry included industrial and domestic
      hardware tools, construction hardware,  general
      hardware, kitchen appliances and stainless steel products as well as some
      light-duties machinery/equipments. With the decrease of trade barriers and
      a
      strong economic outlook, international trade is playing an increasingly
      important role in our daily social and economic life. China has become one
      of
      the main manufacturers for hardware products with an annual growth rate of
      15%,
      industry output of 200 billion USD, exports of 30 billion USD.





According
      to statistical studies by China National Hardware Electric and Chemical Products
      Commercial Association, the Chinese hardware industry consists of 40 thousand
      hardware manufacturers with export volume of more than 5 million RMB, 100
      thousand other small hardware manufacturers, more than 200 thousand hardware
      retailers and approximately 1,000 large hardware retailers.

















2








Statistics
      from the Chinese Custom’s Office indicated 2004 hardware import and export total
      volume is 25 billion USD, 20.2% higher than the previous year. In which 18
      billion USD was exported to more than 100 countries/locations including but
      not
      limited to the United States, Hong Kong SAR, Germany, Japan, the United Kingdom,
      Canada, Holland, France, Taiwan (China), Saudi Arabia.





Hardware
      import and export trade volume amounted to 38.6 billion USD in 2005, an increase
      of 23.63% from 2004. Export was at 30.5 billion USD, an increase of 26.44%,
      and
      import was at 8.08 billion, an increase of 14.08%. The number of trading
      partners has increased to 219 countries/locations in 2005, and the US, Japan,
      Hong Kong SAR, Germany, and the UK are still the top 5 trading partners in
      this
      industry.





**Business
      Strategy**





Our
      short
      to mid-term strategic plan is to focus on market expansion in Europe and North
      America. To achieve this goal, we plan to sell additional product lines and
      acquire manufacturers of the home appliance products in China. Our long-term
      strategic goal is to establish strategic partnerships with more client
      companies, expand the market to other Asian countries, and become the leading
      distributor of home appliance products in China.





**Strategic
      Alliance Relations**





We
      continue to build upon our current marketing network abroad in the United
      States, Europe and Australia. Our focus is to increase market share and brand
      name recognition by developing strategic trading partnerships with our existing
      customers and to develop new customers.





**Strengthen
      Core Competitive Advantages and Expand Operations**





We
      intend
      to expand our strategic alliances, our reach to potential customers and increase
      our market shares. We plan to focus on research and development for
      environmental friendly and energy efficient products lines and becoming a leader
      in the industry. We plan to expand our production capacity, perfecting our
      management systems and process re-engineering.





**Form
      branding strategy, diversify our market globally**





Once
      we
      have achieved the first two steps, we will then develop markets domestically
      by
      establishing a marketing network in Southeast Asia and China; to create a true
      international marketing network across North America, Europe, Oceania, and
      Asia.
      Concurrently, reaching the goal of being an international company by diversify
      our products and markets




**Principal
      Suppliers** **and Customers**




The
      five
      largest suppliers for OCIL are Zhongshan City Xin Da Imports and Exports Company
      Limited, Foshan City Shun De Ying Yuan Imports and Exports Company Limited,
      Zhongshan City Bao Chang Long Imports and Exports Company Limited, Zhongshan
      City Tai Quan Imports and Exports Company Limited, and China Wu Jin Zhi Pin
      Imports and Exports Company Limited. The three largest customers for OCIL
      are Nexgrill Industries, Inc., Whalen Storage, and BTB Products,
      Inc.




3









**Employees**




As
      of
      December 31, 2006, we had 10 employees, six of which are full time





**Subsequent
      Events**





On
      January 31, 2007, we completed the acquisition of Holy (HK) Limited, a Hong
      Kong
      holding company that owns 100% of Oceanic Well Profit, Inc., a manufacturer
      of
      gas grills. The Company issued 42,500,000 newly issued shares of the Company’s
      common stock and US$3,000,000 for all of the issued and outstanding shares
      of
      common stock of Holy (HK) Limited.





**Item
      2.****Description
      of Property**





As
      of
      December 31, 2006 we did not own any real estate properties. OCIL used a
      shareholders’ office at No. 264-298 Qingshan Road, Nanfeng Center Suite 1905,
      Quanwan Xingjie, Hong
      Kong
      at no cost to OCIL. Our
      US
      office is located at 633 W. 5 th Street,
      Los Angeles, Ca 90071, and the rent is approximately $ 1,200 per month. There
      are no written lease agreements as of December 31, 2006.




**Item
      3.****Legal
      Proceedings**




The
      Company is not aware of any current, pending, or threatened litigation or
      proceedings that could have a material adverse effect on its results of
      operations, cash flows or financial condition.




**Item
      4.****Submission
      of Matters to a Vote of Security Holders******




The
      holders of a majority of the outstanding shares of common stock of the Company
      (10,700,000 shares out of the 19,797,949  shares
      were then issued and outstanding), in a written consent dated as of November
      28,
      2006 consented to the Company acquiring all of the issued and outstanding equity
      of Holy (H.K) Limited, (“HHKL”), which owns 100% of the issued and outstanding
      equity of Oceanic Well Profit Inc., thereby becoming a wholly owned
      subsidiary of the Company, in exchange for the issuance to the shareholders
      of
      HHKL an aggregate of 42,500,000 shares of restricted Common Stock of the Company
      and cash consideration of $3,000,000.






4
















**PART
      II**






**Item
      5.****Market
      for Common Equity and Related Stockholder Matters**




**Market
      information**




Our
      common stock trades under the symbol HSYT.OB on the Over-the-Counter Bulletin
      Board Electronic Quotation System maintained by the National Association of
      Securities Dealer, Inc. Following is information about the range of high and
      low
      bid prices for our common stocks for the each fiscal quarters listed below.
      On
      July 26, 2006 we conducted one (1) for ten (10) reverse split of our Common
      Stock. The prices below reflect such reverse stock split. These quotations
      reflect inter-dealer prices, without retail make-up, make-down or commissions,
      and may not necessarily represent actual transactions.





Quarter
                Ended
            High-Bid
                Quotation
            Low
                Bid QuotationMarch
                30, 2005
            N/A
            N/AJune
                30, 2005
            5.50
            .85September
                30, 2005
            3.50
            .60December
                31, 2005
            2.70
            .55March
                31, 2006
            1.00
            .30June
                30, 2006
            1.20
            .23September
                30, 2006
            1.49
            .20December
                31, 2006
            1.4
            .25




**Holders**




As
      of
      March 21, 2007, there were approximately 75 holders of record of our common
      stock, however, we believe that there are additional beneficial owners of our
      common stock who own their shares in “street name”.




**Dividends**




The
      Company has not paid any cash dividends since its inception. Any future
      dividends will be subject to the discretion of the Company's Board of Directors
      and will depend upon, among other things, future earnings, the operating and
      financial condition of the Company, its capital requirements, general business
      conditions and other pertinent facts. Therefore, there can be no assurance
      that
      any dividends on the common stock will be paid in the future.






5
















**Equity
      Compensation Plans**




The
                following table includes the information as of the end of the most
                recently completed fiscal year for each category of equity compensation
                plan of the Company:**Plan
                category**
            **Number
                of securities to be issued upon exercise of outstanding options,
                warrants
                and rights**
              **(a)**
            **Weighted-average
                exercise price of outstanding options, warrants and
                rights**
              **(b)**
            **Number
                of securities remaining available for future issuance under equity
                compensation plans (excluding securities reflected in column
                (a))**
              **(c)**Equity
                compensation plans approved by security holders
            5,000,000
            $.25
            0Equity
                compensation plans not approved by security holders
            0
            0
            0**Total**
            5,000,000
            $.25
            0




**Recent
      Sales of Unregistered Securities; Use of Proceeds from Registered Securities**




Information
      required hereunder has been included in a Current Report on Form
      8-K.




**Item
      6.****Management’s
      Discussion And Analysis**




The
      following discussion should be read in conjunction with the Consolidated
      Financial Statements and Notes thereto appearing elsewhere in this Form 10-KSB.
      The following discussion contains forward-looking statements. Our actual results
      may differ significantly from those projected in the forward-looking statements.
      Factors that may cause future results to differ materially from those projected
      in the forward-looking statements include, but are not limited to, those
      discussed in “Risk Factors” and elsewhere in this Form 10-KSB.





**FORWARD
      LOOKING STATEMENTS**




This
      Annual Report contains statements that involve expectations, plans or intentions
      (such as those relating to future business or financial results, new features
      or
      services, or management strategies). These statements are forward-looking and
      are subject to risks and uncertainties, so actual results may vary materially.
      You can identify these forward-looking statements by words such as “may,”
“should,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan” and
      other similar expressions. You should consider our forward-looking statements
      in
      light of the risks discussed herein, as well as our financial statements,
      related notes, and the other financial information appearing elsewhere in this
      Annual Report and our other filings with the Commission. Our actual results
      could differ materially from those anticipated in these forward-looking
      statements as a result of certain factors, including but not limited to those
      set forth herein. Except as required by law or regulation, we assume no
      obligation to update any forward-looking statements.





6











**Background**





Through
      Oceanic International (HK) Limited, we distribute home appliance products,
      such
      as grills, home use water pumps, blenders, electric fans, heaters, laser
      printers, and other electronics and environmental protection
      products.





Our
      short
      to mid-term strategic plan is to focus on market expansion in Europe and North
      America. To achieve this goal, the Registrant plans to sell more new brand
      products and start acquiring some manufacturers of the home appliance products
      in China. The Registrant’s long-term strategic goal is to establish strategic
      partnerships with more client companies, expands the market to other Asia
      countries, and becoming the leader distributor of the home appliance products
      in
      China.





**CRITICAL
      ACCOUNTING POLICIES AND USE OF ESTIMATES**





Our
      financial statements are prepared in accordance with accounting principles
      generally accepted in the United States of America. The following policies,
      we
      believe, are our most critical accounting policies, are important to our
      financial position and results of operations, and require significant judgment
      and estimates on the part of management. Those policies, that in the belief
      of
      management are critical and require the use of judgment in their application,
      are disclosed on Form 10KSB for the year ended December 31, 2006. Since December
      31, 2006, there have been no material changes to our critical accounting
      policies.





We
      have
      identified the following policies as critical to our business and the
      understanding of its results of operations. The impact of these policies is
      discussed throughout Management’s Discussion and Analysis of Financial Condition
      and Results of Operations where these policies affect reported and anticipated
      financial results. Preparation of this report requires our use of estimates
      and
      assumptions that affect the reported amounts of assets, liabilities, disclosure
      of contingent assets and liabilities at the date of the consolidated financial
      statements, and the reported revenue and expense amounts for the periods being
      reported. On an ongoing basis, we evaluate these estimates, including those
      related to the valuation of accounts receivable, and the potential impairment
      of
      long lived assets. We base the estimates on historical experience and on various
      other assumptions that are believed to be reasonable, the results of which
      forms
      the basis for making judgments about the carrying values of assets and
      liabilities that are not readily apparent from other sources. Actual results
      may
      differ from these estimates.





Revenue
      Recognition





In
      accordance with Securities and Exchange Commission (“SEC”) Staff Accounting
      Bulletin (“SAB”) No. 104, *Revenue
      Recognition* ,
      the
      Company recognizes revenue when persuasive evidence of a customer or distributor
      arrangement exists or acceptance occurs, receipt of goods by customer occurs,
      the price is fixed or determinable, and the sales revenues are considered
      collectible. Subject to these criteria, the Company generally recognizes revenue
      at the time product is shipped to the customer.





The
      Company follows Emerging Issues Task Force (“EITF”) No. 99-19, *Reporting
      Revenue as a Principal versus Net as an Agent.* Under
      the guidance of this EITF, the assessment of whether revenue should be reported
      gross with separate display of cost of sales to arrive at gross profit should
      be
      based on the following considerations: the Company acts as principal in the
      transaction, takes title to the products and has risk and rewards of ownership
      (such as the risk of loss for collection, delivery or returns). Based on EITF
      No. 99-19, the Company recognizes all revenue on a gross basis.




7










**Results
      of Operations for the Year Ended December 31, 2006 compared to the year ended
      December 31, 2005**




**Net
      Sales**




Net
      sales
      for 2006 totaled $26,391,044 compared to $11,130,194 for 2005, an increase
      of
      $15,260,850, or approximately 137.11%. The increase in 2006 was due to the
      Company entering into its second full year of operations with a more established
      sales channel and more developed relationship with our customers.




**Cost
      Of Sales**




Cost
      of
      sales for 2006 totaled $23,736,261 or approximately 89.94% of net sales,
      compared to $9,370,917, or approximately 84.19% of net sales, for 2005. This
      increase in cost of sales as a percentage of net sales was due to the following
      two main factors: first, we changed during 2006 in order to improve the quality
      of the products being distributed which resulted in increased in cost; secondly,
      due to the increase of the exchange rate for RMB.




**General
      and Administrative Expenses**




General
      and administrative expenses for 2006 totaled $992,379 or approximately 3.76
      % of
      net sales, compared to $167,887 or approximately 1.50% of net sales, for 2005.
      This increase in general administrative expense was due to the following
      reasons: (1) we incurred $700,000 of consulting expenses during 2006, and (2)
      increase in operations lead to an over-all increase in general and
      administrative expenses.




**Income
      (Loss) From Operations**




Income
      from operations in 2006 was $1,662,404 as compared to income from operations
      of
      $1,591,390 for 2005, an increase of $71,014, or approximately 4.46%. This
      increase was due to the increase in sales volume which has increased our net
      sales, however, this was offset by an increase in stocking prices, costs of
      sales and operating expenses. Hence the growth in income from operations is
      less
      then the growth rate for net sales.




**Interest
      Expense**




Interest
      expense for 2006 totaled $313,784 compared to $246,233 for 2005, an increase
      of
      $67,551. The increase in interest expense was due to the increased utilization
      of the line of credit during the year ended December 31, 2006.




**Net** **** **Income**




Net
      income (loss) was $1,353,803 for 2006 compared to net income of $1,345,778
      for
      2005, an increase of $8,025. The increase was due to the growth in net sales,
      but because of an increase in operating expenses and financing expenses incurred
      as a result of the increase in stocking/buy-in price, we experienced a
      relatively low growth rate in the net income when compared to the growth rate
      in
      net sale.






8









**Liquidity
      and Capital Resources**




For
      the
      years ended December 31, 2006 and December 31, 2005, net cash provided by (used
      by) operating activities totaled $1,985,779 and ($339,650) respectively. This
      change relates directly to the following factors: increase in net sales, a
      decreased in accounts receivable, an increase in trade deposit, and an increase
      in account payable.




For
      the
      year ended December 31, 2006, net cash provided by investing activities was
      $98,873 compare to 0 cash provided by investing activities in 2005. This
      increase was due to $100,000 of cash acquired in the merger with Home System
      Group, offset by capital expenditures of $1,127.




For
      the
      year ended December 31, 2006, and 2005, net cash provided by (used in) financing
      activities totaled ($2,122,738) and $442,727 respectively. The net cash used
      in
      financing activities during 2006 was a result of repayment of the bank loan
      in
      the amount of $3,030,836 and in advance to directors of $53,922 offset by
      proceeds from bank loan in the amount of $962,020.




As
      of the
      year ended December 31, 2006, our unrestricted cash resources were $65,615
      as
      compared to $103,701 as of the year ended December 31, 2005. We believe that
      the
      company will have sufficient funds to meet all the obligations that are due
      in
      the next year.




**Off-balance
      sheet arrangements**




We
      do not
      have any off-balance sheet arrangements that have or are reasonably likely
      to
      have a current or future effect on its financial condition, changes in financial
      condition, revenues or expenses, results of operations, liquidity, capital
      expenditures or capital resources that is material to its
      stockholders.





**Risks
      associated with our Common Stock**





**There
      is a limited public market for our common stock**





There
      is
      currently a limited public market for the common stock. Holders of our common
      stock may, therefore, have difficulty selling their common stock, should they
      decide to do so. In addition, there can be no assurances that such markets
      will
      continue or that any shares of common stock, which may be purchased may be
      sold
      without incurring a loss. Any such market price of the common stock may not
      necessarily bear any relationship to our book value, assets, past operating
      results, financial condition or any other established criteria of value, and
      may
      not be indicative of the market price for the common stock in the future.
      Further, the market price for the common stock may be volatile depending on
      a
      number of factors, including business performance, industry dynamics, news
      announcements or changes in general economic conditions.




**Our
      common stock may be deemed penny stock with a limited trading
      market** .





Our
      common stock is currently listed for trading in the Over-The-Counter Market
      on
      the NASD Electronic Bulletin Board or in the “pink sheets” maintained by the
      National Quotation Bureau, Inc., which are generally considered to be less
      efficient markets than markets such as NASDAQ or other national exchanges,
      and
      which may cause difficulty in conducting trades and difficulty in obtaining
      future financing. Further, our securities are subject to the “penny stock rules”
adopted pursuant to Section 15 (g) of the Securities Exchange Act of 1934,
      as
      amended (the “Exchange Act”). The penny stock rules apply to non-NASDAQ
      companies whose common stock trades at less than $5.00 per share or which have
      tangible net worth of less than $5,000,000 ($2,000,000 if the company has been
      operating for three or more years). Such rules require, among other things,
      that
      brokers who trade “penny stock” to persons other than “established customers”
complete certain documentation, make suitability inquiries of investors and
      provide investors with certain information concerning trading in the security,
      including a risk disclosure document and quote information under certain
      circumstances. Many brokers have decided not to trade “penny stock” because of
      the requirements of the penny stock rules and, as a result, the number of
      broker-dealers willing to act as market makers in such securities is limited.
      In
      the event that we remain subject to the “penny stock rules” for any significant
      period, there may develop an adverse impact on the market, if any, for our
      securities. Because our securities are subject to the “penny stock rules,”
investors


will
      find
      it more difficult to dispose of our securities. Further, for companies whose
      securities are traded in the Over-The-Counter Market, it is more difficult:
      (i)
      to obtain accurate quotations, (ii) to obtain coverage for significant news
      events because major wire services, such as the Dow Jones News Service,
      generally do not publish press releases about such companies, and (iii) to
      obtain needed capital.








9





**We
      do not intend to pay dividends on our common stock**





We
      have
      never paid dividends in the past and there are no
      plans for paying dividends in the foreseeable future. We intend to retain
      earnings, if any, to provide funds for the implementation of our new business
      plan.  We do not intend to declare or pay any dividends in the foreseeable
      future.  Therefore, there can be no assurance that holders of common stock
      will receive any additional cash, stock or other dividends on their shares
      of
      common stock until we have funds, which the Board of Directors determines,
      can
      be allocated to dividends.





**Risks
      related to doing business in China**





**Our
      business operations take place primarily in China. Because Chinese laws,
      regulations and policies are continually changing, our Chinese operations will
      face several risks summarized below.**





**Limitations
      on Chinese economic market reforms may discourage foreign investment in Chinese
      businesses** ******





The
      value
      of investments in Chinese businesses could be adversely affected by political,
      economic and social uncertainties in China. The economic reforms in China in
      recent years are regarded by China's central government as a way to introduce
      economic market forces into China. Given the overriding desire of the central
      government leadership to maintain stability in China amid rapid social and
      economic changes in the country, the economic market reforms of recent years
      could be slowed, or even reversed.





**Any
      change in policy by the Chinese government could adversely affect investments
      in
      Chinese businesses**





Changes
      in policy could result in imposition of restrictions on currency conversion,
      imports or the source of suppliers, as well as new laws affecting joint ventures
      and foreign-owned enterprises doing business in China. Although China has been
      pursuing economic reforms for the past two decades, events such as a change
      in
      leadership or social disruptions that may occur upon the proposed privatization
      of certain state-owned industries could significantly affect the government's
      ability to continue with its reform.


10








**We
      face economic risks in doing business in China** **





As
      a
      developing nation, China's economy is more volatile than that of developed
      Western industrial economies. It differs significantly from that of the U.S.
      or
      a Western European Country in such respects as structure, level of development,
      capital reinvestment, resource allocation and self-sufficiency. Only in recent
      years has the Chinese economy moved from what had been a command economy through
      the 1970s to one that during the 1990s encouraged substantial private economic
      activity. In 1993, the Constitution
      of China was amended to reinforce such economic reforms. The trends of the
      1990s
      indicate that future policies of the Chinese government will emphasize greater
      utilization of market forces. For example, in 1999 the Government announced
      plans to amend the Chinese Constitution to recognize private property, although
      private business will officially remain subordinated to the state-owned
      companies, which are the mainstay of the Chinese economy. However, there can
      be
      no assurance that, under some circumstances, the government's pursuit of
      economic reforms will not be restrained or curtailed. Actions by the central
      government of China could have a significant adverse effect on economic
      conditions in the country as a whole and on the economic prospects for our
      Chinese operations.





**The
      Chinese legal and judicial system may negatively impact foreign
      investors**





In
      1982,
      the National People's Congress amended the Constitution of China to authorize
      foreign investment and guarantee the "lawful rights and interests" of foreign
      investors in China. However, China's system of laws is not yet comprehensive.
      The legal and judicial systems in China are still rudimentary, and enforcement
      of existing laws is inconsistent. Many judges in China lack the depth of legal
      training and experience that would be expected of a judge in a more developed
      country. Because the Chinese judiciary is relatively inexperienced in enforcing
      the laws that do exist, anticipation of judicial decision-making is more
      uncertain than would be expected in a more developed country. It may be
      impossible to obtain swift and equitable enforcement of laws that do exist,
      or
      to obtain enforcement of the judgment of one court by a court of another
      jurisdiction. China's legal system is based on written statutes; a decision
      by
      one judge does not set a legal precedent that is required to be followed by
      judges in other cases. In addition, the interpretation of Chinese laws may
      be
      varied to reflect domestic political changes.





The
      promulgation of new laws, changes to existing laws and the pre-emption of local
      regulations by national laws may adversely affect foreign investors. However,
      the trend of legislation over the last 20 years has significantly enhanced
      the
      protection of foreign investment and allowed for more control by foreign parties
      of their investments in Chinese enterprises. There can be no assurance that
      a
      change in leadership, social or political disruption, or unforeseen
      circumstances affecting China's political, economic or social life, will not
      affect the Chinese government's ability to continue to support and pursue these
      reforms. Such a shift could have a material adverse effect on our business
      and
      prospects.





The
      practical effect of the People's Republic of China legal system on our business
      operations in China can be viewed from two separate but intertwined
      considerations. First, as a matter of substantive law, the Foreign Invested
      Enterprise laws provide significant protection from government interference.
      In
      addition, these laws guarantee the full enjoyment of the benefits of corporate
      Articles and contracts to Foreign Invested Enterprise participants. These laws,
      however, do impose standards concerning corporate formation and governance,
      which are not qualitatively different from the general corporation laws of
      the
      several states. Similarly, the People's Republic of China accounting laws
      mandate accounting practices, which are not consistent with U.S. Generally
      Accepted Accounting Principles. China’s accounting laws require that an annual
      "statutory audit" be performed in accordance with People's Republic of China
      accounting standards and that the books of account of Foreign Invested
      Enterprises are maintained in accordance with Chinese accounting laws. Article
      14 of the People's Republic of China Wholly Foreign-Owned Enterprise Law
      requires a Wholly Foreign-Owned Enterprise to submit certain periodic fiscal
      reports and statements to designated financial and tax authorities, at the
      risk
      of business license revocation. Second, while the enforcement of substantive
      rights may appear less clear than United States procedures, the Foreign Invested
      Enterprises and Wholly Foreign- Owned Enterprises are Chinese registered
      companies, which enjoy the same status as other Chinese registered companies
      in
      business-to-business dispute resolution. Generally, the Articles of Association
      provide that all business disputes pertaining to Foreign Invested Enterprises
      are to be resolved by the Arbitration Institute of the Stockholm Chamber of
      Commerce in Stockholm, Sweden applying Chinese substantive law. Any award
      rendered by this arbitration tribunal is, by the express terms of the respective
      Articles of Association, enforceable in accordance with the "United Nations
      Convention on the Recognition and Enforcement of Foreign Arbitral Awards
      (1958)." Therefore, as a practical matter, although no assurances can be given,
      the Chinese legal infrastructure, while different in operation from its United
      States counterpart, should not present any significant impediment to the
      operation of Foreign Invested Enterprises.











11











**Economic
      Reform Issues**





Although
      the Chinese government owns the majority of productive assets in China, in
      the
      past several years the government has implemented economic reform measures
      that
      emphasize decentralization and encourage private economic activity. Because
      these economic reform measures may be inconsistent or ineffectual, there are
      no
      assurances that:





-
            We
                will be able to capitalize on economic reforms;-
            The
                Chinese government will continue its pursuit of economic reform
                policies;-
            The
                economic policies, even if pursued, will be successful;-
            Economic
                policies will not be significantly altered from time to time;
                and-
            Business
                operations in China will not become subject to the risk of
                nationalization.





Since
      1979, the Chinese government has reformed its economic systems. Because many
      reforms are unprecedented or experimental, they are expected to be refined
      and
      improved. Other political, economic and social factors, such as political
      changes, changes in the rates of economic growth, unemployment or inflation,
      or
      in the disparities in per capita wealth between regions within China, could
      lead
      to further readjustment of the reform measures. This refining and readjustment
      process may negatively affect our operations.





Over
      the
      last few years, China's economy has registered a high growth rate. Recently,
      there have been indications that rates of inflation have increased. In response,
      the Chinese government recently has taken measures to curb this excessively
      expansive economy. These measures have included devaluations of the Chinese
      currency, the Renminbi (RMB), restrictions on the availability of domestic
      credit, reducing the purchasing capability of certain of its customers, and
      limited re-centralization of the approval process for purchases of some foreign
      products. These austerity measures alone may not succeed in slowing down the
      economy's excessive expansion or control inflation, and may result in severe
      dislocations in the Chinese economy. The Chinese government may adopt additional
      measures to further combat inflation, including the establishment of freezes
      or
      restraints on certain projects or markets.








12








To
      date
      reforms to China's economic system have not adversely impacted our operations
      and are not expected to adversely impact operations in the foreseeable future;
      however, there can be no assurance that the reforms to China's economic system
      will continue or that we will not be adversely affected by changes in China's
      political, economic, and social conditions and by changes in policies of the
      Chinese government, such as changes in laws and regulations, measures which
      may
      be introduced to control inflation, changes in the rate or method of taxation,
      imposition of additional restrictions on currency conversion and remittance
      abroad, and reduction in tariff protection and other import
      restrictions.





**Risk
      Factors Associated with Our Business**





**Non-performance
      by the suppliers may adversely affect the operations by delaying delivery or
      causing delivery failures, which may negatively affect demand, sales and
      profitability.**





OCIL
      distributes various types of products from the manufacturing
      suppliers. OCIL will be materially and adversely affected by the failure of
      the suppliers to perform as expected.  OCIL could experience delivery
      delays or failures caused by production issues or delivery of non-conforming
      products if its suppliers failed to perform, and OCIL also faces the risks
      in
      the event that any of its suppliers becomes insolvent or bankrupt. ****





**We
      Are Highly Dependent upon the Continued Services of the Executive Officers
      and
      the Loss of Key Personnel Could Affect the Ability to Successfully Grow Our
      Business.**





OCIL
      is
      highly dependent upon the services of its senior management team, particularly
      Cheung Kin Wai and Li Wei Qiu. The permanent loss for any of the key executives
      could have a material adverse effect upon the operating results. We may not
      be
      able to locate suitable replacements for our executives if their services were
      lost. We do not maintain key man life insurance on any of these
      individuals.




**With
      the markets being highly competitive, We may not be able to compete successfully**




There
      are
      many companies currently existing which directly compete with our existing
      business. Many of our competitors have substantially greater revenues and
      financial resources than we do. We may not be able to compete favorably and
      increased competition may substantially harm our business, business prospects
      and results of operations. If we are not successful in our target markets,
      our
      sales could decline, our margins could be negatively impacted and we could
      lose
      market share, any of which could materially harm our business, results of
      operations and profitability.




**We
      are susceptible to a material decrease in business if our customers decide
      not
      to utilize our services**




Our
      customers might utilize the services of a different distributor or they might
      or
      directly import the products themselves from China. If we were to lose one
      of
      our major customers our revenues will materially decrease. In such event, we
      must establish our own production facilities in China, to facilitate a vertical
      integration with production being part of our operation. There is no guarantee
      that we will be able to establish our own production facility and if we do
      there
      is no guarantee that we will be successful.





13





**Item
      7.** **Financial
      Statements**







HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)


AND
      SUBSIDIARIES








FINANCIAL
      STATEMENTS





DECEMBER
      31, 2006 AND 2005




















































14








HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)


AND
      SUBSIDIARIES








CONTENTS

















PAGEREPORT
                OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
            F-1CONSOLIDATED
                BALANCE SHEETS
            
            
            F-2CONSOLIDATED
                STATEMENTS OF OPERATIONS
            
            F-3CONSOLIDATED
                STATEMENT OF STOCKHOLDERS' EQUITY
            F-4CONSOLIDATED
                STATEMENTS OF CASH FLOWS
            
            F-5NOTES
                TO CONSOLIDATED FINANCIAL STATEMENTS
            F-6
                - F-14

















REPORT
      OF
      INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














To
      the
      Stockholders and Board of Directors


Home
      System Group (formerly Supreme Realty Investments, Inc.)


and
      Subsidiaries


Hong
      Kong








We
      have
      audited the accompanying consolidated balance sheets of Home System Group
      (formerly Supreme Realty Investments, Inc.) and Subsidiaries as of
      December 31, 2006 and 2005, and the related consolidated statements of
      operations, stockholders’ equity, and cash flows for the years then ended. These
      financial statements are the responsibility of the Company’s management. Our
      responsibility is to express an opinion on these financial statements based
      on
      our audits.





We
      conducted our audits in accordance with the standards of the Public Company
      Accounting Oversight Board (United States). Those standards require that we
      plan
      and perform the audit to obtain reasonable assurance about whether the financial
      statements are free of material misstatement. An audit includes examining,
      on a
      test basis, evidence supporting the amounts and disclosures in the financial
      statements. An audit also includes assessing the accounting principles used
      and
      significant estimates made by management, as well as evaluating the overall
      financial statement presentation. We believe that our audits provide a
      reasonable basis for our opinion.





In
      our
      opinion, the consolidated financial statements referred to above present fairly,
      in all material respects, the financial position of Home System Group (formerly
      Supreme Realty Investments, Inc.) and Subsidiaries as of December 31, 2006
      and
      2005, and the results of their operations and their cash flows for the years
      then ended in conformity with accounting principles generally accepted in the
      United States.








/s/
      MORISON COGEN LLP





Bala
      Cynwyd, Pennsylvania


March
      5,
      2007











F-1


HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)


AND
      SUBSIDIARIES


CONSOLIDATED
      BALANCE SHEETS


DECEMBER
      31, 2006 AND 2005














2006
            
            2005ASSETSCURRENT
                ASSETSCash
            
            $
            65,615
            
            $
            103,701Accounts
                receivable - Net of allowance for doubtfulaccounts
                of $58,012 and $-0-
            
            
            1,886,349
            
            
            3,962,986Trade
                deposits
            
            
            2,903,959
            
            
            2,208,079Due
                from directors
            
            
            7,629
            
            
            -Due
                from related party
            
            
            2,344,415
            
            
            -7,207,967
            
            
            6,274,766PROPERTY
                AND EQUIPMENT
            
            
            996
            
            
            -TOTAL
                ASSETS
            
            $
            7,208,963
            
            $
            6,274,766LIABILITIES
                AND STOCKHOLDERS' EQUITYCURRENT
                LIABILITIESBank
                loans
            
            $
            962,020
            
            $
            3,030,836Accounts
                payable and accrued expenses
            
            
            2,474,180
            
            
            1,578,677Due
                to directors
            
            
            8,624
            
            
            54,917TOTAL
                LIABILITIES
            
            
            3,444,824
            
            
            4,664,430STOCKHOLDERS'
                EQUITYCOMMON
                STOCK - $0.001 par value; 200,000,000 sharesauthorized,
                19,797,949 and 8,000,000 shares issuedand
                outstanding
            
            
            19,798
            
            
            8,000ADDITIONAL
                PAID-IN CAPITAL
            
            
            1,680,204
            
            
            (7,998
            )NOTE
                RECEIVABLE FOR STOCK ISSUANCE
            
            
            (900,000
            )
            
            -RETAINED
                EARNINGS
            
            
            2,964,137
            
            
            1,610,334TOTAL
                STOCKHOLDERS' EQUITY
            
            
            3,764,139
            
            
            1,610,336TOTAL
                LIABILITIES AND STOCKHOLDERS' EQUITY
            
            $
            7,208,963
            
            $
            6,274,766





See
      accompanying notes to consolidated financial statements.





F-2


HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)


AND
      SUBSIDIARIES


CONSOLIDATED
      STATEMENTS OF OPERATIONS


YEARS
      ENDED DECEMBER 31, 2006 AND 2005














2006
            
            2005NET
                SALES
            
            $
            26,391,044
            
            $
            11,130,194OPERATING
                EXPENSESCost
                of net sales
            
            
            23,736,261
            
            
            9,370,917General
                and administrative expenses
            
            
            992,379
            
            
            167,88724,728,640
            
            
            9,538,804INCOME
                FROM OPERATIONS
            
            
            1,662,404
            
            
            1,591,390OTHER
                INCOME (EXPENSE)Finance
                costs
            
            
            (313,784
            )
            
            (246,233
            )Interest
                income
            
            
            5,183
            
            
            621(308,601
            )
            
            (245,612
            )NET
                INCOME
            
            $
            1,353,803
            
            $
            1,345,778BASIC
                AND DILUTED EARNINGS PER SHARE
            
            $
            0.08
            
            $
            0.17BASIC
                AND DILUTED WEIGHTED AVERAGENUMBER
                OF SHARES
            
            
            16,047,950
            
            
            8,000,000








See
      accompanying notes to consolidated financial statements.





F-3


**HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)**


**AND
      SUBSIDIARIES**


**CONSOLIDATED
      STATEMENT OF STOCKHOLDERS’ EQUITY**


**YEARS
      ENDED DECEMBER 31, 2006 AND 2005**





Additional
            
            Note
                ReceviableNumber
            
            Common
            
            Paid-in
            
            for
                Stock
            
            Retainedof
                Shares
            
            Stock
            
            Capital
            
            Issuance
            
            Earnings
            
            TotalBALANCE
                AT JANUARY 1, 2005
            
            
            2,000
            
            $
            2
            
            $
            -
            
            $
            -
            
            $
            1,610,334
            
            $
            1,610,336Retroactive
                recapitalization
            
            
            7,998,000
            
            
            7,998
            
            
            (7,998
            )
            
            -
            
            
            -
            
            
            -BALANCE
                AT DECEMBER 31, 2005
            
            
            8,000,000
            
            
            8,000
            
            
            (7,998
            )
            
            -
            
            
            1,610,334
            
            
            1,610,336Issuance
                of common stock at merger and notereceivable
                acquired in merger
            
            
            6,797,949
            
            
            6,798
            
            
            993,202
            
            
            (900,000
            )
            
            -
            
            
            100,000Issuance
                of common stock for services
            
            
            5,000,000
            
            
            5,000
            
            
            695,000
            
            
            -
            
            
            -
            
            
            700,000Net
                income for the year ended December 31, 2006
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            1,353,803
            
            
            1,353,803BALANCE
                AT DECEMBER 31, 2006
            
            
            19,797,949
            
            $
            19,798
            
            $
            1,680,204
            
            $
            (900,000
            )
            $
            2,964,137
            
            $
            3,764,139








See
      accompanying notes to consolidated financial statements.





F-4


**HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)**


**AND
      SUBSIDIARIES**


**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**


**YEARS
      ENDED DECEMBER 31, 2006 AND 2005**











2006
            
            2005CASH
                FLOWS FROM OPERATING ACTIVITIESNet
                income
            
            $
            1,353,803
            
            $
            1,345,778Adjustments
                to reconcile net income to net cashprovided
                by (used in) operating activitiesDepreciation
            
            
            131
            
            
            -Common
                stock issued for services
            
            
            700,000
            
            
            -(Increase)
                decrease in assetsTrade
                deposits
            
            
            (3,040,295
            )
            
            (666,269
            )Accounts
                receivable
            
            
            2,076,637
            
            
            (2,262,800
            )Increase
                in liabilitiesAccounts
                payable and accrued expenses
            
            
            895,503
            
            
            1,243,641Net
                cash provided by (used in) operating activities
            
            
            1,985,779
            
            
            (339,650
            )CASH
                FLOWS FROM INVESTING ACTIVITIESCapital
                expenditures
            
            
            (1,127
            )
            
            -Cash
                acquired in merger
            
            
            100,000
            
            
            -Net
                cash provided by investing activities
            
            
            98,873
            
            
            -CASH
                FLOWS FROM FINANCING ACTIVITIESNet
                increase (decrease) in due to/from directors
            
            
            (53,922
            )
            
            63,589Proceeds
                from bank loans
            
            
            962,020
            
            
            13,401,892Repayment
                of bank loans
            
            
            (3,030,836
            )
            
            (13,022,754
            )Net
                cash provided by (used in) financing activities
            
            
            (2,122,738
            )
            
            442,727NET
                INCREASE (DECREASE) IN CASH
            
            
            (38,086
            )
            
            103,077CASH
                - BEGINNING OF PERIOD
            
            
            103,701
            
            
            624CASH
                - END OF PERIOD
            
            $
            65,615
            
            $
            103,701SUPPLEMENTAL
                DISCLOSURE OF CASH FLOWINFORMATIONCash
                paid during the period for:Interest
            
            $
            313,784
            
            $
            183,623Income
                taxes
            
            $
            -
            
            $
            -SUPPLEMENTAL
                DISCLOSURE OF NON-CASH INVESTINGAND
                FINANCING ACTIVITIES:Trade
                deposits were transferred to a related party.
            
            $
            2,344,415
            
            $
            -











See
      accompanying notes to consolidated financial statements.





F-5


**HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)**


**AND
      SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006**





**NOTE
      1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
      POLICIES**





Basis
      of Preparation





Home
      System Group, Inc. (“HSGI”) was incorporated with limited liability in The
      British Virgin Islands on February 28, 2003. HSGI, with a minimum capitalization
      of $2, was inactive until June 30, 2006 when HSGI acquired all the issued and
      outstanding stock of Oceanic International (HK) Limited (“Oceanic”). Oceanic is
      an operating company organized under the laws of Hong Kong. Since the ownership
      of HSGI and Oceanic were the same, the merger was accounted for as a transaction
      between entities under common control, whereby HSGI recognized the assets and
      liabilities transferred at their carrying amounts.





On
      August
      4, 2006, Supreme Realty Investments, Inc. (“Supreme”), a public shell company,
      acquired HSGI. Under the terms of the merger agreement, the stockholders of
      HSGI
      received 8,000,000 (post reverse stock split) shares of common stock of Supreme
      for 100% of HSGI’s outstanding common stock. Following the merger, the Company
      changed its name to Home System Group (“HSG”). Under accounting principles
      generally accepted in the United States, the share exchange is considered to
      be
      a capital transaction in substance, rather than a business combination. That
      is,
      the share exchange is equivalent to the issuance of stock by HSGI for the net
      monetary assets of Supreme, accompanied by a recapitalization, and is accounted
      for as a change in capital structure. Accordingly, the accounting for the share
      exchange will be identical to that resulting from a reverse acquisition, except
      no goodwill will be recorded. Under reverse takeover accounting, the post
      reverse acquisition comparative historical financial statements of the legal
      acquirer, Supreme, are those of the legal acquiree which are considered to
      be
      the accounting acquirer, HSGI. Shares and per share amounts stated have been
      adjusted to reflect the merger.





Principle
      of Consolidation





The
      accompanying consolidated financial statements include the accounts of Home
      System Group and its wholly-owned subsidiaries. All inter-company transactions
      have been eliminated in consolidation.





Nature
      of Business





Home
      System Group and Subsidiaries (the “Company”) distributes home appliance
      products; such as, grills, home use water pumps, blenders, electric fans,
      heaters, laser printers, and other electronic and environmentally-friendly
      products.





Estimates





The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States requires the use of estimates based
      on
      management’s knowledge and experience. Accordingly, actual results could differ
      from those estimates.





F-6


**HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)**


**AND
      SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006**








**NOTE
      1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Continued)**





Comprehensive
      Income





The
      Company follows the Statement of Financial Accounting Standard (“SFAS”) No. 130, *Reporting
      Comprehensive Income* .
      Comprehensive income is a more inclusive financial reporting methodology that
      includes disclosure of certain financial information that historically has
      not
      been recognized in the calculation of net income. Since the Company has no
      items
      of other comprehensive income, comprehensive income is equal to net income.





Fair
      Value of Financial Instruments





The
      fair
      value of financial instruments classified as current assets or liabilities,
      including cash, trade deposits, receivables, payables and due to director,
      approximates carrying value due to the short-term maturity of the instruments.
      The carrying value of the bank loans approximates fair value since the interest
      rate associated with the debt approximates the current market interest
      rate.





Concentration
      of Credit Risk





Certain
      financial instruments potentially subject the Company to concentrations of
      credit risk. These financial instruments consist primarily of cash and accounts
      receivable. The Company places its temporary cash investments with high credit
      quality financial institutions to limit its credit exposure. Concentrations
      of
      credit risk with respect to accounts receivable are limited since the Company
      performs ongoing credit evaluations of its customers’ financial condition and
      due to the generally short payment terms.





Accounts
      Receivable





In
      the
      normal course of business, the Company provides credit to its customers and
      evaluates the status of outstanding balances on a regular basis. As amounts
      become uncollectible, they are charged to an allowance for doubtful accounts
      or
      operations in the period when a determination of uncollectibility is made.
      The
      allowance for doubtful accounts is adjusted periodically based upon a review
      of
      the outstanding receivables.





F-7


**HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)**


**AND
      SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006**





**NOTE
      1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Continued)**





Revenue
      Recognition





In
      accordance with Securities and Exchange Commission (“SEC”) Staff Accounting
      Bulletin (“SAB”) No. 104, *Revenue
      Recognition* ,
      the
      Company recognizes revenue when persuasive evidence of a customer or distributor
      arrangement exists or acceptance occurs, receipt of goods by customer occurs,
      the price is fixed or determinable, and the sales revenues are considered
      collectible. Subject to these criteria, the Company generally recognizes revenue
      at the time product is shipped to the customer.





The
      Company follows Emerging Issues Task Force (“EITF”) No. 99-19, *Reporting
      Revenue as a Principal versus Net as an Agent.* Under
      the guidance of this EITF, the assessment of whether revenue should be reported
      gross with separate display of cost of sales to arrive at gross profit should
      be
      based on the following considerations: the Company acts as principal in the
      transaction, takes title to the products and has risk and rewards of ownership
      (such as the risk of loss for collection, delivery or returns). Based on EITF
      No. 99-19, the Company recognizes all revenue on a gross basis.





Earnings
      Per Share





The
      Company follows SFAS No. 128, *Earnings
      Per Share* ,
      resulting in the presentation of basic and diluted earnings per share. Because
      the Company had no outstanding common stock equivalents, the amounts reported
      for basic and dilutive earnings per share were the same.





Income
      Taxes





The
      Company accounts for income taxes under SFAS No. 109, *Accounting
      for Income Taxes* ,
      which
      requires an asset and liability approach to financial accounting and reporting
      for income taxes. Under the liability method, deferred income tax assets and
      liabilities are computed annually for temporary differences between the
      financial statements and tax bases of assets and liabilities that will result
      in
      taxable or deductible amounts in the future based on enacted tax laws and 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. Income tax expense
      is
      the tax payable or refundable for the period plus or minus the change during
      the
      period in deferred tax assets and liabilities.




Advertising
      Costs







Advertising
      costs are expensed as incurred.


F-8


**HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)**


**AND
      SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006**





**NOTE
      1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Continued)**




Shipping
      and Handling Fees and Costs




The
      Company follows Emerging Issues Task Force (“EITF”) No. 00-10, *Accounting
      for Shipping and Handling Fees and Costs* .
      The
      Company does not charge its customers for shipping and handling. The Company
      classifies shipping and handling costs as part of the cost of goods sold. For
      the periods ended December 31, 2006 and 2005, shipping and handling costs were
      $261,142 and $123,070.




Product
      Warranties




The
      manufacturers of the products that the Company sells extend product warranties;
      however, the Company does not offer its own warranty to its
      customers.





Foreign
      Currency Translation





The
      Company maintains its accounts in its functional currency which is the U.S.
      dollar. Gains and losses from foreign currency transactions such as those
      resulting from settlement of foreign receivables or payables are included in
      the
      statements of operations.





Recently
      Issued Accounting Pronouncements





In
      June
      2006, the Financial Accounting Standards Board (“FASB”) issued interpretation
      No. 48 (“FIN 48”), *Accounting
      for Uncertainty in Income Taxes* .
      FIN 48
      prescribes detailed guidance for the financial statement recognition,
      measurement and disclosure of uncertain tax positions recognized in an
      enterprise’s financial statements in accordance with FASB Statement No. 109, *Accounting
      for Income Taxes* .
      Tax
      positions must meet a more-likely-than-not recognition threshold at the
      effective date to be recognized upon the adoption of FIN 48 and in subsequent
      periods. FIN 48 will be effective for fiscal years beginning after December
      15,
      2006 and the provisions of FIN 48 will be applied to all tax positions under
      Statement No. 109 upon initial adoption. The cumulative effect of applying
      the
      provisions of this interpretation will be reported as an adjustment to the
      opening balance of retained earnings for that fiscal year. The Company does
      not
      believe that the adoption of FIN 48 will have a material impact on their
      consolidated financial statements.





In
      September 2006, the SEC issued Staff Accounting Bulletin No. 108 (“SAB No.
      108”). SAB No. 108 addresses the process and diversity in practice of
      quantifying financial statement misstatements resulting in the potential build
      up of improper amounts on the balance sheet. The Company is required to adopt
      the provisions of SAB No. 108 in fiscal 2006. The adoption of SAB No. 108 did
      not have a material impact on their consolidated financial
      statements.





F-9


**HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)**


**AND
      SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006**





**NOTE
      1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Continued)**





In
      September 2006, the FASB issued SFAS No. 157, *Fair
      Value Measurements* (“SFAS
      No. 157”). SFAS No. 157 establishes a framework for measuring fair value and
      expands disclosures about fair value measurements. The changes to current
      practice resulting from the application of this Statement relate to the
      definition of fair value, the methods used to measure fair value, and the
      expanded disclosures about fair value measurements. The Statement is effective
      for fiscal years beginning after November 15, 2007 and will become effective
      beginning with the first quarter of 2008. The Company has not yet determined
      the
      impact the adoption of SFAS No. 157 on their consolidated financial statements
      and footnote disclosures.




In
      February 2007, the FASB issued SFAS No. 159, *The
      Fair Value Option for Financial Assets and Financial
      Liabilities* .
      This
      Statement permits entities to choose to measure many financial instruments
      and
      certain other items at fair value that are not currently required to be measured
      at fair value. The objective is to improve financial reporting by providing
      entities with the opportunity to mitigate volatility in reported earnings caused
      by measuring related assets and liabilities differently without having to apply
      complex hedge accounting provisions. This statement also establishes
      presentation and disclosure requirements designed to facilitate comparisons
      between entities that choose different measurement attributes for similar types
      of assets and liabilities. This Statement is effective for financial statements
      issued for fiscal years beginning after November 15, 2007 and will become
      effective for the Company beginning with the first quarter of 2008. The Company
      has not yet determined the impact of the adoption of SFAS No. 159 on its
      financial statements and footnote disclosures.




**NOTE
      2 - TRADE DEPOSITS**





Amounts
      represent deposits held by suppliers to be applied against future purchases
      by
      the Company.





**NOTE
      3 - DUE FROM RELATED PARTY**




As
      of
      December 31, 2006, the Company has a due from Oceanic Well Profit Inc. (prior
      to
      merger) of $2,344,414.25USD. This amount was originally a prepaid expense by
      the
      Company in 2006 to the following suppliers: Zhangshan Food Import and Export
      Company, Zhangshan Guang Yu Import and Export Company, Zhangshan Yu Liang
      Trading Co, ZhangShan Tai Quan Import and Export Company. In September 2006,
      the
      Company terminated its business relation with those companies, and thus this
      amount was due to be returned to the Company. The Company instructed that these
      suppliers repay such amount to Oceanic Well Profit. There
      are
      no stated interest or repayment terms associat ed
      with
      this transferred amount.





During
      2005 Mr. Li Wei Qiu (CEO of the Company) loaned the Company $10,081.12 to pay
      for certain expenses incurred by the Company. During 2006 the Company repaid
      this amount and loaned Mr. Qui $7,629, which remained due as of December 31,
      2006. There were no stated interest or repayment terms. Mr. Qui repaid this
      amount to the Company in January 2007.


F-10








**NOTE
      4 - DUE TO DIRECTOR**





During
      2005 Mr. Kin Wai Cheung loaned the Company $43,556 to pay for certain expenses
      incurred by the Company. Since that date the Company has repaid all of the
      loan
      except for $8,624 which remained outstanding as of December 31, 2006. There
      were
      no stated interest or repayment terms.





**NOTE
      5 - BANK LOANS**





In
      January 2005 the Company entered into a new agreement with its existing bank
      under which the bank increased the Export Packing Loan credit line from
      $2,000,000 to $4,000,000 and maintained the Short Term Revolving Loan of
      Accounts Receivable Financing (“Short Term Revolving Loan”) of up to $2,000,000.
      The Short Term Revolving Loan is collateralized by accounts receivable of
      customers approved by the bank and expires on September 30, 2007. The loans
      bear
      interest at the Singapore Inter-Bank Offered Rate (“SIBOR”) plus 4%. The credit
      facilities are subject to recourse and are personally guaranteed by two
      stockholders of the Company.





The
      bank
      debt consists of the following as of December 31:





2006
            
            2005Short
                Term Export Packing Loans, unsecured with interest rates ranging
                between
                9% and 10% and mature in February 2007.
            
            $
            962,020
            
            $
            835,106Short
                Term Revolving Loans, collateralized by accounts receivable ($2,195,730
                at
                December 31, 2005) with recourse, interest rate 8.53% at December
                31,
                2005.
            
            
            -
            
            
            2,195,730Total
            
            $
            962,020
            
            $
            3,030,836














F-11


**HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)**


**AND
      SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006**





**NOTE
      6 - INCOME TAXES**





As
      discussed in Note 1, the Company utilizes the asset and liability method of
      accounting for income taxes in accordance with SFAS No. 109. The effective
      tax
      rates differ from the statutory rate primarily due to the Company’s historical
      corporate structure and foreign operations. No Hong Kong Profits Tax has been
      provided in the financial statements as the business of the Company is carried
      outside Hong Kong and there was no income derived from or arising in Hong Kong
      during the period. The reconciliation of the statutory federal rate of 35%
      to
      the Company’s income tax expense (benefit) is as follows:





2006
            
            2005Income
                tax expense at U.S. federal income tax rate
            
            $
            473,834
            
            $
            471,022Difference
                in foreign tax rate
            
            
            (200,335
            )
            
            (235,511
            )Tax
                effect of expenses not deductible for tax purposes
            
            
            4,370,231
            
            
            1,712,381Tax
                effect of income not taxable for tax purposes
            
            
            (4,619,340
            )
            
            (1,947,892
            )Valuation
                allowance
            
            
            (24,390
            )
            
            -Income
                tax expense
            
            $
            -
            
            $
            -Income
                tax benefit consists of the following:Current
                tax benefitFederal
            
            $
            -
            
            $
            -State
            
            
            -
            
            
            -Foreign
            
            
            -
            
            
            -$
            -
            
            $
            -Deferred
                tax benefitFederal
            
            $
            24,390
            
            $
            -State
            
            
            -
            
            
            -Foreign
            
            
            -
            
            
            -Valuation
                allowance
            
            
            (24,390
            )
            
            -$
            -
            
            $
            -The
                components of the deferred assets (liabilities) are asfollows:Net
                operating loss
            
            $
            24,390
            
            $
            -Other
            
            
            -
            
            
            -Valuation
                allowance
            
            
            (24,390
            )
            
            -$
            -
            
            $
            -














F-12


**HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)**


**AND
      SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006**





**NOTE
      6 - INCOME TAXES (Continued)**





The
      valuation allowance for deferred tax assets as of December 31, 2006 and 2005
      was
      $24,390 and $-0-. The change in the total valuation allowance for the years
      ended December 31, 2006 and 2005 was an increase of $24,390. In assessing the
      potential for realization of deferred tax assets, management considers whether
      it is more likely than not that all or some portion of the deferred tax assets
      will not be realized. The ultimate realization of deferred tax assets is
      dependent upon the generation of future taxable income during the periods in
      which the net operating losses and temporary differences become deductible.
      Management considered projected future taxable income and tax planning
      strategies in making this assessment. At December 31, 2006, the Company had
      net
      operating loss carryforwards for federal and state income tax purposes of
      approximately $70,000, which would be available to offset future taxable income,
      if any, through 2026. Based upon the limited operating history of the Company,
      management has fully reserved the deferred tax asset.





**NOTE
      7 - MAJOR SUPPLIER**





During
      2006 and 2005, the Company purchased 91% and 82% of it products from three
      suppliers and two suppliers. At December 31, 2006 and 2005, amounts due to
      those
      suppliers included in accounts payable were $1,665,092 and $1,573,549. This
      concentration makes the Company vulnerable to a near-term severe impact, should
      the relationships be terminated.





**NOTE
      8 -** **CUSTOMER
      CONCENTRATION** ****





The
      Company sells a substantial portion of its product to a limited number of
      customers. During the year ended December 31, 2006, sales to the Company’s three
      largest customers, based on net sales made to such customers, aggregated
      $22,986,144, or approximately 86% of total net sales, and sales to the Company’s
      largest customer represented approximately 37% of total net sales. At December
      31, 2006, amounts due from these customers were $1,785,400. This concentration
      makes the Company vulnerable to a near-term severe impact, should the
      relationships be terminated.





**NOTE
      9 - EQUITY**





On
      July
      24, 2006, the Board of Directors of the Company declared a 1:10 reverse split.
      The number of shares has been retroactively adjusted to reflect the reverse
      split.





On
      September 29, 2006, the Board of Directors of the Company authorized the
      establishment of the Home System Group 2006 Equity Incentive Plan (the “Plan”),
      whereby the Company can issue shares of its common stock to certain employees,
      consultants and directors. The Company reserved 5,000,000 shares of its common
      stock for issuance under the Plan.





On
      October 5, 2006, the Company issued 5,000,000 shares of its common stock under
      the Plan to eight consultants in lieu of payments due to the consultants of
      $700,000 for services rendered from January 2, 2006 through September 30,
      2006.





F-13


**HOME
      SYSTEM GROUP (formerly SUPREME REALTY INVESTMENTS, INC.)**


**AND
      SUBSIDIARIES**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006**





**NOTE
      10 - NOTE RECEIVABLE FOR STOCK ISSUANCE**





The
      amount represents a promissory note received on May 4, 2006 for the issuance
      of
      5,500,000 shares (post reverse stock split) of the Company’s common stock. The
      note receivable is reflected as a contra equity account since the proceeds
      have
      not been received as of the issuance of the financial statement. The payment
      of
      the promissory note is required when the registration statement covering the
      5,500,000 shares is declared effective by the Securities and Exchange
      Commission.





**NOTE
      11 - SUBSEQUENT EVENT**





On
      January 31, 2007, the Company completed the acquisition of Holy (HK) Limited,
      a
      Hong Kong holding company that owns 100% of Oceanic Well Profit, Inc., a
      manufacturer of gas grills. The Company issued 42,500,000 newly issued shares
      of
      the Company’s common stock and US$3,000,000 for all of the issued and
      outstanding shares of common stock of Holy (HK) Limited.













F-14


**Item
      8.** **Changes
      in and Disagreements with Accountants on Accounting and Financial
      Disclosure**





The
      Company filed a Form 8-K in March disclosing the current Board of Directors
      believed that the Company’s Annual Report on Form 10-KSB, and amended Annual
      Report on Form 10-KSB/A for the year ended December 31, 2005 were filed in
      error
      by the prior Board of Directors in that it prematurely included an audit report
      of Mr. George Stewart, and such reports were subsequently amended to include
      an
      audit report of independent accountants.





**Item
      8A.****Controls
      And Procedures**





**Evaluation
      of Disclosure Controls and Procedures**




As
      of
      December 31, 2006, the end of the period covered by this report, our Chief
      Executive Officer and our Chief Financial Officer reviewed and evaluated the
      effectiveness of the our disclosure controls and procedures (as defined in
      Exchange Act Rule 13a-15(e) and 15d-15(e)), which are designed to ensure that
      material information we must disclose in our report filed or submitted under
      the
      Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded,
      processed, summarized, and reported on a timely basis, and have concluded,
      based
      on that evaluation, that as of such date, our disclosure controls and procedures
      were effective to ensure that information required to be disclosed by us in
      reports that we file or submit under the Exchange Act is accumulated and
      communicated to our Chief Executive Officer and Chief Financial Officer as
      appropriate to allow timely decisions regarding required disclosure.





**Changes
      in Internal Control over Financial Reporting**




There
      was
      no change in our internal control over financial reporting that occurred during
      the fourth fiscal quarter of the fiscal year covered by this Annual Report
      on
      Form 10-KSB that has materially affected, or is reasonably likely to materially
      affect, our internal control over financial reporting.




**Item
      8A(T).****Controls and Procedures.**




Not
      Applicable.




**Item
      8B.** **Other
      Information**




There
      is
      no information required to be disclosed in a report on Form 8-K during the
      fourth quarter of the year covered by this Form 10-KSB but not
      reported.






15
















**PART
      III**






**Item
      9.****Directors,
      Executive Officers, Promoters, Control Persons and Corporate Governance
      Compliance with Section 16(a) of the Act**




The
      following table sets forth the name, age and position of each of our officers
      and directors as of March 21, 2007.





**NAME**
            **AGE**
            **POSITION**Weiqiu
                Li
            46
            CEO
                and ChairmanKin
                Wai Cheung
            46
            CFO
                and DirectorJing
                Liu
            36
            Secretary





All
      directors have a term of office expiring at the next annual general meeting,
      unless re-elected or earlier vacated in accordance with the bylaws. All officers
      have a term of office lasting until their removal or replacement by the Board
      of
      Directors.





In
      April
      2006 Thomas Elliot and Jean LeRoy resigned their respective positions with
      the
      Company.





**Weiqiu
      Li**





Mr.
      Weiqiu Li **** was
      appointed Chief Executive Officer of the Company on August
      17, 2006. Mr. Li, age 46, was Chairman of Oceanic International Company Limited,
      the Company's subsidiary, since 2003. Since 1998 Mr. Li has been the Chairman
      and Chief Executive Officer at Zhongshan City Wei He Electronics Manufacturing
      Company Limited. Concurrently, he served as Vice President for Zhong Shan West
      District Chamber of Commerce. From 1997 to 1985, Mr. Li has held the positions
      as Engineer and Plant Manager for Zhong Shan Harbor Fan Production Company,
      where he received number of awards for his excellent technical and management
      skills as well as awards for his product designs. Prior to that, he served
      Zhong
      Shan Harbor Boatyard for 5 years. Mr. Li received an Economic Management Major
      from Guangdong Radio & TV University, and has studied Automation Control
      with South China University of Technology from 1993 to 1995. With more than
      20
      years in the field, Mr. Li possesses experiences in product design, research
      and
      development, production, management, international trade negotiations discussion
      and business relations.





Mr.
      Li
      does not hold any directorships with reporting companies in the United States.
      There are no family relationships between Mr. Li and the directors, or executive
      officers, of the Company. During the last two years, there have been no
      transactions, or proposed transactions, to which the Company was or is to be
      a
      party, in which Mr. Li (or any member of his immediate family) had or is to
      have
      a direct or indirect material interest.




There
      are
      no employment agreements between the Company and Mr. Li





16








**Kin
      Wai Cheung**





Mr.
      Kin
      Wai Cheung was appointed Chief Financial Officer of the Company on August 17,
      2006. Mr. Cheung, age 46, was Chairman and Chief Executive Officer of Zhongshan
      City Kang Teng Trading Company Limited from 1998 to 2003. Mr. Cheung has been
      an
      Administration Manager at Oceanic International Company Limited, the Company's
      largest subsidiary, since 2003.





Mr.
      Cheung does not hold any directorships with reporting companies in the United
      States. There are no family relationships between Mr. Cheung and the directors,
      or executive officers, of the Company. During the last two years, there have
      been no transactions, or proposed transactions, to which the Company was or
      is
      to be a party, in which Mr. Cheung (or any member of his immediate family)
      had
      or is to have a direct or indirect material interest.





There
      are
      no employment agreements between the Company and Mr. Cheung.





**Jing
      Liu**





Jing
      Liu **** was
      appointed Secretary of the Company on August 17, 2006. Ms. Liu, age 36, is
      Secretary of Oceanic International Company Limited, the Company's largest
      subsidiary, since 2004. From 1991 to 2004, Ms. Liu held the position as Manager
      for Zhong Shan Hua Jie Steel Pipe Group, Ltd.’s International Business
      Department, and has assisted its subsidiaries in the area of financial
      management. Ms Liu received a Bachelor Degree in International Trade from
      Guangdong Foreign Language Institute.





Ms.
      Liu
      does not hold any directorships with reporting companies in the United States.
      There are no family relationships between Ms. Liu and the directors, or
      executive officers, of the Company. During the last two years, there have been
      no transactions, or proposed transactions, to which the Company was or is to
      be
      a party, in which Ms. Liu (or any member of her immediate family) had or is
      to
      have a direct or indirect material interest.




There
      are
      no employment agreements between the Company and Ms. Liu.




**Code
      of Ethics**




The
      Company has not adopted a code of ethics that applies to our principal executive
      officer, principal financial officer, principal accounting officer or
      controller, or persons performing similar functions. We are currently
      researching this matter and have not done so as we are only recently listed
      on
      US markets.




**Audit
      Committee**




The
      Company does not have a separately-designated standing audit committee
      established in accordance with section 3(a)(58)(A) of the
      Exchange Act, or a committee performing similar functions, rather the entire
      board of directors is acting as the audit committee as specified in section
      3(a)(58)(B) of the
      Exchange Act.










17








**Section
      16(a) Beneficial Ownership Reporting Compliance**





Section
      16(a) of the Securities Exchange Act of 1934 requires the Company’s directors,
      executive officers and persons who own beneficially more than ten percent of
      the
      Company’s common stock, to file reports of ownership and changes of ownership
      with the SEC. Based solely on the reports received by the company and on written
      representations from certain reporting persons during fiscal 2006, the Company
      believes that the directors, executive officers and greater than ten percent
      beneficial owners have complied with all applicable filing requirements, except
      for the late filing by Zujun Xu (former officer and director), Kin
      Wai
      Cheung (current
      officer and director), Wei Qiu Li (current officer and director), and the
      following ten percent holders: Bo Chen, Yujiao Xiong, Chaohui
      Wu ,
      Xiong
      Youming, and Pingxin
      Liu .




**Item
      10.****Executive
      Compensation**




The
      following table provides information about the compensation received during
      the
      last five fiscal years by the Company’s executive officers. Our CEO and CFO did
      not have a set salary for the year of 2006. We are exploring setting up a
      compensation committee to establish the Executive Officer’s compensation and
      incentive structure. We hope to implement such program in 2007. There are no
      agreements between the Company and any of its officers and directors relating
      to
      compensation or otherwise. Directors do not receive compensation for serving
      as
      directors of the Company.




***SUMMARY
      COMPENSATION TABLE***




**Name
                & Position**
            
            **Year**
            
            **Salary**
            
            **Bonus**
            
            **Stock
                Awards**
            
            **Option
                Awards**
            
            **Non-Equity
                Incentive Plan Compensation**
            
            **Nonqualified
                Deferred Compensation Earnings ($)**
            
            **All
                Other Compensation**
            
            **Total**Weiqiu
                Li, CEO (1)
            
            2006
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0
            
            02005
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0Kin
                Wai Cheung, CFO (2)
            
            2006
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0
            
            02005
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0Jing
                Liu, Secretary (3)
            
            
            2006
            
            $
            3,104
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            02005
            
            $
            1,811
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0Zujun
                Xu, Former CEO (5)
            
            
            2006
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            02005
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0Thomas
                Elliott, Former CEO (4)
            
            
            2006
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            02005
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            $
            32,395
            
            
            0Jean
                LeRoy, Former CFO (4)
            
            
            2006
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            
            
            02005
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            0
            
            
            
            
            0





(1)
            Mr.
                Weiqiu Li was appointed Chief Executive Officer of the Company on
                August
                17, 2006.


(2)
            Mr.
                Kin Wai Cheung was appointed Chief Financial Officer of the Company
                on
                August 17, 2006.


(3)
            Mrs.
                Jing Liu was appointed Secretary of the Company on August 17,
                2006.


(4)
            Both
                Mr. Elliot and Mr. LeRoy resigned their respective positions in April
                2006.


(5)
            On
                August 16, 2006 Zujun Xu resigned all corporate offices and as a
                Director
                of the Company.







18










**Equity
      Awards**




There
      were no unexercised options; stock that has not vested; and equity incentive
      plan awards for any executive officer outstanding as of the end of the Company’s
      last completed fiscal year.




**Compensation
      of Directors**




The
      Company does not compensate directors.




**Item
      11.** **Security
      Ownership of Certain Beneficial Owners and Management and Related Stockholder
      Matters**




As
      of
      March 21, 2007, 62,297,949 shares of common stock were outstanding. The
      following table sets forth, as of such date, information with respect to shares
      beneficially owned by:





●
            each
                person who is known by the Company to be the beneficial owner of
                more than
                5% of its outstanding shares of common stock;●
            each
                of the Company’s directors;





●
            each
                of the Company’s named executive officers; and●
            all
                of the Company’s directors and executive officers as a
                group.





Beneficial
      ownership has been determined in accordance with Rule 13d-3 of the Exchange
      Act.
      Under this rule, shares may be deemed to be beneficially owned by more than
      one
      person (if, for example, persons share the power to vote or the power to dispose
      of the shares). In addition, shares are deemed to be beneficially owned by
      a
      person if the person has the right to acquire shares (for example, upon exercise
      of an option) within 60 days of the date of this table. In computing the
      percentage ownership of any person, the amount of shares includes the amount
      of
      shares beneficially owned by the person by reason of these acquisition rights.
      As a result, the percentage of outstanding shares of any person does not
      necessarily reflect the person’s actual voting power.





To
      the
      Company’s knowledge, the persons named in the table have sole voting and
      investment power with respect to all shares of common stock shown as
      beneficially owned by them.





**Name&
                Address of Beneficial Owner**
            **No.
                of Shares Beneficially Owned**
            **%
                of Outstanding Shares (1)**Wei
                Qiu Li (CEO and Chairman) (3)
            **2,080,000**
            **3.3%**Kin
                Wai Cheung (CFO and director) (3)
            **1,600,000**
            **2.6%**Jing
                Liu (Secretary) (3)
            **0**
            **0**Yu
                Kaming (2)
            **42,500,000**
            **68.2%****All
                Officers and Directors as a Group (3 Persons)**
            **3,680,000**
            **5.9%**








(1) Calculated
      on the basis of 62,297,949 shares of common stock issued and outstanding as
      of
      March 21, 2007 except that shares of common stock underlying options and
      warrants exercisable within 60 days of the date hereof are deemed to be
      outstanding for purposes of calculating the beneficial ownership of securities
      of the holder of such options or warrants .


(2)
      Yu
      Kaming was the sole shareholder of Holy
      (HK)
      Limited, a Hong Kong holding company that owns 100% of Oceanic Well Profit,
      Inc., and received these shares in connection with the transaction between
      the
      Company and Holy (HK) Limited on January 31, 2007. The address of Mr. Yu Kaming
      is Av. Republica 74 A Andar A Ed., Hoi Keng Garden, Macau.


(3)
      Address is No. 264-298 Qingshan Road, Nanfeng Center, Suite 1905, Quanwan
      Xingjie, Hongkong.








19








**Item
      12.** **Certain
      Relationships and Related Party Transactions, and Director
      Independence**





**Related
      Party Transactions**





As
      of
      December 31, 2006, the Company has a due from Oceanic Well Profit Inc. (prior
      to
      merger) of $2,344,414.25USD. This amount was originally a prepaid expense by
      the
      Company in 2006 to the following suppliers: Zhangshan Food Import and Export
      Company, Zhangshan Guang Yu Import and Export Company, Zhangshan Yu Liang
      Trading Co, ZhangShan Tai Quan Import and Export Company. In September 2006,
      the
      Company terminated its business relation with those companies, and thus this
      amount was due to be returned to the Company. The Company instructed that these
      suppliers repay such amount to Oceanic Well Profit. There are no stated interest
      or repayment terms associated with this transferred amount. Except for the
      foregoing, there are no transactions since the beginning of the Company's last
      fiscal year, or any currently proposed transaction, in which the Company was
      or
      is to be a participant and the amount involved exceeds the lesser of $120,000
      or
      one percent of the average of the Company’s total assets at December 31 year-end
      for the last three completed fiscal years, and in which any related person
      had
      or will have a direct or indirect material interest.




**Director
      Independence**




Our
      two
      directors are not independent, as both are officers of the Company. Li Wei
      Qiu
      is our Chief Executive Officer and Kin Wai Cheung is our Chief Financial
      Officer.




**Item
      13.****Exhibits**




**a.
      Exhibits**




**Exhibit**
              **Number**
            **Exhibit
                Title**3.1
            Articles
                of Incorporation, (incorporated by reference from our Form S-4 A/12,
                filed
                August 18, 2004)3.2
            Articles
                of Amendment (incorporated by reference from our Form S-4 A/12, filed
                August 18, 2004)3.2
            Bylaws
                (incorporated by reference from our Form S-4 A/12 Registration Statement,
                filed August 18, 2004)31.1
            Certification
                of the Chief Executive Officer Pursuant to Rule 13a-14(a) under the
                Securities Exchange Act of 1934, as adopted pursuant to Section 302
                of the
                Sarbanes-Oxley Act of 2002.31.2
            Certification
                of the Chief Financial Officer Pursuant to Rule 13a-14(a) under the
                Securities Exchange Act of 1934, as adopted pursuant to Section 302
                of the
                Sarbanes-Oxley Act of 2002.


32.1
            Certification
                of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350,
                as
                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002.32.2
            Certification
                of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350,
                as
                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002.











20





**Item
      14.** **Principal
      Accountant Fees and Services**





**Fees
      Paid to Independent Public Accountants**





The
      following table presents fees for professional audit services rendered by George
      Stewart & Co., CPA’s. for the audit of the Company's annual financial
      statements for the years ended December 31, 2005 and December 31, 2006 and
      fees
      billed for other services rendered by George Stewart & Co., CPA’s. during
      those periods.





Fiscal
                2006
            
            Fiscal
                2005Audit
                fees (1)
            
            $
            63,000
            
            $
            50,000Audit
                Related Fees
            
            
            -0-
            
            
            -0-Tax
                Fees
            
            
            -0-
            
            
            -0-All
                Other Fees
            
            
            1,000
            
            
            -0-**TOTAL**
            
            **$**
            **64,000**
            
            **$**
            **50,000**





(1)
      Audit
      Fees consist of fees billed for professional services rendered for the audit
      of
      the Company's consolidated annual financial statements and review of the interim
      consolidated financial statements included in quarterly reports and services
      that are normally provided by our auditors in connection with statutory and
      regulatory filings or engagements.





**Policy
      on Pre-Approval of Audit and Non-Audit Services of Independent
      Auditor**





The
      Board
      of Directors has not adopted any pre-approval policies and approves all
      engagements with the Company’s auditors prior to performance of services by
      them.






**SIGNATURES**




In
      accordance with Section 13 or Section 15(d) of the Exchange Act, the registrant
      has duly caused this report to be signed on its behalf by the undersigned
      thereunto duly authorized.




**HOME
                SYSTEM GROUP**Date:
                March 29, 2007
              
              
              By:
            /s/
                  Li Wei QiuLi
                Wei QiuChief
                Executive Officer, DirectorDate:
                March 29, 2007
              
              
              By:
            /s/
                Kin Wai CheungKin
                Wai CheungChief
                Financial Officer, Director


21