China HGS Reports First Quarter of Fiscal Year 2021 Results
HANZHONG, China, Feb. 22, 2021 /PRNewswire/ -- China HGS Real Estate Inc. (NASDAQ: HGSH) ("China HGS" or the "Company"), a leading regional real estate developer headquartered in Hanzhong City, Shaanxi Province, China, today reported its financial results for the first quarter of fiscal 2021 ended December 31, 2020 with the U.S. Securities and Exchange Commission. An electronic copy of the quarterly report on Form 10-Q can be accessed on the SEC's website at www.sec.gov
Highlights for the quarter
-- Total revenues for the first quarter of fiscal 2021 were approximately
$2.8 million, an increase of 19.6% from approximately $2.3 million in
the same quarter of fiscal 2020 due to more gross floor area sold during
the current quarter.
-- Net income for the first quarter of fiscal 2021 totaled approximately
$0.3 million, significantly increased from net loss of approximately
$0.3 million in the same period of last year.
-- Basic and diluted net loss per share ("EPS") attributable to
shareholders for the first quarter of fiscal 2021 were $0.01, compared
to net loss per share of $0.01 for the same quarter of the last year.
Safe Harbor Statement
This press release contains forward-looking statements, which are subject to change. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All "forward-looking statements" relating to the business of China HGS Real Estate Inc., which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties which could cause actual results to differ. These factors include but are not limited to: the uncertain market for the Company's business, macroeconomic, technological, regulatory, or other factors affecting the profitability of real estate business; and other risks related to the Company's business and risks related to operating in China. Please refer to the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2020, for specific details on risk factors. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. The Company's actual results could differ materially from those contained in the forward-looking statements. The Company undertakes no obligation to revise or update its forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
About China HGS Real Estate, Inc.
China HGS Real Estate, Inc. (NASDAQ: HGSH), founded in 1995 and headquartered in Hanzhong City, Shaanxi Province, is a leading real estate developer in the region and holds the national grade I real estate qualification. The Company focuses on the development of high-rise, sub-high-rise residential buildings and multi-building apartment complexes in China's Tier 3 and Tier 4 cities and counties with rapidly growing populations driven by increased urbanization. The Company provides affordable housing with popular and modern designs to meet the needs of multiple buyer groups. The Company's development activity spans a range of services, including land acquisition, project planning, design management, construction management, sales and marketing, and property management. For further information about China HGS, please go to www.chinahgs.com.
Company contact:
Randy Xiong, President of Capital Market
China Phone: (86) 091-62622612
Email: randy.xiong@chinahgs.com
CHINA HGS REAL ESTATE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, September 30,
2020 2020
ASSETS (Unaudited)
Cash $
1,253,331 $
457,699
Restricted cash 3,423,862 3,409,837
Contract assets 15,370,808 14,255,328
Real estate property development completed 96,628,716 94,671,258
Other assets 9,102,909 8,132,555
Property, plant and equipment, net 582,060 571,330
Security deposits 1,930,750 1,855,506
Real estate property under development 239,926,178 227,741,017
Due from local governments for real estate property development completed 2,985,991 2,869,623
Total Assets $
371,204,605 $
353,964,153
LIABILITIES AND STOCKHOLDERS' EQUITY
Construction loans $
116,028,450 $
109,937,408
Accounts payables 26,333,101 25,415,352
Other payables 4,424,032 4,028,048
Construction deposits 3,332,605 3,202,730
Contract liabilities 1,917,343 1,847,685
Customer deposits 21,939,636 19,405,528
Accrued expenses 1,971,086 1,920,370
Taxes payable 19,649,785 19,881,211
Total liabilities 195,596,038 185,638,332
Commitments and Contingencies
Stockholders' equity
Common stock, $0.001 par value, 50,000,000 shares authorized, 22,525,000 shares 22,525 22,525
issued and outstanding December 31, 2020 and September 30, 2020
Additional paid-in capital 129,930,330 129,930,330
Statutory surplus 10,458,395 10,458,395
Retained earnings 35,245,648 34,954,061
Accumulated other comprehensive loss (48,331) (7,039,490)
Total stockholders' equity 175,608,567 168,325,821
Total Liabilities and Stockholders' Equity $
371,204,605 $
353,964,153
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
CHINA HGS REAL ESTATE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
(Unaudited)
Three months ended December 31,
2020 2019
Real estate sales $
2,755,262 $
2,304,244
Less: Sales tax (23,538) (39,233)
Cost of real estate sales (1,853,642) (1,705,612)
Gross profit 878,082 559,399
Operating expenses
Selling and distribution expenses 79,345 200,168
General and administrative expenses 305,925 588,839
Total operating expenses 385,270 789,007
Operating income (loss) 492,812 (229,608)
Interest income (expense), net 2,826 (17,253)
Other expense, net (105,858)
Income (loss) before income taxes 389,780 (246,861)
Provision for income taxes 98,193 10,520
Net income (loss) 291,587 (257,381)
Other Comprehensive income (loss)
Foreign currency translation
adjustment 6,991,159 4,380,862
Comprehensive income $
7,282,746 $
4,123,481
Basic and diluted income (loss) per
common share
Basic and diluted $
0.01 $
(0.01)
Weighted average common shares
outstanding
Basic and diluted 22,525,000 22,525,000
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
CHINA HGS REAL ESTATE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Common Stock Additional Statutory Retained Accumulated
Other
Comprehensive
Shares Amount Paid-in Capital Surplus Earnings Loss Total
Balance at September 30, 2019 22,525,000 $
22,525 $
129,930,330 $
10,360,251 $
34,070,767 $
(15,683,723) $
158,700,150
Net loss for the period (257,381) (257,381)
Foreign currency translation adjustments 4,380,862 4,380,862
Balance at December 31, 2019 (Unaudited) 22,525,000 $
22,525 $
129,930,330 $
10,360,251 $
33,813,386 $
(11,302,861) $
162,823,631
Balance at September 30, 2020 22,525,000 $
22,525 $
129,930,330 $
10,458,395 $
34,954,061 $
(7,039,490) $
168,325,821
Net income for the period 291,587 291,587
Foreign currency translation adjustments 6,991,159 6,991,159
Balance at December 31,2020 (Unaudited) 22,525,000 $
22,525 $
129,930,330 $
10,458,395 $
35,245,648 $
(48,331) $
175,608,567
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
CHINA HGS REAL ESTATE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended December 31,
2020 2019
Cash flows from operating activities
Net income (loss) $
291,587 $
(257,381)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Deferred tax benefit (56,480)
Depreciation 12,253 18,767
Changes in operating assets and liabilities:
Contract assets (529,410) 511,335
Advances to vendors (213,038)
Real estate property development completed 1,853,642 1,472,443
Real estate property under development (1,297,396) (961,873)
Other current assets (631,040) (488,722)
Security deposit 1,596,250
Accounts payables (111,208)
385,617
Other payables 229,180 (1,646)
Contract liabilities (5,191) (32,028)
Customer deposits 1,721,198 1,625,398
Construction deposits (426)
Accrued expenses (578,021)
Taxes payables (890,500) (534,574)
Net cash provided by operating activities 643,115 2,485,621
Cash flow from financing activities
Repayments of construction loans (2,118,584)
Net cash provided by (used in) financing activities (2,118,584)
Effect of changes of foreign exchange rate on cash and restricted cash 166,542 116,587
Net increase in cash and restricted cash 809,657 483,624
Cash and restricted cash, beginning of period 3,867,536 4,202,117
Cash and restricted cash, end of period $
4,677,193 $
4,685,741
Supplemental disclosures of cash flow information:
Interest paid $
136,674 $
1,743,380
Income taxes paid $
63,765 $
44,786
Representing:
Cash, end of period $
1,253,331 $
660,414
Restricted, end of period $
3,423,862 $
4,025,327
Total cash and restricted cash, end of period $
4,677,193 $
4,685,741
Cash, beginning of period 457,699 263,139
Restricted, beginning of period 3,409,837 3,938,978
Total cash and restricted cash, beginning of period 3,867,536 4,202,117
Non-cash financing activities:
Reclassification of interest payable to construction loan 1,608,606
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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SOURCE China HGS Real Estate Inc.
