omniture

China HGS Reports Full Year Financial Results for the Fiscal Year 2015

2015-12-18 20:00 1984

HANZHONG, China, Dec. 18, 2015 /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 filed its Annual Report on Form 10-K for the fiscal year 2015 ended September 30, 2015 with the U.S. Securities and Exchange Commission. An electronic copy of the Annual Report on Form 10-K can be accessed on the SEC's website at www.sec.gov.

Highlights for the Fiscal 2015

  • Total revenues for the fiscal 2015 were approximately $81.1 million, a decrease of approximately 35% from approximately $124.3million in fiscal 2014.
  • For the Company's long-term real estate development projects, the related revenue recognized from percentage of completion method was approximately $76.8 million, which accounted for 95% of total revenue in fiscal 2015 and decreased 23% from the revenue recognized from percentage completion method in fiscal 2014.
  • Net income for the fiscal 2015 totaled approximately $31.4 million, a decrease of approximately 3% from the net income of approximately $32.4 million in fiscal 2014.
  • Basic and diluted net earnings per share ("EPS") attributable to shareholders for the fiscal 2015 were $0.70, compared to $0.72 for the fiscal 2014.

"During the year, despite the overall slowing market and weakening economy in China, the Company has strived to manage its development and sales strategy and also to keep the costs down. I am pleased to see that our efforts have paid off. We were able to achieve a relatively high gross profit margin and maintain a relatively stable net income in the period," said Mr. Xiaojun Zhu, Chairman and Chief Executive Officer of China HGS.

"Looking forward to fiscal 2016, we expect some favorable factors to impact our future performance positively. First, the reform of residency registration policy newly announced by the central government would support continued urbanization. Secondly, a string of policies and measures successively introduced since last year to adjust and stimulate the real estate market, such as looser credit policy and more relaxed housing purchase restrictions, is beginning to take effect and is expected to drive the demand of first-time homebuyers as well as home upgraders. We remain cautiously optimistic about the prospect of the real estate property sector. As for regional strategy, the Company is confident to maintain its leading position and prominent market presence in the local region in the next few years," concluded Mr. Xiaojun Zhu.

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, 2015, 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.


CONSOLIDATED BALANCE SHEETS






September 30,




2015



2014


ASSETS


Current assets:







Cash


$

1,333,919



$

1,125,545



Restricted cash



1,715,268




1,589,887



Cost and earnings in excess of billings



11,825,036




12,332,396



Real estate property development completed



75,391,512




6,050,263



Real estate property under development



55,154,153




140,313,127



Other current assets



228,223




1,409,367



Total current assets



145,648,111




162,820,585



Property, plant and equipment, net



780,038




889,497



Real estate property development completed, net of current portion



2,140,271




2,572,215



Security deposits for land use rights



3,146,237




3,249,549



Real estate property under development, net of current portion



143,660,781




128,516,074



Due from local government for real estate property development completed



3,065,000




3,165,644



Total Assets


$

298,440,438



$

301,213,564



LIABILITIES AND STOCKHOLDERS' EQUITY


Current liabilities:







Bank loan


$

6,292,474



$

12,998,197


Other loans



5,674,239




15,290,753


Accounts payable



41,501,682




57,317,877


Other payables



12,676,362




13,777,853


Construction deposits



1,959,706




367,133


Billings in excess of cost and earnings



3,315,302




2,960,452


Customer deposits



17,387,969




31,100,334


Shareholder loan



1,810,000




5,465,743


Accrued expenses



4,855,891




3,801,567


Taxes payable



15,830,886




12,579,071


Total current liabilities



111,304,511




155,658,980











Deferred tax liabilities



4,711,161




2,992,459


Customer deposits, net of current portion



8,246,004




3,829,870


Other loans, less current portion



15,731,186




6,499,098


Construction deposits, net of current portion



972,432




1,004,364


Total liabilities



140,965,294




169,984,771


Commitments and Contingencies









Stockholders' equity









Common stock, $0.001 par value, 100,000,000 shares









authorized, 45,050,000 shares issued and outstanding


$

45,050



$

45,050


Additional paid-in capital



17,764,316




17,759,349


Statutory surplus



16,439,333




12,845,197


Retained earnings



119,668,198




91,834,708


Accumulated other comprehensive income



3,558,247




8,744,489


Total stockholders' equity



157,475,144




131,228,793


Total Liabilities and Stockholders' Equity


$

298,440,438



$

301,213,564


CHINA HGS REAL ESTATE INC.



CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME



FOR THE YEARS ENDED SEPTEMBER 30,








2015


2014



2013


Real estate sales


$

81,115,494


$

124,295,928



$

67,809,073


Less: Sales tax



5,194,616



7,547,052




4,244,644


Cost of real estate sales



39,258,557



77,938,256




37,284,088


Gross profit



36,662,321



38,810,620




26,280,341


Operating expenses












Selling and distribution expenses



917,344



923,879




915,217


General and administrative expenses



2,304,706



2,573,573




3,087,434


Total operating expenses



3,222,050



3,497,452




4,002,651


Operating income



33,440,271



35,313,168




22,277,690


Interest expense- net



(61,419)



(57,452)




(98,305)


Other income - net



-



-




10,398


Income before income taxes



33,378,852



35,255,716




22,189,783


Provision for income taxes



1,951,226



2,810,959




1,398,218


Net income



31,427,626



32,444,757




20,791,565


Other comprehensive income












Foreign currency translation adjustment



(5,186,242)



(365,128)




2,634,743


Comprehensive income


$

26,241,384


$

32,079,629



$

23,426,308


Basic and diluted income per common share












Basic


$

0.70


$

0.72



$

0.46


Diluted


$

0.70


$

0.72



$

0.46


Weighted average common shares outstanding












Basic



45,050,000



45,050,000




45,050,000


Diluted



45,052,252



45,124,233




45,124,474

















CHINA HGS REAL ESTATE INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

FOR THE YEARS ENDED SEPTEMBER 30, 2015, 2014 AND 2013



Common Stock



Additional

Paid-in Capital



Statutory

Surplus



Retained

Earnings



Accumulated Other

Comprehensive Income



Total

Shares



Amount

Balance at October 1, 2012



45,050,000




45,050




17,750,337




6,549,354




44,894,229




6,474,874




75,713,844

Stock-based Compensation











9,012
















9,012

Appropriation of statutory reserve















2,427,876




(2,427,876)








-

Net income for the year



-
















20,791,565








20,791,565

Foreign currency translation adjustments























2,634,743




2,634,743

Balance at September 30, 2013



45,050,000




45,050




17,759,349




8,977,230




63,257,918




9,109,617




99,149,164

Appropriation of statutory reserve















3,867,967




(3,867,967)








-

Net income for the year



-
















32,444,757








32,444,757

Foreign currency translation adjustments























(365,128)




(365,128)

Balance at September 30, 2014



45,050,000



$

45,050



$

17,759,349



$

12,845,197



$

91,834,708



$

8,744,489



$

131,228,793

Stock-based Compensation











4,967
















4,967

Appropriation of statutory reserve















3,594,136




(3,594,136)








-

Net income for the year



















31,427,626








31,427,626

Foreign currency translation adjustments























(5,186,242)




(5,186,242)

Balance at September 30, 2015



45,050,000



$

45,050



$

17,764,316



$

16,439,333



$

119,668,198



$

3,558,247



$

157,475,144































CHINA HGS REAL ESTATE INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED SEPTEMBER 30,




2015



2014


2013


Cash flows from operating activities









Net income


$

31,427,626


$

32,444,757



$

20,791,565


Adjustments to reconcile net income to net cash provided by (used in) operating activities:











Deferred tax provision



1,870,180



2,348,981




640,095


Depreciation



83,701



85,504




88,818


Stock based compensation



4,967



-




9,012














Changes in assets and liabilities:












Due from local government for real estate property development completed






(3,171,932)




-


Advances to vendors






109,025




2,494,790


Loans to outside parties






-




21,249


Security deposits for land use rights






-




20,005,071


Cost and earnings in excess of billings



118,861



(10,180,783)




(2,144,855)


Real estate property development completed



(71,332,340)



10,568,278




7,659,989


Real estate property under development



63,376,691



(125,009,367)




(76,766,598)


Other current assets



1,171,630



(1,044,153)




(188,464)


Accounts payables



(14,428,567)



34,926,405




18,299,774


Other payables



(684,063)



11,943,147




604,996


Billings in excess of cost and earnings



462,916



(2,138,352)




5,031,374


Customer deposits



(8,439,960)



15,478,439




(10,510,235)


Construction deposits



1,654,075



4,258




168,439


Accrued expenses



1,201,727



914,825




518,602


Taxes payable



3,765,165



5,997,914




2,114,271


Net cash provided by (used in) operating activities



10,252,609



(26,723,054)




(11,162,107)














Cash flow from financing activities












Restricted cash



(181,392)



(261,561)




(216,286)


Proceeds from other loans



27,670,998



15,321,123




-


Repayment of other loans



(20,865,164)



-






Proceeds from bank loan



-



8,140,008




16,046,213


Repayment of bank loan



(12,975,849)



(4,884,004)




-


Proceeds from shareholder loan



11,642,580



7,570,208




-


Repayment of shareholder loan



(15,292,038)



(3,907,204)




-


Net cash (used in) provided by financing activities



(10,000,865)



21,978,570




15,829,927














Effect of changes of foreign exchange rate on cash



(43,370)



(8,072)




105,595


Net increase (decrease) in cash



208,374



(4,752,556)




4,773,415


Cash, beginning of year



1,125,545



5,878,101




1,104,686


Cash, end of year


$

1,333,919


$

1,125,545



$

5,878,101














Supplemental disclosures of cash flow information:












Interest paid


$

1,840,535


$

1,500,121



$

55,839


Income taxes paid


$

144,742


$

339,613



$

780,908






























To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/china-hgs-reports-full-year-financial-results-for-the-fiscal-year-2015-300194581.html

Source: China HGS Real Estate Inc.
collection