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China HGS Reports First Quarter of Fiscal Year 2021 Results

China HGS Real Estate Inc.
2021-02-23 05:45 7665

HANZHONG, China, Feb. 23, 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

issued and outstanding December 31, 2020 and September 30, 2020

22,525


22,525

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.

 

Cision View original content:http://www.prnewswire.com/news-releases/china-hgs-reports-first-quarter-of-fiscal-year-2021-results-301232744.html

Source: China HGS Real Estate Inc.
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