omniture

China HGS Reports Full Year Financial Results for the Fiscal Year 2020

2021-01-14 05:45 8594

HANZHONG, China, Jan. 14, 2021 /PRNewswire/ -- January 13, 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 2020 ended September 30, 2020 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 2020

  • Total revenues for the fiscal 2020 were approximately $13.0 million, a decrease of approximately 67.5% from approximately $40.0 million in fiscal 2019.
  • Net income for the fiscal 2020 totaled approximately $1.0 million, a decrease of approximately 73.5% from the net income of approximately $3.7 million in fiscal 2019.
  • Basic and diluted net earnings per share attributable to shareholders for the fiscal 2020 were $0.04, compared to $0.16 for the fiscal 2019.

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.
CONSOLIDATED BALANCE SHEETS



September 30,



September 30,




2020



2019


ASSETS









Cash


$

457,699



$

263,139


Restricted cash



3,409,837




3,938,978


Contract assets



14,255,328




12,668,925


Real estate property development completed



94,671,258




101,933,030


Other assets



8,132,555




2,031,937


Property, plant and equipment, net



571,330




614,008


Security deposits



1,855,506




7,972,117


Real estate property under development



227,741,017




215,745,225


Due from local government for real estate property development completed



2,869,623




2,725,854











Total Assets


$

353,964,153



$

347,893,213











LIABILITIES AND STOCKHOLDERS' EQUITY









Construction loans


$

109,937,408



$

106,797,436


Accounts payables



25,415,352




27,368,510


Other payables



4,028,048




5,289,176


Construction deposits



3,202,730




3,042,273


Contract liabilities



1,847,685




1,907,828


Customer deposits



19,405,528




17,183,264


Shareholder loans



-




2,129,114


Accrued expenses



1,920,370




3,585,644


Taxes  payable



19,881,211




21,889,818


Total liabilities



185,638,332




189,193,063











Commitments and Contingencies









Stockholders' equity









Common stock, $0.001 par value, 50,000,000 shares authorized, 22,525,000* shares issued and outstanding September 30, 2020 and 2019



22,525




22,525


Additional paid-in capital*



129,930,330




129,930,330


Statutory surplus



10,458,395




10,360,251


Retained earnings



34,954,061




34,070,767


Accumulated other comprehensive loss



(7,039,490)




(15,683,723)


Total stockholders' equity



168,325,821




158,700,150











Total Liabilities and Stockholders' Equity


$

353,964,153



$

347,893,213


 

CHINA HGS REAL ESTATE INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEARS ENDED SEPTEMBER 30, 2020 and 2019



2020



2019


Real estate sales


$

12,979,227



$

39,964,556


Less: Sales tax



193,719




389,406


Impairment losses on real estate property development completed



2,703,031




-


Cost of real estate sales



9,369,820




30,253,511


Gross profit



712,657




9,321,639


Operating expenses









Selling and distribution expenses



580,639




494,646


General and administrative expenses



2,324,057




2,661,578


Total operating expenses



2,904,696




3,156,224


Operating income



(2,192,039)




6,165,415


Interest expense, net



(65,535)




(131,270)


Other income (expense), net



4,080,945




(309,930


Income before income taxes



1,823,371




5,724,215


Provision for income taxes



841,933




2,022,043


Net income



981,438




3,702,172


Other comprehensive loss









Foreign currency translation adjustment



8,644,233




(6,679,858)


Comprehensive income (loss)


$

9,625,671



$

(2,977,686)


Basic and diluted income per common share









Basic and diluted


$

0.04



$

0.16


Weighted average common shares outstanding









Basic and diluted*



22,525,000




22,525,000


 

CHINA HGS REAL ESTATE INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED SEPTEMBER 30, 2020 AND 2019



Common Stock



Additional



Statutory



Retained



Accumulated
Other
Comprehensive







Shares*



Amount



Paid-in Capital



Surplus



Earnings



Loss



Total


Balance at September 30, 2018



22,525,000



$

22,525



$

129,930,330



$

9,925,794



$

30,803,052



$

(9,003,865)



$

161,677,836


Appropriation of statutory reserve















434,457




(434,457)








-


Net income for the year



















3,702,172








3,702,172


Foreign currency translation adjustments























(6,679,858)




(6,679,858)


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


Appropriation of statutory reserve















-




-








-


Net income for the year



















981,438








981,438


Appropriation of statutory reserve















98,144




(98,144)








-


Foreign currency translation adjustments























8,644,233




8,644,233


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


 

CHINA HGS REAL ESTATE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
F
OR THE YEARS ENDED SEPTEMBER 30, 2020 and 2019



2020



2019


Cash flows from operating activities









Net income


$

981,438



$

3,702,172


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









Deferred tax provision



-




1,302,606


Depreciation



72,748




79,270


Impairment losses on real estate property development completed



2,703,031




-


Gain on settlement of shareholder loan and payables with suppliers



(4,998,762)




-


Changes in assets and liabilities:









Advances to vendors



-




20,395


Security deposits



6,335,525




-


Contract assets



(889,901)




(601,265)


Real estate property development completed



9,369,820




(45,818,735)


Real estate property under development



(7,511,989)




50,974,817


Other assets



(398,747)




(725,508)


Accounts payables



(1,498,176)




7,967,500


Other payables



23,918




609,156


Contract liabilities



(155,809)




(3,854,568)


Customer deposits



1,275,401




(4,261,166)


Construction deposits



-




8,538


Accrued expenses



(474,420)




700,527


Taxes payables



(2,616,813)




(1,166,158)


Net cash provided by operating activities



2,217,264




8,937,581











Cash flow from financing activities









Proceeds from construction loans



-




488,307


Repayment of construction loans



(2,415,924)




(11,825,666)


Repayment of shareholder loans



-




-


Net cash (used in) financing activities



(2,415,924)




(11,337,359)


Effect of changes of foreign exchange rate on cash



(135,921)




(173,682)


Net (decrease) in cash



(334,581)




(2,573,460)


Cash, restricted cash, beginning of year



4,202,117




6,775,577


Cash, restricted cash, end of year


$

3,867,536



$

4,202,117


Supplemental disclosures of cash flow information:









Interest paid


$

6,847,515



$

7,199,086


Income taxes paid


$

782,836



$

347,675











Representing









Cash


$

457,699



$

263,139


Restricted cash


$

3,409,837



$

3,938,978




$

3,867,536



$

4,202,117


Non-cash financing activities:









Settlement of shareholder loan and related accrued interest


$

(3,402,313)




-


Settlement of payables with suppliers



(3,415,572)




-


 

Cision View original content:http://www.prnewswire.com/news-releases/china-hgs-reports-full-year-financial-results-for-the-fiscal-year-2020-301207904.html

Source: China HGS Real Estate Inc.
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