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
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.
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.