ACROFAN

China HGS Reports First Quarter of Fiscal Year 2021 Results

Published : Tuesday, February 23, 2021, 5:45 am
ACROFAN=PRNewswire | mediainquiries@prnewswire.com | SNS

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


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