HANZHONG, China, May 18, 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, announced its interim
financial results for the first half of fiscal 2021 ended
March 31, 2021.
Second Quarter Fiscal 2021 Highlights
- Total revenues for the second quarter of fiscal 2021 were
approximately $18.3 million,
representing an increase of 867.2% from approximately $1.9 million in the same quarter of fiscal 2020
due to more gross floor area sold during the current quarter.
- Net income for the second quarter of fiscal 2021 totaled
approximately $2.2 million,
significantly increased from net loss of approximately $0.6 million in the same period of last
year.
- Basic and diluted net income per share attributable to
shareholders for the second quarter of fiscal 2021 increased to
$0.10, compared to net loss per share
of $0.01 for the same quarter of the
last year.
First Six Months of Fiscal 2021 Highlights
- Total revenues for the first six months of fiscal 2021 were
approximately $21.0 million,
representing an increase of 401.5% from approximately $4.2 million in the same period of fiscal
2020.
- Net income for the first six months of fiscal 2021 totaled
approximately $2.5 million,
significantly increased from net loss of approximately $0.9 million in the same period of last
year.
- Basic and diluted net income per share attributable to
shareholders for the second quarter of fiscal 2021 increased to
$0.11, compared to net loss per share
of $0.02 for the same period 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
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
September 30,
|
|
|
|
2021
|
|
|
2020
|
|
ASSETS
|
|
|
(Unaudited)
|
|
|
|
|
|
Cash
|
|
$
|
555,576
|
|
|
$
|
457,699
|
|
Restricted
cash
|
|
|
3,297,734
|
|
|
|
3,409,837
|
|
Contract
assets
|
|
|
15,195,730
|
|
|
|
14,255,328
|
|
Real estate property
development completed
|
|
|
93,359,420
|
|
|
|
94,671,258
|
|
Other
assets
|
|
|
9,709,848
|
|
|
|
8,132,555
|
|
Property, plant and
equipment, net
|
|
|
567,292
|
|
|
|
571,330
|
|
Security
deposits
|
|
|
1,922,853
|
|
|
|
1,855,506
|
|
Real estate property
under development
|
|
|
251,151,767
|
|
|
|
227,741,017
|
|
Due from local
governments for real estate property development
completed
|
|
|
2,973,777
|
|
|
|
2,869,623
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
378,733,997
|
|
|
$
|
353,964,153
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Construction
loans
|
|
$
|
116,060,624
|
|
|
$
|
109,937,408
|
|
Accounts
payable
|
|
|
31,854,281
|
|
|
|
25,415,352
|
|
Other
payables
|
|
|
4,569,384
|
|
|
|
4,028,048
|
|
Construction
deposits
|
|
|
3,318,974
|
|
|
|
3,202,730
|
|
Contract
liabilities
|
|
|
1,885,982
|
|
|
|
1,847,685
|
|
Customer
deposits
|
|
|
21,498,027
|
|
|
|
19,405,528
|
|
Accrued
expenses
|
|
|
1,861,745
|
|
|
|
1,920,370
|
|
Taxes
payable
|
|
|
20,592,607
|
|
|
|
19,881,211
|
|
Total
liabilities
|
|
|
201,641,624
|
|
|
|
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 March 31, 2021 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
|
|
|
37,466,885
|
|
|
|
34,954,061
|
|
Accumulated other
comprehensive loss
|
|
|
(785,762)
|
|
|
|
(7,039,490)
|
|
Total
stockholders' equity
|
|
|
177,092,373
|
|
|
|
168,325,821
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
378,733,997
|
|
|
$
|
353,964,153
|
|
CHINA HGS REAL
ESTATE, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
Six months ended
March 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Real estate
sales
|
|
$
|
18,278,112
|
|
|
$
|
1,889,829
|
|
|
$
|
21,033,374
|
|
|
$
|
4,194,073
|
|
Less: Sales
tax
|
|
|
(115,166)
|
|
|
|
(27,048)
|
|
|
|
(138,704)
|
|
|
|
(66,281)
|
|
Cost of real
estate sales
|
|
|
(14,474,264)
|
|
|
|
(1,466,381)
|
|
|
|
(16,327,906)
|
|
|
|
(3,171,993)
|
|
Gross
profit
|
|
|
3,688,682
|
|
|
|
396,400
|
|
|
|
4,566,764
|
|
|
|
955,799
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
|
16,821
|
|
|
|
200,390
|
|
|
|
96,166
|
|
|
|
400,558
|
|
General and
administrative expenses
|
|
|
543,334
|
|
|
|
819,415
|
|
|
|
849,259
|
|
|
|
1,408,254
|
|
Total operating
expenses
|
|
|
560,155
|
|
|
|
1,019,805
|
|
|
|
945,425
|
|
|
|
1,808,812
|
|
Operating income
(loss)
|
|
|
3,128,527
|
|
|
|
(623,405)
|
|
|
|
3,621,339
|
|
|
|
(853,013)
|
|
Interest income
(expense), net
|
|
|
712
|
|
|
|
(15,586)
|
|
|
|
3,537
|
|
|
|
(32,839)
|
|
Other
expense
|
|
|
(166,571)
|
|
|
|
(96,729)
|
|
|
|
(272,428)
|
|
|
|
(96,729)
|
|
Income (loss)
before income taxes
|
|
|
2,962,668
|
|
|
|
(735,720)
|
|
|
|
3,352,448
|
|
|
|
(982,581)
|
|
Provision
(benefit) for income taxes
|
|
|
741,431
|
|
|
|
(111,699)
|
|
|
|
839,624
|
|
|
|
(101,179)
|
|
Net income
(loss)
|
|
|
2,221,237
|
|
|
|
(624,021)
|
|
|
|
2,512,824
|
|
|
|
(881,402)
|
|
Other
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(737,431)
|
|
|
|
(2,823,145)
|
|
|
|
6,253,728
|
|
|
|
1,557,717
|
|
Comprehensive
income (loss)
|
|
$
|
1,483,806
|
|
|
$
|
(3,447,166)
|
|
|
$
|
8,766,552
|
|
|
$
|
676,315
|
|
Basic and diluted
income (loss) per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
0.10
|
|
|
$
|
(0.01)
|
|
|
$
|
0.11
|
|
|
$
|
(0.02)
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
22,525,000
|
|
|
|
22,525,000
|
|
|
|
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 STOCKHOLDERS' EQUITY
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
|
Additional
|
|
|
Statutory
|
|
|
Retained
|
|
|
Accumulated
Other
Comprehensive
|
|
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Paid-in Capital
|
|
|
Surplus
|
|
|
Earnings
|
|
|
Income
(loss)
|
|
|
Total
|
|
Balance at
September 30, 2019
|
|
|
22,525,000
|
|
|
$
|
22,525
|
|
|
$
|
129,930,330
|
|
|
$
|
10,360,251
|
|
|
$
|
34,070,767
|
|
|
$
|
(15,683,723)
|
|
|
$
|
158,700150
|
|
Net loss for the
period
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
(257,381)
|
|
|
|
|
|
|
|
(257,381)
|
|
Foreign currency
translation adjustments
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,380,862
|
|
|
|
4,380,862
|
|
Balance at
December 31, 2019
|
|
|
22,525,000
|
|
|
|
22,525
|
|
|
|
129,930,330
|
|
|
|
10,360,251
|
|
|
|
33,189,365
|
|
|
|
(11,302,861)
|
|
|
|
162,823,631
|
|
Net loss for the
period
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
(624,021)
|
|
|
|
|
|
|
|
(624,021)
|
|
Foreign currency
translation adjustments
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,823,145)
|
|
|
|
(2,823,145)
|
|
Balance at
March 31, 2020
|
|
|
22,525,000
|
|
|
$
|
22,525
|
|
|
$
|
129,930,330
|
|
|
$
|
10,360,251
|
|
|
$
|
33,189,365
|
|
|
$
|
(14,126,006)
|
|
|
$
|
159,376,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
22,525,000
|
|
|
|
22,525
|
|
|
|
129,930,330
|
|
|
|
10,458,395
|
|
|
|
35,245,648
|
|
|
|
(48,331)
|
|
|
|
175,608,567
|
|
Net income for the
period
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,221,237
|
|
|
|
-
|
|
|
|
2,221,237
|
|
Foreign currency
translation
adjustments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(737,431)
|
|
|
|
(737,431)
|
|
Balance at
March 31, 2021
|
|
|
22,525,000
|
|
|
$
|
22,525
|
|
|
$
|
129,930,330
|
|
|
$
|
10,458,395
|
|
|
$
|
37,466,885
|
|
|
$
|
(785,762)
|
|
|
$
|
177,092,373
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
Six months ended
March 31,
|
|
|
|
2021
|
|
|
2020
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
2,512,824
|
|
|
$
|
(881,402)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
Deferred tax
provision (benefit)
|
|
|
-
|
|
|
|
(235,179)
|
|
Depreciation
|
|
|
24,772
|
|
|
|
37,710
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Contract
assets
|
|
|
(422,948)
|
|
|
|
651,289
|
|
Real estate property
development completed
|
|
|
4,747,385
|
|
|
|
2,937,724
|
|
Real estate property
under development
|
|
|
(13,010,220)
|
|
|
|
(2,835,288)
|
|
Other current
assets
|
|
|
(1,281,964)
|
|
|
|
(935,053)
|
|
Security
deposit
|
|
|
|
|
|
|
3,195,887
|
|
Accounts
payable
|
|
|
5,515,797
|
|
|
|
89,325
|
|
Other
payables
|
|
|
395,088
|
|
|
|
111,347
|
|
Contract
liabilities
|
|
|
(28,762)
|
|
|
|
(71,507)
|
|
Customer
deposits
|
|
|
1,387,999
|
|
|
|
2,349,028
|
|
Construction
deposits
|
|
|
|
|
|
|
(428)
|
|
Accrued
expenses
|
|
|
|
|
|
|
(675,478)
|
|
Taxes
payables
|
|
|
109,454
|
|
|
|
(1,379,060)
|
|
Net cash (used in)
provided by operating activities
|
|
|
(50,575)
|
|
|
|
2,358,915
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities
|
|
|
|
|
|
|
|
|
Repayments of
construction loans
|
|
|
-
|
|
|
|
(2,128,585)
|
|
Net cash used in
financing activities
|
|
|
-
|
|
|
|
(2,128,585)
|
|
|
|
|
|
|
|
|
|
|
Effect of changes
of foreign exchange rate on cash and restricted cash
|
|
|
36,349
|
|
|
|
103,801
|
|
Net (decrease)
increase in cash and restricted cash
|
|
|
(14,226)
|
|
|
|
334,131
|
|
Cash and
restricted cash, beginning of period
|
|
|
3,867,536
|
|
|
|
4,202,117
|
|
Cash and
restricted cash, end of period
|
|
$
|
3,853,310
|
|
|
$
|
4,536,248
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
1,847,904
|
|
|
$
|
3,416,592
|
|
Income taxes
paid
|
|
$
|
135,462
|
|
|
$
|
375,601
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
amounts on condensed consolidated balance sheets:
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
555,576
|
|
|
$
|
658,313
|
|
Restricted
|
|
$
|
3,297,734
|
|
|
$
|
3,877,935
|
|
Total cash and
restricted cash
|
|
$
|
3,853,310
|
|
|
$
|
4,536,248
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
1,626,210
|
|
|
$
|
-
|
|
Real estate sales for
settlements in real estate property under development
|
|
$
|
(14,432,275)
|
|
|
$
|
-
|
|
|
|
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-announces-first-six-months-of-fiscal-2021-financial-results-301293373.html
SOURCE China HGS Real Estate Inc.