HANZHONG, China, Jan. 13, 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
FOR 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)
|
|
|
|
-
|
|
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.