China HGS Reports First Quarter of Fiscal Year 2018 Results - iCrowdNewswire
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Feb 12, 2018 7:49 AM ET

China HGS Reports First Quarter of Fiscal Year 2018 Results

Disclosure NewswireTM

iCrowdNewswire - Feb 12, 2018

HANZHONG, China,  — China HGS Real Estate Inc. (NASDAQ: HGSH) (“China HGS” or the “Company”), a leading regional real estate developer headquartered in Hanzhong City, Shaanxi ProvinceChina, today reported its financial results for the first quarter of fiscal 2018 ended December 31, 2017 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 2018 were approximately $14.4 million, an increase of 62.4% from approximately $8.9 million in the same quarter of fiscal 2017 due to more gross floor area sold during the current quarter.
  • Net income for the first quarter of fiscal 2018 totaled approximately $1.2 million, an increase of approximately 58.1% from the net income of approximately $0.8 million in the same period of last year.
  • Basic and diluted net earnings per share (“EPS”) attributable to shareholders for the first quarter of fiscal 2018 were $0.03, compared to $0.02 for the same quarter 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, 2017, 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.x[email protected]

 

 

CHINA HGS REAL ESTATE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

   

 December 31,

   

September 30,

   

2017

   

2017

ASSETS

             

Current assets:

             

Cash

 

$

2,694,175

   

$

2,109,043

Restricted cash

   

2,829,885

     

2,607,561

Cost and earnings in excess of billings

   

13,824,303

     

12,673,349

Real estate property development completed

   

74,949,264

     

79,233,948

Real estate property under development

   

85,651,923

     

87,126,402

Other current assets

   

1,324,113

     

1,529,698

Total current assets

   

181,273,663

     

185,280,001

Property, plant and equipment, net

   

822,449

     

825,833

Real estate property development completed, net of current portion

   

1,417,879

     

1,386,552

Security deposits

   

8,758,019

     

8,564,517

Real estate property under development, net of current portion

   

192,625,450

     

180,667,276

Due from local government for real estate property development completed

   

2,994,573

     

2,928,410

Total Assets

 

$

387,892,033

   

$

379,652,589

LIABILITIES AND STOCKHOLDERS’ EQUITY

             

Current liabilities:

             

Other loans

 

$

40,190,277

   

$

28,545,233

Accounts payable

   

22,844,020

     

24,047,980

Other payables

   

4,226,994

     

3,897,093

Construction deposits

   

2,010,536

     

1,966,115

Billings in excess of cost and earnings

   

4,779,693

     

4,247,477

Customer deposits

   

25,671,051

     

24,613,864

Shareholder loan

   

2,191,312

     

2,304,632

Accrued expenses

   

3,131,407

     

3,158,432

Taxes  payable

   

17,587,026

     

17,259,202

Total current liabilities

   

122,632,316

     

110,040,028

Deferred tax liabilities

   

322,918

     

170,950

Tax payable – long term

   

5,236,559

     

5,120,862

Customer deposits, net of current portion

   

2,366,937

     

2,314,641

Other long term loan payable, less current portion

   

89,151,908

     

98,797,447

Construction deposits, net of current portion

   

1,342,770

     

1,319,295

Total liabilities

   

221,053,408

     

217,763,223

Commitments and Contingencies

             

Stockholders’ equity

             

Common stock, $0.001 par value, 100,000,000 shares authorized, 45,050,000 shares issued and outstanding December 31, 2017 and September 30, 2017

   

45,050

     

45,050

Additional paid-in capital

   

129,868,072

     

129,853,172

Statutory surplus

   

9,142,899

     

9,142,899

Retained earnings

   

27,548,302

     

26,343,030

Accumulated other comprehensive income (loss)

   

234,302

     

(3,494,785)

Total stockholders’ equity

   

166,838,625

     

161,889,366

Total Liabilities and Stockholders’ Equity

 

$

387,892,033

   

$

379,652,589

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

CHINA HGS REAL ESTATE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

   

Three months ended December 31,

   

2017

   

2016

Real estate sales

 

$

14,447,571

   

$

8,897,854

Less: Sales tax

   

(25,216)

     

(112,602)

      Cost of real estate sales

   

(12,000,541)

     

(7,061,035)

Gross profit

   

2,421,814

     

1,724,217

Operating expenses

             

Selling and distribution expenses

   

316,742

     

146,234

General and administrative expenses

   

357,429

     

472,730

Total operating expenses

   

674,171

     

618,964

Operating income

   

1,747,643

     

1,105,253

Interest expense

   

(128,621)

     

(121,123)

Income before income taxes

   

1,619,022

     

984,130

Provision for income taxes

   

413,750

     

221,998

Net income

   

1,205,272

     

762,132

Other Comprehensive income (loss)

             

Foreign currency translation adjustment

   

3,729,087

     

(6,225,991)

Comprehensive income (loss)

 

$

4,934,359

   

$

(5,463,859)

Basic and diluted income per common share

             

Basic and diluted

 

$

0.03

   

$

0.02

Weighted average common shares outstanding

             

Basic and diluted

   

45,050,000

     

45,050,000

 

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,

   

2017

   

2016

Cash flows from operating activities

             

Net income

 

$

1,205,272

   

$

762,132

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

             

Deferred tax provision

   

145,714

     

Depreciation

   

412,078

     

15,962

Stock based compensation

   

14,900

     

14,900

Changes in assets and liabilities:

             

    Restricted cash

   

(160,771)

     

323,605

Cost and earnings in excess of billings

   

(850,656)

     

(2,049,151)

Real estate property development completed

   

5,976,747

     

7,061,036

Real estate property under development

   

(4,361,705)

     

(21,981,341)

Other current assets

   

236,266

     

(522,767)

Accounts payables

   

(1,719,070)

     

(1,287,068)

Other payables

   

237,946

     

(7,695)

Billings in excess of cost and earnings

   

429,205

     

(19,812)

Customer deposits

   

492,982

     

756,670

Construction deposits

   

(6,230)

     

(425,264)

Accrued expenses

   

(86,445)

     

(112,531)

Taxes payable

   

(61,119)

     

150,497

Net cash provided by (used in) operating activities

   

1,905,114

     

(17,320,827)

               

Cash flow from investing activities

             

    Purchases of fixed assets

   

(390,392)

     

Net cash used in investing activities

   

(390,392)

     

               

Cash flow from financing activities

             

Net repayments of shareholder loan

   

(122,484)

     

Repayments of bank loans

   

(863,438)

     

Proceeds from other loans

   

     

21,488,076

               

Net cash provided by (used in) financing activities

   

(985,922)

     

21,488,076

               

Effect of changes of foreign exchange rate on cash

   

56,332

     

(319,414)

Net increase in cash

   

585,132

     

3,847,835

Cash, beginning of period

   

2,109,043

     

6,401,237

Cash, end of period

 

$

2,694,175

   

$

10,249,072

Supplemental disclosures of cash flow information:

             

Interest paid

 

$

1,481,263

   

$

1,374,159

Income taxes paid

 

$

98,906

   

$

170,567

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

  

Contact Information:

Randy Xiong, President of Capital Market
China Phone: (86) 091-62622612
Email: [email protected]

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