HANZHONG, China, Feb. 12, 2018 /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 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.xiong@chinahgs.com
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.
|
View original
content:http://www.prnewswire.com/news-releases/china-hgs-reports-first-quarter-of-fiscal-year-2018-results-300596840.html
SOURCE China HGS Real Estate Inc.