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China HGS Reports First Quarter of Fiscal Year 2018 Results

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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.

  

Cision 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.

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