Exhibit 99.1

 

China HGS Reports First Quarter of Fiscal Year 2018 Results


HANZHONG, CHINA – February 12, 2018 – 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

 

lTotal 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.

 

lNet 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.

 

lBasic 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.

 

1 

 

 

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.

  

2 

 

 

  

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.

 

3 

 

View differences made from one to another to evaluate China Hgs Real Estate Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by China Hgs Real Estate Inc..

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Log in with your credentials

or    

Forgot your details?

Create Account