China HGS Announces Record Fiscal Year 2009 Results
-- Fiscal year 2009 revenue climbs 65.0% to $28.5 million, year-over-year
-- Net income increases 83.7% to $11.1 million, year-over-year
HANZHONG,
Fiscal Year 2009 Highlights
-- Revenues increased 65.0% year-over-year to $28.5 million
-- Gross profit increased 65.4% to $13.4 million with gross margin of
47.0%
-- Operating income increased 81.3% to $11.4 million
-- Net income increased 83.7% to $11.1 million, or $0.28 per diluted share
"Our record revenue and net income growth during the year reflects our leading market position in Hanzhong and our growing recognition as a prominent real estate developer. During the year, our efficient pricing strategy and marketing efforts enhanced our market reputation driving rapid growth in sales of our completed residential units," commented Mr.
Fiscal Year 2009 Results
Revenues for fiscal year ended
Gross profit for the fiscal year ended
Total operating expenses for fiscal year ended
Operating income was
Interest expense for fiscal year ended
Net income for fiscal year ended
Financial Condition
As of
Recent Events
In
Business Outlook
The Company's major projects under development include Mingzhu Xinju in Hanzhong City and Yangzhou Pearl Garden in Yang County. During the quarter ended
"The recovery in the real estate market and sales pricing combined with strong fundamentals of the Hanzhong market indicate positive future growth opportunities for China HGS," said Mr.
Guidance for Fiscal 2009
China HGS expects revenue for first quarter of fiscal year 2010 ending
About China HGS Real Estate Inc.
China HGS Real Estate Inc., through its wholly-owned subsidiary, Shaanxi Guangsha Investment and Development Group Co., Ltd., specializes in real estate development in
Forward-looking Statements:
This press release contains certain statements that may include 'forward-looking statements'. All statements other than statements of historical fact included herein are 'forward-looking statements'. These forward looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
--Financial Tables Follow--
CHINA HGS REAL ESTATE INC.
(FORMERLY CHINA ARGO SCIENCES CORP.)
CONSOLIDATED BALANCE SHEETS
As of
September 30,
2009 2008
ASSETS
Current assets:
Cash & cash equivalents $820,783 $2,121,060
Restricted cash 412,373 596,258
Accounts receivable - net of allowance for
doubtful accounts -- 7,294
Loans to outside parties, net of allowance 1,762,022 210,037
Real estate property development completed 2,392,003 13,657,042
Real estate property under development 42,522,287 22,699,749
Other current assets 71,985 29,175
Total current assets 47,981,453 39,320,615
Property, plant and equipment, net 713,008 401,635
Total Assets $48,694,461 $39,722,250
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term loans $672,751 $1,312,891
Accounts payable 730,838 1,251,733
Other payables 1,021,147 1,072,600
Customer deposits 14,900,334 17,398,247
Accrued expenses 125,742 40,279
Taxes payable 1,380,694 339,009
Total current liabilities 18,831,506 21,414,759
Stockholders' equity
Common stock, $0.001 par value, 100,000,000
shares authorized, 45,050,000 shares and
39,000,000 shares issued and outstanding as
of September 30, 2009 and 2008,
respectively 45,050 39,000
Additional paid-in capital 17,632,348 127,682
Statutory surplus 2,330,259 2,023,641
Retained earnings 7,904,531 14,224,594
Accumulated other comprehensive income 1,950,767 1,892,575
Total stockholders' equity 29,862,955 18,307,491
Total Liabilities and Stockholders' Equity $48,694,461 $39,722,250
CHINA HGS REAL ESTATE INC.
(FORMERLY CHINA ARGO SCIENCES CORP.)
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED SEPTEMBER 30,
2009 2008
Real estate sale, net of sales tax of
$1,745,490 and $1,155,106, respectively $28,459,176 $17,249,539
Cost of real estate sales, exclusive of
depreciation 15,084,017 9,161,948
Gross profit 13,375,159 8,087,591
Operating expenses
Selling and distribution expense 353,907 261,030
General and administrative expense 1,618,926 1,537,524
Total operating expenses 1,972,833 1,798,554
Operating income 11,402,326 6,289,037
Other expenses
Interest expenses 121,372 92,347
Other expenses 309 53,442
Total other expenses 121,681 145,789
Income before income taxes 11,280,645 6,143,248
Provision for income taxes 223,095 123,517
Net income $11,057,550 $6,019,731
Other comprehensive income
Foreign currency translation adjustment $58,191 $1,287,479
Comprehensive income $11,115,741 $7,307,210
Basic and diluted income per common share
Basic $0.28 $0.15
Diluted $0.28 $0.15
Weighted average common shares outstanding
Basic 39,513,836 39,000,000
Diluted 39,513,836 39,000,000
CHINA HGS REAL ESTATE INC.
(FORMERLY CHINA ARGO SCIENCES CORP.)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30,
2009 2008
Cash flows from operating activities
Net income $11,057,550 $6,019,731
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation 66,589 35,348
Loss on disposal of fixed assets 309 42,191
Changes in assets and liabilities:
(Increase) decrease in -
Restricted cash 185,205 187,971
Accounts receivable 7,304 --
Loans to outside parties (1,549,723) (194,051)
Real estate property development
completed 11,287,430 (8,612,453)
Real estate property under
development (19,742,469) 4,412,656
Other current assets (42,686) (16,356)
Increase (decrease) in -
Accounts payables (523,516) (1,372,573)
Other payables (54,137) 526,568
Customer deposits (2,539,616) (5,867,984)
Accrued expenses 85,264 (70,190)
Taxes payable 1,039,661 317,074
Net cash used in operating
activities (722,835) (4,592,068)
Cash flow from investing activities
Purchase of fixed assets (376,898) (401,928)
Proceeds from disposal of fixed assets -- 114,674
Net cash used in investing
activities (376,898) (287,254)
Cash flow from financing activities
Proceeds from (repayment for)
shareholder loans (438,263) 421,905
Repayment of short-term loans (204,523) (70,317)
Capital contribution 438,722 --
Net cash provided by (used
in) financing activities (203,063) 351,588
Effect of changes of foreign exchange rate
on cash and cash equivalent 2,520 432,045
Net decrease in cash and cash equivalents (1,300,276) (4,095,689)
Cash and cash equivalents, beginning of
year 2,121,060 6,216,749
Cash and cash equivalents, end of year $820,783 $2,121,060
Supplemental disclosures of cash flow
information:
Interest paid $109,420 $96,895
Income taxes paid $14,002 $42,190
Non-cash financing activities:
Capital contribution converted from
dividend payable $5,483,508 $--
Capital contribution converted from
retained earnings $10,788,349 $--
Capital contribution converted from
surplus $799,137 $--
For more information, please contact:
Company Contact:
Mr. Ran Xiong, Deputy GM
Email: [email protected]
Tel: +86-916-2622612
Investor Relations Contact:
CCG Investor Relations
Crocker Coulson, President
Email: [email protected]
Tel: +1-646-213-1915 (NY office)
Elaine Ketchmere, Partner
Email: [email protected]
Tel: +1-310-954-1345 (LA office)
SOURCE China HGS Real Estate Inc.
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