EX-99.1 2 tm2215487d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

Green Giant Reports Second Quarter Results for the Fiscal Year 2022

 

 

Green Giant Inc. (NASDAQ: GGE) (the “Company”), a leading regional real estate developer headquartered in Hanzhong City, Shaanxi Province, China, today filed its financial results for the Second quarter of fiscal 2022 ended March 31, 2022 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 Second Quarter of Fiscal 2022

 

1.Total revenues for the Second quarter of fiscal 2022 were approximately $4.3 million, decreased from approximately $18.3 million in the same period of last year.

 

2.Net income for the second quarter of fiscal 2022 totaled approximately $0.7 million, comparing to the net income of approximately $2.2 million in the same period of last year.

 

3.Basic and diluted net earnings per share attributable to shareholders for the second quarter of fiscal 2022 and 2021 were $0.01 and $0.10, respectively.

  

 

 

 

GREEN GIANT INC.

(FORMERLY CHINA HGS REAL ESTATE, INC.)

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

   March 31,   September 30, 
   2022   2021 
ASSETS  (Unaudited)     
Cash  $10,310,540   $170,001 
Restricted cash   3,280,647    3,295,188 
Contract assets   13,828,715    13,723,793 
Prepayment for energy equipment   18,300,000    — 
Real estate property development completed   85,808,677    88,145,841 
Other assets   4,327,607    8,358,925 
Property, plant and equipment, net   554,742    558,086 
Security deposits   1,987,309    1,955,202 
Real estate property under development   278,285,593    265,769,721 
Due from local governments for real estate property development completed   3,073,461    3,023,806 
           
Total Assets  $419,757,291   $385,000,563 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Construction loans  $121,600,813   $119,636,222 
Accounts payable   12,633,347    18,259,151 
Other payables   8,803,796    6,430,992 
Construction deposits   3,399,845    3,344,917 
Contract liabilities   1,743,802    1,886,075 
Customer deposits   23,067,842    19,803,917 
Accrued expenses   1,296,603    1,987,567 
Taxes payable   23,274,062    22,954,011 
Total liabilities   195,820,110    194,302,852 
           
Commitments and Contingencies          
Stockholders’ equity          
Common stock, $0.001 par value, 50,000,000 shares authorized, 40,464,929 and 25,617,807 shares issued and outstanding at March 31, 2022 and September 30, 2021, respectively   40,464    25,617 
Additional paid-in capital   165,457,371    136,535,303 
Statutory surplus   11,095,939    11,095,939 
Retained earnings   41,789,050    40,691,955 
Accumulated other comprehensive income   5,554,357    2,348,897 
Total stockholders’ equity   223,937,181    190,697,711 
           
Total Liabilities and Stockholders’ Equity  $419,757,291   $385,000,563 

 

 

 

 

GREEN GIANT INC.

(FORMERLY CHINA HGS REAL ESTATE, INC.)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

 

   Three months ended March 31,   Six months ended March 31, 
   2022   2021   2022   2021 
Real estate sales, net of sales tax   4,302,992    18,162,946    7,121,986    20,894,670 
Cost of real estate sales   (2,305,103)   (14,474,264)   (3,760,659)   (16,327,906)
Gross profit   1,997,889    3,688,682    3,361,327    4,566,764 
Operating expenses:                    
Selling and distribution expenses   29,871    16,821    249,658    96,166 
General and administrative expenses   650,426    543,334    1,282,353    849,259 
Total operating expenses   680,297    560,155    1,532,011    945,425 
Operating income   1,317,592    3,128,527    1,829,316    3,621,339 
Interest income, net   744    712    2,205    3,537 
Other (expense)   (251,201)   (166,571)   (251,201)   (272,428)
Income before income taxes   1,067,135    2,962,668    1,580,320    3,352,448 
Provision for income taxes   334,350    741,431    483,225    839,624 
Net income   732,785    2,221,237    1,097,095    2,512,824 
Other comprehensive income (loss)                    
Foreign currency translation adjustment   1,038,059    (737,431)   3,205,460    6,253,728 
Comprehensive income  $1,770,844   $1,483,806   $4,302,555   $8,766,552 
Basic and diluted income per common share:                    
Basic  $0.02   $0.10   $0.04   $0.11 
Diluted  $0.01   $0.10   $0.02   $0.11 
Weighted average common shares outstanding:                    
Basic   35,143,439    22,525,000    30,301,681    22,525,000 
Diluted   56,524,453    22,525,000    50,321,940    22,525,000 

 

 

 

 

GREEN GIANT INC.

(FORMERLY CHINA HGS REAL ESTATE, INC.)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

 

                       Accumulated     
                       Other     
   Common Stock   Additional   Statutory   Retained   Comprehensive     
   Shares   Amount   Paid-in Capital   Surplus   Earnings   Income (loss)   Total 
Balance at September 30, 2020   22,525,000   $22,525   $129,930,330   $10,458,395   $34,954,061   $(7,039,490)  $168,325,821 
Net income for the period   —    —    —    —    291,587    —    291,587 
Foreign currency translation adjustments   —    —    —    —    —    6,991,159    6,991,159 
Balance at December 31, 2020 - unaudited   22,525,000    22,525    129,930,330    10,458,395    35,245,648    (48,331)   175,608,567 
Net income for the period   —    —    —    —    2,221,237    —    2,221,237 
Foreign currency translation adjustments   —    —    —    —    —    (737,431)   (737,431)
Balance at March 31, 2021 - unaudited   22,525,000   $22,525   $129,930,330   $10,458,395   $37,466,885   $(785,762)  $177,092,373 
                                    
                                    
Balance at September 30, 2021   25,617,807   $25,617   $136,535,303   $11,095,939   $40,691,955   $2,348,897   $190,697,711 
Net income for the period   —    —    —    —    364,310    —    364,310 
Foreign currency translation adjustments   —    —    —    —    —    2,167,401    2,167,401 
Balance at March 31, 2022 - unaudited   25,617,807    25,617    136,535,303    11,095,939    41,056,265    4,516,298    193,229,422 
Private placements   14,847,122    14,847    28,922,068    —    —    —    28,936,915 
Net income for the period   —    —    —    —    732,785    —    732,785 
Foreign currency translation adjustments   —    —    —    —    —    1,038,059    1,038,059 
Balance at March 31, 2022 - unaudited   40,464,929   $40,464   $165,457,371   $11,095,939   $41,789,050   $5,554,357   $223,937,181 

 

 

 

 

 

GREEN GIANT INC.

(FORMERLY CHINA HGS REAL ESTATE, INC.)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

   Six months ended March 31, 
   2022   2021 
Cash flows from operating activities          
Net income  $1,097,095   $2,512,824 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:          
Depreciation   12,450    24,772 
Changes in operating assets and liabilities:          
Contract assets   119,872    (422,948)
Real estate property development completed   3,766,754    4,747,385 
Real estate property under development   (8,113,047)   (13,010,220)
Other current assets   4,309,818    (1,281,964)
Accounts payables   (5,897,638)   5,515,797 
Other payables   2,271,946    395,088 
Contract liabilities   (172,426)   (28,762)
Customer deposits   2,924,829    1,387,999 
Accrued expenses   (581,968)   — 
Taxes payables   269,649    109,454 
Net cash provided by (used in) operating activities   7,334    (50,575)
           
Cash flow from investing activities          
Prepayment for energy equipment   (18,461,700)   — 
Net cash used in investing activities   (18,461,700)   — 
           
Cash flow from financing activities          
Proceeds from private placements   28,936,915    — 
Net cash provided by financing activities   28,936,915    — 
           
Effect of changes of foreign exchange rate on cash and restricted cash   (356,551)   36,349 
Net increase (decrease) in cash and restricted cash   10,125,998    (14,226)
Cash and restricted cash, beginning of period   3,465,189    3,867,536 
Cash and restricted cash, end of period  $13,591,187   $3,853,310 
Supplemental disclosures of cash flow information:          
Interest paid  $—   $1,847,904 
Income taxes paid  $—   $135,462 
           
Reconciliation of net cash:          
Cash, end of period  $10,310,540   $555,576 
Restricted, end of period  $3,280,647   $3,297,734 
Total cash and restricted cash, end of period  $13,591,187   $3,853,310 
           
Cash, beginning of period  $170,001   $457,699 
Restricted, beginning of period  $3,295,188   $3,409,837 
Total cash and restricted cash, beginning of period  $3,465,189   $3,867,536 
           
Non-cash financing activities:          
Reclassification of interest payable to other liabilities  $3,444,532   $1,626,210 
Settlement of accounts payable with real estate property*  $569,299   $— 
Settlement of accounts payable and accounts receivable*  $2,758,731   $— 
Real estate sales for settlement in real estate property under development  $—   $(14,432,275)