UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 16, 2022
GREEN GIANT INC.
(Exact Name of Registrant as Specified in Charter)
| Florida | 001-34864 | 33-0961490 | ||
| (State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
6 Xinghan Road, 19th Floor Hanzhong City Shaanxi Province, 723000 |
| (Address of Principal Executive Offices and Zip Code) |
Registrant’s telephone number, including area code: (86) 091-62622612
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, $0.001 par value | GGE | The NASDAQ Capital Market |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13d-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On May 16, 2022, Green Giant Inc. released its interim financial results for the quarter ended March 31, 2022. A copy of the interim financial results is filed herewith as Exhibit 99.1 to this Current Report and is incorporated herein by reference.
As provided in General Instruction B.2 of SEC Form 8-K, such information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and it shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or under the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such filing to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | Interim Financial Results for the Quarter Ended March 31, 2022 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: May 16, 2022 | Green Giant Inc. | |
| By: | /s/ Neng Chen | |
| Name: Neng Chen | ||
| Title: Chief Executive Officer and Chairman | ||
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 | ) | |||