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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
are important to our success. Any unauthorized use of our brand, trademarks and other intellectual property rights could harm our competitive
advantages and business. Historically, China has not protected intellectual property rights to the same extent as the United States, and
infringement of intellectual property rights continues to pose a serious risk of doing business in China. Monitoring and preventing unauthorized
use is difficult. The measures we take to protect our intellectual property rights may not be adequate. Furthermore, the application of
laws governing intellectual property rights in China and abroad is uncertain and evolving, and could involve substantial risks to us.
If we are unable to adequately protect our brand, trademarks and other intellectual property rights, our reputation may be harmed and
our business may be adversely affected.
20
We may fail to obtain or may experience material
delays in obtaining necessary government approvals for any major property development, which will adversely affect our business.
The real estate industry is strictly regulated
by the PRC government. Property developers in China must abide by various laws and regulations, including implementation rules promulgated
by local governments to enforce these laws and regulations. Before commencing, and during the course of, development of a property project,
we need to apply for various licenses, permits, certificates
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
may fail to obtain or may experience material
delays in obtaining necessary government approvals for any major property development, which will adversely affect our business.
The real estate industry is strictly regulated
by the PRC government. Property developers in China must abide by various laws and regulations, including implementation rules promulgated
by local governments to enforce these laws and regulations. Before commencing, and during the course of, development of a property project,
we need to apply for various licenses, permits, certificates and approvals, including land use rights certificates, construction site
planning permits, construction work planning permits, construction permits, pre-sale permits and completion acceptance certificates. We
need to satisfy various requirements to obtain these certificates and permits. To date, we have not encountered serious delays or difficulties
in the process of applying for these certificates and permits, but we cannot guarantee that we will not encounter serious delays or difficulties
in the future. In the event that we fail to obtain the necessary governmental approvals for any of our major property projects, or a serious
delay occurs in the government’s examination and approval progress, we may not be able to maintain our development schedule and
our business and cash flows may be adversely affected.
We may forfeit land to the PRC government
if
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
difficulties
in the process of applying for these certificates and permits, but we cannot guarantee that we will not encounter serious delays or difficulties
in the future. In the event that we fail to obtain the necessary governmental approvals for any of our major property projects, or a serious
delay occurs in the government’s examination and approval progress, we may not be able to maintain our development schedule and
our business and cash flows may be adversely affected.
We may forfeit land to the PRC government
if we fail to comply with procedural requirements applicable to land grants from the government or the terms of the land use rights grant
contracts.
According to the relevant PRC regulations, if
we fail to develop a property project according to the terms of the land use rights grant contract, including those relating to the payment
of land premiums, specified use of the land and the time for commencement and completion of the property development, the PRC government
may issue a warning, may impose a penalty or may order us to forfeit the land. Specifically, under current PRC law, if we fail to commence
development within one year after the commencement date stipulated in the land use rights grant contract, the relevant PRC land bureau
may issue a warning notice to us and impose an
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
those relating to the payment
of land premiums, specified use of the land and the time for commencement and completion of the property development, the PRC government
may issue a warning, may impose a penalty or may order us to forfeit the land. Specifically, under current PRC law, if we fail to commence
development within one year after the commencement date stipulated in the land use rights grant contract, the relevant PRC land bureau
may issue a warning notice to us and impose an idle land fee on the land of up to 20% of the land premium. If we fail to commence development
within two years, the land will be subject to forfeiture to the PRC government, unless the delay in development is caused by government
actions or force majeure. Even if the commencement of the land development is compliant with the land use rights grant contract, if the
developed GFA on the land is less than one-third of the total GFA of the project or the total capital invested is less than one-fourth
of the total investment of the project and the suspension of the development of the land continues for more than one year without government
approval, the land will also be treated as idle land and be subject to penalty or forfeiture. We
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
ure. Even if the commencement of the land development is compliant with the land use rights grant contract, if the
developed GFA on the land is less than one-third of the total GFA of the project or the total capital invested is less than one-fourth
of the total investment of the project and the suspension of the development of the land continues for more than one year without government
approval, the land will also be treated as idle land and be subject to penalty or forfeiture. We cannot assure you that circumstances
leading to significant delays in our development schedule or forfeiture of land will not arise in the future. If we forfeit land, we will
not only lose the opportunity to develop the property projects on such land, but may also lose all past investments in such land, including
land premiums paid and development costs incurred.
Any non-compliant GFA of our uncompleted
and future property developments will be subject to governmental approval and additional payments.
The local government authorities inspect property
developments after their completion and issue the completion acceptance certificates if the developments are in compliance with the relevant
laws and regulations. If the total constructed GFA of a property development exceeds the GFA originally authorized in the relevant land
grant contracts or construction permit, or if the
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
such land, including
land premiums paid and development costs incurred.
Any non-compliant GFA of our uncompleted
and future property developments will be subject to governmental approval and additional payments.
The local government authorities inspect property
developments after their completion and issue the completion acceptance certificates if the developments are in compliance with the relevant
laws and regulations. If the total constructed GFA of a property development exceeds the GFA originally authorized in the relevant land
grant contracts or construction permit, or if the completed property contains built-up areas that do not conform with the plan authorized
by the construction permit, the property developer may be required to pay additional amounts or take corrective actions with respect to
such non-compliant GFA before a completion acceptance certificate can be issued to the property development.
Our failure to assist our customers in applying
for property ownership certificates in a timely manner may lead to compensatory liabilities to our customers.
We are required to meet various requirements within
90 days after delivery of property, or such other period contracted with our customers, in order for our customers to apply for their
property ownership certificates, including passing various governmental clearances, formalities and procedures. Under our sales contract,
we are liable for any delay in the submission of the required documents as a result
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
.
Our failure to assist our customers in applying
for property ownership certificates in a timely manner may lead to compensatory liabilities to our customers.
We are required to meet various requirements within
90 days after delivery of property, or such other period contracted with our customers, in order for our customers to apply for their
property ownership certificates, including passing various governmental clearances, formalities and procedures. Under our sales contract,
we are liable for any delay in the submission of the required documents as a result of our failure to meet such requirements, and are
required to compensate our customers for delays. In the case of serious delays on one or more property projects, we may be required to
pay significant compensation to our customers and our reputation may be adversely affected.
21
We are subject to potential environmental
liabilities.
We are subject to a variety of laws and regulations
concerning the protection of health and the environment. The particular environmental laws and regulations that apply to any given development
site vary significantly according to the site’s location and environmental conditions, the present and former uses of the site and
the nature of the adjoining properties. Environmental laws and conditions may result in delays, may cause us to incur substantial compliance
and other costs and can prohibit or severely restrict project
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
subject to potential environmental
liabilities.
We are subject to a variety of laws and regulations
concerning the protection of health and the environment. The particular environmental laws and regulations that apply to any given development
site vary significantly according to the site’s location and environmental conditions, the present and former uses of the site and
the nature of the adjoining properties. Environmental laws and conditions may result in delays, may cause us to incur substantial compliance
and other costs and can prohibit or severely restrict project development activity in environmentally-sensitive regions or areas. Although
the environmental investigations conducted by local environmental authorities have not revealed any environmental liabilities that we
believe would have a material adverse effect on our business, financial condition or results of operations to date, it is possible that
these investigations did not reveal all environmental liabilities and that there are material environmental liabilities of which we are
unaware. We cannot assure you that future environmental investigations will not reveal material environmental liabilities. Also, we cannot
assure you that the PRC government will not change the existing laws and regulations or impose additional or stricter laws or regulations,
the compliance with which may cause us to incur significant capital expenditures.
We need to improve our internal financial
reporting controls. If we are unable to establish appropriate internal
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
did not reveal all environmental liabilities and that there are material environmental liabilities of which we are
unaware. We cannot assure you that future environmental investigations will not reveal material environmental liabilities. Also, we cannot
assure you that the PRC government will not change the existing laws and regulations or impose additional or stricter laws or regulations,
the compliance with which may cause us to incur significant capital expenditures.
We need to improve our internal financial
reporting controls. If we are unable to establish appropriate internal financial reporting controls and procedures, it could cause
us to fail to meet our reporting obligations, subject us to regulatory scrutiny and sanction, cause investors to lose confidence in our
reported financial information and have a negative effect on the market price for shares of our common stock.
Effective internal controls are necessary for
us to provide reliable financial reports and effectively prevent fraud. We maintain a system of internal control over financial reporting,
which is defined as a process designed by, or under the supervision of, our principal executive officer and principal financial officer,
or persons performing similar functions, and effected by our board of directors, management and other personnel, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles.
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
controls are necessary for
us to provide reliable financial reports and effectively prevent fraud. We maintain a system of internal control over financial reporting,
which is defined as a process designed by, or under the supervision of, our principal executive officer and principal financial officer,
or persons performing similar functions, and effected by our board of directors, management and other personnel, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles.
We cannot assure you that we will not, in the
future, identify areas requiring improvement in our internal control over financial reporting. We cannot assure you that the measures
we will take to remediate any areas in need of improvement will be successful or that we will implement and maintain adequate controls
over our financial processes and reporting in the future as we continue our growth.
As
a public company, we are required to comply with the reporting obligations of the Exchange Act and Section 404 of the Sarbanes-Oxley
Act of 2013. If we fail to comply with the reporting obligations of the Exchange Act and Section 404 of the Sarbanes-Oxley Act or
if we fail to maintain adequate internal controls over financial reporting, our business, results
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
adequate controls
over our financial processes and reporting in the future as we continue our growth.
As
a public company, we are required to comply with the reporting obligations of the Exchange Act and Section 404 of the Sarbanes-Oxley
Act of 2013. If we fail to comply with the reporting obligations of the Exchange Act and Section 404 of the Sarbanes-Oxley Act or
if we fail to maintain adequate internal controls over financial reporting, our business, results of operations and financial condition
could be materially adversely affected.
As a public company, we are required to comply
with the periodic reporting obligations of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including
preparing annual reports and quarterly reports. Our failure to prepare and disclose this information in a timely manner could subject
us to penalties under U.S. federal securities laws, expose us to lawsuits and restrict our ability to access financing. In addition, we
are required under applicable law and regulations to design and implement internal controls over financial reporting, and evaluate our
existing internal controls with respect to the standards adopted by the U.S. Public Company Accounting Oversight Board.
Green Giant Inc. assessed its internal control over
financial reporting and still has significant and material
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
Our failure to prepare and disclose this information in a timely manner could subject
us to penalties under U.S. federal securities laws, expose us to lawsuits and restrict our ability to access financing. In addition, we
are required under applicable law and regulations to design and implement internal controls over financial reporting, and evaluate our
existing internal controls with respect to the standards adopted by the U.S. Public Company Accounting Oversight Board.
Green Giant Inc. assessed its internal control over
financial reporting and still has significant and material deficiencies as of September 30, 2022. To remediate the material weaknesses
described above and to prevent similar deficiencies in the future, we are currently evaluating additional controls and procedures, which
may include: (i) provide more U.S. GAAP knowledge and SEC reporting requirement training for the accounting department and establish formal
policies and procedures for an internal audit function; and (ii) implementation of an ongoing initiative and training in the Company to
ensure the importance of internal controls and compliance with established policies and procedures are fully understood throughout the
organization and plan to provide continuous U.S. GAAP knowledge training to relevant employees involved to ensure the performance of and
compliance with those procedures and policies. Any actions we have taken or may take to remediate
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
SEC reporting requirement training for the accounting department and establish formal
policies and procedures for an internal audit function; and (ii) implementation of an ongoing initiative and training in the Company to
ensure the importance of internal controls and compliance with established policies and procedures are fully understood throughout the
organization and plan to provide continuous U.S. GAAP knowledge training to relevant employees involved to ensure the performance of and
compliance with those procedures and policies. Any actions we have taken or may take to remediate these material weaknesses are subject
to continued management review supported by testing, as well as oversight by the Audit Committee of our Board of Directors. We cannot
assure you that these material weaknesses will not occur in the future and that we will be able to remediate such weaknesses in a timely
manner, which could impair our ability to accurately and timely report our financial position, results of operations or cash flows. The
management is committed to improving the internal controls over financial reporting and will undertake the consistent improvements or
enhancements on an ongoing basis. However, we cannot assure you that our current remediation plan can resolve all the significant deficiencies
and material weaknesses in the internal control over financial reporting. As a result, we may be required to implement further remedial
me
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
a timely
manner, which could impair our ability to accurately and timely report our financial position, results of operations or cash flows. The
management is committed to improving the internal controls over financial reporting and will undertake the consistent improvements or
enhancements on an ongoing basis. However, we cannot assure you that our current remediation plan can resolve all the significant deficiencies
and material weaknesses in the internal control over financial reporting. As a result, we may be required to implement further remedial
measures and to design enhanced processes and controls to address issues identified through future reviews. This could result in significant
delays and costs to us and require us to divert substantial resources, including management time, from other activities.
22
If we do not fully remediate the material weaknesses
identified by management or fail to maintain the adequacy of our internal controls in the future, we may not be able to ensure that we
can conclude on an ongoing basis that we have effective internal controls over financial reporting in accordance with the Sarbanes-Oxley
Act. Moreover, effective internal controls are necessary for us to produce reliable financial reports and are important to help prevent
fraud. As a result, any failure to satisfy the requirements of Section 404 on a timely basis could
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
identified by management or fail to maintain the adequacy of our internal controls in the future, we may not be able to ensure that we
can conclude on an ongoing basis that we have effective internal controls over financial reporting in accordance with the Sarbanes-Oxley
Act. Moreover, effective internal controls are necessary for us to produce reliable financial reports and are important to help prevent
fraud. As a result, any failure to satisfy the requirements of Section 404 on a timely basis could result in the loss of investor
confidence in the reliability of our financial statements, which in turn could harm our business and negatively impact the trading price
of our common stock.
We do not have business insurance coverage.
Any future business liability, disruption or litigation we experience might divert management focus from our business and could significantly
impact our financial results.
Availability of business insurance products and
coverage in China is limited, and most such products are expensive in relation to the coverage offered. We have determined that the risks
of disruption, cost of such insurance and the difficulties associated with acquiring such insurances on commercially reasonable terms
make it impractical for us to maintain such insurance. As a result, we do not have any business liability, disruption or litigation insurance
coverage for our operations in
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
focus from our business and could significantly
impact our financial results.
Availability of business insurance products and
coverage in China is limited, and most such products are expensive in relation to the coverage offered. We have determined that the risks
of disruption, cost of such insurance and the difficulties associated with acquiring such insurances on commercially reasonable terms
make it impractical for us to maintain such insurance. As a result, we do not have any business liability, disruption or litigation insurance
coverage for our operations in China. Accordingly, a business disruption, litigation or natural disaster may result in substantial costs
and divert management’s attention from our business, which would have an adverse effect on our results of operations and financial
condition.
The PRC government may adopt further restrictive
measures to slow the increase in prices of real property and real property development.
Along with the economic growth in China, investments
in the property sectors have increased significantly in the past few years. In response to concerns over the scale of the increase in
property investments, the PRC government has introduced policies to curtail property development. We believe those regulations, among
others, significantly affect the property industry in China.
These restrictive regulations and measures could
increase our operating costs in adapting to these regulations and measures, limit
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
the increase in prices of real property and real property development.
Along with the economic growth in China, investments
in the property sectors have increased significantly in the past few years. In response to concerns over the scale of the increase in
property investments, the PRC government has introduced policies to curtail property development. We believe those regulations, among
others, significantly affect the property industry in China.
These restrictive regulations and measures could
increase our operating costs in adapting to these regulations and measures, limit our access to capital resources or even restrict our
business operations. We cannot be certain that the PRC government will not issue additional and more stringent regulations or measures,
which could further slowdown property development in China and adversely affect our business and prospects.
We are heavily dependent on the performance
of the residential property market in China, which is at a relatively early development stage.
The residential property industry in the PRC is
still in a relatively early stage of development. Although demand for residential property in the PRC has been growing rapidly in recent
years, such growth is often coupled with volatility in market conditions and fluctuation in property prices. It is extremely difficult
to predict how much and when demand will develop, as many social, political, economic, legal and other factors,
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
of the residential property market in China, which is at a relatively early development stage.
The residential property industry in the PRC is
still in a relatively early stage of development. Although demand for residential property in the PRC has been growing rapidly in recent
years, such growth is often coupled with volatility in market conditions and fluctuation in property prices. It is extremely difficult
to predict how much and when demand will develop, as many social, political, economic, legal and other factors, most of which are beyond
our control, may affect the development of the market. The level of uncertainty is increased by the limited availability of accurate financial
and market information as well as the overall low level of transparency in the PRC, especially in Tier 3 and 4 cities which have lagged
in progress in these aspects when compared to Tier 1 cities.
The lack of a liquid secondary market for residential
property may discourage investors from acquiring new properties. The limited amount of property mortgage financing available to PRC individuals
may further inhibit demand for residential developments.
23
We face intense competition from other real
estate developers.
The property industry in the PRC is highly competitive.
In the Tier 3 and Tier 4 cities we focus on, local and regional
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
cities which have lagged
in progress in these aspects when compared to Tier 1 cities.
The lack of a liquid secondary market for residential
property may discourage investors from acquiring new properties. The limited amount of property mortgage financing available to PRC individuals
may further inhibit demand for residential developments.
23
We face intense competition from other real
estate developers.
The property industry in the PRC is highly competitive.
In the Tier 3 and Tier 4 cities we focus on, local and regional property developers are our major competitors, and an increasing number
of large state-owned and private national property developers have started entering these markets. Many of our competitors, especially
the state-owned and private national property developers, are well capitalized and have greater financial, marketing and other resources
than we have. Some also have larger land banks, greater economies of scale, broader name recognition, a longer track record and more established
relationships in certain markets. In addition, the PRC government’s recent measures designed to reduce land supply further increased
competition for land among property developers.
Competition among property developers may result
in increased costs for the acquisition of land for development, increased costs for raw materials, shortages of skilled contractors, oversupply
of properties, decrease in property prices in certain
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
than we have. Some also have larger land banks, greater economies of scale, broader name recognition, a longer track record and more established
relationships in certain markets. In addition, the PRC government’s recent measures designed to reduce land supply further increased
competition for land among property developers.
Competition among property developers may result
in increased costs for the acquisition of land for development, increased costs for raw materials, shortages of skilled contractors, oversupply
of properties, decrease in property prices in certain parts of the PRC, a slowdown in the rate at which new property developments will
be approved and/or reviewed by the relevant government authorities and an increase in administrative costs for hiring or retaining qualified
personnel, any of which may adversely affect our business and financial condition. Furthermore, property developers that are better capitalized
than we are may be more competitive in acquiring land through the auction process. If we cannot respond to changes in market conditions
as promptly and effectively as our competitors, or effectively compete for land acquisition through the auction systems and acquire other
factors of production, our business and financial condition will be adversely affected.
In addition, risk of property over-supply is increasing
in parts of China, where property investment, trading and speculation have become overly active. We
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
, property developers that are better capitalized
than we are may be more competitive in acquiring land through the auction process. If we cannot respond to changes in market conditions
as promptly and effectively as our competitors, or effectively compete for land acquisition through the auction systems and acquire other
factors of production, our business and financial condition will be adversely affected.
In addition, risk of property over-supply is increasing
in parts of China, where property investment, trading and speculation have become overly active. We are exposed to the risk that in the
event of actual or perceived over-supply, property prices may fall drastically, and our revenue and profitability will be adversely affected.
Failure to make adequate contributions to various
employee benefits plans as required by PRC regulations may subject us to penalties.
Companies operating in China are required to participate
in various government sponsored employee benefit plans, including certain social insurance, housing funds and other welfare-oriented payment
obligations, and contribute to the plans in amounts equal to certain percentages of salaries, including bonuses and allowances, of employees
up to a maximum amount specified by the local government from time to time at locations where they operate their businesses. The requirement
of employee benefit plans has not been implemented consistently by the local governments in China given the different
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
.
Companies operating in China are required to participate
in various government sponsored employee benefit plans, including certain social insurance, housing funds and other welfare-oriented payment
obligations, and contribute to the plans in amounts equal to certain percentages of salaries, including bonuses and allowances, of employees
up to a maximum amount specified by the local government from time to time at locations where they operate their businesses. The requirement
of employee benefit plans has not been implemented consistently by the local governments in China given the different levels of economic
development in different locations. As of September 30, 2022 and 2021, we have made adequate employee benefit payments in strict compliance
with the relevant PRC regulations for and on behalf of our employees. If we fail to make contributions to various employee benefits plans
in strict compliance with applicable PRC labor-related laws and regulations may subject us to late payment penalties, and we could also
be required to make up the contributions for these plans as well as to pay late fees and fines. If we are subject to late fees or fines
in relation to the underpaid employee benefits, our financial condition and results of operations may be adversely affected.
Risks Relating to the Residential Property
Industry and primary operation in China
Because all our operations
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
employee benefits plans
in strict compliance with applicable PRC labor-related laws and regulations may subject us to late payment penalties, and we could also
be required to make up the contributions for these plans as well as to pay late fees and fines. If we are subject to late fees or fines
in relation to the underpaid employee benefits, our financial condition and results of operations may be adversely affected.
Risks Relating to the Residential Property
Industry and primary operation in China
Because all our operations are in China, our
business is subject to the complex and rapidly evolving laws and regulations there. The Chinese government may exercise significant oversight
and discretion over the conduct of our business and may intervene in or influence our operations at any time, which could result in a
material change in our operations and/or the value of our common stocks.
As a business operating in China, we are subject
to the laws and regulations of the PRC, which can be complex and evolve rapidly. The PRC government has the power to exercise significant
oversight and discretion over the conduct of our business, and the regulations to which we are subject may change rapidly and with little
notice to us or our shareholders. As a result, the application, interpretation, and enforcement of new and existing
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
in our operations and/or the value of our common stocks.
As a business operating in China, we are subject
to the laws and regulations of the PRC, which can be complex and evolve rapidly. The PRC government has the power to exercise significant
oversight and discretion over the conduct of our business, and the regulations to which we are subject may change rapidly and with little
notice to us or our shareholders. As a result, the application, interpretation, and enforcement of new and existing laws and regulations
in the PRC are often uncertain. In addition, these laws and regulations may be interpreted and applied inconsistently by different agencies
or authorities, and inconsistently with our current policies and practices. New laws, regulations, and other government directives in
the PRC may also be costly to comply with, and such compliance or any associated inquiries or investigations or any other government actions
may:
delay or impede our development;
result in negative publicity or increase the Company’s operating costs;
require significant management time and attention; and
subject us to remedies, administrative penalties and even criminal liabilities that may harm our business,
including fines assessed for our current or historical operations, or demands or orders that we modify or even cease our business practices.
24
The promulg
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
RC may also be costly to comply with, and such compliance or any associated inquiries or investigations or any other government actions
may:
delay or impede our development;
result in negative publicity or increase the Company’s operating costs;
require significant management time and attention; and
subject us to remedies, administrative penalties and even criminal liabilities that may harm our business,
including fines assessed for our current or historical operations, or demands or orders that we modify or even cease our business practices.
24
The promulgation of new laws or regulations, or
the new interpretation of existing laws and regulations, in each case that restrict or otherwise unfavorably impact the ability or way
we conduct our business and could require us to change certain aspects of our business to ensure compliance, which could decrease demand
for our products, reduce revenues, increase costs, require us to obtain more licenses, permits, approvals or certificates, or subject
us to additional liabilities. To the extent any new or more stringent measures are required to be implemented, our business, financial
condition and results of operations could be adversely affected as well as materially decrease the value of our common stock, potentially
rendering it worthless.
The uncertainties in the China legal system
could materially and adversely affect us.
On July 6,
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
for our products, reduce revenues, increase costs, require us to obtain more licenses, permits, approvals or certificates, or subject
us to additional liabilities. To the extent any new or more stringent measures are required to be implemented, our business, financial
condition and results of operations could be adversely affected as well as materially decrease the value of our common stock, potentially
rendering it worthless.
The uncertainties in the China legal system
could materially and adversely affect us.
On July 6, 2021, the General Office of the
Communist Party of China Central Committee and the General Office of the State Council jointly issued a document to enhance its enforcement
against illegal activities in the securities markets and promote the high-quality development of the capital markets, which, among other
things, requires the relevant governmental authorities to strengthen cross-border oversight of law-enforcement and judicial cooperation,
to enhance supervision over China-based companies listed overseas, and to establish and improve the system of extraterritorial application
of the Chinese securities laws. Since this document is relatively new, uncertainties exist in relation to how soon legislative or administrative
regulation-making bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will
be modified or promulgated, if any
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
things, requires the relevant governmental authorities to strengthen cross-border oversight of law-enforcement and judicial cooperation,
to enhance supervision over China-based companies listed overseas, and to establish and improve the system of extraterritorial application
of the Chinese securities laws. Since this document is relatively new, uncertainties exist in relation to how soon legislative or administrative
regulation-making bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will
be modified or promulgated, if any, and the potential impact such modified or new laws and regulations will have on companies like us.
It is especially difficult for us to accurately
predict the potential impact to the Company of new legal requirements in China because the China legal system is a civil law system based
on written statutes. Unlike the common law system, prior court decisions under the civil law system may be cited for reference but have
limited precedential value. In 1979, the Chinese government began to promulgate a comprehensive system of laws and regulations governing
economic matters in general. The overall effect of legislation over the past four decades has significantly enhanced the protections afforded
to various forms of foreign investments in China. However, China has not developed a fully integrated legal system, and recently enacted
laws and regulations
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
. Unlike the common law system, prior court decisions under the civil law system may be cited for reference but have
limited precedential value. In 1979, the Chinese government began to promulgate a comprehensive system of laws and regulations governing
economic matters in general. The overall effect of legislation over the past four decades has significantly enhanced the protections afforded
to various forms of foreign investments in China. However, China has not developed a fully integrated legal system, and recently enacted
laws and regulations may not sufficiently cover all aspects of economic activities in China. In particular, the China legal system is
based on written statutes and prior court decisions have limited value as precedents. Since these laws and regulations are relatively
new and the China legal system continues to rapidly evolve, the interpretations of many laws, regulations and rules may not be uniform
and enforcement of these laws, regulations and rules involves uncertainties. These uncertainties may affect our judgment on the relevance
of legal requirements and our ability to enforce our contractual rights or tort claims. In addition, the regulatory uncertainties may
be exploited through unmerited or frivolous legal actions or threats in attempts to extract payments or benefits from us. Furthermore,
the China legal system is based in part on government policies and internal rules, some of
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
interpretations of many laws, regulations and rules may not be uniform
and enforcement of these laws, regulations and rules involves uncertainties. These uncertainties may affect our judgment on the relevance
of legal requirements and our ability to enforce our contractual rights or tort claims. In addition, the regulatory uncertainties may
be exploited through unmerited or frivolous legal actions or threats in attempts to extract payments or benefits from us. Furthermore,
the China legal system is based in part on government policies and internal rules, some of which are not published on a timely basis or
at all and may have a retroactive effect. As a result, we may not be aware of our violation of any of these policies and rules until sometime
after the violation. In addition, any administrative and court proceedings in China may be protracted, resulting in substantial costs
and diversion of resources and management attention.
We may be deemed a PRC resident enterprise
for PRC tax purposes under the Enterprise Income Tax Law, which could result in the imposition of a 25% enterprise income tax payable
on our taxable global income.
On March 16, 2007, the National People’s
Congress of the PRC passed the Enterprise Income Tax Law of the PRC (’‘New Income Tax Law’’
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
may be protracted, resulting in substantial costs
and diversion of resources and management attention.
We may be deemed a PRC resident enterprise
for PRC tax purposes under the Enterprise Income Tax Law, which could result in the imposition of a 25% enterprise income tax payable
on our taxable global income.
On March 16, 2007, the National People’s
Congress of the PRC passed the Enterprise Income Tax Law of the PRC (’‘New Income Tax Law’’), which took effect
on January 1, 2008. On December 6, 2007, the Implementation Rules of Enterprise Income Tax Law of the PRC (’‘Implementation
Rules’’) were also enacted and took effect on January 1, 2008. In accordance with the new laws and regulations, a unified
enterprise income tax rate of 25% and unified tax deduction standards will be applied equally to both domestic enterprises and foreign-invested
enterprises.
25
Under the New Income Tax Law and the Implementation
Rules, enterprises established under the laws of foreign jurisdictions other than the PRC may nevertheless be considered as PRC-resident
enterprises for tax purposes if these enterprises have their ’‘de facto management body’’
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
2008. In accordance with the new laws and regulations, a unified
enterprise income tax rate of 25% and unified tax deduction standards will be applied equally to both domestic enterprises and foreign-invested
enterprises.
25
Under the New Income Tax Law and the Implementation
Rules, enterprises established under the laws of foreign jurisdictions other than the PRC may nevertheless be considered as PRC-resident
enterprises for tax purposes if these enterprises have their ’‘de facto management body’’ within the PRC. Under
the Implementation Rules, ’‘de facto management body’’ is defined as a body that has material and overall management
and control over the manufacturing and business operations, personnel and human resources, finances and treasury, and acquisition and
disposition of properties and other assets of an enterprise. At present, it is unclear what factors will be used by the PRC tax authorities
to determine whether we are a ’‘de facto management body’’ in China. All of our management personnel are located
in the PRC, and all of our revenues arise from our operations in China. If the PRC tax authorities determine that we are a PRC resident
enterprise, we will be subject to PRC tax on our worldwide income at the
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
properties and other assets of an enterprise. At present, it is unclear what factors will be used by the PRC tax authorities
to determine whether we are a ’‘de facto management body’’ in China. All of our management personnel are located
in the PRC, and all of our revenues arise from our operations in China. If the PRC tax authorities determine that we are a PRC resident
enterprise, we will be subject to PRC tax on our worldwide income at the 25% uniform tax rate, which may have a material adverse effect
on our financial condition and results of operations. Notwithstanding the foregoing provision, the New Income Tax Law also provides that,
if a PRC resident enterprise already invests in another PRC resident enterprise, the dividends received by the investing resident enterprise
from the invested resident enterprise are exempt from income tax, subject to certain qualifications. Therefore, if we are classified as
a PRC resident enterprise, the dividends received from our PRC subsidiaries may be exempt from income tax. However, due to the limited
history of the New Income Tax Law, it is unclear as to (i) the detailed qualification requirements for such exemption and (ii) whether
dividend payments by our PRC subsidiaries to us
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
received by the investing resident enterprise
from the invested resident enterprise are exempt from income tax, subject to certain qualifications. Therefore, if we are classified as
a PRC resident enterprise, the dividends received from our PRC subsidiaries may be exempt from income tax. However, due to the limited
history of the New Income Tax Law, it is unclear as to (i) the detailed qualification requirements for such exemption and (ii) whether
dividend payments by our PRC subsidiaries to us will meet such qualification requirements, even if we are considered a PRC resident enterprise
for tax purposes.
We face uncertainty from the Circular on
Strengthening the Administration of Enterprise Income Tax on Non-resident Enterprises’ Share Transfer (“Circular 698”)
released in December 2009 by China’s State Administration of Taxation (SAT), effective as of January 1, 2008.
Where a foreign investor indirectly transfers
equity interests in a Chinese resident enterprise by selling the shares in an offshore holding company, and the latter is located in a
country (jurisdiction) where the effective tax burden is less than 12.5% or where the offshore income of their residents is not taxable,
the foreign investor is required to provide the tax authority in charge
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
2009 by China’s State Administration of Taxation (SAT), effective as of January 1, 2008.
Where a foreign investor indirectly transfers
equity interests in a Chinese resident enterprise by selling the shares in an offshore holding company, and the latter is located in a
country (jurisdiction) where the effective tax burden is less than 12.5% or where the offshore income of their residents is not taxable,
the foreign investor is required to provide the tax authority in charge of that Chinese resident enterprise with the relevant information
within 30 days of the transfers.
Where a foreign investor indirectly transfers
equity interests in a Chinese resident enterprise through the abuse of form of organization and there are no reasonable commercial purposes
such that the corporate income tax liability is avoided, the tax authority has the power to re-assess the nature of the equity transfer
in accordance with the “substance-over-form” principle and deny the existence of the offshore holding company that is used
for tax planning purposes. “Income derived from equity transfers” as mentioned in this circular refers to income derived by
non-resident enterprises from direct or indirect transfers of equity interest in China resident enterprises, excluding share in Chinese
resident enterprises that are bought and sold openly on the stock exchange
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
avoided, the tax authority has the power to re-assess the nature of the equity transfer
in accordance with the “substance-over-form” principle and deny the existence of the offshore holding company that is used
for tax planning purposes. “Income derived from equity transfers” as mentioned in this circular refers to income derived by
non-resident enterprises from direct or indirect transfers of equity interest in China resident enterprises, excluding share in Chinese
resident enterprises that are bought and sold openly on the stock exchange.
While the term “indirectly transfer”
is not defined, we understand that the relevant PRC tax authorities have jurisdiction regarding requests for information over a wide range
of foreign entities having no direct contact with China. The relevant authority has not yet promulgated any formal provisions or formally
declared or stated how to calculate the effective tax in the country (jurisdiction) and the process of the disclosure to the tax authority
in charge of that Chinese resident enterprise. Meanwhile, there are no formal declarations with regard to how to decide “abuse of
form of organization” and “reasonable commercial purpose,” which can be utilized by us to determine if our company complies
with the Circular 698.
26
Failure to comply with PRC regulations relating
to the
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
or formally
declared or stated how to calculate the effective tax in the country (jurisdiction) and the process of the disclosure to the tax authority
in charge of that Chinese resident enterprise. Meanwhile, there are no formal declarations with regard to how to decide “abuse of
form of organization” and “reasonable commercial purpose,” which can be utilized by us to determine if our company complies
with the Circular 698.
26
Failure to comply with PRC regulations relating
to the establishment of offshore special purpose companies by PRC residents may materially adversely affect us.
On July 15, 2014, SAFE issued the Notice
on Relevant Issues in the Foreign Exchange Control over Investment, Financing and Return Investment Through Special Purpose Companies
by Residents Inside China, generally referred to as Circular 37, which required PRC residents to register with the competent local SAFE
branch before establishing or acquiring control over an offshore special purpose company, or SPV, for the purpose of engaging in an equity
financing outside of China on the strength of domestic PRC assets originally held by those residents. Internal implementing guidelines
issued by SAFE, which became public in June 2007 (known as Notice 106), expanded the reach of Circular 37 by (1)
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
referred to as Circular 37, which required PRC residents to register with the competent local SAFE
branch before establishing or acquiring control over an offshore special purpose company, or SPV, for the purpose of engaging in an equity
financing outside of China on the strength of domestic PRC assets originally held by those residents. Internal implementing guidelines
issued by SAFE, which became public in June 2007 (known as Notice 106), expanded the reach of Circular 37 by (1) purporting
to cover the establishment or acquisition of control by PRC residents of offshore entities which merely acquire “control”
over domestic companies or assets, even in the absence of legal ownership; (2) adding requirements relating to the source of the
PRC resident’s funds used to establish or acquire the offshore entity; (3) covering the use of existing offshore entities for
offshore financings; (4) purporting to cover situations in which an offshore SPV establishes a new subsidiary in China or acquires
an unrelated company or unrelated assets in China; and (5) making the domestic affiliate of the SPV responsible for the accuracy
of certain documents which must be filed in connection with any such registration, notably, the business plan
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
funds used to establish or acquire the offshore entity; (3) covering the use of existing offshore entities for
offshore financings; (4) purporting to cover situations in which an offshore SPV establishes a new subsidiary in China or acquires
an unrelated company or unrelated assets in China; and (5) making the domestic affiliate of the SPV responsible for the accuracy
of certain documents which must be filed in connection with any such registration, notably, the business plan which describes the overseas
financing and the use of proceeds. Amendments to registrations made under Circular 37 are required in connection with any increase or
decrease of capital, transfer of shares, mergers and acquisitions, equity investment or creation of any security interest in any assets
located in China to guarantee offshore obligations and Notice 106 makes the offshore SPV jointly responsible for these filings. In the
case of an SPV which was established, and which acquired a related domestic company or assets, before the implementation date of Circular
37, a retroactive SAFE registration was required to have been completed before March 31, 2006. This date was subsequently extended
indefinitely by Notice 106, which also required that the registrant establish that all foreign exchange transactions
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
located in China to guarantee offshore obligations and Notice 106 makes the offshore SPV jointly responsible for these filings. In the
case of an SPV which was established, and which acquired a related domestic company or assets, before the implementation date of Circular
37, a retroactive SAFE registration was required to have been completed before March 31, 2006. This date was subsequently extended
indefinitely by Notice 106, which also required that the registrant establish that all foreign exchange transactions undertaken by the
SPV and its affiliates were in compliance with applicable laws and regulations. Failure to comply with the requirements of Circular 37,
as applied by SAFE in accordance with Notice 106, may result in fines and other penalties under PRC laws for evasion of applicable foreign
exchange restrictions. Any such failure could also result in the SPV’s affiliates being impeded or prevented from distributing their
profits and the proceeds from any reduction in capital, share transfer or liquidation to the SPV, or from engaging in other transfers
of funds into or out of China.
We have asked our stockholders, who are PRC residents
as defined in Circular 37, to register with the relevant branch of SAFE, as currently required, in connection with their equity interests
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
exchange restrictions. Any such failure could also result in the SPV’s affiliates being impeded or prevented from distributing their
profits and the proceeds from any reduction in capital, share transfer or liquidation to the SPV, or from engaging in other transfers
of funds into or out of China.
We have asked our stockholders, who are PRC residents
as defined in Circular 37, to register with the relevant branch of SAFE, as currently required, in connection with their equity interests
in us and our acquisitions of equity interests in our PRC subsidiary. However, we cannot provide any assurances that they can obtain the
above SAFE registrations required by Circular 37 and Notice 106. Moreover, because of uncertainty over how Circular 37 will be interpreted
and implemented, and how or whether SAFE will apply it to us, we cannot predict how it will affect our business operations or future strategies.
For example, our present and prospective PRC subsidiaries’ ability to conduct foreign exchange activities, such as the remittance
of dividends and foreign currency-denominated borrowings, may be subject to compliance with Circular 37 and Notice 106 by our PRC resident
beneficial holders.
In addition, such PRC residents may not always
be able to complete the necessary
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
, and how or whether SAFE will apply it to us, we cannot predict how it will affect our business operations or future strategies.
For example, our present and prospective PRC subsidiaries’ ability to conduct foreign exchange activities, such as the remittance
of dividends and foreign currency-denominated borrowings, may be subject to compliance with Circular 37 and Notice 106 by our PRC resident
beneficial holders.
In addition, such PRC residents may not always
be able to complete the necessary registration procedures required by Circular 37 and Notice 106. We also have little control over either
our present or prospective direct or indirect stockholders or the outcome of such registration procedures. A failure by our PRC resident
beneficial holders or future PRC resident stockholders to comply with Circular 37 and Notice 106, if SAFE requires it, could subject these
PRC resident beneficial holders to fines or legal sanctions, restrict our overseas or cross-border investment activities, limit our subsidiaries’
ability to make distributions or pay dividends or affect our ownership structure, which could adversely affect our business and prospects.
27
In February 2015, SAFE promulgated a Notice on
Further Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment, or SAFE Notice
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
comply with Circular 37 and Notice 106, if SAFE requires it, could subject these
PRC resident beneficial holders to fines or legal sanctions, restrict our overseas or cross-border investment activities, limit our subsidiaries’
ability to make distributions or pay dividends or affect our ownership structure, which could adversely affect our business and prospects.
27
In February 2015, SAFE promulgated a Notice on
Further Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment, or SAFE Notice 13. Under SAFE Notice 13,
applications for foreign exchange registration of inbound foreign direct investments and outbound direct investments, including those
required under SAFE Circular 37, must be filed with qualified banks instead of SAFE. Qualified banks should examine the applications and
accept registrations under the supervision of SAFE. We have used our best efforts to notify PRC residents or entities who directly or
indirectly hold shares in our Cayman Islands holding company and who are known to us as being PRC residents to complete the foreign exchange
registrations. However, we may not be informed of the identities of all the PRC residents or entities holding direct or indirect interest
in our Company, nor can we compel our beneficial owners to comply with SAFE registration requirements. We cannot assure you that all
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
of SAFE. We have used our best efforts to notify PRC residents or entities who directly or
indirectly hold shares in our Cayman Islands holding company and who are known to us as being PRC residents to complete the foreign exchange
registrations. However, we may not be informed of the identities of all the PRC residents or entities holding direct or indirect interest
in our Company, nor can we compel our beneficial owners to comply with SAFE registration requirements. We cannot assure you that all other
shareholders or beneficial owners of ours who are PRC residents or entities have complied with, and will in the future make, obtain or
update any applicable registrations or approvals required by, SAFE regulations. Failure by such shareholders or beneficial owners to comply
with SAFE regulations, or failure by us to amend the foreign exchange registrations of our PRC subsidiaries, could subject us to fines
or legal sanctions, restrict our overseas or cross-border investment activities, and limit our PRC subsidiaries’ ability to make
distributions or pay dividends to us or affect our ownership structure, which could adversely affect our business and prospects.
Furthermore, as these foreign exchange and outbound
investment related regulations are relatively new and their interpretation and implementation has been constantly evolving, it is unclear
how these regulations
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
or failure by us to amend the foreign exchange registrations of our PRC subsidiaries, could subject us to fines
or legal sanctions, restrict our overseas or cross-border investment activities, and limit our PRC subsidiaries’ ability to make
distributions or pay dividends to us or affect our ownership structure, which could adversely affect our business and prospects.
Furthermore, as these foreign exchange and outbound
investment related regulations are relatively new and their interpretation and implementation has been constantly evolving, it is unclear
how these regulations, and any future regulations concerning offshore or cross-border investments and transactions, will be interpreted,
amended and implemented by the relevant government authorities. For example, we may be subject to a more stringent review and approval
process with respect to our foreign exchange activities, such as remittance of dividends and foreign-currency-denominated borrowings,
which may adversely affect our financial condition and results of operations. We cannot assure you that we have complied or will be able
to comply with all applicable foreign exchange and outbound investment related regulations. In addition, if we decide to acquire a PRC
domestic company, we cannot assure you that we or the owners of such company, as the case may be, will be able to obtain the necessary
approvals or complete the necessary filings and
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
of dividends and foreign-currency-denominated borrowings,
which may adversely affect our financial condition and results of operations. We cannot assure you that we have complied or will be able
to comply with all applicable foreign exchange and outbound investment related regulations. In addition, if we decide to acquire a PRC
domestic company, we cannot assure you that we or the owners of such company, as the case may be, will be able to obtain the necessary
approvals or complete the necessary filings and registrations required by the foreign exchange regulations. This may restrict our ability
to implement our acquisition strategy and could adversely affect our business and prospects.
Changes in the policies, regulations, rules,
and the enforcement of laws of the PRC government may be quick with little advance notice and could have a significant impact upon our
ability to operate profitably in the PRC.
All of our operations are located in China. Accordingly,
our business, prospects, financial condition and results of operations may be influenced to a significant degree by political, economic,
legal developments and social conditions in China generally and by continued economic growth in China as a whole. Policies, regulations,
rules, and the enforcement of laws of the PRC government can have significant effects on economic conditions in the PRC and the ability
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
have a significant impact upon our
ability to operate profitably in the PRC.
All of our operations are located in China. Accordingly,
our business, prospects, financial condition and results of operations may be influenced to a significant degree by political, economic,
legal developments and social conditions in China generally and by continued economic growth in China as a whole. Policies, regulations,
rules, and the enforcement of laws of the PRC government can have significant effects on economic conditions in the PRC and the ability
of businesses to operate profitably. Our ability to operate profitably in the PRC may be adversely affected by changes in policies by
the PRC government, including changes in laws, regulations or their interpretation, particularly those dealing with security, intellectual
property, money laundering, taxation and other laws that affect our post-combination entity’s ability to operate its business.
Changes in foreign exchange regulations may
adversely affect our results of operations.
We currently receive all of our revenues in RMB.
The PRC government regulates the conversion between RMB and foreign currencies. Over the years, the government has significantly reduced
its control over routine foreign exchange transactions under current accounts, including trade and service-related foreign exchange transactions,
payment of dividends and service of foreign debt. However
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
taxation and other laws that affect our post-combination entity’s ability to operate its business.
Changes in foreign exchange regulations may
adversely affect our results of operations.
We currently receive all of our revenues in RMB.
The PRC government regulates the conversion between RMB and foreign currencies. Over the years, the government has significantly reduced
its control over routine foreign exchange transactions under current accounts, including trade and service-related foreign exchange transactions,
payment of dividends and service of foreign debt. However, foreign exchange transactions by our PRC subsidiaries under capital accounts
continue to be subject to significant foreign exchange controls and require the approval of, or registration with, PRC governmental authorities.
There can be no assurance that these PRC laws and regulations on foreign investment will not cast uncertainties on our financing and operating
plans in China. Under current foreign exchange regulations in China, subject to the relevant registration at SAFE, we will be able to
pay dividends in foreign currencies, without prior approval from SAFE, by complying with certain procedural requirements. However, there
can be no assurance that the current PRC foreign exchange policies regarding debt service and payment of dividends in foreign currencies
will continue in the future. Changes in PRC foreign exchange policies might have a negative impact on our ability to
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
on our financing and operating
plans in China. Under current foreign exchange regulations in China, subject to the relevant registration at SAFE, we will be able to
pay dividends in foreign currencies, without prior approval from SAFE, by complying with certain procedural requirements. However, there
can be no assurance that the current PRC foreign exchange policies regarding debt service and payment of dividends in foreign currencies
will continue in the future. Changes in PRC foreign exchange policies might have a negative impact on our ability to service our foreign
currency-denominated indebtedness, if any, and to distribute dividends to our shareholders in foreign currencies.
Future inflation in China may inhibit our activity to conduct
business in China.
In recent years, the Chinese economy has experienced
periods of rapid expansion and high rates of inflation, which have led to the adoption by the Chinese government, from time to time, of
various corrective measures designed to restrict the availability of credit or regulate growth and contain inflation. While inflation
has been more moderate since 1995, high inflation may in the future cause Chinese government to impose controls on credit and/or prices,
or to take other action, which could inhibit economic activity in China, and thereby harm the market for our products.
Because Chinese law governs almost all
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
rates of inflation, which have led to the adoption by the Chinese government, from time to time, of
various corrective measures designed to restrict the availability of credit or regulate growth and contain inflation. While inflation
has been more moderate since 1995, high inflation may in the future cause Chinese government to impose controls on credit and/or prices,
or to take other action, which could inhibit economic activity in China, and thereby harm the market for our products.
Because Chinese law governs almost all of our
material agreements, we may not be able to enforce our legal rights within China or elsewhere, which could result in a significant loss
of business, business opportunities, or capital.
We cannot assure you that we will be able to enforce
any of our material agreements or that remedies will be available outside of China. The system of laws and the enforcement of existing
laws in China may not be as certain in implementation and interpretation as in the United States. The inability to enforce or obtain a
remedy under any of our current or future agreements could result in a significant loss of business, business opportunities or capital.
It will be extremely difficult to acquire jurisdiction and enforce liabilities against our officers, directors and assets based in China.
28
Substantially all of our assets
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
that remedies will be available outside of China. The system of laws and the enforcement of existing
laws in China may not be as certain in implementation and interpretation as in the United States. The inability to enforce or obtain a
remedy under any of our current or future agreements could result in a significant loss of business, business opportunities or capital.
It will be extremely difficult to acquire jurisdiction and enforce liabilities against our officers, directors and assets based in China.
28
Substantially all of our assets are located in
the PRC and all of our officers and most of our present directors reside outside of the United States. As a result, it may not be
possible for United States investors to enforce their legal rights, to effect service of process upon our directors or officers or to
enforce judgments of United States courts predicated upon civil liabilities and criminal penalties of our directors and officers under
Federal securities laws. Moreover, we have been advised that China does not have treaties providing for the reciprocal recognition and
enforcement of judgments of courts with the United States. Further, it is unclear if extradition treaties now in effect between the United
States and China would permit effective enforcement of criminal penalties of the Federal securities laws.
Failure to comply with the United States
Foreign Cor
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
or to
enforce judgments of United States courts predicated upon civil liabilities and criminal penalties of our directors and officers under
Federal securities laws. Moreover, we have been advised that China does not have treaties providing for the reciprocal recognition and
enforcement of judgments of courts with the United States. Further, it is unclear if extradition treaties now in effect between the United
States and China would permit effective enforcement of criminal penalties of the Federal securities laws.
Failure to comply with the United States
Foreign Corrupt Practices Act could subject us to penalties and other adverse consequences.
We are subject to the United States Foreign Corrupt
Practices Act, which generally prohibits United States companies from engaging in bribery or other prohibited payments to foreign officials
for the purpose of obtaining or retaining business. Foreign companies, including some that may compete with us, are not subject to these
prohibitions. Corruption, extortion, bribery, pay-offs, theft and other fraudulent practices occur from time-to-time in the PRC. We can
make no assurance, however, that our employees or other agents will not engage in such conduct for which we might be held responsible.
If our employees or other agents are found to have engaged in such practices, we could suffer severe penalties and other consequences
that may have
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
companies, including some that may compete with us, are not subject to these
prohibitions. Corruption, extortion, bribery, pay-offs, theft and other fraudulent practices occur from time-to-time in the PRC. We can
make no assurance, however, that our employees or other agents will not engage in such conduct for which we might be held responsible.
If our employees or other agents are found to have engaged in such practices, we could suffer severe penalties and other consequences
that may have a material adverse effect on our business, financial condition and results of operations.
We may have difficulty establishing adequate management,
legal and financial controls in the PRC.
The PRC historically has been deficient in Western
style management and financial reporting concepts and practices, as well as in modern banking, computer and other control systems. We
may have difficulty in hiring and retaining a sufficient number of qualified employees to work in the PRC. As a result of these factors,
we may experience difficulty in establishing management, legal and financial controls, collecting financial data and preparing financial
statements, books of account and corporate records and instituting business practices that meet Western standards. We may have difficulty
establishing adequate management, legal and financial controls in the PRC.
Although the audit report included in
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
banking, computer and other control systems. We
may have difficulty in hiring and retaining a sufficient number of qualified employees to work in the PRC. As a result of these factors,
we may experience difficulty in establishing management, legal and financial controls, collecting financial data and preparing financial
statements, books of account and corporate records and instituting business practices that meet Western standards. We may have difficulty
establishing adequate management, legal and financial controls in the PRC.
Although the audit report included in this
annual report is prepared by U.S. auditors who are currently inspected by the PCAOB, there is no guarantee that future audit reports will
be prepared by auditors inspected by the PCAOB and, as such, in the future investors may be deprived of the benefits of such inspection.
Furthermore, trading in our securities may be prohibited under the HFCA Act if the SEC subsequently determines our audit work is performed
by auditors that the PCAOB is unable to inspect or investigate completely, and as a result, U.S. national securities exchanges, such as
the Nasdaq, may determine to delist our securities. Furthermore, on December 29, 2022, the Consolidated Appropriations Act, was signed
into law by President Biden. The Consolid
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
of such inspection.
Furthermore, trading in our securities may be prohibited under the HFCA Act if the SEC subsequently determines our audit work is performed
by auditors that the PCAOB is unable to inspect or investigate completely, and as a result, U.S. national securities exchanges, such as
the Nasdaq, may determine to delist our securities. Furthermore, on December 29, 2022, the Consolidated Appropriations Act, was signed
into law by President Biden. The Consolidated Appropriations Act contained, among other things, an identical provision to AHFCAA, which
reduce the number of consecutive non-inspection years required for triggering the prohibitions under the HFCA Act from three years to
two.
As an auditor of companies that are registered
with the SEC and publicly traded in the United States and a firm registered with the PCAOB, our auditor is required under the laws of
the United States to undergo regular inspections by the PCAOB to assess their compliance with the laws of the United States and professional
standards.
Although currently we operates substantially in
mainland China, a jurisdiction where the PCAOB is currently unable to conduct inspections without the approval of the Chinese government
authorities, our auditor, the independent registered public accounting firm that
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
with the SEC and publicly traded in the United States and a firm registered with the PCAOB, our auditor is required under the laws of
the United States to undergo regular inspections by the PCAOB to assess their compliance with the laws of the United States and professional
standards.
Although currently we operates substantially in
mainland China, a jurisdiction where the PCAOB is currently unable to conduct inspections without the approval of the Chinese government
authorities, our auditor, the independent registered public accounting firm that issues the audit report included elsewhere in this annual
report, is subject to laws in the United States pursuant to which the PCAOB conducts regular inspections to assess our auditor’s
compliance with the applicable professional standards. Inspections of other auditors conducted by the PCAOB outside mainland China have
at times identified deficiencies in those auditors’ audit procedures and quality control procedures, which may be addressed as part
of the inspection process to improve future audit quality. The lack of the PCAOB inspections of audit work undertaken in mainland China
prevents the PCAOB from regularly evaluating auditors’ audits and their quality control procedures. As a result, if there is any
component of our auditor’s work papers become located in mainland China in the future, such work papers will not be
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
China have
at times identified deficiencies in those auditors’ audit procedures and quality control procedures, which may be addressed as part
of the inspection process to improve future audit quality. The lack of the PCAOB inspections of audit work undertaken in mainland China
prevents the PCAOB from regularly evaluating auditors’ audits and their quality control procedures. As a result, if there is any
component of our auditor’s work papers become located in mainland China in the future, such work papers will not be subject to inspection
by the PCAOB. As a result, investors would be deprived of such PCAOB inspections, which could result in limitations or restrictions to
our access of the U.S. capital markets.
29
As part of a continued regulatory focus in the
United States on access to audit and other information currently protected by national law, in particular mainland China’s, in June
2019, a bipartisan group of lawmakers introduced bills in both houses of the U.S. Congress which, if passed, would require the SEC to
maintain a list of issuers for which the PCAOB is not able to inspect or investigate the audit work performed by a foreign public accounting
firm completely. The proposed Ensuring Quality Information and Transparency for Abroad-Based Listings on our Ex
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
on access to audit and other information currently protected by national law, in particular mainland China’s, in June
2019, a bipartisan group of lawmakers introduced bills in both houses of the U.S. Congress which, if passed, would require the SEC to
maintain a list of issuers for which the PCAOB is not able to inspect or investigate the audit work performed by a foreign public accounting
firm completely. The proposed Ensuring Quality Information and Transparency for Abroad-Based Listings on our Exchanges (“EQUITABLE”)
Act prescribes increased disclosure requirements for these issuers and, beginning in 2025, the delisting from U.S. national securities
exchanges such as the Nasdaq of issuers included on the SEC’s list for three consecutive years. It is unclear if this proposed legislation
will be enacted. Furthermore, there have been recent deliberations within the U.S. government regarding potentially limiting or restricting
China-based companies from accessing U.S. capital markets. On May 20, 2020, the U.S. Senate passed the HFCA Act, which includes requirements
for the SEC to identify issuers whose audit work is performed by auditors that the PCAOB is unable to inspect or investigate completely
because of a restriction imposed by
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
It is unclear if this proposed legislation
will be enacted. Furthermore, there have been recent deliberations within the U.S. government regarding potentially limiting or restricting
China-based companies from accessing U.S. capital markets. On May 20, 2020, the U.S. Senate passed the HFCA Act, which includes requirements
for the SEC to identify issuers whose audit work is performed by auditors that the PCAOB is unable to inspect or investigate completely
because of a restriction imposed by a non-U.S. authority in the auditor’s local jurisdiction. The U.S. House of Representatives
passed the HFCA Act on December 2, 2020, and the HFCA Act was signed into law on December 18, 2020. Additionally, in July 2020, the U.S.
President’s Working Group on Financial Markets issued recommendations for actions that can be taken by the executive branch, the
SEC, the PCAOB or other federal agencies and department with respect to Chinese companies listed on U.S. stock exchanges and their audit
firms, in an effort to protect investors in the United States. In response, on November 23, 2020, the SEC issued guidance highlighting
certain risks (and their implications to U.S
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
July 2020, the U.S.
President’s Working Group on Financial Markets issued recommendations for actions that can be taken by the executive branch, the
SEC, the PCAOB or other federal agencies and department with respect to Chinese companies listed on U.S. stock exchanges and their audit
firms, in an effort to protect investors in the United States. In response, on November 23, 2020, the SEC issued guidance highlighting
certain risks (and their implications to U.S. investors) associated with investments in China-based issuers and summarizing enhanced disclosures
the SEC recommends China-based issuers make regarding such risks. On March 24, 2021, the SEC adopted interim final rules relating to the
implementation of certain disclosure and documentation requirements of the HFCA Act. We will be required to comply with these rules if
the SEC identifies us as having a “non-inspection” year (as defined in the interim final rules) under a process to be subsequently
established by the SEC. The SEC is assessing how to implement other requirements of the HFCA Act, including the listing and trading prohibition
requirements described above. Under the HFCA Act, our securities may be prohibited from trading on the Nasdaq or other U.S. stock
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
the HFCA Act. We will be required to comply with these rules if
the SEC identifies us as having a “non-inspection” year (as defined in the interim final rules) under a process to be subsequently
established by the SEC. The SEC is assessing how to implement other requirements of the HFCA Act, including the listing and trading prohibition
requirements described above. Under the HFCA Act, our securities may be prohibited from trading on the Nasdaq or other U.S. stock exchanges
if our auditor is not inspected by the PCAOB for three consecutive years, and this ultimately could result in our common stock being delisted.
Furthermore, on June 22, 2021, the U.S. Senate passed the AHFCAA, which, if enacted, would amend the HFCA Act and require the SEC to prohibit
an issuer’s securities from trading on any U.S. stock exchanges if its auditor is not subject to the PCAOB inspections for two consecutive
years instead of three and would reduce the time before our securities may be prohibited from trading or delisted. On September 22, 2021,
the PCAOB adopted a final rule implementing the AHFCAA, which provides a framework for the PCAOB to use when determining, as contemplated
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
, would amend the HFCA Act and require the SEC to prohibit
an issuer’s securities from trading on any U.S. stock exchanges if its auditor is not subject to the PCAOB inspections for two consecutive
years instead of three and would reduce the time before our securities may be prohibited from trading or delisted. On September 22, 2021,
the PCAOB adopted a final rule implementing the AHFCAA, which provides a framework for the PCAOB to use when determining, as contemplated
under the AHFCAA, whether the Board is unable to inspect or investigate completely registered public accounting firms located in a foreign
jurisdiction because of a position taken by one or more authorities in that jurisdiction. On November 5, 2021, the SEC approved the PCAOB’s
Rule 6100, Board Determinations Under the HFCA Act. On December 2, 2021, the SEC issued amendments to finalize rules implementing the
submission and disclosure requirements in the HFCA Act The rules apply to registrants that the SEC identifies as having filed an annual
report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that the PCAOB
is unable to inspect or investigate completely because of a position taken by an
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
OB’s
Rule 6100, Board Determinations Under the HFCA Act. On December 2, 2021, the SEC issued amendments to finalize rules implementing the
submission and disclosure requirements in the HFCA Act The rules apply to registrants that the SEC identifies as having filed an annual
report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that the PCAOB
is unable to inspect or investigate completely because of a position taken by an authority in foreign jurisdictions. The PCAOB issued
a Determination Report on December 16, 2021 which found that the PCAOB is unable to inspect or investigate completely registered public
accounting firms headquartered in: (1) mainland China of the PRC, and (2) Hong Kong. In addition, the PCAOB’s report identified
the specific registered public accounting firms which are subject to these determinations. On December 29, 2022, the Consolidated Appropriations
Act, was signed into law by President Biden. The Consolidated Appropriations Act contained, among other things, an identical provision
to AHFCAA, which reduce the number of consecutive non-inspection years required for triggering the prohibitions under the HFCA Act from
three years
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
2) Hong Kong. In addition, the PCAOB’s report identified
the specific registered public accounting firms which are subject to these determinations. On December 29, 2022, the Consolidated Appropriations
Act, was signed into law by President Biden. The Consolidated Appropriations Act contained, among other things, an identical provision
to AHFCAA, which reduce the number of consecutive non-inspection years required for triggering the prohibitions under the HFCA Act from
three years to two. Our auditor, OneStop Assurance PAC, is headquartered in Singapore, not mainland China or Hong Kong and was not identified
in this report as a firm subject to the PCAOB’s determination. Therefore, our auditor is not currently subject to the determinations
announced by the PCAOB on December 16, 2021, and it is currently subject to the PCAOB inspections.
While our auditor is based in the U.S. and is
registered with the PCAOB and has been inspected by the PCAOB on a regular basis, in the event it is later determined that the PCAOB is
unable to inspect or investigate completely our auditor because of a position taken by an authority in a foreign jurisdiction, then such
lack of inspection could cause trading in
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
by the PCAOB on December 16, 2021, and it is currently subject to the PCAOB inspections.
While our auditor is based in the U.S. and is
registered with the PCAOB and has been inspected by the PCAOB on a regular basis, in the event it is later determined that the PCAOB is
unable to inspect or investigate completely our auditor because of a position taken by an authority in a foreign jurisdiction, then such
lack of inspection could cause trading in the our securities to be prohibited under the HFCA Act, and ultimately result in a determination
by a securities exchange to delist our securities. In addition, the recent developments would add uncertainties to the listing of our
securities and we cannot assure you whether Nasdaq or regulatory authorities would apply additional and more stringent criteria to us
after considering the effectiveness of our auditor’s audit procedures and quality control procedures, adequacy of personnel and
training, or sufficiency of resources, geographic reach or experience as it relates to the audit of our financial statements. It remains
unclear what the SEC’s implementation process related to the above rules will entail or what further actions the SEC, the PCAOB
or Nasdaq will take to address these issues and what impact those actions will have
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
authorities would apply additional and more stringent criteria to us
after considering the effectiveness of our auditor’s audit procedures and quality control procedures, adequacy of personnel and
training, or sufficiency of resources, geographic reach or experience as it relates to the audit of our financial statements. It remains
unclear what the SEC’s implementation process related to the above rules will entail or what further actions the SEC, the PCAOB
or Nasdaq will take to address these issues and what impact those actions will have on U.S. companies that have significant operations
in the PRC and have securities listed on a U.S. stock exchange (including a national securities exchange or over-the-counter stock market).
In addition, the above amendments and any additional actions, proceedings, or new rules resulting from these efforts to increase U.S.
regulatory access to audit information could create some uncertainty for investors, the market price of our common stock could be adversely
affected, and we could be delisted if we and our auditor are unable to meet the PCAOB inspection requirement or being required to engage
a new audit firm, which would require significant expense and management time.
On August 26, 2022, the PCAOB signed Statement
of Protocol (the “SOP”) Agreement with the CS
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
these efforts to increase U.S.
regulatory access to audit information could create some uncertainty for investors, the market price of our common stock could be adversely
affected, and we could be delisted if we and our auditor are unable to meet the PCAOB inspection requirement or being required to engage
a new audit firm, which would require significant expense and management time.
On August 26, 2022, the PCAOB signed Statement
of Protocol (the “SOP”) Agreement with the CSRC and China’s Ministry of Finance. The SOP Agreement, together with two
protocol agreements (collectively, “SOP Agreements”), governs inspections and investigations of audit firms based in mainland
China and Hong Kong, taking the first step toward opening access for the PCAOB to inspect and investigate registered public accounting
firms headquartered in mainland China and Hong Kong. Pursuant to the fact sheet with respect to the Protocol disclosed by the SEC, the
PCAOB shall have independent discretion to select any issuer audits for inspection or investigation and has the unfettered ability to
transfer information to the SEC. On December 15, 2022, the PCAOB Board determined that the PCAOB was able to secure complete access to
inspect and investigate registered public accounting firms
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
to inspect and investigate registered public accounting
firms headquartered in mainland China and Hong Kong. Pursuant to the fact sheet with respect to the Protocol disclosed by the SEC, the
PCAOB shall have independent discretion to select any issuer audits for inspection or investigation and has the unfettered ability to
transfer information to the SEC. On December 15, 2022, the PCAOB Board determined that the PCAOB was able to secure complete access to
inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong and voted to vacate its previous
determinations to the contrary. However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB’s access in the
future, the PCAOB Board will consider the need to issue a new determination. Delisting of our common stock would force holders of our
common stock to sell their shares of common stock. The market price of our common stock could be adversely affected as a result of anticipated
negative impacts of these executive or legislative actions upon, as well as negative investor sentiment towards, companies with significant
operations in China that are listed in the United States, regardless of whether these executive or legislative actions are implemented
and regardless of our actual operating performance.
30
Recent greater oversight by the
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
determination. Delisting of our common stock would force holders of our
common stock to sell their shares of common stock. The market price of our common stock could be adversely affected as a result of anticipated
negative impacts of these executive or legislative actions upon, as well as negative investor sentiment towards, companies with significant
operations in China that are listed in the United States, regardless of whether these executive or legislative actions are implemented
and regardless of our actual operating performance.
30
Recent greater oversight by the CAC over data
security, particularly for companies seeking to list on a foreign exchange, could adversely impact the operating entities’ business
and our offerings.
On December 28, 2021, the CAC, together with 12
other governmental departments of the PRC, jointly promulgated the Cybersecurity Review Measures, which became effective on February 15,
2022. The Cybersecurity Review Measures provides that, in addition to critical information infrastructure operators (“CIIOs”)
that intend to purchase Internet products and services, data processing operators engaging in data processing activities that affect or
may affect national security must be subject to cybersecurity review by the Cybersecurity Review Office of the PRC. According to the Cybersecurity
Review Measures, a cybersecurity review assesses potential
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
, jointly promulgated the Cybersecurity Review Measures, which became effective on February 15,
2022. The Cybersecurity Review Measures provides that, in addition to critical information infrastructure operators (“CIIOs”)
that intend to purchase Internet products and services, data processing operators engaging in data processing activities that affect or
may affect national security must be subject to cybersecurity review by the Cybersecurity Review Office of the PRC. According to the Cybersecurity
Review Measures, a cybersecurity review assesses potential national security risks that may be brought about by any procurement, data
processing, or overseas listing. The Cybersecurity Review Measures further requires that CIIOs and data processing operators that possess
personal data of at least one million users must apply for a review by the Cybersecurity Review Office of the PRC before conducting listings
in foreign countries.
On November 14, 2021, the CAC published the Security
Administration Draft, which provides that data processing operators engaging in data processing activities that affect or may affect national
security must be subject to network data security review by the relevant Cyberspace Administration of the PRC. According to the Security
Administration Draft, data processing operators who possess personal data of at least one million users or collect data that affects or
may
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
Office of the PRC before conducting listings
in foreign countries.
On November 14, 2021, the CAC published the Security
Administration Draft, which provides that data processing operators engaging in data processing activities that affect or may affect national
security must be subject to network data security review by the relevant Cyberspace Administration of the PRC. According to the Security
Administration Draft, data processing operators who possess personal data of at least one million users or collect data that affects or
may affect national security must be subject to network data security review by the relevant Cyberspace Administration of the PRC. The
deadline for public comments on the Security Administration Draft was December 13, 2021.
As of the date of this annual report, we
have not received any notice from any authorities identifying any of the operating entities as a CIIO or requiring any of the
operating entities to go through cybersecurity review or network data security review by the CAC. As the Cybersecurity Review
Measures became effective and if the Security Administration Draft is enacted as proposed, we believe that our operating entity,
Guangsha’s operations and our listing will not be affected and that the operating entities are not subject to cybersecurity
review or network data security review by the C
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
received any notice from any authorities identifying any of the operating entities as a CIIO or requiring any of the
operating entities to go through cybersecurity review or network data security review by the CAC. As the Cybersecurity Review
Measures became effective and if the Security Administration Draft is enacted as proposed, we believe that our operating entity,
Guangsha’s operations and our listing will not be affected and that the operating entities are not subject to cybersecurity
review or network data security review by the CAC, given that: (i) Guangsha engages in real estate development, primarily in the
construction and sale of residential apartments, car parks and commercial properties, therefore it is unlikely to be classified as a
CIIO by the PRC regulatory agencies; (ii) Guangsha possesses personal data of fewer than one million individual clients in its
business operations as of the date of this annual report and do not anticipate that Guangsha will be collecting over one million
users’ personal information in the near future, which we understand might otherwise subject Guangsha to the Cybersecurity
Review Measures; and (iii) since Guangsha are in real estate development, data processed in their business is unlikely to have a
bearing on national security and therefore is unlikely to be classified as core
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
sha possesses personal data of fewer than one million individual clients in its
business operations as of the date of this annual report and do not anticipate that Guangsha will be collecting over one million
users’ personal information in the near future, which we understand might otherwise subject Guangsha to the Cybersecurity
Review Measures; and (iii) since Guangsha are in real estate development, data processed in their business is unlikely to have a
bearing on national security and therefore is unlikely to be classified as core or important data by the authorities. There remains
uncertainty, however, as to how the Cybersecurity Review Measures and the Security Administration Draft will be interpreted or
implemented and whether the PRC regulatory agencies, including the CAC, may adopt new laws, regulations, rules, or detailed
implementation and interpretation related to the Cybersecurity Review Measures and the Security Administration Draft. If any such
new laws, regulations, rules, or implementation and interpretation come into effect, the operating entities will take all reasonable
measures and actions to comply and to minimize the adverse effect of such laws on them. We cannot guarantee, however, that our
operating entity in mainland China will not be subject to cybersecurity review and network data security review in the future.
During such reviews, our
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
or detailed
implementation and interpretation related to the Cybersecurity Review Measures and the Security Administration Draft. If any such
new laws, regulations, rules, or implementation and interpretation come into effect, the operating entities will take all reasonable
measures and actions to comply and to minimize the adverse effect of such laws on them. We cannot guarantee, however, that our
operating entity in mainland China will not be subject to cybersecurity review and network data security review in the future.
During such reviews, our operating entity in mainland China may be required to suspend its operations or experience other
disruptions to its operations. Cybersecurity review and network data security review could also result in negative publicity with
respect to our Company and diversion of Guangsha’s managerial and financial resources, which could materially and adversely
affect its business, financial conditions, and results of operations and our offerings.
The Opinions recently issued by the General
Office of the Central Committee of the Communist Party of China and the General Office of the State Council may subject the operating
entities to additional compliance requirement in the future.
Recently, the General Office of the Central Committee of the Communist
Party of China and the General Office of the State Council jointly issued the Opinions, which were made available to the public on July
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
and adversely
affect its business, financial conditions, and results of operations and our offerings.
The Opinions recently issued by the General
Office of the Central Committee of the Communist Party of China and the General Office of the State Council may subject the operating
entities to additional compliance requirement in the future.
Recently, the General Office of the Central Committee of the Communist
Party of China and the General Office of the State Council jointly issued the Opinions, which were made available to the public on July
6, 2021. The Opinions emphasized the need to strengthen the administration over illegal securities activities and the supervision on overseas
listings by China-based companies. These opinions proposed to take effective measures, such as promoting the construction of relevant
regulatory systems, to deal with the risks and incidents facing China-based overseas-listed companies and the demand for cybersecurity
and data privacy protection. The aforementioned policies and any related implementation rules to be enacted may subject the operating
entities to additional compliance requirement in the future. As the Opinions were recently issued, official guidance and interpretation
of the Opinions remain unclear in several respects at this time. Therefore, we cannot assure you that the operating entities will remain
fully compliant with all new regulatory requirements of the Opinions or any
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
with the risks and incidents facing China-based overseas-listed companies and the demand for cybersecurity
and data privacy protection. The aforementioned policies and any related implementation rules to be enacted may subject the operating
entities to additional compliance requirement in the future. As the Opinions were recently issued, official guidance and interpretation
of the Opinions remain unclear in several respects at this time. Therefore, we cannot assure you that the operating entities will remain
fully compliant with all new regulatory requirements of the Opinions or any future implementation rules on a timely basis, or at all.
31
Risks Relating to Our Corporate Structure
If the PRC government deems that the contractual arrangements
in relation to Guangsha, our consolidated variable interest entity, do not comply with PRC regulatory restrictions on foreign investment
in the relevant industries, or if these regulations or the interpretation of existing regulations change in the future, we could be subject
to severe penalties or be forced to relinquish our interests in those operations.
We are a holding company incorporated under
the laws of the State of Florida. As a holding company with no material operations of our own, we conduct all of our operations through
our subsidiaries established in PRC and our VIE. We control and receive the economic benefits of our
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
foreign investment
in the relevant industries, or if these regulations or the interpretation of existing regulations change in the future, we could be subject
to severe penalties or be forced to relinquish our interests in those operations.
We are a holding company incorporated under
the laws of the State of Florida. As a holding company with no material operations of our own, we conduct all of our operations through
our subsidiaries established in PRC and our VIE. We control and receive the economic benefits of our VIE’s business operations through
certain contractual arrangements.
The VIE contributed 60% and 100% of the Company’s
consolidated results of operations for the years ended September 30, 2022 and 2021, respectively. As of September 30, 2022, the VIE accounted
for approximately 93% of the consolidated total assets and 97% of total liabilities of the Company, respectively.
We rely on and expect to continue to rely on our
wholly owned PRC subsidiary’s contractual arrangements with Guangsha and its shareholders to operate our business. These contractual
arrangements may not be as effective in providing us with control over Guangsha as ownership of controlling equity interests would be
in providing us with
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
30, 2022, the VIE accounted
for approximately 93% of the consolidated total assets and 97% of total liabilities of the Company, respectively.
We rely on and expect to continue to rely on our
wholly owned PRC subsidiary’s contractual arrangements with Guangsha and its shareholders to operate our business. These contractual
arrangements may not be as effective in providing us with control over Guangsha as ownership of controlling equity interests would be
in providing us with control over or enabling us to derive economic benefits from the operations of Guangsha. Under the current contractual
arrangements, as a legal matter, if Guangsha or any of its shareholders executing the VIE Agreements fails to perform its, his or her
respective obligations under these contractual arrangements, we may have to incur substantial costs and resources to enforce such arrangements,
and rely on legal remedies available under PRC laws, including seeking specific performance or injunctive relief, and claiming damages,
which we cannot assure you will be effective. For example, if shareholders of a variable interest entity were to refuse to transfer their
equity interests in such variable interest entity to us or our designated persons when we exercise the purchase option pursuant to these
contractual arrangements, we may
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
under these contractual arrangements, we may have to incur substantial costs and resources to enforce such arrangements,
and rely on legal remedies available under PRC laws, including seeking specific performance or injunctive relief, and claiming damages,
which we cannot assure you will be effective. For example, if shareholders of a variable interest entity were to refuse to transfer their
equity interests in such variable interest entity to us or our designated persons when we exercise the purchase option pursuant to these
contractual arrangements, we may have to take a legal action to compel them to fulfill their contractual obligations.
If (i) the applicable PRC authorities invalidate
these contractual arrangements for violation of PRC laws, rules and regulations, (ii) any variable interest entity or its shareholders
terminate the contractual arrangements (iii) any variable interest entity or its shareholders fail to perform its/his/her obligations
under these contractual arrangements, or (iv) if these regulations change or are interpreted differently in the future, our business operations
in China would be materially and adversely affected, and the value of your shares would substantially decrease or even become worthless.
Further, if we fail to renew these contractual arrangements upon their expiration, we would not be able to continue our business operations
unless the then current PRC law allows us
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
iii) any variable interest entity or its shareholders fail to perform its/his/her obligations
under these contractual arrangements, or (iv) if these regulations change or are interpreted differently in the future, our business operations
in China would be materially and adversely affected, and the value of your shares would substantially decrease or even become worthless.
Further, if we fail to renew these contractual arrangements upon their expiration, we would not be able to continue our business operations
unless the then current PRC law allows us to directly operate businesses in China.
In addition, if any variable interest entity or
all or part of its assets become subject to liens or rights of third-party creditors, we may be unable to continue some or all of our
business activities, which could materially and adversely affect our business, financial condition and results of operations. If any of
the variable interest entities undergoes a voluntary or involuntary liquidation proceeding, its shareholders or unrelated third-party
creditors may claim rights to some or all of these assets, thereby hindering our ability to operate our business, which could materially
and adversely affect our business and our ability to generate revenues.
All of these contractual arrangements are governed
by PRC law and provide for the resolution of disputes through arbitration in the PRC.
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
our business, financial condition and results of operations. If any of
the variable interest entities undergoes a voluntary or involuntary liquidation proceeding, its shareholders or unrelated third-party
creditors may claim rights to some or all of these assets, thereby hindering our ability to operate our business, which could materially
and adversely affect our business and our ability to generate revenues.
All of these contractual arrangements are governed
by PRC law and provide for the resolution of disputes through arbitration in the PRC. The legal environment in the PRC is not as developed
as in some other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could limit our ability
to enforce these contractual arrangements. In the event we are unable to enforce these contractual arrangements, we may not be able to
exert effective control over our operating entities and we may be precluded from operating our business, which would have a material adverse
effect on our financial condition and results of operations.
32
These contractual arrangements may not be as effective
as direct ownership in providing us with control over our VIE. For example, our VIE and its shareholders could breach their contractual
arrangements with us by, among other things, failing to conduct their operations in
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
arrangements, we may not be able to
exert effective control over our operating entities and we may be precluded from operating our business, which would have a material adverse
effect on our financial condition and results of operations.
32
These contractual arrangements may not be as effective
as direct ownership in providing us with control over our VIE. For example, our VIE and its shareholders could breach their contractual
arrangements with us by, among other things, failing to conduct their operations in an acceptable manner or taking other actions that
are detrimental to our interests. If we had direct ownership of our VIE, we would be able to exercise our rights as a shareholder to effect
changes in the board of directors of our VIE, which in turn could implement changes, subject to any applicable fiduciary obligations,
at the management and operational level. However, under the current contractual arrangements, we rely on the performance by our VIE and
its shareholders of their obligations under the contracts to exercise control over our VIE. The shareholders of our consolidated VIE may
not act in the best interests of our company or may not perform their obligations under these contracts. Such risks exist throughout the
period in which we intend to operate certain portions of our business through the
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
, subject to any applicable fiduciary obligations,
at the management and operational level. However, under the current contractual arrangements, we rely on the performance by our VIE and
its shareholders of their obligations under the contracts to exercise control over our VIE. The shareholders of our consolidated VIE may
not act in the best interests of our company or may not perform their obligations under these contracts. Such risks exist throughout the
period in which we intend to operate certain portions of our business through the contractual arrangements with our VIE.
If our VIE or its shareholders fail to perform
their respective obligations under the contractual arrangements, we may have to incur substantial costs and expend additional resources
to enforce such arrangements. For example, if the shareholders of our VIE refuse to transfer their equity interest in our VIE to us or
our designee if we exercise the purchase option pursuant to these contractual arrangements, or if they otherwise act in bad faith toward
us, then we may have to take legal actions to compel them to perform their contractual obligations. In addition, if any third parties
claim any interest in such shareholders’ equity interests in our VIE, our ability to exercise shareholders’ rights or foreclose
the share pledge according to the contractual arrangements may be impaired
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
transfer their equity interest in our VIE to us or
our designee if we exercise the purchase option pursuant to these contractual arrangements, or if they otherwise act in bad faith toward
us, then we may have to take legal actions to compel them to perform their contractual obligations. In addition, if any third parties
claim any interest in such shareholders’ equity interests in our VIE, our ability to exercise shareholders’ rights or foreclose
the share pledge according to the contractual arrangements may be impaired. If these or other disputes between the shareholders of our
VIE and third parties were to impair our control over our VIE, our ability to consolidate the financial results of our VIE would be affected,
which would in turn result in a material adverse effect on our business, operations and financial condition.
In the opinion of our PRC legal counsel, each
of the contractual arrangements among our WFOE, our VIE and its shareholders governed by PRC laws are valid, binding and enforceable,
and will not result in any violation of PRC laws or regulations currently in effect. However, our PRC legal counsel has also advised us
that there are substantial uncertainties regarding the interpretation and application of current and future PRC laws, regulations and
rules. Accordingly,
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
operations and financial condition.
In the opinion of our PRC legal counsel, each
of the contractual arrangements among our WFOE, our VIE and its shareholders governed by PRC laws are valid, binding and enforceable,
and will not result in any violation of PRC laws or regulations currently in effect. However, our PRC legal counsel has also advised us
that there are substantial uncertainties regarding the interpretation and application of current and future PRC laws, regulations and
rules. Accordingly, the PRC regulatory authorities may ultimately take a view that is contrary to the opinion of our PRC legal counsel.
In addition, it is uncertain whether any new PRC laws or regulations relating to variable interest entity structures will be adopted or
if adopted, what they would provide. PRC government authorities may deem that foreign ownership is directly or indirectly involved in
our VIE’s shareholding structure. If our corporate structure and contractual arrangements are deemed by the Ministry of Industry
and Information Technology, MIIT, or the Ministry of Commerce, MOFCOM, or other regulators having competent authority to be illegal, either
in whole or in part, we may lose control of our consolidated VIE and have to modify such structure to comply with regulatory requirements.
However, there can be
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
PRC government authorities may deem that foreign ownership is directly or indirectly involved in
our VIE’s shareholding structure. If our corporate structure and contractual arrangements are deemed by the Ministry of Industry
and Information Technology, MIIT, or the Ministry of Commerce, MOFCOM, or other regulators having competent authority to be illegal, either
in whole or in part, we may lose control of our consolidated VIE and have to modify such structure to comply with regulatory requirements.
However, there can be no assurance that we can achieve this without material disruption to our VIE’s business. Furthermore, if we
or our VIE is found to be in violation of any existing or future PRC laws or regulations, or fail to obtain or maintain any of the required
permits or approvals, the relevant PRC regulatory authorities would have broad discretion to take action in dealing with such violations
or failures, including, without limitation:
revoking the business license and/or operating licenses of our WFOE or our VIE;
discontinuing or placing restrictions or onerous conditions on our operations through any transactions
among our WFOE and our VIE;
imposing fines, confiscating the income from our WFOE, our VIE or its subsidiaries, or imposing
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
or approvals, the relevant PRC regulatory authorities would have broad discretion to take action in dealing with such violations
or failures, including, without limitation:
revoking the business license and/or operating licenses of our WFOE or our VIE;
discontinuing or placing restrictions or onerous conditions on our operations through any transactions
among our WFOE and our VIE;
imposing fines, confiscating the income from our WFOE, our VIE or its subsidiaries, or imposing other
requirements with which we or our VIE may not be able to comply;
placing restrictions on our right to collect revenues;
requiring us to restructure our ownership structure or operations, including terminating the contractual
arrangements with our VIE and deregistering the equity pledges of our VIE, which in turn would affect our ability to consolidate, derive
economic interests from, or exert effective control over our VIE; or
taking other regulatory or enforcement actions against us that could be harmful to our business.
33
The imposition of any of these penalties would
result in a material and adverse effect on our ability to conduct our business. In addition, it is unclear what impact the PRC government
actions would have on us and on our ability to consolidate the
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
pledges of our VIE, which in turn would affect our ability to consolidate, derive
economic interests from, or exert effective control over our VIE; or
taking other regulatory or enforcement actions against us that could be harmful to our business.
33
The imposition of any of these penalties would
result in a material and adverse effect on our ability to conduct our business. In addition, it is unclear what impact the PRC government
actions would have on us and on our ability to consolidate the financial results of our VIE in our consolidated financial statements,
if the PRC government authorities were to find our corporate structure and contractual arrangements to be in violation of PRC laws and
regulations. If the imposition of any of these government actions causes us to lose our right to direct the activities of our VIE or our
right to receive substantially all the economic benefits and residual returns from our VIE and we are not able to restructure our ownership
structure and operations in a satisfactory manner, we would no longer be able to consolidate the financial results of our VIE in our consolidated
financial statements. Either of these results, or any other significant penalties that might be imposed on us in this event, would have
a material adverse effect on our financial condition and results of
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
direct the activities of our VIE or our
right to receive substantially all the economic benefits and residual returns from our VIE and we are not able to restructure our ownership
structure and operations in a satisfactory manner, we would no longer be able to consolidate the financial results of our VIE in our consolidated
financial statements. Either of these results, or any other significant penalties that might be imposed on us in this event, would have
a material adverse effect on our financial condition and results of operations.
We rely on contractual arrangements with
our variable interest entity and its subsidiary in China for our business operations, which may not be as effective in providing operational
control or enabling us to derive economic benefits as through ownership of controlling equity interests.
We are a holding company with no material operations
of our own. We conduct a substantial majority of our operations through our subsidiaries established and the VIE in the PRC. We rely on
and expect to continue to rely on our wholly owned PRC subsidiary’s contractual arrangements with Guangsha and its shareholders
to operate our business. These contractual arrangements may not be as effective in providing us with control over Guangsha as direct
ownership in providing us with control over Guangsha, or enabling us to derive economic benefits from
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
material operations
of our own. We conduct a substantial majority of our operations through our subsidiaries established and the VIE in the PRC. We rely on
and expect to continue to rely on our wholly owned PRC subsidiary’s contractual arrangements with Guangsha and its shareholders
to operate our business. These contractual arrangements may not be as effective in providing us with control over Guangsha as direct
ownership in providing us with control over Guangsha, or enabling us to derive economic benefits from the operations of Guangsha. Under
the current contractual arrangements, as a legal matter, if Guangsha or any of Guangsha Shareholders fails to perform its, his or her
respective obligations under these contractual arrangements, we may have to incur substantial costs and resources to enforce such arrangements,
and rely on legal remedies available under PRC laws, including seeking specific performance or injunctive relief, and claiming damages,
which we cannot assure you will be effective. For example, if Guangsha Shareholders were to refuse to transfer their equity interests
in Guangsha to us or our designated persons when we exercise the purchase option pursuant to these contractual arrangements, we may have
to take a legal action to compel them to fulfill their contractual obligations. Furthermore, if we had direct
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
such arrangements,
and rely on legal remedies available under PRC laws, including seeking specific performance or injunctive relief, and claiming damages,
which we cannot assure you will be effective. For example, if Guangsha Shareholders were to refuse to transfer their equity interests
in Guangsha to us or our designated persons when we exercise the purchase option pursuant to these contractual arrangements, we may have
to take a legal action to compel them to fulfill their contractual obligations. Furthermore, if we had direct ownership of Guangsha,
we would be able to exercise our rights as a shareholder to effect changes in the board of directors of Guangsha, which in turn could
implement changes, subject to any applicable fiduciary obligations, at the management and operational level. However, under the VIE Agreements,
we rely on the performance by Guangsha and its shareholders of their obligations under the contracts to exercise control over Guangsha.
The shareholders of Guangsha may not act in the best interests of our Company or may not perform their obligations under these contracts.
Such risks exist throughout the period in which we intend to operate certain portions of our business through the contractual arrangements
with Guangsha. In addition, if any third parties claim any interest in such shareholders’ equity interests in the VIE
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
VIE Agreements,
we rely on the performance by Guangsha and its shareholders of their obligations under the contracts to exercise control over Guangsha.
The shareholders of Guangsha may not act in the best interests of our Company or may not perform their obligations under these contracts.
Such risks exist throughout the period in which we intend to operate certain portions of our business through the contractual arrangements
with Guangsha. In addition, if any third parties claim any interest in such shareholders’ equity interests in the VIE, our ability
to exercise shareholders’ rights or foreclose the share pledge according to the contractual arrangements may be impaired. If these
or other disputes between the shareholders of the VIE and third parties were to impair our control over the VIE, our ability to consolidate
the financial results of the VIE would be affected, which would in turn result in a material adverse effect on the business, operations
and financial condition.
Our PRC counsel, Shaanxi Jiameng Law Firm, has
advised us that the ownership structure of the PRC entities does not violate PRC laws or regulations currently in effect, and that the
contractual arrangements are valid, binding and enforceable, and do not result in any violation of PRC laws or regulations currently in
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
financial results of the VIE would be affected, which would in turn result in a material adverse effect on the business, operations
and financial condition.
Our PRC counsel, Shaanxi Jiameng Law Firm, has
advised us that the ownership structure of the PRC entities does not violate PRC laws or regulations currently in effect, and that the
contractual arrangements are valid, binding and enforceable, and do not result in any violation of PRC laws or regulations currently in
effect. However, there are substantial uncertainties regarding the interpretation and application of current PRC Laws, and there can be
no assurance that the PRC government will ultimately take a view that is consistent with such opinion.
If (i) the applicable PRC authorities invalidate
these contractual arrangements for violation of PRC laws, rules and regulations, (ii) any variable interest entity or its shareholders
terminate the contractual arrangements or (iii) any variable interest entity or its shareholders fail to perform its/his/her obligations
under these contractual arrangements, our business operations in China would be materially and adversely affected, and the value of your
shares would substantially decrease. Further, if we fail to renew these contractual arrangements upon their expiration, we would not be
able to continue our business
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
contractual arrangements for violation of PRC laws, rules and regulations, (ii) any variable interest entity or its shareholders
terminate the contractual arrangements or (iii) any variable interest entity or its shareholders fail to perform its/his/her obligations
under these contractual arrangements, our business operations in China would be materially and adversely affected, and the value of your
shares would substantially decrease. Further, if we fail to renew these contractual arrangements upon their expiration, we would not be
able to continue our business operations unless the then current PRC law allows us to directly operate businesses in China.
In addition, if any variable interest entity or
all or part of its assets become subject to liens or rights of third-party creditors, we may be unable to continue some or all of our
business activities, which could materially and adversely affect our business, financial condition and results of operations. If our variable
interest entity undergoes a voluntary or involuntary liquidation proceeding, its shareholders or unrelated third-party creditors may claim
rights to some or all of their assets, thereby hindering our ability to operate our business, which could materially and adversely affect
our business and our ability to generate revenues.
34
All of these contractual arrangements are governed
by PRC law and provide for the resolution
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
business activities, which could materially and adversely affect our business, financial condition and results of operations. If our variable
interest entity undergoes a voluntary or involuntary liquidation proceeding, its shareholders or unrelated third-party creditors may claim
rights to some or all of their assets, thereby hindering our ability to operate our business, which could materially and adversely affect
our business and our ability to generate revenues.
34
All of these contractual arrangements are governed
by PRC law and provide for the resolution of disputes through arbitration in the PRC. The legal environment in the PRC is not as developed
as in some other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could limit our ability
to enforce these contractual arrangements. In the event we are unable to enforce these contractual arrangements, we may not be able to
exert effective control over our operating entity and we may be precluded from operating our business, which would have a material adverse
effect on our financial condition and results of operations.
We are a holding company, and will rely on dividends paid
by our subsidiaries for our cash needs. Any limitation on the ability of our subsidiaries to make dividend payments to us, or any tax
implications of making dividend payments
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
the event we are unable to enforce these contractual arrangements, we may not be able to
exert effective control over our operating entity and we may be precluded from operating our business, which would have a material adverse
effect on our financial condition and results of operations.
We are a holding company, and will rely on dividends paid
by our subsidiaries for our cash needs. Any limitation on the ability of our subsidiaries to make dividend payments to us, or any tax
implications of making dividend payments to us, could limit our ability to pay our parent company expenses or pay dividends to holders
of our common stock.
We are a holding company and conduct substantially
all of our business through our PRC subsidiary, which is a limited liability company established in China. We may rely on dividends to
be paid by our PRC subsidiary to fund our cash and financing requirements, including the funds necessary to pay dividends and other cash
distributions to our shareholders, to service any debt we may incur and to pay our operating expenses. If our PRC subsidiary incurs debt
on its own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions
to us.
Under PRC laws and regulations, our PRC subsidiary,
which
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
on dividends to
be paid by our PRC subsidiary to fund our cash and financing requirements, including the funds necessary to pay dividends and other cash
distributions to our shareholders, to service any debt we may incur and to pay our operating expenses. If our PRC subsidiary incurs debt
on its own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions
to us.
Under PRC laws and regulations, our PRC subsidiary,
which is a wholly foreign-owned enterprise in China, may pay dividends only out of its accumulated profits as determined in accordance
with PRC accounting standards and regulations. In addition, a wholly foreign-owned enterprise is required to set aside at least 10% of
its accumulated after-tax profits each year, if any, to fund a certain statutory reserve fund, until the aggregate amount of such fund
reaches 50% of its registered capital.
Our PRC subsidiary generates primarily all of
its revenue in Renminbi, which is not freely convertible into other currencies. As a result, any restriction on currency exchange may
limit the ability of our PRC subsidiary to use its Renminbi revenues to pay dividends to us. The PRC government may continue to strengthen
its capital
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
each year, if any, to fund a certain statutory reserve fund, until the aggregate amount of such fund
reaches 50% of its registered capital.
Our PRC subsidiary generates primarily all of
its revenue in Renminbi, which is not freely convertible into other currencies. As a result, any restriction on currency exchange may
limit the ability of our PRC subsidiary to use its Renminbi revenues to pay dividends to us. The PRC government may continue to strengthen
its capital controls, and more restrictions and substantial vetting process may be put forward by State Administration of Foreign Exchange
for cross-border transactions falling under both the current account and the capital account. Any limitation on the ability of our PRC
subsidiary to pay dividends or make other kinds of payments to us could materially and adversely limit our ability to grow, make investments
or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.
In addition, the Enterprise Income Tax Law and
its implementation rules provide that a withholding tax rate of up to 10% will be applicable to dividends payable by Chinese companies
to non-PRC-resident enterprises unless otherwise exempted or reduced according to treaties or arrangements between the PRC central government
and
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
of payments to us could materially and adversely limit our ability to grow, make investments
or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.
In addition, the Enterprise Income Tax Law and
its implementation rules provide that a withholding tax rate of up to 10% will be applicable to dividends payable by Chinese companies
to non-PRC-resident enterprises unless otherwise exempted or reduced according to treaties or arrangements between the PRC central government
and governments of other countries or regions where the non-PRC resident enterprises are incorporated. Any limitation on the ability of
our PRC subsidiary to pay dividends or make other distributions to us could materially and adversely limit our ability to grow, make investments
or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.
We may not be able to consolidate the financial
results of our affiliated companies or such consolidation could materially and adversely affect our operating results and financial condition.
Our business is conducted through Guangsha, which
is considered a VIE for accounting purposes, and we, through Shaanxi HGS, are considered the primary beneficiary, thus enabling us
to consolidate our financial results in our consolidated financial statements. In the event that
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
to our business, pay dividends, or otherwise fund and conduct our business.
We may not be able to consolidate the financial
results of our affiliated companies or such consolidation could materially and adversely affect our operating results and financial condition.
Our business is conducted through Guangsha, which
is considered a VIE for accounting purposes, and we, through Shaanxi HGS, are considered the primary beneficiary, thus enabling us
to consolidate our financial results in our consolidated financial statements. In the event that in the future a company we hold as a
VIE no longer meets the definition of a VIE under applicable accounting rules, or we are deemed not to be the primary beneficiary, we
would not be able to consolidate line by line that entity’s financial results in our consolidated financial statements for reporting
purposes. Also, if in the future an affiliate company becomes a VIE and we become the primary beneficiary, we would be required to consolidate
that entity’s financial results in our consolidated financial statements for accounting purposes. If such entity’s financial
results were negative, this would have a corresponding negative impact on our operating results for reporting purposes.
35
Because we rely on the Contractual Arrangements
for our revenue, the termination of these agreements would severely and detriment
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
financial statements for reporting
purposes. Also, if in the future an affiliate company becomes a VIE and we become the primary beneficiary, we would be required to consolidate
that entity’s financial results in our consolidated financial statements for accounting purposes. If such entity’s financial
results were negative, this would have a corresponding negative impact on our operating results for reporting purposes.
35
Because we rely on the Contractual Arrangements
for our revenue, the termination of these agreements would severely and detrimentally affect our continuing business viability under our
current corporate structure.
We are a holding
company, and all of our business operations are conducted through the Contractual Arrangements. Although Guangsha does not have termination
rights pursuant to the Contractual Arrangements, it could terminate, or refuse to perform under, the Contractual Arrangements. Because
neither we, nor our subsidiaries, own equity interests of Guangsha, the termination or non-performance of the Contractual Arrangements
would sever our ability to consolidate Guangsha and to receive payments from them under our current holding company structure. While we
are currently not aware of any event or reason that may cause the Contractual Arrangements to terminate, we cannot assure you that such
an event or
|
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