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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:
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 reason will not occur in the future. In the event that the Contractual Arrangements are terminated, this would have a severe
and detrimental effect on our continuing business viability under our current corporate structure, which, in turn, would affect the value
of your investment.
Contractual arrangements in relation to our
VIE may be subject to scrutiny by the PRC tax authorities and they may determine that we or our VIE owe additional taxes, which could
negatively affect our financial condition and the value of your investment.
Under applicable PRC laws and regulations, arrangements
and transactions among related parties may be subject to audit or challenge by the PRC tax authorities within ten years after the taxable
year when the transactions are conducted. We could face material and adverse tax consequences
|
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:
ual arrangements in relation to our
VIE may be subject to scrutiny by the PRC tax authorities and they may determine that we or our VIE owe additional taxes, which could
negatively affect our financial condition and the value of your investment.
Under applicable PRC laws and regulations, arrangements
and transactions among related parties may be subject to audit or challenge by the PRC tax authorities within ten years after the taxable
year when the transactions are conducted. We could face material and adverse tax consequences if the PRC tax authorities determine that
the VIE contractual arrangements were not entered into on an arm’s-length basis in such a way as to result in an impermissible reduction
in taxes under applicable PRC laws, rules and regulations, and adjust the income of our VIE in the form of a transfer pricing adjustment.
The PRC tax authorities could effectively disregard our VIE structure, resulting in increased tax liabilities. A transfer pricing adjustment
could, among other things, result in a reduction of expense deductions recorded by our VIE for PRC tax purposes, which could in turn increase
tax liabilities without reducing our tax expenses. In addition, the PRC tax authorities may impose late payment fees and other penalties
on our VIE for the adjusted but unpaid taxes according
|
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:
IE in the form of a transfer pricing adjustment.
The PRC tax authorities could effectively disregard our VIE structure, resulting in increased tax liabilities. A transfer pricing adjustment
could, among other things, result in a reduction of expense deductions recorded by our VIE for PRC tax purposes, which could in turn increase
tax liabilities without reducing our tax expenses. In addition, the PRC tax authorities may impose late payment fees and other penalties
on our VIE for the adjusted but unpaid taxes according to the applicable regulations. Our financial position could be materially and adversely
affected if our VIE’s tax liabilities increase or if it is required to pay late payment fees and other penalties.
We conduct our business through Guangsha
by means of Contractual Arrangements. If the PRC courts or administrative authorities determine that these contractual arrangements do
not comply with applicable regulations, we could be subject to severe penalties and our business could be adversely affected. In addition,
changes in such PRC laws and regulations may materially and adversely affect our business.
There are uncertainties regarding the interpretation
and application of PRC laws, rules and regulations, including the laws, rules and regulations governing the validity and enforcement of
the Contractual Arrangements between Shaanxi HGS and Guang
|
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 courts or administrative authorities determine that these contractual arrangements do
not comply with applicable regulations, we could be subject to severe penalties and our business could be adversely affected. In addition,
changes in such PRC laws and regulations may materially and adversely affect our business.
There are uncertainties regarding the interpretation
and application of PRC laws, rules and regulations, including the laws, rules and regulations governing the validity and enforcement of
the Contractual Arrangements between Shaanxi HGS and Guangsha. We have been advised by our PRC counsel, the Shaanxi Jiameng Law Firm,
based on their understanding of the current PRC laws, rules and regulations, that (i) the structure for operating our business in China
(including our corporate structure and Contractual Arrangements with Shaanxi HGS, Guangsha and its shareholders) will not result in any
violation of PRC laws or regulations currently in effect; and (ii) the Contractual Arrangements among Shaanxi HGS and Guangsha and its
shareholders governed by PRC law are valid, binding and enforceable, and will not result in any violation of PRC laws or regulations currently
in effect. However, there are substantial uncertainties regarding the interpretation
|
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 with Shaanxi HGS, Guangsha and its shareholders) will not result in any
violation of PRC laws or regulations currently in effect; and (ii) the Contractual Arrangements among Shaanxi HGS and Guangsha and its
shareholders governed by PRC law are valid, binding and enforceable, and will 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 or future PRC laws and
regulations concerning foreign investment in the PRC, and their application to and effect on the legality, binding effect and enforceability
of the contractual arrangements. In particular, we cannot rule out the possibility that PRC regulatory authorities, courts or arbitral
tribunals may in the future adopt a different or contrary interpretation or take a view that is inconsistent with the opinion of our PRC
legal counsel. Therefore, the Contractual Arrangements may be determined by PRC authorities to be inconsistent with the laws and regulations
of the PRC, including those related to foreign investment in certain industries.
If any of our PRC entities or their ownership
structure or the Contractual Arrangements are determined to be 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:
, courts or arbitral
tribunals may in the future adopt a different or contrary interpretation or take a view that is inconsistent with the opinion of our PRC
legal counsel. Therefore, the Contractual Arrangements may be determined by PRC authorities to be inconsistent with the laws and regulations
of the PRC, including those related to foreign investment in certain industries.
If any of our PRC entities or their ownership
structure or the Contractual Arrangements are determined to be in violation of any existing or future PRC laws, rules or regulations,
or any of our PRC entities fail to obtain or maintain any of the required governmental permits or approvals, the relevant PRC regulatory
authorities would have broad discretion in dealing with such violations, including:
revoking the business and operating licenses;
36
discontinuing or restricting the operations;
imposing conditions or requirements with which the PRC entities may not be able to comply;
requiring us and our PRC entities to restructure the relevant ownership structure or operations, including
termination of the contractual arrangements with our VIE and deregistering the equity pledge of our VIE, which in turn would affect our
ability to consolidate, derive economic interests from, or exert effective control our 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:
oking the business and operating licenses;
36
discontinuing or restricting the operations;
imposing conditions or requirements with which the PRC entities may not be able to comply;
requiring us and our PRC entities to restructure the relevant ownership structure or operations, including
termination of the contractual arrangements with our VIE and deregistering the equity pledge of our VIE, which in turn would affect our
ability to consolidate, derive economic interests from, or exert effective control our VIE;
imposing fines or confiscating the income from our PRC subsidiaries or our VIE.
The imposition of any of these penalties would
severely disrupt our ability to conduct business and have a material adverse effect on our financial condition, results of operations
and prospects.
The shareholders of our VIE may have actual
or potential conflicts of interest with us and as a result may refuse to perform, or may breach, the Contractual Arrangements, which may
materially and adversely affect our business and financial condition.
The shareholders of our VIE may have actual or
potential conflicts of interest with us. These shareholders may refuse to perform or sign or may breach, or cause our VIE to breach, or
refuse to renew, the existing Contractual Arrang
|
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 our VIE may have actual
or potential conflicts of interest with us and as a result may refuse to perform, or may breach, the Contractual Arrangements, which may
materially and adversely affect our business and financial condition.
The shareholders of our VIE may have actual or
potential conflicts of interest with us. These shareholders may refuse to perform or sign or may breach, or cause our VIE to breach, or
refuse to renew, the existing Contractual Arrangements, which would have a material and adverse effect on our ability to effectively control
our VIE and receive economic benefits from it. As a result, control over, and funds due from, our VIE may be jeopardized if the shareholders
of our VIE breach, or refuse to renew, the Contractual Arrangements. For example, the shareholders may be able to cause our agreements
with our VIE to be performed in a manner adverse to us by, among other things, failing to remit payments due under the contractual arrangements
to us on a timely basis. We cannot assure you that when conflicts of interest arise any or all of these shareholders will act in the best
interests of our Company or such conflicts will be resolved in our favor. Currently
|
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 refuse to renew, the Contractual Arrangements. For example, the shareholders may be able to cause our agreements
with our VIE to be performed in a manner adverse to us by, among other things, failing to remit payments due under the contractual arrangements
to us on a timely basis. We cannot assure you that when conflicts of interest arise any or all of these shareholders will act in the best
interests of our Company or such conflicts will be resolved in our favor. Currently, we do not have any arrangements to address potential
conflicts of interest between these shareholders and our Company. If we cannot resolve any conflict of interest or dispute between us
and these shareholders, we would have to rely on legal proceedings, which could result in disruption of our business and subject us to
substantial uncertainty as to the outcome of any such legal proceedings.
Any failure by our VIE or its shareholders to perform their obligations
under the Contractual Arrangements, or any unauthorized use of indicia of corporate power or authority, would have a material adverse
effect on our business.
We refer to the shareholders of our VIE as its
nominee shareholders because although they remain the holders of equity interests on record in our VIE, pursuant to the terms 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:
and subject us to
substantial uncertainty as to the outcome of any such legal proceedings.
Any failure by our VIE or its shareholders to perform their obligations
under the Contractual Arrangements, or any unauthorized use of indicia of corporate power or authority, would have a material adverse
effect on our business.
We refer to the shareholders of our VIE as its
nominee shareholders because although they remain the holders of equity interests on record in our VIE, pursuant to the terms of the relevant
power of attorney, such shareholders have irrevocably authorized the individual appointed by Shaanxi HGS to exercise their rights as a
shareholder of the VIE. If our VIE or its shareholders fail to perform their respective obligations under the Contractual Arrangements
or if any physical instruments, such as chops and seals, or other indicia of corporate power or authority, are used without our authorization,
we may have to incur substantial costs and expend additional resources to seek legal remedies under PRC laws, including specific performance
or injunctive relief, and/or claiming damages, which we cannot assure you will be effective under PRC laws. For example, if the shareholders
of our VIE were to refuse to transfer their equity interest in 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:
angements
or if any physical instruments, such as chops and seals, or other indicia of corporate power or authority, are used without our authorization,
we may have to incur substantial costs and expend additional resources to seek legal remedies under PRC laws, including specific performance
or injunctive relief, and/or claiming damages, which we cannot assure you will be effective under PRC laws. For example, if the shareholders
of our VIE were to refuse to transfer their equity interest in the VIE to us or our designee if we exercise the purchase option pursuant
to the Contractual Arrangements, or if they were otherwise to act in bad faith toward us, then we may have to take legal action to compel
them to perform their contractual obligations.
The Contractual Arrangements are governed by PRC
laws. Accordingly, any disputes would be resolved in accordance with PRC legal procedures. The legal environment in the PRC is not as
developed as in other jurisdictions, such as the U.S. As a result, uncertainties in the PRC legal system could limit our ability to enforce
the Contractual Arrangements or could affect the validity of the Contractual Arrangements, and as a result we may not be able to exert
|
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 are governed by PRC
laws. Accordingly, any disputes would be resolved in accordance with PRC legal procedures. The legal environment in the PRC is not as
developed as in other jurisdictions, such as the U.S. As a result, uncertainties in the PRC legal system could limit our ability to enforce
the Contractual Arrangements or could affect the validity of the Contractual Arrangements, and as a result we may not be able to exert
effective control over our VIE, and our ability to conduct our business may therefore be materially adversely affected.
37
Our current corporate structure and business operations may be
affected by the newly enacted Foreign Investment Law.
On March 15, 2019, the National People’s
Congress approved the Foreign Investment Law, which took effect on January 1, 2020. Since it is relatively new, uncertainties exist in
relation to its interpretation and its implementation rules that are yet to be issued. The Foreign Investment Law does not explicitly
classify whether variable interest entities that are controlled through contractual arrangements would be deemed as foreign-invested enterprises
if they are ultimately “controlled” by foreign investors. However, it has a catch-all provision under definition of “foreign
investment
|
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:
Congress approved the Foreign Investment Law, which took effect on January 1, 2020. Since it is relatively new, uncertainties exist in
relation to its interpretation and its implementation rules that are yet to be issued. The Foreign Investment Law does not explicitly
classify whether variable interest entities that are controlled through contractual arrangements would be deemed as foreign-invested enterprises
if they are ultimately “controlled” by foreign investors. However, it has a catch-all provision under definition of “foreign
investment” that includes investments made by foreign investors in China through other means as provided by laws, administrative
regulations or the State Council of the PRC, or the State Council. Therefore, it still leaves leeway for future laws, administrative regulations
or provisions of the State Council to provide for contractual arrangements as a form of foreign investment. Therefore, there can be no
assurance that our control over our VIE through contractual arrangements will not be deemed as a foreign investment in the future.
The Foreign Investment Law grants national treatment
to foreign-invested entities, except for those foreign-invested entities that operate in industries specified as either “restricted”
or “prohibited” from foreign investment in a “negative list”. The Foreign Investment Law provides that foreign-invested
|
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 provide for contractual arrangements as a form of foreign investment. Therefore, there can be no
assurance that our control over our VIE through contractual arrangements will not be deemed as a foreign investment in the future.
The Foreign Investment Law grants national treatment
to foreign-invested entities, except for those foreign-invested entities that operate in industries specified as either “restricted”
or “prohibited” from foreign investment in a “negative list”. The Foreign Investment Law provides that foreign-invested
entities operating in “restricted” or “prohibited” industries will require market entry clearance and other approvals
from relevant PRC government authorities. If our control over our VIE through contractual arrangements are deemed as foreign investment
in the future, and any business of our VIE is “restricted” or “prohibited” from foreign investment under the “negative
list” effective at the time, we may be deemed to be in violation of the Foreign Investment Law, the contractual arrangements that
allow us to have control over our VIE may be deemed as invalid and illegal, and we may be required to unwind such contractual arrangements
and/or restructure our business operations, any of which may have a material adverse effect on our business operations. In addition,
as the Chinese
|
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:
is “restricted” or “prohibited” from foreign investment under the “negative
list” effective at the time, we may be deemed to be in violation of the Foreign Investment Law, the contractual arrangements that
allow us to have control over our VIE may be deemed as invalid and illegal, and we may be required to unwind such contractual arrangements
and/or restructure our business operations, any of which may have a material adverse effect on our business operations. In addition,
as the Chinese government has been updating the Negative List in recent years and reducing the sectors prohibited or restricted for foreign
investment, it is probable in the future that, even if our VIE is identified as a FIE, it is still allowed to acquire or hold equity of
enterprises in sectors currently prohibited or restricted for foreign investment.
Furthermore, the PRC Foreign Investment Law provides
that foreign invested enterprises established according to the existing laws regulating foreign investment may maintain their structure
and corporate governance within five years after the implementing of the PRC Foreign Investment Law.
In addition, the PRC Foreign Investment Law also
provides several protective rules and principles for foreign investors and their investments in the PRC, including, among others, that
a foreign investor may freely transfer into or out 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:
sectors currently prohibited or restricted for foreign investment.
Furthermore, the PRC Foreign Investment Law provides
that foreign invested enterprises established according to the existing laws regulating foreign investment may maintain their structure
and corporate governance within five years after the implementing of the PRC Foreign Investment Law.
In addition, the PRC Foreign Investment Law also
provides several protective rules and principles for foreign investors and their investments in the PRC, including, among others, that
a foreign investor may freely transfer into or out of China, in Renminbi or a foreign currency, its contributions, profits, capital gains,
income from disposition of assets, royalties of intellectual property rights, indemnity or compensation lawfully acquired, and income
from liquidation, among others, within China; local governments shall abide by their commitments to the foreign investors; governments
at all levels and their departments shall enact local normative documents concerning foreign investment in compliance with laws and regulations
and shall not impair legitimate rights and interests, impose additional obligations onto FIEs, set market access restrictions and exit
conditions, or intervene with the normal production and operation activities of FIEs; except for special circumstances, in which case
statutory procedures shall be followed and fair and reasonable compensation shall be made in a timely manner,
|
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 their commitments to the foreign investors; governments
at all levels and their departments shall enact local normative documents concerning foreign investment in compliance with laws and regulations
and shall not impair legitimate rights and interests, impose additional obligations onto FIEs, set market access restrictions and exit
conditions, or intervene with the normal production and operation activities of FIEs; except for special circumstances, in which case
statutory procedures shall be followed and fair and reasonable compensation shall be made in a timely manner, expropriation or requisition
of the investment of foreign investors is prohibited; and mandatory technology transfer is prohibited.
Notwithstanding the above, the PRC Foreign Investment
Law stipulates that foreign investment includes “foreign investors invest through any other methods under laws, administrative regulations
or provisions prescribed by the State Council”. Therefore, there are possibilities that future laws, administrative regulations
or provisions prescribed by the State Council may regard contractual arrangements as a form of foreign investment, and then whether our
contractual arrangement will be recognized as a foreign investment, whether our contractual arrangement will be deemed to be in violation
of the foreign investment access requirements and how the above-mentioned contractual arrangement will be handled are uncertain.
38
The Chinese government may exercise significant
oversight influence over
|
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:
provisions prescribed by the State Council”. Therefore, there are possibilities that future laws, administrative regulations
or provisions prescribed by the State Council may regard contractual arrangements as a form of foreign investment, and then whether our
contractual arrangement will be recognized as a foreign investment, whether our contractual arrangement will be deemed to be in violation
of the foreign investment access requirements and how the above-mentioned contractual arrangement will be handled are uncertain.
38
The Chinese government may exercise significant
oversight influence over the manner in which we must conduct our business activities. We are currently not required to obtain approval
from Chinese authorities to list on U.S. exchanges, however, if our VIE or the holding company were required to obtain approval in the
future and were denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to continue listing on U.S.
exchange, which would materially affect the interest of the investors.
The Chinese government has exercised and continues
to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability
to operate through our VIE in China may be harmed by changes in its laws and regulations, including those relating to taxation, environmental
regulations, land use rights, property and other matters
|
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 to list on U.S. exchanges, we will not be able to continue listing on U.S.
exchange, which would materially affect the interest of the investors.
The Chinese government has exercised and continues
to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability
to operate through our VIE in China may be harmed by changes in its laws and regulations, including those relating to taxation, environmental
regulations, land use rights, property and other matters. The central or local governments of these jurisdictions may impose new, stricter
regulations or interpretations of existing regulations that would require additional expenditures and efforts on our part to ensure our
compliance with such regulations or interpretations. Accordingly, government actions in the future, including any decision not to continue
to support recent economic reforms and to return to a more centrally planned economy or regional or local variations in the implementation
of economic policies, could have a significant effect on economic conditions in China or particular regions thereof, and could require
us to divest ourselves of any interest we then hold in Chinese properties.
For example, the Chinese cybersecurity regulator
announced on July 2021 that it had begun an investigation of Didi Global Inc. (NYSE: DIDI) and two days
|
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 continue
to support recent economic reforms and to return to a more centrally planned economy or regional or local variations in the implementation
of economic policies, could have a significant effect on economic conditions in China or particular regions thereof, and could require
us to divest ourselves of any interest we then hold in Chinese properties.
For example, the Chinese cybersecurity regulator
announced on July 2021 that it had begun an investigation of Didi Global Inc. (NYSE: DIDI) and two days later ordered that the company’s
app was removed from smartphone app stores. On July 24, 2021, the General Office of the Communist Party of China Central Committee and
the General Office of the State Council jointly released the Guidelines for Further Easing the Burden of Excessive Homework and Off-campus
Tutoring for Students at the Stage of Compulsory Education, pursuant to which foreign investment in such firms via mergers and acquisitions,
franchise development, and variable interest entities are banned from this sector.
We believe that our operations in China are in
material compliance with all applicable legal and regulatory requirements. However, the Company’s business segments may be
subject to various government and regulatory interference in the provinces in which they operate. Green Giant Inc. could be subject
|
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:
Excessive Homework and Off-campus
Tutoring for Students at the Stage of Compulsory Education, pursuant to which foreign investment in such firms via mergers and acquisitions,
franchise development, and variable interest entities are banned from this sector.
We believe that our operations in China are in
material compliance with all applicable legal and regulatory requirements. However, the Company’s business segments may be
subject to various government and regulatory interference in the provinces in which they operate. Green Giant Inc. could be subject to regulation
by various political and regulatory entities, including various local and municipal agencies and government sub-divisions. Green Giant Inc.
may incur increased costs necessary to comply with existing and newly adopted laws and regulations or penalties for any failure to comply, 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
Furthermore, it is uncertain when and whether
the Company will be required to obtain permission from the PRC government to list on U.S. exchanges in the future, and even when such
permission is obtained, whether it will be denied or rescinded. Although the Company is currently not required to obtain permission 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:
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
Furthermore, it is uncertain when and whether
the Company will be required to obtain permission from the PRC government to list on U.S. exchanges in the future, and even when such
permission is obtained, whether it will be denied or rescinded. Although the Company is currently not required to obtain permission from
any of the PRC federal or local government to obtain such permission and has not received any denial to list on the U.S. exchange, our
operations could be adversely affected, directly or indirectly, by existing or future laws and regulations relating to its business or
industry, which could result in a material adverse change in the value of our securities, potentially rendering it worthless. As a result,
both you and us face uncertainty about future actions by the PRC government that could significantly affect our ability to offer or continue
to offer securities to investors and cause the value of our securities to significantly decline or be worthless.
If any of our affiliated entities becomes
the subject of a bankruptcy or liquidation proceeding, we may lose the ability to use and enjoy assets held by such entity
|
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:
which could result in a material adverse change in the value of our securities, potentially rendering it worthless. As a result,
both you and us face uncertainty about future actions by the PRC government that could significantly affect our ability to offer or continue
to offer securities to investors and cause the value of our securities to significantly decline or be worthless.
If any of our affiliated entities becomes
the subject of a bankruptcy or liquidation proceeding, we may lose the ability to use and enjoy assets held by such entity, which could
materially and adversely affect our business, financial condition and results of operations.
We currently conduct our operations in China through
our Contractual Arrangements. As part of these arrangements, substantially all of our assets that are significant to the operation of
our business are held by our VIE. If the becomes bankrupt and all or part of its 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. In addition, if any of our affiliated entities undergoes a voluntary or involuntary liquidation proceeding,
its equity owner or unrelated third-party creditors may claim rights relating to some or all of these assets, 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:
are held by our VIE. If the becomes bankrupt and all or part of its 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. In addition, if any of our affiliated entities undergoes a voluntary or involuntary liquidation proceeding,
its equity owner or unrelated third-party creditors may claim rights relating to some or all of these assets, which would hinder our ability
to operate our business and could materially and adversely affect our business, our ability to generate revenue and the market price of
our common stock.
39
Risks Relating to our Securities
We have never paid cash dividends and are not likely to do so
in the foreseeable future.
We have never declared or paid any cash dividends
on our common stock. We currently intend to retain any future earnings for use in the operation and expansion of our business. We do not
expect to pay any cash dividends in the foreseeable future but will review this policy as circumstances dictate.
We may be subject to the penny stock rules which
will make the shares of our common stock more difficult to sell.
We may be subject now and in the future 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:
in the foreseeable future.
We have never declared or paid any cash dividends
on our common stock. We currently intend to retain any future earnings for use in the operation and expansion of our business. We do not
expect to pay any cash dividends in the foreseeable future but will review this policy as circumstances dictate.
We may be subject to the penny stock rules which
will make the shares of our common stock more difficult to sell.
We may be subject now and in the future to the
SEC’s “penny stock” rules if our shares of common stock sell below $1.00 per share. Penny stocks generally are
equity securities with a price of less than $1.00. The penny stock rules require broker-dealers to deliver a standardized risk disclosure
document prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market.
The broker-dealer must also provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer
and its salesperson, and monthly account statements showing the market value of each penny stock held in the customer’s account.
The bid and offer quotations, and the broker-dealer and salesperson compensation information must be given 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:
risk disclosure
document prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market.
The broker-dealer must also provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer
and its salesperson, and monthly account statements showing the market value of each penny stock held in the customer’s account.
The bid and offer quotations, and the broker-dealer and salesperson compensation information must be given to the customer orally or in
writing prior to completing the transaction and must be given to the customer in writing before or with the customer’s confirmation.
On June 21, 2019, the “Company received
a letter from the Listing Qualifications staff of The Nasdaq Stock Market (“Nasdaq”) notifying the Company that it is no longer
in compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market. Nasdaq Listing Rule 5550(a)(2) requires
listed companies to maintain a minimum bid price of $1.00 per share. The letter noted that the bid price of the Company’s common
stock was below $1.00 for the 30-day period ending June 20, 2019. The notification letter
|
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:
(“Nasdaq”) notifying the Company that it is no longer
in compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market. Nasdaq Listing Rule 5550(a)(2) requires
listed companies to maintain a minimum bid price of $1.00 per share. The letter noted that the bid price of the Company’s common
stock was below $1.00 for the 30-day period ending June 20, 2019. The notification letter has no immediate effect on the Company’s
listing on the Nasdaq Capital Market. Nasdaq has provided the Company with 180 days, or until January 14, 2020, to regain compliance
with the minimum bid price requirement by having a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business
days. On December 19, 2019, Nasdaq determined that the Company is eligible for an additional 180 calendar day period, or until June 15,
2020, to regain compliance. Given the extraordinary market conditions caused by COVID-19, Nasdaq has determined to toll the compliance
periods for bid price and market value of publicly held shares requirements through June 30, 2020. 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:
least $1.00 per share for a minimum of 10 consecutive business
days. On December 19, 2019, Nasdaq determined that the Company is eligible for an additional 180 calendar day period, or until June 15,
2020, to regain compliance. Given the extraordinary market conditions caused by COVID-19, Nasdaq has determined to toll the compliance
periods for bid price and market value of publicly held shares requirements through June 30, 2020. In that regard, on April 16,
2020, Nasdaq filed an immediately effective rule change with the Securities and Exchange Commission. Accordingly, the Company had
until August 31, 2020, to regain compliance. On November 2, 2020, NASDAQ advised the Company that so long as it remains in compliance
with NASDAQ continued listing standards until March 1, 2021, NASDAQ would grant the Company continued listing on NASDAQ. Should the company
fail to demonstrate compliance with Nasdaq Listing Rule 5550(a)(2) by that date, the Panel will issue a final delist determination and
the Company will be suspended from trading on The Nasdaq Stock Market. Green Giant Inc. maintained compliance through March 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:
NASDAQ advised the Company that so long as it remains in compliance
with NASDAQ continued listing standards until March 1, 2021, NASDAQ would grant the Company continued listing on NASDAQ. Should the company
fail to demonstrate compliance with Nasdaq Listing Rule 5550(a)(2) by that date, the Panel will issue a final delist determination and
the Company will be suspended from trading on The Nasdaq Stock Market. Green Giant Inc. maintained compliance through March 1, 2021.
In addition, the penny stock rules require
that prior to a transaction, the broker-dealer must make a special written determination that the penny stock is a suitable investment
for the purchaser and receive the purchaser’s written agreement to the transaction. The penny stock rules are burdensome and
may reduce purchases of any offerings and reduce the trading activity for shares of our common stock. As long as our shares of common
stock are subject to the penny stock rules, the holders of such shares of common stock may find it more difficult to sell their securities.
Our shares of common stock are very thinly
traded, and the price if traded may not reflect our value. There can be no assurance that there will be an active market for our shares
of common
|
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 burdensome and
may reduce purchases of any offerings and reduce the trading activity for shares of our common stock. As long as our shares of common
stock are subject to the penny stock rules, the holders of such shares of common stock may find it more difficult to sell their securities.
Our shares of common stock are very thinly
traded, and the price if traded may not reflect our value. There can be no assurance that there will be an active market for our shares
of common stock either now or in the future.
Our shares of common stock are very thinly traded,
and the price if traded may not reflect our value. There can be no assurance that there will be an active market for our shares of common
stock either now or in the future. The market liquidity will be dependent on the perception of our operating business and any steps that
our management might take to bring us to the awareness of investors. There can be no assurance given that there will be any awareness
generated. Consequently, investors may not be able to liquidate their investment or liquidate it at a price that reflects the value of
our business. If a more active market should develop, the price may be highly volatile. Because there may be a low price for our shares
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:
market liquidity will be dependent on the perception of our operating business and any steps that
our management might take to bring us to the awareness of investors. There can be no assurance given that there will be any awareness
generated. Consequently, investors may not be able to liquidate their investment or liquidate it at a price that reflects the value of
our business. If a more active market should develop, the price may be highly volatile. Because there may be a low price for our shares
of common stock, many brokerage firms may not be willing to effect transactions in the securities. Even if an investor finds a broker
willing to effect a transaction in the shares of our common stock, the combination of brokerage commissions, transfer fees, taxes, if
any, and any other selling costs may exceed the selling price. Further, many lending institutions will not permit the use of such shares
of common stock as collateral for any loans.
40
In addition, the securities markets have from
time to time experienced price and volume fluctuations that are not related to the operating performance of particular companies. As a
result, to the extent shareholders sell our shares in a negative market fluctuation, they may not receive a price per share that is based
solely upon our business performance
|
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:
other selling costs may exceed the selling price. Further, many lending institutions will not permit the use of such shares
of common stock as collateral for any loans.
40
In addition, the securities markets have from
time to time experienced price and volume fluctuations that are not related to the operating performance of particular companies. As a
result, to the extent shareholders sell our shares in a negative market fluctuation, they may not receive a price per share that is based
solely upon our business performance. We cannot guarantee that shareholders will not lose some or all of their investment in our common
stock.
Currently, we are listed on the NASDAQ Capital
Market. If our financial condition deteriorates, we may not meet continued listing standards on the NASDAQ Capital Market.
The NASDAQ Capital Market requires companies to
fulfill specific requirements in order for their shares to continue to be listed. In order to qualify for continued listing on the NASDAQ
Capital Market, we must meet the following criteria:
Our stockholders’ equity must be at least $2,500,000; or the market value of our listed securities
must be at least $35,000,000; or our net income from continuing operations in our last fiscal year (or two of the last three
|
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:
NASDAQ Capital Market requires companies to
fulfill specific requirements in order for their shares to continue to be listed. In order to qualify for continued listing on the NASDAQ
Capital Market, we must meet the following criteria:
Our stockholders’ equity must be at least $2,500,000; or the market value of our listed securities
must be at least $35,000,000; or our net income from continuing operations in our last fiscal year (or two of the last three fiscal years)
must have been at least $500,000;
The market value of our publicly held shares must be at least $1,000,000;
The minimum bid price for our shares must be at least $1.00 per share;
We must have at least 300 stockholders;
We must have at least 500,000 publicly held shares;
We must have at least 2 market makers; and
We must have adopted NASDAQ-mandated corporate governance measures, including a board of directors comprised
of a majority of independent directors, an Audit Committee comprised solely of independent directors and the adoption of a code of ethics
among other items.
Current, we are listed on the NASDAQ Capital Market,
but if we are delisted from the NASDAQ 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:
300 stockholders;
We must have at least 500,000 publicly held shares;
We must have at least 2 market makers; and
We must have adopted NASDAQ-mandated corporate governance measures, including a board of directors comprised
of a majority of independent directors, an Audit Committee comprised solely of independent directors and the adoption of a code of ethics
among other items.
Current, we are listed on the NASDAQ Capital Market,
but if we are delisted from the NASDAQ Capital Market at some later date, our stockholders could find it difficult to sell our shares.
In addition, if our common stock is delisted from the NASDAQ Capital Market at some later date, we may apply to have our common stock
quoted on the Bulletin Board or in the “pink sheets” maintained by the National Quotation Bureau, Inc. The Bulletin Board
and the “pink sheets” are generally considered to be less efficient markets than the NASDAQ Capital Market. In addition, if
our common stock is not so listed or are delisted at some later date, our common stock may be subject to the “penny stock”
regulations. These rules impose additional sales practice requirements on broker-dealers that sell low-priced securities to persons other
than established customers 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:
“pink sheets” maintained by the National Quotation Bureau, Inc. The Bulletin Board
and the “pink sheets” are generally considered to be less efficient markets than the NASDAQ Capital Market. In addition, if
our common stock is not so listed or are delisted at some later date, our common stock may be subject to the “penny stock”
regulations. These rules impose additional sales practice requirements on broker-dealers that sell low-priced securities to persons other
than established customers and institutional accredited investors and require the delivery of a disclosure schedule explaining the nature
and risks of the penny stock market. As a result, the ability or willingness of broker-dealers to sell or make a market in our common
stock might decline. If our common stock is delisted from the NASDAQ Capital Market at some later date or become subject to the penny
stock regulations, it is likely that the price of our shares would decline and that our stockholders would find it difficult to sell their
shares.
The requirements of being a public company
may strain our resources and divert management’s attention, which could have a material adverse effect on our business.
As a public company, we are subject to the reporting
requirements of the Securities Exchange Act of 1934, as amended
|
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:
from the NASDAQ Capital Market at some later date or become subject to the penny
stock regulations, it is likely that the price of our shares would decline and that our stockholders would find it difficult to sell their
shares.
The requirements of being a public company
may strain our resources and divert management’s attention, which could have a material adverse effect on our business.
As a public company, we are subject to the reporting
requirements of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Act, the
listing requirements of the securities exchange on which we list, and other applicable securities rules and regulations. Despite recent
reforms made possible by the JOBS Act, compliance with these rules and regulations will nonetheless increase our legal and financial compliance
costs, make some activities more difficult, time-consuming or costly and increase demand on our systems and resources. The Exchange Act
requires, among other things, that we file annual, quarterly, and current reports with respect to our business and operating results.
41
As a result of disclosure of information in this
annual report and in filings required of a public company, our business and financial condition will become more visible, which 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:
with these rules and regulations will nonetheless increase our legal and financial compliance
costs, make some activities more difficult, time-consuming or costly and increase demand on our systems and resources. The Exchange Act
requires, among other things, that we file annual, quarterly, and current reports with respect to our business and operating results.
41
As a result of disclosure of information in this
annual report and in filings required of a public company, our business and financial condition will become more visible, which we believe
may result in threatened or actual litigation, including by competitors and other third parties. If such claims are successful, our business
and operating results could be harmed, and even if the claims do not result in litigation or are resolved in our favor, these claims,
and the time and resources necessary to resolve them, could divert the resources of our management and adversely affect our business,
brand and reputation and results of operations.
The obligation to disclose information publicly
may put us at a disadvantage to competitors that are private companies which could have an adverse effect on our results of operations.
We are a reporting
company in the United States. As a reporting company, we are required to file periodic reports with the Securities and Exchange Commission
upon the occurrence of matters that are material to 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:
time and resources necessary to resolve them, could divert the resources of our management and adversely affect our business,
brand and reputation and results of operations.
The obligation to disclose information publicly
may put us at a disadvantage to competitors that are private companies which could have an adverse effect on our results of operations.
We are a reporting
company in the United States. As a reporting company, we are required to file periodic reports with the Securities and Exchange Commission
upon the occurrence of matters that are material to our Company and stockholders. In some cases, we are required to disclose material
agreements or results of financial operations that we would not be required to disclose if we were a private company. Our competitors
may have access to this information, which would otherwise be confidential. This may give them advantages in competing with our Company.
Similarly, as a U.S.-listed public company, we are governed by U.S. laws that our competitors, which are mostly private Chinese companies,
are not required to follow. To the extent compliance with U.S. laws increases our expenses or decreases our competitiveness against such
companies, this could affect our results of operations.
Securities analysts may not publish favorable
research or reports about our business or may publish no information at all, which could cause 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:
give them advantages in competing with our Company.
Similarly, as a U.S.-listed public company, we are governed by U.S. laws that our competitors, which are mostly private Chinese companies,
are not required to follow. To the extent compliance with U.S. laws increases our expenses or decreases our competitiveness against such
companies, this could affect our results of operations.
Securities analysts may not publish favorable
research or reports about our business or may publish no information at all, which could cause our stock price or trading volume to decline.
The trading market will be influenced to some
extent by the research and reports that industry or financial analysts publish about us and our business. We do not control these analysts.
As we are a reporting company in the United States, we may attract research coverage and the analysts who publish information about our
common stock will have had relatively little experience with us or our industry, which could affect their ability to accurately forecast
our results and could make it more likely that we fail to meet their estimates. In the event we obtain securities or industry analyst
coverage, if any of the analysts who cover us provide inaccurate or unfavorable research or issue an adverse opinion regarding our stock
price, our stock price could decline. If one or more of these analysts cease
|
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:
research coverage and the analysts who publish information about our
common stock will have had relatively little experience with us or our industry, which could affect their ability to accurately forecast
our results and could make it more likely that we fail to meet their estimates. In the event we obtain securities or industry analyst
coverage, if any of the analysts who cover us provide inaccurate or unfavorable research or issue an adverse opinion regarding our stock
price, our stock price could decline. If one or more of these analysts cease coverage of us or fail to publish reports covering us regularly,
we could lose visibility in the market, which in turn could cause our stock price or trading volume to decline and result in the loss
of all or a part of your investment in us.
ITEM 1B. Unresolved Staff Comments
None.
ITEM 2. Properties
Green Giant Inc.’s principal administrative, sales, and marketing
facilities are located at 6 Xinghan Road, 19th Floor, Hanzhong City, Shaanxi Province. Green Giant Inc. built the office building in which
its headquarters are located and owns the floor that houses its headquarters. In addition, the Company also owns a sales office in Yang
County. See Item 1. Business — Overview
|
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:
Unresolved Staff Comments
None.
ITEM 2. Properties
Green Giant Inc.’s principal administrative, sales, and marketing
facilities are located at 6 Xinghan Road, 19th Floor, Hanzhong City, Shaanxi Province. Green Giant Inc. built the office building in which
its headquarters are located and owns the floor that houses its headquarters. In addition, the Company also owns a sales office in Yang
County. See Item 1. Business — Overview.
42
ITEM 3. Legal Proceedings
There are six on-going legal proceedings to which
the Company is a party or in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than
5% of any class of voting securities of the Company, or security holder is a party adverse to the Company or has a material interest adverse
to the Company. Some of the Company’s property is the subject of on-going legal proceedings.
1)
Case between the labor contract dispute between Wangcang County Lexin
Labor Service Co., Ltd. and Zhejiang Hongcheng Construction Group Co., Ltd., Zhejiang Hongcheng Construction Group Co., Ltd. Xi 'an Branch
and Shaanxi Guangsha Investment
|
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 voting securities of the Company, or security holder is a party adverse to the Company or has a material interest adverse
to the Company. Some of the Company’s property is the subject of on-going legal proceedings.
1)
Case between the labor contract dispute between Wangcang County Lexin
Labor Service Co., Ltd. and Zhejiang Hongcheng Construction Group Co., Ltd., Zhejiang Hongcheng Construction Group Co., Ltd. Xi 'an Branch
and Shaanxi Guangsha Investment Development Group Co., Ltd. Hongcheng Company was judged to compensate Lexin Company, and Shaanxi Guangsha
Company was jointly and severally liable, with an execution amount of $3,373,867.
2)
Related to the above Case 1 disputes between Zhejiang Hongcheng Construction
Group Co., Ltd. and Shaanxi Guangsha Investment Development Group Co., Ltd. on the construction project contract. The execution target
of this case is $9,091,868 million inchuding $3,373,867 in Case 1.
3)
Case between Hantai District Commuity Center Hanzhong Urban Counsel
and Shaanxi Guangsha Investment Development Group Co., Ltd., which was ordered by Hanzhong Hantai
|
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:
hejiang Hongcheng Construction
Group Co., Ltd. and Shaanxi Guangsha Investment Development Group Co., Ltd. on the construction project contract. The execution target
of this case is $9,091,868 million inchuding $3,373,867 in Case 1.
3)
Case between Hantai District Commuity Center Hanzhong Urban Counsel
and Shaanxi Guangsha Investment Development Group Co., Ltd., which was ordered by Hanzhong Hantai District Court to the settle the amount
of $131,498 and it is still outstanding as at September 30, 2022..
4)
Case between Hanzhong City Puyang Plumber Agency Co., Ltd and Shaanxi Guangsha Investment Development Group Co., Ltd., was settled.
5)
Two individuals of property buyers Hanshen Lu & Xin Lu and Shaanxi Guangsha Investment Development Group Co., Ltd., was settled.
6)
Dispute between an disclosed property buyer and Shaanxi Guangsha Investment
Development Group Co., Ltd., which was ordered by local court to pay the plaintiff of $127,979 which is still outstanding as at September 30, 2022.
Green Giant Inc. acrrued $9,351,344 for 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:
., Ltd., was settled.
5)
Two individuals of property buyers Hanshen Lu & Xin Lu and Shaanxi Guangsha Investment Development Group Co., Ltd., was settled.
6)
Dispute between an disclosed property buyer and Shaanxi Guangsha Investment
Development Group Co., Ltd., which was ordered by local court to pay the plaintiff of $127,979 which is still outstanding as at September 30, 2022.
Green Giant Inc. acrrued $9,351,344 for the above six
cases in the current fiscal year as the contingency liabilities could not be quantified till nearby current fiscal year or within current
fiscal year as at September 30, 2022
ITEM 4. Mine Safety Disclosure
Not applicable.
43
PART II
Item 5. Market For Registrant’s Common Equity,
Related Stockholder Matters And Issuer Purchases Of Equity Securities
Market Information
Our common stock is currently quoted on the NASDAQ Capital Market under
the symbol “GGE.” Between September 13, 2010 and July 19, 2012, our common stock was quoted on the NASDAQ Global
Market under the symbol “HGSH.” Prior to our listing on the NASDAQ Global Market,
|
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:
II
Item 5. Market For Registrant’s Common Equity,
Related Stockholder Matters And Issuer Purchases Of Equity Securities
Market Information
Our common stock is currently quoted on the NASDAQ Capital Market under
the symbol “GGE.” Between September 13, 2010 and July 19, 2012, our common stock was quoted on the NASDAQ Global
Market under the symbol “HGSH.” Prior to our listing on the NASDAQ Global Market, our common stock was quoted on the OTC Bulletin
Board under the symbol “CAHS.” The following table sets forth the high and low sale prices for the Company’s common
stock for the periods indicated.
FISCAL 2022
High
Low
1st Quarter Ended December 31, 2021
2.06
1.97
2nd Quarter Ended March 31,2022
3.20
2.91
3rd Quarter Ended June 30, 2022
1.51
1.41
4th Quarter Ended September 30, 2022
1.21
1.05
FISCAL 2021
High
Low
1st Quarter Ended December 31, 2020
5
|
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:
Ended December 31, 2021
2.06
1.97
2nd Quarter Ended March 31,2022
3.20
2.91
3rd Quarter Ended June 30, 2022
1.51
1.41
4th Quarter Ended September 30, 2022
1.21
1.05
FISCAL 2021
High
Low
1st Quarter Ended December 31, 2020
5.40
0.99
2nd Quarter Ended March 31,2021
3.38
1.51
3rd Quarter Ended June 30, 2021
2.61
1.53
4th Quarter Ended September 30, 2021
2.82
1.40
Holders
According to the records of our transfer agent,
the Company had 310 stockholders of record as of September 30, 2022.
Dividends
All of our assets are located within the PRC.
Under the laws of the PRC governing foreign invested enterprises, dividend distributions and liquidating distributions are allowed but
subject to special procedures under relevant rules and regulations. Any dividend payment is subject to the approval of the
|
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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:
1
2.82
1.40
Holders
According to the records of our transfer agent,
the Company had 310 stockholders of record as of September 30, 2022.
Dividends
All of our assets are located within the PRC.
Under the laws of the PRC governing foreign invested enterprises, dividend distributions and liquidating distributions are allowed but
subject to special procedures under relevant rules and regulations. Any dividend payment is subject to the approval of the Board
of Directors and subject to foreign exchange rules governing such repatriation. Any liquidating distribution is subject to both the
relevant government agency’s approval and supervision, as well as foreign exchange controls.
We have never declared or paid any cash dividends
on our common stock and we do not expect to pay any cash dividends in the foreseeable future. We expect to retain any earnings to support
operations and to finance the growth and development of our business. Any future determination relating to our dividend policy
will be made at the discretion of our Board of Directors and will depend on a number of factors, including future earnings, capital requirements,
financial conditions and future prospects and other factors the Board of Directors may deem relevant. The payment of dividends
from
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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:
common stock and we do not expect to pay any cash dividends in the foreseeable future. We expect to retain any earnings to support
operations and to finance the growth and development of our business. Any future determination relating to our dividend policy
will be made at the discretion of our Board of Directors and will depend on a number of factors, including future earnings, capital requirements,
financial conditions and future prospects and other factors the Board of Directors may deem relevant. The payment of dividends
from our subsidiaries to our parent company is subject to restrictions including primarily the restriction that foreign invested enterprises
may only buy, sell and/or remit foreign currencies at those banks authorized to conduct foreign exchange business after providing valid
commercial documents.
PRC regulations restrict the ability of our PRC
subsidiary to make dividends and other payments to its offshore parent company. PRC legal restrictions permit payments of dividends
by our PRC subsidiary only out of its accumulated after-tax profits, if any, determined in accordance with PRC accounting standards and
regulations. Our PRC subsidiary is also required under PRC laws and regulations to allocate at least 10% of its annual after-tax
profits determined in accordance with PRC GAAP to a statutory general reserve fund until 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:
subsidiary to make dividends and other payments to its offshore parent company. PRC legal restrictions permit payments of dividends
by our PRC subsidiary only out of its accumulated after-tax profits, if any, determined in accordance with PRC accounting standards and
regulations. Our PRC subsidiary is also required under PRC laws and regulations to allocate at least 10% of its annual after-tax
profits determined in accordance with PRC GAAP to a statutory general reserve fund until the amounts in said fund reaches 50% of its registered
capital. Allocations to this statutory reserve fund can only be used for specific purposes and are not transferable to us in the form
of loans, advances or cash dividends. Any limitations on the ability of our PRC subsidiary to transfer funds to us could materially and
adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends and otherwise
fund and conduct our business.
44
Stock Performance Graph
The following graph presents a comparison of
the performance of our common stock with that of the NASDAQ Composite Index and the NASDAQ Capital Market Composite Index from September 30,
2011 to September 30, 2022. The graph shall not be deemed
|
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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:
subsidiary to transfer funds to us could materially and
adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends and otherwise
fund and conduct our business.
44
Stock Performance Graph
The following graph presents a comparison of
the performance of our common stock with that of the NASDAQ Composite Index and the NASDAQ Capital Market Composite Index from September 30,
2011 to September 30, 2022. The graph shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or
otherwise subject to the liabilities under that section, and shall not be deemed to be incorporated by reference into any filing of the
Company under the Securities Act or the Exchange Act.
30-Sep-11
30-Sep-12
30-Sep-13
30-Sep-14
30-Sep-15
30-Sep-16
30-Sep-17
30-Sep-18
30-Sep-19
30-Sep-20
30-Sep-21
30-Sep-22
Green Giant Inc.
32.30
6.22
183.97
121.77
40.76
56.46
31.81
29.43
16.99
25.84
|
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-Sep-12
30-Sep-13
30-Sep-14
30-Sep-15
30-Sep-16
30-Sep-17
30-Sep-18
30-Sep-19
30-Sep-20
30-Sep-21
30-Sep-22
Green Giant Inc.
32.30
6.22
183.97
121.77
40.76
56.46
31.81
29.43
16.99
25.84
36.12
12.60
Nasdaq Composite Index
101.97
131.56
159.23
189.70
195.06
224.27
274.25
339.71
337.72
471.48
612.7 0
446.50
NASDAQ Capital Market Composite
85.00
109.49
134.77
129.00
109.75
113.45
140.98
160.45
136.85
162.44
220.42
113.50
$100 invested at closing prices on September 30,
2010 in our common stock or in a stock index.
Equity Compensation Plan Information
See “Item 12. Security Ownership of 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:
7 0
446.50
NASDAQ Capital Market Composite
85.00
109.49
134.77
129.00
109.75
113.45
140.98
160.45
136.85
162.44
220.42
113.50
$100 invested at closing prices on September 30,
2010 in our common stock or in a stock index.
Equity Compensation Plan Information
See “Item 12. Security Ownership of Certain
Beneficial Owners and Management and Related Stockholder Matters” for disclosure regarding our equity compensation plan.
Purchase of Equity Securities by Our Company and Affiliated Purchases
None.
Recent Sales of Unregistered Securities
During the fiscal years ended September 30, 2022
and 2021, we did not have sales of unregistered securities other than those already disclosed in the quarterly reports on Form 10-Q in
the fiscal years 2022 and 2021 and current reports on Form 8-K.
Item 6. [Reserved]
Not applicable.
45
Item 7. Management’s Discussion and Analysis
of Financial Conditions and Results of Operations.
The following discussion and analysis of financial condition and results
of operations relates to the operations and financial condition reported
|
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:
2021, we did not have sales of unregistered securities other than those already disclosed in the quarterly reports on Form 10-Q in
the fiscal years 2022 and 2021 and current reports on Form 8-K.
Item 6. [Reserved]
Not applicable.
45
Item 7. Management’s Discussion and Analysis
of Financial Conditions and Results of Operations.
The following discussion and analysis of financial condition and results
of operations relates to the operations and financial condition reported in the financial statements of Green Giant Inc. for the fiscal
years ended September 30, 2022 and 2021 and should be read in conjunction with such financial statements and related notes included in
this report.
Preliminary Note Regarding Forward-Looking Statements.
We make forward-looking statements in Management’s
Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this report based on the beliefs and assumptions
of our management and on information currently available to us. Forward-looking statements include information about our possible or assumed
future results of operations which follow under the headings “Business and Overview,” “Liquidity and Capital Resources,”
and other statements throughout this report preceded by, followed by or that include the words “believes,” “expects,”
|
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:
We make forward-looking statements in Management’s
Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this report based on the beliefs and assumptions
of our management and on information currently available to us. Forward-looking statements include information about our possible or assumed
future results of operations which follow under the headings “Business and Overview,” “Liquidity and Capital Resources,”
and other statements throughout this report preceded by, followed by or that include the words “believes,” “expects,”
“anticipates,” “intends,” “plans,” “estimates” or similar expressions.
Forward-looking statements are subject to a number
of risks and uncertainties that could cause actual results to differ materially from those expressed in these forward-looking statements,
including the risks and uncertainties described below and other factors we describe from time to time in our periodic filings with the
SEC. We therefore caution you not to rely unduly on any forward-looking statements. The forward-looking statements in this report speak
only as of the date of this report, and we undertake no obligation to update or revise any forward-looking statement, whether as a result
of new information, future developments or otherwise. These forward-looking statements include, among other things, statements relating
to:
our ability to sustain our
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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.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
below and other factors we describe from time to time in our periodic filings with the
SEC. We therefore caution you not to rely unduly on any forward-looking statements. The forward-looking statements in this report speak
only as of the date of this report, and we undertake no obligation to update or revise any forward-looking statement, whether as a result
of new information, future developments or otherwise. These forward-looking statements include, among other things, statements relating
to:
our ability to sustain our project development
our ability to obtain additional land use rights at favorable prices;
the market for real estate in Tier 3 and 4 cities and counties;
our ability to obtain additional capital in future years to fund our planned expansion; or
economic, political, regulatory, legal and foreign exchange risks associated with our operations.
Our Business Overview
We conduct substantially all of our business through
Shaanxi Guangsha Investment and Development Group Co., Ltd, in Hanzhong, Shaanxi Province. Since the initiation of our business, we have
been focused on expanding our business in certain Tier 3 and Tier 4 cities and counties in China.
For the fiscal year of 2022, our sales and
net loss were approximately $9.1 million and $
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
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filing_type:10-K
Text:
foreign exchange risks associated with our operations.
Our Business Overview
We conduct substantially all of our business through
Shaanxi Guangsha Investment and Development Group Co., Ltd, in Hanzhong, Shaanxi Province. Since the initiation of our business, we have
been focused on expanding our business in certain Tier 3 and Tier 4 cities and counties in China.
For the fiscal year of 2022, our sales and
net loss were approximately $9.1 million and $108.1 million, representing a decrease of approximately 84.5% and 1796.0% from fiscal 2021,
respectively. The year-over-year decrease was mainly caused by the following reasons: 1) The macro-control of the real estate market by
the Chinese government, mainly suppressed in the past 12 months; 2) China's economic downturn due to repeated epidemic; 3) Lower disposable
income resulted in the decreased demand for housing; 4) Green Giant Inc. is a real estate developer in the third and fourth tier cities in
China, the decline in house prices is especially obvious than that in the first tier and second tier cities. For the fiscal year of
2022, our average selling price (“ASP”) for real estate
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
the Chinese government, mainly suppressed in the past 12 months; 2) China's economic downturn due to repeated epidemic; 3) Lower disposable
income resulted in the decreased demand for housing; 4) Green Giant Inc. is a real estate developer in the third and fourth tier cities in
China, the decline in house prices is especially obvious than that in the first tier and second tier cities. For the fiscal year of
2022, our average selling price (“ASP”) for real estate projects located in Yang County was approximately $524 per square
meter, decreased from ASP of $585.7 per square meter in fiscal 2021 due to less commercial units sold in Yangzhou Palace during fiscal
2022. The ASP of our Hanzhong real estate projects was approximately $629 per square meter for the fiscal year of 2022, compared to the
ASP of $638 per square meter for fiscal 2021 due to the increased market price in the Hangzhong area.
Market Outlook
On November 11, 2022 the People’s Bank of China and the China
Banking and Insurance Regulatory Commission issued “Yin Fa [2022] No. 254 “Notice on Supporting the Stable and Healthy Development
of the Real Estate
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cik:1158420
ticker:GGE
name:Green Giant Inc.
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projects was approximately $629 per square meter for the fiscal year of 2022, compared to the
ASP of $638 per square meter for fiscal 2021 due to the increased market price in the Hangzhong area.
Market Outlook
On November 11, 2022 the People’s Bank of China and the China
Banking and Insurance Regulatory Commission issued “Yin Fa [2022] No. 254 “Notice on Supporting the Stable and Healthy Development
of the Real Estate Market" to support the stable and healthy development of the real estate market.
46
On November 14, 2022 China Banking and Insurance Regulatory Commission,
the Ministry of Housing and Urban-Rural Development and the Central Bank issued the “Notice on the Relevant Work of Commercial Banks
Issuing letters of Guarantee to Replace the Pre-sale Supervision Funds” (the "Pre-sale Supervision Funds Notice"). Commercial
banks' house related credit business is expected to expand. The "Financial Support for Real Estate Notice" issued sixteen measures
to generate power at both supply and demand ends, it further clarifies the support policies for housing credit. Many policies have been
implemented at the document system level for the first time, or will push banks to increase their support for the real estate
|
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:
Issuing letters of Guarantee to Replace the Pre-sale Supervision Funds” (the "Pre-sale Supervision Funds Notice"). Commercial
banks' house related credit business is expected to expand. The "Financial Support for Real Estate Notice" issued sixteen measures
to generate power at both supply and demand ends, it further clarifies the support policies for housing credit. Many policies have been
implemented at the document system level for the first time, or will push banks to increase their support for the real estate market.
It is expected to positively affect the conservative attitude of commercial banks to intervene in the development of loan market and support
the increasing demand from home buyers for mortagage loans.
Green Giant Inc. intends to remain focused on our existing
construction projects in Hanzhong City and Yang County, deepening our institutional sales network, enhancing our cost and operational
synergies and improving cash flows and strengthening our balance sheet.
Green Giant Inc. started the construction of the Liangzhou
Road related projects after the approval by the local government of the road. These projects comprise residential for end-users and upgraders,
shopping malls as well as serviced apartments and offices to satisfy different market demands.
In December 2019, a novel strain of coronavirus
(COVID-19) surfaced
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cik:1158420
ticker:GGE
name:Green Giant Inc.
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filing_type:10-K
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Yang County, deepening our institutional sales network, enhancing our cost and operational
synergies and improving cash flows and strengthening our balance sheet.
Green Giant Inc. started the construction of the Liangzhou
Road related projects after the approval by the local government of the road. These projects comprise residential for end-users and upgraders,
shopping malls as well as serviced apartments and offices to satisfy different market demands.
In December 2019, a novel strain of coronavirus
(COVID-19) surfaced. COVID-19 has spread rapidly to many parts of the PRC and other parts of the world in the first quarter of 2020, which
has caused significant volatility in the PRC and international markets. There is significant uncertainty around the breadth and duration
of business disruptions related to COVID-19, as well as its impact on the PRC and international economies. For the year ended September
30, 2022, the COVID-19 pandemic did not have did have a material net impact on the Company’s financial position and operating results,
espeically Yang County which is operation was shut down. On and off from August 2022 onwards The extent of the impact on the Company’s
future financial results will be dependent on future developments such as the length and
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The report is about the company's financial status.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
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filing_type:10-K
Text:
related to COVID-19, as well as its impact on the PRC and international economies. For the year ended September
30, 2022, the COVID-19 pandemic did not have did have a material net impact on the Company’s financial position and operating results,
espeically Yang County which is operation was shut down. On and off from August 2022 onwards The extent of the impact on the Company’s
future financial results will be dependent on future developments such as the length and severity of the crisis, the potential resurgence
of the pandemic, future government actions in response to the pandemic and the overall impact of the COVID-19 pandemic on the local economy
and real estate markets, among many other factors, all of which remain highly uncertain and unpredictable. Given this uncertainty, the
Company is currently unable to quantify the future impact of the COVID-19 pandemic on its future operations, financial condition, liquidity
and results of operations if the current situation continues.
Liangzhou road related projects
In September 2013, the Company entered into an
agreement (“Liangzhou Agreement”) with the Hanzhong local government on the Liangzhou Road reformation and expansion project
(“Liangzhou Road Project”). Pursuant to the Li
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cik:1158420
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name:Green Giant Inc.
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filing_type:10-K
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this uncertainty, the
Company is currently unable to quantify the future impact of the COVID-19 pandemic on its future operations, financial condition, liquidity
and results of operations if the current situation continues.
Liangzhou road related projects
In September 2013, the Company entered into an
agreement (“Liangzhou Agreement”) with the Hanzhong local government on the Liangzhou Road reformation and expansion project
(“Liangzhou Road Project”). Pursuant to the Liangzhou Agreement, the Company was contracted to reform and expand the Liangzhou
Road, a commercial street in downtown Hanzhong City, with a total length of 2,080 meters and width of 30 meters and to resettle the existing
residents in the Liangzhou Road area. The government’s original road construction budget was approximately $33million in accordance
with the Liangzhou Agreement. Green Giant Inc., in return, is being compensated by the local government to have an exclusive right on acquiring
at least 394.5 Mu (approximately 65 acres) land use rights in a specified residential zone of Hanzhong City. The Liangzhou Road Project’s
road construction started at the end of 2013. In 201
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
the Liangzhou Road area. The government’s original road construction budget was approximately $33million in accordance
with the Liangzhou Agreement. Green Giant Inc., in return, is being compensated by the local government to have an exclusive right on acquiring
at least 394.5 Mu (approximately 65 acres) land use rights in a specified residential zone of Hanzhong City. The Liangzhou Road Project’s
road construction started at the end of 2013. In 2014, the original scope and budget on the Liangzhou Road reformation and expansion
project was extended, because the local government included more area and resettlement residences into the project, which resulted in
additional investments from the Company. In return, the Company was authorized by the local government to develop and manage the commercial
and residential properties surrounding the Liangzhou Road project.
47
As of September 30, 2022, the actual costs incurred
by the Company were approximately $ 173.3 million (September 30, 2021 - 180.4 million). The Liangzhou Road related projects
mainly consists of Oriental Garden Phase II, Liangzhou Mansion and Pearl Commercial Plaza surrounding the Liangzhou road area:
Ori
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
local government to develop and manage the commercial
and residential properties surrounding the Liangzhou Road project.
47
As of September 30, 2022, the actual costs incurred
by the Company were approximately $ 173.3 million (September 30, 2021 - 180.4 million). The Liangzhou Road related projects
mainly consists of Oriental Garden Phase II, Liangzhou Mansion and Pearl Commercial Plaza surrounding the Liangzhou road area:
Oriental Garden Phase II
Oriental Garden Phase II project is planned to
consist of 8 high-rise residential buildings and 6 commercial buildings with total planned GFA of 370,298 square meters. The project will
also include a farmer’s market.
Liangzhou Mansion
Liangzhou Mansion project is planned to consist
of 7 high-rise building and commercial shops on the first floor with total planned GFA of 160,000 square meters.
Pearl Commercial Plaza
Pearl Commercial Plaza is planned to consist one
office building, one service apartment (or hotel), classical architecture style of Chinese traditional houses and shopping malls with
total planned GFA of 124,191 square meters.
Green Giant Inc. plans to start these
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
iangzhou Mansion
Liangzhou Mansion project is planned to consist
of 7 high-rise building and commercial shops on the first floor with total planned GFA of 160,000 square meters.
Pearl Commercial Plaza
Pearl Commercial Plaza is planned to consist one
office building, one service apartment (or hotel), classical architecture style of Chinese traditional houses and shopping malls with
total planned GFA of 124,191 square meters.
Green Giant Inc. plans to start these three real estate
projects in 2022 after the road construction passes the local government’s inspection and approval. These related projects may take
2-3 years to be fully completed.
Road Construction
Other
road construction projects mainly included the Yang County East 2nd Ring Road construction project. Green Giant Inc. was engaged by the Yang
County local government to construct the East 2nd Ring Road with a total length of 2.15 km. The local government is required to repay
the Company’s project investment costs within 3 years after completion of the project with interest at the interest rate based on
the commercial borrowing rate with the similar term published by the China Construction Bank (which as of September 30, 2022 –was
4.75%). The local
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
construction project. Green Giant Inc. was engaged by the Yang
County local government to construct the East 2nd Ring Road with a total length of 2.15 km. The local government is required to repay
the Company’s project investment costs within 3 years after completion of the project with interest at the interest rate based on
the commercial borrowing rate with the similar term published by the China Construction Bank (which as of September 30, 2022 –was
4.75%). The local government’s repayment could be used by the Company to reduce local surcharges or taxes otherwise required in
the real estate development. The road construction was substantially completed as of September 30, 2021 and is in the process of government
review and approval. For the year ended September 30, 2022, the Company received local government’ installment payments
of approximately $2.1 million and the final payment approximately of $4.5 million is pending the local government’s approval .
The installment received was included in the Company’s customer deposits as of September 30, 2022.
48
In September 2012, the Company was approved by
the Hanzhong local government to construct four municipal roads
with a total length
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The report is about the company's financial status.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
year ended September 30, 2022, the Company received local government’ installment payments
of approximately $2.1 million and the final payment approximately of $4.5 million is pending the local government’s approval .
The installment received was included in the Company’s customer deposits as of September 30, 2022.
48
In September 2012, the Company was approved by
the Hanzhong local government to construct four municipal roads
with a total length of approximately 1,192 meters. The project was deferred and then restarted during the quarter ended March 31, 2014.
As of September 30, 2022, the local government was still in the process of assessing the budget for these projects, which is expected
to be completed in fiscal 2023.
Under development:
Estimated Completion time of construction
Hanzhong City Hanfeng Beiyuan East Road
The road construction was substantially completed and is pending local government’s acceptance.
Hanzhong City Liangzhou Road related projects
The road construction was substantially completed and is pending local government’s acceptance.
Hanzhong City Beidajie project
Under planning stage and waiting for local government’s zoning plan
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cik:1158420
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name:Green Giant Inc.
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filing_type:10-K
Text:
to be completed in fiscal 2023.
Under development:
Estimated Completion time of construction
Hanzhong City Hanfeng Beiyuan East Road
The road construction was substantially completed and is pending local government’s acceptance.
Hanzhong City Liangzhou Road related projects
The road construction was substantially completed and is pending local government’s acceptance.
Hanzhong City Beidajie project
Under planning stage and waiting for local government’s zoning plan
Yang County East 2nd Ring Road
The road construction was substantially completed and is pending local government’s acceptance.
RESULTS OF OPERATIONS
Year ended September 30, 2022 as compared to year ended September
30, 2021
Revenues
The following is a breakdown of revenue for the
years ended September 30, 2022 and 2021:
For the years ended September 30,
2022
2021
Revenue recognized for completed condominium real estate projects,
9,577,405
58,915,239
Less: sales tax
(505,652
(424,074
Revenue net of sales tax
9,071,753
58,491,165
Revenue recognized for completed condominium real estate
|
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The report is about the company's financial status.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
a breakdown of revenue for the
years ended September 30, 2022 and 2021:
For the years ended September 30,
2022
2021
Revenue recognized for completed condominium real estate projects,
9,577,405
58,915,239
Less: sales tax
(505,652
(424,074
Revenue net of sales tax
9,071,753
58,491,165
Revenue recognized for completed condominium real estate
projects
The following table summarizes our revenue generated
by different projects:
For the Years Ended September 30,
2022
2021
Variance
Revenue
Revenue
Variance
Projects:
Yangzhou Pearl Garden Phase I and II
564,758
1.0
(564,758
(100.0
)%
Oriental Pearl Garden
810,220
8.5
2,186,355
3.7
(1,376,135
(62.9
)%
Nanyuan II Project
43,625,590
74.0
(43,625,590
(100.0
)%
Mingzhu Garden (Nanyuan and Beiyuan) Phase
|
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
1.0
(564,758
(100.0
)%
Oriental Pearl Garden
810,220
8.5
2,186,355
3.7
(1,376,135
(62.9
)%
Nanyuan II Project
43,625,590
74.0
(43,625,590
(100.0
)%
Mingzhu Garden (Nanyuan and Beiyuan) Phase I and II
1,063,278
11.1
768,494
1.3
294,784
38.4
Yangzhou Palace
7,703,907
80.4
11,770,042
20.0
(4,066,135
(34.6
)%
Total Revenue
9,577,405
100.0
58,915,239
100
(49,337,834
(83.7
)%
Sales Tax
(505,652
(424,074
(81,578
(19.2
)%
Revenue net of sales tax
9,071,753
58,491,165
(49,419,412
(84.
|
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:
,066,135
(34.6
)%
Total Revenue
9,577,405
100.0
58,915,239
100
(49,337,834
(83.7
)%
Sales Tax
(505,652
(424,074
(81,578
(19.2
)%
Revenue net of sales tax
9,071,753
58,491,165
(49,419,412
(84.5
)%
Our revenues are derived from the sale of residential
buildings, commercial store-fronts and parking spaces in projects that we have developed. Compared to last year, revenues before sales
tax decreased by $49.4 million to approximately $9.6 million for the year ended September 30, 2022. The total GFA sold for the remaining
real estate projects during the year September 30, 2022 and 2021 was 16,182 square meters and 25,687 square meters, respectively. The
sales tax for the years ended September 30, 2022 was approximately $0.5 million, decreased by 19.2% from fiscal 2021, consistent with
the decreased revenue in fiscal 202
|
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 year ended September 30, 2022. The total GFA sold for the remaining
real estate projects during the year September 30, 2022 and 2021 was 16,182 square meters and 25,687 square meters, respectively. The
sales tax for the years ended September 30, 2022 was approximately $0.5 million, decreased by 19.2% from fiscal 2021, consistent with
the decreased revenue in fiscal 2022.
49
The year-over-year
decrease in revenue was mainly caused by the following reasons: 1) The macro-control of the real estate market by the Chinese government,
mainly suppressed in the past 12 months; 2)China's economic downturn due to recurring epidemic; 3) Lower disposable income resulted in
the decreased demand for housing; 4) Green Giant Inc. is a real estate developer in the third and fourth tier cities in China, the decline
in house prices is especially obvious than that in the first tier and second tier cities.
Cost of sales
The following table sets forth a breakdown of
our cost of revenues for the years indicated.
For the Years Ended September 30,
2022
2021
Variance
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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:
recurring epidemic; 3) Lower disposable income resulted in
the decreased demand for housing; 4) Green Giant Inc. is a real estate developer in the third and fourth tier cities in China, the decline
in house prices is especially obvious than that in the first tier and second tier cities.
Cost of sales
The following table sets forth a breakdown of
our cost of revenues for the years indicated.
For the Years Ended September 30,
2022
2021
Variance
Cost
Percentage
Cost
Percentage
Variance
Land use rights
582,548
10.6
4,418,450
9.5
(3,835,902
(86.8
)%
Construction costs
4,906,863
89.4
42,091,551
90.5
(37,184,688
(88.3
)%
Total
5,489,411
100.0
46,510,001
100
(41,020,590
(88.2
)%
Our cost of sales consists primarily of costs
associated with land use rights and construction costs. Cost of sales are capitalized and allocated to development projects using a specific
identification method. Costs are
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
89.4
42,091,551
90.5
(37,184,688
(88.3
)%
Total
5,489,411
100.0
46,510,001
100
(41,020,590
(88.2
)%
Our cost of sales consists primarily of costs
associated with land use rights and construction costs. Cost of sales are capitalized and allocated to development projects using a specific
identification method. Costs are allocated to specific units within a project based on the ratio of the sales area of units to the estimated
total sales area of the project or phase of the project times the total cost of the project or phase of the project.
Cost of sales was approximately $5.5 million for
the year ended September 30, 2022 compared to $46.5 million for last year. It was mainly attributable to limited GFA sold for the year
ended September 30, 2022.
Land use rights cost: The cost of
land use rights includes the land premium we pay to acquire land use rights for our property development sites, plus taxes. Our land use
rights cost varies for different projects according to the size and location of the site and the minimum land
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
the year ended September 30, 2022 compared to $46.5 million for last year. It was mainly attributable to limited GFA sold for the year
ended September 30, 2022.
Land use rights cost: The cost of
land use rights includes the land premium we pay to acquire land use rights for our property development sites, plus taxes. Our land use
rights cost varies for different projects according to the size and location of the site and the minimum land premium set for the site,
all of which are influenced by government policies, as well as prevailing market conditions. Costs for land use rights for the year ended
September 30, 2022 were approximately $0.6 million, as compared to approximately $4.4 million for fiscal 2021, representing an decrease
of approximately $3.8 million from the same period of last year. The decrease was consistent with the fact that total GFA sold in fiscal
2022 was significantly decreased from previous year.
Construction cost: We outsource the
construction of all of our projects to third party contractors, whom we select through a competitive tender process. Our construction
contracts provide a fixed payment which covers substantially all labor, materials and equipment costs, subject to adjustments
|
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 fiscal 2021, representing an decrease
of approximately $3.8 million from the same period of last year. The decrease was consistent with the fact that total GFA sold in fiscal
2022 was significantly decreased from previous year.
Construction cost: We outsource the
construction of all of our projects to third party contractors, whom we select through a competitive tender process. Our construction
contracts provide a fixed payment which covers substantially all labor, materials and equipment costs, subject to adjustments for some
types of excess, such as design changes during construction or changes in government-suggested steel prices. Our construction costs consist
primarily of the payments to our third-party contractors, which are paid over the construction period based on specified milestones. In
addition, we purchase and supply a limited range of fittings and equipment, including elevators, window frames and door frames. Our construction
costs for the year ended September 30, 2022 were approximately $4.9 million as compared to approximately $42.1 million for last year,
representing a decrease of approximately $37.2 million. The decrease in construction cost was due to less real estate property units sold
during fiscal 2022.
50
Gross profits
Gross
profit
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
purchase and supply a limited range of fittings and equipment, including elevators, window frames and door frames. Our construction
costs for the year ended September 30, 2022 were approximately $4.9 million as compared to approximately $42.1 million for last year,
representing a decrease of approximately $37.2 million. The decrease in construction cost was due to less real estate property units sold
during fiscal 2022.
50
Gross profits
Gross
profit was approximately $3.6million for the year ended September 30, 2022 as compared to gross profit of approximately $12.0 million
in the prior year, representing an decrease of $8.4 million. The gross margin was 37.4% in
fiscal 2022 as compared to gross margin of 17.1% in last year due
to the revenue structure change. The GFA of commercial store-fronts is higher than residential buildings in fiscal 2022 and the average
selling price of commercial store-fronts is also much higher than previous year.
For the Year Ended September 30
2022
2021
Gross
Gross
Gross
Gross
Variance
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The report is about the company's financial status.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
in
fiscal 2022 as compared to gross margin of 17.1% in last year due
to the revenue structure change. The GFA of commercial store-fronts is higher than residential buildings in fiscal 2022 and the average
selling price of commercial store-fronts is also much higher than previous year.
For the Year Ended September 30
2022
2021
Gross
Gross
Gross
Gross
Variance
Project
Profit
Margin
Profit
Margin
Variance
Yangzhou Pearl Garden Phase I and II
122,007
22
(122,007
(100.0
)%
Yangzhou Palace
3,028,858
39.3
2,822,485
24
206,373
7.3
Mingzhu Garden (Mingzhu Nanyuan and Beiyuan) Phase I and II
431,523
40.6
211,825
28
219,698
103.7
Nanyuan II project
8,619,750
20
(8,619,750
(100.0
)%
Oriental Pearl Garden
627,613
77.5
|
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:
822,485
24
206,373
7.3
Mingzhu Garden (Mingzhu Nanyuan and Beiyuan) Phase I and II
431,523
40.6
211,825
28
219,698
103.7
Nanyuan II project
8,619,750
20
(8,619,750
(100.0
)%
Oriental Pearl Garden
627,613
77.5
629,171
29
(1,558
(0.2
)%
Sales Tax
(505,652
(424,074
(81,578
(19.2
)%
Impairment losses on real estate property development completed
Total Gross Profit
3,582,342
37.4
11,981,164
20.3
(8,398,822
(70.1
)%
Operating expenses
The following table presents our operating expenses by nature for the
periods indicated:
For the years ended September 30,
2022
2021
General and administrative expenses
31,198,365
2,691,170
Selling expenses
361,746
186,
|
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:
Gross Profit
3,582,342
37.4
11,981,164
20.3
(8,398,822
(70.1
)%
Operating expenses
The following table presents our operating expenses by nature for the
periods indicated:
For the years ended September 30,
2022
2021
General and administrative expenses
31,198,365
2,691,170
Selling expenses
361,746
186,886
Impairment of contract assets
5,264,748
Impairment of real estate property under development
73,624,727
Total operating expenses
110,449,586
2,878,056
Percentage of revenue after sales tax
1,217.5
4.9
General and administrative expenses were $31,198,365 for 2022 compared
to $2,691,170 for 2021. The year-on-year increase for 2022 was $28,507,195 mainly attributable to the issuance of 5,990,000 common shares
to the Consultants being fully paid in RMB126.9 million (US$19.4 million) when issued and litigation case of construction contract dispute
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:
217.5
4.9
General and administrative expenses were $31,198,365 for 2022 compared
to $2,691,170 for 2021. The year-on-year increase for 2022 was $28,507,195 mainly attributable to the issuance of 5,990,000 common shares
to the Consultants being fully paid in RMB126.9 million (US$19.4 million) when issued and litigation case of construction contract dispute
with Zhejiang Hongcheng Construction Group Co., Ltd. in amount of RMB64.68 million (US$9.87 million)
Interest expense, net
Net
interest income was less than $0.1 million for the year ended
September 30, 2022 and 2021.
51
Other income, net
For the year ended September 30, 2022, the Company
had other expense of $1.3 million due to the fact that the payment for laws.
Income taxes
PRC Taxes
Our Company is governed by the Enterprise Income
Tax Law of the People’s Republic of China concerning private-run enterprises, which are generally subject to tax at a statutory
rate of 25% on income reported in 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:
, 2022 and 2021.
51
Other income, net
For the year ended September 30, 2022, the Company
had other expense of $1.3 million due to the fact that the payment for laws.
Income taxes
PRC Taxes
Our Company is governed by the Enterprise Income
Tax Law of the People’s Republic of China concerning private-run enterprises, which are generally subject to tax at a statutory
rate of 25% on income reported in the statutory financial statements after appropriate tax adjustments. For the years ended September
30, 2022 and 2021, the Company is subject to income tax rate of 25% on taxable income. Although the possibility exists for reinterpretation
of the application of the tax regulations by higher tax authorities in the PRC, potentially overturning the decision made by the local
tax authority, the Company has not experienced any reevaluation of the income taxes for prior years. The PRC tax rules are different from
the local tax rules and the Company is required to comply with local tax rules. The difference between the two tax rules will not be a
liability of the Company. There will be no further tax payments for the difference. For the years ended September 30,
|
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:
higher tax authorities in the PRC, potentially overturning the decision made by the local
tax authority, the Company has not experienced any reevaluation of the income taxes for prior years. The PRC tax rules are different from
the local tax rules and the Company is required to comply with local tax rules. The difference between the two tax rules will not be a
liability of the Company. There will be no further tax payments for the difference. For the years ended September 30, 2022, the Company’s
effective income tax rate was 6%, increased from effective income tax rate of 28% for the year ended September 30, 2021. The lower effective
income tax rate in fiscal 2022 was caused by the loss in fiscal year 2022.
Net income
We reported net loss of approximately $108.1million
for the year ended September 30, 2022, as compared to the net income approximately $6.4 million for fiscal 2021. The decrease of $114.5
million in our net income was primarily due to more revenue reported for fiscal 2021 as discussed above under Revenues and Gross Profit
Other comprehensive income
We operate primarily in the PRC and the functional
|
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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:
year 2022.
Net income
We reported net loss of approximately $108.1million
for the year ended September 30, 2022, as compared to the net income approximately $6.4 million for fiscal 2021. The decrease of $114.5
million in our net income was primarily due to more revenue reported for fiscal 2021 as discussed above under Revenues and Gross Profit
Other comprehensive income
We operate primarily in the PRC and the functional
currency of our operating subsidiary is the Chinese Renminbi (“RMB”). The RMB is not freely convertible into foreign currency
and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts
could have been, or could be, converted into USD at the rates used in translation.
Translation adjustments amounted to approximately
$11.4 million and $9.4million for the years ended September 30, 2022 and 2021, respectively. The balance sheet amounts with the exception
of equity at September 30, 2022 were translated at RMB7.1135 to 1.00 USD as compared to 6.4434 RMB to 1.00 USD at September 30,
|
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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:
converted into USD at the rates used in translation.
Translation adjustments amounted to approximately
$11.4 million and $9.4million for the years ended September 30, 2022 and 2021, respectively. The balance sheet amounts with the exception
of equity at September 30, 2022 were translated at RMB7.1135 to 1.00 USD as compared to 6.4434 RMB to 1.00 USD at September 30, 2021.
The equity accounts were stated at their historical rate. The average translation rates applied to the income statements accounts for
the years ended September 30, 2022 and 2021 were 6.5532 RMB to 1.00 USD and 6.5072 RMB to 1.00 USD, respectively.
Liquidity and Capital Resources
Cash Flow
52
Year ended September 30, 2022 as compared to year ended September
30, 2021
Comparison of cash flows results for the fiscal
year ended September 30, 2022 and fiscal year ended September 30, 2021 are summarized as follows:
For the years ended
September 30,
2022
2021
|
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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:
.5072 RMB to 1.00 USD, respectively.
Liquidity and Capital Resources
Cash Flow
52
Year ended September 30, 2022 as compared to year ended September
30, 2021
Comparison of cash flows results for the fiscal
year ended September 30, 2022 and fiscal year ended September 30, 2021 are summarized as follows:
For the years ended
September 30,
2022
2021
Variance
Net cash (used in) provided by operating
activities
(757,507
(604,167
(153,340
Net Cash Used in Investing Activities
(26,936,915
(26,936,915
Net cash (used in) provided by financing activities
28,936,915
28,936,915
Effect of changes of foreign exchange rate on cash
(339,505
201,820
(541,325
Net (decrease) in cash
902,988
(402,347
1,305,335
Operating activities
Net cash used in operating activities during fiscal 2022 was approximately
$0.8 million, consisting of net loss of approximately $108.
|
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:
used in) provided by financing activities
28,936,915
28,936,915
Effect of changes of foreign exchange rate on cash
(339,505
201,820
(541,325
Net (decrease) in cash
902,988
(402,347
1,305,335
Operating activities
Net cash used in operating activities during fiscal 2022 was approximately
$0.8 million, consisting of net loss of approximately $108.1 million, net changes in our operating assets and liabilities, which
mainly included a decrease in real estate property completed of approximately $5.5 million due to the sales of real estate properties,
a $8.4 million increase in other payables to suppliers and an increase of $9.5 million in Accrued expenses.
Investing activities
Net cash used in investing activities during fiscal
2022 was approximately $26.9 million, which mainly included the payment for energy equipment.
Financing activities
Net cash provided by financing activities during
fiscal 2022 was $28.9 million while net cash provided by financing activities during fiscal 2021 was nil.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements
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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 $9.5 million in Accrued expenses.
Investing activities
Net cash used in investing activities during fiscal
2022 was approximately $26.9 million, which mainly included the payment for energy equipment.
Financing activities
Net cash provided by financing activities during
fiscal 2022 was $28.9 million while net cash provided by financing activities during fiscal 2021 was nil.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements.
As an industry practice, the Company provides
guarantees to PRC banks with respect to loans procured by the purchasers of the Company’s real estate properties for the total mortgage
loan amount until the completion of obtaining the “Certificate of Ownership” of the properties from the government, which
generally takes six to twelve months. Because the banks provide loan proceeds without getting the “Certificate of Ownership”
as loan collateral during the six to twelve months’ period, the mortgage banks require the Company to maintain, as security for
the Company’s obligations under such guarantees, restricted cash of at least 5% of the mortgage proceeds. If a purchaser defaults
on its payment obligations, the mortgage bank may deduct the delinquent mortgage payment from the security deposit and require
|
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 government, which
generally takes six to twelve months. Because the banks provide loan proceeds without getting the “Certificate of Ownership”
as loan collateral during the six to twelve months’ period, the mortgage banks require the Company to maintain, as security for
the Company’s obligations under such guarantees, restricted cash of at least 5% of the mortgage proceeds. If a purchaser defaults
on its payment obligations, the mortgage bank may deduct the delinquent mortgage payment from the security deposit and require the Company
to pay the excess amount if the delinquent mortgage payments exceed the security deposit. If the delinquent mortgage payments exceed the
security deposit, the banks may require us to pay the excess amount. If multiple purchasers default on their payment obligations at around
the same time, we will be required to make significant payments to the banks to satisfy our guarantee obligations. If we are unable to
resell the properties underlying defaulted mortgages on a timely basis or at prices higher than the amounts of our guarantees and related
expenses, we will suffer financial losses. Green Giant Inc. has made necessary reserves in its restricted cash account to cover any potential
mortgage defaults as required by the mortgage lenders. Green Giant Inc. has not experienced any delinquent mortgage loans and has not experienced
|
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:
same time, we will be required to make significant payments to the banks to satisfy our guarantee obligations. If we are unable to
resell the properties underlying defaulted mortgages on a timely basis or at prices higher than the amounts of our guarantees and related
expenses, we will suffer financial losses. Green Giant Inc. has made necessary reserves in its restricted cash account to cover any potential
mortgage defaults as required by the mortgage lenders. Green Giant Inc. has not experienced any delinquent mortgage loans and has not experienced
any losses related to this guarantee. As of September 30, 2022 and September 30, 2021, our outstanding guarantees in respect of our customers’
mortgage loans amounted to approximately $24.87 million and $66.0 million, respectively. As of September 30, 2022 and September
30, 2021, the amount of security deposits provided for these guarantees was approximately $1.78 million and $3.3 million, respectively,
and the Company believes that such reserves are sufficient.
Inflation
Inflation has not had a material impact on our business and we do not
expect inflation to have a material impact on our business in the near future.
53
Critical Accounting Policies and Management Estimates
Revenue recognition
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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:
respectively. As of September 30, 2022 and September
30, 2021, the amount of security deposits provided for these guarantees was approximately $1.78 million and $3.3 million, respectively,
and the Company believes that such reserves are sufficient.
Inflation
Inflation has not had a material impact on our business and we do not
expect inflation to have a material impact on our business in the near future.
53
Critical Accounting Policies and Management Estimates
Revenue recognition
Green Giant Inc. adopted FASB ASC Topic 606 Revenue
from Contracts with Customers (“ASC 606”) on October 1, 2018 using the modified retrospective approach. Under ASC 606, Revenue
from Contracts with Customers, revenue is recognized in accordance with the transfer of goods and services to customers at an amount that
reflects the consideration that the Company expects to be entitled to for those goods and services. Green Giant Inc. determines revenue recognition
through the following steps:
identification of the contract, or contracts, with a customer;
identification of the performance obligations in the contract;
determination of the transaction price, including the constraint on variable consideration;
allocation of the transaction price to the performance obligations in the contract; and
recognition of revenue when (or as) 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:
of goods and services to customers at an amount that
reflects the consideration that the Company expects to be entitled to for those goods and services. Green Giant Inc. determines revenue recognition
through the following steps:
identification of the contract, or contracts, with a customer;
identification of the performance obligations in the contract;
determination of the transaction price, including the constraint on variable consideration;
allocation of the transaction price to the performance obligations in the contract; and
recognition of revenue when (or as) the Group satisfy a performance obligation.
Most of the Company’s revenue is derived
from real estate sales of condominiums and commercial property in the PRC. The majority of the Company’s contracts contain a single
performance obligation involving significant real estate development activities that are performed together to deliver a real estate property
to customers. Revenues arising from real estate sales are recognized when or as the control of the asset is transferred to the customer.
The control of the asset may transfer over time or at a point in time. For the sales of individual condominium units in a real estate
development projects, the Company has an enforceable right to payment for performance completed to date, revenue is recognized over time
by measuring the progress towards complete satisfaction of that performance obligation (“percentage completion method”). Otherwise,
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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:
real estate property
to customers. Revenues arising from real estate sales are recognized when or as the control of the asset is transferred to the customer.
The control of the asset may transfer over time or at a point in time. For the sales of individual condominium units in a real estate
development projects, the Company has an enforceable right to payment for performance completed to date, revenue is recognized over time
by measuring the progress towards complete satisfaction of that performance obligation (“percentage completion method”). Otherwise,
revenue is recognized at a point in time when the customer obtains control of the asset.
Under percentage completion method, revenue and
profit from the sales of long-term real estate development properties is recognized by the percentage of completion method on the sale
of individual units when all the following criteria are met:
a.
Construction is beyond a preliminary stage.
b.
The buyer is committed to the extent of being unable to require a refund except for non-delivery of the unit or interest.
c.
Sufficient units have already been sold to assure that the entire property will not revert to rental property.
d.
Sales prices are collectible.
e.
Aggregate sales proceeds and costs can be reasonably estimated.
If any of the above criteria is not met, proceeds
shall be accounted for as deposits
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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:
criteria are met:
a.
Construction is beyond a preliminary stage.
b.
The buyer is committed to the extent of being unable to require a refund except for non-delivery of the unit or interest.
c.
Sufficient units have already been sold to assure that the entire property will not revert to rental property.
d.
Sales prices are collectible.
e.
Aggregate sales proceeds and costs can be reasonably estimated.
If any of the above criteria is not met, proceeds
shall be accounted for as deposits until the criteria are met.
Under the percentage of completion method, revenues
from individual real estate condominium units sold under development and related costs are recognized over the course of the construction
period, based on the completion progress of a project. The progress towards complete satisfaction of the performance obligation is measured
based on the Company’s efforts or inputs to the satisfaction of the performance obligation, by reference to the contract costs incurred
up to the end of reporting period as a percentage of total estimated costs for each contract. In relation to any project, revenue is determined
by calculating the ratio of incurred costs, including land use rights costs and construction costs, to total estimated costs and applying
that ratio to the contracted sales amounts. Cost of sales is recognized by determining the ratio of contracted sales during
|
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:
is measured
based on the Company’s efforts or inputs to the satisfaction of the performance obligation, by reference to the contract costs incurred
up to the end of reporting period as a percentage of total estimated costs for each contract. In relation to any project, revenue is determined
by calculating the ratio of incurred costs, including land use rights costs and construction costs, to total estimated costs and applying
that ratio to the contracted sales amounts. Cost of sales is recognized by determining the ratio of contracted sales during the period
to total estimated sales value and applying that ratio to the incurred costs. Current period amounts are calculated based on the difference
between the life-to-date project totals and the previously recognized amounts.
54
Any changes in significant judgments and/or estimates
used in determining construction and development revenue could significantly change the timing or amount of construction and development
revenue recognized. Changes in total estimated project costs or losses, if any, are recognized in the period in which they are determined.
Revenue from the sales of completed real estate
condominium units is recognized at the time of the closing of an individual unit sale. This occurs when the customer obtains the physical
possession, the legal title, or the significant risks and rewards of ownership of the assets and the Company has present
|
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:
development revenue could significantly change the timing or amount of construction and development
revenue recognized. Changes in total estimated project costs or losses, if any, are recognized in the period in which they are determined.
Revenue from the sales of completed real estate
condominium units is recognized at the time of the closing of an individual unit sale. This occurs when the customer obtains the physical
possession, the legal title, or the significant risks and rewards of ownership of the assets and the Company has present right to payment
and the collection of the consideration is probable. For municipal road construction projects, fees are generally recognized at the time
of the projects are completed.
Contract balances
Timing of revenue recognition may differ from
the timing of billing and cash receipts from customers. Green Giant Inc. records a contract asset when revenue is recognized prior to invoicing,
or a contract liability when cash is received in advance of recognizing revenue. A contract asset is a right to consideration that is
conditional upon factors other than the passage of time. Contract assets include billed and billable receivables, which are the Company’s
unconditional rights to consideration other than to the passage of time. Contract liabilities include cash collected in excess of revenues.
Customer deposits are excluded from contract liabilities.
Green Giant Inc. has elected
|
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:
records a contract asset when revenue is recognized prior to invoicing,
or a contract liability when cash is received in advance of recognizing revenue. A contract asset is a right to consideration that is
conditional upon factors other than the passage of time. Contract assets include billed and billable receivables, which are the Company’s
unconditional rights to consideration other than to the passage of time. Contract liabilities include cash collected in excess of revenues.
Customer deposits are excluded from contract liabilities.
Green Giant Inc. has elected to apply the optional
practical expedient for costs to obtain a contract which allows the Company to immediately expense sales commissions (included under selling
expenses) because the amortization period of the asset that the Company otherwise would have used is one year or less. Contract assets
and liabilities are generally classified as current based on our contract operating cycle.
Green Giant Inc. provides “mortgage loan guarantees”
only with respect to buyers who make down-payments of 20%-50% of the total purchase price of the property. The period of the mortgage
loan guarantee begins on the date the bank approves the buyer’s mortgage and we receive the loan proceeds in our bank account and
ends on the date the “Certificate of Ownership” evidencing that title to the property has been transferred 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:
liabilities are generally classified as current based on our contract operating cycle.
Green Giant Inc. provides “mortgage loan guarantees”
only with respect to buyers who make down-payments of 20%-50% of the total purchase price of the property. The period of the mortgage
loan guarantee begins on the date the bank approves the buyer’s mortgage and we receive the loan proceeds in our bank account and
ends on the date the “Certificate of Ownership” evidencing that title to the property has been transferred to the buyer. The
procedures to obtain the Certificate of Ownership take six to twelve months (the “Mortgage Loan Guarantee Period”). If, after
investigation of the buyer’s income and other relevant factors, the bank decides not to grant the mortgage loan, our mortgage-loan
based sales contract terminates and there will be no guarantee obligation. If, during the Mortgage Loan Guarantee Period, the buyer defaults
on his or her monthly mortgage payment for three consecutive months, we are required to return the loan proceeds back to the bank, although
we have the right to keep the customer’s deposit and resell the property to a third party. Once the Certificate of Property has
been issued by the relevant government authority, our loan guarantee terminates. If the buyer then defaults on
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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:
an
based sales contract terminates and there will be no guarantee obligation. If, during the Mortgage Loan Guarantee Period, the buyer defaults
on his or her monthly mortgage payment for three consecutive months, we are required to return the loan proceeds back to the bank, although
we have the right to keep the customer’s deposit and resell the property to a third party. Once the Certificate of Property has
been issued by the relevant government authority, our loan guarantee terminates. If the buyer then defaults on his or her mortgage loan,
the bank has the right to take the property back and sell it and use the proceeds to pay off the loan. Green Giant Inc. is not liable for any
shortfall that the bank may incur in this event. To date, no buyer has defaulted on his or her mortgage payments during the Mortgage Loan
Guarantee Period and the Company has not returned any loan proceeds pursuant to its mortgage loan guarantees.
Use of estimates
The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements
and accompanying notes, and disclosure of contingent liabilities at the date of the consolidated financial statements. Estimates are used
for, but not limited to, the assumptions and estimates used
|
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:
his or her mortgage payments during the Mortgage Loan
Guarantee Period and the Company has not returned any loan proceeds pursuant to its mortgage loan guarantees.
Use of estimates
The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements
and accompanying notes, and disclosure of contingent liabilities at the date of the consolidated financial statements. Estimates are used
for, but not limited to, the assumptions and estimates used by management in recognizing development revenue under the percentage of completion
method, the selection of the useful lives of property and equipment, provision necessary for contingent liabilities, revenue recognition,
taxes and budgeted costs. Management believes that the estimates utilized in preparing its consolidated financial statements are reasonable
and prudent. Actual results could differ from these estimates.
55
Real estate property development completed and under development
Real estate property consists of finished residential
unit sites, commercial offices and residential unit sites under development. Green Giant Inc. leases the land for the residential unit sites
under land use right leases with various terms from the PRC government. The cost of land use rights is included in the development cost
and allocated to each project. Real estate property development completed and real estate property under development are stated at
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