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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-Q
Text:
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. As of March 31, 2023 and September 30, 2022, the Company’s total
income tax payable amounted to $13,593,838 and $13,279,845, respectively, which included the income tax payable balances in the PRC
of $10,028,839 and $9,714,844, respectively, and the Company expects to pay this income tax payable balance when the related real
estate projects are completely sold.
15
GREEN
GIANT INC.
(FORMERLY CHINA HGS
REAL ESTATE INC.)
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 7. TAXES
(continued)
The following table reconciles
the statutory rates to the Company’s effective tax rate 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-Q
Text:
,714,844, respectively, and the Company expects to pay this income tax payable balance when the related real
estate projects are completely sold.
15
GREEN
GIANT INC.
(FORMERLY CHINA HGS
REAL ESTATE INC.)
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 7. TAXES
(continued)
The following table reconciles
the statutory rates to the Company’s effective tax rate for the three and six months ended March 31, 2023 and 2022
Three Months Ended
Six Months Ended
March 31,
March 31,
2023
2022
2023
2022
Chinese statutory tax rate
25.0
25.0
25.0
25.0
Valuation allowance change and other adjustments*
(25
)%
6.3
(25
)%
5.6
Effective tax rate
31.3
30.6
other adjustment mainly represented non-deductible expenses
for the three and six months ended March 31, 2023 and 2022.
Income tax expense for
the three and six months ended March 31, 2023 and 2022 is
|
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-Q
Text:
0
25.0
25.0
Valuation allowance change and other adjustments*
(25
)%
6.3
(25
)%
5.6
Effective tax rate
31.3
30.6
other adjustment mainly represented non-deductible expenses
for the three and six months ended March 31, 2023 and 2022.
Income tax expense for
the three and six months ended March 31, 2023 and 2022 is summarized as follows:
Three
Months Ended
Six
Months Ended
March 31,
March 31,
2023
2022
2023
2022
Current tax provision
334,350
483,225
Deferred tax provision
Income tax provision
334,350
483,225
Recent
U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into
law on December 22, 2017. The U.S. Tax Reform significantly modified the U.S. Internal Revenue Code by, among other things, reducing
the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December
|
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-Q
Text:
334,350
483,225
Recent
U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “U.S. Tax Reform”), was signed into
law on December 22, 2017. The U.S. Tax Reform significantly modified the U.S. Internal Revenue Code by, among other things, reducing
the statutory U.S. federal corporate income tax rate from 35% to 21% for taxable years beginning after December 31,
2017; limiting and/or eliminating many business deductions; migrating the U.S. to a territorial tax system with a one-time transition
tax on a mandatory deemed repatriation of previously deferred foreign earnings of certain foreign subsidiaries; subject to certain limitations,
generally eliminating U.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign
earnings. Taxpayers may elect to pay the one-time transition tax over eight years or in a single lump sum. The U.S. Tax Reform also
includes provisions for a new tax on Global Intangible Low-Taxed Income (“GILTI”) effective for tax years of foreign
corporations beginning after December 31, 2017. The GILTI provisions
|
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-Q
Text:
.S. corporate income tax on dividends from foreign subsidiaries; and providing for new taxes on certain foreign
earnings. Taxpayers may elect to pay the one-time transition tax over eight years or in a single lump sum. The U.S. Tax Reform also
includes provisions for a new tax on Global Intangible Low-Taxed Income (“GILTI”) effective for tax years of foreign
corporations beginning after December 31, 2017. The GILTI provisions impose a tax on foreign income in excess of a deemed return
on tangible assets of controlled foreign corporations (“CFCs”), subject to the possible use of foreign tax credits and a
deduction equal to 50 percent to offset the income tax liability, subject to some limitations. As of March 31, 2023 and
September 30, 2022, the Company assessed that the related GILTI tax payable was nil, which is subject to the reassessment upon the Company’s
filling of GILTI information.
For the year ended September 30,
2018, the Company recognized a one-time transition toll tax of approximately $2.3 million that represented management’s estimate
of the amount of U.S. corporate income tax based
|
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-Q
Text:
. As of March 31, 2023 and
September 30, 2022, the Company assessed that the related GILTI tax payable was nil, which is subject to the reassessment upon the Company’s
filling of GILTI information.
For the year ended September 30,
2018, the Company recognized a one-time transition toll tax of approximately $2.3 million that represented management’s estimate
of the amount of U.S. corporate income tax based on the deemed repatriation to the United States of the Company’s share of previously
deferred earnings of certain non-U.S. subsidiaries and the VIE of the Company mandated by the U.S. Tax Reform. Green Giant Inc.’s estimate
of the onetime transition toll tax is subject to the finalization of management’s analysis related to certain matters, such as developing
interpretations of the provisions of the Tax Act and amounts related to the earnings and profits of certain foreign VIEs and the filing
of our tax returns. U.S. Treasury regulations, administrative interpretations or court decisions interpreting the Tax Act may require
further adjustments and changes in our estimates. Green Giant Inc. had a toll tax liability of $2.3 million in fiscal 2017 to reflect the max
|
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-Q
Text:
is subject to the finalization of management’s analysis related to certain matters, such as developing
interpretations of the provisions of the Tax Act and amounts related to the earnings and profits of certain foreign VIEs and the filing
of our tax returns. U.S. Treasury regulations, administrative interpretations or court decisions interpreting the Tax Act may require
further adjustments and changes in our estimates. Green Giant Inc. had a toll tax liability of $2.3 million in fiscal 2017 to reflect the max
exposure on the toll tax effect. However, the Company has no U.S. operations and no U.S financing in the past, therefore, the Company
does not believe it needs to pay such tax and no additional provision was accrued even since then, hence the balance remains $2.3 million
as of March 31, 2023 and September 30, 2022, respectively.
16
GREEN
GIANT INC.
(FORMERLY CHINA HGS
REAL ESTATE INC.)
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 7. TAXES (continued)
(C) Land Appreciation
Tax (“LAT”)
Since January 1,
1994, LAT has
|
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-Q
Text:
$2.3 million
as of March 31, 2023 and September 30, 2022, respectively.
16
GREEN
GIANT INC.
(FORMERLY CHINA HGS
REAL ESTATE INC.)
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 7. TAXES (continued)
(C) Land Appreciation
Tax (“LAT”)
Since January 1,
1994, LAT has been applicable at progressive tax rates ranging from 30% to 60% on the appreciation of land values, with an
exemption provided for the sales of ordinary residential properties if the appreciation values do not exceed certain thresholds specified
in the relevant tax laws. However, the Company’s local tax authority in Hanzhong City has not imposed the regulation on real estate
companies in its area of administration. Instead, the local tax authority has levied the LAT at the rate of 0.5% in Yang County
and 1.0% in Hanzhong against total cash receipts from sales of real estate properties, rather than according to the progressive
rates.
As of March 31, 2023
and September 30, 2022,
|
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-Q
Text:
’s local tax authority in Hanzhong City has not imposed the regulation on real estate
companies in its area of administration. Instead, the local tax authority has levied the LAT at the rate of 0.5% in Yang County
and 1.0% in Hanzhong against total cash receipts from sales of real estate properties, rather than according to the progressive
rates.
As of March 31, 2023
and September 30, 2022, the outstanding LAT payable balance was nil with respect to completed real estate properties sold up
to March 31, 2023 and September 30, 2022, respectively.
(D) Taxes payable
consisted of the following:
March 31,
September 30,
2023
2022
(Unaudited)
CIT
13,593,838
13,279,845
Business tax
4,021,992
4,144,254
Other taxes and fees
2,542,638
2,556,259
Tax payable
20,158,468
19,980,358
NOTE 8. COMMON STOCK
On January 14, 2022,
the Company closed a private placement with certain investors
|
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-Q
Text:
30,
2023
2022
(Unaudited)
CIT
13,593,838
13,279,845
Business tax
4,021,992
4,144,254
Other taxes and fees
2,542,638
2,556,259
Tax payable
20,158,468
19,980,358
NOTE 8. COMMON STOCK
On January 14, 2022,
the Company closed a private placement with certain investors. In connection with the private placement, the Company issued an aggregate
of 10,247,122 units (the “Units”), each Unit consisting of one share of common stock, par value $0.001 per
share (“Common Stock”) and a warrant to purchase three shares of Common Stock with an initial exercise price of
$2.375 at a price of $2.375 per Unit, for gross proceeds of approximately $24.3 million. The warrants expire five and
a half years from its date of issuance. The warrants are subject to customary anti-dilution provisions reflecting stock dividends and
splits or other similar transactions.
On March 16, 2022, the
Company entered into
|
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-Q
Text:
warrant to purchase three shares of Common Stock with an initial exercise price of
$2.375 at a price of $2.375 per Unit, for gross proceeds of approximately $24.3 million. The warrants expire five and
a half years from its date of issuance. The warrants are subject to customary anti-dilution provisions reflecting stock dividends and
splits or other similar transactions.
On March 16, 2022, the
Company entered into a certain securities purchase agreement (the “SPA”) with certain purchasers whom are “non-U.S.
Persons” (the “Investors”) as defined in Regulation S of the Securities Act, pursuant to which the Company agreed to
sell an aggregate of 4,600,000 shares (the “Shares”) of common stock, par value $0.001 per share, for an aggregate
purchase price of approximately $4.6 million (the “Offering”). On March 30, 2022, the transaction contemplated by the
SPA closed.
In connection with the
private placement of 10,247,122 units that closed on January 14, 2022, the Company issued warrants to purchase 30,741,366 shares
|
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-Q
Text:
shares (the “Shares”) of common stock, par value $0.001 per share, for an aggregate
purchase price of approximately $4.6 million (the “Offering”). On March 30, 2022, the transaction contemplated by the
SPA closed.
In connection with the
private placement of 10,247,122 units that closed on January 14, 2022, the Company issued warrants to purchase 30,741,366 shares
of common stock at $2.375 per share. These warrants are not exercisable until six months from the date of issuance and required the
reservation of common shares for their issuance. With the sales these units and other sales of common stock, the Company does not have
the necessary authorized shares should these warrants be converted and was not able to reserve the common stock underlying these warrants.
Green Giant Inc. is planning to increase their authorized shares prior to the warrants becoming exercisable. If the Company has not increased
the authorized shares sufficiently, these warrants will be reflected at their fair value as a liability which could be material.
17
GREEN
GIANT INC.
(FORMERLY CHINA HGS
REAL ESTATE INC.)
NOTES
TO CONDENSED CONS
|
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-Q
Text:
the necessary authorized shares should these warrants be converted and was not able to reserve the common stock underlying these warrants.
Green Giant Inc. is planning to increase their authorized shares prior to the warrants becoming exercisable. If the Company has not increased
the authorized shares sufficiently, these warrants will be reflected at their fair value as a liability which could be material.
17
GREEN
GIANT INC.
(FORMERLY CHINA HGS
REAL ESTATE INC.)
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 8. COMMON STOCK
(continued)
On March 30, 2022, the transaction contemplated
by the SPA closed.
On September 25, 2012, our shareholders approved
the Company’s 2012 Omnibus Securities and Incentive Plan (the “2012 Plan”). The 2012 Plan provides for the grant of
awards which are distribution equivalent rights, incentive stock options, non-qualified stock options, performance shares, performance
units, restricted shares of common stock, restricted stock units, stock appreciation rights (“SARs”), tandem stock appreciation
rights, unrestricted shares of common stock or any combination of the foregoing, to key management employees and nonemployee directors
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-Q
Text:
2012 Omnibus Securities and Incentive Plan (the “2012 Plan”). The 2012 Plan provides for the grant of
awards which are distribution equivalent rights, incentive stock options, non-qualified stock options, performance shares, performance
units, restricted shares of common stock, restricted stock units, stock appreciation rights (“SARs”), tandem stock appreciation
rights, unrestricted shares of common stock or any combination of the foregoing, to key management employees and nonemployee directors
of, and nonemployee consultants of, the Company or any of its subsidiaries (each a “participant”). We have reserved a total
of 1,000,000 shares of common stock for issuance under the 2012 Plan. The number of shares of common stock for which awards which are
options or SARs may be granted to a participant under the 2012 Plan during any calendar year is limited to 500,000.
Green Giant Inc. awards common stocks to a director
and three consultants pursuant to the 2022 Equity Incentive Plan, which was registered on the Form S-8. Compensation cost related to
such awards is measured based on the fair value of the instrument on the grant date. These common stocks are vested immediately after
granted.
On August
|
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-Q
Text:
which are
options or SARs may be granted to a participant under the 2012 Plan during any calendar year is limited to 500,000.
Green Giant Inc. awards common stocks to a director
and three consultants pursuant to the 2022 Equity Incentive Plan, which was registered on the Form S-8. Compensation cost related to
such awards is measured based on the fair value of the instrument on the grant date. These common stocks are vested immediately after
granted.
On August 10, 2022, Board of directors of the
Company issued an aggregate of 5,990,000 registered common stock of the Company, par value $0.001 per share (“Common Stock’),
from the Company’s current registration statement on Form S-8 (Form S-8), to the Consultants or their designees namely, Aizhen Wei,
Jun Liao and Youbing Li on the terms and conditions set forth in the Agreements, immediately vested upon grant. We record stock-based
compensation expense for non-employees at fair value on the grant date as the consideration for service received. On August 10, 2022 the
grant date, the Company’s share price closed at $3.23 per share, hence total share
|
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-Q
Text:
(Form S-8), to the Consultants or their designees namely, Aizhen Wei,
Jun Liao and Youbing Li on the terms and conditions set forth in the Agreements, immediately vested upon grant. We record stock-based
compensation expense for non-employees at fair value on the grant date as the consideration for service received. On August 10, 2022 the
grant date, the Company’s share price closed at $3.23 per share, hence total share-based compensation is equal to $19,347,700;
On September 6, 2022, the Company awarded Jian
Zhang, one of the independent directors of the Board, of 10,000 common shares as annual compensation for his role with the Board immediately
vested upon the grant date. On September 6, 2022/the grant date, the Company’s share price closed at $2.27 per share, hence
total share-based compensation is equal to $22,700.
Total share-based compensation amounts to $19,370,400
for three individuals plus the independent director.
On January 27,
2023, the company granted 40,000 shares of GGE’s restricted stock to FTGC or its designee 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-Q
Text:
vested upon the grant date. On September 6, 2022/the grant date, the Company’s share price closed at $2.27 per share, hence
total share-based compensation is equal to $22,700.
Total share-based compensation amounts to $19,370,400
for three individuals plus the independent director.
On January 27,
2023, the company granted 40,000 shares of GGE’s restricted stock to FTGC or its designee for the termination of the Exclusion
Placement Agent Agreement.
18
GREEN GIANT INC.
(FORMERLY CHINA HGS
REAL ESTATE INC.)
NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
NOTE 9. COMMITMENTS
AND CONTINGENCIES
From time to time, the
Company is a party to various legal actions arising in the ordinary course of business. Green Giant Inc. accrues costs related to these matters
when they become probable and as a result the amount of loss can be reasonably estimated. In determining whether a loss from a claim
is probable, and if it is possible to estimate the loss, the Company reviews and evaluates its litigation and regulatory matters on at
least a quarterly basis in light 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-Q
Text:
COMMITMENTS
AND CONTINGENCIES
From time to time, the
Company is a party to various legal actions arising in the ordinary course of business. Green Giant Inc. accrues costs related to these matters
when they become probable and as a result the amount of loss can be reasonably estimated. In determining whether a loss from a claim
is probable, and if it is possible to estimate the loss, the Company reviews and evaluates its litigation and regulatory matters on at
least a quarterly basis in light of potentially relevant factual and legal developments. If the Company determines a favorable outcome
is probable, or that the amount of loss cannot be reasonably estimated, the Company does not accrue costs for a potential litigation
loss.
As of March 31, 2023,
the VIE, Guangsha, was subject to several civil disputes with a supplier (the “General Contractor”), a general contractor
of the Company’s certain real estate projects. The total claim by the supplier is approximately $10.4 million, for which the
Company estimated that it is more than likely to pay approximately $10.4 million which was included in the accounts payable and other
payables in the accompanying consolidated balance sheets. The General Contractor and the Company are in the process of negotiating a
|
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-Q
Text:
, Guangsha, was subject to several civil disputes with a supplier (the “General Contractor”), a general contractor
of the Company’s certain real estate projects. The total claim by the supplier is approximately $10.4 million, for which the
Company estimated that it is more than likely to pay approximately $10.4 million which was included in the accounts payable and other
payables in the accompanying consolidated balance sheets. The General Contractor and the Company are in the process of negotiating a settlement.
Green Giant Inc. believes it can reach a settlement with a favorable outcome.
In addition, there are 139 cases against the Company,
the total claims of year to day amounts to $6.7 million according to the judgement outcome from local courts as of April 4, 2023, of which
approximately $5.9 million was accrued for the month ended December 31, 2022. The difference of $0.8 million was accrued for the
current reporting month ended March 31, 2023. Green Giant Inc. disputes the allegations in the lawsuit and intends to vigorously defend itself
in the action.
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
|
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-Q
Text:
2023, of which
approximately $5.9 million was accrued for the month ended December 31, 2022. The difference of $0.8 million was accrued for the
current reporting month ended March 31, 2023. Green Giant Inc. disputes the allegations in the lawsuit and intends to vigorously defend itself
in the action.
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 buyer obtains 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-month period, the mortgage banks require the Company to maintain as restricted cash, at least 5% of the mortgage proceeds
as security for the Company’s obligations under such guarantees. 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
|
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-Q
Text:
-twelve-month period, the mortgage banks require the Company to maintain as restricted cash, at least 5% of the mortgage proceeds
as security for the Company’s obligations under such guarantees. 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 the required reserves in its restricted cash account to cover any potential mortgage defaults as required by the mortgage
lenders. Since inception through the release of this report, the Company has not experienced any delinquent mortgage loans and has not
experienced any losses related to these guarantees. As of March 31, 2023 and September 30, 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-Q
Text:
gages 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 the required reserves in its restricted cash account to cover any potential mortgage defaults as required by the mortgage
lenders. Since inception through the release of this report, the Company has not experienced any delinquent mortgage loans and has not
experienced any losses related to these guarantees. As of March 31, 2023 and September 30, 2022, our outstanding guarantees in respect
of our customers’ mortgage loans amounted to approximately $25.7 million. As of March 31, 2023 and September 30, 2022, the
amount of restricted cash reserved for these guarantees was approximately $3.0 million and the Company believes that such reserves
are sufficient.
NOTE 10. SUBSEQUENT
EVENTS
Green Giant Inc. has evaluated subsequent events through
the date the financial statements were available to be issued. No other matters were identified affecting the accompanying financial
statements or related disclosures.
NOTE 11. GOING
CONCERN
As of March 31, 2023,
the Company had cash balance of $3.3 million. In addition to the cash balance
|
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-Q
Text:
.0 million and the Company believes that such reserves
are sufficient.
NOTE 10. SUBSEQUENT
EVENTS
Green Giant Inc. has evaluated subsequent events through
the date the financial statements were available to be issued. No other matters were identified affecting the accompanying financial
statements or related disclosures.
NOTE 11. GOING
CONCERN
As of March 31, 2023,
the Company had cash balance of $3.3 million. In addition to the cash balance, the Company has restricted cash of $3.0 million, contract
assets of $7.6 million, security deposits of $1.8 million and due from local governments for real estate property development completed
of $43.9 million. The balances of these assets are expected to be repaid on maturity dates and will also be used for working capital for
daily operation in the twelve months to come.
The management will enable
to meet the operating expenses obligation for the next twelve months from self-generated positive cashflow and external fund raising by
private equity financing or direct public offering. S-3 was approved on May 2, 2023 by SEC, and the Company is ready to raise fund through
direct public offering to support cash shortfall if any.
On
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cik:1158420
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expected to be repaid on maturity dates and will also be used for working capital for
daily operation in the twelve months to come.
The management will enable
to meet the operating expenses obligation for the next twelve months from self-generated positive cashflow and external fund raising by
private equity financing or direct public offering. S-3 was approved on May 2, 2023 by SEC, and the Company is ready to raise fund through
direct public offering to support cash shortfall if any.
On
November 14, 2022, the company announced to transform itself into the new energy business. Green Giant Inc. secured a purchase contract with
AGR in March 2023 and delivered battery recycle product to a vendor on April 16, 2023, the Company believes it will generate more revenue
from its new business.
Going forward there are no conditions
or events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern for one year after
the financial statement issuance date,
19
ITEM 2. MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
The following discussion
and analysis of financial condition and results of operations relates to the operations and financial condition reported in the una
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will generate more revenue
from its new business.
Going forward there are no conditions
or events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern for one year after
the financial statement issuance date,
19
ITEM 2. MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
The following discussion
and analysis of financial condition and results of operations relates to the operations and financial condition reported in the unaudited
condensed consolidated financial statements of Green Giant Inc. for the three and six months ended March 31, 2023 and 2022 and should
be read in conjunction with such financial statements and related notes included in this report. As used in this report, the terms “Company,”
“we,” “our,” “us” and “GGE” refer to Green Giant Inc., its subsidiaries and the VIE.
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
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cik:1158420
ticker:GGE
name:Green Giant Inc.
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the terms “Company,”
“we,” “our,” “us” and “GGE” refer to Green Giant Inc., its subsidiaries and the VIE.
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 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 U.S. Securities and Exchange Commission (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
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cik:1158420
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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 U.S. Securities and Exchange Commission (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.
Business Overview
Green Giant Inc. currently
operates in two segments, the real estate development business and green energy business. Green Giant Inc. engages in real estate development
through the VIE, Guangsha
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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.
Business Overview
Green Giant Inc. currently
operates in two segments, the real estate development business and green energy business. Green Giant Inc. engages in real estate development
through the VIE, Guangsha, in mainland China, and is transitioning itself from its real estate development business to a new energy corporation
and has appointed a CEO in its Delaware subsidiary to lead and operate the green energy business.
Green Giant Inc. engages in
real estate development, primarily in the construction and sale of residential apartments, car parks and commercial properties in mainland
China through Guangsha. Guangsha was founded by Mr. Xiaojun Zhu, and commenced operations in 1995 in Hanzhong, a prefecture-level city
in Shaanxi Province.
Currently, we conduct
our real estate development business through the VIE, in Hanzhong, Shaanxi Province. Since the initiation of our real estate development
business, we have been focused on expanding our business in certain Tier
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apartments, car parks and commercial properties in mainland
China through Guangsha. Guangsha was founded by Mr. Xiaojun Zhu, and commenced operations in 1995 in Hanzhong, a prefecture-level city
in Shaanxi Province.
Currently, we conduct
our real estate development business through the VIE, in Hanzhong, Shaanxi Province. Since the initiation of our real estate development
business, we have been focused on expanding our business in certain Tier 3 and Tier 4 cities and counties in China.
For the six months ended
March 31, 2023, our sales and gross profit were $0.7 million and $0.1million, respectively, representing an approximate 90.8% and 96.5%
decrease in sales and gross profit as compared to six months ended March 31, 2022, respectively. The decrease in sales and gross profit
was mainly the result of less gross floor area (“GFA “) sold during the first half of fiscal 2023.
20
For the six months ended
March 31, 2023, the average selling price (“ASP”) for our real estate projects located in Yang County was approximately $633
per square meter
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96.5%
decrease in sales and gross profit as compared to six months ended March 31, 2022, respectively. The decrease in sales and gross profit
was mainly the result of less gross floor area (“GFA “) sold during the first half of fiscal 2023.
20
For the six months ended
March 31, 2023, the average selling price (“ASP”) for our real estate projects located in Yang County was approximately $633
per square meter, increased from the ASP of $518 per square meter for the six months ended March 31, 2022, which was mainly attributable
to the following:
1.
Central and local governments relax control measures over real estate
development sector in an attempt to stimulate housing market, e.g. lift up quote for home buyers, lower interest rate on mortgage loans,
special policies form low income earners etc.
2.
Green Giant Inc. are selling completed house of Yang County project, not
blue-prints and so in high demand; it also attracts home buyers who are willing to pay for a higher price; Yang County project targets
high-end market, which has better location than residential complex.
3.
Yang County project targets high-end market, which has better
location than residential complex.
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cik:1158420
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name:Green Giant Inc.
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e.g. lift up quote for home buyers, lower interest rate on mortgage loans,
special policies form low income earners etc.
2.
Green Giant Inc. are selling completed house of Yang County project, not
blue-prints and so in high demand; it also attracts home buyers who are willing to pay for a higher price; Yang County project targets
high-end market, which has better location than residential complex.
3.
Yang County project targets high-end market, which has better
location than residential complex.
Recent Development
New Office Opening
On
February 3, 2023, the Company announced the opening of its Texas’ office located at 1330 Post Oak Blvd, Ste 1175, Houston, Texas
via its subsidiary Green Giant Energy Texas Inc. (“GGE Texas”). Green Giant Inc. has launched the green energy business since March
2023 specializing in uniting operational knowledge with critical
project funding to help companies conquer clean energy transition challenges and reducing their carbon footprint.
Registration Statement Filed
On March 7, 2023, the Company filed with the U.S.
Securities and Exchange Commission a registration statement on Form S-3, as amended, with aggregate offering amount not exceed $500,000,000
of the common stock,
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GE Texas”). Green Giant Inc. has launched the green energy business since March
2023 specializing in uniting operational knowledge with critical
project funding to help companies conquer clean energy transition challenges and reducing their carbon footprint.
Registration Statement Filed
On March 7, 2023, the Company filed with the U.S.
Securities and Exchange Commission a registration statement on Form S-3, as amended, with aggregate offering amount not exceed $500,000,000
of the common stock, preferred stock, warrants, subscription rights, debt securities units, or any combination thereof, together or separately
as described in the prospectus. The registration statement on Form S-3 was declared effective on May 2, 2023.
Resignation of the
Chairman and CEO
Effective March 12, 2023,
Mr. Neng Chen, resigned from his positions as the Chief Executive Officer (the “CEO”) of the Company and Chairman of the Board.
Mr. Neng Chen’s resignation is not as a result of any disagreement with the Company relating to its operations, policies or practices.
Appointment of Chairman
and CEO
Effective March 13, 2023,
the Board appointed Mr. Yuhuai Luo as the CEO of the Company and
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and CEO
Effective March 12, 2023,
Mr. Neng Chen, resigned from his positions as the Chief Executive Officer (the “CEO”) of the Company and Chairman of the Board.
Mr. Neng Chen’s resignation is not as a result of any disagreement with the Company relating to its operations, policies or practices.
Appointment of Chairman
and CEO
Effective March 13, 2023,
the Board appointed Mr. Yuhuai Luo as the CEO of the Company and Chairman of the Board, to fill the vacancy created by the resignation
of Mr. Neng Chen. Mr. Luo has served as the vice president of Guizhou Tobacco Company since September 2016. From January 2009 to June
2016, Mr. Luo served as the vice president of Huaxin Energy Subsidiary Company. From September 1989 to March 2008, Mr. Luo served as the
director of Guizhou Tobacco Company (Guiyang Branch). Mr. Luo obtained his bachelor’s degree from China Guizhou Agricultural University.
21
Contract With AGR
On March 23, 2023, the Company’s indirect
wholly owned subsidiary, Green Giant Energy Texas Inc. entered into a sales contract with
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cik:1158420
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served as the vice president of Huaxin Energy Subsidiary Company. From September 1989 to March 2008, Mr. Luo served as the
director of Guizhou Tobacco Company (Guiyang Branch). Mr. Luo obtained his bachelor’s degree from China Guizhou Agricultural University.
21
Contract With AGR
On March 23, 2023, the Company’s indirect
wholly owned subsidiary, Green Giant Energy Texas Inc. entered into a sales contract with AGR Enterprises Inc. pursuant to which Green
Giant Energy agreed to purchase, and AGR agreed to sell to Green Giant Energy, 80 MT Zorba Scrap, with the unit price of $1,930 per MT.
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. 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
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cik:1158420
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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. 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 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 mortgage loans.
Green Giant Inc. intends
to remain focused on our existing construction projects
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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 mortgage 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.
Critical Accounting Policies and Estimates
The discussion and analysis
of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared
in accordance with U.S. GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and judgments
that affect our reported assets, liabilities, revenues
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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.
Critical Accounting Policies and Estimates
The discussion and analysis
of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared
in accordance with U.S. GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and judgments
that affect our reported assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate
our estimates on an on-going basis and base them on historical experience and various other assumptions that are believed to be reasonable
under the circumstances as the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates because of different and changing assumptions or conditions.
We believe the following
critical accounting policies affect our significant estimates and judgments used in the preparation of our condensed consolidated financial
statements. These policies should be read in conjunction with Note 2 of the notes to the unaudited condensed consolidated financial
statements.
22
Revenue recognition
Green Giant Inc. follows FASB
ASC Topic 606 “Revenue from Contracts with Customers”
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that are not readily apparent
from other sources. Actual results may differ from these estimates because of different and changing assumptions or conditions.
We believe the following
critical accounting policies affect our significant estimates and judgments used in the preparation of our condensed consolidated financial
statements. These policies should be read in conjunction with Note 2 of the notes to the unaudited condensed consolidated financial
statements.
22
Revenue recognition
Green Giant Inc. follows FASB
ASC Topic 606 “Revenue from Contracts with Customers” (“ASC 606”). Under ASC 606, 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 Company satisfies a performance obligation.
Most of the Company’s
revenue is derived from real estate sales of condominiums and commercial properties in the PRC. The majority
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:
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 Company satisfies a performance obligation.
Most of the Company’s
revenue is derived from real estate sales of condominiums and commercial properties 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 its 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 project, 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. For the three and
six months ended March 31
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. 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 project, 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. For the three and
six months ended March 31, 2023 and 2022, the Company did not have any construction in progress recognized under the percentage of completion
method.
Disaggregation of Revenue
Disaggregated revenues
are as follows:
For the three months ended
March 31,
2023
2022
Revenue recognized for completed condominium real estate projects, net of sales tax
489,877
4,302,992
Revenue recognized for condominium real estate projects under development, net of sales tax
Total revenue, net of sales tax
489,877
4,302,992
For the six months ended
March 31,
2023
2022
Revenue recognized for completed condominium real estate projects, net of sales tax
652,583
7,121
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2
Revenue recognized for completed condominium real estate projects, net of sales tax
489,877
4,302,992
Revenue recognized for condominium real estate projects under development, net of sales tax
Total revenue, net of sales tax
489,877
4,302,992
For the six months ended
March 31,
2023
2022
Revenue recognized for completed condominium real estate projects, net of sales tax
652,583
7,121,986
Revenue recognized for condominium real estate projects under development, net of sales tax
Total revenue, net of sales tax
652,583
7,121,986
23
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 the passage of time. Contract liabilities include cash collected in advance
and in excess of revenue recognized. Customer deposits are
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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 the passage of time. Contract liabilities include cash collected in advance
and in excess of revenue recognized. Customer deposits are excluded from contract liabilities.
Green Giant Inc. immediately
expenses sales commissions (included under selling expenses) because sales commission are not expected to be recovered.
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
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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 Ownership 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
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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 Ownership 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 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
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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.
24
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 the lower of cost or fair value.
Expenditures for land
development, including cost of land use rights, deed tax, pre-development costs, and engineering costs,
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-Q
Text:
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 the lower of cost or fair value.
Expenditures for land
development, including cost of land use rights, deed tax, pre-development costs, and engineering costs, exclusive of depreciation, are
capitalized and allocated to development projects by the 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) multiplied
by the total cost of the project (or phase of the project).
Cost of amenities transferred
to buyers is allocated to specific units as a component of total construction cost. The amenity cost includes landscaping, road paving,
etc. Once the projects are completed, the amenities are under control of the property management companies. Real estate property development
completed and under development are subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is
recognized only if the carrying amount of the assets
|
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-Q
Text:
by the total cost of the project (or phase of the project).
Cost of amenities transferred
to buyers is allocated to specific units as a component of total construction cost. The amenity cost includes landscaping, road paving,
etc. Once the projects are completed, the amenities are under control of the property management companies. Real estate property development
completed and under development are subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is
recognized only if the carrying amount of the assets is not recoverable and exceeds its fair value. The carrying amount is not recoverable
if it exceeds the sum of the undiscounted cash flows expected to be generated by the assets. Green Giant Inc. reviews all of its real estate
projects for future losses and impairment by comparing the estimated future undiscounted cash flows for each project to the carrying value
of such project. For the three and six months ended March 31, 2023 and 2022, the Company did not recognize any impairment loss for its
real estate properties.
Results of Operations
Three Months Ended
March 31, 2023 compared to Three Months Ended March 31, 2022
Revenue
The following is a
breakdown of revenue:
For the three months
|
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-Q
Text:
estimated future undiscounted cash flows for each project to the carrying value
of such project. For the three and six months ended March 31, 2023 and 2022, the Company did not recognize any impairment loss for its
real estate properties.
Results of Operations
Three Months Ended
March 31, 2023 compared to Three Months Ended March 31, 2022
Revenue
The following is a
breakdown of revenue:
For the three months ended
March 31,
2023
2022
Revenue recognized for completed condominium real estate projects, net of sales tax
489,877
4,302,992
Revenue recognized for condominium real estate projects under development, net of sales tax
Total revenue, net of sales tax
489,877
4,302,992
25
Revenue recognized for
completed condominium real estate projects
The following table summarizes
our revenue generated by different projects:
For Three Months Ended March 31,
2023
2022
Variance
Revenue
Revenue
Amount
Mingzhu Garden (Mingzhu Nanyuan & Mingzhu Beiyuan) Phase I and II
235,375
5.4
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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-Q
Text:
net of sales tax
489,877
4,302,992
25
Revenue recognized for
completed condominium real estate projects
The following table summarizes
our revenue generated by different projects:
For Three Months Ended March 31,
2023
2022
Variance
Revenue
Revenue
Amount
Mingzhu Garden (Mingzhu Nanyuan & Mingzhu Beiyuan) Phase I and II
235,375
5.4
(235,375
(100.0
)%
Nanyuan II Project
Yangzhou Palace
488,172
98.21
4,126,622
94.4
(3,638,450
(88.2
)%
Yangzhou Pearl Garden Phase I and II
8,874
1.79
7,626
0.2
1,248
16.4
Gross Real Estate Sales
497,046
100.0
4,369,623
100.0
(3,872,577
(88.6
)%
Less: Sales Tax
(7,169
(66,631
59,462
(89.2
)%
Revenue, net of sales
|
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-Q
Text:
Pearl Garden Phase I and II
8,874
1.79
7,626
0.2
1,248
16.4
Gross Real Estate Sales
497,046
100.0
4,369,623
100.0
(3,872,577
(88.6
)%
Less: Sales Tax
(7,169
(66,631
59,462
(89.2
)%
Revenue, net of sales tax
489,877
4,302,992
(3,813,115
(88.6
)%
Our revenues are derived from the sale of residential
buildings, commercial store-fronts and parking spaces in projects that we have developed. Comparing to the same period of last year, revenues
decreased by 88.6% to approximately $0.5 million for the three months ended March 31, 2023 from approximately $4.3 million. The total
GFA sold during six months ended March 31, 2023 was 898 square meters, decreased from the 8,113 square meters completed and sold during
the same period of last fiscal year. The sales tax for the three months ended March
|
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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-Q
Text:
the same period of last year, revenues
decreased by 88.6% to approximately $0.5 million for the three months ended March 31, 2023 from approximately $4.3 million. The total
GFA sold during six months ended March 31, 2023 was 898 square meters, decreased from the 8,113 square meters completed and sold during
the same period of last fiscal year. The sales tax for the three months ended March 31, 2023 was approximately $7,169, decreased by 89.2%
from same period of last year, consistent with the decreased revenue.
Cost of Sales
The following table sets
forth a breakdown of our cost of sales:
For Three Months Ended March 31,
2023
2022
Variance
Cost
Cost
Amount
Land use rights
46,465
11.5
218,985
9.5
(172,520
(78.8
)%
Construction cost
356,905
88.5
2,086,118
90.5
(1,729,213
(82.9
)%
Total cost
403,370
100.0
2
|
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-Q
Text:
Ended March 31,
2023
2022
Variance
Cost
Cost
Amount
Land use rights
46,465
11.5
218,985
9.5
(172,520
(78.8
)%
Construction cost
356,905
88.5
2,086,118
90.5
(1,729,213
(82.9
)%
Total cost
403,370
100.0
2,305,103
100.0
(1,901,733
(82.5
)%
Our cost of sales consists
primarily of costs associated with land use rights and construction costs, including capitalized interest. 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
$0.4 million for the three months ended March 31, 2023 compared to $2.3 million for the same period of last year. The $1.9 million decrease
|
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-Q
Text:
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
$0.4 million for the three months ended March 31, 2023 compared to $2.3 million for the same period of last year. The $1.9 million decrease
in cost of sales was mainly attributable to less GFA sold during the three months ended March 31, 2023.
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
three months ended March 31, 2023 and 2022 were approximately $0.05 million and $0.2 million, respectively.
26
Construction
cost: We outsource the construction 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-Q
Text:
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
three months ended March 31, 2023 and 2022 were approximately $0.05 million and $0.2 million, respectively.
26
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 three months ending March 31, 2023
were approximately $0.4 million as compared to approximately $2.1 million for the same period of last
|
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-Q
Text:
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 three months ending March 31, 2023
were approximately $0.4 million as compared to approximately $2.1 million for the same period of last year, representing a decrease
of approximately $1.7 million. The decrease in construction cost was due to less real estate projects sold during the quarter ended
March 31, 2023.
Gross Profit
Gross profit and gross margin were approximately $0.09 million and
17.7 % respectively for the three months ended March 31, 2023 as compared to approximately $2.0 million and 46.4% respectively in
the same period of last year due to the economic downturn caused by the epidemic control in China and aforementioned.
For Three Months Ended March 31,
2023
2022
Gross Profit
Gross Margin
Gross Profit
Gross Margin
Ming
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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-Q
Text:
million and
17.7 % respectively for the three months ended March 31, 2023 as compared to approximately $2.0 million and 46.4% respectively in
the same period of last year due to the economic downturn caused by the epidemic control in China and aforementioned.
For Three Months Ended March 31,
2023
2022
Gross Profit
Gross Margin
Gross Profit
Gross Margin
Mingzhu Garden (Mingzhu Nanyuan & Mingzhu Beiyuan) Phase I and II
185,567
78.8
Oriental Garden
Yangzhou Pearl Garden Phase I and II
1,386
15.6
1,192
15.6
Yangzhou Palace
92,290
18.9
1,877,761
45.5
Sales Tax
(7,169
(66,631
Total gross profit
86,507
17.7
1,997,889
46.4
Revenue, net of sales tax
489,877
4,302,992
Operating Expenses
Total operating expenses increased by 83.2% to
approximately $1.2
|
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-Q
Text:
192
15.6
Yangzhou Palace
92,290
18.9
1,877,761
45.5
Sales Tax
(7,169
(66,631
Total gross profit
86,507
17.7
1,997,889
46.4
Revenue, net of sales tax
489,877
4,302,992
Operating Expenses
Total operating expenses increased by 83.2% to
approximately $1.2 million for the three months ended March 31, 2023 from $0.7 million for the three months ended March 31, 2022, primarily
due more general and administrative expense incurred for the three months ended March 31, 2022. Our general and administrative expense
was approximately $1.2 million for the three months ended March 31, 2023, increased by $0.7million from the three months ended March 31,
2022 due to litigation case of construction contract dispute with Zhejiang Hongcheng Construction Group Co., Ltd. in amount of RMB5.84 million
(US$0.85 million). Our total operating expenses accounted for 254.5% and 15.8% of our
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-Q
Text:
and administrative expense
was approximately $1.2 million for the three months ended March 31, 2023, increased by $0.7million from the three months ended March 31,
2022 due to litigation case of construction contract dispute with Zhejiang Hongcheng Construction Group Co., Ltd. in amount of RMB5.84 million
(US$0.85 million). Our total operating expenses accounted for 254.5% and 15.8% of our real estate sales for the three months ended March
31, 2023 and 2022, respectively.
For Three Months Ended
March 31,
2023
2022
Selling expenses
62,431
29,871
General and administrative expenses
1,184,079
650,426
Total operating expenses
1,246,510
680,297
Percentage of revenue, net of sales tax
254.5
15.8
27
Income Taxes
PRC Taxes
Green Giant Inc.’s PRC
subsidiary and VIE are governed by the Income Tax Law of the People’s Republic of China concerning the privately run enterprises,
which are generally subject to income tax on income reported in the statutory financial statements after appropriate
|
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-Q
Text:
1,184,079
650,426
Total operating expenses
1,246,510
680,297
Percentage of revenue, net of sales tax
254.5
15.8
27
Income Taxes
PRC Taxes
Green Giant Inc.’s PRC
subsidiary and VIE are governed by the Income Tax Law of the People’s Republic of China concerning the privately run enterprises,
which are generally subject to income tax on income reported in the statutory financial statements after appropriate tax adjustments.
Green Giant Inc.’s CIT rate is 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 three months ended March 31, 2023 and 2022, the Company’s effective
income tax rate was 0% and 31.3%.
|
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-Q
Text:
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 three months ended March 31, 2023 and 2022, the Company’s effective
income tax rate was 0% and 31.3%. The increase in the effective income tax rate for the three months ended March 31, 2023 was due to nondeductible
expenses including professional fees, and penalties and interest expense related to our U.S. delinquent tax filings.
Net income
We reported net income
of approximately $1.3 million for the three months ended March 31, 2023, as compared to net income of approximately $0.7 for the three
months ended March 31, 2022. The decrease of approximately $0.6 million in our net income was primarily due to less revenue for the three
months ended March 31, 2022 as discussed above under Revenues and Gross Profit.
Six Months Ended
March 31, 2023 compared
|
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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-Q
Text:
of approximately $1.3 million for the three months ended March 31, 2023, as compared to net income of approximately $0.7 for the three
months ended March 31, 2022. The decrease of approximately $0.6 million in our net income was primarily due to less revenue for the three
months ended March 31, 2022 as discussed above under Revenues and Gross Profit.
Six Months Ended
March 31, 2023 compared to Six Months Ended March 31, 2022
Revenue
The following is a
breakdown of revenue:
For the six months ended
March 31,
2023
2022
Revenue recognized for completed condominium real estate projects, net of sales taxes
652,583
7,121,986
Revenue recognized for condominium real estate projects under development, net of sales taxes
Total revenue, net of sales taxes
652,583
7,121,986
Revenue recognized for
completed condominium real estate projects
The following table summarizes
our revenue generated by different projects:
For Six Months Ended March
31,
2023
2022
Variance
Revenue
Revenue
Amount
Mingzhu Garden (Mingzhu Nanyuan &
|
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-Q
Text:
583
7,121,986
Revenue recognized for condominium real estate projects under development, net of sales taxes
Total revenue, net of sales taxes
652,583
7,121,986
Revenue recognized for
completed condominium real estate projects
The following table summarizes
our revenue generated by different projects:
For Six Months Ended March
31,
2023
2022
Variance
Revenue
Revenue
Amount
Mingzhu Garden (Mingzhu Nanyuan & Mingzhu Beiyuan) Phase I and Phase II
1,051,238
14.5
(1,051,238
(100.0
)%
Nanyuan II Project
Yangzhou Pearl Garden Phase I and Phase II
8,874
1.3
7,626
0.1
1,248
16.4
Oriental Garden
773,113
10.7
(773,113
(100.0
)%
Yangzhou Palace
652,884
98.7
5,416,861
74.7
(4,763,977
(87.9
)%
Gross Real Estate Sales
661,758
100.0
7,248,
|
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-Q
Text:
1.3
7,626
0.1
1,248
16.4
Oriental Garden
773,113
10.7
(773,113
(100.0
)%
Yangzhou Palace
652,884
98.7
5,416,861
74.7
(4,763,977
(87.9
)%
Gross Real Estate Sales
661,758
100.0
7,248,838
100.0
(6,587,080
(90.9
)%
Less: Sales Tax
(9,175
(126,852
117,677
(92.8
)%
Revenue, net of sales tax
652,583
7,121,986
(6,469,403
(90.8
)%
28
Our revenue is derived from the sale of residential
buildings, commercial store-fronts and parking spaces in projects that we have developed. Compared to the same period of last year, revenues
decreased by 90.8% to approximately $0.7 million for the six months ended March 31, 2023 from approximately $7.1 million in the same period
|
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-Q
Text:
7,121,986
(6,469,403
(90.8
)%
28
Our revenue is derived from the sale of residential
buildings, commercial store-fronts and parking spaces in projects that we have developed. Compared to the same period of last year, revenues
decreased by 90.8% to approximately $0.7 million for the six months ended March 31, 2023 from approximately $7.1 million in the same period
of last year. The total GFA sold during six months ended March 31, 2023 was 1,045 square meters, decreased from the 11,783 square meters
completed and sold during the same period of last year. The sales tax for the six months ended March 31, 2023 was approximately $9,175
decreased by 92.8% from same period of last year, consistent with the decreased revenue.
Cost of Sales
The following table sets
forth a breakdown of our cost of sales:
For Six Months Ended March 31,
2023
2022
Variance
Cost
Cost
Amount
Land use rights
52,238
9.8
357,263
9.5
(
|
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-Q
Text:
months ended March 31, 2023 was approximately $9,175
decreased by 92.8% from same period of last year, consistent with the decreased revenue.
Cost of Sales
The following table sets
forth a breakdown of our cost of sales:
For Six Months Ended March 31,
2023
2022
Variance
Cost
Cost
Amount
Land use rights
52,238
9.8
357,263
9.5
(305,025
(85.4
)%
Construction cost
481,424
90.2
3,403,396
90.5
(2,921,972
(85.9
)%
Total cost
533,662
100.0
3,760,659
100.0
(3,226,997
(85.8
)%
Our cost of sales consists
primarily of costs associated with land use rights and construction costs, including capitalized interest. 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
|
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-Q
Text:
3,760,659
100.0
(3,226,997
(85.8
)%
Our cost of sales consists
primarily of costs associated with land use rights and construction costs, including capitalized interest. 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
$0.5 million for the six months ended March 31, 2023 compared to $3.8 million for the same period of last year. The $3.2 million decrease
in cost of sales was mainly attributable to less GFA sold during the six months ended March 31, 2023.
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,
|
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-Q
Text:
million decrease
in cost of sales was mainly attributable to less GFA sold during the six months ended March 31, 2023.
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
six months ended March 31, 2023 and 2022 were approximately $0.05 million and $0.4 million, respectively.
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
|
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-Q
Text:
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 six months ending March 31, 2023
were approximately $0.5 million as compared to approximately $3.4 million for the same period of last year, representing a decrease
of approximately $2.9 million. The decrease in construction cost was due to less real estate property units sold during the first
half of fiscal 2023.
Gross Profit
Gross profit and gross
margin were approximately $0.12 million and 18.2 % respectively for the six months ended March 31, 2023 as compared to approximately
$3.3 million and 47.2% respectively in the same period of last
|
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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-Q
Text:
year, representing a decrease
of approximately $2.9 million. The decrease in construction cost was due to less real estate property units sold during the first
half of fiscal 2023.
Gross Profit
Gross profit and gross
margin were approximately $0.12 million and 18.2 % respectively for the six months ended March 31, 2023 as compared to approximately
$3.3 million and 47.2% respectively in the same period of last year due to the economic downturn caused by the epidemic control in China
and aforementioned.
29
The following table sets
forth the gross margin of each of our projects:
For Six Months Ended March 31,
2023
2022
Gross
Percentage
Gross
Percentage
Profit
of Revenue
Profit
of Revenue
Mingzhu Garden (Mingzhu Nanyuan & Mingzhu Beiyuan)
432,047
41.1
Oriental Garden
615,807
79.7
Nanyuan II project
Yangzhou Pearl Garden Phase I and Phase II
1,386
15.6
1,192
15.6
Yangzhou Palace
126,710
19.4
2,
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Percentage
Profit
of Revenue
Profit
of Revenue
Mingzhu Garden (Mingzhu Nanyuan & Mingzhu Beiyuan)
432,047
41.1
Oriental Garden
615,807
79.7
Nanyuan II project
Yangzhou Pearl Garden Phase I and Phase II
1,386
15.6
1,192
15.6
Yangzhou Palace
126,710
19.4
2,439,133
45.0
Sales Tax
(9,175
(126,852
Total gross profit
118,921
18.2
3,361,327
47.2
Revenue, net of sales tax
652,583
7,121,986
Operating Expenses
Total operating expenses
were approximately $1.9 million and $1.5 million for the six months ended March 31, 2023 and 2022, respectively. The 36.5% increase in
general administration expense for the six months ended March 31, 2023 due to litigation case of construction contract dispute with Zhejiang
Hongcheng Construction Group Co., Ltd. in amount of RMB5.84 million (US
|
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cik:1158420
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121,986
Operating Expenses
Total operating expenses
were approximately $1.9 million and $1.5 million for the six months ended March 31, 2023 and 2022, respectively. The 36.5% increase in
general administration expense for the six months ended March 31, 2023 due to litigation case of construction contract dispute with Zhejiang
Hongcheng Construction Group Co., Ltd. in amount of RMB5.84 million (US$0.85 million). Our total operating expenses accounted for
284.1% and 21.5% of our real estate sales for the six months ended March 31, 2023 and 2022, respectively.
For Six Months Ended
March 31,
2022
2021
Selling expenses
102,861
249,658
General and administrative expenses
1,750,896
1,282,353
Total operating expenses
1,853,757
1,532,011
Percentage of Revenue, net of sales tax
(284.1
)%
21.5
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
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Text:
2022
2021
Selling expenses
102,861
249,658
General and administrative expenses
1,750,896
1,282,353
Total operating expenses
1,853,757
1,532,011
Percentage of Revenue, net of sales tax
(284.1
)%
21.5
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
six months ended March 31, 2023 and 2022, 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
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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.
Net Income
We reported net income
of approximately negative $1.9 million for the six months ended March 31, 2023, as compared to net income of approximately $1.1million
for the six months ended March 31, 2022. The decrease of $3.0 million in our net income was primarily due to less revenue reported for
the first half of fiscal 2023 as discussed above under Revenues and Gross Profit.
30
Liquidity and Capital Resources
Our principal need for
liquidity and capital resources is to maintain working capital sufficient to support our operations and to make capital expenditures to
finance the growth of our business. Historically we mainly financed our
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cik:1158420
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name:Green Giant Inc.
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the six months ended March 31, 2022. The decrease of $3.0 million in our net income was primarily due to less revenue reported for
the first half of fiscal 2023 as discussed above under Revenues and Gross Profit.
30
Liquidity and Capital Resources
Our principal need for
liquidity and capital resources is to maintain working capital sufficient to support our operations and to make capital expenditures to
finance the growth of our business. Historically we mainly financed our operations primarily through cash flows from operations and borrowings
from our principal shareholder.
Liquidity
In recent years, the
Chinese government has implemented measures to control overheating residential and commercial property prices including but not limited
to restrictions on home purchase, increasing the down-payment requirement against speculative buying, development of low-cost rental housing
properties to help low-income groups while reducing the demand in the commercial housing market, increasing real estate property taxes
to discourage speculation, control of the land supply and slowdown the construction land auction process, etc. In addition, in December
2019, a novel strain of coronavirus (COVID-19) surfaced. COVID-19 has spread rapidly throughout China and worldwide, which has caused
significant volatility in the PRC and international markets. There is
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against speculative buying, development of low-cost rental housing
properties to help low-income groups while reducing the demand in the commercial housing market, increasing real estate property taxes
to discourage speculation, control of the land supply and slowdown the construction land auction process, etc. In addition, in December
2019, a novel strain of coronavirus (COVID-19) surfaced. COVID-19 has spread rapidly throughout China and worldwide, 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. To reduce the spread of COVID-19, the Chinese
government has employed measures including city lockdowns, quarantines, travel restrictions, suspension of business activities and school
closures. Due to difficulties resulting from the COVID-19 pandemic, including, but not limited to, the temporary closure of the Company’s
facilities and operations beginning in early February through early March 2020, limited support from the Company’s employees, delayed
access to construction raw material supplies, reduced customer visits to the Company’s sales office, and inability to promote real
estate property sales to customers on a timely basis, Green Giant Inc. had
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cik:1158420
ticker:GGE
name:Green Giant Inc.
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travel restrictions, suspension of business activities and school
closures. Due to difficulties resulting from the COVID-19 pandemic, including, but not limited to, the temporary closure of the Company’s
facilities and operations beginning in early February through early March 2020, limited support from the Company’s employees, delayed
access to construction raw material supplies, reduced customer visits to the Company’s sales office, and inability to promote real
estate property sales to customers on a timely basis, Green Giant Inc. had real estate sales of approximately $0.7 million for the six months
ended March 31, 2023, decreased from $7.2 million in the same period of last year. Based on the assessment of the current economic environment,
customer demand and sales trends, we believe that consumer spending has been restored in the local real estate market and real estate
sales are expected to grow in the coming periods. On the other side, due to the negative impact from the COVID-19 pandemic and its variants,
the development period of real estate properties and our operating cycle has been extended and we may not be able to liquidate our large
balance of completed real estate properties within the short term as we originally expected. In addition, as of March 31, 2023
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cik:1158420
ticker:GGE
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believe that consumer spending has been restored in the local real estate market and real estate
sales are expected to grow in the coming periods. On the other side, due to the negative impact from the COVID-19 pandemic and its variants,
the development period of real estate properties and our operating cycle has been extended and we may not be able to liquidate our large
balance of completed real estate properties within the short term as we originally expected. In addition, as of March 31, 2023, we had
large construction loans payable of approximately $112.2 million and accounts payable of approximately $11.0 million to be paid to subcontractors.
The extent of the impact of COVID-19 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 crisis, future government actions in response to the crisis 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 expected impact of the COVID-19
pandemic on its future operations, financial condition, liquidity and results of operations if the current situation
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cik:1158420
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name:Green Giant Inc.
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the length and severity of the crisis, the potential resurgence of the crisis, future government actions in response to the crisis 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 expected impact of the COVID-19
pandemic on its future operations, financial condition, liquidity and results of operations if the current situation continues. The above-mentioned
facts raise substantial doubt about the Company’s ability to continue as a going concern for at least one year from the date of
this filing.
In assessing its liquidity, management monitors and analyzes the Company’s
cash on-hand, its ability to generate sufficient revenue sources in the future, and its operating and capital expenditure commitments.
As of March 31, 2023, our total cash and restricted cash balance was approximately $3.3 million, increased from approximately $4.4 million
as of September 30, 2022. With respect to capital funding requirements, the Company budgeted its capital spending based on ongoing assessments
of needs to maintain adequate cash. As of March 31, 2023, we had approximately $76
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cik:1158420
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sufficient revenue sources in the future, and its operating and capital expenditure commitments.
As of March 31, 2023, our total cash and restricted cash balance was approximately $3.3 million, increased from approximately $4.4 million
as of September 30, 2022. With respect to capital funding requirements, the Company budgeted its capital spending based on ongoing assessments
of needs to maintain adequate cash. As of March 31, 2023, we had approximately $76.9million of completed residential apartments and commercial
units available for sale to potential buyers. Although we reported approximately $11.0 million accounts payable as of March 31, 2023,
due to the long-term relationship with our construction suppliers and subcontractors, we were able to effectively manage cash spending
on construction and negotiate with them to adjust the payment schedule based on our cash on hand. In addition, most of our existing real
estate development projects relate to the old town renovation which are supported by the local government. As of March 31, 2023, we reported
approximately $112.2 million of construction loans borrowed from financial institutions controlled by the local government and such loans
can only be used on the old town renovation related project development. We expect
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cik:1158420
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to effectively manage cash spending
on construction and negotiate with them to adjust the payment schedule based on our cash on hand. In addition, most of our existing real
estate development projects relate to the old town renovation which are supported by the local government. As of March 31, 2023, we reported
approximately $112.2 million of construction loans borrowed from financial institutions controlled by the local government and such loans
can only be used on the old town renovation related project development. We expect that we will be able to renew all of the existing construction
loans upon their maturity and borrow additional new loans from local financial institutions, when necessary, based on our past experience
and the Company’s good credit history. Also, the Company’s cash flows from pre-sales and current sales should provide financial
support for our current development projects and operations. For the three months ended March 31, 2023, we had six large ongoing construction
projects (see Note 3, real estate properties under development) which were under the preliminary development stage due to delayed inspection
and acceptance of the development plans by the local government. For the other four projects, we expect we will be able to obtain the
government’s approval of the development plans on these projects in the coming
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cik:1158420
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current sales should provide financial
support for our current development projects and operations. For the three months ended March 31, 2023, we had six large ongoing construction
projects (see Note 3, real estate properties under development) which were under the preliminary development stage due to delayed inspection
and acceptance of the development plans by the local government. For the other four projects, we expect we will be able to obtain the
government’s approval of the development plans on these projects in the coming fiscal year and start the pre-sale of the real estate
properties to generate cash when certain property development milestones have been achieved.
31
Cash Flow
Comparison of cash
flows results is summarized as follows:
Six months ended
March 31,
2023
2022
Net cash provided by (used in) operating activities
(1,157,079
7,334
Net cash used in investing activities
(5,354,400
(18,461,700
Net cash provided by financing activities
5,307,470
28,936,915
Effect of change of foreign exchange rate on cash and restricted cash
112,219
(356,551
Net increase (decrease) in cash and restricted cash
(1,091,
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cik:1158420
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name:Green Giant Inc.
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Text:
cash provided by (used in) operating activities
(1,157,079
7,334
Net cash used in investing activities
(5,354,400
(18,461,700
Net cash provided by financing activities
5,307,470
28,936,915
Effect of change of foreign exchange rate on cash and restricted cash
112,219
(356,551
Net increase (decrease) in cash and restricted cash
(1,091,790
10,125,998
Cash and restricted cash, beginning of period
4,368,177
3,465,189
Cash and restricted cash, end of period
3,276,387
13,591,187
Operating Activities
Net cash provided by
operating activities during the six months ended March 31, 2023 was $1,157,079, consisting of net loss of approximately $ 1.9 million
and net changes in our operating assets and liabilities, which mainly included an increase of spending in real estate property under development
of $2.6 million, offset by an increase in other payables of $2.72 million.
Net cash provided by
operating activities during the six months ended March 31
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by
operating activities during the six months ended March 31, 2023 was $1,157,079, consisting of net loss of approximately $ 1.9 million
and net changes in our operating assets and liabilities, which mainly included an increase of spending in real estate property under development
of $2.6 million, offset by an increase in other payables of $2.72 million.
Net cash provided by
operating activities during the six months ended March 31, 2022 was $7,334, consisting of net income of approximately $1.1 million and
net changes in our operating assets and liabilities, which mainly included an increase of spending in real estate property under development
of $8.1 million, a decrease in accounts payable of $5.9 million due to more payments to our supplier during the first half of fiscal 2022,
offset by decrease of real estate property completed of $3.8 million due to sales of real estate and a decrease in other assets
of $4.3 million due to the reduction of receivables from housing buyers, an increase of $2.9 million in customer deposits received from
real estate sales and an increase of $2.3 million in other
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accounts payable of $5.9 million due to more payments to our supplier during the first half of fiscal 2022,
offset by decrease of real estate property completed of $3.8 million due to sales of real estate and a decrease in other assets
of $4.3 million due to the reduction of receivables from housing buyers, an increase of $2.9 million in customer deposits received from
real estate sales and an increase of $2.3 million in other payable due to additional cost accrued for the first half of fiscal 2022.
Investing Activities
Net cash flows used in investing activities was approximately $5.4
million for six months ended March 31, 2023, which was mainly the prepayment made to purchase energy equipment and professional services.
There was $18,461,700 cash flows used in investing activities for six months ended March 31, 2022.
Financing Activities
Net cash flows provided
by financing activities was approximately $5.3 million for six months ended March 31, 2023, which was the proceeds received from two private
placements completed by the Company during the first half of fiscal 2023. There was $28,936,915 cash flows provided by financing
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cik:1158420
ticker:GGE
name:Green Giant Inc.
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filing_type:10-Q
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energy equipment and professional services.
There was $18,461,700 cash flows used in investing activities for six months ended March 31, 2022.
Financing Activities
Net cash flows provided
by financing activities was approximately $5.3 million for six months ended March 31, 2023, which was the proceeds received from two private
placements completed by the Company during the first half of fiscal 2023. There was $28,936,915 cash flows provided by financing activities
for six months ended March 31, 2022.
32
Off-Balance Sheet Arrangements
We do not have any off-balance
sheet arrangements as of the date of this quarterly report on the Form 10-Q.
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 buyer obtains 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-month period, the mortgage banks require the Company to maintain, as restricted cash of at
least 5%
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cik:1158420
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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 buyer obtains 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-month period, the mortgage banks require the Company to maintain, as restricted cash of at
least 5% of the mortgage proceeds as security for the Company’s obligations under such guarantees. 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
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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 the required reserves in its restricted cash account to cover any
potential mortgage defaults as required by the mortgage lenders. Since inception through the release of this report, the Company has not
experienced any delinquent mortgage loans and has not experienced any losses related to these guarantees. As of March 31, 2023 and September
30, 2022, our outstanding guarantees in respect of our customers’ mortgage loans amounted to approximately $25.7 million. As of
March 31, 2023 and September 30, 2022, the amount of restricted cash reserved for these guarantees was approximately $3.0 million and
the Company believes that such reserves are sufficient.
Inflation
Inflation has not had
a material impact on
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these guarantees. As of March 31, 2023 and September
30, 2022, our outstanding guarantees in respect of our customers’ mortgage loans amounted to approximately $25.7 million. As of
March 31, 2023 and September 30, 2022, the amount of restricted cash reserved for these guarantees was approximately $3.0 million and
the Company believes that such reserves are sufficient.
Inflation
Inflation has not had
a material impact on our real estate business in China and we do not expect inflation to have a material impact on our business in the
near future.
ITEM 3. QUANTITATIVE
AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Inflation
Inflationary factors,
such as increases in the cost of our products and overhead costs, could impair our operating results. Although we do not believe that
inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future
may have an adverse effect on our ability to maintain current levels of gross margin and selling, general and administrative expenses
as a percentage of sales revenue if the selling prices of our products do not increase with these increased costs.
We
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,
such as increases in the cost of our products and overhead costs, could impair our operating results. Although we do not believe that
inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future
may have an adverse effect on our ability to maintain current levels of gross margin and selling, general and administrative expenses
as a percentage of sales revenue if the selling prices of our products do not increase with these increased costs.
We Conduct Substantially
All Our Business in Foreign Country
Substantially all of
our operations are conducted in China and are subject to various political, economic, and other risks and uncertainties inherent in conducting
business in China. Among other risks, our Company and our subsidiaries’ operations are subject to the risks of restrictions on transfer
of funds; export duties, quotas, and embargoes; domestic and international customs and tariffs; changing taxation policies; foreign exchange
restrictions; and political conditions and governmental regulations.
33
ITEM 4. CONTROLS
AND PROCEDURES
Evaluation of Disclosure
Controls and Procedures
Under the supervision
and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation
of the effectiveness
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cik:1158420
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operations are subject to the risks of restrictions on transfer
of funds; export duties, quotas, and embargoes; domestic and international customs and tariffs; changing taxation policies; foreign exchange
restrictions; and political conditions and governmental regulations.
33
ITEM 4. CONTROLS
AND PROCEDURES
Evaluation of Disclosure
Controls and Procedures
Under the supervision
and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation
of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended, as of the end of the period covered by this Quarterly Report on
Form 10-Q (the “Evaluation Date”). The evaluation of our disclosure controls and procedures included a review of our
processes and the effect on the information generated for use in this Quarterly Report on Form 10-Q. In the course of this evaluation,
we sought to identify any material weaknesses in our disclosure controls and procedures and to confirm that any necessary corrective action,
including process improvements, was taken. The purpose of this evaluation is to determine if, as of the Evaluation Date
|
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-Q
Text:
Quarterly Report on
Form 10-Q (the “Evaluation Date”). The evaluation of our disclosure controls and procedures included a review of our
processes and the effect on the information generated for use in this Quarterly Report on Form 10-Q. In the course of this evaluation,
we sought to identify any material weaknesses in our disclosure controls and procedures and to confirm that any necessary corrective action,
including process improvements, was taken. The purpose of this evaluation is to determine if, as of the Evaluation Date, our disclosure
controls and procedures were operating effectively such that the information, required to be disclosed in our SEC reports (i) was
recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) was accumulated
and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely
decisions regarding required disclosure.
Management conducted
its evaluation of disclosure controls and procedures under the supervision of our chief executive officer and our chief financial officer.
Based upon this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and
procedures were not effective as of March 31, 2023. Management is committed to improving the internal controls over financial reporting
|
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-Q
Text:
and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely
decisions regarding required disclosure.
Management conducted
its evaluation of disclosure controls and procedures under the supervision of our chief executive officer and our chief financial officer.
Based upon this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and
procedures were not effective as of March 31, 2023. Management is committed to improving the internal controls over financial reporting
and will undertake the consistent improvements or enhancements on an ongoing basis. To remediate the material weakness and significant
deficiencies and to prevent similar deficiencies in the future, we are currently evaluating additional controls and procedures, which
may include:
Provide more U.S. GAAP knowledge
and SEC reporting requirements training for the accounting department and establish formal policies and procedures.
The remedial measures
being undertaken may not be fully effectuated or may be insufficient to address the significant deficiencies we identified, and there
can be no assurance that significant deficiencies or material weaknesses in our internal control over financial reporting will not be
identified or occur in the future. If additional significant deficiencies (or if material weaknesses) in our internal controls are discovered
or occur in the future, among other similar or related
|
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-Q
Text:
and SEC reporting requirements training for the accounting department and establish formal policies and procedures.
The remedial measures
being undertaken may not be fully effectuated or may be insufficient to address the significant deficiencies we identified, and there
can be no assurance that significant deficiencies or material weaknesses in our internal control over financial reporting will not be
identified or occur in the future. If additional significant deficiencies (or if material weaknesses) in our internal controls are discovered
or occur in the future, among other similar or related effects: (i) the Company may fail to meet future reporting obligations on
a timely basis, (ii) the Company’s consolidated financial statements may contain material misstatements, and (iii) the
Company’s business and operating results may be harmed.
Changes in Internal
Control over Financial Reporting
Except for the matters
described above to improve our internal controls over financial reporting, there were no changes in our internal control over financial
reporting for the three months ended March 31, 2023 that materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting, however, the Company is in the process of designing and planning to change as described above.
34
PART II: OTHER
INFORMATION
ITEM
|
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-Q
Text:
Internal
Control over Financial Reporting
Except for the matters
described above to improve our internal controls over financial reporting, there were no changes in our internal control over financial
reporting for the three months ended March 31, 2023 that materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting, however, the Company is in the process of designing and planning to change as described above.
34
PART II: OTHER
INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We may be subject to,
from time to time, various legal proceedings relating to claims arising out of our operations in the ordinary course of our business.
As of March 31, 2023,
the VIE, Guangsha, was subject to several civil disputes with a supplier (the “General Contractor”), a general contractor
of the Company’s certain real estate projects. The total claim by the supplier is approximately $10.4 million, for which the
Company estimated that it is more than likely to pay approximately $10.4 million which was included in the accounts payable and other
payables in the accompanying consolidated balance sheets. The General Contractor and the Company are in the process of negotiating a settlement.
Green Giant Inc.
|
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-Q
Text:
was subject to several civil disputes with a supplier (the “General Contractor”), a general contractor
of the Company’s certain real estate projects. The total claim by the supplier is approximately $10.4 million, for which the
Company estimated that it is more than likely to pay approximately $10.4 million which was included in the accounts payable and other
payables in the accompanying consolidated balance sheets. The General Contractor and the Company are in the process of negotiating a settlement.
Green Giant Inc. believes it can reach a settlement with a favorable outcome.
In
addition, there are 139 cases against the Company, the total claims of year to day amounts to $6.7 million according to the judgement
outcome from local courts as of April 4, 2023, of which approximately $5.9 million was accrued for the month ended December 31, 2022.
The difference of $0.8 million was accrued for the current reporting months ended
March 31, 2023. Green Giant Inc. disputes the allegations in the lawsuit and intends to vigorously defend itself in the action.
ITEM 1A. RISK FACTORS
As a smaller reporting
company, we are not required to provide the information required by this item.
ITEM
|
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-Q
Text:
3, of which approximately $5.9 million was accrued for the month ended December 31, 2022.
The difference of $0.8 million was accrued for the current reporting months ended
March 31, 2023. Green Giant Inc. disputes the allegations in the lawsuit and intends to vigorously defend itself in the action.
ITEM 1A. RISK FACTORS
As a smaller reporting
company, we are not required to provide the information required by this item.
ITEM 2. UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Other than any sales previously reported in the Company’s Current
Reports on Form 8-K, the Company did not sell any unregistered securities during the period covered by this report.
ITEM 3. DEFAULTS
UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY
DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
None.
35
ITEM 6. EXHIBITS
(a) Exhibits
Exhibit
Number
Description of Exhibit
3.1
Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the SB-2
|
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-Q
Text:
this report.
ITEM 3. DEFAULTS
UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY
DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
None.
35
ITEM 6. EXHIBITS
(a) Exhibits
Exhibit
Number
Description of Exhibit
3.1
Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the SB-2 Registration Statement filed with SEC on August 31, 2001).
3.2
Bylaws (incorporated by reference to Exhibit 3.2 to the SB-2 Registration Statement filed with SEC on August 31, 2001).
3.3
Articles of Amendment to Articles of Incorporation changing the name of the Company to China Agro Sciences Corp. (incorporated by reference to Exhibit 3.3 to the Current Report on Form 8-K filed with SEC on May 5, 2006).
3.4
Articles of incorporation of the registrant as amended with the Secretary of State of Florida on October 8, 2009 (incorporated by reference to Exhibit 3.2 to the Quarterly Report on Form
|
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-Q
Text:
of Amendment to Articles of Incorporation changing the name of the Company to China Agro Sciences Corp. (incorporated by reference to Exhibit 3.3 to the Current Report on Form 8-K filed with SEC on May 5, 2006).
3.4
Articles of incorporation of the registrant as amended with the Secretary of State of Florida on October 8, 2009 (incorporated by reference to Exhibit 3.2 to the Quarterly Report on Form 10-Q filed with SEC on August 16, 2010).
3.5
Articles of Amendment to Articles of Incorporation to effect 1 share for 2 shares reverse split (incorporated by reference to Exhibit 3.1 to the current report on Form 8-K filed with SEC on September 1, 2020).
3.6
Articles of Amendment to Articles of Incorporation to change the name of the Company to “Green Giant Inc.” (incorporated by reference to Exhibit 3.1 to the current report on Form 8-K filed with SEC on March 23, 2022).
3.7
Articles of Amendment to Articles of Incorporation for the increase of the authorized shares of common stock (incorporated by reference
|
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-Q
Text:
8-K filed with SEC on September 1, 2020).
3.6
Articles of Amendment to Articles of Incorporation to change the name of the Company to “Green Giant Inc.” (incorporated by reference to Exhibit 3.1 to the current report on Form 8-K filed with SEC on March 23, 2022).
3.7
Articles of Amendment to Articles of Incorporation for the increase of the authorized shares of common stock (incorporated by reference to Exhibit 3.1 to the current report on Form 8-K filed with SEC on July 11, 2022).
4.1
Description of Securities (incorporated by reference to Exhibit 4.1 to the Annual Report on Form 10-K filed with SEC on January 13, 2023).
10.1
Employment Agreement, dated March 13, 2023 by and between the Company and Yuhuai Luo (incorporated by reference to Exhibit 10.1 to the current report on Form 8-K filed with SEC on March 15, 2023)
10.2
Sales Contract, dated March 23, 2023, by and between Green Giant Energy Texas Inc. and AGR Enterprises Inc
|
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-Q
Text:
with SEC on January 13, 2023).
10.1
Employment Agreement, dated March 13, 2023 by and between the Company and Yuhuai Luo (incorporated by reference to Exhibit 10.1 to the current report on Form 8-K filed with SEC on March 15, 2023)
10.2
Sales Contract, dated March 23, 2023, by and between Green Giant Energy Texas Inc. and AGR Enterprises Inc. (incorporated by reference to Exhibit 10.1 to the current report on Form 8-K filed with SEC on April 7, 2023)
31.1*
Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**
Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**
Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350
|
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