Golden Heaven Group Holdings Ltd. Announces Financial Results for Fiscal Year 2023
- Successful listing on Nasdaq in April 2023 aided market expansion.
- Total revenue for fiscal year 2023 was $31.8 million, a decline from the previous year.
- Net income decreased by 54.29% to $6.5 million in fiscal year 2023.
- Gross profit margin decreased to 60.76% in fiscal year 2023 from 72.19% in fiscal year 2022.
- Revenue from sales of in-park recreation decreased by 23.52% in fiscal year 2023.
- Rental income increased by 39.04% in fiscal year 2023.
- Park service fees revenue decreased from $1.3 million in fiscal year 2022 to $0.2 million in fiscal year 2023.
- Cost of revenue increased by 7.32% in fiscal year 2023 mainly due to maintenance fees.
- Total operating expenses decreased by 4.28% in fiscal year 2023.
- Income tax expense decreased by 33.17% in fiscal year 2023.
- Cash and cash equivalents decreased to $0.2 million as of September 30, 2023, from $22.4 million in the previous year.
- Net income decreased significantly by 54.29% in fiscal year 2023.
- Gross profit margin declined to 60.76% in fiscal year 2023.
- Revenue from sales of in-park recreation decreased by 23.52% in fiscal year 2023.
- Park service fees revenue decreased from $1.3 million in fiscal year 2022 to $0.2 million in fiscal year 2023.
- Cash and cash equivalents decreased to $0.2 million as of September 30, 2023, from $22.4 million in the previous year.
Insights
The financial results of Golden Heaven Group Holdings Ltd. for the fiscal year ended September 30, 2023, reflect a significant downturn in performance, with total revenue and net income experiencing substantial declines of 23.93% and 54.29% respectively. This contraction is primarily attributed to lower park attendance due to extended periods of facility maintenance. The decreased gross margin from 72.19% to 60.76% indicates pressure on profitability, likely exacerbated by increased maintenance costs. However, the rise in rental income by 39.04% suggests a potential area for revenue diversification.
From an investor's perspective, the sharp decrease in cash and cash equivalents from $22.4 million to $0.2 million raises concerns about liquidity and the company's ability to fund operations or expansions without resorting to additional financing, which could dilute shareholder value. The company's stock price may react negatively to these results, as decreased earnings often lead to reduced investor confidence. Investors should monitor the company's ability to rebound from the operational challenges and whether it can effectively capitalize on its Nasdaq listing to drive market expansion.
The amusement park industry is highly sensitive to factors such as consumer discretionary spending and operational efficiency. Golden Heaven's decline in attendance, likely influenced by prolonged maintenance shutdowns, underscores the importance of maintaining operational continuity. While collaborations with other major amusement parks could present cross-promotional opportunities and enhance market presence, the effectiveness of these strategies in offsetting the current downturn remains to be seen.
Moreover, the shift in revenue composition, with an increase in rental income, indicates a pivot that may reflect the company's adaptation to market conditions. This could be a strategic move to leverage assets more effectively, especially during periods of low attendance. The decrease in park service fees due to reduced government support post-COVID-19 suggests that the company may need to develop new revenue streams or event strategies independent of external assistance to ensure financial stability.
The fiscal results of Golden Heaven highlight broader economic trends affecting consumer-centric industries in China. The decrease in park attendance could be indicative of a broader slowdown in consumer spending, especially in leisure and discretionary sectors. The company's financial performance must be contextualized within the larger economic environment, including consumer confidence, disposable income levels and competition within the entertainment sector.
While the company's listing on Nasdaq is a positive step towards attracting international investment, the actual impact on financial performance will depend on the global economic climate and investor sentiment towards Chinese equities. The company's future strategies, including customer satisfaction and market expansion, will need to align with economic forecasts and consumer trends to mitigate the risk of further revenue declines.
NANPING,
Ms. Qiong Jin, the CEO and Chairman of the Company, commented, "This 2023 fiscal year marked a period of resilience for the Company. Our parks experienced decreases in park attendance, mainly due to facility safety maintenance from June 2023 to September 2023, which had a notable impact on our immediate financial performance. Despite such challenges, we pursued collaborations with major amusement parks in
Fiscal Year 2023 Financial Highlights
- Total revenue was
$31.8 million $41.8 million - Gross profit was
$19.3 million $30.2 million 60.76% in fiscal year 2023, compared to72.19% in fiscal year 2022. - Income from operations was
$10.7 million $21.2 million - Net income was
$6.5 million $14.3 million - Earnings per share was
$0.13 $0.29
Fiscal Year 2023 Financial Results
Revenue
For the Year Ended | For the Year Ended | ||||||||||||
USD | % | USD | % | ||||||||||
Sales of in-park recreation | 30,115,995 | 94.74 % | $ | 39,377,906 | 94.23 | % | |||||||
Rental income | 1,514,697 | 4.77 % | 1,089,435 | 2.61 | % | ||||||||
Park service fees | 156,110 | 0.49 % | 1,320,855 | 3.16 | % | ||||||||
Total revenue | 31,786,802 | 100.00 % | 41,788,196 | 100.00 | % | ||||||||
Our revenue was derived from sales of in-park recreation, rental income, and park service fees. The total revenue was
Our revenue from each of our revenue segments is summarized as follows:
For fiscal year 2023:
(USD) | Sales of in-park recreation | Rental income | Park service fees | Total | ||||||||||||
Reportable segment revenue | $ | 30,115,995 | $ | 1,514,697 | $ | 156,110 | $ | 31,786,802 | ||||||||
Inter-segment loss | - | - | - | - | ||||||||||||
Revenue from external customers | 30,115,995 | 1,514,697 | 156,110 | 31,786,802 | ||||||||||||
Segment gross profit | $ | 17,642,945 | $ | 1,514,697 | $ | 156,110 | $ | 19,313,752 | ||||||||
Gross margin | 58.58 | % | 100 | % | 100 | % | 60.76 | % | ||||||||
For fiscal year 2022:
(USD) | Sales of in-park recreation | Rental income | Park service fees | Total | ||||||||||||
Reportable segment revenue | $ | 39,377,906 | $ | 1,089,435 | $ | 1,320,855 | $ | 41,788,196 | ||||||||
Inter-segment loss | — | — | — | — | ||||||||||||
Revenue from external customers | 39,377,906 | 1,089,435 | 1,320,855 | 41,788,196 | ||||||||||||
Segment gross profit | $ | 27,755,558 | $ | 1,089,435 | $ | 1,320,855 | $ | 30,165,848 | ||||||||
Gross margin | 70.49 | % | 100 | % | 100 | % | 72.19 | % | ||||||||
Sales of in-park recreation
Revenue from sales of in-park recreation was
Rental income
Revenue from rental income was
Park service fees
Revenue from park service fees was
Cost of Revenue
Cost of revenue was
Gross Profit
Gross profit was
Gross profit margin was
Operating Expenses
Total operating expenses were
The
The
Income Tax Expense
Income tax expense was
Net Income
Net income was
Cash and Cash Equivalents
As of September 30, 2023, our cash and cash equivalents amounted to
About Golden Heaven Group Holdings Ltd.
Golden Heaven Group Holdings Ltd. manages and operates six properties consisting of amusement parks, water parks, and complementary recreational facilities. With approximately 426,560 square meters of land in the aggregate, these parks are located in geographically diverse markets across the south of
Forward-Looking Statements
This press release contains "forward-looking statements". Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "could," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "propose," "potential," "continue" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the
For investor and media inquiries, please contact:
Golden Heaven Group Holdings Ltd.
Email: group@jsyoule.com
Ascent Investor Relations LLC
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
GOLDEN HEAVEN GROUP HOLDING LTD. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
September 30, 2023 | September 30, 2022 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 245,908 | $ | 22,447,145 | ||||
Advances to suppliers and other current assets | 14,433,069 | 1,987,750 | ||||||
Other receivables | 57,723 | 52,370 | ||||||
TOTAL CURRENT ASSETS | $ | 14,736,700 | $ | 24,487,265 | ||||
Property, plant and equipment, net | $ | 32,321,643 | $ | 27,782,087 | ||||
Right-of-use assets | 6,151,204 | 6,648,370 | ||||||
Other non-current assets | 29,017,886 | 14,167,421 | ||||||
TOTAL NON-CURRENT ASSETS | 67,490,733 | 48,597,878 | ||||||
TOTAL ASSETS | $ | 82,227,433 | $ | 73,085,143 | ||||
LIABILITIES | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 4,259,820 | $ | - | ||||
Accrued expenses and other payables | 3,037,092 | 3,119,562 | ||||||
Tax payable | 1,012,103 | 2,736,145 | ||||||
Advances from customers | 5,732,349 | 9,645,494 | ||||||
Loan payables | 139,280 | 140,849 | ||||||
Lease liability-current | 346,005 | 427,855 | ||||||
TOTAL CURRENT LIABILITIES | $ | 14,526,649 | $ | 16,069,905 | ||||
NON-CURRENT LIABILITIES | ||||||||
Lease liability-non-current | 5,805,199 | 6,220,515 | ||||||
Other non-current liabilities | 237,472 | 282,402 | ||||||
Amount due to related party | $ | 607,355 | $ | 904,965 | ||||
TOTAL NON-CURRENT LIABILITIES | 6,650,026 | 7,407,882 | ||||||
TOTAL LIABILITIES | $ | 21,176,675 | $ | 23,477,787 | ||||
STOCKHOLDERS' EQUITY | ||||||||
Golden Heaven Group Holdings Ltd., Stockholders' equity | ||||||||
Ordinary shares, | $ | 5,175 | $ | 5,000 | ||||
Additional paid-in capital | 9,652,412 | 3,372,733 | ||||||
Retained earnings | 55,559,561 | 49,099,917 | ||||||
Accumulated other comprehensive loss | (4,166,390) | (2,870,294) | ||||||
Total stockholders' equity | 61,050,758 | 49,607,356 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 82,227,433 | $ | 73,085,143 | ||||
GOLDEN HEAVEN GROUP HOLDING LTD. | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||
For the Fiscal Year Ended | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Revenue | $ | 31,786,802 | $ | 41,788,196 | $ | 38,517,742 | ||||||
Cost of revenue | 12,473,050 | 11,622,348 | 11,687,156 | |||||||||
Gross profit | 19,313,752 | 30,165,848 | 26,830,586 | |||||||||
Operating expenses | ||||||||||||
General and administrative expenses | 4,900,269 | 4,066,178 | 2,509,090 | |||||||||
Selling expenses | 3,688,104 | 4,906,579 | 5,601,274 | |||||||||
Total operating expenses | 8,588,373 | 8,972,757 | 8,110,364 | |||||||||
Income from operations | 10,725,379 | 21,193,091 | 18,720,222 | |||||||||
Other income (expenses) | ||||||||||||
Interest income | 74,553 | 42,320 | 64,320 | |||||||||
Interest expenses | (6,008) | (6,162) | (4,583) | |||||||||
Loss on disposal of property, plant and equipment | (156,072) | (521,189) | (473,596) | |||||||||
Other income (expenses), net | 151,771 | (34,723) | 5,815 | |||||||||
Total other income (expenses), net | 64,244 | (519,754) | (408,044) | |||||||||
Income before income tax | 10,789,623 | 20,673,337 | 18,312,178 | |||||||||
Income tax expense | (4,240,039) | (6,344,963) | (4,731,803) | |||||||||
Net income | $ | 6,549,584 | $ | 14,328,374 | 13,580,375 | |||||||
Other comprehensive income | ||||||||||||
Net income | $ | 6,549,584 | $ | 14,328,374 | 13,580,375 | |||||||
Foreign currency translation | (1,296,096) | (4,514,705) | 1,288,049 | |||||||||
Comprehensive income | 5,253,488 | 9,813,669 | 14,868,424 | |||||||||
Basic & diluted earnings per share | $ | 0.13 | $ | 0.29 | $ | 0.14 | ||||||
Basic & diluted weighted average number of ordinary shares | 50,810,274 | 50,000,000 | 100,000,000 | |||||||||
GOLDEN HEAVEN GROUP HOLDING LTD.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
The Fiscal Years ended September 30, 2022
Ordinary shares | Statutory | Retained | Accumulative | |||||||||||||||||||||
Shares | Amount | reserve | earnings | income | Total | |||||||||||||||||||
Balance at September 30, | 100,000,000 | $ | 10,000 | $ | 3,009,476 | $ | 35,134,800 | $ | 1,644,411 | $ | 39,798,687 | |||||||||||||
Shares cancelled by | (50,000,000) | (5,000) | — | — | — | (5,000) | ||||||||||||||||||
Net income | — | — | — | 14,328,374 | — | 14,328,374 | ||||||||||||||||||
Statutory reserve | — | — | 363,257 | (363,257) | — | — | ||||||||||||||||||
Foreign currency | — | — | — | — | (4,514,705) | (4,514,705) | ||||||||||||||||||
Balance at September 30, | 50,000,000 | $ | 5,000 | $ | 3,372,733 | $ | 49,099,917 | $ | (2,870,294) | $ | 49,607,356 | |||||||||||||
The Fiscal Years ended September 30, 2023
Ordinary shares | Statutory | Additional | Retained | Accumulative | ||||||||||||||||||||||||
Shares | Amount | reserve | capital | earnings | income | Total | ||||||||||||||||||||||
Balance at September 30, | 50,000,000 | $ | 5,000 | 3,372,733 | $ | — | $ | 49,099,917 | $ | (2,870,294) | $ | 49,607,356 | ||||||||||||||||
Issuance of ordinary | 1,750,000 | 175 | — | 6,189,739 | — | — | 6,189,914 | |||||||||||||||||||||
Net income | — | — | — | — | 6,549,584 | — | 6,549,584 | |||||||||||||||||||||
Statutory reserve | — | — | 89,940 | — | (89,940) | — | — | |||||||||||||||||||||
Foreign currency | — | — | — | — | — | (1,296,096) | (1,296,096) | |||||||||||||||||||||
Balance at September 30, | 51,750,000 | $ | 5,175 | 3,462,673 | $ | 6,189,739 | $ | 55,559,561 | $ | (4,166,390) | $ | 61,050,758 | ||||||||||||||||
GOLDEN HEAVEN GROUP HOLDING LTD. | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
For the Fiscal Year Ended | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net income | $ | 6,549,584 | $ | 14,328,374 | $ | 13,580,375 | ||||||
Adjustments to reconcile net income to net cash provided | ||||||||||||
Depreciation and amortization | 3,366,804 | 3,196,715 | 3,299,874 | |||||||||
Loss on disposal of property, plant and equipment | 156,072 | 521,189 | 473,596 | |||||||||
Changes in operating assets and liabilities | ||||||||||||
Other receivables | (6,044) | (7,063) | 19,377 | |||||||||
Other current assets | (27,973,193) | 1,005,523 | (14,519,791) | |||||||||
Accounts payable | 4,259,820 | — | (866,494) | |||||||||
Accrued expenses and other payables | (1,821,122) | 579,597 | (388,806) | |||||||||
Advances from customers | (3,874,566) | (806,737) | (6,560,028) | |||||||||
Net cash (used in) provided by operating activities | (19,342,645) | 18,817,598 | (4,961,897) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Proceeds from disposal of equipment | — | 85,125 | 45,664 | |||||||||
Additions to property, plant and equipment | (7,910,651) | (275,234) | (905,209) | |||||||||
Net cash used in investing activities | (7,910,651) | (190,109) | (859,545) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Advances from related party | 1,779,723 | 971,617 | 586,121 | |||||||||
Repayment of amounts due to related parties | (2,072,512) | (7,817,993) | (461,251) | |||||||||
Proceeds from the issuance of ordinary shares, net of | 6,189,914 | — | — | |||||||||
Repayment of loan | (140,849) | (145,980) | — | |||||||||
Proceeds from loan payable | 139,280 | 152,063 | 148,025 | |||||||||
Net cash provided by (used in) financing activities | 5,895,556 | (6,840,293) | 272,895 | |||||||||
Effect of change in exchange rate | (843,497) | (2,215,409) | 869,563 | |||||||||
NET (DECREASE) INCREASE IN CASH AND CASH | (22,201,237) | 9,571,787 | (4,678,984) | |||||||||
Cash and cash equivalents, beginning of year | 22,447,145 | 12,875,358 | 17,554,342 | |||||||||
Cash and cash equivalents, end of year | $ | 245,908 | $ | 22,447,145 | 12,875,358 | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||||||
Cash paid for interest expense | 6,008 | 6,162 | 4,583 | |||||||||
Cash paid for income tax | 6,302,806 | 4,973,635 | 5,788,891 | |||||||||
Operating lease | 6,151,204 | 6,648,370 | 6,150,602 | |||||||||
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SOURCE Golden Heaven Group Holdings Ltd.
FAQ
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