SHENYANG, China, Nov. 21, 2006 (PRIMEZONE) -- Great China International Holdings, Inc. (OTCBB:GCIH) today announced financial results for the 2006 third quarter ended September 30, 2006.
For the quarter ended September 30, 2006, the company recorded revenues of $1.7 million and a net loss of $1.6 million, equal to $0.14 per common share, compared with revenues of $5.9 million and a net loss of $313,644, or $0.03 per common share, in the same period last year. For the nine months ended September 30, 2006, the company's revenues totaled $8.8 million, with a net loss of $4.1 million, or $0.37 per common share, compared with revenues of $15.8 million and net income of $354,386, or $0.03 per common share, for the comparable prior year period.
"As anticipated, the decrease in revenues as compared with last year was attributable to essentially completing the sale of the remaining properties in the company's Chenglong Garden," said Paul Deng, chief executive officer. "Our efforts remain focused on augmenting our resources for the robust schedule of activities planned for the remainder of the year."
During the quarter, Great China received an $88.0 million (702.0 million RMB) market appraisal by Hong Kong-based American Appraisal China Limited for its Galaxy Bay residential project at Cheeseboard Mountain in Shenyang. The company acquired the land for $56.7 million through a public auction on February 27, 2006. The realization value is the estimated aggregate resale market price as of the date of completion, assuming all planned units in the project are built and sold. Construction has just begun, with completion of properties in stages from 2007 to 2009. "We are excited about the prospects of this project and remain confident that our marketing strategy will help us achieve our goals," Deng said.
About Great China International Holdings
Founded in 1989, Great China International Holdings' wholly owned subsidiary, Shenyang Maryland International Industry Co., Ltd., is the largest non-state-owned real estate developers in Northeast China. The company's core business is premium residential and commercial development and management. It currently owns and manages the President Building, which was completed in April 2002, with 25 tenants comprised of Fortune 500 companies, including General Electric (China) Co., Ltd., Johnson & Johnson, Kodak and Philip Morris. The company's prior developments included the Maryland Building, Roma Resort Garden, Qiyun New Village, Peacock Garden, University Campus of Shenyang Teacher's University, and Chenglong Garden, mostly located in Shenyang.
Forward-Looking Statements
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including, but not limited to, a sales ramp-up and timing thereof for new developments, are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in the company's filings with the Securities and Exchange Commission.
Great China International Holdings, Inc.
Consolidated Condensed Balance Sheet
(Unaudited)
September 30,
ASSETS 2006
-------------
Current assets:
Cash and cash equivalents $ 2,783,436
Accounts receivable
Trade, net of allowance of $625,768 1,834,508
Advances to suppliers 75,884
Advances to employees 72,924
Properties held for resale 11,598,415
Prepaid expenses 12,356
Loan costs, net of amortization of $583,230 174,346
-------------
Total current assets 16,551,869
-------------
Property and equipment:
Land and buildings 49,357,669
Motor vehicles 719,460
Office furniture and equipment 332,314
-------------
50,409,443
Less accumulated depreciation (6,461,226)
-------------
43,948,217
Construction in progress 89,662,077
-------------
Total assets $ 150,162,163
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 9,855,618
Deposits held 911,145
Advances from buyers 3,597,006
Amounts due to related companies 2,020,721
Taxes payable 948,020
Short-term loans 54,943,182
Current portion of long-term debt 425,449
-------------
Total current liabilities 72,701,141
Long term debt, net of current portion shown above 77,853,883
-------------
Total liabilities 150,555,024
-------------
Stockholders' equity:
Common stock, $0.001 per value 50,000,000 shares
authorized, 11,782,036 issued and outstanding
at September 30, 2006 11,783
Additional paid in capital 4,539,607
Retained deficit (5,308,987)
Accumulated other comprehensive income 364,736
-------------
Total stockholders' equity before advances offset (392,861)
Total liabilities and stockholders' equity $ 150,162,163
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Great China International Holdings, Inc.
Consolidated Operating Results
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2006 2005 2006 2005
----------- ----------- ----------- -----------
(Restated) (Restated)
Revenues
Sales $ 503,188 $ 4,910,244 $ 5,028,766 $12,669,073
Rental and
management fee
income 1,184,786 943,693 3,742,139 3,091,260
----------- ----------- ----------- -----------
Total revenues 1,687,974 5,853,937 8,770,905 15,760,333
----------- ----------- ----------- -----------
Expenses
Cost of
properties
sold 1,192,478 4,059,832 5,241,279 10,241,358
Operating and
selling
expenses 419,762 50,237 479,980 180,289
Administrative
expenses 416,010 200,178 2,642,811 595,421
Depreciation and
amortization 574,465 818,302 1,701,318 1,491,356
----------- ----------- ----------- -----------
Total expenses 2,602,715 5,128,549 10,065,388 12,508,424
----------- ----------- ----------- -----------
Income (loss)
from
operations (914,741) 725,388 (1,294,483) 3,251,909
----------- ----------- ----------- -----------
Other income
(expense)
Other income 244,590 -- 339,739 --
Interest and
finance costs (953,493) (935,696) (3,166,936) (2,632,068)
----------- ----------- ----------- -----------
Total other
income
(expense) (708,903) (935,696) (2,827,197) (2,632,068)
----------- ----------- ----------- -----------
Income (loss)
before income
taxes (1,623,644) (210,308) (4,121,680) 619,841
Provision for
income taxes -- 103,336 -- 265,455
----------- ----------- ----------- -----------
Net income
(loss) (1,623,644) (313,644) (4,121,680) 354,386
Other comprehensive
income (loss):
Foreign currency
translation
adjustment 98,780 (7,570) 164,997 (7,570)
----------- ----------- ----------- -----------
Total
comprehensive
income (loss) $(1,524,864) $ (321,214) $(3,956,683) $ 346,816
=========== =========== =========== ===========
Basic and diluted
net income
(loss) per
common share $ (0.14) $ (0.03) $ (0.37) $ 0.03
=========== =========== =========== ===========
Weighted average
basic and di-
luted shares
outstanding 11,439,751 10,777,436 11,268,609 10,631,555
=========== =========== =========== ===========