SHENYANG, China, Aug. 23, 2007 (PRIME NEWSWIRE) -- Great China International Holdings, Inc. (OTCBB:GCIH) today reported financial results for the three and six-month periods ended June 30, 2007.
For the 2007 second quarter, the company recorded total revenues of $2.9 million plus total other income of $3.8 million, which included income of $4.5 million for work completed under the land consolidation and development agreement related to the previously announced sale of the Galaxy Bay project. Net income totaled $996,122, equal to $0.08 per diluted share. For the comparable prior-year period, the company posted total revenues of $4.4 million, total other expense of $905,383 and a net loss of $942,486, equal to $0.08 per share.
For the six months ended June 30, 2007, Great China recorded total revenues of $4.5 million plus total other income of $5.0 million, which included income of $6.5 million related to the Galaxy Bay project. Net income totaled $1.8 million, equal to $0.16 per diluted share. For the same period last year, the company reported total revenues of $7.1 million, total other expense of $2.1 million and a net loss of $2.5 million, or $0.22 per share.
Great China will be paid approximately $13.3 million in staged amounts for serving as developer of the Galaxy Bay project, of which $7.0 million already has been paid and recorded as "other income" for December 2006 and the first half of 2007. The company said it expects to complete the development work in approximately one year.
"We had a strong second quarter, bolstered by steady rental income and property management fees," said Frank Jiang, chief executive officer. "At the mid-year mark, we have successfully identified a significant new residential opportunity and are fully underway with zoning and preparations for the Olympic Sports Center Project in the Hunnan New Zone. We believe this premium site has some of the best geographic advantages of Shenyang and a high potential to increase in value. We expect this development to generate greater profits over the next five years.
"During the quarter, we also strengthened our financial position by repurchasing and retiring an overdue debt obligation of $22.8 million related to the development of our Chenglong Garden property," Jiang said. "Looking ahead, our focus will be to establish a schedule for the first stages of construction for the Olympic Sports Center Project and to acquire more first-class properties that will position Great China at the forefront of premium real estate development in northeast China."
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
Certain 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, completion of the Galaxy Bay project agreement, 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
June 30, December 31,
ASSETS 2007 2006
------------------------
(Unaudited)
Current assets:
Cash and cash equivalents $ 2,866,409 $ 1,769,744
Accounts receivable
Trade, net of allowance of $770,798 and
$1,443,476, respectively 739,227 1,454,164
Advances to suppliers 4,868,122 1,089,048
Advances to employees 14,273 5,473
Deposits 3,274,629 1,636,942
Properties held for resale 9,545,386 10,620,550
Assets held for sale, net of impairment of
$199,542 at June 30, 2007 6,816,875 9,372,189
Prepaid expenses 14,658 86,617
----------- -----------
Total current assets 28,139,579 26,034,727
----------- -----------
Property and equipment:
Land and buildings 55,454,560 49,988,841
Motor vehicles 697,286 697,453
Office furniture and equipment 466,468 340,618
----------- -----------
56,618,314 51,008,912
Less accumulated depreciation (8,482,381) (7,114,334)
----------- -----------
48,135,933 43,894,578
Total assets $76,275,512 $69,929,305
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 9,475,556 $10,554,995
Deposits held 705,078 767,481
Advances from buyers 2,181,506 3,004,011
Amounts due to related companies 6,118 695,002
Taxes payable 3,354,441 1,083,765
Short-term loans 48,707,349 51,308,184
Current portion of long-term debt 664,574 428,076
----------- -----------
Total current liabilities 65,094,622 67,841,514
Long term debt, net of current portion
shown above 9,017,317 1,999,465
----------- -----------
Total liabilities 74,111,939 69,840,979
----------- -----------
Stockholders' equity:
Common stock, $0.001 per value 50,000,000
shares authorized, 11,782,036 issued and
outstanding at June 30, 2007 and December
31, 2006 11,783 11,783
Additional paid in capital 4,542,308 4,542,308
Retained deficit (3,088,582) (4,934,109)
Accumulated other comprehensive income 698,064 468,344
----------- -----------
Total stockholders' equity before advances
offset 2,163,573 88,326
Total liabilities and stockholders' equity $76,275,512 $69,929,305
=========== ===========
Great China International Holdings, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2007 2006 2007 2006
------------------------ ------------------------
Revenues
Sales $ 1,391,785 $ 3,168,334 $ 1,624,800 $ 4,525,578
Rental and
management
fee income 1,503,961 1,231,527 2,862,234 2,557,353
----------- ----------- ----------- -----------
Total revenues 2,895,746 4,399,861 4,487,034 7,082,931
----------- ----------- ----------- -----------
Expenses
Cost of
properties
sold 1,477,679 2,049,553 1,690,952 3,404,100
Building
management
expenses 1,312,126 269,323 1,540,908 644,701
Operating and
selling
expenses 55,479 20,368 73,721 60,218
Administrative
expenses 1,815,557 1,457,164 2,194,338 2,226,801
Depreciation and
amortization 534,922 640,556 1,115,243 1,126,853
----------- ----------- ----------- -----------
Total expenses 5,195,763 4,436,964 6,615,162 7,462,673
----------- ----------- ----------- -----------
Income (loss)
from
operations (2,300,017) (37,103) (2,128,127) (379,742)
----------- ----------- ----------- -----------
Other income
(expense)
Other income 4,534,832 (23,117) 6,484,101 95,149
Impairment loss -- -- (199,542) --
Interest and
finance costs (701,136) (882,266) (1,295,259) (2,213,443)
----------- ----------- ----------- -----------
Total other
income
(expense) 3,833,696 (905,383) 4,989,300 (2,118,294)
----------- ----------- ----------- -----------
Income (loss)
before
income taxes 1,533,679 (942,486) 2,861,172 (2,498,036)
Provision for
income
taxes 537,557 -- 1,015,645 --
----------- ----------- ----------- -----------
Net income (loss) 996,122 (942,486) 1,845,527 (2,498,036)
Other comprehensive
income (loss):
Foreign currency
translation
adjustment 196,309 8,425 229,720 66,217
----------- ----------- ----------- -----------
Total
comprehensive
income (loss) $ 1,192,431 $ (934,061) $ 2,075,247 $(2,431,819)
=========== =========== =========== ===========
Basic and diluted
net income (loss)
per common share $ 0.08 $ (0.08) $ 0.16 $ (0.22)
=========== =========== =========== ===========
Weighted average
basic and diluted
shares
outstanding 11,782,036 11,439,751 11,782,036 11,268,609
=========== =========== =========== ===========