China HGS Real Estate Inc (HGSH) has reported a 46.60 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.76 million, or $0.02 a share in the quarter, compared with $1.43 million, or $0.03 a share for the same period last year.
Revenue from real estate activities during the quarter surged 51.93 percent or $3.04 million to $8.90 million. Revenue from sale of real estate was $8.90 million for the quarter, up 51.93 percent or $3.04 million.
Cost of revenue surged 98.12 percent or $3.55 million during the quarter to $7.17 million. Gross margin for the quarter contracted 1880 basis points over the previous year period to 19.38 percent.
Operating income for the quarter was $1.11 million, compared with $1.67 million in the previous year period.
Operating cash flow remains negative
China HGS Real Estate Inc has spent $17.64 million cash to meet operating activities during the quarter as against cash outgo of $6.58 million in the last year period.
Cash flow from financing activities was $21.81 million for the quarter, up 238.04 percent or $15.36 million, when compared with the last year period.
Cash and cash equivalents stood at $10.25 million as on Dec. 31, 2016, up 766.50 percent or $9.07 million from $1.18 million on Dec. 31, 2015.
Net receivables were at $2.81 million as on Dec. 31, 2016, down 6.52 percent or $0.20 million from year-ago. Accounts payable declined 12.90 percent or $4.16 million to $28.10 million on Dec. 31, 2016.
Total assets grew 21.94 percent or $65.37 million to $363.28 million on Dec. 31, 2016. On the other hand, total liabilities were at $213.78 million as on Dec. 31, 2016, up 50.20 percent or $71.45 million from year-ago.
Return on assets moved down 27 basis points to 0.24 percent in the quarter. At the same time, return on equity moved down 41 basis points to 0.51 percent in the quarter.
Debt increases substantially
Total debt was at $122.93 million as on Dec. 31, 2016, up 275.98 percent or $90.23 million from year-ago. Shareholders equity stood at $149.50 million as on Dec. 31, 2016, down 3.91 percent or $6.08 million from year-ago. As a result, debt to equity ratio went up 61 basis points to 0.82 percent in the quarter.
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