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Golden Heaven Group Holdings Ltd. Announces Financial Results for Fiscal Year 2023

NANPING, China, Feb. 16, 2024 /PRNewswire/ — Golden Heaven Group Holdings Ltd. (the “Company” or “Golden Heaven“) (Nasdaq: GDHG), an amusement park operator in China, today announced its financial results for the fiscal year ended September 30, 2023. 

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 China. We believe that our successful listing on Nasdaq in April 2023 helped us to accelerate our market expansion in China. Looking forward, we will strive to satisfy customers’ entertainment needs and enhance our reputation. We are also dedicated to expanding our presence in the industry and unlocking value for all our stakeholders.”

Fiscal Year 2023 Financial Highlights 

  • Total revenue was $31.8 million in fiscal year 2023, compared to $41.8 million in fiscal year 2022.
  • Gross profit was $19.3 million in fiscal year 2023, compared to $30.2 million in fiscal year 2022. Gross margin was 60.76% in fiscal year 2023, compared to 72.19% in fiscal year 2022.
  • Income from operations was $10.7 million in fiscal year 2023, compared to $21.2 million in fiscal year 2022.
  • Net income was $6.5 million in fiscal year 2023, compared to $14.3 million in fiscal year 2022.
  • Earnings per share was $0.13 in fiscal year 2023, compared to $0.29 in fiscal year 2022.

Fiscal Year 2023 Financial Results

Revenue 

For the Year Ended
September 30, 2023

For the Year Ended
September 30, 2022

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 $31.8 million in fiscal year 2023, decreased by 23.93% from $41.8 million in fiscal year 2022. Such decrease was primarily attributable to the decrease in sales of in-park recreation and park service fees. 

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 $30.1 million in fiscal year 2023, decreased by 23.52% from $39.4 million in fiscal year 2022. This decrease was mainly because (i) Mangshi Jinsheng Amusement Park was initially closed for electrical maintenance from November 2022 to April 2023, and (ii) all of the other parks experienced decreases in park attendance due to facility safety maintenance from June 2023 to September 2023.

Rental income

Revenue from rental income was $1.5 million in fiscal year 2023, increased by 39.04% from $1.1 million in fiscal year 2022. Such change was primarily attributable to (i) the rental payment from the Children’s Castle project, which started to generate revenue in Yueyang Amusement World on October 1, 2022; and (2) the rental payment from the electricity-free park attractions, which started to generate revenue in Tongling West Lake Amusement World on May 1, 2023.

Park service fees

Revenue from park service fees was $0.2 million in fiscal year 2023, decreased from $1.3 million in fiscal year 2022. Park service fees decreased mainly because a fewer number of gourmet festivals and circus performances were held in the parks. Some of the special events held in the 2022 fiscal year were organized by the local government to help the business during the COVID-19 pandemic, and there was less of such government help in the fiscal year of 2023.

Cost of Revenue

Cost of revenue was $12.5 million in fiscal year 2023, increased by 7.32% from $11.6 million in fiscal year 2022. The increase in cost of revenue was mainly due to the increased facility safety maintenance fees.

Gross Profit

Gross profit was $19.3 million in fiscal year 2023, decreased by 35.97% from $30.2 million in fiscal year 2022.

Gross profit margin was 60.76% in fiscal year 2023, decreased from 72.19% in fiscal year 2022.

Operating Expenses

Total operating expenses were $8.6 million in fiscal year 2023, decreased by 4.28% from $9.0 million in fiscal year 2022. This decrease was mainly attributable to (i) an increase of $0.83 million in general and administrative expenses, or G&A expenses, and (ii) a decrease of $1.22 million in selling expenses.

The $0.83 million increase in G&A expenses was primarily attributable to an increase in consulting fees (including brokerage fees and lawyer fees, etc.), in connection with our initial public offering.

The $1.22 million decrease in selling expenses was primarily attributable to a decrease in advertising fees.

Income Tax Expense

Income tax expense was $4.2 million in fiscal year 2023, decreased by 33.17% from $6.3 million in fiscal year 2022. We are subject to the standard income tax rate of 25% under the PRC tax laws.

Net Income

Net income was $6.5 million in fiscal year 2023, decreased by 54.29% from $14.3 million in fiscal year 2022.

Cash and Cash Equivalents

As of September 30, 2023, our cash and cash equivalents amounted to $0.2 million, compared to cash and cash equivalents of $22.4 million as of September 30, 2022.

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 China and collectively offer approximately 139 rides and attractions. Due to the geographical locations of the parks and the ease of travel, the parks are easily accessible to an aggregate population of approximately 21 million people. Since September 30, 2023, Mangshi Jinsheng Amusement Park, which is one of the six parks, has been temporarily closed. The parks provide a wide range of exciting and entertaining experiences, including thrilling rides, family-friendly attractions, water attractions, gourmet festivals, circus performances, and high-tech facilities. For more information, please visit the Company’s website at https://ir.jsyoule.com/.

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 U.S. Securities and Exchange Commission.

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, $0.0001 par value; 500,000,000 shares authorized;
51,750,000 shares and 50,000,000 shares issued as of
September 30, 2023 and 2022, respectively

$

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
other
comprehensive

Shares

Amount

reserve

earnings

income

Total

Balance at September 30,
2021

100,000,000

$

10,000

$

3,009,476

$

35,134,800

$

1,644,411

$

39,798,687

Shares cancelled by
cash refund

(50,000,000)

(5,000)

(5,000)

Net income

14,328,374

14,328,374

Statutory reserve

363,257

(363,257)

Foreign currency
translation

(4,514,705)

(4,514,705)

Balance at September 30,
2022

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
paid-in

Retained

Accumulative
other
comprehensive

Shares

Amount

reserve

capital

earnings

income

Total

Balance at September 30,
2022

50,000,000

$

5,000

3,372,733

$

$

49,099,917

$

(2,870,294)

$

49,607,356

Issuance of ordinary
shares-cash

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
translation

(1,296,096)

(1,296,096)

Balance at September 30,
2023

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
by operating activities

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
issuance costs

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
EQUIVALENTS

(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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