Summary by Futu AI
Green Giant Inc. (formerly known as China HGS Real Estate, Inc.), a company engaged in real estate development and green energy business, reported its financial performance for the quarter ended December 31, 2023. The company's revenue for the quarter was $183,469, a 12.8% increase from the same period in the previous year, primarily from the sale of completed condominium real estate projects. Cost of sales decreased by 16.6% to $108,682, resulting in a gross profit of $74,787 and a gross margin of 40.4%. Operating expenses, however, increased significantly by 391.8% to $2,986,460, mainly due to share-based compensation to consultants. This led to a net loss of approximately $2.9 million for the quarter. The company's cash and restricted cash balance stood at approximately $7.2 million, an increase from the previous quarter. Green Giant Inc. continues to focus on its existing construction projects and is exploring opportunities in the green energy sector in the U.S. The company's management concluded that internal controls over financial reporting were not effective due to identified material weaknesses.