Invesco S&p High Income Infrast (NYSE:GHII)

WEB NEWS

Wednesday, October 10, 2012

Going Private News

Shareholder Koza proposes to help Gold Horse International. 13D/A filed 10/9/2012

Mike Koza (12,7% shareholder) thinks Gold Horse may go dark because costs staying listed are bigger than the benefits (raising capital, image, etc...). He proposes to help them. Here is an excerpt from SC 13D/A he filed yesterday (Koza=Reporting Person):

The Reporting Person may take actions as deemed appropriate, possibly in conjunction with other shareholders, including one or more of the following:

1. Offering to pay all or part of the expenses (including back pay) of continued U.S. listing, including the re-hiring of Mr. Li (the fiscal year 2012 Chief Financial Officer) or an alternate Chief Financial Officer to be agreed upon;


2. Encouraging the Issuer to make a tender offer for all outstanding shares;


3. Assisting the Issuer in voluntarily deregistering its common stock, and arranging for the dissemination of periodic financial information to shareholders of the Issuer, in a simple format agreeable to the Issuer and shareholders. This outcome would be acceptable only if the SEC did not deny voluntary deregistration;


4. Entering into negotiations with China-based shareholders of the Issuer to sell to these shareholders the shares owned by the Reporting Person. According to a Form 10-K filed by the Issuer on October 6, 2008, 36 individuals residing in China purchased 55,481 shares (split-adjusted) from the Issuer for $2,219,252 in 2007. The purchase price was $40 per share (split-adjusted). Although the reported book value per share of the Issuer has roughly doubled from December 31, 2007 to March 31, 2012, according to SEC filings, the Reporting Person would be willing to sell his shares to China-based shareholders at a significant discount to the amounts paid per share by these China-based shareholders in 2007. The Reporting Person believes that many of the China-based shareholders of the Issuer are employees of the Jin Ma Companies, which are controlled by the Issuer through contractual agreements;


5. Assisting the Issuer in unwinding its variable-interest entity structure.


Tuesday, February 14, 2012

Comments & Business Outlook
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
 
(AMOUNTS EXPRESSED IN US DOLLAR)
 
(UNAUDITED)
 
                         
   
For the Three Months Ended
   
For the Six Months Ended
 
   
December 31,
   
December 31,
 
   
2011
   
2010
   
2011
   
2010
 
                         
NET REVENUES
                       
  Construction
  $ 14,231,619     $ 15,400,661     $ 25,595,039     $ 24,991,149  
  Hotel
    564,383       724,213       1,045,537       1,565,475  
  Real estate
    191,628       302,400       191,628       713,369  
                                 
  Total Revenues
    14,987,630       16,427,274       26,832,204       27,269,993  
                                 
COST OF REVENUES
                               
  Construction
    12,190,725       13,280,141       21,929,118       21,437,820  
  Hotel
    266,401       393,607       506,469       909,055  
  Real estate
    201,449       241,712       201,449       540,214  
                                 
  Total Cost of Revenues
    12,658,575       13,915,460       22,637,036       22,887,089  
                                 
GROSS PROFIT
    2,329,055       2,511,814       4,195,168       4,382,904  
                                 
OPERATING EXPENSES:
                               
  Other hotel operating expenses
    12,673       12,255       27,014       31,960  
  Bad debt recovery
    (156,929 )     (188,120 )     (172,055 )     (195,612 )
  Salaries and employee benefits
    153,656       207,251       340,006       418,610  
  Depreciation
    218,072       197,965       434,517       392,437  
  Selling, general and administrative
    114,534       165,044       230,801       467,734  
                                 
  Total Operating Expenses
    342,006       394,395       860,283       1,115,129  
                                 
INCOME FROM OPERATIONS
    1,987,049       2,117,419       3,334,885       3,267,775  
                                 
OTHER (EXPENSES) INCOME:
                               
  Other income
    -       58       -       6,842  
  Gain on change in fair value of derivative liabilities
    8,417       121,612       32,219       157,092  
  Interest income
    559,806       431,248       559,894       650,860  
  Interest expense
    (218,640 )     (125,960 )     (419,912 )     (252,006 )
                                 
  Total Other (Expenses) Income
    349,583       426,958       172,201       562,788  
                                 
INCOME BEFORE PROVISION FOR INCOME TAX
    2,336,632       2,544,377       3,507,086       3,830,563  
                                 
PROVISION FOR INCOME TAXES
    607,059       648,547       929,441       1,020,468  
                                 
NET INCOME
  $ 1,729,573     $ 1,895,830     $ 2,577,645     $ 2,810,095  
                                 
COMPREHENSIVE INCOME:
                               
  Net income
  $ 1,729,573     $ 1,895,830     $ 2,577,645     $ 2,810,095  
                                 
  OTHER COMPREHENSIVE INCOME:
                               
  Unrealized foreign currency translation gain
    305,057       529,724       850,736       1,154,673  
                                 
  COMPREHENSIVE INCOME
  $ 2,034,630     $ 2,425,554     $ 3,428,381     $ 3,964,768  
                                 
NET INCOME PER COMMON SHARE:
                               
  Basic
  $ 0.79     $ 0.97     $ 1.19     $ 1.45  
  Diluted
  $ 0.79     $ 0.96     $ 1.18     $ 1.42  
                                 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
                         
  Basic
    2,178,729       1,947,992       2,172,002       1,941,476  
  Diluted
    2,195,033       1,981,696       2,190,081       1,972,611  
  • The decrease in Jan Ma Construction’s revenue for the second quarter of 2012 as compared to the second quarter of 2011 was attributable to the timing of Jin Ma Construction’s business as well as a turnaround in the real estate market in Hohhot which occurred in the second quarter of 2011.
  • Net revenues for Jin Ma Hotel’s operations decreased 22.1% for the second quarter of 2012 from the second quarter of 2011 primarily due to keen competition in the hotel, banquet and catering business as a result of more hotels commencing operation in the city of Hohhot in the second quarter of 2012. We continue to focus our marketing efforts to attract more tour groups to stay in our hotel and more local customers to our banquet facilities.
  • Net revenues for Jin Ma Real Estate’s operations decreased by $110,772, or 36.6%, for the second quarter of 2012 from the second quarter of 2011. The decrease was attributable to a lack of inventory of apartment units available for sale and the overdue payment from the Chemistry School.

Assciated press release:

HOHHOT, China, Feb. 27, 2012 /PRNewswire-Asia/ -- Gold Horse International, Inc., (OTC Bulletin Board: GHII) ("Gold Horse" or the "Company"), a multifaceted business group that controls and through the Jin Ma Companies operates a construction company, real estate development business and a hotel/banquet facility in Inner Mongolia, China, today announced its financial results for the six months ended December 31, 2011.

The Second Quarter Fiscal Year 2012 Highlights

  • Net revenue decreased 1.6% period-over-period to $26.8 million 
  • Gross margin was 15.6% compared to 16.1% in the prior comparable period
  • Gross profit decreased 4.3% period-over-period to $4.2 million 
  • Income from operations was $3.33 million compared to income from operations of $3.27 million in the prior comparable period
  • Net income decreased 8.3% period-over-period to $2.6 million from $2.8 million 
  • Adjusted net income excluding non-cash gains was $2.5 million, or $1.16 per fully diluted common share as compared to adjusted net income of $2.7 million, or $1.34 per fully diluted common share, in the prior comparable period

"Strategically, we sold all remaining inventory of apartment units available for sale in the fourth quarter of fiscal 2011 and have no apartment units available for sale now. Consequently, we minimize the effects of the slower real estate markets on Gold Horse. Moreover, we will keep going forward on track to become one of the most prominent construction and real estate development companies in Inner Mongolia, China and we are confident that the construction and the real estate development in Hohhot, Inner Mongolia and its surrounding areas, a third-tier city, will remain strong in the future," said Mr. Liankuan Yang, chairman and CEO of Gold Horse.

Business Outlook

At December 31, 2011, the construction segment is in various stages of development of three new construction projects totaling approximately $45 million in estimated revenues over fiscal years 2012 to 2013. The real estate segment has acquired several land use rights and began developing one residential project. The project is a joint effort between the construction segment and the real estate segment with the construction business serving as the general contractor for the construction of the project.

Mr. Liankuan Yang, Chairman and CEO of Gold Horse, offered a brief description on each project:

In construction segment, three new projects began in October 2011:

  • The Fuhengyuan residential No. 11 – No. 19 project consists of nine residential buildings with a total construction area of 97,368 square and is expected to be completed in December 2012 and was 11.3% complete at December 31, 2011.
  • The Xinyuan residential project consists of twelve residential buildings with a total construction area of 91,669 square meters and is expected to be completed in August 2012 and was 17.8% complete at December 31, 2011.
  • The Haitianshengdi project consists of ten residential buildings with a total construction area of 51,600 square meters and is expected to be completed in June 2012 and was 16.0% complete at December 31, 2011.

In real estate segment:

  • In September 2011, construction of buildings No. 6 of the Procuratorate Housing Estates began which consists of a construction area of 38,000 square meters and is expected to be completed in August 2013, with estimated revenues of $27.8 million. Jin Ma Real Estate will sell units to individual homebuyers.

Sunday, December 11, 2011

Comments & Business Outlook
GOLD HORSE INTERNATIONAL, INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
 
(AMOUNTS EXPRESSED IN US DOLLAR)
 
(UNAUDITED)
 
   
For the Three Months Ended
 
   
September 30,
 
   
2011
   
2010
 
             
NET REVENUES
           
      Construction
  $ 11,363,420     $ 9,590,488  
      Hotel
    481,154       841,262  
      Real estate
    -       410,969  
                 
        Total Revenues
    11,844,574       10,842,719  
                 
COST OF REVENUES
               
      Construction
    9,738,393       8,157,679  
      Hotel
    240,068       515,448  
      Real estate
    -       298,502  
                 
        Total Cost of Revenues
    9,978,461       8,971,629  
                 
GROSS PROFIT
    1,866,113       1,871,090  
                 
OPERATING EXPENSES:
               
     Other hotel operating expenses
    14,341       19,705  
     Bad debt recovery
    (15,126 )     (7,492 )
     Salaries and employee benefits
    186,350       211,359  
     Depreciation
    216,445       194,472  
     Selling, general and administrative
    116,267       302,690  
                 
        Total Operating Expenses
    518,277       720,734  
                 
INCOME FROM OPERATIONS
    1,347,836       1,150,356  
                 
OTHER (EXPENSES) INCOME:
               
     Other income
    -       6,784  
     Gain on change in fair value of derivative liabilities
    23,802       35,480  
     Interest income
    88       219,612  
     Interest expense
    (201,272 )     (126,046 )
                 
        Total Other (Expenses) Income
    (177,382 )     135,830  
                 
INCOME BEFORE PROVISION FOR INCOME TAX
    1,170,454       1,286,186  
                 
PROVISION FOR INCOME TAXES
    322,382       371,921  
                 
NET INCOME
  $ 848,072     $ 914,265  
                 
COMPREHENSIVE INCOME:
               
      Net income
  $ 848,072     $ 914,265  
                 
      OTHER COMPREHENSIVE INCOME:
               
           Unrealized foreign currency translation gain
    545,679       624,949  
                 
       COMPREHENSIVE INCOME
  $ 1,393,751     $ 1,539,214  
                 
NET INCOME PER COMMON SHARE:
               
    Basic
  $ 0.39     $ 0.47  
    Diluted
  $ 0.39     $ 0.47  
                 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
               
    Basic
    2,165,275       1,934,959  
    Diluted
    2,185,128       1,963,526  

Tuesday, October 18, 2011

Comments & Business Outlook

Fiscal Year 2011 Highlights

  • Net revenue increased 50.3% year-over-year to $76.5 million
  • Gross margin was 17.9% compared to 20.0% in the prior year
  • Gross profit increased 34.9% year-over-year to $13.7 million
  • Operating income was $11.36 million compared to operating income of $7.98 million in the prior year
  • Net income increased 17.6% year-over-year to $9.7 million from $8.3 million
  • Adjusted net income excluding non-cash gains and expenses was $9.2 million, or $4.62 per fully diluted common share as compared to adjusted net income of $6.6 million, or $3.99 per fully diluted common share, a year ago

"We are quite pleased with Jin Ma Real Estate's new real estate development projects, and we are confident that the Jin Ma Companies remain on track to become one of the most prominent construction and real estate development companies in Inner Mongolia, China. We are confident that real estate development in Hohhot, Inner Mongolia and its surrounding areas, a third- tier city, will remain strong and will not feel the effects of the slower real estate markets occurring in tier-one cities such as Beijing and Shanghai," said Mr. Liankuan Yang, chairman and CEO of Gold Horse.

Business Outlook

The Jin Ma Companies are in various stages of development of three new real estate development projects totaling approximately $96 million in estimated revenues over fiscal years 2014 to 2016. These projects are a joint effort between the Jin Ma Construction and Jin Ma Real Estate with the construction business serving as the general contractor for the construction of these projects.


Saturday, October 15, 2011

CFO Trail
Effective September 30, 2011, the Board of Directors of Gold Horse International, Inc. (the “Company”), appointed Mr. Xiaodong Li to replace Mr. Adam Wasserman as the Company’s Chief Financial Offer.

Thursday, September 29, 2011

Comments & Business Outlook

GOLD HORSE INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(AMOUNTS EXPRESSED IN US DOLLAR)

 

    For the Years Ended June 30,
    2011   2010
NET REVENUES                
Construction   $ 40,990,034     $ 37,496,002  
Hotel     3,046,914       3,086,553  
Real estate     32,463,687       10,331,004  
                 
Total Revenues     76,500,635       50,913,559  
                 
COST OF REVENUES                
Construction     35,222,201       32,311,960  
Hotel     1,794,737       1,965,973  
Real estate     25,761,636       6,465,472  
                 
Total Cost of Revenues     62,778,574       40,743,405  
                 
GROSS PROFIT     13,722,061       10,170,154  
                 
OPERATING EXPENSES:                
Other hotel operating expenses     224,063       89,292  
Bad debt recovery     (224,351 )     (102,704 )
Salaries and employee benefits     875,084       908,590  
Depreciation     796,429       775,715  
Selling, general and administrative     692,750       516,230  
                 
Total Operating Expenses     2,363,975       2,187,123  
                 
INCOME FROM OPERATIONS     11,358,086       7,983,031  
                 
OTHER INCOME (EXPENSES):                
Other income     6,848        
Gain on extinguishment of derivative liabilities           2,111,506  
Gain on change in fair value of derivative liabilities     568,917       1,756,959  
(Loss) gain on sale of land use rights and property and equipment     (1,929 )     350,885  
Interest income     1,566,116       1,274,999  
Interest expense     (522,743 )     (2,864,685 )
                 
Total Other Income     1,617,209       2,629,664  
                 
INCOME BEFORE PROVISION FOR INCOME TAX     12,975,295       10,612,695  
                 
PROVISION FOR INCOME TAXES     3,248,935       2,339,637  
                 
NET INCOME   $ 9,726,360     $ 8,273,058  
                 
COMPREHENSIVE INCOME:                
Net income   $ 9,726,360     $ 8,273,058  
                 
OTHER COMPREHENSIVE INCOME:                
Unrealized foreign currency translation gain     2,234,499       187,809  
                 
COMPREHENSIVE INCOME   $ 11,960,859     $ 8,460,867  
                 
NET INCOME PER COMMON SHARE:                
Basic   $ 4.94     $ 5.14  
Diluted   $ 4.90     $ 5.01  
                 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                
Basic     1,968,507       1,608,685  
Diluted     1,984,075       1,651,520  

 


Saturday, July 2, 2011

Corporate Governance
The contracts between Messrs. Gregory Wolfson and Noel "Bud" Robyn (“Directors”) and Gold Horse International, Inc. (the "Company") expire effective July 1, 2011. Both the Company and the Directors agree that they should not stand for re-election as members of Board of Directors for fiscal 2012. Messrs. Wolfson and Robyn were both members of the Company’s Audit Committee, while Mr. Wolfson was a member of the Nomination and Governance Committee, and Mr. Robyn was a member of the Compensation Committee. As of the date of their disengagement, there are no disputes over any issue regarding business or services between the Directors and the Company, and the discontinuance of the appointment was prompted by the determination by the Company that the Company expects to reconstruct the management team with the purpose of reducing redundancy and increase work efficiency of the Board of Directors.

Friday, June 10, 2011

Comments & Business Outlook

HOHHOT, China, June 10, 2011 /PRNewswire-Asia/ -- Gold Horse International, Inc., (OTC Bulletin Board: GHII) ("Gold Horse" or the "Company"), a multifaceted business group that controls and through the Jin Ma Companies operates a construction company, real estate development business and a hotel/banquet facility in Inner Mongolia, China, today announced its financial results for the nine months ended March 31, 2011.

  • Net revenue increased 54.8% period-over-period to $36.2 million
  • Gross margin was 16.3% compared to 15.7% in the prior comparable period
  • Gross profit increased 60.8% period-over-period to $5.9 million

  • Operating income was $4.2 million compared to operating income of $2.2 million in the prior comparable period

  • Net income decreased 6.3% period-over-period to $3.7 million from $3.9 million

  • Adjusted net income excluding non-cash gains and expenses was $3.2 million, or $1.63 per fully diluted common share as compared to adjusted net income of $0.3 million, or $0.21 per fully diluted common share, in the prior comparable period

"We remain confident that real estate development in Hohhot, Inner Mongolia and its surrounding areas, a third- tier city, will remain strong and will not feel the effects of the slower real estate markets occurring in tier-one cities such as Beijing and Shanghai. We intend to meet our liquidity requirements, including capital expenditures related to the purchase of land for the development of future projects, through cash flow provided by operations, from the collection of outstanding accounts and notes receivable balances and the from the sale of units at the Shuian Renjia residential project. Through March 31, 2011, we have capitalized construction in progress consisting of the acquisition of land use rights and construction costs related to the Shuian Renjia project of approximately $19.8 million. In connection with the acquisition of land use rights and for construction costs, pursuant to  agreements with Jin Ma Construction's sub-contractors, we will only partially pay subcontractors until such time as we begin selling units of real estate held for sale and accordingly, accounts payable has increased substantially. Subcontractors are willing to extend us credit due to long-term relationship with the Jin Ma Companies.  During the fourth quarter of 2011, we expect to sell all of our units in Shuian Renjia and we expect to collect approximately $30,000,000 from these sales which will be used to pay subcontractors and other accounts payable balances and will be used for working capital purposes," said Mr. Liankuan Yang, chairman and CEO of Gold Horse


Monday, May 23, 2011

Comments & Business Outlook

GOLD HORSE INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

                           
    For the Three Months Ended
March 31,
  For the Nine Months Ended
March 31,
 
    2011   2010   2011   2010  
    (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
NET REVENUES                          
Construction   $ 7,994,860   $ 11,143,476   $ 32,986,009   $ 20,739,488  
Hotel     739,027     749,749     2,304,502     2,262,578  
Real estate     193,661     227,917     907,030     386,898  
                           
Total Revenues     8,927,548     12,121,142     36,197,541     23,388,964  
                           
COST OF REVENUES                          
Construction     6,851,787     9,559,477     28,289,607     17,889,157  
Hotel     414,640     478,135     1,323,695     1,486,994  
Real estate     130,334     168,805     670,548     335,855  
                           
Total Cost of Revenues     7,396,761     10,206,417     30,283,850     19,712,006  
                           
GROSS PROFIT     1,530,787     1,914,725     5,913,691     3,676,958  
                           
OPERATING EXPENSES:                          
Other hotel operating expenses     15,156     (26,052 )   47,116     77,307  
Bad debt recovery     (1,291 )   (109,535 )   (196,903 )   (215,090 )
Salaries and employee benefits     293,197     290,845     711,807     683,280  
Depreciation     200,224     198,081     592,661     583,202  
Selling, general and administrative     97,549     113,126     565,283     365,689  
                           
Total Operating Expenses     604,835     466,465     1,719,964     1,494,388  
                           
INCOME FROM OPERATIONS     925,952     1,448,260     4,193,727     2,182,570  
                           
OTHER INCOME (EXPENSES):                          
Other income (expense)     (38 )       6,804      
Gain on extinguishment of derivative liabilities         270,101         1,893,310  
Gain on change in fair value of derivative liabilities     304,837     (298,283 )   461,929     1,704,654  
Gain on sale of land use rights and property         55         449,528  
Interest income     54,462     731,521     705,322     1,274,716  
Interest expense     (125,722 )   (394,667 )   (377,728 )   (2,711,743 )
                           
Total Other Income     233,539     308,727     796,327     2,610,465  
                           
INCOME BEFORE PROVISION FOR INCOME TAX     1,159,491     1,756,987     4,990,054     4,793,035  
                           
PROVISION FOR INCOME TAXES     288,058     550,772     1,308,526     865,550  
                           
NET INCOME   $ 871,433   $ 1,206,215   $ 3,681,528   $ 3,927,485  
                           
COMPREHENSIVE INCOME:                          
Net income   $ 871,433   $ 1,206,215   $ 3,681,528   $ 3,927,485  
                           
OTHER COMPREHENSIVE INCOME:                          
Unrealized foreign currency translation gain     252,349     4,753     1,407,022     38,613  
                           
COMPREHENSIVE INCOME   $ 1,123,782   $ 1,210,968   $ 5,088,550   $ 3,966,098  
                           
NET INCOME PER COMMON SHARE:                          
Basic   $ 0.44   $ 0.71   $ 1.88   $ 2.57  
Diluted   $ 0.44   $ 0.70   $ 1.86   $ 2.54  
                           
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                          
Basic     1,989,459     1,702,336     1,957,237     1,531,055  
Diluted     1,989,459     1,711,679     1,977,994     1,548,957  

GeoTeam® Note: 2011 vs. 2010 Third Quarter Adjusted EPS was $0.28 vs. $0.95


Tuesday, February 22, 2011

Comments & Business Outlook

GOLD HORSE INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


                           

 

 

For the Three Months Ended
December 31,

 

For the Six Months Ended
December 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

(Unaudited)

 

(Unaudited)
(As Restated)

 

(Unaudited)

 

(Unaudited)
(As Restated)

 

NET REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

$

15,400,661

 

$

4,405,892

 

$

24,991,149

 

$

9,596,012

 

Hotel

 

 

724,213

 

 

734,809

 

 

1,565,475

 

 

1,512,829

 

Real estate

 

 

302,400

 

 

158,981

 

 

713,369

 

 

158,981

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenues

 

 

16,427,274

 

 

5,299,682

 

 

27,269,993

 

 

11,267,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COST OF REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

13,280,141

 

 

3,878,214

 

 

21,437,820

 

 

8,329,680

 

Hotel

 

 

393,607

 

 

494,312

 

 

909,055

 

 

1,008,859

 

Real estate

 

 

241,712

 

 

167,050

 

 

540,214

 

 

167,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Cost of Revenues

 

 

13,915,460

 

 

4,539,576

 

 

22,887,089

 

 

9,505,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

2,511,814

 

 

760,106

 

 

4,382,904

 

 

1,762,233

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

Other hotel operating expenses

 

 

12,255

 

 

76,586

 

 

31,960

 

 

103,359

 

Bad debt recovery

(188,120

)

(97,564

)

(195,612

)

 

(105,555

)

Salaries and employee benefits

 

 

207,251

 

 

198,349

 

 

418,610

 

 

392,435

 

Depreciation

 

 

197,965

 

 

191,532

 

 

392,437

 

 

385,121

 

Selling, general and administrative

 

 

165,044

 

 

102,611

 

 

467,734

 

 

252,563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 

394,395

 

 

471,514

 

 

1,115,129

 

 

1,027,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM OPERATIONS

 

 

2,117,419

 

 

288,592

 

 

3,267,775

 

 

734,310

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSES):

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

58

 

 

(27

)

 

6,842

 

 

46

 

Gain on extinguishment of derivative liabilities

561,602

 

 

1,623,209

 

Gain on change in fair value of derivative liabilities

121,612

1,314,381

 

 

157,092

 

 

2,002,937

 

Gain on sale of land use rights and property

 

 

 

 

167

 

 

 

 

449,473

 

Interest income

 

 

431,248

 

 

543,092

 

 

650,860

 

 

543,149

 

Interest expense

 

 

(125,960

)

 

(745,695

)

 

(252,006

)

 

(2,317,076

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Income

 

 

426,958

 

 

1,673,520

 

 

562,788

 

 

2,301,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE PROVISION FOR INCOME TAX

 

 

2,544,377

 

 

1,962,112

 

 

3,830,563

 

 

3,036,048

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAXES

 

 

648,547

 

 

79,632

 

 

1,020,468

 

 

314,778

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

1,895,830

 

$

1,882,480

 

$

2,810,095

 

$

2,721,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,895,830

 

$

1,882,480

 

$

2,810,095

 

$

2,721,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized foreign currency translation gain

 

 

529,724

 

 

1,716

 

 

1,154,673

 

 

33,861

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

$

2,425,554

 

$

1,884,196

 

$

3,964,768

 

$

2,755,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.97

 

$

1.22

 

$

1.45

 

$

1.88

 

Diluted

 

$

0.96

 

$

1.22

 

$

1.42

 

$

1.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

1,947,992

 

 

1,544,003

 

 

1,941,476

 

 

1,447,276

 

Diluted

 

 

1,981,696

 

 

1,544,003

 

 

1,972,611

 

 

1,469,458

 

GeoTeam® Note: Adjusting EPS for non-operational gains yields EPS of $0.77 the fiscal 2011 second quarter compared to ($0.05) in the comparable prior year period. 


Tuesday, November 16, 2010

Comments & Business Outlook
 

 

For the Three Months Ended

 

 

 

September 30,

 

 

 

2010

 

2009

 

 

 

(Unaudited)

 

(Unaudited)

 

NET REVENUES

 

 

 

 

 

 

 

Construction

 

$

9,590,488

 

$

5,190,120

 

Hotel

 

 

841,262

 

 

778,020

 

Real estate

 

 

410,969

 

 

 

 

 

 

 

 

 

 

 

Total Revenues

 

 

10,842,719

 

 

5,968,140

 

 

 

 

 

 

 

 

 

COST OF REVENUES

 

 

 

 

 

 

 

Construction

 

 

8,157,679

 

 

4,451,466

 

Hotel

 

 

515,448

 

 

514,547

 

Real estate

 

 

298,502

 

 

 

 

 

 

 

 

 

 

 

Total Cost of Revenues

 

 

8,971,629

 

 

4,966,013

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

1,871,090

 

 

1,002,127

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

Other hotel operating expenses

 

 

19,705

 

 

26,773

 

Bad debt recovery

 

 

(7,492

)

 

(7,991

)

Salaries and employee benefits

 

 

211,359

 

 

194,086

 

Depreciation and amortization

 

 

194,472

 

 

193,589

 

Selling, general and administrative

 

 

302,690

 

 

149,952

 

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 

720,734

 

 

556,409

 

 

 

 

 

 

 

 

 

INCOME FROM OPERATIONS

 

 

1,150,356

 

 

445,718

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSES):

 

 

 

 

 

 

 

Other income

 

 

6,784

 

 

73

 

Gain on extinguishment of derivative liabilities

 

 

 

 

1,061,607

 

Gain on change in fair value of derivative liabilities

 

 

35,480

 

 

688,556

 

Gain on sale of land use rights and property

 

 

 

 

449,306

 

Interest income

 

 

219,612

 

 

57

 

Interest expense

 

 

(126,046

)

 

(1,571,381

)

 

 

 

 

 

 

 

 

Total Other Income

 

 

135,830

 

 

628,218

 

 

 

 

 

 

 

 

 

INCOME BEFORE PROVISION FOR INCOME TAX

 

 

1,286,186

 

 

1,073,936

 

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAXES

 

 

371,921

 

 

235,146

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

914,265

 

$

838,790

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME:

 

 

 

 

 

 

 

Net income

 

$

914,265

 

$

838,790

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME:

 

 

 

 

 

 

 

Unrealized foreign currency translation gain

 

 

624,949

 

 

32,145

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

$

1,539,214

 

$

870,935

 

 

 

 

 

 

 

 

 

NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

Basic

 

$

0.47

 

$

0.62

 

Diluted

 

$

0.47

 

$

0.43

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

Basic

 

 

1,934,959

 

 

1,350,549

 

 

Diluted

 

 

1,963,526

 

 

1,939,810

 

Non-GAAP EPS was $0.47 vs. a loss of two cents.


Friday, October 22, 2010

Comments & Business Outlook

Gold Horse International, Inc., today announced one new real estate development project and one new construction project, scheduled to commence this fall and reach completion by year-end 2011.

Mr. Yang Liankuan, Gold Horse CEO, explained: "The Tianti Housing Project, a construction project with our construction segment acting as general contractor, will consist of seven residential buildings with a total construction area of 90,606.65 square meters. Officially underway last month, the anticipated completion date is December 2011, with total estimated revenue of $26.4 million and estimated gross profit of $3.4 million.

"Our next project, Shuian Renjia, will be developed by our real estate business in cooperation with our construction company who will act as general contractor, an example of a project under our new integrated business model.

"Shuian Renjia is located at the south part of East Xinhua Street in Hohhot, and will consist of two buildings each with 17 floors and a total of 364 apartments. The total development area will amount to 56,841.2 square meters.

"The Shuian Renjia project is expected to be completed by May 2011 and requires a total investment of 140 million RMB or about $21 million. The successful completion of this project is expected to yield revenues of 220 million RMB or $32.9 million.

"We are proud of the performance of Gold Horse in the past fiscal year, and we believe the Company is on track for an equally good or superior 2011. Western China remains the best location for growth and development in all of China, and Gold Horse is a leader amongst developers in this dynamic region," concluded Mr. Yang.


Friday, October 1, 2010

Comments & Business Outlook

For fiscal 2010

  • Net revenues decreased 37.1% from fiscal 2009.

The decrease in net revenues was mainly due to decreased activity in Jin Ma Construction’s operations caused by a softening of the real estate market in Hohhot

  • Net income increased 34.2% for fiscal 2010 from fiscal 2009. This increase was primarily attributable to an increase in gains recognized related to derivative liabilities, an increase in interest income, and a decrease in income tax expense offset by an increase in interest expenses and decrease in income from operations as described above.
  • Basic net income per common share of $5.14 and $4.69, and diluted net income per common share of $5.01 and $3.17, for fiscal 2010 and 2009, respectively

GeoTeam® Note: After taking into account several non-operating items and applying a 25.0% tax rate, we calculate that  2010 vs. 2009 EPS would have been $4.04 vs. $3.71

"As a result of the change in the focus of Jin Ma Construction from acting as a general contractor for third party projects to building projects for Jin Ma Real Estate, we expect that both the Jin Ma Companies’ revenues and gross profit will be impacted in fiscal 2011.

Jin Ma Construction will not report revenues from work completed for Jin Ma Real Estate, but Jin Ma Real Estate’s gross profit in sales of its properties should increase significantly.

Jin Ma Construction expects that the Jianhe Garden residential project will be completed during fiscal 2011 and Jin Ma Real Estate will continue to record revenues from both the Vocational School and the Chemistry School during fiscal 2011. While Jin Ma Real Estate has additional projects in early development, the timing of any revenues from those projects is presently undeterminable."


Liquidity Requirements

During fiscal 2010, we satisfied all remaining amended and restated 14% secured convertible debentures by issuing 325,467 shares of our common stock for the principal balance of $1,199,450 and repaying the remaining principal balance of $983,550 using cash. The elimination of the debt will reduce our interest expense in future periods.

The Jin Ma Companies intend to meet their liquidity requirements, including capital expenditures related to the purchase of land for the development of future projects, through cash flow provided by operations, and from the collection of outstanding accounts and notes receivable balances. Upon acquiring land for future developments, the Jin Ma Companies intend to raise funds to develop its projects by the presale of units and by obtaining financing mainly from local banking institutions with which it has done business in the past. We believe that the relationships with these banks are in good standing and that the Jin Ma Companies’ real estate will secure the loans needed.


Wednesday, September 22, 2010

Investor Alert

On September 8, 2010 the Audit Committee of the Board of Directors of Gold Horse International, Inc. determined that our unaudited interim financial statements for the periods ended September 30, 2009, December 31, 2009 and March 31, 2010 included in our Quarterly Reports on Form 10-Q for the respective periods as filed with the Securities and Exchange Commission should not be relied upon as a result of errors in the consolidated financial statements.

All of the respective restatement adjustments are non-cash in nature and not related to the operations of the Jin Ma Companies. The correction of these accounting errors will result in an increase in our total liabilities as of September 30, 2009, December 31, 2009 and March 31, 2010. In addition, the correction of these accounting errors will result in a gain on derivative liabilities in each of the three months ended September 30, 2009 and December 31, 2009 and a loss in the three months ended March 31, 2010, all of which will impact our net income (loss) in each of those periods.


Tuesday, September 14, 2010

Investor Presentations
On September 12, 2010 to September 15, 2010, Mr. Adam Wasserman, Gold Horse International, Inc.'s Chief Financial Officer and Noel "Bud" Robyn, director, will present at the Rodman & Renshaw Annual Global Investment Conference in New York, NY.

Saturday, July 24, 2010

Up-Listing Watch
CEO and Chairman Liankuan Yang stated, "Our most significant annual directors' meeting since we became a U.S. publicly traded company, took place last week with all of our board members present, including our newest member, Mr. Bud Robyn, who traveled all the way from the United States to join us. The board unanimously approved an action to take the appropriate step to get Gold Horse International listed on a senior U.S. stock exchange, such as the American Stock Exchange or NASDAQ, before the end of 2010.

Wednesday, January 20, 2010

Special Situations

Update:

This morning, we have put Gold Horse International back on our watch list. The company provided some revenue and gross profit figures based on new construction projects valued at RMB 301.8 million ($44.2 million) with an expected gross profit of RMB 60.3 million ($8.8 million).

Concerns Still Remain

  • The nature of Gold Horse's business can result in lumpy quarters.
  • Fiscal first quarter 2010 financials were not impressive.
  • $8.8 million is still below 2009 gross profit levels of $12.4 million.
  • It appears that these projects will not impact fiscal 2010 financials.
  • Fully diluted shares outstanding are be above our 50 million threshold.
  • Liquidity issues may exist:

"Other than our existing cash we presently have no other alternative source of working capital. We have no operations other than the Contractual Arrangements with the Jin Ma Companies and, accordingly, we are dependent upon the quarterly service fees due us to or for the receipt of working capital from the Jin Ma Companies to provide cash to pay our operating expenses. To date, no quarterly service fees have been tendered to us and those funds are being retained by the Jin Ma Companies to fund their operations. At September 30, 2009 we were owed approximately $15.1 million in service fees, which such amount remains outstanding as of the date of this report.

In addition, we transferred $1,800,000 of the net proceeds from the November 2007 sale of the 10% secured convertible debentures to the Jin Ma Companies in the form of an unsecured, interest free advance for use by the Jin Ma Companies in their operations and to fund their registered capital requirements under PRC wholly-owned foreign enterprise rules. Jin Ma Companies repaid us approximately $921,000 of the amounts advanced to that company from July 2009 to September 2009. The rest of that amount remains outstanding and we do not have an understanding with the Jin Ma Companies regarding the repayment of the remainder."

We will code GHII as low tier GeoSpecial at $0.10 as we dissect this story a little more.  Investors may conclude that the risk reward trade off is worth the risk. (We had briefly placed GHII on the GeoSpecial list in October of 2009).


Tuesday, July 7, 2009

Liquidity Requirements
Gold Horse Intl  restructures debt and related pay out schedule in response to receiving default notice.  New terms will potentially lead to dilution.  Refer to the SEC 8K fling, (July 6,2009) for more details.

Sunday, May 24, 2009

Comments & Business Outlook

Guidance Report:

For fiscal year 2009, Gold Horse affirms its net revenue guidance, based on the number of construction projects underway for the fourth quarter of 2009.

'Although the current business environment remains challenging and unpredictable, we believe the stimulus package introduced by the Chinese government will play an important role in creating favorable long term benefits for our construction business,' commented Mr. Yang. 'We are actively bidding on several projects that meet our profitability requirements in the Inner Mongolia region, and look forward to securing some of them in the months ahead.'

Full Year Fiscal 2009 Guidance Ending June

  2009 Guidance 2008 Reported Period Change
GAAP Revenue $90.0 million $ 61.7 million  45.87%

The company has not provided EPS guidance.

Source: See Release, May 20, 2009


Wednesday, February 18, 2009

Comments & Business Outlook

Guidance Report:

Full Year Fiscal 2009 Guidance Ending June

  2009 Guidance 2008 Reported Period Change
GAAP Revenue $90.0 million $ 61.7 million  45.87%

The company has not provided EPS guidance.

For fiscal year 2009, Gold Horse expects to generate combined revenue of approximately $90.0 million from its construction, hotel management and real estate development operations. The construction division is expected to generate the majority of revenue in fiscal 2009 due to the number of construction projects in progress and management's strategy to selectively bid on profitable projects. The hotel management segment is expected to remain consistent with fiscal 2008. For the real estate segment, continued interest rate cuts and the Chinese central government's commitment to offer more affordable property in its effort to weather the current global financial crisis should stimulate the real estate sector over time. Currently the Company expects to receive annual payments from projects built by Gold Horse and sold to educational institutions.

 "We see many potential business opportunities for our construction business, especially given the Chinese government's recent allocation of RMB 4 trillion to encourage affordable housing, rural development and infrastructure projects in response to the current global financial crisis. In addition, the Chinese government continues to foster the real estate market by lowering interest rates," commented Mr. Yang. "While the near term impact of these measures is not clear, we believe they provide favorable long term benefits for our construction and real estate development businesses," added Mr. Yang.

Source: PR Newswire (February 18, 2009)