Financial Performance - For the fiscal year ended September 30, 2023, the company's revenue was approximately $31.79 million, a decrease of 24% from $41.79 million in 2022[169]. - The net income for the fiscal year ended September 30, 2023, was approximately $6.55 million, down from $14.33 million in 2022, representing a decline of 54%[169]. - Total revenue for the year ended September 30, 2023, was $31,786,802, a decrease of $10,001,394 or 23.93% from $41,788,196 in 2022[262]. - Gross profit for the year ended September 30, 2023, was $19,313,752, representing a gross margin of 60.76%, compared to $30,165,848 and 72.19% in 2022[260]. - Operating expenses increased to $8,588,373, representing 27.02% of total revenue in 2023, compared to 21.47% in 2022[260]. - Net income decreased by US$7,778,790, or 54.29%, from US$14,328,374 for the year ended September 30, 2022, to US$6,549,584 for the year ended September 30, 2023[292]. Revenue Sources - The parks' revenue is primarily generated from ticket sales, special event rentals, and rental payments from commercial tenants[169]. - For the fiscal year ended September 30, 2023, in-park recreation sales amounted to US$30,115,995, accounting for approximately 94.74% of total revenue[188]. - Rental income from convenience stores for the fiscal year ended September 30, 2023, was US$1,514,697, representing about 4.77% of total revenue[189]. - Revenue from in-park recreation decreased by US$9,261,911, or 23.52%, from US$39,377,906 for the year ended September 30, 2022, to US$30,115,995 for the year ended September 30, 2023[268]. - Revenue from rental income increased by US$425,262, or 39.04%, from US$1,089,435 for the year ended September 30, 2022, to US$1,514,697 for the year ended September 30, 2023[271]. Operational Developments - The company plans to invest an estimated total of RMB590 million in the construction of three new amusement parks in southern China[166]. - The construction of Yangming Lake Glacier Tribe Amusement Park is expected to be completed by September 2024, with an estimated investment of RMB180 million[200]. - Phase one of Seven Rainbow Park has been completed, with trial operations starting in January 2024, and a total investment of RMB140 million anticipated[201]. - The company operates six amusement parks across various provinces in China, with a total capacity of approximately 3,600 guests at full operating capacity[171]. - The company is facing three putative class action lawsuits alleging violations of the Securities Exchange Act of 1934, which may impact its financial condition[304]. Compliance and Regulations - The company has obtained all requisite permits and licenses needed to engage in its current business operations in China, including Business License and Food Business License[224]. - The company has complied with the Environmental Protection Law and provided required environmental impact assessments to relevant authorities, with no notices of noncompliance received[228]. - The company reported compliance with the Enterprise Income Tax Law and Value-added Tax regulations in China, with applicable rates of 25% and 6% respectively[253][257]. - As of the date of the annual report, the company and its operating entities are in full compliance with the M&A Rules in China, with no notifications of noncompliance[235]. Management and Governance - The board of directors consists of five members, with one female and four male directors[347]. - The audit committee is composed of three independent directors, with Daofu Lin serving as the chairperson and qualifying as an audit committee financial expert[355]. - The compensation committee, also consisting of three independent directors, is responsible for reviewing and approving the total compensation package for senior executive officers[356]. - The company is deemed a "controlled company" as Ms. Qiong Jin beneficially owns a majority of the voting power of the issued and outstanding shares[358]. Market and Economic Conditions - China's annual economic growth rate was 5.2% in 2023, showing a decline from previous years, which may reduce consumer purchasing power and demand for amusement products[309]. - In 2023, the impact of COVID-19 on the operating entities' business was minimal, following significant disruptions in previous years, including park closures and decreased attendance[310]. Future Outlook - The company plans to introduce new amusement facilities, which may require significant capital investment and could lead to a short-term decrease in revenue[312]. - The company expects to invest an additional US$45.97 million in the three construction projects, relying on cash flow from operations and potential future financing[303].
Golden Heaven(GDHG) - 2023 Q4 - Annual Report