Golden Heaven Group Holdings Ltd. Announces Financial Results for the First Half of Fiscal Year 2024

Financial Performance - Total revenue for the first half of 2024 was $13,824,313, a decrease of $6,236,899 or 31.09% compared to $20,061,212 in the same period of 2023 [2][3] - Revenue from sales of in-park recreation decreased by approximately $6.77 million, primarily due to the temporary closure of Mangshi Jinsheng Amusement Park since September 2023 and adverse weather conditions affecting tourist numbers [4][8] - Rental income increased by approximately $0.53 million, attributed to new rental payments from electricity-free park attractions that began generating revenue in May 2023 [5][6] Cost and Profitability - Cost of revenue increased by $1,042,211 or 18.61%, rising from $5,600,112 in the first half of 2023 to $6,642,323 in 2024, mainly due to higher rental fees and depreciation costs [7] - Gross profit decreased by approximately $7.28 million, leading to a gross margin decline from 72.08% in 2023 to 51.95% in 2024 [8][9] - Operating expenses decreased by $367,999 or 9.13%, from $4,029,055 in 2023 to $3,661,056 in 2024, mainly due to reduced general and administrative expenses [10] Net Income and Tax - Net income for the first half of 2024 was $2,544,020, a decrease of $4,871,198 or 65.69% from $7,415,218 in the same period of 2023 [13] - Income tax expense decreased by $1,520,857 or 51.22%, from $2,969,337 in 2023 to $1,448,480 in 2024 [12] Liquidity and Equity - As of March 31, 2024, cash and cash equivalents were approximately $0.13 million, with working capital at negative $4.62 million and total shareholders' equity at approximately $64.29 million [14][15] - Total stockholders' equity increased from $61.05 million as of September 30, 2023, to $64.29 million as of March 31, 2024 [25] Recent Developments - The company granted 9,800,000 Class A ordinary shares to certain officers, directors, and employees as part of its 2024 Omnibus Equity Plan [16] - The company is involved in ongoing legal matters, including three punitive class action lawsuits filed by shareholders alleging misleading statements regarding the company's operations and financial condition [17] - Two amusement parks, Mangshi Jinsheng and Qujing Jinsheng, have been temporarily closed for strategic and maintenance reasons, respectively [18]