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

NANPING, China, Feb. 15, 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 

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:

For fiscal year 2022:

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

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