HAPPINESS DEVELOPMENT GROUP LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
AS OF SEPTEMBER 30, 2021, AND MARCH 31, 2021
AND
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
HAPPINESS DEVELOPMENT GROUP LIMITED
TABLE OF CONTENTS
Consolidated Financial Statements | ||||
Consolidated Balance Sheets as of September 30, 2021 and March 31, 2021 (UNAUDITED) | F-2 | |||
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the six months ended September 30, 2021 and 2020 (UNAUDITED) | F-3 | |||
Consolidated Statements of Changes in Shareholders' Equity for the six months ended September 30, 2021 and 2020 (UNAUDITED) | F-4 | |||
Consolidated Statements of Cash Flows for the six months ended September 30, 2021 and 2020 (UNAUDITED) | F-5 |
F-1
HAPPINESS DEVELOPMENT GROUP LIMITED
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2021, AND MARCH 31, 2021
(UNAUDITED)
(IN U.S. DOLLARS)
As of September 30, |
As of March 31, | |||||||
2021 | 2021 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 45,710,044 | $ | 36,558,752 | ||||
Accounts receivable | 19,195,282 | 34,563,743 | ||||||
Inventories | 2,428,641 | 1,785,379 | ||||||
Due from related parties | 124,156 | - | ||||||
Prepaid expenses and other current assets | 19,368,295 | 22,189,744 | ||||||
Total current assets | 86,826,418 | 95,097,618 | ||||||
Property, plant and equipment, net | 10,381,490 | 10,514,031 | ||||||
Intangible assets, net | 2,069,316 | 1,832,099 | ||||||
Goodwill | 552,567 | 162,832 | ||||||
Other assets | 4,315,953 | 5,138,105 | ||||||
TOTAL ASSETS | $ | 104,145,744 | $ | 112,744,685 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 8,769,624 | $ | 8,841,163 | ||||
Other payables and accrued liabilities | 2,083,303 | 3,694,943 | ||||||
Income tax payable | 509 | 334,523 | ||||||
Short-term bank borrowings | 2,004,502 | 2,237,000 | ||||||
TOTAL LIABILITIES | 12,857,938 | 15,107,629 | ||||||
COMMITMENTS AND CONTINGENCIES | - | |||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares, $0.0005 par value, 90,000,000 shares authorized, 31,953,025 and 30,481,580 shares issued and outstanding, respectively | 15,977 | 15,241 | ||||||
Preferred shares, $0.0005 par value, 10,000,000 shares authorized, 0 shares issued and outstanding | - | - | ||||||
Additional paid-in capital | 29,054,060 | 26,545,384 | ||||||
Statutory surplus reserve | 7,622,765 | 7,622,765 | ||||||
Retained earnings | 51,421,031 | 61,475,891 | ||||||
Accumulated other comprehensive income (loss) | 3,217,398 | (913,621 | ) | |||||
Total Happiness Development Group Limited Shareholders' Equity | 91,331,231 | 94,745,660 | ||||||
Non-controlling interests | (43,425 | ) | 2,891,396 | |||||
TOTAL SHAREHOLDERS' EQUITY | 91,287,806 | 97,637,056 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 104,145,744 | $ | 112,744,685 |
F-2
HAPPINESS DEVELOPMENT GROUP LIMITED
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
(UNAUDITED)
(IN U.S. DOLLARS)
For the six months ended September 30, | ||||||||
2021 | 2020 | |||||||
Revenues | $ | 46,884,584 | $ | 21,877,234 | ||||
Cost of revenues | (41,210,047 | ) | (12,299,331 | ) | ||||
Gross profit | 5,674,537 | 9,577,903 | ||||||
Operating expenses: | ||||||||
Selling and marketing | 11,636,367 | 3,699,676 | ||||||
General and administrative | 3,780,718 | 1,441,736 | ||||||
Research and development | 789,482 | 746,898 | ||||||
Total operating expenses | 16,206,567 | 5,888,310 | ||||||
Operating (loss) income | (10,532,030 | ) | 3,689,593 | |||||
Other income (expenses): | ||||||||
Interest income | 62,737 | 67,511 | ||||||
Interest expense | (38,511 | ) | (58,154 | ) | ||||
Other income, net | 114,059 | 210,023 | ||||||
Total other income, net | 138,285 | 219,380 | ||||||
(Loss) /income before income taxes | (10,393,745 | ) | 3,908,973 | |||||
Income tax provision | (149,429 | ) | (722,858 | ) | ||||
Net (loss) /income | $ | (10,543,174 | ) | $ | 3,186,115 | |||
Net income /(loss) attributable to non-controlling interests | 488,314 | (1,812 | ) | |||||
Net (loss) /income attributable to Happiness Development Group Limited | (10,054,860 | ) | 3,184,303 | |||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | 1,607,416 | 3,015,157 | ||||||
Comprehensive (loss) /income | $ | (8,935,758 | ) | $ | 6,201,272 | |||
Less: comprehensive income /(loss) attributable to non-controlling interests: | 2,523,603 | (6,978 | ) | |||||
Comprehensive (loss) /income attributable to Happiness Development Group Limited | (6,412,155 | ) | 6,194,294 | |||||
Basic and diluted earnings (loss) per ordinary share | ||||||||
Basic and diluted | $ | (0.37 | ) | $ | 0.13 | |||
Weighted average number of ordinary shares outstanding | ||||||||
Basic and diluted | 26,933,050 | 25,039,560 |
F-3
HAPPINESS DEVELOPMENT GROUP LIMITED
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
(UNAUDITED)
(IN U.S. DOLLARS)
Ordinary Shares |
Ordinary shares amount |
Additional paid-in capital |
Statutory surplus reserve |
Retained earnings |
Accumulated other comprehensive income (loss) |
Total
Development | Non-controlling interests |
Total equity | ||||||||||||||||||||||||||||
Balance at March 31, 2021 | 30,481,580 | $ | 15,241 | $ | 26,545,384 | $ | 7,622,765 | $ | 61,475,891 | $ | (913,621 | ) | $ | 94,745,660 | $ | 2,891,396 | $ | 97,637,056 | ||||||||||||||||||
Ordinary shares issued for cash | 1,240,000 | 620 | 2,156,980 | - | - | - | 2,157,600 | - | 2,157,600 | |||||||||||||||||||||||||||
Ordinary shares issued for services | 231,445 | 116 | 351,696 | - | - | - | 351,812 | - | 351,812 | |||||||||||||||||||||||||||
Contribution from non-controlling shareholders | - | - | - | - | - | - | - | 77,096 | 77,096 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | (10,054,860 | ) | - | (10,054,860 | ) | (488,314 | ) | (10,543,174 | ) | |||||||||||||||||||||||
Foreign currency translation adjustments | - | - | - | - | - | 4,131,019 | 4,131,019 | (2,523,603 | ) | 1,607,416 | ||||||||||||||||||||||||||
Balance at September 30, 2021 | 31,953,025 | $ | 15,977 | $ | 29,054,060 | $ | 7,622,765 | $ | 51,421,031 | $ | 3,217,398 | $ | 91,331,231 | $ | (43,425 | ) | $ | 91,287,806 |
Ordinary Shares |
Ordinary Shares Amount |
Additional paid-in capital |
Statutory surplus reserve |
Retained earnings |
Accumulated other comprehensive loss |
Total Happiness Development Group Limited Shareholders' Equity |
Non-controlling interests |
Total equity | ||||||||||||||||||||||||||||
Balance at March 31, 2020 | 25,000,000 | $ | 12,500 | $ | 15,044,002 | $ | 2,064,096 | $ | 66,623,204 | $ | (4,153,813 | ) | $ | 79,589,989 | $ | - | $ | 79,589,989 | ||||||||||||||||||
Ordinary shares issued for cash | 900,000 | 450 | 2,227,427 | - | - | - | 2,227,877 | - | 2,227,877 | |||||||||||||||||||||||||||
Contribution by noncontrolling interest shareholders | - | - | - | - | - | - | - | 36,174 | 36,174 | |||||||||||||||||||||||||||
Net income | - | - | - | - | 3,184,303 | - | 3,184,303 | 1,812 | 3,186,115 | |||||||||||||||||||||||||||
Dividend | - | - | - | - | (375,000 | ) | - | (375,000 | ) | - | (375,000 | ) | ||||||||||||||||||||||||
Foreign currency translation adjustments | - | - | - | - | - | 3,009,991 | 3,009,991 | 5,166 | 3,015,157 | |||||||||||||||||||||||||||
Balance at September 30, 2020 | 25,900,000 | $ | 12,950 | $ | 17,271,429 | $ | 2,064,096 | $ | 69,432,507 | $ | (1,143,822 | ) | $ | 87,637,160 | $ | 43,152 | $ | 87,680,312 |
F-4
HAPPINESS DEVELOPMENT GROUP LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
(UNAUDITED)
(IN U.S. DOLLARS)
For the six months ended September 30, | ||||||||
2021 | 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | (10,543,174 | ) | $ | 3,186,115 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 517,430 | 393,709 | ||||||
Share-based compensation | 351,812 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 15,909,423 | 9,173,869 | ||||||
Inventories | (239,266 | ) | (17,267 | ) | ||||
Due from related parties | (124,808 | ) | - | |||||
Prepaid expenses | 12,489,464 | (3,078,398 | ) | |||||
Other assets | 881,539 | (1,587,241 | ) | |||||
Accounts payable | 32,141 | (91,993 | ) | |||||
Other payables and accrued liabilities | (12,179,570 | ) | 372,363 | |||||
Income taxes payable | (340,235 | ) | 287,310 | |||||
Net cash provided by operating activities | 6,754,756 | 8,638,467 | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchases of property, plant and equipment | (179,265 | ) | (1,230,804 | ) | ||||
Purchase of intangible assets | (17,050 | ) | (1,070 | ) | ||||
Purchase of BAODENG | (17,913 | ) | - | |||||
Net cash used in investing activities | (214,228 | ) | (1,231,874 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from issuance of ordinary shares | 2,157,600 | 2,134,531 | ||||||
Capital contributions from noncontrolling interest shareholders | 77,096 | 36,174 | ||||||
Repayments to related party payables | - | (833,968 | ) | |||||
Proceeds from short-term loans | 1,085,019 | 1,243,755 | ||||||
Repayments on short-term loans | (1,348,524 | ) | (1,000,723 | ) | ||||
Dividends paid | - | (375,000 | ) | |||||
Net cash provided by financing activities | 1,971,191 | 1,204,769 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 639,573 | 1,537,203 | ||||||
Net increase in cash and cash equivalents | 9,151,292 | 10,148,565 | ||||||
Cash and cash equivalents at the beginning of period | 36,558,752 | 33,654,765 | ||||||
Cash and cash equivalents at the end of period | $ | 45,710,044 | $ | 43,803,330 | ||||
Supplemental disclosures of cash flows information: | ||||||||
Cash paid for income taxes | $ | 558,491 | $ | 435,548 | ||||
Cash paid for interest expense | $ | 38,511 | $ | 58,154 |
F-5
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Happiness Biotech Group Ltd. published this content on 06 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 January 2022 13:07:08 UTC.