Ossen Innovation Announces Full Year 2017 Financial Results
"We saw the improvement in the past year and we were able to increase our revenues by 13.1% as a result of the increase in sales of both coated and plain surface products and net income by 10.8%. Looking ahead, with the efforts of Chinese government to reduce the overcapacity of steel industry, we are optimistic about the medium to long term outlook of the industry," commented Dr.
Twelve months Ended
For the Twelve Months Ended December 31, |
||||||
($ millions, except per share data) |
2017 |
2016 |
% Change |
|||
Revenues |
$132.4 |
$117.0 |
13.1% |
|||
Gross profit |
$14.7 |
$16.1 |
-9.0% |
|||
Gross margin |
11.1% |
13.8% |
-2.7% |
|||
Operating income |
$8.1 |
$9.0 |
-10.4% |
|||
Operating margin |
6.1% |
7.7% |
-1.6% |
|||
Net income attributable to Ossen Innovation |
$5.3 |
$4.8 |
10.8% |
|||
EPS (per ordinary share) |
$0.27 |
$0.24 |
12.5% |
|||
EPS (per ADS*) |
$0.81 |
$0.72 |
12.5% |
|||
* One ADS equals to three ordinary shares. |
For the twelve months ended
The sales of coated PC steel materials, including both rare earth and zinc coated products, increased by
The Company generated approximately 4.1% and 4.2%, respectively, of total revenues during the years ended
Gross profit decreased by
Selling expenses decreased by
Operating income decreased by
Net income increased by
After deducting net income attributable to non-controlling interest, net income attributable to
Balance Sheet and Cash Flows
As of
Net cash used by operating activities was
Recent Developments
On
In connection with the Acquisition, Ossen agreed to sell its existing pre-stressed steel manufacturing business, including all existing liabilities, immediately following the completion of the Acquisition. An entity affiliated with Dr.
On
On
About
Safe Harbor Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the
For more information, please contact:
Email: int.tr@ossengroup.com
Phone: +86-21-6888-8886
Web: www.osseninnovation.com
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES |
|||||
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2017 AND 2016 |
|||||
December 31, |
|||||
2017 |
2016 |
||||
ASSETS |
|||||
Current assets |
|||||
Cash and cash equivalents |
$ |
950,225 |
$ |
217,631 |
|
Restricted cash |
7,192,928 |
6,703,242 |
|||
Note receivable-bank acceptance note |
- |
15,280,381 |
|||
Accounts receivable, net of allowance for doubtful accounts |
51,699,930 |
37,298,465 |
|||
Inventories |
13,479,473 |
25,999,182 |
|||
Advance to suppliers |
71,280,903 |
46,729,285 |
|||
Other current assets |
37,390 |
31,368 |
|||
Total current assets |
144,640,849 |
132,259,554 |
|||
Property, plant and equipment, net |
4,031,534 |
4,447,063 |
|||
Land use rights, net |
3,697,012 |
3,571,184 |
|||
Deferred tax assets |
149,511 |
165,951 |
|||
TOTAL ASSETS |
$ |
152,518,906 |
$ |
140,443,752 |
|
Current Liabilities |
|||||
Notes payable-bank acceptance notes |
$ |
10,253,742 |
$ |
9,586,276 |
|
Short-term bank loans |
13,947,385 |
16,916,535 |
|||
Accounts payables |
359,927 |
1,504,863 |
|||
Customer deposits |
316,394 |
135,903 |
|||
Taxes payable |
450,711 |
594,795 |
|||
Other payables and accrued liabilities |
4,236,823 |
1,740,474 |
|||
Due to related party |
- |
3,886 |
|||
Due to shareholder |
351,499 |
307,499 |
|||
Total current liabilities |
29,916,481 |
30,790,231 |
|||
Long-term bank loans |
7,652,046 |
7,207,727 |
|||
TOTAL LIABILITIES |
37,568,527 |
37,997,958 |
|||
EQUITY |
|||||
Shareholders' Equity |
|||||
Ordinary shares, $0.01 par value: 100,000,000 shares |
200,000 |
200,000 |
|||
Additional paid-in capital |
33,971,455 |
33,971,455 |
|||
Statutory reserve |
6,672,254 |
6,123,022 |
|||
Retained earnings |
59,386,668 |
54,590,589 |
|||
Treasury stock, at cost: 208,890 shares as both of December 31, 2017 and 2016 |
(192,153) |
(192,153) |
|||
Accumulated other comprehensive income/(loss) |
2,227,334 |
(4,378,873) |
|||
TOTAL SHAREHOLDERS' EQUITY |
102,265,558 |
90,314,040 |
|||
Non-controlling interest |
12,684,821 |
12,131,754 |
|||
TOTAL EQUITY |
114,950,379 |
102,445,794 |
|||
$ |
152,518,906 |
$ |
140,443,752 |
||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES |
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE |
||||||||
YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015 |
||||||||
Year Ended December 31, |
||||||||
2017 |
2016 |
2015 |
||||||
REVEUNUES |
$ |
132,375,915 |
$ |
117,029,154 |
$ |
117,908,416 |
||
COST OF GOODS SOLD |
117,721,799 |
100,932,528 |
102,197,994 |
|||||
GROSS PROFIT |
14,654,116 |
16,096,626 |
15,710,422 |
|||||
Selling expenses |
598,832 |
734,159 |
986,378 |
|||||
General and administrative expenses |
6,002,121 |
6,376,383 |
4,478,413 |
|||||
Total Operating Expenses |
6,600,953 |
7,110,542 |
5,464,791 |
|||||
INCOME FROM OPERATIONS |
8,053,163 |
8,986,084 |
10,245,631 |
|||||
Financial expenses, net |
(1,610,337) |
(2,827,138) |
(2,823,952) |
|||||
Other income, net |
147,108 |
90,584 |
371,894 |
|||||
INCOME BEFORE INCOME TAX |
6,589,934 |
6,249,530 |
7,793,573 |
|||||
INCOME TAX |
(691,556) |
(926,048) |
(1,180,167) |
|||||
NET INCOME |
5,898,378 |
5,323,482 |
6,613,406 |
|||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST |
||||||||
553,067 |
499,509 |
716,602 |
||||||
NET INCOME ATTRIBUTABLE TO OSSEN INNOVATION CO.,LTD |
||||||||
5,345,311 |
4,823,973 |
5,896,804 |
||||||
OTHER COMPREHENSIVE INCOME (LOSS) |
||||||||
Foreign currency translation gain (loss) |
6,606,207 |
(6,975,100) |
(5,829,470) |
|||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) |
6,606,207 |
(6,975,100) |
(5,829,470) |
|||||
COMPREHENSIVE INCOME/(LOSS) |
$ |
11,951,518 |
$ |
(2,151,127) |
$ |
67,334 |
||
EARNINGS PER ORDINARY SHARE |
||||||||
Basic and diluted |
$ |
0.27 |
$ |
0.24 |
$ |
0.30 |
||
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING |
||||||||
Basic and diluted |
19,791,110 |
19,804,164 |
19,862,537 |
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES |
|||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015 |
|||||||||
Year Ended December 31, |
|||||||||
2017 |
2016 |
2015 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||||||
Net income |
$ |
5,898,378 |
$ |
5,323,482 |
$ |
6,613,406 |
|||
Adjustments to reconcile net income to net cash |
|||||||||
Depreciation and amortization |
796,566 |
883,755 |
1,416,060 |
||||||
Changes in operating assets and liabilities: |
|||||||||
(Increase) Decrease In: |
|||||||||
Accounts receivable |
(14,401,465) |
5,949,508 |
10,516,441 |
||||||
Inventories |
12,519,709 |
1,277,040 |
(7,138,320) |
||||||
Advance to suppliers |
(24,551,618) |
9,000,804 |
597,301 |
||||||
Other current assets |
(6,023) |
745,284 |
220,047 |
||||||
Deferred tax assets |
16,440 |
(27,562) |
(188,769) |
||||||
Notes receivable - bank acceptance notes |
15,280,381 |
(7,270,152) |
1,914,927 |
||||||
Increase (Decrease) In: |
|||||||||
Accounts payable |
(1,144,936) |
(394,537) |
(1,317,676) |
||||||
Customer deposits |
180,490 |
(173,243) |
(278,858) |
||||||
Income tax payable |
(144,084) |
180,545 |
(138,209) |
||||||
Other payables and accrued expenses |
2,496,349 |
70,804 |
46,712 |
||||||
Due to related party |
(3,912) |
(61,883) |
(3,700) |
||||||
Due to shareholder |
44,000 |
25,000 |
182,499 |
||||||
Net cash provided by/ (used in) operating activities |
(3,019,725) |
15,528,845 |
12,441,861 |
||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||||||
Purchases of plant and equipment |
(37,848) |
(17,537) |
(29,687) |
||||||
Net cash used in investing activities |
(37,848) |
(17,537) |
(29,687) |
||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||||||
Decrease/ (increase) in restricted cash |
(489,686) |
2,077,201 |
8,792,289 |
||||||
Proceeds from short-term bank loans |
13,497,882 |
20,422,885 |
18,462,625 |
||||||
Repayments of short-term bank loans |
(17,380,550) |
(20,068,975) |
(18,462,625) |
||||||
Proceeds from long-term bank loans |
0 |
7,530,007 |
- |
||||||
Proceeds from notes payable-bank acceptance |
14,662,757 |
17,846,117 |
36,202,800 |
||||||
Repayment of notes payable-bank acceptance |
(14,588,702) |
(20,029,819) |
(49,367,454) |
||||||
Repurchase of common share |
- |
(36,810) |
(58,735) |
||||||
Repayments of bond payable |
- |
(15,273,177) |
- |
||||||
Net cash used in financing activities |
(4,298,299) |
(7,532,571) |
(4,431,100) |
||||||
INCREASE (DECREASE) IN CASH AND |
(7,355,872) |
7,978,737 |
7,981,074 |
||||||
Effect of exchange rate changes on cash |
8,088,466 |
(8,573,383) |
(7,853,389) |
||||||
Cash and cash equivalents at beginning of |
217,631 |
812,277 |
684,592 |
||||||
CASH AND CASH EQUIVALENTS AT END |
$ |
950,225 |
$ |
217,631 |
$ |
812,277 |
|||
SUPPLEMENTARY CASH FLOW |
|||||||||
Cash paid during the periods: |
|||||||||
Income taxes paid |
$ |
840,670 |
$ |
740,873 |
$ |
1,301,687 |
|||
Interest paid |
$ |
1,397,635 |
$ |
2,311,039 |
$ |
3,353,344 |
|||
Non-cash transactions: |
|||||||||
Appropriation to statutory reserve |
$ |
549,232 |
$ |
491,649 |
$ |
609,621 |
View original content:http://www.prnewswire.com/news-releases/ossen-innovation-announces-full-year-2017-financial-results-300649081.html
SOURCE