Ossen Innovation Announces Full Year 2018 Financial Results
"
Twelve months Ended December 31, 2018 Financial Results |
||||||
For the Twelve Months Ended December 31, |
||||||
($ millions, except per share data) |
2018 |
2017 |
% Change |
|||
Revenues |
$136.1 |
$132.4 |
2.8% |
|||
Gross profit |
$20.5 |
$14.7 |
40.0% |
|||
Gross margin |
15.1% |
11.1% |
4.0% |
|||
Operating income |
$14.9 |
$8.1 |
85.4% |
|||
Operating margin |
11.0% |
6.1% |
4.9% |
|||
Net income attributable to Ossen Innovation |
$10.4 |
$5.3 |
94.2% |
|||
EPS (per ordinary share) |
$0.52 |
$0.27 |
92.6% |
|||
EPS (per ADS*) |
$1.56 |
$0.81 |
92.6% |
|||
* 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 3.3% and 4.1%, respectively, of total revenues during the years ended
Gross profit increased by
Selling expenses decreased by
Operating income increased by
Net income increased by
After deducting net income attributable to non-controlling interest, net income attributable to
"In 2018, the PRC steel industry completed the process of reducing overcapacity which resulted in the increase of the average steel price," continued Dr. Tang. "We expect to continue being agile in responding to the market development and focusing on high demand products to continue the momentum."
Balance Sheet and Cash Flows
As of
Net cash provided by operating activities was
Recent Developments
On
On
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
Investor Relations
GIC IR
Phone: +1-917-207-2173
Email: info@goldenir.com
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES |
|||||
December 31, |
|||||
2018 |
2017 |
||||
ASSETS |
|||||
Current assets |
|||||
Cash and cash equivalents |
$ |
3,444,421 |
$ |
950,225 |
|
Restricted cash |
4,070,655 |
7,192,928 |
|||
Accounts receivable, net of allowance for doubtful accounts of $939,535 and $868,973 at December 31, 2018 and 2017, respectively |
60,586,869 |
51,699,930 |
|||
Inventories |
17,177,926 |
13,479,473 |
|||
Advance to suppliers |
69,986,656 |
71,280,903 |
|||
Other current assets |
26,496 |
37,390 |
|||
Total current assets |
155,293,023 |
144,640,849 |
|||
Property, plant and equipment, net |
3,371,387 |
4,031,534 |
|||
Land use rights, net |
3,422,365 |
3,697,012 |
|||
Deferred tax assets |
159,136 |
149,511 |
|||
TOTAL ASSETS |
$ |
162,245,911 |
$ |
152,518,906 |
|
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES |
|||||
December 31, |
|||||
2018 |
2017 |
||||
Current Liabilities |
|||||
Notes payable-bank acceptance notes |
$ |
8,722,832 |
$ |
10,253,742 |
|
Short-term bank loans |
13,593,080 |
13,947,385 |
|||
Accounts payables |
289,954 |
359,927 |
|||
Customer deposits |
283,869 |
316,394 |
|||
Taxes payable |
1,547,882 |
450,711 |
|||
Other payables and accrued liabilities |
3,980,565 |
4,236,823 |
|||
Customer deposits – related parties |
4,800,384 |
- |
|||
Due to shareholder |
1,695,259 |
351,499 |
|||
Long-term bank loans – current portion |
7,269,027 |
- |
|||
Total current liabilities |
42,182,852 |
29,916,481 |
|||
Long-term bank loans |
- |
7,652,046 |
|||
TOTAL LIABILITIES |
42,182,852 |
37,568,527 |
|||
EQUITY |
|||||
Shareholders' Equity |
|||||
Ordinary shares, $0.01 par value: 100,000,000 shares authorized; 20,000,000 shares issued; 19,791,110 shares outstanding as both of December 31, 2018 and 2017 |
200,000 |
200,000 |
|||
Additional paid-in capital |
33,971,455 |
33,971,455 |
|||
Statutory reserve |
7,764,813 |
6,672,254 |
|||
Retained earnings |
68,673,562 |
59,386,668 |
|||
Treasury stock, at cost: 208,890 shares as both of December 31, 2018 and 2017 |
(192,153) |
(192,153) |
|||
Accumulated other comprehensive income/(loss) |
(4,044,969) |
2,227,334 |
|||
TOTAL SHAREHOLDERS' EQUITY |
106,372,708 |
102,265,558 |
|||
Non-controlling interest |
13,690,351 |
12,684,821 |
|||
TOTAL EQUITY |
120,063,059 |
114,950,379 |
|||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
162,245,911 |
$ |
152,518,906 |
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES |
||||||||
Year Ended December 31, |
||||||||
2018 |
2017 |
2016 |
||||||
REVENUES |
$ |
136,104,867 |
$ |
132,375,915 |
$ |
117,029,154 |
||
COST OF GOODS SOLD |
115,585,803 |
117,721,799 |
100,932,528 |
|||||
GROSS PROFIT |
20,519,064 |
14,654,116 |
16,096,626 |
|||||
Selling expenses |
327,365 |
598,832 |
734,159 |
|||||
General and administrative expenses |
5,263,914 |
6,002,121 |
6,376,383 |
|||||
Total Operating Expenses |
5,591,279 |
6,600,953 |
7,110,542 |
|||||
INCOME FROM OPERATIONS |
14,927,785 |
8,053,163 |
8,986,084 |
|||||
Financial expenses, net |
(1,621,486) |
(1,610,337) |
(2,827,138) |
|||||
Other income, net |
208,071 |
147,108 |
90,584 |
|||||
INCOME BEFORE INCOME TAX |
13,514,370 |
6,589,934 |
6,249,530 |
|||||
INCOME TAX |
(2,129,387) |
(691,556) |
(926,048) |
|||||
NET INCOME |
11,384,983 |
5,898,378 |
5,323,482 |
|||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST |
||||||||
1,005,530 |
553,067 |
499,509 |
||||||
NET INCOME ATTRIBUTABLE TO OSSEN INNOVATION CO.,LTD |
||||||||
10,379,453 |
5,345,311 |
4,823,973 |
||||||
OTHER COMPREHENSIVE INCOME (LOSS) |
||||||||
Foreign currency translation gain (loss) |
(6,272,303) |
6,606,207 |
(6,975,100) |
|||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) |
(6,272,303) |
6,606,207 |
(6,975,100) |
|||||
COMPREHENSIVE INCOME/(LOSS) |
$ |
4,107,150 |
$ |
11,951,518 |
$ |
(2,151,127) |
||
EARNINGS PER ORDINARY SHARE |
||||||||
Basic and diluted |
$ |
0.52 |
$ |
0.27 |
$ |
0.24 |
||
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING |
||||||||
Basic and diluted |
19,791,110 |
19,791,110 |
19,804,164 |
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016 |
|||||||||||||||||||||||||||
Total Ossen Innovation Co., Ltd. Shareholders' Equity |
|||||||||||||||||||||||||||
Ordinary Shares |
Additional Paid-in |
Accumulated Other |
Retained |
Non Controlling |
Total |
||||||||||||||||||||||
$0.01 Par Value |
Capital |
Treasury stock |
Comprehensive Income/(loss) |
Statutory Reserve |
Earnings |
Interest |
|||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
||||||||||||||||||||||||
Balance at January 1, 2016 |
20,000,000 |
200,000 |
33,971,455 |
(171,210) |
(155,343) |
2,596,227 |
5,631,373 |
50,258,265 |
11,632,245 |
104,134,222 |
|||||||||||||||||
Net income |
- |
- |
- |
- |
- |
- |
- |
4,823,973 |
499,509 |
5,323,482 |
|||||||||||||||||
Transfer to statutory reserve |
- |
- |
- |
- |
- |
- |
491,649 |
(491,649) |
- |
||||||||||||||||||
Common shares repurchase |
- |
- |
- |
(37,680) |
(36,810) |
- |
- |
- |
(36,810) |
||||||||||||||||||
Foreign currency translation adjustment |
- |
- |
- |
- |
- |
(6,975,100) |
- |
- |
(6,975,100) |
||||||||||||||||||
Balance at December 31, 2016 |
20,000,000 |
$ |
200,000 |
$ |
33,971,455 |
(208,890) |
$ |
(192,153) |
$ |
(4,378,873) |
$ |
6,123,022 |
$ |
54,590,589 |
$ |
12,131,754 |
$ |
102,445,794 |
|||||||||
Net income |
- |
- |
- |
- |
- |
- |
- |
5,345,311 |
553,067 |
5,898,378 |
|||||||||||||||||
Transfer to statutory reserve |
- |
- |
- |
- |
- |
- |
549,232 |
(549,232) |
- |
||||||||||||||||||
Foreign currency translation adjustment |
- |
- |
- |
- |
- |
6,606,207 |
- |
- |
6,606,207 |
||||||||||||||||||
Balance at December 31, 2017 |
20,000,000 |
$ |
200,000 |
$ |
33,971,455 |
(208,890) |
$ |
(192,153) |
$ |
2,227,334 |
$ |
6,672,254 |
$ |
59,386,668 |
$ |
12,684,821 |
$ |
114,950,379 |
|||||||||
Net income |
- |
- |
- |
- |
- |
- |
- |
10,379,453 |
1,005,530 |
11,384,983 |
|||||||||||||||||
Transfer to statutory reserve |
- |
- |
- |
- |
- |
- |
1,092,559 |
(1,092,559) |
- |
||||||||||||||||||
Foreign currency translation adjustment |
- |
- |
- |
- |
- |
(6,272,303) |
- |
- |
(6,272,303) |
||||||||||||||||||
Balance at December 31, 2018 |
20,000,000 |
$ |
200,000 |
$ |
33,971,455 |
(208,890) |
$ |
(192,153) |
$ |
(4,044,969) |
$ |
7,764,813 |
$ |
68,673,562 |
$ |
13,690,351 |
$ |
120,063,059 |
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016 |
|||||||||
Year Ended December 31, |
|||||||||
2018 |
2017 |
2016 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||||||
Net income |
$ |
11,384,983 |
$ |
5,898,378 |
$ |
5,323,482 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||
Depreciation and amortization |
641,647 |
796,566 |
883,755 |
||||||
Changes in operating assets and liabilities: |
|||||||||
(Increase) Decrease In: |
|||||||||
Accounts receivable |
(8,886,939) |
(14,401,465) |
5,949,508 |
||||||
Inventories |
(3,698,453) |
12,519,709 |
1,277,040 |
||||||
Advance to suppliers |
1,294,247 |
(24,551,618) |
9,000,804 |
||||||
Other current assets |
10,894 |
(6,023) |
745,284 |
||||||
Deferred tax assets |
(9,625) |
16,440 |
(27,562) |
||||||
Notes receivable - bank acceptance notes |
- |
15,280,381 |
(7,270,152) |
||||||
Increase (Decrease) In: |
|||||||||
Accounts payable |
(69,973) |
(1,144,936) |
(394,537) |
||||||
Customer deposits |
(32,524) |
180,490 |
(173,243) |
||||||
Income tax payable |
1,097,171 |
(144,084) |
180,545 |
||||||
Other payables and accrued expenses |
(256,258) |
2,496,349 |
70,804 |
||||||
Customer deposits - RPT |
4,800,384 |
- |
- |
||||||
Due to related party |
- |
(3,912) |
(61,883) |
||||||
Due to shareholder |
1,343,760 |
44,000 |
25,000 |
||||||
Net cash provided by/ (used in) operating activities |
7,619,314 |
(3,019,725) |
15,528,845 |
||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||||||
Purchases of plant and equipment |
(72,305) |
(37,848) |
(17,537) |
||||||
Net cash used in investing activities |
(72,305) |
(37,848) |
(17,537) |
||||||
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES |
|||||||||
Year Ended December 31, |
|||||||||
2018 |
2017 |
2016 |
|||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||||||
Proceeds from short-term bank loans |
17,900,302 |
13,497,882 |
20,422,885 |
||||||
Repayments of short-term bank loans |
(17,543,051) |
(17,380,550) |
(20,068,975) |
||||||
Proceeds from long-term bank loans |
- |
- |
7,530,007 |
||||||
Proceeds from notes payable-bank acceptance notes |
9,063,444 |
14,662,757 |
17,846,117 |
||||||
Repayment of notes payable-bank acceptance notes |
(10,120,846) |
(14,588,702) |
(20,029,819) |
||||||
Repurchase of common share |
- |
- |
(36,810) |
||||||
Repayments of bond payable |
- |
- |
(15,273,177) |
||||||
Net cash used in financing activities |
(700,151) |
(3,808,613) |
(9,609,772) |
||||||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH |
6,846,858 |
(6,866,186) |
5,901,536 |
||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
(7,474,935) |
8,088,466 |
(8,573,383) |
||||||
Cash, cash equivalents and restricted cash at beginning of period |
8,143,153 |
6,920,873 |
9,592,720 |
||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD |
$ |
7,515,076 |
$ |
8,143,153 |
$ |
6,920,873 |
|||
SUPPLEMENTARY CASH FLOW INFORMATION |
|||||||||
Cash paid during the periods: |
|||||||||
Income taxes paid |
$ |
1,019,270 |
$ |
840,670 |
$ |
740,873 |
|||
Interest paid |
$ |
1,388,283 |
$ |
1,397,635 |
$ |
2,311,039 |
|||
Non-cash transactions: |
|||||||||
Appropriation to statutory reserve |
$ |
1,092,559 |
$ |
549,232 |
$ |
491,649 |
View original content:http://www.prnewswire.com/news-releases/ossen-innovation-announces-full-year-2018-financial-results-300848759.html
SOURCE