Ossen Innovation Announces Full Year 2019 Financial Results
"Despite 2019 being another challenging year for
"We would like to extend our gratitude to medical personnel, health officials and volunteers in
Twelve months Ended
For the Twelve Months Ended |
||||||
($ millions, except per share data) |
2019 |
2018 |
% Change |
|||
Revenues |
|
|
2.1% |
|||
Gross profit |
|
|
9.0% |
|||
Gross margin |
16.1% |
15.1% |
1.0% |
|||
Operating income |
|
|
6.1% |
|||
Operating margin |
11.4% |
11.0% |
0.4% |
|||
Net income attributable to |
|
|
6.7% |
|||
EPS (per ordinary share) |
|
|
7.7% |
|||
EPS (per ADS*) |
|
|
7.7% |
* One ADS equals to three ordinary shares.
For the twelve months ended
Gross profit increased by
Selling expenses increased by
Operating income increased by
Net income increased by
After deducting net income attributable to non-controlling interest, net income attributable to
Impact of COVID-19
From the beginning of 2020 until early
Balance Sheet and Cash Flows
As of
Net cash provided by operating activities was
Recent Developments
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
For more information, please contact:
Wei Hua, Chief Executive Officer
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
|
|||||
|
|||||
2019 |
2018 |
||||
ASSETS |
|||||
Current assets |
|||||
Cash and cash equivalents |
$ |
2,576,677 |
$ |
3,444,421 |
|
Restricted cash |
6,025,718 |
4,070,655 |
|||
Accounts receivable, net of allowance for doubtful accounts of |
72,544,202 |
60,586,869 |
|||
Inventories |
15,100,328 |
17,177,926 |
|||
Advance to suppliers |
74,391,886 |
69,986,656 |
|||
Other current assets |
24,643 |
26,496 |
|||
Accounts receivable - related parties |
536,358 |
- |
|||
Total current assets |
171,199,812 |
155,293,023 |
|||
Property, plant and equipment, net |
2,948,264 |
3,371,387 |
|||
Land use rights, net |
3,288,959 |
3,422,365 |
|||
Deferred tax assets |
206,002 |
159,136 |
|||
TOTAL ASSETS |
$ |
177,643,037 |
$ |
162,245,911 |
|
|
|||||
|
|||||
2019 |
2018 |
||||
Current Liabilities |
|||||
Notes payable-bank acceptance notes |
$ |
8,895,107 |
$ |
8,722,832 |
|
Short-term bank loans |
17,072,867 |
13,593,080 |
|||
Accounts payables |
951,358 |
289,954 |
|||
Customer deposits |
3,131,916 |
283,869 |
|||
Taxes payable |
1,417,176 |
1,547,882 |
|||
Other payables and accrued liabilities |
3,875,529 |
3,980,565 |
|||
Customer deposits – related parties |
3,358,897 |
4,800,384 |
|||
Due to shareholder |
- |
1,695,259 |
|||
Due to related parties |
2,297,639 |
- |
|||
Long-term bank loans – current portion |
- |
7,269,027 |
|||
Total current liabilities |
41,000,489 |
42,182,852 |
|||
Long-term bank loans |
6,097,453 |
- |
|||
TOTAL LIABILITIES |
47,097,942 |
42,182,852 |
|||
EQUITY |
|||||
Shareholders' Equity |
|||||
Ordinary shares, |
200,000 |
200,000 |
|||
Additional paid-in capital |
33,971,455 |
33,971,455 |
|||
Statutory reserve |
9,043,010 |
7,764,813 |
|||
Retained earnings |
78,484,535 |
68,673,562 |
|||
|
(192,153) |
(192,153) |
|||
Accumulated other comprehensive loss |
(5,789,815) |
(4,044,969) |
|||
TOTAL SHAREHOLDERS' EQUITY |
115,717,032 |
106,372,708 |
|||
Non-controlling interest |
14,828,063 |
13,690,351 |
|||
TOTAL EQUITY |
130,545,095 |
120,063,059 |
|||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
177,643,037 |
$ |
162,245,911 |
|
|
||||||||
Year Ended |
||||||||
2019 |
2018 |
2017 |
||||||
REVENUES |
$ |
138,900,357 |
$ |
136,104,867 |
$ |
132,375,915 |
||
COST OF GOODS SOLD |
116,541,972 |
115,585,803 |
117,721,799 |
|||||
GROSS PROFIT |
22,358,385 |
20,519,064 |
14,654,116 |
|||||
Selling expenses |
357,426 |
327,365 |
598,832 |
|||||
General and administrative expenses |
6,155,316 |
5,263,914 |
6,002,121 |
|||||
Total Operating Expenses |
6,512,742 |
5,591,279 |
6,600,953 |
|||||
INCOME FROM OPERATIONS |
15,845,643 |
14,927,785 |
8,053,163 |
|||||
Financial expenses, net |
(2,382,405) |
(1,621,486) |
(1,610,337) |
|||||
Other income, net |
297,438 |
208,071 |
147,108 |
|||||
INCOME BEFORE INCOME TAX |
13,760,676 |
13,514,370 |
6,589,934 |
|||||
INCOME TAX |
(1,533,794) |
(2,129,387) |
(691,556) |
|||||
NET INCOME |
12,226,882 |
11,384,983 |
5,898,378 |
|||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST |
||||||||
1,137,712 |
1,005,530 |
553,067 |
||||||
NET INCOME ATTRIBUTABLE TO OSSEN INNOVATION CO.,LTD |
||||||||
11,089,170 |
10,379,453 |
5,345,311 |
||||||
OTHER COMPREHENSIVE INCOME (LOSS) |
||||||||
Foreign currency translation gain (loss) |
(1,744,846) |
(6,272,303) |
6,606,207 |
|||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) |
(1,744,846) |
(6,272,303) |
6,606,207 |
|||||
COMPREHENSIVE INCOME |
$ |
9,344,324 |
$ |
4,107,150 |
$ |
11,951,518 |
||
EARNINGS PER ORDINARY SHARE |
||||||||
Basic and diluted |
$ |
0.56 |
$ |
0.52 |
$ |
0.27 |
||
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING |
||||||||
Basic and diluted |
19,791,110 |
19,791,110 |
19,791,110 |
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
Ordinary Shares |
Additional Paid-in |
Accumulated Other |
Retained |
Non Controlling |
Total |
||||||||||||||||||||||
|
Capital |
|
Comprehensive Income/(loss) |
Statutory Reserve |
Earnings |
Interest |
|||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
||||||||||||||||||||||||
Balance at |
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 |
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 |
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 |
|||||||||
Net income |
- |
- |
- |
- |
- |
- |
- |
11,089,170 |
1,137,712 |
12,226,882 |
|||||||||||||||||
Transfer to statutory reserve |
- |
- |
- |
- |
- |
- |
1,278,197 |
(1,278,197) |
- |
||||||||||||||||||
Foreign currency translation adjustment |
- |
- |
- |
- |
- |
(1,744,846) |
- |
- |
(1,744,846) |
||||||||||||||||||
Balance at |
20,000,000 |
$ |
200,000 |
$ |
33,971,455 |
(208,890) |
$ |
(192,153) |
$ |
(5,789,815) |
$ |
9,043,010 |
$ |
78,484,535 |
$ |
14,828,063 |
$ |
130,545,095 |
|
|||||||||
Year Ended |
|||||||||
2019 |
2018 |
2017 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||||||
Net income |
$ |
12,226,882 |
$ |
11,384,983 |
$ |
5,898,378 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||
Depreciation and amortization |
606,045 |
641,647 |
796,566 |
||||||
Changes in operating assets and liabilities: |
|||||||||
(Increase) Decrease In: |
|||||||||
Accounts receivable |
(11,957,333) |
(8,886,939) |
(14,401,465) |
||||||
Inventories |
2,077,598 |
(3,698,453) |
12,519,709 |
||||||
Advance to suppliers |
(4,405,230) |
1,294,247 |
(24,551,618) |
||||||
Other current assets |
1,853 |
10,894 |
(6,023) |
||||||
Deferred tax assets |
(46,866) |
(9,625) |
16,440 |
||||||
Notes receivable - bank acceptance notes |
- |
- |
15,280,381 |
||||||
Accounts receivable - related parties |
(536,358) |
- |
- |
||||||
Increase (Decrease) In: |
|||||||||
Accounts payable |
661,404 |
(69,973) |
(1,144,936) |
||||||
Customer deposits |
2,848,047 |
(32,524) |
180,490 |
||||||
Income tax payable |
(130,706) |
1,097,171 |
(144,084) |
||||||
Other payables and accrued expenses |
(105,037) |
(256,258) |
2,496,349 |
||||||
Customer deposits - RPT |
(1,441,487) |
4,800,384 |
- |
||||||
Due to related party |
2,297,639 |
- |
(3,912) |
||||||
Due to shareholder |
(1,695,259) |
1,343,760 |
44,000 |
||||||
Net cash provided by/ (used in) operating activities |
401,192 |
7,619,314 |
(3,019,725) |
||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||||||
Purchases of plant and equipment |
(139,795) |
(72,305) |
(37,848) |
||||||
Net cash used in investing activities |
(139,795) |
(72,305) |
(37,848) |
|
|||||||||
Year Ended |
|||||||||
2019 |
2018 |
2017 |
|||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||||||
Proceeds from short-term bank loans |
85,479,789 |
17,900,302 |
13,497,882 |
||||||
Repayments of short-term bank loans |
(81,777,165) |
(17,543,051) |
(17,380,550) |
||||||
Proceeds from long-term bank loans |
6,171,040 |
- |
- |
||||||
Repayments of long-term bank loans |
(7,260,047) |
- |
- |
||||||
Proceeds from notes payable-bank acceptance notes |
9,002,458 |
9,063,444 |
14,662,757 |
||||||
Repayment of notes payable-bank acceptance notes |
(8,712,056) |
(10,120,846) |
(14,588,702) |
||||||
Net cash used in financing activities |
2,904,019 |
(700,151) |
(3,808,613) |
||||||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH |
3,165,416 |
6,846,858 |
(6,866,186) |
||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
(2,078,097) |
(7,474,935) |
8,088,466 |
||||||
Cash, cash equivalents and restricted cash at beginning of period |
7,515,076 |
8,143,153 |
6,920,873 |
||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD |
$ |
8,602,395 |
$ |
7,515,076 |
$ |
8,143,153 |
|||
SUPPLEMENTARY CASH FLOW INFORMATION |
|||||||||
Cash paid during the periods: |
|||||||||
Income taxes paid |
$ |
1,749,389 |
$ |
1,019,270 |
$ |
840,670 |
|||
Interest paid |
$ |
2,148,285 |
$ |
1,388,283 |
$ |
1,397,635 |
|||
Non-cash transactions: |
|||||||||
Appropriation to statutory reserve |
$ |
1,278,197 |
$ |
1,092,559 |
$ |
549,232 |
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