Ossen Innovation Announces Unaudited Financial Results for the Six Months Ended June 30, 2019
"Because of the lowest Chinese GDP growth rate in recent years during the first half of 2019, our top line decreased slightly. Nonetheless, net income increased by 18.7% as we focused on higher margin products," stated Dr.
Six Months Ended
For the Six Months Ended June 30, |
||||||
($ millions, except per share data) |
2019 |
2018 |
% Change |
|||
Revenues |
$65.1 |
$70.0 |
-7.1% |
|||
Gross profit |
$10.1 |
$10.0 |
2.0% |
|||
Gross margin |
15.6% |
14.3% |
+1.2% |
|||
Operating income |
$7.3 |
$6.7 |
8.9% |
|||
Operating margin |
11.2% |
9.6% |
+1.6% |
|||
Net income attributable to Ossen Innovation |
$5.6 |
$4.8 |
18.7% |
|||
EPS |
$0.29 |
$0.24 |
20.8% |
|||
For the six months ended
Gross profit increased by $0.1 million, or 2.0%, to
Selling expenses decreased by
As a result, total operating expenses decreased by $0.5 million, or 14.5%, to
Operating income increased 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 in operating activities was
Recent Developments
On
On June 26, 2019, the Company announced that its subsidiary, Ossen (Jiujiang) Innovation Materials Co., Ltd. ("Ossen Jiujiang"), borrowed funds pursuant to two loans in the aggregate principal amount of RMB 129.5 million (approximately US$18.9 million) from the Bank of
About Ossen Innovation Co., Ltd.
Forward-Looking 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 Securities and Exchange Commission, including the Company's annual report on Form 20-F. All information provided in this press release is as of the date hereof. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
For more information, please contact:
Email: int.tr@ossengroup.com
Phone: +86-21-6888-8886
Investor Relations
GCI IR
Phone: +1-917-207-2173
Email: info@goldenir.com
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES |
|||||
CONSOLIDATED BALANCE SHEETS |
|||||
June 30, |
December 31, |
||||
2019 |
2018 |
||||
(Unaudited) |
|||||
ASSETS |
|||||
Current Assets |
|||||
Cash and cash equivalents |
$ |
7,297,004 |
$ |
3,444,421 |
|
Restricted cash |
5,531,393 |
4,070,655 |
|||
Accounts receivable, net of allowance for doubtful accounts of |
55,689,396 |
60,586,869 |
|||
Inventories |
9,578,722 |
17,177,926 |
|||
Advance to suppliers |
101,108,543 |
69,986,656 |
|||
Other current assets |
23,452 |
26,496 |
|||
Accounts receivable - related parties |
801,511 |
- |
|||
Total Current Assets |
180,030,021 |
155,293,023 |
|||
Property, plant and equipment, net |
3,181,398 |
3,371,387 |
|||
Land use rights, net |
3,381,805 |
3,422,365 |
|||
Deferred tax assets |
153,321 |
159,136 |
|||
TOTAL ASSETS |
$ |
186,746,545 |
$ |
162,245,911 |
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES |
|||||
CONSOLIDATED BALANCE SHEETS |
|||||
June 30, |
December 31, |
||||
2019 |
2018 |
||||
(Unaudited) |
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
Current Liabilities |
|||||
Notes payable – bank acceptance notes |
$ |
7,569,275 |
$ |
8,722,832 |
|
Short-term bank loans |
33,333,920 |
13,593,080 |
|||
Accounts payable |
3,169,501 |
289,954 |
|||
Customer deposits |
637,496 |
283,869 |
|||
Income tax payable |
953,735 |
1,231,411 |
|||
Other payables and accrued expenses |
3,880,725 |
3,980,565 |
|||
Customer deposits - related parties |
1,059,980 |
4,800,384 |
|||
Due to shareholder |
- |
1,695,259 |
|||
Due to related parties |
2,559,998 |
- |
|||
Long-term bank loans – current portion |
7,278,149 |
7,269,027 |
|||
Total Current Liabilities |
60,442,779 |
41,866,381 |
|||
TOTAL LIABILITIES |
60,442,779 |
41,866,381 |
|||
Shareholders' Equity |
|||||
Ordinary shares, $0.01 par value: 100,000,000 shares authorized, |
200,000 |
200,000 |
|||
Additional paid-in capital |
33,971,455 |
33,971,455 |
|||
Statutory reserve |
8,410,754 |
7,764,813 |
|||
Retained earnings |
73,957,120 |
68,959,065 |
|||
Treasury stock, at cost: 208,890 shares as both of June 30, 2019 |
(192,153) |
(192,153) |
|||
Accumulated other comprehensive income |
(4,309,481) |
(4,057,326) |
|||
TOTAL SHAREHOLDERS' EQUITY |
112,037,695 |
106,645,854 |
|||
Non-controlling interest |
14,266,071 |
13,733,676 |
|||
TOTAL EQUITY |
126,303,766 |
120,379,530 |
|||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
186,746,545 |
$ |
162,245,911 |
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES |
||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
||||
(Unaudited) |
||||
For The Six Months Ended June 30, |
||||
2019 |
2018 |
|||
REVENUES |
$ |
65,078,854 |
$ |
69,946,885 |
COST OF GOODS SOLD |
54,957,652 |
60,022,694 |
||
GROSS PROFIT |
10,121,202 |
9,924,191 |
||
Operating Expenses: |
||||
Selling and distribution expenses |
130,926 |
175,788 |
||
General and administrative expenses |
2,678,356 |
3,108,386 |
||
Total Operating Expenses |
2,809,282 |
3,284,174 |
||
INCOME FROM OPERATIONS |
7,311,920 |
6,640,017 |
||
Other Income (Expenses): |
||||
Financial expenses, net |
(731,974) |
(705,603) |
||
Other income, net |
45,226 |
147,625 |
||
INCOME BEFORE INCOME TAXES |
6,625,172 |
6,082,039 |
||
INCOME TAXES |
(448,781) |
(910,819) |
||
NET INCOME |
6,176,391 |
5,171,220 |
||
LESS: NET INCOME ATTRIBUTABLE TO |
||||
NONCONTROLLING INTEREST |
532,394 |
416,745 |
||
NET INCOME ATTRIBUTABLE TO OSSEN |
||||
INNOVATION CO.,LTD |
||||
AND SUBSIDIARIES |
5,643,997 |
4,754,475 |
||
OTHER COMPREHENSIVE INCOME |
||||
(LOSS) |
||||
Foreign currency translation gain (loss), net of tax |
(252,155) |
(1,705,918) |
||
TOTAL OTHER COMPREHENSIVE INCOME |
(252,155) |
(1,705,918) |
||
COMPREHENSIVE INCOME (LOSS) |
5,391,842 |
3,048,557 |
||
EARNINGS PER ORDINARY SHARE |
||||
Basic and diluted |
$ |
0.29 |
$ |
0.24 |
WEIGHTED AVERAGE ORDINARY SHARES |
||||
OUTSTANDING |
||||
Basic and diluted |
$ |
19,791,110 |
$ |
19,791,110 |
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES |
|||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY |
|||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||
Total Ossen Innovation Co., Ltd. Shareholders' Equity |
|||||||||||||||||||||||||||
Ordinary Shares $0.01 Par Value |
Treasury Stock |
Additional |
Accumulated Comprehensive |
Statutory |
Retained |
Non |
|||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Capital |
Income |
Reserve |
Earnings |
Interest |
Total |
||||||||||||||||||
Balance at December 31, 2018 |
20,000,000 |
200,000 |
(208,890) |
(192,153) |
33,971,455 |
(4,057,326) |
7,764,813 |
68,959,065 |
13,733,676 |
120,379,530 |
|||||||||||||||||
Net income |
- |
- |
- |
- |
- |
- |
- |
5,643,996 |
532,395 |
6,176,391 |
|||||||||||||||||
Transfer to statutory reserve |
- |
- |
- |
- |
- |
- |
645,941 |
(645,941) |
- |
- |
|||||||||||||||||
Foreign currency translation |
- |
- |
- |
- |
- |
(252,155) |
- |
- |
- |
(252,155) |
|||||||||||||||||
Balance at June 30, 2019 |
20,000,000 |
$ |
200,000 |
(208,890) |
$ |
(192,153) |
$ |
33,971,455 |
$ |
(4,309,481) |
$ |
8,410,754 |
$ |
73,957,120 |
$ |
14,266,071 |
$ |
126,303,766 |
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES |
||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
(Unaudited) |
||||||
Six Months Ended June 30, |
||||||
2019 |
2018 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||
Net income |
$ |
6,176,391 |
$ |
5,171,220 |
||
Adjustments to reconcile net income to net cash provided by/ |
||||||
Depreciation and amortization |
309,983 |
339,233 |
||||
Changes in operating assets and liabilities: |
||||||
(Increase) Decrease In: |
||||||
Accounts receivable |
4,897,473 |
(25,124,759) |
||||
Inventories |
7,599,204 |
(181,351) |
||||
Advance to suppliers |
(31,704,863) |
15,083,682 |
||||
Other current assets |
3,043 |
(40,627) |
||||
Accounts receivable - related parties |
(801,511) |
(2,713,815) |
||||
Deferred tax assets |
5,814 |
(38,438) |
||||
Increase (Decrease) In: |
||||||
Accounts payable |
2,879,547 |
3,027,148 |
||||
Customer deposits |
353,627 |
(35,567) |
||||
Income tax payable |
(277,676) |
211,916 |
||||
Other payables and accrued expenses |
(99,840) |
133,318 |
||||
Customer deposits - related parties |
(3,740,404) |
1,430,728 |
||||
Due to related parties |
2,559,998 |
- |
||||
Due to shareholder |
(1,695,259) |
5,000 |
||||
Net cash used in operating activities |
(13,534,473) |
(2,732,312) |
||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||
Purchases of plant and equipment |
(74,216) |
(67,419) |
||||
Net cash used in investing activities |
(74,216) |
(67,419) |
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES |
||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
(Unaudited) |
||||||
Six Months Ended June 30, |
||||||
2019 |
2018 |
|||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||
Proceeds from short-term bank loans |
28,495,089 |
10,467,990 |
||||
Repayments of short-term bank loans |
(8,489,469) |
(4,743,652) |
||||
Proceeds from notes payable-bank acceptance notes |
1,476,429 |
2,833,441 |
||||
Repayment of notes payable-bank acceptance notes |
(2,657,573) |
(1,574,134) |
||||
Net cash provided by financing activities |
18,824,476 |
6,983,645 |
||||
INCREASE (DECREASE) IN CASH, CASH |
5,215,785 |
4,183,914 |
||||
Effect of exchange rate changes on cash, cash equivalents, and |
(485,440) |
(2,306,875) |
||||
Cash, cash equivalents and restricted cash at beginning of period |
8,098,052 |
8,143,153 |
||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
$ |
12,828,397 |
$ |
10,020,192 |
||
SUPPLEMENTARY CASH FLOW INFORMATION |
||||||
Cash paid during the periods: |
||||||
Income taxes paid |
$ |
1,102,556 |
$ |
575,057 |
||
Interest paid |
$ |
735,675 |
$ |
648,484 |
||
Non-cash transactions: |
||||||
Appropriation to statutory reserve |
$ |
645,941 |
$ |
486,878 |
View original content:http://www.prnewswire.com/news-releases/ossen-innovation-announces-unaudited-financial-results-for-the-six-months-ended-june-30-2019-300906842.html
SOURCE