Ionix Technology, Inc. Announces Fourth Quarter 2018 Financial Results
SHENZHEN, China, Feb. 19, 2019 /PRNewswire/ -- Ionix Technology, Inc. ("IINX") (OTCQB: IINX), By incorporating fine quality enterprises and innovating forward-looking technologies, Ionix Technology, Inc has become a business aggregator in Chinese domestic photoelectric display and smart energy fields. Currently, the Company owns four production bases which are Baileqi Electronic, Lisite Science, Fangguan Photoelectric and Shizhe New Energy. today announced its financial results of the fourth quarter ended December 31, 2018.
SUMMARY FINANCIALS
For the Three Months Ended December 31,(unaudited) |
|||
Q4 2018 |
Q4 2017 |
CHANGE |
|
Revenues - Non-related parties |
$2,229,489 |
$750,944 |
|
Revenues - Related parties |
$22,059 |
- |
|
Total Revenues |
$2,251,548 |
$750,944 |
200% |
Cost of revenues - Non-related parties |
$541,912 |
$64,971 |
|
Related parties |
$1,414,348 |
$607,020 |
|
Total Cost of Revenues |
$1,956,260 |
$671,991 |
191% |
Gross profit |
$295,288 |
$78,953 |
|
For the Six Months Ended December 31, (unaudited) |
|||
6-Month 2018 |
6-Month 2017 |
CHANGE |
|
Revenues - Non-related parties |
$4,704,539 |
$1,132,485 |
|
Revenues - Related parties |
115,897 |
- |
|
Total Revenues |
$4,820,436 |
$1,132,485 |
326% |
Cost of revenues - Non-related parties |
1,041,824 |
$113,903 |
|
Related parties |
3,194,159 |
$878,671 |
|
Total Cost of Revenues |
$4,235,983 |
$992,574 |
327% |
Gross profit |
$584,453 |
$139,911 |
|
Revenue
During the three months ended December 31, 2018 and 2017, total revenue was $2,251,548 and $750,944, respectively. The total revenues increased by 200% from the three months ended December 31, 2017 to three months ended December 31, 2018.
During the six months ended December 31, 2018 and 2017, revenue was $4,820,436 and $1,132,485, respectively. The total revenues increased by 326% from the six months ended December 31, 2017 to the six months ended December 31, 2018.
The increase in revenue for the three and six months ended December 31, 2018 compared to 2017 can be attributed to our expanded operations in the fields of LCD screens in the PRC during the three and six months ended December 31, 2018.
Cost of Revenue
Cost of revenue included the cost of raw materials and finished products purchased and the sub-contracting processing fee paid to the processing factories which were owned by our shareholders, pursuant to the manufacturing agreement between the Company's subsidiaries in PRC and processing factories.
During the three months ended December 31, 2018, cost of revenue was $541,912 for non-related parties and $1,414,348 for related parties. In comparison, during the three months ended December 31, 2017, the cost of revenues was $64,971 for non-related parties and $607,020 for related parties. The total cost of revenues increased by 191% from the three months ended December 31, 2017 to three months ended December 31, 2018.
During the six months ended December 31, 2018, cost of revenue was $1,041,824 for non-related parties and $3,194,159 for related parties. In comparison, during the six months ended December 31, 2017, cost of revenue was $113,903 for non-related parties and $878,671 for related parties. The total cost of revenues increased by 327% from the six months ended December 31, 2017 to six months ended December 31, 2018.
The increase in cost of revenue for the three and six months ended December 31, 2018 compared to 2017 was attributed to our expanded operations in the fields of LCD screens in the PRC during the three and six months ended December 31, 2018.
Gross Profit
There were no significant fluctuations in our gross profit margin. During the three months ended December 31, 2018 and 2017, gross profit was $295,288 and $78,953, respectively. Our gross profit margin maintained at 13% during the three months ended December 31, 2018 as compared to 11% for the three months ended December 31, 2017. During the six months ended December 31, 2018 and 2017, gross profit was $584,453 and $139,911, respectively. Our gross profit margin maintained at 12% for the six months ended both December 31, 2018 and December 31, 2017.
Net Income (Loss)
During the three months ended December 31, 2018 and 2017, our net income was $6,854 compared with $9,714, respectively.
During the six months ended December 31, 2018 and 2017, our net income was $184,007 compared with a net loss of $490, respectively.
The difference can be attributed to increase in gross profits during the three and six months ended December 31, 2018.
Business Developments
In June 2018, the Board of Directors of Ionix Technology, Inc. (the "Company") approved and ratified the incorporation of Dalian Shizhe New Energy Technology Co., Ltd. And the Company ratified and approved the appointment of Mr. Liang Zhang as President and a member of the board of directors of Dalian Shizhe New Energy Technology Co., Ltd . Dalian Shizhe New Energy Technology Co., Ltd is a wholly owned subsidiary of Well Best International Investment Limited and an indirect wholly-owned subsidiary of Ionix Technology, Inc.
In December 2018, Ionix Technology, Inc.By entering into specific VIE Transaction Documents, this acquisition absorbed 95.14% of total equity interest of Changchun Fangguan.
Mr. Bailiang Yang, Chairman of Board of Directors of IINX stated, "2018 was ended with a favorable finale by the outstanding business performance in Quarter 4. The high dedication of our team, efficient execution of the company's strategy and the successful acquisition of Changchun Fangguan have delivered healthy profit margin growth to the whole company and various business divisions. Here, I would like to express my sincere thanks to all our staff for their services to our customers and the performance growth achieved."
Mr. Bailiang Yang further stated, "Looking ahead to 2019, we believe our company has all the elements needed to continuously maintain strong financial performance. We will continue to absorb and integrate high quality enterprises and forward-looking technology in the fields of photoelectric display and smart energy, expand market share, provide better, more convenient and more cost-effective services and bring long-term growth and stable dividend income for shareholders."
About Ionix Technology, Inc.
Cambridge Projects Inc. was formed in March, 2011. On February 4th 2016, with approval of Securities and Exchange Commission (SEC) in connection with Financial Industry Regulatory Authority (FINRA), the company amended its name from "Cambridge Projects Inc." to "Ionix Technology, Inc." (IINX) through restructuring and is based in New York. IINX through its two subsidiaries, Well Best International Investment Limited and Welly Surplus International Limited,initially invest in four operating subsidiaries namely Shenzhen Baileqi Electronic Technology Co., Ltd, Lisite Science Technology (Shenzhen) Co., Ltd, Changchun Fangguan Photoelectric Display Technology Co., Ltd and Dalian Shizhe New Energy Technology Co., Ltd. On December 27, 2018, Changchun Fangguan Phototoelectric Display Technology Co., Ltd , which is a wholly owned subsidiary of IINX, officially announced that it has entered into VIE transaction documents with Changchun Fangguan Electronics Technology Co., Ltd, and obtained its de facto control. IINX has not only converged a range of various products, includes intelligent electronic devices, on-board hydrogen fuel batteries and photoelectric display, but also has achieved a multi-industrial combination across high-end materials, micro-electronics, fine chemicals, modern optics and so forth.
To learn more, please visit our new website: www.iinx-tech.com.
Safe Harbor
This news release contains "forward-looking statements" as that term is defined in the United States Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended. Statements in this press release that are not purely historical are forward-looking statements, including beliefs, plans, expectations or intentions regarding the future, and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors, such as the inherent uncertainties associated with new business opportunities and development stage companies. Ionix Technology assumes no obligation to update the forward-looking statements. Although Ionix Technology believes that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that they will prove to be accurate. Investors should refer to the risk factors disclosure outlined in Ionix Technology's annual report on Form 10-K for the most recent fiscal year, quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the U.S. Securities and Exchange Commission.
For more information, please contact:
Yubao Liu
+86-159-4540-0218
Email: [email protected]
(financial tables follow)
IONIX TECHNOLOGY, INC. |
||||||
CONSOLIDATED BALANCE SHEETS |
||||||
(UNAUDITED) |
||||||
ASSETS |
December 31, 2018 |
June 30, 2018 |
||||
Current Assets: |
||||||
Cash |
$ |
824,874 |
$ |
111,462 |
||
Notes receivable |
96,581 |
- |
||||
Accounts receivable - non-related parties |
3,220,848 |
636,413 |
||||
- related parties |
160,647 |
119,543 |
||||
Inventory, net |
3,415,851 |
226,839 |
||||
Advances to suppliers - non-related parties |
168,519 |
3,164 |
||||
- related parties |
- |
206,194 |
||||
Prepaid expenses and other current assets |
78,047 |
20,592 |
||||
Total Current Assets |
7,965,367 |
1,324,207 |
||||
Property, plant and equipment |
6,633,132 |
- |
||||
Intangible assets |
4,516,173 |
- |
||||
Deferred tax assets |
58,071 |
- |
||||
Total Assets |
$ |
19,172,743 |
$ |
1,324,207 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Current Liabilities: |
||||||
Short-term bank loan |
$ |
2,622,683 |
$ |
- |
||
Accounts payable - non-related parties |
3,715,537 |
264,171 |
||||
- related parties |
55,829 |
248,543 |
||||
Advance from customers |
63,468 |
59,546 |
||||
Due to related parties |
6,771,273 |
212,557 |
||||
Accrued expenses and other current liabilities |
298,952 |
125,733 |
||||
Total Current Liabilities |
13,527,742 |
910,550 |
||||
Deferred tax liability |
- |
15,242 |
||||
Total Liabilities |
13,527,742 |
925,792 |
||||
COMMITMENT AND CONTINGENCIES |
||||||
Stockholders' Equity: |
||||||
Preferred stock, $.0001 par value, 5,000,000 shares authorized, |
||||||
5,000,000 shares issued and outstanding |
500 |
500 |
||||
Common stock, $.0001 par value, 195,000,000 shares authorized, |
||||||
114,003,000 and 99,003,000 shares issued and outstanding as of |
||||||
December 31, 2018 and June 30, 2018, respectively |
11,400 |
9,900 |
||||
Additional paid in capital |
5,235,746 |
237,246 |
||||
Retained earnings |
326,826 |
142,819 |
||||
Accumulated other comprehensive income (loss) |
(20,011) |
7,950 |
||||
Total Stockholders' Equity attributable to the Company |
5,554,461 |
398,415 |
||||
Noncontrolling interest |
90,540 |
- |
||||
Total Stockholders' Equity |
5,645,001 |
398,415 |
||||
Total Liabilities and Stockholders' Equity |
$ |
19,172,743 |
$ |
1,324,207 |
||
IONIX TECHNOLOGY, INC. |
|||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
|||||||||||
(Unaudited) |
|||||||||||
For the Three Months Ended |
For the Six Months Ended |
||||||||||
December 31, |
December 31, |
||||||||||
2018 |
2017 |
2018 |
2017 |
||||||||
Revenues - Non-related parties |
$ |
2,229,489 |
$ |
750,944 |
$ |
4,704,539 |
$ |
1,132,485 |
|||
Revenues - Related parties |
22,059 |
- |
115,897 |
- |
|||||||
Total Revenues |
2,251,548 |
750,944 |
4,820,436 |
1,132,485 |
|||||||
Cost of revenues - Non-related parties |
541,912 |
64,971 |
1,041,824 |
113,903 |
|||||||
- Related parties |
1,414,348 |
607,020 |
3,194,159 |
878,671 |
|||||||
Total Cost of Revenues |
1,956,260 |
671,991 |
4,235,983 |
992,574 |
|||||||
Gross profit |
295,288 |
78,953 |
584,453 |
139,911 |
|||||||
Operating expenses |
|||||||||||
Selling, general and administrative expense |
232,917 |
61,475 |
295,906 |
131,028 |
|||||||
Total operating expenses |
232,917 |
61,475 |
295,906 |
131,028 |
|||||||
Income from operations |
62,371 |
17,478 |
288,547 |
8,883 |
|||||||
Other income |
16,285 |
- |
17,688 |
- |
|||||||
Income before income tax provision |
78,656 |
17,478 |
306,235 |
8,883 |
|||||||
Income tax provision |
71,802 |
7,764 |
122,228 |
9,373 |
|||||||
Net income (loss) |
6,854 |
9,714 |
184,007 |
(490) |
|||||||
Other comprehensive income (loss) |
|||||||||||
Foreign currency translation adjustment |
(20,039) |
4,931 |
(27,961) |
8,619 |
|||||||
Comprehensive income (loss) |
$ |
(13,185) |
$ |
14,645 |
$ |
156,046 |
$ |
8,129 |
|||
Income (Loss) Per Share - Basic and Diluted |
$ |
0.00 |
$ |
0.00 |
$ |
0.00 |
$ |
(0.00) |
|||
Weighted average number of common shares outstanding - Basic and Diluted |
99,655,174 |
99,003,000 |
99,329,087 |
99,003,000 |
|||||||
IONIX TECHNOLOGY, INC. |
||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
(UNAUDITED) |
||||||
For the Six Months Ended |
||||||
December 31, |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
2018 |
2017 |
||||
Net income (loss) |
$ |
184,007 |
$ |
(490) |
||
Adjustments required to reconcile net income (loss) to net cash used in |
||||||
operating activities: |
||||||
Deferred taxes |
(14,884) |
- |
||||
Changes in operating assets and liabilities: |
||||||
Accounts receivable - non related parties |
144,264 |
214,351 |
||||
Accounts receivable - related parties |
(45,987) |
- |
||||
Inventory |
(294,434) |
(197,363) |
||||
Advances to suppliers - non-related parties |
355 |
120,004 |
||||
Advances to suppliers - related parties |
201,357 |
(89,483) |
||||
Prepaid expenses |
3,925 |
(11,277) |
||||
Accounts payable - non-related parties |
(257,973) |
12,272 |
||||
Accounts payable - related parties |
(138,955) |
(117,978) |
||||
Advance from customers |
(17,820) |
(39,455) |
||||
Accrued expenses and other current liabilities |
27,524 |
(49,342) |
||||
Net cash used in operating activities |
(208,621) |
(158,761) |
||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||
Other receivables |
- |
148,947 |
||||
Cash received from acquisition |
687,591 |
- |
||||
Net cash provided by investing activities |
687,591 |
148,947 |
||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||
Notes receivable |
(29,518) |
- |
||||
Acquisition of office equipment |
(2,163) |
- |
||||
Proceeds from (repayment of) loans from related parties |
269,974 |
(109,413) |
||||
Net cash provided by (used in) financing activities |
238,293 |
(109,413) |
||||
Effect of exchange rate changes on cash |
(3,851) |
3,727 |
||||
Net increase (decrease) in cash |
713,412 |
(115,500) |
||||
Cash, beginning of period |
111,462 |
186,767 |
||||
Cash, end of period |
$ |
824,874 |
$ |
71,267 |
||
Supplemental disclosure of cash flow information: |
||||||
Cash paid for income tax |
$ |
141,749 |
$ |
5,163 |
||
Cash paid for interests |
$ |
- |
$ |
- |
||
Non-cash investing activities |
||||||
Issuance of 15,000,000 shares of common stock in exchange for 95.14% |
||||||
ownership rights of a variable interest entity |
$ |
5,000,000 |
$ |
- |
||
SOURCE Ionix Technology, Inc.
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