LAS VEGAS, Oct. 1, 2019 /PRNewswire/ -- Ionix Technology, Inc. (OTCQB: IINX), ("Ionix Technology", "IINX" or "the Company"), a business aggregator in photoelectric display and smart energy fields, announced its financial results for the fiscal year ended June 30, 2019.
Fiscal Year 2019 Financial Highlights:
Total revenues increased by 92 % from the year ended June 30, 2018 to year ended June 30, 2019.
Gross profit increased by 196% from the year ended June 30, 2018 to year ended June 30, 2019.
Gross profit margin maintained at 17.8% during the year ended June 30, 2019 as compared to 11.5% for the year ended June 30,2018.
Fiscal Year 2019 and Recent Operational Highlights
On December 27, 2018，IINX announced that it has entered into certain VIE Transaction Documents with certain shareholders of Changchun Fangguan Electronics Technology Co., Ltd. ("Fangguan Electronics"), a leading manufacturer in liquid crystal displays field. By entering into specific VIE Transaction Documents, IINX acquired the control of Fangguan Electronics.
As of September 20, 2019, Fangguan Electronics has reached an average product output of more than RMB 15 million per month in July, August and September. The total product output of these three months increased 56.59%, compared to the total product output of RMB 21.17 million in the fourth quarter of fiscal year 2019, and increased 85.61% compared to the total product output of RMB 17.86 million in the first quarter of fiscal year 2019.
On September 23, 2019, Shenzhen Baileqi Electronic Technology Co., Ltd. ("Baileqi"), a wholly-owned subsidiary of IINX, announced the official launch of three OLED module products.
"Fiscal 2019 was a year of significant accomplishments for IINX. We completed the acquisition of Fangguan Electronics and are taking concrete steps to gain market shares in the OLED market." said Mr. Cheng Li, Chairman of IINX. "Our gross profit margin maintained at 17.8% during the year ended June 30, 2019 as compared to 11.5% for the year ended June 30, 2018, mainly attribute to the higher gross margin from the acquired operation of Fangguan Electronics."
Mr. Li continued, "On the other side, our subsidiary Dalian Shizhe recently put two wind farm service vessels into operation, which is expected to bring in new revenue to the Company and expand our business outreach in the smart energy industry. This year we will continue expanding our business in OLED industry and smart energy field to increase shareholder value and move toward the sustainable profitability."
Revenue
During the year ended June 30, 2019 and 2018, total revenues was $ 12,348,492 and $6,422,807, respectively. The total revenues increased by 92 % from the year ended June 30, 2018 to year ended June 30, 2019.
The increase in revenues for the year ended June 30, 2019 compared to 2018 can be attributed to the Company's expanded operations in the fields of LCM (Liquid Crystal Module) in the PRC by the acquisition of Fangguan Electronics in December 27, 2018.
Cost of Revenue
During the year ended June 30, 2019 and 2018, the total cost of revenues was $ 10,153,217 and $5,681,912 respectively. The total cost of revenues increased by 79% from the year ended June 30, 2018 to year ended June 30, 2019.
The increase in cost of revenue for the year ended June 30, 2019 compared to 2018 was attributed to additional revenue from operations in the fields of LCM in the PRC by the acquisition of Fangguan Electronics in December 27, 2018.
Gross Profit
During the year ended June 30, 2019 and 2018, the gross profit was $ 2,195,275 and $740,895, respectively. The gross profit increased by 196% from the year ended June 30, 2018 to year ended June 30, 2019. Gross profit margin maintained at 17.8% during the year ended June 30, 2019 as compared to 11.5% for the year ended June 30, 2018.
The difference can be attributed to the fact that the LCM manufactured and sold by Fangguan Electronics (which became a variable interest entity of the Company on December 27, 2018) hold the higher gross margin (around 21%).
Operating Expenses
During the year ended June 30, 2019 and 2018, Operating expenses were $1,578,832 and $ 270,074, respectively.
The difference can be attributed to the depreciation and amortization expenses that incurred after Fangguan Electronics became a variable interest entity of the Company as of December 27, 2018 during the year ended June 30, 2019. Moreover, during this recent fiscal year, there was an additional Research and Development expense occur in comparison with the year ended June 30, 2018, which took a portion of approximately 20% of the total Operating Expenses.
Net Income
During the year ended June 30, 2019 and 2018, net income was $397,047 compared with $326,260 respectively.
The difference can be attributed to increase in gross profits during the year ended June 30, 2019.
Cash and Financial Position
As of June 30, 2019, the Company had cash and cash equivalents of $509,615, compared to $111,462 as of June 30, 2018.
The Company had a working capital of $717,977 as of June 30, 2019 compared to working capital of $413,657 as of June 30,2018.
Net cash used in operating activities was $1,546,825 for the year ended June 30, 2019, and net cash used in operating activities was $114,613 for the year ended June 30, 2018.
During the years ended June 30,2019 and 2018, net cash provided by investing activities was $2,084,752 and $149,354 respectively. The change was mainly due to the cash provided by Fangguan Electronics whose acquisition was completed on December 27, 2018 which was partially offset by the increase in acquisition of property, plant and equipment outflows.
During the years ended June 30, 2019, the Company used $142,531 in cash for financing activities, which was due to the return of capital to the minority shareholder of Fangguan Electronics, the repayment of loans from related parties and increase in notes receivables outflows. During the year ended June 30, 2018, the Company used $113,036 in cash for financing activities, all of which was attributable to repayment of the related party loans.
About Ionix Technology, Inc.
Ionix Technology, Inc. is a holding company that is principally engaged in the photoelectric display and smart energy industries. The company has five operating subsidiaries: Changchun Fangguan Electronics Technology Co., Ltd, a company which has been focusing on R&D, manufacturing and marketing LCM and LCD. Changchun Fangguan Photoelectric Display Technology Co., Ltd, a company which specializes in developing, designing, and selling TN and STN LCD, STN, CSTN, and TFT LCD modules as well as other related products; Shenzhen Baileqi Electronic Technology Co., Ltd, a company which specializes in LCD slicing, filling, researching and designing, and selling of LCD Modules (LCM) and PCBs; Lisite Science Technology (Shenzhen) Co., Ltd., a company engaged in the marketing and selling of intelligent electronic devices; and Dalian Shizhe New Energy Technology Co., Ltd., a company engaged in the new energy support service, and operating the photovoltaic power generation, electric vehicles and charging piles with corresponding operation and maintenance and three dimensional parking. Currently, IINX has embarked on the layout of industrialization and marketization of front end materials and back end modules of liquid crystal displays and applications of flexible folding display technology by taking Fangguan Electronics as production bases, to seize the market share of OLED high technology.
To learn more, please visit our website: www.theiinx.com
Safe Harbor Statement
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.
IR Contact:
Dragon Gate Investment Partners LLC
Tel: +1(646)-801-2803
Email:iinx@dgipl.com
IONIX TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS |
|
| June 30, 2019 |
| June 30, 2018 |
ASSETS |
|
|
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|
Current Assets: |
|
|
|
|
|
Cash | $ | 509,615 |
| $ | 111,462 |
Notes receivable |
| 120,182 |
|
| - |
Accounts receivable - non-related parties |
| 3,639,030 |
|
| 636,413 |
- related parties |
| 340,026 |
|
| 119,543 |
Inventory |
| 3,379,146 |
|
| 226,839 |
Advances to suppliers - non-related parties |
| 129,423 |
|
| 3,164 |
- related parties |
| 269,498 |
|
| 206,194 |
Prepaid expenses and other current assets |
| 269,495 |
|
| 20,592 |
Total Current Assets |
| 8,656,415 |
|
| 1,324,207 |
|
|
|
|
|
|
Property, plant and equipment, net |
| 7,508,637 |
|
| - |
Intangible assets, net |
| 1,496,399 |
|
| - |
Deferred tax assets |
| 54,361 |
|
| - |
Total Assets | $ | 17,715,812 |
| $ | 1,324,207 |
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LIABILITIES AND STOCKHOLDERS'EQUITY |
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Current Liabilities: |
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Short-term bank loan | $ | 2,618,296 |
| $ | - |
Accounts payable - non-related parties |
| 2,732,327 |
|
| 264,171 |
- related parties |
| - |
|
| 248,543 |
Advance from customers |
| 114,158 |
|
| 59,546 |
Due to related parties |
| 2,105,338 |
|
| 212,557 |
Accrued expenses and other current liabilities |
| 368,319 |
|
| 125,733 |
Total Current Liabilities |
| 7,938,438 |
|
| 910,550 |
|
|
|
|
|
|
Deferred tax liability |
| - |
|
| 15,242 |
Total Liabilities |
| 7,938,438 |
|
| 925,792 |
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COMMITMENT AND CONTINGENCIES |
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Stockholders' Equity: |
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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 March 31, 2019 and June 30, 2018, respectively |
| 11,400 |
|
| 9,900 |
Additional paid in capital |
| 8,829,487 |
|
| 237,246 |
Retained earnings |
| 539,866 |
|
| 142,819 |
Accumulated other comprehensive income |
| (45,840) |
|
| 7,950 |
Total Stockholders' Equity attributable tothe Company |
| 9,335,413 |
|
| 398,415 |
Noncontrolling interest |
| 441,961 |
|
| - |
Total Stockholders' Equity |
| 9,777,374 |
|
| 398,415 |
Total Liabilities and Stockholders' Equity | $ | 17,715,812 |
| $ | 1,324,207 |
IONIX TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|
| For the Years Ended |
|
| June 30, |
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| 2019 |
| 2018 |
|
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|
|
|
|
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Revenues | $ | 12,348,492 |
| $ | 6,422,807 |
|
|
| - |
|
| - |
|
Cost of revenues |
| 10,153,217 |
|
| 5,681,912 |
|
|
|
|
|
|
|
|
Gross profit |
| 2,195,275 |
|
| 740,895 |
|
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Operating expenses |
|
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Selling, general and administrative expense |
| 1,255,523 |
|
| 270,074 |
|
Research and development expense |
| 323,309 |
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Total operating expenses |
| 1,578,832 |
|
| 270,074 |
|
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Income from operations |
| 616,443 |
|
| 470,821 |
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Other income (expense): |
|
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Interest expense, net of interest income |
| (69,371) |
|
| - |
|
Total other income (expense) |
| (69,371) |
|
| - |
|
|
|
|
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Income before income tax provision |
| 547,072 |
|
| 470,821 |
|
Income tax provision |
| 150,025 |
|
| 144,561 |
|
Net income |
| 397,047 |
|
| 326,260 |
|
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Other comprehensive income (loss) |
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Foreign currency translation adjustment |
| (53,790) |
|
| 10,101 |
|
Comprehensive income | $ | 343,257 |
| $ | 336,361 |
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Income Per Share - Basic and Diluted | $ | 0.00 |
| $ | 0.00 |
|
Weighted average number of common shares outstanding - Basic and Diluted |
| 106,605,740 |
|
| 99,003,000 |
|
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IONIX TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS |
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| For the Years Ended June 30, |
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CASH FLOWS FROM OPERATING ACTIVITIES | 2019 |
| 2018 |
|
|
Net income |
| $ | 397,047 | $ | 326,260 |
|
|
Adjustments required to reconcile net income to net cash provided by (used in) operating activities: |
|
Depreciation and amortization |
|
| 372,896 |
| - |
|
|
Deferred taxes |
|
| (14,767) |
| 15,062 |
|
|
Changes in operating assets and liabilities: |
|
|
Accounts receivable - non related parties | (106,621) |
| (333,204) |
|
|
Accounts receivable - related parties | (229,275) |
| (118,134) |
|
|
Inventory | (419,953) |
| (170,376) |
|
|
Advances to suppliers - non-related parties | 39,913 |
| 116,919 |
|
|
Advances to suppliers - related parties | (72,405) |
| (203,764) |
|
|
Prepaid expenses and other current assets | (191,410) |
| (9,526) |
|
|
Accounts payable - non-related parties | (1,254,803) |
| 163,543 |
|
|
Accounts payable - related parties | (196,373) |
| 83,870 |
|
|
Advance from customers | 33,868 |
| (14,486) |
|
|
Accrued expenses and other current liabilities | 95,058 |
| 29,223 |
|
|
Net cash provided by (used in) operating activities | (1,546,825) |
| (114,613) |
|
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CASH FLOWS FROM INVESTING ACTIVITIES |
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Other receivables | - |
| 149,354 |
|
|
Acquisition of property, plant and equipment | (40,838) |
| - |
|
|
Acquisition of intangible assets | (1,670) |
|
|
|
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Cash received from acquisition | 687,591 |
| - |
|
|
Cash received from subscription receivable in relation to acquisition | 1,439,669 |
|
|
|
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Net cash provided by investing activities | 2,084,752 |
| 149,354 |
|
|
|
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CASH FLOWS FROM FINANCING ACTIVITIES |
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|
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Notes receivable | (53,865) |
| - |
|
|
Return of capital | (58,155) |
| - |
|
|
Proceeds from (repayment of) loans from related parties | (30,511) |
| (113,036) |
|
|
Net cash provided by (used in) financing activities | (142,531) |
| (113,036) |
|
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Effect of exchange rate changes on cash | 2,757 |
| 2,990 |
|
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|
|
|
|
|
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Net increase in cash | 398,153 |
| (75,305) |
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Cash, beginning of period | 111,462 |
| 186,767 |
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Cash, end of period | $ | 509,615 | $ | 111,462 |
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Supplemental disclosure of cash flow information: |
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Cash paid for income tax | $ | 267,330 | $ | 44,712 |
|
|
Cash paid for interests | $ | 70,419 | $ | - |
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Non-cash investing activities |
|
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Issuance of 15,000,000 shares of common stock in exchange for 95.14% ownership rights of a variable interest entity | $ | 8,651,896 |
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