Ionix Technology, Inc. Announces Third Quarter 2019 Financial Results
LAS VEGAS, May 15, 2019 /PRNewswire/ -- Ionix Technology, Inc. (OTCQB: IINX), ("Ionix Technology", "IINX" or "the Company"), a business aggregator in photoelectric display and smart energy fields, today announced its financial results for the three months ended March 31, 2019.
Third Quarter 2019 Financial Highlights:
-- Total revenues increased by 146% from the three months ended March 31,
2018 to three months ended March 31, 2019.
-- Gross profit margin was 22% during the three months ended March 31, 2019
compared to 11% for the three months ended March 31, 2018.
"The financial results for the third quarter 2019 demonstrate the benefits from our recent acquisition," said Mr. Yubao Liu, Chief Executive Officer of IINX. "Our gross profit margin grew to 22% during the three months ended March 31, 2019 compared to 11% for the three months ended March 31, 2018, driven primarily by the higher gross margin from the acquired operation of Fangguan Electronics."
Mr. Liu continued, "We are taking a persistent approach to build our business and continue to make investments in the fields of photoelectric display and smart energy. By integrating such operations we will gain competitive advantage and economic scale. The recent plan to accelerate investment in the OLED flexible screen market is a good example. We expect these efforts bring long-term growth for our shareholders."
Revenue
During the three months ended March 31, 2019 and 2018, total revenue was $2,597,052 and $1,054,933, respectively. The total revenues increased by 146% from the three months ended March 31, 2018 to three months ended March 31, 2019.
During the nine months ended March 31, 2019 and 2018, revenue was $7,417,488 and $2,187,418 respectively. The total revenues increased by 239% from the nine months ended March 31, 2018 to the nine months ended March 31, 2019.
The increase in revenue can be attributed to the expanded operations in the fields of LCD screens in the PRC by the acquisition of Fangguan Electronics in December 27, 2018.
Cost of Revenue
During the three months ended March 31, 2019, cost of revenue was $1,913,214 for non-related parties and $111,116 for related parties. In comparison, during the three months ended March 31, 2018, the cost of revenues was $38,725 for non-related parties and $906,924 for related parties. The total cost of revenues increased by 114% from the three months ended March 31, 2018 to three months ended March 31, 2019.
During the nine months ended March 31, 2019, cost of revenue was $2,955,038 for non-related parties and $3,305,275 for related parties. In comparison, during the nine months ended March 31, 2018, cost of revenue was $152,628 for non-related parties and $1,785,595 for related parties. The total cost of revenues increased by 223% from the nine months ended March 31, 2019 ended March 31, 2018 to nine months ended March 31, 2019.
The increase in cost of revenue was attributed to add additional revenue from operations in the fields of LCD screens in the PRC by the acquisition of Fangguan Electronics in December 27, 2018.
Gross Profit
During the three months ended March 31, 2019 and 2018, gross profit was $572,722 and $109,284, respectively. Gross profit margin maintained at 22% during the three months ended March 31, 2019 as compared to 11% for the three months ended March 31, 2018. During the nine months ended March 31,2019 and 2018, gross profit was $1,157,175 and $249,195, respectively. Gross profit margin maintained at 16% for the nine months ended March 31, 2019 as compared to 11% for the nine months ended March 31, 2018.
The difference can be attributed to the fact that the LCD screen products 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 22%).
Selling, General and Administrative Expenses
During the three months ended March 31, 2019, and 2018, general and administrative expenses were $550,965, and $57,927, respectively.
During the nine months ended March 31, 2019, and 2018, general and administrative expenses were $846,871 and $188,955, 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.
Net Income
During the three months ended March 31, 2019 and 2018, our net income was $21,064 compared with $45,160, respectively.
The difference can be attributed to more expenses incurred in connection with the acquisition of Fangguan Electronics on December 27, 2018.
During the nine months ended March 31, 2019 and 2018, our net income was $205,071 compared with $44,670, respectively.
The difference can be attributed to increase in gross profits during the nine months ended March 31, 2019.
Cash and Financial Position
As of March 31, 2019, the Company had cash and cash equivalents of $494,820, compared to $111,462 as of June 30, 2018. The Company had a working capital deficiency of $1,105,615 as of March 31, 2019 compared to working capital of $413.657 as of June 30, 2018.
Net cash used in operating activities was $900,588 for the nine months ended March 31, 2019, and net cash provided by operating activities was $106,547 for the nine months ended March 31, 2018.
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 four operating subsidiaries: Changchun Fangguan Photoelectric Display Technology Co., Ltd, a company which specializes in developing, designing, producing, 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, manufacturing and selling of LCD Modules (LCM) and PCBs; Lisite Science Technology (Shenzhen) Co., Ltd., a company engaged in the production of intelligent electronic devices; and Dalian Shizhe New Energy Technology Co., Ltd., a company engaged in photo-voltaic 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 meterials and back end modules of flexible folding liquid crystal displays by taking Changchun Fangguan and Shenzhen Baileqi as production bases, to seize the market share of OLED high technology.
To learn more, please visit our website: www.iinx-tech.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
(Unaudited)
March 31, 2019 June 30, 2018
ASSETS
Current Assets:
Cash $
494,820 $
111,462
Notes receivable 14,900
Accounts receivable - non-related parties 2,849,694 636,413
- related parties 140,306 119,543
Inventory 3,965,274 226,839
Advances to suppliers - non-related parties 158,965 3,164
- related parties 317,280 206,194
Prepaid expenses and other current assets 158,689 20,592
Total Current Assets 8,099,928 1,324,207
Property, plant and equipment, net 6,644,070
Intangible assets, net 4,537,698
Deferred tax assets 59,980
Total Assets $
19,341,676 $
1,324,207
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Short-term bank loan $
2,682,084
$
Accounts payable - non-related parties 3,419,426 264,171
- related parties 248,543
Advance from customers 22,312 59,546
Due to related parties 2,793,610 212,557
Accrued expenses and other current liabilities 288,111 125,733
Total Current Liabilities 9,205,543 910,550
Deferred tax liability 15,242
Total Liabilities 9,205,543 925,792
COMMITMENT AND CONTINGENCIES
Stockholders' Equity:
Preferred stock, $.0001 par value, 5,000,000 shares authorized, 500 500
5,000,000 shares issued and outstanding
Common stock, $.0001 par value, 195,000,000 shares authorized, 11,400 9,900
114,003,000 and 99,003,000 shares issued and outstanding as of March 31, 2019 and
June 30, 2018, respectively
Additional paid in capital 9,707,485 237,246
Retained earnings 347,890 142,819
Accumulated other comprehensive income 36,473 7,950
Total Stockholders' Equity attributable to the Company 10,103,748 398,415
Noncontrolling interest 32,385
Total Stockholders' Equity 10,136,133 398,415
Total Liabilities and Stockholders' Equity $
19,341,676 $
1,324,207
IONIX TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
For the Three Months Ended For the Nine Months Ended
March 31,
March 31,
2019 2018 2019 2018
Revenues - Non-related parties $
2,597,052 $
1,054,933 $
7,301,591 $
2,187,418
Revenues - Related parties 115,897
Total Revenues 2,597,052 1,054,933 7,417,488 2,187,418
Cost of revenues - Non-related parties 1,913,214 38,725 2,955,038 152,628
- Related parties 111,116 906,924 3,305,275 1,785,595
Total Cost of Revenues 2,024,330 945,649 6,260,313 1,938,223
Gross profit 572,722 109,284 1,157,175 249,195
Operating expenses
Selling, general and administrative expense 550,965 57,927 846,871 188,955
Total operating expenses 550,965 57,927 846,871 188,955
Income from operations 21,757 51,357 310,304 60,240
Other income (expense):
Other income 50,736 68,424
Interest expense, net of interest income (34,412) (34,412)
Total other income 16,324 34,012
Income before income tax provision 38,081 51,357 344,316 60,240
Income tax provision 17,017 6,197 139,245 15,570
Net income 21,064 45,160 205,071 44,670
Other comprehensive income
Foreign currency translation adjustment 56,484 10,758 28,523 19,377
Comprehensive income $
77,548 $
55,918 $
233,594 $
64,047
Income Per Share - Basic and Diluted $
0.00 $
0.00 $
0.00 $
0.00
Weighted average number of common shares outstanding -Basic and Diluted 114,003,000 99,003,000 104,148,985 99,003,000
IONIX TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended
March 31,
CASH FLOWS FROM OPERATING ACTIVITIES 2019 2018
Net income $
205,071 $
44,670
Adjustments required to reconcile net income to net cash provided by (used
in) operating activities:
Depreciation and amortization 184,172
Deferred taxes (15,732)
Changes in operating assets and liabilities:
Accounts receivable -non
related parties 593,935 250,770
Accounts receivable -related
parties (22,607)
Inventory (774,776) (96,298)
Advances to suppliers - non-
related parties 13,826 122,315
Advances to suppliers -related
parties (114,802) (234,503)
Prepaid expenses and other
current assets (75,559) (10,570)
Accounts payable - non-
related parties (645,258) 113,062
Accounts payable -related
parties (198,782) (67,397)
Advance from customers (61,014) 29,477
Accrued expenses and other
current liabilities 10,938 (44,979)
Net cash provided by (used in)
operating activities (900,588) 106,547
CASH FLOWS FROM INVESTING ACTIVITIES
Other receivables - 153,292
Acquisition of property, plant
and equipment (38,375)
Cash received from acquisition 687,591
Net cash provided by investing
activities 649,216 153,292
CASH FLOWS FROM FINANCING ACTIVITIES
Notes receivable 54,451
Return of capital to non-
controlling interests (58,155)
Proceeds from (repayment of)
loans from related parties 591,766 (94,920)
Net cash provided by (used in)
financing activities 588,062 (94,920)
Effect of exchange rate changes
on cash 46,668 18,676
Net increase in cash 383,358 183,595
Cash, beginning of period 111,462 186,767
Cash, end of period $
494,820 $
370,362
Supplemental disclosure of cash flow
information:
Cash paid for income tax $
144,124 $
10,484
Cash paid for interests $
35,250
$
Non-cash investing activities
Issuance of 15,000,000 shares
of common stock in exchange
for 95.14% $
5,000,000
$
ownership rights of a variable interest
entity
Forgiveness of related party
loan which converted to
capital $
4,471,739
$
View original content:http://www.prnewswire.com/news-releases/ionix-technology-inc-announces-third-quarter-2019-financial-results-300851020.html
SOURCE Ionix Technology, Inc.
