Ionix Technology, Inc. Announces First Quarter 2020 Financial Results
LAS VEGAS, Nov. 14, 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 three months ended September 30, 2019.
First Quarter 2020 Financial Highlights:
-- Total revenues increased by 192 % from the three months ended September
30, 2018 to three months ended September 30, 2019.
-- Gross profit increased by 394% from the three months ended September 30,
2018 to three months ended September 30, 2019.
-- Net income increased by 302% from the three months ended September 30,
2018 to three months ended September 30, 2019.
-- Gross profit margin maintained at 19.0% during the three months ended
September 30, 2019 as compared to 11.3% for the three months ended
September 30, 2018.
"The fiscal year 2020 is off to a good start. With another strong quarter of operations, Ionix Technology is building a solid track record of execution," said Mr. Cheng Li, Chairman of Ionix Technology. "The first quarter performance speaks to our differentiated market position, as we invest continuously in innovation to create compelling solutions for our customers."
Mr. Li continued, "With a broad and growing product portfolio, Ionix Technology remains well-positioned to benefit from the long-term growth of the photoelectric display industry."
Revenue
During the three months ended September 30, 2019 and 2018, total revenues was $7,500,330 and $2,568,888, respectively. The total revenues increased by 192 % from the three months ended September 30, 2018 to three months ended September 30, 2019.
The increase in revenues for the three months ended September 30, 2019 compared to 2018 can be attributed to our expanded operations in the fields of LCM in the PRC by the acquisition of Fangguan Electronics on December 27, 2018.
Cost of Revenue
During the three months ended September 30, 2019 and 2018, the total cost of revenue was $6,073,104 and $2,279,723, respectively. The total cost of revenues increased by 166% from the three months ended September 30, 2018 to three months ended September 30, 2019.
The increase in cost of revenue for the three months ended September 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 on December 27, 2018.
Gross Profit
During the three months ended September 30, 2019 and 2018, the gross profit was $1,427,226 and $289,165 respectively. The gross profit increased by 394% from the three months ended September 30, 2018 to three months ended September 30, 2019. Gross profit margin maintained at 19.0% during the three months ended September 30, 2019 as compared to 11.3% for the three months ended September 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 17%).
Selling, General and Administrative Expenses
During the three months ended September 30, 2019 and 2018, selling, general and administrative expenses were $381,428 and $61,586, respectively.
The difference can be attributed to the depreciation and amortization expenses, payroll expenses, professional fees and other expenses incurred during the three months ended September 30, 2019 after Fangguan Electronics became a variable interest entity of the Company on December 27, 2018.
Research and Development Expenses
During the three months ended September 30, 2019 and 2018, research and development expenses were $222,823 and $0, respectively.
The difference can be attributed to the research and development expenses incurred during the three months ended September 30, 2019 after Fangguan Electronics became a variable interest entity of the Company on December 27, 2018.
Net Income
During the three months ended September 30, 2019 and 2018, net income was $711,276 compared with $177,153 respectively.
The difference can be attributed to increase in gross profits netting off by the increase of expenses during the three months ended September 30, 2019.
Cash and Financial Position
As of September 30, 2019, the Company had cash and cash equivalents of $ 1,900,785, compared to $ 509,615 as of June 30, 2019.
The Company had a working capital of $ 1,504,464 as of September 30, 2019 compared to working capital of $717,977 as of June 30, 2019.
During the three months ended September 30, 2019 and 2018, net cash provided by operating activities was $1,217,629 and $ 57,609, respectively. The change was mainly due to the increase in the net income, increased net cash flows from operating assets and liabilities of $370,051 and an increase resulting from adjustments to net income for non-cash items, which increased $255,846 in 2019 compared to 2018.
During the three months ended September 30, 2019 and 2018, net cash used in investing activities was $118,198 and $0 respectively. The change was mainly due to the cash used in the acquisition of the equipment.
During the three months ended September 30, 2019, the Company was provided by $334,455 in cash by financing activities, which was due to the repayment of loans from related parties and increase in notes receivable and convertible notes payables inflows. During the three months ended September 30, 2018, the Company was provided by $137,292 in cash for financing activities, all of which was attributable to the advances 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
(Unaudited)
September 30, 2019
June 30, 2019
ASSETS
Current Assets:
Cash and cash equivalents $1,900,785 $509,615
Notes receivable 8,180 120,182
Accounts receivable - non-related parties 4,429,747 3,639,030
- related parties 102,680 340,026
Inventory 2,921,462 3,379,146
Advances to suppliers - non-related parties 358,612 129,423
- related parties 246,249 269,498
Prepaid expenses and other current assets 226,847 269,495
Total Current Assets 10,194,562 8,656,415
Property, plant and equipment, net 7,139,961 7,508,637
Intangible assets, net 1,432,017 1,496,399
Deferred tax assets 15,445 54,361
Total Assets $18,781,985 $17,715,812
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Short-term bank loan $2,518,081 $2,618,296
Accounts payable 3,297,564 2,732,327
Advance from customers 328,514 114,158
Convertible notes payable, net of debt discount 69,503
and loan cost
Derivative liability 154,239
Due to related parties 2,035,995 2,105,338
Accrued expenses and other current liabilities 286,202 368,319
Total Current Liabilities 8,690,098 7,938,438
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 11,400
114,003,000 shares issued and outstanding
Additional paid in capital 8,849,509 8,829,487
Retained earnings 1,251,142 539,866
Accumulated other comprehensive loss (462,625) (45,840)
Total Stockholders' Equity attributable to the 9,649,926 9,335,413
Company
Noncontrolling interest 441,961 441,961
Total Stockholders' Equity 10,091,887 9,777,374
Total Liabilities and Stockholders' Equity $18,781,985 $17,715,812
IONIX TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
For the Three Months Ended
September 30,
2019 2018
---
Revenues $7,500,330 $2,568,888
Cost of
Revenues 6,073,104 2,279,723
Gross
profit 1,427,226 289,165
Operating expenses
Selling,
general
and
administrative
expense 381,428 61,586
Research
and
development
expense 222,823
---
Total
operating
expenses 604,251 61,586
---
Income
from
operations 822,975 227,579
Other income (expense):
Interest
expense,
net of
interest
income (56,863)
Subsidy
income 42,787
Change
in fair
value
of
derivative
liability 15,889
---
Total
other
income 1,813
---
Income
before
income
tax
provision 824,788 227,579
Income
tax
provision 113,512 50,426
---
Net
income 711,276 177,153
---
Other comprehensive income (loss)
Foreign
currency
translation
adjustment (416,785) (7,922)
---
Comprehensive
income $294,491 $169,231
===
Income
Per
Share -
Basic
and
Diluted $0.01 $0.00
Weighted
average
number
of
common
shares
outstanding
-Basic
and
Diluted 114,003,000 99,003,000
IONIX TECHNOLOGY, INC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Three Months Ended June
30,
2019 2018
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income $
711,276 $
177,153
Adjustments required to
reconcile net income to net
cash provided by
operating activities:
Depreciation and amortization 208,314
Deferred taxes 37,553 (4,555)
Change in fair value of
derivative liability (15,889)
Amortization of debt discount 21,313
Changes in operating assets and
liabilities:
Accounts receivable - non-
related parties (948,146) 165,960
Accounts receivable -related
parties 228,709 118,902
Inventory 334,753 (284,534)
Advances to suppliers - non-
related parties (238,711) 878
Advances to suppliers -related
parties 13,186 (64,737)
Prepaid expenses and other
current assets 33,140 (9,530)
Accounts payable - non-related
parties 682,885 (151,889)
Accounts payable -related
parties 154,452
Advance from customers 222,994 (24,927)
Accrued expenses and other
current liabilities (73,748) (19,564)
Net cash provided by operating
activities 1,217,629 57,609
CASH FLOWS FROM INVESTING
ACTIVITIES
Acquisition of property, plant
and equipment (118,198)
Net cash used in investing
activities (118,198)
CASH FLOWS FROM FINANCING
ACTIVITIES
Notes receivable 109,498
Proceeds from issuance of
convertible notes payable 238,340
Proceeds from (repayment of)
loans from related parties (13,383) 137,292
Net cash provided by financing
activities 334,455 137,292
Effect of exchange rate changes
on cash (42,716) (1,780)
Net increase in cash and cash
equivalents 1,391,170 193,121
Cash and cash equivalents,
beginning of period 509,615 111,462
Cash and cash equivalents, end
of period $1,900,785 $304,583
Supplemental disclosure of cash
flow information:
Cash paid for income tax $35,312 $70,558
Cash paid for interests $34,247
$ -
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SOURCE Ionix Technology, Inc.
