LAS VEGAS, Nov. 15, 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:
"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. |
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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 |
- |
|||
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 5,000,000 shares issued and outstanding |
500 |
500 |
|||
Common stock, $.0001 par value, 195,000,000 114,003,000 shares issued and outstanding |
11,400 |
11,400 |
|||
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 |
|||
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 |
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IONIX TECHNOLOGY, INC. |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
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(Unaudited) |
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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 |
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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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