omniture

Ionix Technology, Inc. Announces Third Quarter 2019 Financial Results

2019-05-16 03:05 8996

LAS VEGAS, May 16, 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, 
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


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%
ownership rights of a variable interest entity

$

5,000,000

$

-


Forgiveness of related party loan which converted to capital

$

4,471,739

$

-


 

Cision View original content:http://www.prnewswire.com/news-releases/ionix-technology-inc-announces-third-quarter-2019-financial-results-300851020.html

Source: Ionix Technology, Inc.
Related Stocks:
OTC:IINX OTC:IINX OtherOTC:IINX
collection