omniture

Newater Technology, Inc. Announces Year 2019 Audited Financial Results

2020-06-06 09:20 11823

NEW YORK, June 6, 2020 /PRNewswire/ -- Newater Technology, Inc. (NASDAQ: NEWA) (''NEWA,'' ''we,'' ''our'' or the ''Company''), a leading company specializing in development, production and application of DTRO equipment and systems used in waste water filtration, today announced its financial results for the year ended December 31, 2019.

The year ended December 31, 2019 Financial Highlights (all comparisons to the year ended December 31, 2018):

Revenues decreased by 20% from $47 million to $37.6 million in 2019, the decrease in revenues for the year ended December 31, 2019 was mainly due to in 2017-2018, the revenue of Laixi operation project accounted for a large proportion of the whole year's revenue. In 2019, there was no such operation project that generated as much revenue.

Cost of revenues decreased by 17% from $26 million to $21.7 million in 2019, the decrease in cost of revenues directly corresponded to the decrease in revenue during the same year.

Gross profit decreased by 24% from $20.9 million to $15.9 million in 2019, while the gross profit margin was 42% in 2019.

Net income (before currency translation loss) decreased by 40% from $7.2 million to $4.3 million in 2019, and the net profit margin in 2019 was 11.48%.

Total assets increased by 26% from $62 million to $78 million in 2019 mainly driven by the new production facility and production line completed during the year.

Basic earnings per share was $0.40 in 2019, compared to $0.67 in 2018 and $0.26 in 2017.

Mr. Yuebiao Li, the Company's CEO, commented "We are pleased with our accomplishments in 2019, we moved our business office to a new industrial park, management has focused its attention to strategic adjustments of operations and administration, invested more effort in an innovative team for the construction of new products, established a new R & D laboratory, completed our new automatic DTRO membrane production line to achieve high production standard, instituted a chief engineer responsible for product quality in each of the industries we serve, and developed a new patented process package."

In 2020, we will continue to make more efforts to skillfully apply our products to more wastewater treatment fields and undertake larger projects, in order to achieve company's eternal goal of "renewable resources (New Water) recycling".

About Newater Technology, Inc.

Founded in 2012 and headquartered in Yantai, China, Newater, operating its business through its wholly owned subsidiary Yantai Jinzheng Eco-Technology Co. Ltd., specializes in the development, manufacture and sale of DTRO (Disk Tube Reverse Osmosis) and DTNF (Disk Tube Nano-Filtration) membranes for waste water treatment, recycling and discharge. Newater provides integrated technical solutions in engineering support and installation, technical advice and services, and, and other project-related solutions to turn wastewater into valuable clean water. Newater also provides wastewater treatment services, such as landfill leachate treatment and purification services.

More information about the Company can be found at www.dtNEWA.com.

The Company's products can be used across a wide spectrum of industries, including:

  • Landfill leachate; 
  • Wastewater from coal mines;
  • Industrial park common effluent; and
  • Briny wastewater.

More information about the Company can be found at: www.dtNEWA.com

Notice

Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may", "will", "intend", "should", "believe", "expect", "anticipate", "project", "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Specifically, the Company's statements regarding its ability to apply its products to more industries and obtain larger products are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the water filtration industry in China; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

 

 

NEWATER TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 


December 31, 
2019


December 31, 
2018





ASSETS






Current assets






Cash and cash equivalents

$

9,944,765


$

2,461,501

Restricted cash, current


4,021,177



6,033,482

Accounts receivable, net


11,293,625



10,064,847

Accounts receivable - related parties, net


2,392,087



1,948,009

Notes receivable


360,505



6,999

Inventories


13,715,369



13,762,959

Deposit - related party


-



10,180

Deferred cost of revenue


221,737



343,090

Advances to suppliers and other current assets, net


4,699,755



4,904,290

Total current assets


46,649,020



39,535,357







Retentions receivable, non-current


734,140



344,856

Property, plant and equipment, net


24,611,862



18,753,340

Land use right, net


2,008,096



2,078,240

Operating lease right-of-use assets, net


141,016



-

Deferred tax assets


-



604,064

Deposit on loan agreement


918,643



436,275

Long-term investments


2,997,419



-

Total assets

$

78,060,196


$

61,752,132







LIABILITIES AND SHAREHOLDERS' EQUITY






Current liabilities






Accounts payable and bank acceptance notes to vendors

$

8,099,529


$

5,353,538

Accounts payable - related parties


5,225,004



3,389,148

Loans due within one year


11,809,449



10,867,111

Advances from customers


5,522,913



2,953,595

Advances from customers - related parties


7,254,968



586,719

Income tax payables


322,419



732,699

Accrued expenses and other payables


6,971,505



6,375,800

Operating lease liabilities, current


56,852



-

Deferred income


43,061



-

Total current liabilities


45,305,700



30,258,610







Deferred Income, non-current


43,061



-

Deferred tax liabilities


288,687



-

Operating lease liabilities, non-current


68,420



-

Long term loans, less current portion and unamortized debt issuance costs


1,377,217



4,449,889

Total non-current liabilities


1,777,385



4,449,889

Total liabilities


47,083,085



34,708,499







Shareholders' equity






Common shares ($0.001 par value, 200,000,000 shares authorized,10,809,000 shares issued and outstanding as of December 31, 2019 and December 31, 2018)


10,809



10,809

Additional paid-in capital


26,303,348



15,059,181

Statutory reserves


2,267,219



1,765,711

Retained earnings


3,946,021



11,380,149

Accumulated other comprehensive loss


(1,550,286)



(1,172,217)

Total shareholders' equity


30,977,111



27,043,633

Total liabilities and shareholders' equity

$

78,060,196


$

61,752,132

 

 

 

NEWATER TECHNOLOGY, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

 


For the Years ended December 31,


2019


2018


2017







Net revenues

$

23,716,978


$

25,973,963


$

16,192,503

Net revenues from related parties


13,857,014



21,066,741



9,146,994

        Total revenues


37,573,992



47,040,704



25,339,497

Cost of revenues


20,233,998



20,474,072



17,199,866

Cost of revenues from related parties


1,450,627



5,669,252



-

        Total cost of revenues


21,684,625



26,143,324



17,199,866

        Gross profit


15,889,367



20,897,380



8,139,631

Operating expenses:









Selling, general and administrative


10,148,039



12,025,924



5,452,349

        Total operating expenses


10,148,039



12,025,924



5,452,349

Income from operations


5,741,328



8,871,456



2,687,282

Interest expense


1,087,051



658,290



242,707

Interest income


(38,328)



(26,632)



(112,592)

Government grants


(946,164)



(627,748)



(513,538)

Investment loss


17,023



-



-

Other expenses (income)


(153,546)



(1,162)



3,956

        Total other expenses (income)


(33,964)



2,748



(379,467)

Income before income taxes provisions


5,775,292



8,868,708



3,066,749

Income tax provisions


1,463,745



1,657,279



475,818

Net income

$

4,311,547


$

7,211,429


$

2,590,931

Other comprehensive income (loss)









Foreign currency translation adjustment


(378,069)



(1,159,084)



535,810

Total comprehensive income

$

3,933,478


$

6,052,345


$

3,126,741










Earnings per common share









Basic

$

0.40


$

0.67


$

0.26

Diluted

$

0.40


$

0.67


$

0.26

Weighted average common shares outstanding









Basic


10,809,000



10,809,000



9,864,479

Diluted


10,809,000



10,809,000



9,864,479

 

 

NEWATER TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY


Number of Shares


Common Shares


Additional Paid-in Capital


Retained Earnings


Statutory Reserves


Accumulated Other Comprehensive Loss


Total Shareholder's Equity

Balance, January 1, 2017


9,199,000


$

9,199


$

7,949,466


$

2,960,698


$

382,802


$

(548,943)


$

10,753,222

Net income











2,590,931









2,590,931

Statutory reserves











(322,896)



322,896






-

Issuance of common shares for cash


1,610,000



1,610



7,109,715












7,111,325

Foreign currency translation adjustment

















535,810



535,810

Balance, December 31, 2017


10,809,000


$

10,809


$

15,059,181


$

5,228,733


$

705,698


$

(13,133)


$

20,991,288

Net income











7,211,429









7,211,429

Statutory reserves











(1,060,013)



1,060,013






-

Foreign currency translation adjustment

















(1,159,084)



(1,159,084)

Balance, December 31, 2018


10,809,000


$

10,809


$

15,059,181


$

11,380,149


$

1,765,711


$

(1,172,217)


$

27,043,633

Net loss











4,311,547









4,311,547

Statutory reserves











(501,508)



501,508






-

Capital increase from retained earnings








11,244,167



(11,244,167)










Foreign currency translation adjustment

















(378,069)



(378,069)

Balance, December 31, 2019


10,809,000


$

10,809


$

26,303,348


$

3,946,021


$

2,267,219


$

(1,550,286)


$

30,977,111

 

 

NEWATER TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


For the Years Ended December 31,


2019


2018


2017

Cash flows from operating activities









Net income

$

4,311,547


$

7,211,429


$

2,590,931

Adjustments to reconcile net income to net cash used in operating activities:









Loss from equity method investment


17,023



-



-

Depreciation and amortization expense


1,549,296



558,327



233,493

Deferred income taxes


892,548



(118,199)



(312,997)

Bad debt expense


1,243,709



280,228



229,707

Amortization of debt issuance costs


324,221



103,772



-

Noncash lease expense


41,935



-



-

Loss on disposal of property, plant and equipment


1,367



13,256



-

Changes in assets and liabilities:









Accounts receivable, net


(1,509,728)



(5,327,278)



(5,076,425)

Accounts receivable - related parties, net


(1,103,104)



(1,427,078)



2,821,621

Notes receivable


(356,648)



(7,276)



70,000

Inventories


(2,923,465)



(5,762,750)



(4,923,400)

Deferred cost of revenue


117,910



383,382



(657,875)

Deferred cost of revenue - related party


-



1,765,856



(1,795,222)

Advances to suppliers and other current assets, net


(311,090)



(2,108,928)



(412,955)

Due from related parties


-



-



703

Retentions receivable, non-current


(397,157)



(358,505)



-

Deposit - related party


10,134



(10,583)



-

Other non-current assets


-



-



4,719

Accounts payable and bank acceptance notes to vendors


2,839,752



996,619



2,577,192

Accounts payable - related parties


1,896,054



3,269,238



248,695

Deferred income


43,433



-



(26,639)

Advances from customers


2,630,143



2,420,363



(220,483)

Advances from customers - related parties


6,733,465



(125,099)



719,550

Due to related parties


-



-



5,102

Deferred income, non-current


43,433



-



-

Operating lease liabilities


(76,752)



-



-

Income tax payables


(404,231)



267,988



144,944

Accrued expenses and other payables


(2,322,199)



(4,481,539)



589,638

Net cash provided by (used in) operating activities


13,291,596



(2,456,777)



(3,189,701)

Cash flows from investing activities









Cash paid for equity investments


(3,015,119)



-



-

Purchase of property, plant and equipment


(2,316,967)



(5,511,732)



(1,482,360)

Proceeds from disposal of property, plant and equipment


427,261



22,072



-

Advances to third party


-



-



(1,236,490)

Repayments from third party


-



-



1,236,490

Repayments from related parties


-



-



2,960

Deposit on acquisition of subsidiary


-



(200,000)



-

Net cash used in investing activities


(4,904,825)



(5,689,660)



(1,479,400)

Cash flows from financing activities









Proceeds from issuances of common shares


-



-



7,111,325

Repayment to related parties


-



(9,703)



(739,973)

Deposit on loan agreement


(503,939)



(473,698)



-

Proceeds from loans due within one year


7,454,711



11,493,557



8,805,683

Repayment of loans due within one year


(8,046,350)



(11,952,224)



(3,283,830)

Proceeds from long-term loans


6,376,169



8,631,493



-

Payment of debt issuance costs


(335,938)



(284,219)



-

Repayment of long-term loans


(7,736,415)



(730,595)



-

Net cash provided by (used in) financing activities


(2,791,762)



6,674,611



11,893,205

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash


(124,050)



(404,956)



222,973

Net change in cash, cash equivalents and restricted cash


5,470,959



(1,876,782)



7,447,077

Cash, cash equivalents and restricted cash, beginning of the year


8,494,983



10,371,765



2,924,688

Cash, cash equivalents and restricted cash, end of the year

$

13,965,942


$

8,494,983


$

10,371,765










Supplemental cash flow information









Cash paid for interest

$

608,431


$

689,867


$

244,753

Cash paid for income taxes

$

977,755


$

1,507,489


$

656,602










Non-cash investing and financing activities:









Properties acquired with loans

$

-


$

52,161


$

206,000

Liabilities assumed in connection with purchase of property, plant and equipment

$

2,980,582


$

2,636,770


$

7,445,478

Operating expenses paid by related parties

$

-


$

9,703


$

-

Property, plant and equipment transferred from inventories

$

2,791,339


$

1,566,314


$

-

Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets









Cash and cash equivalents

$

9,944,765


$

2,461,501


$

3,118,080

Restricted cash


4,021,177



6,033,482



7,253,685

Total cash, cash equivalents and restricted cash

$

13,965,942


$

8,494,983


$

10,371,765

 

 

Cision View original content:http://www.prnewswire.com/news-releases/newater-technology-inc-announces-year-2019-audited-financial-results-301071625.html

Source: Newater Technology, Inc.
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