Ionix Technology, Inc. Announces Fourth Quarter 2018 Financial Results

SHENZHEN, China, Feb. 19, 2019 /PRNewswire/ -- Ionix Technology, Inc. ("IINX") (OTCQB: IINX), By incorporating fine quality enterprises and innovating forward-looking technologies,  Ionix Technology, Inc has become a business aggregator in Chinese domestic photoelectric display and smart energy fields. Currently, the Company owns four production bases which are Baileqi Electronic, Lisite Science, Fangguan Photoelectric and Shizhe New Energy. today announced its financial results of the fourth quarter ended December 31, 2018.

SUMMARY FINANCIALS

For the Three Months Ended  December 31,(unaudited) 


Q4 2018

Q4 2017

CHANGE

Revenues - Non-related parties    

$2,229,489

$750,944


Revenues - Related parties

$22,059

-


Total Revenues

$2,251,548

$750,944

200%

Cost of revenues - Non-related parties

$541,912

$64,971


Related parties

$1,414,348

$607,020


Total Cost of Revenues

$1,956,260

$671,991

191%

Gross profit

$295,288

$78,953


 

 For the Six Months Ended December 31, (unaudited)


6-Month 2018

6-Month 2017

CHANGE

Revenues - Non-related parties    

$4,704,539

$1,132,485


Revenues - Related parties

115,897

-


Total Revenues

$4,820,436

$1,132,485

326%

Cost of revenues - Non-related parties

1,041,824

$113,903


Related parties

3,194,159

$878,671


Total Cost of Revenues

$4,235,983

$992,574

327%

Gross profit

$584,453

$139,911


Revenue    

During the three months ended December 31, 2018 and 2017, total revenue was $2,251,548 and $750,944, respectively. The total revenues increased by 200% from the three months ended December 31, 2017 to three months ended December 31, 2018.

During the six months ended December 31, 2018 and 2017, revenue was $4,820,436 and $1,132,485, respectively. The total revenues increased by 326% from the six months ended December 31, 2017 to the six months ended December 31, 2018.

The increase in revenue for the three and six months ended December 31, 2018 compared to 2017 can be attributed to our expanded operations in the fields of LCD screens in the PRC during the three and six months ended December 31, 2018.

Cost of Revenue

Cost of revenue included the cost of raw materials and finished products purchased and the sub-contracting processing fee paid to the processing factories which were owned by our shareholders, pursuant to the manufacturing agreement between the Company's subsidiaries in PRC and processing factories.

During the three months ended December 31, 2018, cost of revenue was $541,912 for non-related parties and $1,414,348 for related parties. In comparison, during the three months ended December 31, 2017, the cost of revenues was $64,971 for non-related parties and $607,020 for related parties. The total cost of revenues increased by 191% from the three months ended December 31, 2017 to three months ended December 31, 2018.

During the six months ended December 31, 2018, cost of revenue was $1,041,824 for non-related parties and $3,194,159 for related parties. In comparison, during the six months ended December 31, 2017, cost of revenue was $113,903 for non-related parties and $878,671 for related parties. The total cost of revenues increased by 327% from the six months ended December 31, 2017 to six months ended December 31, 2018.

The increase in cost of revenue for the three and six months ended December 31, 2018 compared to 2017 was attributed to our expanded operations in the fields of LCD screens in the PRC during the three and six months ended December 31, 2018.

Gross Profit

There were no significant fluctuations in our gross profit margin. During the three months ended December 31, 2018 and 2017, gross profit was $295,288 and $78,953, respectively. Our gross profit margin maintained at 13% during the three months ended December 31, 2018 as compared to 11% for the three months ended December 31, 2017. During the six months ended December 31, 2018 and 2017, gross profit was $584,453 and $139,911, respectively. Our gross profit margin maintained at 12% for the six months ended both December 31, 2018 and December 31, 2017.

Net Income (Loss)

During the three months ended December 31, 2018 and 2017, our net income was $6,854 compared with $9,714, respectively.

During the six months ended December 31, 2018 and 2017, our net income was $184,007 compared with a net loss of $490, respectively.

The difference can be attributed to increase in gross profits during the three and six months ended December 31, 2018.

Business Developments

In  June  2018,  the  Board  of  Directors  of  Ionix  Technology,  Inc.  (the  "Company")  approved and  ratified  the  incorporation  of  Dalian  Shizhe  New Energy Technology Co., Ltd. And the Company ratified and approved the appointment of Mr. Liang Zhang as President and a member of the board of directors of Dalian Shizhe New Energy Technology Co., Ltd . Dalian Shizhe New Energy Technology Co., Ltd is a wholly owned subsidiary of Well Best International Investment Limited and an indirect wholly-owned subsidiary of Ionix Technology, Inc.

In December 2018, Ionix Technology, Inc.By entering into specific VIE Transaction Documents, this acquisition absorbed 95.14% of total equity interest of Changchun Fangguan.

Mr. Bailiang Yang, Chairman of Board of Directors of IINX stated, "2018 was ended with a favorable finale by the outstanding business performance in Quarter 4. The high dedication of our team, efficient execution of the company's strategy  and the successful acquisition of Changchun Fangguan have delivered healthy profit margin growth to the whole company and various business divisions. Here, I would like to express my sincere thanks to all our staff for their services to our customers and the performance growth achieved."

Mr. Bailiang Yang further stated, "Looking ahead to 2019, we believe our company has all the elements needed to continuously maintain strong financial performance. We will continue to absorb and integrate high quality enterprises and forward-looking technology in the fields of photoelectric display and smart energy, expand market share, provide better, more convenient and more cost-effective services and bring long-term growth and stable dividend income for shareholders."

About Ionix Technology, Inc.

Cambridge Projects Inc. was formed in March, 2011. On February 4th 2016, with approval of Securities and Exchange Commission (SEC) in connection with Financial Industry Regulatory Authority (FINRA), the company amended its name from "Cambridge Projects Inc." to "Ionix Technology, Inc." (IINX) through restructuring and is based in New York. IINX through its two subsidiaries, Well Best International Investment Limited and Welly Surplus International Limited,initially invest in four operating subsidiaries namely Shenzhen Baileqi Electronic Technology Co., Ltd, Lisite Science Technology (Shenzhen) Co., Ltd, Changchun Fangguan Photoelectric Display Technology Co., Ltd and Dalian Shizhe New Energy Technology Co., Ltd. On December 27, 2018, Changchun Fangguan Phototoelectric Display Technology Co., Ltd , which is a wholly owned subsidiary of IINX, officially announced that it has entered into VIE transaction documents with Changchun Fangguan Electronics Technology Co., Ltd, and obtained its de facto control. IINX has not only converged a range of various products, includes intelligent electronic devices, on-board hydrogen fuel batteries and photoelectric display, but also has achieved a multi-industrial combination across high-end materials, micro-electronics, fine chemicals, modern optics and so forth.

To learn more, please visit our new website: www.iinx-tech.com.

Safe Harbor

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.

For more information, please contact:

Yubao Liu 
+86-159-4540-0218 
Email:  liuyubao11_iinx@163.com

 

(financial tables follow)

IONIX TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


ASSETS


December 31, 2018


June 30, 2018







Current Assets:







Cash


$

824,874


$

111,462

Notes receivable



96,581



-

Accounts receivable - non-related parties



3,220,848



636,413

- related parties



160,647



119,543

Inventory, net



3,415,851



226,839

Advances to suppliers - non-related parties



168,519



3,164

- related parties



-



206,194

Prepaid expenses and other current assets



78,047



20,592

Total Current Assets



7,965,367



1,324,207








Property, plant and equipment



6,633,132



-

Intangible assets



4,516,173



-

Deferred tax assets



58,071



-

Total Assets


$

19,172,743


$

1,324,207








LIABILITIES AND STOCKHOLDERS' EQUITY







Current Liabilities:







Short-term bank loan


$

2,622,683


$

-

Accounts payable - non-related parties



3,715,537



264,171

- related parties



55,829



248,543

Advance from customers



63,468



59,546

Due to related parties



6,771,273



212,557

Accrued expenses and other current liabilities



298,952



125,733

Total Current Liabilities



13,527,742



910,550








Deferred tax liability



-



15,242

Total Liabilities



13,527,742



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







December 31, 2018 and June 30, 2018, respectively



11,400



9,900

Additional paid in capital



5,235,746



237,246

Retained earnings



326,826



142,819

Accumulated other comprehensive income (loss)



(20,011)



7,950

Total Stockholders' Equity attributable to the Company



5,554,461



398,415

Noncontrolling interest



90,540



-

Total Stockholders' Equity



5,645,001



398,415

Total Liabilities and Stockholders' Equity


$

19,172,743


$

1,324,207

 

 

IONIX TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)



For the Three Months Ended 


For the Six Months Ended 


December 31,


December 31,


2018


2017


2018


2017













Revenues - Non-related parties

$

2,229,489


$

750,944


$

4,704,539


$

1,132,485

Revenues - Related parties


22,059



-



115,897



-

Total Revenues


2,251,548



750,944



4,820,436



1,132,485













  Cost of revenues - Non-related parties


541,912



64,971



1,041,824



113,903

                              - Related parties


1,414,348



607,020



3,194,159



878,671

  Total Cost of Revenues


1,956,260



671,991



4,235,983



992,574













  Gross profit


295,288



78,953



584,453



139,911













Operating expenses












  Selling, general and administrative expense


232,917



61,475



295,906



131,028

Total operating expenses


232,917



61,475



295,906



131,028













Income from operations


62,371



17,478



288,547



8,883













Other income


16,285



-



17,688



-













Income before income tax provision


78,656



17,478



306,235



8,883













Income tax provision


71,802



7,764



122,228



9,373













Net income (loss)


6,854



9,714



184,007



(490)













Other comprehensive income (loss)












  Foreign currency translation adjustment


(20,039)



4,931



(27,961)



8,619













Comprehensive income (loss)

$

(13,185)


$

14,645


$

156,046


$

8,129

























Income (Loss) Per Share - Basic and Diluted

$

0.00


$

0.00


$

0.00


$

(0.00)

Weighted average number of common shares outstanding - Basic and Diluted


99,655,174



99,003,000



99,329,087



99,003,000


 

 

IONIX TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)




For the Six Months Ended



December 31,

CASH FLOWS FROM OPERATING ACTIVITIES


2018


2017







Net income (loss)


$

184,007


$

(490)

Adjustments required to reconcile net income (loss) to net cash used in







operating activities:







     Deferred taxes



(14,884)



-

Changes in operating assets and liabilities:







     Accounts receivable - non related parties



144,264



214,351

     Accounts receivable - related parties



(45,987)



-

     Inventory



(294,434)



(197,363)

     Advances to suppliers - non-related parties



355



120,004

     Advances to suppliers - related parties



201,357



(89,483)

     Prepaid expenses



3,925



(11,277)

     Accounts payable - non-related parties



(257,973)



12,272

     Accounts payable - related parties



(138,955)



(117,978)

     Advance from customers



(17,820)



(39,455)

     Accrued expenses and other current liabilities



27,524



(49,342)

Net cash used in operating activities



(208,621)



(158,761)








CASH FLOWS FROM INVESTING ACTIVITIES







     Other receivables



-



148,947

     Cash received from acquisition



687,591



-

Net cash provided by investing activities



687,591



148,947








CASH FLOWS FROM FINANCING ACTIVITIES







     Notes receivable



(29,518)



-

     Acquisition of office equipment



(2,163)



-

     Proceeds from (repayment of) loans from related parties



269,974



(109,413)

Net cash provided by (used in) financing activities



238,293



(109,413)








Effect of exchange rate changes on cash



(3,851)



3,727








Net increase (decrease) in cash



713,412



(115,500)








Cash, beginning of period



111,462



186,767








Cash, end of period


$

824,874


$

71,267








Supplemental disclosure of cash flow information:







     Cash paid for income tax


$

141,749


$

5,163

     Cash paid for interests


$

-


$

-








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


$

-

Cision View original content:http://www.prnewswire.com/news-releases/ionix-technology-inc--announces-fourth-quarter-2018-financial-results-300797760.html

Related Links :

http://www.iinx-tech.com

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