YANTAI, China, April 30, 2019 /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, 2018.
The year ended December 31, 2018
Financial Highlights (all comparisons to the year ended
December 31, 2017):
Revenues increased by 86% from $25
million to $47 million in
2018, evidenced by a large increase in project sales, an increased
number of customers and large-scale projects won.
Cost of revenues increased by 52% from $17 million to $26
million in 2018, due to the corresponding costs incurred in
manufacturing for the equipment sold in the same period.
Gross profit increased by 157% from $8.1
million to $20.9 million in
2018, while the gross profit margin was 44% in 2018.
Net income (before currency translation loss) increased by 178%
from $2.6 million to $7.2 million in 2018, and the net profit margin
in 2018 was 15%.
Total assets increased by 36% from $45
million to $62 million in 2018
mainly driven by the new production facility and production line
completed during the year.
Basic earnings per share was $0.67
in 2018, compared to $0.26 in 2017
and $0.28 in 2016.
Mr. Yuebiao Li, the Company's CEO, commented "In 2018, NEWA's
flexible automated production line started operation in our new
facility in Yantai. With more knowledge and experience accumulated,
we expect to maximize the output quality and quantity while
reducing costs. While fortifying our market leadership in our
existing markets of landfill leachate and industrial waste water,
NEWA also invested in technology innovation to apply DTRO
technology in the municipal waste water field.
In 2019, we will focus on executing our business strategy and
expand globally. We expect the company's operation results to
continue to grow at the current speed, which will generate
significant returns to our shareholders."
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. ("Jinzheng"), is a service provider and manufacturer of
membrane filtration equipment and related hardware and engineered
systems that are used in the treatment, recycling and discharge of
wastewater using DTRO (Disk Tube Reverse Osmosis) and DTNF (Disk
Tube Nano-Filtration) membranes. Newater also provides integrated
technical solutions in engineering support and installation,
technical advice and wastewater treatment services, and other
project-related solutions to turn wastewater into reusable
water. More information about the Company can be found at
www.dtnewa.com
The Company's core business includes:
- Wastewater treatment and reuse of high quality reclaimed
water;
- Treatment of hypersaline and highly-polluted wastewater and
achieve zero liquid discharge;
- Highly efficient treatment of landfill leachate;
- Process and recycle salts from acid or alkaline
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: 1) maximize its output quality and
quantity while reducing cost; 2) executing its business strategy to
expand globally; 3) and growth of its operations and generation of
returns to shareholders 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.
For more information, please
contact:
Newater Technology,
Inc.
|
|
Zhuo Zhang
(CFO)
Phone: +86 (535)
625-8200
Email:
CFO@dtnewa.com
|
Ike Ma (Corporate
Manager)
Phone : +86
188-6551-5312
Email :
qlma@jinzhenghb.com
|
NEWATER
TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
|
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
2,461,501
|
|
$
|
3,118,080
|
Restricted cash,
current
|
|
6,033,482
|
|
|
6,753,685
|
Accounts receivable,
net
|
|
10,064,847
|
|
|
5,442,520
|
Accounts receivable -
related parties, net
|
|
1,948,009
|
|
|
607,975
|
Notes
receivable
|
|
6,999
|
|
|
-
|
Inventories
|
|
13,762,959
|
|
|
10,279,397
|
Deposit - related
party
|
|
10,180
|
|
|
-
|
Deferred cost of
revenue
|
|
343,090
|
|
|
752,358
|
Deferred cost of
revenue - related party
|
|
-
|
|
|
1,795,222
|
Advances to suppliers
and other current assets, net
|
|
4,904,290
|
|
|
2,885,510
|
Total current
assets
|
|
39,535,357
|
|
|
31,634,747
|
|
|
|
|
|
|
Restricted cash,
non-current
|
|
-
|
|
|
500,000
|
Retentions
receivable, non-current
|
|
344,856
|
|
|
-
|
Property, plant and
equipment, net
|
|
18,753,340
|
|
|
10,449,466
|
Land use right,
net
|
|
2,078,240
|
|
|
2,243,183
|
Deferred tax
assets
|
|
604,064
|
|
|
518,251
|
Deposit on loan
agreement
|
|
436,275
|
|
|
-
|
Total
assets
|
$
|
61,752,132
|
|
$
|
45,345,647
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
bank acceptance notes to vendors
|
$
|
5,353,538
|
|
$
|
4,644,784
|
Accounts payable -
related parties
|
|
3,389,148
|
|
|
258,274
|
Loans due within one
year
|
|
10,867,111
|
|
|
9,020,697
|
Advances from
customers
|
|
2,953,595
|
|
|
660,944
|
Advances from
customers - related parties
|
|
586,719
|
|
|
747,264
|
Income tax
payables
|
|
732,699
|
|
|
501,921
|
Accrued expenses and
other payables
|
|
6,375,800
|
|
|
8,509,425
|
Total current
liabilities
|
|
30,258,610
|
|
|
24,343,309
|
|
|
|
|
|
|
Long term loans, less
current portion and unamortized debt issuance costs
|
|
4,449,889
|
|
|
11,050
|
Total
liabilities
|
|
34,708,499
|
|
|
24,354,359
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Common shares ($0.001
par value, 200,000,000 shares authorized,10,809,000 shares issued
and outstanding as of December 31, 2018 and 2017)
|
|
10,809
|
|
|
10,809
|
Additional paid-in
capital
|
|
15,059,181
|
|
|
15,059,181
|
Statutory
reserves
|
|
1,765,711
|
|
|
705,698
|
Retained
earnings
|
|
11,380,149
|
|
|
5,228,733
|
Accumulated other
comprehensive loss
|
|
(1,172,217)
|
|
|
(13,133)
|
Total
shareholders' equity
|
|
27,043,633
|
|
|
20,991,288
|
Total liabilities
and shareholders' equity
|
$
|
61,752,132
|
|
$
|
45,345,647
|
NEWATER
TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|
|
For the Years
ended December 31,
|
|
2018
|
|
2017
|
|
2016
|
|
|
|
|
|
|
Net
revenues
|
$
|
25,973,963
|
|
$
|
16,192,503
|
|
$
|
6,425,338
|
Net revenues from
related parties
|
|
21,066,741
|
|
|
9,146,994
|
|
|
5,854,383
|
Total
revenues
|
|
47,040,704
|
|
|
25,339,497
|
|
|
12,279,721
|
Cost of
revenues
|
|
20,474,072
|
|
|
17,199,866
|
|
|
7,182,081
|
Cost of revenues from
related parties
|
|
5,669,252
|
|
|
-
|
|
|
556,692
|
Total
cost of revenues
|
|
26,143,324
|
|
|
17,199,866
|
|
|
7,738,773
|
Gross
profit
|
|
20,897,380
|
|
|
8,139,631
|
|
|
4,540,948
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
12,025,924
|
|
|
5,452,349
|
|
|
3,146,521
|
Total
operating expenses
|
|
12,025,924
|
|
|
5,452,349
|
|
|
3,146,521
|
Income from
operations
|
|
8,871,456
|
|
|
2,687,282
|
|
|
1,394,427
|
Interest
expense
|
|
658,290
|
|
|
242,707
|
|
|
155,553
|
Interest
income
|
|
(26,632)
|
|
|
(112,592)
|
|
|
(5,091)
|
Government
grants
|
|
(627,748)
|
|
|
(513,538)
|
|
|
(1,750,726)
|
Other expenses
(income)
|
|
(1,162)
|
|
|
3,956
|
|
|
12,534
|
Total
other expenses (income)
|
|
2,748
|
|
|
(379,467)
|
|
|
(1,587,730)
|
Income before
income taxes provisions
|
|
8,868,708
|
|
|
3,066,749
|
|
|
2,982,157
|
Income tax
provisions
|
|
1,657,279
|
|
|
475,818
|
|
|
548,437
|
Net
income
|
$
|
7,211,429
|
|
$
|
2,590,931
|
|
$
|
2,433,720
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(1,159,084)
|
|
|
535,810
|
|
|
(383,947)
|
Total
comprehensive income
|
$
|
6,052,345
|
|
$
|
3,126,741
|
|
$
|
2,049,773
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.67
|
|
$
|
0.26
|
|
$
|
0.28
|
Diluted
|
$
|
0.67
|
|
$
|
0.26
|
|
$
|
0.28
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
10,809,000
|
|
|
9,864,479
|
|
|
8,767,738
|
Diluted
|
|
10,809,000
|
|
|
9,864,479
|
|
|
8,767,738
|
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, 2016
|
|
8,200,000
|
|
$
|
8,200
|
|
$
|
2,999,947
|
|
$
|
816,785
|
|
$
|
92,995
|
|
$
|
(164,996)
|
|
$
|
3,752,931
|
Net income
|
|
|
|
|
|
|
|
|
|
|
2,433,720
|
|
|
|
|
|
|
|
|
2,433,720
|
Capital contribution
from owners
|
|
|
|
|
|
|
|
198,917
|
|
|
|
|
|
|
|
|
|
|
|
198,917
|
Statutory
reserves
|
|
|
|
|
|
|
|
|
|
|
(289,807)
|
|
|
289,807
|
|
|
|
|
|
-
|
Issuance of common
shares for debt conversion
|
|
999,000
|
|
|
999
|
|
|
3,846,001
|
|
|
|
|
|
|
|
|
|
|
|
3,847,000
|
Issuance of common
shares for cash
|
|
|
|
|
|
|
|
5,323,026
|
|
|
|
|
|
|
|
|
|
|
|
5,323,026
|
Capital distribution
in connection with acquisition of a subsidiary
|
|
|
|
|
|
|
|
(4,418,425)
|
|
|
|
|
|
|
|
|
|
|
|
(4,418,425)
|
Foreign currency
translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(383,947)
|
|
|
(383,947)
|
Balance, December
31, 2016
|
|
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
|
NEWATER
TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
For the Years
Ended December 31,
|
|
2018
|
|
2017
|
|
2016
|
Cash flows from
operating activities
|
|
|
|
|
|
Net income
|
$
|
7,211,429
|
|
$
|
2,590,931
|
|
$
|
2,433,720
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
558,327
|
|
|
233,493
|
|
|
187,662
|
Deferred income
taxes
|
|
(118,199)
|
|
|
(312,997)
|
|
|
(82,162)
|
Bad debt
expense
|
|
280,228
|
|
|
229,707
|
|
|
76,459
|
Amortization of debt
issuance costs
|
|
103,772
|
|
|
-
|
|
|
-
|
Loss on disposal of
property, plant and equipment
|
|
13,256
|
|
|
-
|
|
|
-
|
Gain on disposal of
subsidiary
|
|
-
|
|
|
-
|
|
|
(789)
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(5,327,278)
|
|
|
(5,076,425)
|
|
|
2,148,124
|
Accounts receivable -
related parties, net
|
|
(1,427,078)
|
|
|
2,821,621
|
|
|
87,683
|
Notes
receivable
|
|
(7,276)
|
|
|
70,000
|
|
|
(56,139)
|
Inventories
|
|
(5,762,750)
|
|
|
(4,923,400)
|
|
|
(2,743,853)
|
Deferred cost of
revenue
|
|
383,382
|
|
|
(657,875)
|
|
|
-
|
Deferred cost of
revenue - related party
|
|
1,765,856
|
|
|
(1,795,222)
|
|
|
-
|
Advances to suppliers
and other current assets, net
|
|
(2,108,928)
|
|
|
(412,955)
|
|
|
(2,289,933)
|
Due from related
parties
|
|
-
|
|
|
703
|
|
|
75,469
|
Retentions
receivable, non-current
|
|
(358,505)
|
|
|
-
|
|
|
-
|
Deposit - related
party
|
|
(10,583)
|
|
|
-
|
|
|
-
|
Other non-current
assets
|
|
-
|
|
|
4,719
|
|
|
22,857
|
Accounts payable and
bank acceptance notes to vendors
|
|
996,619
|
|
|
2,577,192
|
|
|
1,079,258
|
Accounts payable -
related parties
|
|
3,269,238
|
|
|
248,695
|
|
|
(2,140,504)
|
Deferred
income
|
|
-
|
|
|
(26,639)
|
|
|
(30,102)
|
Advances from
customers
|
|
2,420,363
|
|
|
(220,483)
|
|
|
425,736
|
Advances from
customers - related parties
|
|
(125,099)
|
|
|
719,550
|
|
|
-
|
Due to related
parties
|
|
-
|
|
|
5,102
|
|
|
(28,257)
|
Income tax
payables
|
|
267,988
|
|
|
144,944
|
|
|
(181,386)
|
Accrued expenses and
other payables
|
|
(4,481,539)
|
|
|
589,638
|
|
|
352,502
|
Net cash used in
operating activities
|
|
(2,456,777)
|
|
|
(3,189,701)
|
|
|
(663,655)
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchase of land use
right
|
|
-
|
|
|
-
|
|
|
(2,261,745)
|
Purchase of property,
plant and equipment
|
|
(5,511,732)
|
|
|
(1,482,360)
|
|
|
(66,641)
|
Proceeds from
disposal of property, plant and equipment
|
|
22,072
|
|
|
-
|
|
|
-
|
Advances to related
parties
|
|
-
|
|
|
-
|
|
|
(239,467)
|
Advances to third
parties
|
|
-
|
|
|
(1,236,490)
|
|
|
(301,019)
|
Repayments from third
parties
|
|
-
|
|
|
1,236,490
|
|
|
338,646
|
Repayments from
related parties
|
|
-
|
|
|
2,960
|
|
|
473,320
|
Cash received in
connection with disposal of subsidiary
|
|
-
|
|
|
-
|
|
|
(1,209)
|
Deposit on
acquisition of subsidiary
|
|
(200,000)
|
|
|
-
|
|
|
-
|
Net cash used in
investing activities
|
|
(5,689,660)
|
|
|
(1,479,400)
|
|
|
(2,058,115)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Proceeds from
issuances of common shares
|
|
-
|
|
|
7,111,325
|
|
|
5,323,026
|
Capital contribution
from shareholders
|
|
-
|
|
|
-
|
|
|
198,917
|
Capital distribution
in connection with acquisition of a subsidiary
|
|
-
|
|
|
-
|
|
|
(4,418,425)
|
Borrowings from
related parties
|
|
-
|
|
|
-
|
|
|
2,558,661
|
Repayment to related
parties
|
|
(9,703)
|
|
|
(739,973)
|
|
|
(1,982,733)
|
Deposit on loan
agreement
|
|
(473,698)
|
|
|
-
|
|
|
-
|
Proceeds from loans
due within one year
|
|
11,493,557
|
|
|
8,805,683
|
|
|
11,613,289
|
Repayment of loans
due within one year
|
|
(11,952,224)
|
|
|
(3,283,830)
|
|
|
(8,142,563)
|
Proceeds from
long-term loans
|
|
8,631,493
|
|
|
-
|
|
|
-
|
Payment of debt
issuance costs
|
|
(284,219)
|
|
|
-
|
|
|
-
|
Repayment of
long-term loans
|
|
(730,595)
|
|
|
-
|
|
|
-
|
Net cash provided
by financing activities
|
|
6,674,611
|
|
|
11,893,205
|
|
|
5,150,172
|
Effect of foreign
exchange rate changes on cash, cash equivalents and restricted
cash
|
|
(404,956)
|
|
|
222,973
|
|
|
(235,260)
|
Net change in
cash, cash equivalents and restricted cash
|
|
(1,876,782)
|
|
|
7,447,077
|
|
|
2,193,142
|
Cash, cash
equivalents and restricted cash, beginning of the
year
|
|
10,371,765
|
|
|
2,924,688
|
|
|
731,546
|
Cash, cash
equivalents and restricted cash, end of the year
|
$
|
8,494,983
|
|
$
|
10,371,765
|
|
$
|
2,924,688
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
$
|
689,867
|
|
$
|
244,753
|
|
$
|
307,797
|
Cash paid for income
taxes
|
$
|
1,507,489
|
|
$
|
656,602
|
|
$
|
812,637
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
|
Stock issued for debt
conversion
|
$
|
-
|
|
$
|
-
|
|
$
|
3,847,000
|
Properties acquired
with loans
|
$
|
52,161
|
|
$
|
206,000
|
|
$
|
-
|
Liabilities assumed
in connection with purchase of property, plant and
equipment
|
$
|
2,636,770
|
|
$
|
7,445,478
|
|
$
|
-
|
Operating expenses
paid by related parties
|
$
|
9,703
|
|
$
|
-
|
|
$
|
-
|
Property, plant and
equipment transferred from inventories
|
$
|
1,566,314
|
|
$
|
-
|
|
$
|
-
|
Reconciliation of
cash, cash equivalents and restricted cash to the consolidated
balance sheets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,461,501
|
|
$
|
3,118,080
|
|
$
|
1,484,762
|
Restricted
cash
|
|
6,033,482
|
|
|
7,253,685
|
|
|
1,439,926
|
Total cash, cash
equivalents and restricted cash
|
$
|
8,494,983
|
|
$
|
10,371,765
|
|
$
|
2,924,688
|
View original
content:http://www.prnewswire.com/news-releases/newater-technology-inc-announces-year-2018-audited-financial-results-300840875.html
SOURCE Newater Technology, Inc.