SHANGHAI, March 23, 2020 /PRNewswire/ -- Ossen Innovation
Co., Ltd. ("Ossen Innovation" or the "Company") (Nasdaq: OSN), a
China-based manufacturer of an
array of plain surface, rare earth and zinc coated pre-stressed
steel materials, today announced that preliminary revenues, gross
profit and net income attributable to Ossen Innovation for the full
year 2019 are expected to be $138.9
million, $22.4 million and
$10.9 million, compared to
$136.1 million, $20.5 million and $10.4
million for the same period of last year.
The expected increase in revenue is primarily due to an increase
in sales of rare earth coated PC sires and PC strands and other
products, partially offset by a decrease in sales of plain surface
PC strands. Gross margins in 2019 are expected to show a 102-basis
points improvement, primarily due to the improvement of the
profitability of rare earth coated products in 2019. The increase
in net income attributable to Ossen Innovation in 2019 compared to
2018 was primarily due to the increase in the 2019 revenues.
The information set forth herein represents our preliminary
estimated unaudited financial data for the year ended December 31, 2019, which is subject to revision
based upon the completion of our year-end financial closing process
and external audit of our results of operations for the same
period. We are still in the process of completing our financial
statements for the respective period. Therefore, it is possible
that adjustments to the data presented herein will be made.
Update on COVID-19
Due to the ongoing COVID-19 pandemic, Ossen Innovation's
factories in Jiujiang and Ma'anshan were temporarily closed after
the Chinese New Year until the second week of March 2020. As of March
23, 2020, the factories are fully operational.
Outlook
Since December 2019, the National
Development and Reform Commission has approved numerous
infrastructure construction projects, amounting to approximately
RMB270 billion, focusing on high
speed rail, transportation infrastructure aiming at fostering
communication and the mobility of people between cities and rural
areas, in particular, in the Western region, the Guangdong Province, Shandong Province, Hebei Province and Fujian Province.
Due to the travel and work restrictions in order to curb the
widespread of COVID-19 in China
since the end of January 2020, many
cities in China were under
lockdown. As a result, production and sales orders were delayed.
Restrictions on the movement of people and goods currently remain
in place in certain regions, requiring us to adapt certain of our
sales and delivery processes. This may affect our overall financial
performance in 2020, although we cannot quantify the overall impact
at this time. As the Company's business is closely connected with
the infrastructure investment in China, the Company envisages that the
government directives and policies would present new opportunities
to the Company. In 2020, the Company intends to continue to expand
its prestressed product business. With the anticipated completion
of the construction of new production facility in Jiujiang,
Jiangxi Province in 2020, it is
expected the Company's business scale could be further increased,
subject to any future developments relating to COVID-19 and its
aftermath.
About Ossen Innovation Co., Ltd.
Ossen Innovation Co., Ltd. manufactures and sells a wide variety
of plain surface pre-stressed steel materials and rare earth coated
and zinc coated pre-stressed steel materials. The Company's
products are mainly used in the construction of bridges, as well as
in highways and other infrastructure projects. Ossen has two
manufacturing facilities located in Ma'anshan, Anhui Province, and Jiujiang, Jiangxi Province.
Safe Harbor Statements
This press release may contain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve
inherent risks and uncertainties that could cause actual results to
differ materially from those projected or anticipated, including
risks relating to the ongoing COVID-19 pandemic and the risks
outlined in the Company's public filings with the Securities and
Exchange Commission, including the Company's annual report on Form
20-F, as amended. All information provided in this press release is
as of the date hereof. Except as required by law, the Company
undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements
are made or to reflect the occurrence of unanticipated
events.
For more information, please contact:
Wei Hua, Chief Executive
Officer
Email: int.tr@ossengroup.com
Phone: +86-21-6888-8886
Web: www.osseninnovation.com
Investor Relations
GIC IR
Phone: +1-347-393-4230
Email: info@goldenir.com
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SOURCE Ossen Innovation Co., Ltd.