UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of September 2014
Commission File Number 333-168496
OSSEN INNOVATION CO., LTD.
(Translation of registrant’s name into English)
518 SHANGCHENG ROAD, FLOOR 17, SHANGHAI, 200120,
PEOPLE’S REPUBLIC OF CHINA
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-______.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
OSSEN INNOVATION CO., LTD.
(Registrant)
Date: September 30, 2014
| By: | /s/ Wei Hua | |
| Name: Wei Hua | ||
| Title: Chief Executive Officer |
EXHIBIT INDEX
|
Exhibit |
Description |
| 99.1 | Press Release of Ossen Innovation Co., Ltd., dated September 26, 2014 |
Exhibit 99.1
Ossen Innovation Announces Second Quarter 2014 Financial Results
To Host Conference Call at 8:30 am ET on September 29, 2014
SHANGHAI, September 26, 2014 /PRNewswire-FirstCall/ -- Ossen Innovation Co., Ltd. ("Ossen" 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 its financial results for the three months and six months ended June 30, 2014.
“I am pleased to report significant quarter over quarter revenue, gross profit and net income increases for the second quarter ended June 30th,” said Dr. Liang Tang, Chairman of Ossen Innovation. Ossen continues to experience an increase in demand for our higher strength and higher quality rare earth coated products. Although our gross margin was impacted due to price competition, we are encouraged by the continued rebound in demand for rare earth products during the first half of 2014. Ossen also added several new customers during the quarter that placed large orders quickly with us, which continues to reaffirm our products’ superior quality, performance and durability characteristics,” concluded Dr. Tang.
Financial Summary
| (in millions ex- EPS) | Q2 2014 | Q2 2013 | Chg. | YTD 2014 | YTD 2013 | Chg. |
| Revenue | $35.9 | $24.2 | +49% | $64.0 | $38.8 | +65% |
| Gross Profit | $3.7 | $2.9 | +28% | $6.4 | $4.6 | +38% |
| Net Income* | $1.5 | $0.7 | +111% | $2.0 | $0.8 | +153% |
| EPS | $0.07 | $0.04 | +75% | $0.10 | $0.04 | +150% |
| Shares Outstanding | 19.9 | 19.9 | 0% | 19.9 | 19.9 | 0% |
*Net income attributable to Ossen Innovation Co., Ltd.
Second Quarter Ended June 30, 2014 Financial Results
Revenue for the three months ended June 30, 2014 was $35.9 million, up 49% from the same period a year ago. Sales of coated pre-stressed steel materials, including rare earth and zinc coated products, were approximately $29.7 million, up 39% compared to approximately $21.3 million in the second quarter of 2013. Sales of plain surface PC strands were $5.9 million for the three months ended June 30, 2014, an increase of $3.4 million, or 136%, compared to the prior year. The overall increase in revenue was primarily due to increased demand for higher strength and higher quality rare earth and zinc coated products and the addition of several new customers.
Gross profit was $3.7 million, up 28% compared to the same period a year ago. Gross margin was 10.4% in the second quarter of 2014, down from 12.1% in the second quarter of 2013. Gross margin was lower primarily due to lower unit pricing of coated products in order to attract new customers in the second quarter of 2014, partially offset by using lower grade raw materials to improve profitability, but without sacrificing product strength or quality.
Selling expenses were reduced by 30% to $0.2 million due to lower transportation costs, partially offset by higher commission fees. General and administrative expenses increased 50% to $1.4 million, primarily due to increased R&D expenses and a higher bad-debt provision. Operating income was approximately $2.1 million, an increase of 23% from the same period a year ago.
Net income attributable to Ossen Innovation Co., Ltd. was $1.5 million in the second quarter of 2014 compared to $0.7 million in the year-ago period. Earnings per share were $0.07 versus $0.04 a year ago. The weighted average diluted shares outstanding were 19.9 million, unchanged from the year-ago period.
Six Months Ended June 30, 2014 Financial Results
Revenue for the six months ended June 30, 2014 was $64.0 million, up 65% from the same period a year ago. Sales of pre-stressed steel rare earth coated PC wires and PC strands were $56.2 million, an increase of $22.0 million, or 64% from the same period of 2013. Sales of plain surface PC strands and PC wires were $7.4 million for the six months ended June 30, 2014, an increase of $3.3 million, or 80%, compared to the prior year, primarily due to increased demand for higher strength and higher quality rare earth and zinc coated products and the addition of several new customers.
Gross profit increased from $4.6 million to $6.4 million, a 38% year-over-year increase. Gross margin was 10.0%, down from 11.9% in the same period of 2013. Gross margin was lower as a result of a decrease in the average unit selling price of coated products in order to attract new customers in 2014 compared to the prior year period.
Selling expenses were reduced by 3% to $0.3 million due to a decrease in transportation costs, partially offset by higher commission and testing fees. General and administrative expenses were $2.8 million, up 78% compared to $1.6 million in the same period of 2013 due to increased R&D expenses, partially offset by lower audit fees. Operating income was approximately $3.3 million, an increase of 20% from the same period a year ago.
Net income attributable to Ossen Innovation Co., Ltd. was $2.0 million in the six months ended June 30, 2014 compared to $0.8 million in the year-ago period. Earnings per share were $0.10 versus $0.04 a year ago. The weighted average diluted shares outstanding were 19.9 million, unchanged from the year-ago period.
Balance Sheet and Cash Flows
Ossen had approximately $15.4 million of cash and restricted cash as of June 30, 2014 compared to $32.9 million at December 31, 2013. The decrease was due to an increase in inventories and repayment of bank loans. Total accounts receivable on June 30, 2014 decreased to $44.0 million from $48.2 million on December 31, 2013. The average accounts receivable days sales outstanding were 112 days for the second quarter of 2014 compared to 150 days for 2013. This decrease was primarily due to improved accounts receivable collection times and increased revenue in the second quarter. The balance of prepayments to suppliers of raw materials was $47.1 million as of June 30, 2014, a decrease of $3.5 million compared with December 31, 2013. The decrease was mainly due to an increased receipt of raw materials compared with prepayments during the second quarter. Inventories increased from $18.8 million at December 31, 2013 to $20.6 million at June 30, 2014, primarily due to anticipation of increased sales during the second half of 2014. Total working capital was $89.1 million at June 30, 2014.
The Company generated positive cash flows from operations of $9.8 million for the six months ended June 30, 2014 as compared to cash flows of $12.4 million for the same period of 2013. The primary reasons for the decrease in cash generated in operations were an increase in notes receivable, partially offset by an increase in net income, a decrease in notes receivable from a related party, and a decrease in accounts receivable.
Cash flow used in financing activities was $11.3 million for the six months ended June 30, 2014 as compared to cash flow used in financing activities of $14.9 million for the same period of 2013. The primary reasons for the decrease in cash used by financing activities were a decrease in proceeds and repayments from short-term bank loans, a decrease of proceeds from bank acceptance notes, partially offset by a decrease in restricted cash and an increase in repayments of bank acceptance notes.
Business Updates and Outlook
We note several positive developments in the second quarter of 2014. Specifically:
| · | In June 2014, Ossen (Jiujiang) Steel Wire & Cable Co., Ltd. was awarded the Major Scientific and Technological Innovation Title in Jiujiang City for the year 2014. This award was received in recognition of the Company’s development of the 5mm series zinc-aluminum rare earth coated bridge cables. Ossen (Jiujiang) will receive a subsidy from the government. |
| · | In August 2014, the Company was awarded the highest honor in product quality, the Jiujiang City Mayor Quality Award of 2014, in recognition of its superior product quality and advanced quality management systems. Furthermore, Ossen's 15.24 mm 1860MPa coated strand research project was been listed as a national key new product project for 2014 by the Chinese government. |
Conference Call
To attend the call, please use the information below for either dial-in access or webcast access. When prompted on dial-in, ask for "Ossen Innovation Second Quarter 2014 Conference Call” or be prepared to utilize the conference ID.
| Conference Call | Ossen Innovation Second Quarter 2014 Conference Call |
| Date: | Monday, September 29, 2014 |
| Time: | 8:30 am Eastern Time, US |
| Conference Line Dial-In (U.S.): | +1-845-507-1610 |
| International Toll Free: | United States: +1-800-742-9301 China, Domestic Mobile: 4001203170 China, Domestic: 8008700210 |
| Conference ID: | 7681271 |
Please dial in at least 10 minutes before the call to ensure timely participation. A playback will be available through October 6, 2014. To listen, please call +1-855-452-5696 within the United States or +1-646-254-3697 if calling internationally. Utilize the pass code 7681271 for the replay.
This call is being webcast and can be accessed by clicking on this link: http://www.media-server.com/m/p/ego49pva
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 Maanshan, 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 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:
Ossen Innovation Co., Ltd.
Feng Peng, Chief Financial Officer
Email: feng.peng@ossencorp.com
Phone: +86 (21) 6888-8886
Web: www.osseninnovation.com
Investor Relations
FCC Group LLC
Phone: +1-347-850-7098
Email: ir@ossencorp.com
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| June 30, | December 31, | |||||||
| 2014 | 2013 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 731,773 | $ | 1,139,450 | ||||
| Restricted cash | 14,630,000 | 31,783,670 | ||||||
| Notes receivable – bank acceptance notes | 17,055,145 | 2,421,581 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $1,385,583 and $1,336,177 at June 30, 2014 and December 31,2013, respectively | 43,986,144 | 48,200,076 | ||||||
| Inventories | 20,623,329 | 18,750,770 | ||||||
| Advance to suppliers | 47,083,163 | 50,614,815 | ||||||
| Other current assets | 928,147 | 3,447,886 | ||||||
| Notes receivable from related party – bank acceptance notes | - | 12,915,099 | ||||||
| Total Current Assets | 145,037,701 | 169,273,347 | ||||||
| Property, plant and equipment, net | 7,790,184 | 8,458,121 | ||||||
| Land use rights, net | 4,277,315 | 4,297,849 | ||||||
| TOTAL ASSETS | $ | 157,105,200 | $ | 182,029,317 | ||||
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| June 30, | December 31, | |||||||
| 2014 | 2013 | |||||||
| (Unaudited) | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Notes payable – bank acceptance notes | $ | 25,988,792 | $ | 50,990,427 | ||||
| Short-term bank loans | 24,364,493 | 27,283,147 | ||||||
| Accounts payable | 382,170 | 503,944 | ||||||
| Customer deposits | 3,747,256 | 2,908,271 | ||||||
| Income tax payable | 430,240 | 232,541 | ||||||
| Other payables and accrued expenses | 829,444 | 1,549,748 | ||||||
| Due to related party | 76,245 | 16,911 | ||||||
| Due to shareholder | 100,000 | 50,000 | ||||||
| Total Current Liabilities | 55,918,640 | 83,534,989 | ||||||
| TOTAL LIABILITIES | 55,918,640 | 83,534,989 | ||||||
| EQUITY | ||||||||
| Shareholders' Equity | ||||||||
| Ordinary shares, $0.01 par value: 100,000,000 shares authorized, 20,000,000 shares issued; 19,901,959 shares outstanding as of June 30, 2014 and December 31, 2013, respectively | 200,000 | 200,000 | ||||||
| Additional paid-in capital | 33,971,455 | 33,971,455 | ||||||
| Statutory reserve | 4,823,680 | 4,615,699 | ||||||
| Retained earnings | 43,279,766 | 41,518,259 | ||||||
| Treasury stock, at cost: 98,041 shares as of June 30, 2014 and December 31, 2013, respectively | (96,608 | ) | (96,608 | ) | ||||
| Accumulated other comprehensive income | 8,250,231 | 7,646,562 | ||||||
| TOTAL SHAREHOLDERS’ EQUITY | 90,428,524 | 87,855,367 | ||||||
| Non-controlling interest | 10,758,036 | 10,638,961 | ||||||
| TOTAL EQUITY | 101,186,560 | 98,494,328 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 157,105,200 | $ | 182,029,317 | ||||
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
| FOR THE THREE MONTHS ENDED JUNE 30, | FOR THE SIX MONTHS ENDED JUNE 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| REVENUES | $ | 35,920,752 | $ | 24,186,992 | $ | 63,957,660 | $ | 38,779,745 | ||||||||
| COST OF GOODS SOLD | 32,195,742 | 21,267,149 | 57,588,658 | 34,167,886 | ||||||||||||
| GROSS PROFIT | 3,725,010 | 2,919,843 | 6,369,002 | 4,611,859 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Selling and distribution expenses | 164,358 | 236,033 | 272,796 | 280,108 | ||||||||||||
| General and administrative expenses | 1,430,221 | 956,048 | 2,769,752 | 1,558,755 | ||||||||||||
| Total Operating Expenses | 1,594,579 | 1,192,081 | 3,042,548 | 1,838,863 | ||||||||||||
| INCOME FROM OPERATIONS | 2,130,431 | 1,727,762 | 3,326,454 | 2,772,996 | ||||||||||||
| Other Income (Expenses): | ||||||||||||||||
| Financial expenses, net | (423,723 | ) | (826,713 | ) | (1,124,458 | ) | (1,730,886 | ) | ||||||||
| Other income, net | 59,156 | 51,520 | 227,421 | 95,911 | ||||||||||||
| INCOME BEFORE INCOME TAXES | 1,765,864 | 952,569 | 2,429,417 | 1,138,021 | ||||||||||||
| INCOME TAXES | (205,582 | ) | (158,780 | ) | (340,854 | ) | (244,050 | ) | ||||||||
| NET INCOME | 1,560,282 | 793,789 | 2,088,563 | 893,971 | ||||||||||||
| LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 73,246 | 89,410 | 119,075 | 115,553 | ||||||||||||
| NET INCOME ATTRIBUTABLE TO OSSEN INNOVATION CO.,LTD AND SUBSIDIARIES | 1,487,036 | 704,379 | 1,969,488 | 778,418 | ||||||||||||
| OTHER COMPREHENSIVE INCOME | ||||||||||||||||
| Foreign currency translation gain, net of tax | 108,349 | 1,422,536 | 603,669 | 1,932,983 | ||||||||||||
| TOTAL OTHER COMPREHENSIVE INCOME | 108,349 | 1,422,536 | 603,669 | 1,932,983 | ||||||||||||
| COMPREHENSIVE INCOME | 1,595,385 | 2,216,915 | 2,573,157 | 2,711,401 | ||||||||||||
| EARNINGS PER ORDINARY SHARE | ||||||||||||||||
| Basic and diluted | $ | 0.07 | $ | 0.04 | $ | 0.10 | $ | 0.04 | ||||||||
| WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING | ||||||||||||||||
| Basic and diluted | $ | 19,901,959 | $ | 19,901,959 | $ | 19,901,959 | $ | 19,901,959 | ||||||||
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDER’S EQUITY
(Unaudited)
| Total Ossen Innovation Co., Ltd. Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||
| Ordinary Shares
$0.01 Par Value | Treasury Stock | Additional
Paid-in | Accumulated Other
Comprehensive | Statutory | Retained | Non Controlling | ||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Income | Reserve | Earnings | Interest | Total | |||||||||||||||||||||||||||||||
| Balance at December 31, 2013 | 20,000,000 | 200,000 | (98,041 | ) | (96,608 | ) | 33,971,455 | 7,646,562 | 4,615,699 | 41,518,259 | 10,638,961 | 98,494,328 | ||||||||||||||||||||||||||||
| Net income | - | - | - | - | - | - | - | 1,969,488 | 119,075 | 2,088,563 | ||||||||||||||||||||||||||||||
| Transfer to statutory reserve | - | - | - | - | - | - | 207,981 | (207,981 | ) | - | - | |||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | 603,669 | - | - | - | 603,669 | ||||||||||||||||||||||||||||||
| Balance at June 30, 2014 | 20,000,000 | $ | 200,000 | (98,041 | ) | $ | (96,608 | ) | $ | 33,971,455 | $ | 8,250,231 | $ | 4,823,680 | $ | 43,279,766 | $ | 10,758,036 | $ | 101,186,560 | ||||||||||||||||||||
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Six Months Ended June 30, | ||||||||
| 2014 | 2013 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 2,088,563 | $ | 893,971 | ||||
| Adjustments to reconcile net income to net cash provided by/ (used in) operating activities: | ||||||||
| Depreciation and amortization | 771,122 | 769,649 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| (Increase) Decrease In: | ||||||||
| Accounts receivable | 4,213,932 | (4,069,215 | ) | |||||
| Inventories | (1,872,559 | ) | (5,422,010 | ) | ||||
| Advance to suppliers | 3,531,652 | 5,150,793 | ||||||
| Other current assets | 2,519,739 | (6,525 | ) | |||||
| Notes receivable - bank acceptance notes | (14,633,564 | ) | 394,079 | |||||
| Notes receivable from related party - bank acceptance notes | 12,915,099 | 1,830,208 | ||||||
| Increase (Decrease) In: | ||||||||
| Accounts payable | (121,774 | ) | 6,530,842 | |||||
| Customer deposits | 838,985 | 4,814,106 | ||||||
| Income tax payable | 197,698 | (234,954 | ) | |||||
| Other payables and accrued expenses | (720,304 | ) | 118,677 | |||||
| Due to related party | 59,333 | 1,588,938 | ||||||
| Due to shareholder | 50,000 | - | ||||||
| Net cash provided by operating activities | 9,837,922 | 12,358,559 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of plant and equipment | (2,509 | ) | (14,313 | ) | ||||
| Net cash used in investing activities | (2,509 | ) | (14,313 | ) | ||||
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Six Months Ended June 30, | ||||||||
| 2014 | 2013 | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| (Increase)/Decrease in restricted cash | 17,153,670 | (5,312,862 | ) | |||||
| Proceeds from short-term bank loans | 11,397,125 | 14,550,667 | ||||||
| Repayments of short-term bank loans | (14,490,630 | ) | (32,627,081 | ) | ||||
| Proceeds from notes payable-bank acceptance notes | 29,306,892 | 45,806,173 | ||||||
| Repayment of notes payable-bank acceptance notes | (54,681,776 | ) | (37,317,616 | ) | ||||
| Net cash used in financing activities | (11,314,719 | ) | (14,900,719 | ) | ||||
| DECREASE IN CASH AND CASH EQUIVALENTS | (1,479,306 | ) | (2,556,473 | ) | ||||
| Effect of exchange rate changes on cash | 1,071,629 | 3,293,409 | ||||||
| Cash and cash equivalents at beginning of period | 1,139,450 | 1,996,764 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 731,773 | $ | 2,733,700 | ||||
| SUPPLEMENTARY CASH FLOW INFORMATION | ||||||||
| Cash paid during the periods: | ||||||||
| Income taxes paid | $ | 446,210 | $ | 482,301 | ||||
| Interest paid | $ | 1,205,954 | $ | 1,799,554 | ||||
| Non-cash transactions: | ||||||||
| Appropriation to statutory reserve | $ | 207,981 | $ | 126,740 | ||||
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended June 30, | ||||||||
| 2014 | 2013 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 1,560,282 | $ | 793,789 | ||||
| Adjustments to reconcile net income to net cash provided by/ (used in) operating activities: | ||||||||
| Depreciation and amortization | 382,909 | 385,159 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| (Increase) Decrease In: | ||||||||
| Accounts receivable | 222,604 | (11,668,005 | ) | |||||
| Inventories | 13,239,905 | 924,775 | ||||||
| Advance to suppliers | 7,343,190 | 89,361 | ||||||
| Other current assets | 1,705,006 | (46,193 | ) | |||||
| Notes receivable - bank acceptance notes | (12,187,544 | ) | - | |||||
| Account receivable from related party | - | 2,625,082 | ||||||
| Increase (Decrease) In: | ||||||||
| Accounts payable | 34,282 | 6,505,020 | ||||||
| Customer deposits | (1,223,003 | ) | 1,554,806 | |||||
| Income tax payable | 21,042 | 102,953 | ||||||
| Other payables and accrued expenses | (107,860 | ) | 415,697 | |||||
| Due to related party | (19,389 | ) | 1,588,938 | |||||
| Net cash provided by operating activities | 10,971,424 | 3,271,382 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of plant and equipment | (1,359 | ) | (1,642 | ) | ||||
| Net cash used in investing activities | (1,359 | ) | (1,642 | ) | ||||
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended June 30, | ||||||||
| 2014 | 2013 | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| (Increase)/Decrease in restricted cash | 11,053,669 | (11,874,205 | ) | |||||
| Proceeds from short-term bank loans | 3,060,659 | 8,501,060 | ||||||
| Repayments of short-term bank loans | (7,788,765 | ) | (20,449,255 | ) | ||||
| Proceeds from notes payable-bank acceptance notes | 13,941,640 | 31,318,956 | ||||||
| Repayment of notes payable-bank acceptance notes | (31,470,438 | ) | (14,551,991 | ) | ||||
| Net cash used in financing activities | (11,203,235 | ) | (7,055,435 | ) | ||||
| DECREASE IN CASH AND CASH EQUIVALENTS | (233,170 | ) | (3,785,695 | ) | ||||
| Effect of exchange rate changes on cash | 202,701 | 2,413,868 | ||||||
| Cash and cash equivalents at beginning of period | 762,242 | 4,105,527 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 731,773 | $ | 2,733,700 | ||||
| SUPPLEMENTARY CASH FLOW INFORMATION | ||||||||
| Cash paid during the periods: | ||||||||
| Income taxes paid | $ | 204,531 | $ | 93,121 | ||||
| Interest paid | $ | 633,327 | $ | 899,581 | ||||
| Non-cash transactions: | ||||||||
| Appropriation to statutory reserve | $ | 143,579 | $ | 81,034 | ||||