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 April 2015
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: May 1, 2015
| 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 April 28, 2015 |
Exhibit 99.1
|
Ossen Innovation Announces Fourth Quarter and Full Year 2014 Financial Results
Earnings Conference Call is Scheduled for 8:30 am EDT on April 29, 2015
|
|
SHANGHAI, April. 28, 2015 /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 quarter and full year ended December 31, 2014. And the 20-F has been filed with the SEC and is available at www.sec.gov.
Dr. Liang Tang, Chairman of Ossen Innovation, commented: “We faced significant headwinds in 2014 on the back of China’s economic growth hitting 24 year low as property prices cooled and companies and local government struggled under a heavy debt burdens despite stimulus measures by the central government in the second half of 2014. Additionally, a tightened credit environment throughout the year also limited our ability to borrow funds and thus meet the up-front cash deposit requirement to bid on some of the projects that we believe we otherwise could have won.”
“Despite these macro challenges, we grew our overall revenues by 8.5% in 2014 and improved our gross margin by 700 and 65 basis points in the fourth quarter of 2014 and the year of 2014, respectively, as we increased the sales of lower strength rare earth coated products with lower grade raw materials that gave us cost advantage versus our competitors without sacrificing product strength and quality,” continued Dr. Tang.
“Looking ahead, with signs pointing to China’s economy entering a new stage of a ‘new normal’ with slower growth on the horizon in 2015 and years to come, we remain cautious in our near-term outlook,” concluded Dr. Tang.
|
Three Months Ended December 31, 2014 Financial Results
| For the Three Months Ended December 31, | ||||||||||||
| ($ millions, expect per share data) | 2014 | 2013 | % Change | |||||||||
| Revenues | $ | 31.8 | $ | 42.0 | -24.4 | % | ||||||
| Gross profit | $ | 4.5 | $ | 3.0 | 48.9 | % | ||||||
| Gross margin | 14.3 | % | 7.3 | % | 7.0 | % | ||||||
| Operating income | $ | 2.0 | $ | 1.8 | 13.5 | % | ||||||
| Operating margin | 6.4 | % | 4.2 | % | 2.1 | % | ||||||
| Net income attributable to Ossen Innovation | $ | 1.4 | $ | 1.2 | 19.6 | % | ||||||
| EPS | $ | 0.07 | $ | 0.06 | 19.6 | % | ||||||
For the three months ended December 31, 2014, revenues decreased by $10.2 million, or 24.4%, to $31.8 million from $42.0 million for the same period of last year, mainly due to the weaknesses in rare earth coated products sales and partially offset by strength in plain surface pre-stressed (“PC”) strands and other products. The sales of coated PC steel materials, including rare earth and zinc coated products, decreased by $12.1 million, or 31.2%, to $26.7 million and accounted for 84% of total sales for the three months ended December 31, 2014. The sales of rare earth and zinc coated products were $25.7 million and $1.0 million, respectively, for the three months ended December 31, 2014, compared to $36.5 million and $2.3 million, respectively, for the same period of last year. The sales of plain surface PC strands and others increased by approximately $1.8 million, or 56.6%, to $5.1 million and accounted for 16% of total sales for the three months ended December 31, 2014 mainly due to increase in sales of other products.
Gross profit increased by $1.5 million, or 48.9%, to $4.5 million for the three months ended December 31, 2014 from $3.0 million for the same period of last year. Gross margin was 14.3% for the three months ended December 31, 2014, compared to 7.3% for the same period of last year. The increase in gross margin was mainly due to the decrease in average prices of raw materials.
Selling expenses increased by $0.02 million, or 10.9%, to approximately $0.2 million for the three months ended December 31, 2014. General and administrative expenses increased by $1.2 million, or 114.0%, to approximately $2.3 million for the three months ended December 31, 2014 mainly due to increase in research and development expenses. Operating income and operating margin were $2.0 million and 6.4% for the three months ended December 31, 2014, compared to $1.8 million and 4.2% for the same period of last year, respectively.
After deducting net income attributable to non-controlling interest, net income attributable to Ossen Innovation increased by $0.2 million, or 19.6%, to $1.4 million for the three months ended December 31, 2014 from $1.2 million for the same period of last year. Earnings per share, both basic and diluted, was $0.07 for the three months ended December 31, 2014, versus $0.06 for the same period of last year.
Twelve Months Ended December 31, 2014 Financial Results
| For the Twelve Months Ended December 31, | ||||||||||||
| ($ millions, expect per share data) | 2014 | 2013 | % Change | |||||||||
| Revenues | $ | 123.6 | 113.9 | 8.5 | % | |||||||
| Gross profit | $ | 13.3 | 11.5 | 15.4 | % | |||||||
| Gross margin | 10.8 | % | 10.1 | % | 0.6 | % | ||||||
| Operating income | $ | 6.2 | 7.4 | -16.4 | % | |||||||
| Operating margin | 5.0 | % | 6.5 | % | -1.5 | % | ||||||
| Net income attributable to Ossen Innovation | $ | 3.9 | 3.6 | 5.9 | % | |||||||
| EPS | $ | 0.19 | 0.18 | 5.9 | % | |||||||
For the twelve months ended December 31, 2014, revenues increased by $9.7 million, or 8.5%, to $123.6 million from $113.9 million for the year of 2013. The increase in revenues was mainly from sales of rare earth coated pre-stressed (“PC”) wires and PC strands. The sales of coated steel materials, including rare earth and zinc coated products, increased by $7.0 million, or 7.0%, to $107.6 million and accounted for 87% of total sales for the twelve months ended December 31, 2014. The sales of rare earth and zinc coated products were $97.6 million and $16.0 million, respectively, for the twelve months ended December 31, 2014, compared to $90.6 million and $10.0 million for the year of 2013. The sales of plain surface PC strands and others also increased by $2.7 million, or 20.1%, to $16.0 million and accounted for 13% of total sales for the twelve months ended December 31, 2014.
Gross profit increased by $1.8 million, or 15.4%, to $13.3 million for the twelve months ended December 31, 2014 from $11.5 million for the year of 2013. Gross margin was 10.8% for the twelve months ended December 31, 2014, compared to 10.1% for the year of 2013. The increase in gross margin was mainly due to the decrease of average price of raw materials and sales in new international market, especially Japan, which had higher gross margin compared to domestic market.
Selling expenses increased by $0.1 million, or 23.5%, to approximately $0.8 million for the twelve months ended December 31, 2014. General and administrative expenses increased by $2.9 million, or 81.9%, to approximately $6.3 million for the twelve months ended December 31, 2014 mainly due to increase in research and development expenses associated with the development of products for new customers and rare earth zinc-aluminum coated products. Operating income and operating margin were $6.2 million and 5.0% for the twelve months ended December 31, 2014, compared to $7.4 million and 6.5% for the year of 2013, respectively. The decrease in operating income and operating margin were mainly due to the above-mentioned $2.7 million increase in research and development expenses and a $0.5 million increase in bad-debt provision.
After deducting net income attributable to non-controlling interest, net income attributable to Ossen Innovation increased by $0.2 million, or 5.9%, to $3.9 million for the twelve months ended December 31, 2014 from $3.6 million for the year of 2013. Earnings per share, both basic and diluted, was $0.19 for the twelve months ended December 31, 2014, compared to $0.18 for the year of 2013.
Balance Sheet and Cash Flows
The Company had approximately $18.3 million of cash and restricted cash as of December 31, 2014, compared to $32.9 million at December 31, 2013. Accounts receivable were $53.8 million as of December 31, 2014, compared to $48.2 million at December 31, 2013. The days of sales of outstanding were 151 days for the year of 2014, essentially unchanged from the year of 2013. The balance of prepayment to suppliers for raw materials totaled $56.3 million as of December 31, 2014, compared to $50.6 million at December 31, 2013. The Company had inventories of $20.1 million as of December 31, 2014, compared to $18.8 million at the end of 2013. Total working capital was $108.0 million as of December 31, 2014, compared to $85.7 million at December 31, 2013.
The major sources of our liquidity for fiscal years 2013 and 2012 were bank borrowings, including loans from banks and bank acceptance notes. In 2014, in addition to bank borrowings, our subsidiary in Maanshan, Ossen Materials, completed a private placement of approximately $16.2 million in aggregate principal amount of notes to certain accredited investors in China. The notes bear a fixed interest rate of 10.75% per annum, payable annually in arrears, and mature on September 2, 2016. After deducting placement agent fees and other offering expenses, Ossen Materials received net proceeds of approximately $15.4 million. We expect to finance our operations and working capital needs in the near future from cash generated from operations and short-term borrowings.
Net cash provided by operating activities was $1.8 million for the twelve months ended December 31, 2014, compared to $10.0 million for the year of 2013. Net cash used in investing activities was $0.1 million for the twelve months ended December 31, 2014, compared to net cash provided by investing activities of $8.1 million for the year of 2013. Net cash used in financing activities was $3.5 million for the twelve months ended December 31, 2014, compared to $22.1 million for the year of 2013.
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 Fourth Quarter 2014 Conference Call” or be prepared to utilize the conference ID.
| Conference Call | Ossen Innovation Fourth Quarter 2014 Conference Call |
| Date: | April 29, 2015 |
| Time: | 8:30 am EDT |
| Conference Line Dial-In (U.S.): | +1-845-675-0437 |
| International Toll Free: |
United States: +1-866-519-4004
China, Domestic Mobile: 400-620-8038
China, Domestic: 800-819-0121
|
| Conference ID: | 32910052 |
Please dial in at least 10 minutes before the call to ensure timely participation. A playback will be available through May 7, 2015. To listen, please call +1-855-452-5696 within the United States or +1-646-254-3697 if calling internationally. Utilize the pass code 32910052 for the replay.
This call is being webcast and can be accessed by clicking on this link: http://edge.media-server.com/m/p/y2kxdhvn
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
Weitian Group LLC
Phone: +1-917-609-0333
Email: tina.xiao@weitian-ir.com
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2014 AND 2013
| December,31 | ||||||||
| 2014 | 2013 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 684,592 | $ | 1,139,450 | ||||
| Restricted cash | 17,572,732 | 31,783,670 | ||||||
| Note receivable-bank acceptance note | 9,925,155 | 2,421,581 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $1,874,330 and $1,336,177 at December 31, 2014 and 2013, respectively | 53,764,414 | 48,200,076 | ||||||
| Inventories | 20,137,901 | 18,750,770 | ||||||
| Advance to suppliers | 56,327,390 | 50,614,815 | ||||||
| Other current assets | 946,319 | 3,447,886 | ||||||
| Notes receivable from related party – bank acceptance notes | - | 12,915,099 | ||||||
| Total current assets | 159,358,503 | 169,273,347 | ||||||
| Property, plant and equipment, net | 7,174,646 | 8,458,121 | ||||||
| Land use rights, net | 4,231,348 | 4,297,849 | ||||||
| TOTAL ASSETS | $ | 170,764,497 | $ | 182,029,317 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Notes payable-bank acceptance notes | $ | 26,521,315 | $ | 50,990,427 | ||||
| Short-term bank loans | 18,711,357 | 27,283,147 | ||||||
| Accounts payables | 3,217,076 | 503,944 | ||||||
| Customer deposits | 588,005 | 2,908,271 | ||||||
| Taxes payable | 552,459 | 232,541 | ||||||
| Other payables and accrued liabilities | 1,622,958 | 1,549,748 | ||||||
| Due to related party | 69,469 | 16,911 | ||||||
| Due to shareholder | 100,000 | 50,000 | ||||||
| Total current liabilities | 51,382,639 | 83,534,989 | ||||||
| Bond payable | 15,972,837 | - | ||||||
| TOTAL LIABILITIES | 67,355,476 | 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 December 31, 2014 and 2013, respectively | 200,000 | 200,000 | ||||||
| Additional paid-in capital | 33,971,455 | 33,971,455 | ||||||
| Statutory reserve | 5,021,752 | 4,615,699 | ||||||
| Retained earnings | 44,971,082 | 41,518,259 | ||||||
| Treasury stock, at cost: 98,041 shares as of December 31, 2014 and 2013, respectively | (96,608 | ) | (96,608 | ) | ||||
| Accumulated other comprehensive income | 8,425,697 | 7,646,562 | ||||||
| TOTAL SHAREHOLDERS’ EQUITY | 92,493,378 | 87,855,367 | ||||||
| Non-controlling interest | 10,915,643 | 10,638,961 | ||||||
| TOTAL EQUITY | 103,409,021 | 98,494,328 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 170,764,497 | $ | 182,029,317 | ||||
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEARS ENDED
DECEMBER 31, 2014, 2013 AND 2012
| Year Ended December 31, | ||||||||||||
| 2014 | 2013 | 2012 | ||||||||||
| REVEUNUES | $ | 123,571,455 | $ | 113,891,989 | $ | 122,397,886 | ||||||
| COST OF GOODS SOLD | 110,250,876 | 102,353,957 | 111,611,457 | |||||||||
| GROSS PROFIT | 13,320,579 | 11,538,032 | 10,786,429 | |||||||||
| Selling expenses | 772,383 | 625,500 | 917,074 | |||||||||
| General and administrative expenses | 6,340,584 | 3,485,118 | 3,950,934 | |||||||||
| Total Operating Expenses | 7,112,967 | 4,110,618 | 4,868,008 | |||||||||
| INCOME FROM OPERATIONS | 6,207,612 | 7,427,414 | 5,918,421 | |||||||||
| Financial expenses, net | (2,401,268 | ) | (2,696,966 | ) | (3,556,045 | ) | ||||||
| Other income, net | 907,941 | 558,426 | 911,430 | |||||||||
| INCOME BEFORE INCOME TAX | 4,714,285 | 5,288,874 | 3,273,806 | |||||||||
| INCOME TAX | (578,727 | ) | (1,219,030 | ) | (557,428 | ) | ||||||
| NET INCOME | 4,135,558 | 4,069,844 | 2,716,378 | |||||||||
| LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 276,682 | 426,440 | 335,099 | |||||||||
| NET INCOME ATTRIBUTABLE TO OSSEN INNOVATION CO.,LTD AND SUBSIDIARIES | 3,858,876 | 3,643,404 | 2,381,279 | |||||||||
| OTHER COMPREHENSIVE INCOME | ||||||||||||
| Foreign currency translation gain | 779,135 | 1,647,348 | 703,573 | |||||||||
| TOTAL OTHER COMPREHENSIVE INCOME | 779,135 | 1,647,348 | 703,573 | |||||||||
| COMPREHENSIVE INCOME | $ | 4,638,011 | $ | 5,290,752 | $ | 3,084,852 | ||||||
| EARNINGS PER ORDINARY SHARE | ||||||||||||
| Basic and diluted | $ | 0.19 | $ | 0.18 | $ | 0.12 | ||||||
| WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING | ||||||||||||
| Basic and diluted | 19,901,959 | 19,901,959 | 19,942,333 | |||||||||
OSSEN INNOVATION CO., LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDER’S EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
| Total Ossen Innovation Co., Ltd. Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||
| Ordinary Shares $0.01 Par Value | Additional Paid-in Capital | Treasury stock | Accumulated Other Comprehensive Income | Statutory Reserve | Retained Earnings | Non Controlling Interest | Total | |||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2012 | 20,000,000 | $ | 200,000 | $ | 33,884,656 | - | $ | - | $ | 5,295,641 | $ | 3,884,808 | $ | 36,224,467 | $ | 9,877,422 | $ | 89,366,994 | ||||||||||||||||||||||
| Net income | - | - | - | - | - | - | - | 2,381,279 | 335,099 | 2,716,378 | ||||||||||||||||||||||||||||||
| Transfer to statutory reserve | - | - | - | - | - | - | 294,219 | (294,219 | ) | - | - | |||||||||||||||||||||||||||||
| Common shares repurchase | - | - | - | (98,041 | ) | (96,608 | ) | - | - | - | - | (96,608 | ) | |||||||||||||||||||||||||||
| Share-based compensation to employee | - | - | 86,799 | - | - | - | - | - | - | 86,799 | ||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | 703,573 | - | - | 703,573 | |||||||||||||||||||||||||||||||
| Balance at December 31, 2012 | 20,000,000 | 200,000 | 33,971,455 | (98,041 | ) | (96,608 | ) | 5,999,214 | 4,179,027 | 38,311,527 | 10,212,521 | 92,777,136 | ||||||||||||||||||||||||||||
| Net income | - | - | - | - | - | - | - | 3,643,404 | 426,440 | 4,069,844 | ||||||||||||||||||||||||||||||
| Transfer to statutory reserve | - | - | - | - | - | - | 436,672 | (436,672 | ) | - | - | |||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | 1,647,348 | - | - | 1,647,348 | |||||||||||||||||||||||||||||||
| Balance at December 31, 2013 | 20,000,000 | 200,000 | 33,971,455 | (98,041 | ) | (96,608 | ) | 7,646,562 | 4,615,699 | 41,518,259 | 10,638,961 | 98,494,328 | ||||||||||||||||||||||||||||
| Net income | - | - | - | - | - | - | - | 3,858,876 | 276,682 | 4,135,558 | ||||||||||||||||||||||||||||||
| Transfer to statutory reserve | - | - | - | - | - | - | 406,053 | (406,053 | ) | - | - | |||||||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | 779,135 | - | - | 779,135 | |||||||||||||||||||||||||||||||
| Balance at December 31, 2014 | 20,000,000 | $ | 200,000 | $ | 33,971,455 | (98,041 | ) | $ | (96,608 | ) | $ | 8,425,697 | $ | 5,021,752 | $ | 44,971,082 | $ | 10,915,643 | $ | 103,409,021 | ||||||||||||||||||||
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
| Year Ended December 31, | ||||||||||||
| 2014 | 2013 | 2012 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Net income | $ | 4,135,558 | $ | 4,069,844 | $ | 2,716,378 | ||||||
| Adjustments to reconcile net income to net cash provided by/ (used in) operating activities: | ||||||||||||
| Depreciation and amortization | 1,531,278 | 1,564,973 | 1,601,197 | |||||||||
| Share-based compensation expense | - | - | 86,799 | |||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| (Increase) Decrease In: | ||||||||||||
| Accounts receivable | (5,564,338 | ) | (2,465,695 | ) | 2,315,342 | |||||||
| Inventories | (1,387,131 | ) | (8,943,726 | ) | 7,415,620 | |||||||
| Advance to suppliers | (5,712,575 | ) | 27,333,681 | (36,557,323 | ) | |||||||
| Other current assets | 2,501,567 | (1,543,260 | ) | 4,590,616 | ||||||||
| Notes receivable - bank acceptance notes | (7,503,574 | ) | (2,027,502 | ) | 10,457,537 | |||||||
| Notes receivable from related party - bank acceptance notes | 12,915,099 | (11,084,891 | ) | (1,830,208 | ) | |||||||
| Account receivable from related party | - | - | 20,799 | |||||||||
| Increase (Decrease) In: | ||||||||||||
| Accounts payable | 2,713,132 | (68,361 | ) | (376,169 | ) | |||||||
| Customer deposits | (2,320,266 | ) | 2,523,669 | (75,312 | ) | |||||||
| Income tax payable | 319,918 | (158,812 | ) | 386,561 | ||||||||
| Other payables and accrued expenses | 73,209 | 744,552 | 480,773 | |||||||||
| Due to related party | 52,558 | 16,911 | - | |||||||||
| Due to shareholder | 50,000 | 50,000 | - | |||||||||
| Net cash provided by (used in) operating activities | 1,804,435 | 10,011,383 | (8,767,390 | ) | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
| Purchases of plant and equipment | (81,441 | ) | (16,361 | ) | (32,856 | ) | ||||||
| Withdraw (Prepayment) for purchases of plant and equipment | - | 8,071,937 | (1,584 | ) | ||||||||
| Disposal of property, plant and equipment | 456 | - | 1,458 | |||||||||
| Net cash provided by (used in) investing activities | (80,985 | ) | 8,055,576 | (32,982 | ) | |||||||
OSSEN INNOVATION CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012 (Continued)
| Year Ended December 31, | ||||||||||||
| 2014 | 2013 | 2012 | ||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
| Decrease (Increase) in restricted cash | 14,210,938 | (6,376,171 | ) | (5,642,598 | ) | |||||||
| Proceeds from short-term bank loans | 28,475,194 | 41,531,691 | 68,716,602 | |||||||||
| Repayments of short-term bank loans | (37,261,825 | ) | (66,189,540 | ) | (66,384,299 | ) | ||||||
| Repayments of long-term bank loans | - | (4,581,002 | ) | (316,877 | ) | |||||||
| Proceeds from notes payable-bank acceptance notes | 55,811,380 | 98,467,000 | 76,842,639 | |||||||||
| Repayment of notes payable-bank acceptance notes | (80,682,428 | ) | (84,912,143 | ) | (64,959,757 | ) | ||||||
| Repurchase of common share | - | - | (96,608 | ) | ||||||||
| Proceeds from bond payable | 15,946,109 | - | - | |||||||||
| Net cash provided by (used in) financing activities | (3,500,632 | ) | (22,060,165 | ) | 8,159,102 | |||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,777,182 | ) | (3,993,206 | ) | (641,270 | ) | ||||||
| Effect of exchange rate changes on cash | 1,322,324 | 3,135,892 | 1,069,773 | |||||||||
| Cash and cash equivalents at beginning of period | 1,139,450 | 1,996,764 | 1,568,261 | |||||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 684,592 | $ | 1,139,450 | $ | 1,996,764 | ||||||
| SUPPLEMENTARY CASH FLOW INFORMATION | ||||||||||||
| Cash paid during the periods: | ||||||||||||
| Income taxes paid | $ | 722,948 | $ | 1,095,357 | $ | 310,355 | ||||||
| Interest paid | $ | 1,977,014 | $ | 2,865,902 | $ | 3,676,992 | ||||||
| Non-cash transactions: | ||||||||||||
| Appropriation to statutory reserve | $ | 406,053 | $ | 436,672 | $ | 294,219 | ||||||