Monthly Archives: December 2017

Newater Technology, Inc. Announces Half Year 2017 Unaudited Financial Results

YANTAI, CHINA / ACCESSWIRE / December 28, 2017 / Newater Technology, Inc. (NASDAQ: NEWA) (“NEWA”, “we”, “our” or the “Company”), a developer and manufacturer of membrane filtration products and related hardware and engineered systems that are used in the treatment, recycling and discharge of wastewater, today announced its unaudited financial results for the half-year ended June 30, 2017.

Six Months Ended June 30, 2017 Financial Highlights (all comparisons to the six months ended June 30, 2016 unless noted)

  • Revenues increased by 50.61% from $4.78 million to $7.20 million, which resulted from: 1) growing demand for the Company’s products; and 2) an increase in both the number of customers and larger scale of projects.
  • Cost of goods sold increased by 84.14% from $2.87 million to $5.28 million due to 1) the 50.61% revenue growth; 2) new large complex projects which required more highly skilled engineers for installations and more time to complete projects.
  • Gross profit increased by 0.36% to $1.92 million compared to $1.91 million for the same period in 2016, while the gross profit margin was 26.67%, compared to 40.02% for the same period in 2016.
  • Operation costs increased by 30.68% from $1.37 million to $1.78 million, however, the percentage of operating costs compared to revenue decreased from 28.54% to 24.76%.
  • Operating income decreased from $0.55 million to $0.14 million.

“We are pleased with the progress we made in the first half of this year towards meeting our operational goals for 2017,” commented Mr. Yuebiao Li, the Company’s Chairman and Chief Executive Officer, “With the proceeds from our IPO, we are building an automatic DTRO (Disk Tube Reverse Osmosis) production line, which is scheduled be completed in 2018. Upon completion, we believe we will be at the forefront for DTRO automatic production lines in China, enabling us to be a leader of DTRO manufacturing in China.”

“We remain committed to innovation, research and development such as our new delivery method, which we implemented in 2017, of packing membrane filtration equipment in mobile containers resulting in benefits for our clients, including easy transportation and better protection of equipment as well as the improvement of equipment mobility, which we believe strengthens our competitive advantages.”

Operating Results for Six Months Ended June 30, 2017

Revenues

We derive our revenues from product sales, such as sales of water purifying membranes and water purification equipment, and project sales (water purification installation projects). Revenues consist of the invoiced value for the sales, net of value-added tax (“VAT”), business tax, applicable local government levies, rebates, discounts and returns.

For the six months ended June 30, 2017, revenues increased by $2.42 million, or 50.61%, to $7.20 million from $4.78 million for the same period last year. This increase was mainly driven by the increase in both the number and size of the project and product sales.

Of the total ongoing projects as of June 30, 2017, three of them had sales over $0.73 million (RMB 5 million) compared to two as of June 30, 2016. We signed eight sales contracts with each contract over $0.73 million (RMB 5 million) for the six months ended June 30, 2017, versus five sales contracts with a value greater than $0.73 million (RMB 5 million) for the same period in 2016. Furthermore, the time to complete the installation of projects has increased from one to three months to six months due to the fact that the newer projects are larger and more complex.

Our project revenue recognition method is completed contract method. Revenue is only recognized after the project is completed and the contract is fulfilled. We had four ongoing projects with a total estimated gross revenue of $3.02 million and gross profit of $1.51 million as of June 30, 2017.

Cost of revenues

Cost of revenues consists primarily of direct raw materials, direct payroll of workshop staff, utility and supply costs consumed in the manufacturing process, manufacturing labor, depreciation expense and overhead expenses necessary to manufacture finished goods as well as distribution costs such as inbound freight charges.

Cost of revenues increased by $2.41million, or 84.14%, to $5.28 million for the six months ended June 30, 2017 from $2.87 million for the same period last year. As a percentage of revenues, cost of revenues was 73.33% for the six months ended June 30, 2017, compared to 59.98% for the same period last year. The increase in cost of revenues is directly linked to the 50.61% revenue growth, more highly skilled labors required for the installation and longer project delivery time for new large complex projects.

Gross profit and gross margin

Gross profit increased slightly by $0.01 million, or 0.36%, to $1.92 million for the six months ended June 30, 2017 from $1.91 million for the same period last year. However, gross margin decreased by 13.35 percentage points to 26.67% for the six months ended June 30, 2017 from 40.02% for the same period last year.

The decrease in gross margin was primarily due to the fact that more complex large projects were engaged for the six months ended June 30, 2017, which resulted in engaging more experts and requiring more time in equipment installation on-site.

Selling, general and administrative expenses

Selling, general and administrative expenses (“SG&A”) increased by $0.41 million, or 30.68%, to $1.78 million for the six months ended June 30, 2017 from $1.37 million for the same period last year.

Research and development expenses account for 66% of the increase in SG&A expenses, while the salary’s increase, including the bonus payment for the calendar year 2016 and the increase in the number of the new hires, accounts for the remaining increase in SG&A expenses.

Operating income and operating margin

Income from operations decreased by $0.41 million, or 74.95%, to $0.14 million for the six months ended June 30, 2017 from $0.55 million for the same period last year. Operating margin was 1.91% for the six months ended June 30, 2017, compared to 11.49% for the same period last year.

The decrease in operating income and operating margin mainly resulted from the higher cost of goods sold, which led to a decrease in gross margin.

Income Taxes

Provision for income taxes was $0.10 million for the six months ended June 30, 2017, a decrease of $0.06 million, or 37.23%, from $0.16 million for the same period of last year. We were entitled to a preferential enterprise income tax (“EIT”) rate of 15% in 2016 and 2017. The standard enterprise income tax rate in China is 25%.

Net Income

Net income was $0.02 million for the six months ended June 30, 2017, compared to 0.31 million for the same period last year. Earnings per basic and diluted share was $0.00, and $0.04 for the six months ended June 30, 2017, and June 30, 2016 respectively.

Financial Conditions

As of June 30, 2017, the Company had cash of $1.58 million, compared to $1.48 million at December 31, 2016. Total working capital was $7.47 million as of June 30, 2017, compared to $7.41 million at the end of 2016.

Net cash provided by operating activities was $1.18 million for the six months ended June 30, 2017, compared to net cash used of $2.79 million for the same period last year. Net cash used in investing activities was $0.32 million for the six months ended June 30, 2017, compared to net cash provided of $0.83 million for the same period last year. Net cash used in financing activities was $0.80 million for the six months ended June 30, 2017, compared to net cash provided of $2.33 million for the same period of last year.

About Newater Technology, Inc.

Founded in 2012 and headquartered in Yantai, China, Newater specializes in the development, manufacture and sale of DTRO (Disk Tube Reverse Osmosis) and DTNF (Disk Tube Nano-Filtration) membranes for waste water treatment, recycling and discharge. Newater provides integrated technical solutions in engineering support and installation, technical advice and services, and other project-related solutions to turn wastewater into valuable clean water.

The Company’s products can be used across a wide spectrum of industries, including:

– Leachate from landfills
– Wastewater from oil fields
– High acid wastewater
– Power plant waste water
– Wastewater from gas production
– Desalination

More information about the Company can be found at: www.newater.cc.

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 continued growth, business outlook, and automatic production line 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:

Company

Zhuo Zhang CFO
NEWATER TECHNOLOGY INC.
Phone: +86 (535) 626-4177
Email: zhuozhang@newater.cc

Investor Relations

Y. Tracy Tang CFA, CPA
SINO-AMERICAN INVESTOR ADVISORY
Phone: +1 (646) 485-1040
Email: Tracy.tang@sino-UsInvestors.com

 

NEWATER TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

 

 

June 30,
December 31,
2017
2016
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents
$ 1,577,394 $ 1,484,762
Restricted cash
551,875 1,439,926
Accounts receivable, net
1,927,426 2,637,236
Accounts receivable from related party, net
1,060,977
Notes receivable
68,108
Inventories
10,407,051 4,840,234
Advances to suppliers and other current assets, net
1,918,015 2,528,411
Due from third party
1,254,261
Due from related parties
3,563
Total current assets
17,636,022 14,063,217
Property, plant and equipment, net
1,244,904 1,199,611
Land use right, net
2,169,638 2,143,002
Deferred tax assets
327,929 181,003
Other non-current assets
20,904 4,591
Total assets
$ 21,399,397 $ 17,591,424
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable and bank acceptance notes to vendors
$ 3,774,736 $ 1,844,077
Short term loans
2,877,422 2,879,853
Due to related parties
714,999
Deferred income
26,561 25,919
Advances from customers
3,214,761 833,742
Income tax payables
349,860 329,212
Other current liabilities
255,052 210,400
Total current liabilities
10,498,392 6,838,202
Total liabilities
10,498,392 6,838,202
Shareholders’ equity
Common shares ($0.001 par value, 200,000,000 shares authorized, 9,199,000 shares issued and outstanding as of June 30, 2017 and December 31, 2016)
9,199 9,199
Additional paid-in capital
7,949,466 7,949,466
Statutory reserves
405,070 382,802
Retained earnings
2,954,448 2,960,698
Accumulated other comprehensive loss
(417,178 ) (548,943 )
Total shareholders’ equity
10,901,005 10,753,222
Total liabilities and shareholders’ equity
$ 21,399,397 $ 17,591,424

 

NEWATER TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)

 

For The Six Months Ended June 30,
2017
2016
Net revenues
$ 7,204,431 $ 4,766,239
Net revenues from related parties
17,237
Total revenues
7,204,431 4,783,476
Cost of revenues
5,282,936 2,853,076
Cost of revenues from related parties
15,877
Total cost of revenues
5,282,936 2,868,953
Gross profit
1,921,495 1,914,523
Operating expenses:
Selling, general and administrative
1,783,836 1,365,091
Total operating expenses
1,783,836 1,365,091
Income from operations
137,659 549,432
Interest expense
80,512 94,621
Other income
(61,320 ) (19,560 )
Total other expense
19,192 75,061
Income before income taxes provisions
118,467 474,371
Income tax provisions
102,449 163,222
Net income
16,018 311,149
Other comprehensive income (loss)
Foreign currency translation adjustment
131,765 (98,036 )
Total comprehensive income
$ 147,783 $ 213,113
Earnings per common share
Basic
$ 0.00 $ 0.04
Diluted
$ 0.00 $ 0.04
Weighted average common shares outstanding
Basic
8,767,738 8,333,200
Diluted
8,767,738 8,333,200
NEWATER TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For The Six Months Ended June 30,
2017
2016
Cash flows from operating activities
Net income
$ 16,018 $ 311,149
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization expense
93,854 64,820
Deferred income taxes
(140,423 )
Changes in operating assets and liabilities:
Accounts receivable, net
764,167 (3,505,445 )
Accounts receivable from related parties, net
1,071,858 3,054,075
Notes receivable
68,806 (53,554 )
Inventories
(5,369,723 ) (1,343,912 )
Advances to suppliers and other current assets
439,396 (593,992 )
Advances to supplier – related party
(728,724 )
Due from related parties
691 1,826
Other non-current assets
(15,969 )
Accounts payable and bank acceptance notes to vendors
1,847,198 1,857,382
Accounts payable to related party
(1,105,024 )
Other current liabilities
58,437 (274,888 )
Advances from customers
2,326,919 266,395
Deferred income
(395,774 )
Due to related parties
(1,095 ) 6,358
Income tax payables
12,314 (355,690 )
Cash provided by (used in) operating activities
1,172,448 (2,794,998 )
Cash flows from investing activities
Purchases of property and equipment
(88,500 )
Cash advanced to related party
(252,636 )
Repayments from related parties
2,909 570,311
Net change in restricted cash
910,638 596,394
Cash advanced to others
(1,236,490 )
Cash provided by (used in) investing activities
(322,943 ) 825,569
Cash flows from financing activities
Proceeds from issuances of common shares
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
3,238,142
Repayment to related parties
(721,237 ) (3,405,928 )
Borrowings from third parties
1,672,898 3,847,000
Repayment to third parties
(1,745,632 ) (2,448,205 )
Cash provided by (used in) financing activities
(793,971 ) 2,334,527
Effect of foreign exchange rate changes on cash and cash equivalents
37,098 50,141
Net increase in cash and cash equivalents
92,632 415,239
Cash and cash equivalents, beginning of the period
1,484,762 135,152
Cash and cash equivalents, end of the period
$ 1,577,394 $ 550,391
Supplemental cash flow information
Cash paid for interest
$ 80,695 $ 21,993
Cash paid for income taxes
$ 230,558 $ 517,118
Non-cash investing and financing activities:
Stock issued for debt conversion
$ $ 3,847,000

SOURCE: Newater Technology, Inc.

Un nouvel indice sur le bien-être animal vient bouleverser les classements précédents

Le Kenya et la Tanzanie émergent en tant que leaders mondiaux en matière de bien-être animal

SYDNEY, le 19 décembre 2017 /PRNewswire/ — Le Voiceless Animal Cruelty Index (VACI), ressource mondiale d’éducation interactive, suit la performance en termes de bien-être animal de cinquante pays — sélectionnés parmi les plus grands producteurs mondiaux de produits issus d’animaux d’élevage (vaci.voiceless.org.au). Ces pays représentent près de 80 % de la production mondiale d’animaux d’élevage.

Le nouvel indice vient compléter le World Animal Protection Index (API) publié en 2014. Tandis que l’API classait la qualité de la législation des différents pays en matière de bien-être animal, le VACI se focalise plus particulièrement sur le bien-être des animaux d’élevage. Ceci a permis d’effectuer un tout nouveau classement des pays : ainsi le Kenya, l’Inde, la Tanzanie et les Philippines viennent déloger l’Autriche, la Nouvelle-Zélande, la Suisse et le Royaume-Uni dans le haut du tableau de classement en matière de bien-être animal.

Près de 70 milliards d’animaux d’élevage sont abattus chaque année pour la consommation humaine à l’échelle mondiale. Ceci équivaut à 2 200 animaux par seconde. Le nombre d’animaux abattus à travers le monde enregistre actuellement une croissance rapide. À l’heure où la consommation de viande et de produits laitiers augmente, c’est également le cas de l’élevage industriel, dans lequel la cruauté envers les animaux est monnaie courante : la plupart des animaux d’élevage sont en permanence confinés dans des cages ou entassés en grand nombre, et par conséquent éprouvent des difficultés à se mouvoir ou à atteindre leur nourriture. Les bébés animaux sont mutilés sans analgésiques – la queue sensible, les dents et les organes génitaux des porcelets ainsi que les becs des poussins sont coupés, tout comme les cornes, la queue et les testicules des veaux – puisque c’est pratique, économique et, de manière alarmante, souvent autorisé par la loi.

D’après Ondine Sherman, cofondatrice et directrice générale de Voiceless : « Le VACI est un outil important de sensibilisation autour de la souffrance des animaux d’élevage à travers le monde. C’est une formidable ressource éducative, qui peut selon nous aider les éducateurs et les défenseurs du monde entier à apporter un changement positif pour les animaux. »

D’après Jeffrey M. Masson, auteur américain et défenseur des droits des animaux : « Le mouvement des droits des animaux a manqué pendant longtemps d’un indice fiable, nous indiquant comment se positionnent les pays en matière de cruauté envers les animaux : quel pays tue le plus d’animaux, consomme le plus de viande, possède la meilleure législation, et se montre le plus sensibilisé ? Et dans le même temps, quels changements pouvons-nous contrôler ? C’est une grande chance que Voiceless ait décidé de remédier à cette situation ! »

L’institut de protection animale Voiceless est un groupe de réflexion indépendant basé en Australie www.voiceless.org.au . Le VACI peut être consulté à l’adresse : vaci.voiceless.org.au

Contact :

Elaine Morris
elaine@voiceless.org.au

RWANDA’S NGOGA ELECTED SPEAKER OF EAST AFRICAN LEGISLATIVE ASSEMBLY

ARUSHA, TANZANIA, Martin Ngoga of Rwanda has been elected the new Speaker of the East African Legislative Assembly (EALA) here for a five-year term.

Ngoga garnered 33 votes out of the 36 ballots cast in an election which saw legislators from Tanzania and Burundi boycotting the exercise. Burundi’s candidate for the seat Leontine Nzeyimana won three votes while Adam Kimbisa from Tanzania obtained no vote.

The election of EALA Speaker was delayed on Monday after Tanzania fielded a candidate; a move that was opposed by fellow member States who argued that it was ineligible since Tanzania had held the position before.

However, on Tuesday only 36 out of the 54 legislators were present, with members from Tanzania and Burundi withdrawing from the exercise. The poll then proceeded to the second round since the winner had failed to get the automatic 36 votes representing two-thirds of the Assembly’s 54 members — nine from each of the six member States.

In the repeat vote, Ngoga managed 33 votes while Leontine Nzeyimana garnered three.

The election of the Speaker paves way for the Arusha-based Assembly to commence business which include approving budgets for the legislature of the East African Community (EAC), debating audit reports, performing an oversight function and initiating Bills in the assembly.

Kenya’s nine representatives to the assembly were sworn in on Monday after the Kenyan Parliament finally agreed on the list of nominees last week. They include former Kamukunji Member of Parliament Simon Mbugua, former Nyandarua Women’s representative Wanjiku Muhia, former Mandera North MP Aden Noor, former Tigania East legislator Mpuri Aburi, and Florence Jematia.

The others are former Bondo MP Oburu Odinga, former Balambala MP Abdikadir Aden, Former Wajir Women’s representative Fatma Ali Ibrahim and Kennedy Kalonzo Musyoka, a 30-year-old lawyer.

Source: NAM NEWS NETWORK

Funding From Germany Underpins WFP Cash Assistance To Conflict-Affected Iraqis

BAGHDAD � The United Nations World Food Programme (WFP) has welcomed a contribution of Euros 4.4 million (US$5.2 million) from the Government of Germany, which will provide cash-based assistance to almost a quarter of a million Iraqis for one month.

The German Government greatly appreciates its strong and effective partnership with WFP in Iraq, said Dr. Cyrill Nunn, Germany’s Ambassador to Iraq. WFP plays a critical role in providing life-saving assistance to the most vulnerable people in this country. With this additional contribution to WFP’s Emergency Operation, we reconfirm our commitment to those who are in desperate situations – they will not be forgotten.

This contribution will allow WFP to increase the scale and reach of cash-based transfers through WFP’s food assistance management system, known as SCOPE. This allows vulnerable Iraqis to buy nutritious foods of their choice from local shops. Every month, families are notified by text message that their electronic credit allocation of around Euros 15 euros (US$17) per family member has been reloaded. Using a WFP SCOPE card, they can withdraw cash from a local money transfer agency or pay for food in designated stores.

We’re grateful to the German Government for its contribution to assist Iraqis still affected by conflict, said Sally Haydock, WFP Representative and Country Director in Iraq. By giving cash assistance to families, we are giving them a broader choice in what they buy while helping strengthen the local food market.

Since 2014, Germany has contributed Euros 104 million (US$122 million) to WFP’s operations in Iraq. These funds have enabled WFP to provide nutritious food to the most vulnerable Iraqis and Syrian refugees every month.

Source: World Food Programme

Beware of criminal syndicates using social media

Home Affairs Minister Ayanda Dlodlo has warned members of the public to be vigilant against criminal syndicates operating on social networks.

According to the Minister, the impostors create numerous fake accounts not just for misinformation and to compromise personal data, which are common mischiefs on social media, but to extort money from unsuspecting patrons.

About a week ago, a fake account bearing the name of Minister Dlodlo was created as a platform to solicit money through a purported contract deal to the amount of R25 million.

The deal is said to be a business venture between Minister Dlodlo and another Cabinet minister, where a member of the public is asked for certain kind of information to qualify for a share of 50 percent in the purported transaction.

The Minister of Home Affairs is not involved in any deal of the nature described in this fake correspondence. In addition, the Department of Home Affairs will also never ask people to pay money through social media for any of their services and anyone who comes across such requests should report these to the authorities, the Minister said.

She said the department has detected and reported incidents of fake social media accounts attempting to solicit money from members to the Hawks for investigation.

Minister Dlodlo warned those who are involved in this illegal activity that the law will come down hard on them.

Social media networks are critical platforms for information flow and exchange around the globe. These are also dangerous hunting grounds for cyber criminals who are sparing no effort in using easy access of these networks for their nefarious deeds.

The Minister further urged members of the public who want to access online services offered by the department to always verify their sources and platforms using the security mechanisms provided by the department.

Meanwhile, Minister Dlodlo wished all South Africans a happy, safe and secure festive season.

Source: South African Government News Agency