YANTAI, CHINA / ACCESSWIRE / September 17, 2018 / Newater Technology, Inc. (NEWA) (''NEWA,'' ''we,''''our'' or the ''Company''), a service provider and 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, 2018.
Six Months Ended June 30, 2018 Financial Highlights (all comparisons to the six months ended June 30, 2017 unless noted)
Revenues increased by 267.53% from $7.20 million to $26.48 million, which resulted from: 1) growing demand for the Company's products; 2) an increase in both the number of customers and the scale of projects; and 3) delivering wastewater treatment services.
Cost of goods sold increased by 142.90% from $5.28 million to $12.83 million due to: 1) the 267.53% 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 610.22% to $13.65 million compared to $1.92 million for the same period in 2017, while the gross profit margin was 51.54%, compared to 26.67% for the same period in 2017.
Operation expenses increased by 162.95% from $1.78 million to $4.69 million, and the percentage of operating costs compared to revenue decreased from 24.76% to 17.71%.
Operating income increased by 6,405.99% from $0.14 million to $8.96 million. Operating margin increased from 1.91% to 33.82%.
Basic and diluted earnings per share increased from $0.00 to $0.67.
Net cash provided by the operating activities increased from $1.18 million to $4.86 million. The net cash used in investing activities increased from $1.23 million to $6.74 million. The net cash provided by the financing activities was $6.24 million compared to net cash used in financing activities of $0.79 million for the same period in 2017. The total balance of cash, cash equivalents and restricted cash was $14.48 million as of June 30, 2018, compared to $10.37 million as of December 31, 2017.
''Newater delivered amazing financial results for the first half of 2018. Our revenues increased by 267.53% from $7.20 million to $26.48 million, while the cost of goods sold only increased by 142.90% and the operation expenses increased by 162.95%. This resulted in the 610.22% growth in our gross profit and 6,405.99% increase in our operating income, from $0.14 million for the six months ended June 30, 2017 to $8.96 million for the same period in 2018.'' said Ms. Zhuo Zhang, the CFO of the Company. ''We had solid net cash generated from operating activities, increasing from $1.18 million for the first six months in 2017 to $4.86 million for the same period in 2018. We also had a strong cash position, including cash, cash equivalents and restricted cash, with a total balance of $14.48 million as of June 30, 2018, compared to $10.37 million as of December 31, 2017.''
Mr. Yuebiao Li, the Company's Chairman and Chief Executive Officer commented, ''Even though our company is a young company, with only a 6-year history, we have grown tremendously. The number of employees grew from 4 at its inception to more than 230 at present. In 2018, we moved into our newly completed 8.07-acre industrial park from our old half-acre facility. Our automatic DTRO (Disk Tube Reverse Osmosis) production line will be completed by the end of 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 are expanding our market from North East China to the entirety of China. The current trade war between China and the U.S. has little impact on our business. We remain committed to innovation, research and development, which, we believe, strengthens our competitive advantage.In the first half of 2018, we continuously increased our spending on research and development. We are expanding the scale of our research and development projects; in addition, we are exploring new areas, such as zero-discharge treatment technology in coal mines.''
Operating Results for Six Months Ended June 30, 2018
We derive our revenues from (1) sale of products such as water purifying membranes and water purification equipment (''product revenues”); (2) sale of water purifying installation projects (''project revenues''); and (3) providing wastewater treatment services such as landfill leachate treatment and purification (''service revenues''). 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.