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$IINX Ionix Technology, Inc. Announces Second Quarter 2020 Financial Results
Ionix Technology, Inc. (IINX), ("Ionix Technology", "IINX" or "the Company"), a business aggregator in photoelectric display and smart energy fields, announced its financial results for the three months ended December 31, 2019.

Second Quarter 2020 Financial Highlights:

The total revenues increased by $4,955,221 or 208% from the three months ended December 31, 2018 to the three months ended December 31, 2019.

Gross profit increased by 242% from the three months ended December 31, 2018 to the three months ended December 31, 2019.

During the three months ended December 31, 2019 and 2018, net income was $135,658 and $6,854, respectively.
“The financial results of the past four quarters fully demonstrated the benefits from our acquisition of Fangguan Electronics completed on December 27, 2018,” said Mr. Cheng Li, Chairman and CEO of Ionix Technology. “The solid operation results showed our successful integration after the acquisition. Also, our continuous investment in innovation helps Ionix Technology stay competitive in the photoelectric display industry.”

Mr. Li continued, “Currently, the epidemic of pneumonia caused by novel coronavirus is severe in China. With close attention continuously paid to the development of the Epidemic, we will diligently resume the operations and make proper arrangements for subsequent issues.”

Revenue

During the three months ended December 31, 2019 and 2018, total revenues were $7,332,968 and $2,377,747, respectively. The total revenues increased by $4,955,221 or 208% from the three months ended December 31, 2018 to the three months ended December 31, 2019.

Among the significant increase of $4,955,221 in total revenues for the three months ended December 31, 2019 compared to 2018, an increase of $5,770,431 can be directly attributed to the acquisition of Fangguan Electronics on December 27, 2018. The acquisition expanded operations in the fields of LCM in the PRC and significantly increased the volume of goods (LCD etc.) being sold.

The increase in total revenues due to acquisition of Fangguan Electronics was partially offset by the decreases of $815,210 related to the existing business (excluding Fangguan Electronics) for the three months ended December 31, 2019 compared to 2018. After Fangguan Electronics was acquired, all business of Fangguan Photoelectric was replaced by Fangguan Electronics, which caused total revenues to decrease by $1,041,165 for the three months ended December 31, 2019. In addition, the decreases were also the result of a decline in sales of portable power banks (the ever-primary produce of the Company before the acquisition) of $182,103 for the three months ended December 31, 2019, which is expected to be offset by increases in average sales prices as the Company increased emphasis on higher margin goods for these existing business (excluding Fangguan Electronics).

Cost of Revenue

During the three months ended December 31, 2019 and 2018, the total cost of revenues was $6,270,572 and $2,066,912, respectively. The total cost of revenues increased by $4,203,660 or 203% from the three months ended December 31, 2018 to the three months ended December 31, 2019.

Among the significant increase of $4,203,660 in total cost of revenues for the three months ended December 31, 2019 compared to 2018, an increase of $4,884,146 can be directly attributed to the acquisition of Fangguan Electronics on December 27, 2018.

The increase in total cost of revenues due to the acquisition of Fangguan Electronics was partially offset by the decreases of $680,485 related to the existing business (excluding Fangguan Electronics) for the three months ended December 31, 2019 compared to 2018. After Fangguan Electronics was acquired, all business of Fangguan Photoelectric was replaced by Fangguan Electronics, which caused total cost of revenues to decrease by $898,536 for the three months ended December 31, 2019. In addition, the decreases were also the result of a decline in cost of revenues of portable power banks (the ever-primary produce of the Company before the acquisition) of $64,934 for the three months ended December 31, 2019, which was in consistent with the decrease in sales of portable power banks.

Gross Profit

During the three months ended December 31, 2019 and 2018, the gross profit was $1,062,396 and $310,835, respectively. The gross profit increased by 242% from the three months ended December 31, 2018 to the three months ended December 31, 2019. Gross profit margin maintained at 14% during the three months ended December 31, 2019 as compared to 13% for the three months ended December 31, 2018.

https://finance.yahoo.com/news/ionix-technology-inc-announces-second-133010142.html