Newater Technology, Inc.

CIK:0001678022|SEC Filings

Consolidated Statements of Income and Comprehensive Income - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Net revenues	$ 26,350,543	$ 23,716,978	$ 25,973,963
Net revenues from related parties	24,808,223	13,857,014	21,066,741
Total revenues	51,158,766	37,573,992	47,040,704
Cost of revenues	30,284,897	20,233,998	20,474,072
Cost of revenues from related parties	706,401	1,450,627	5,669,252
Total cost of revenues	30,991,298	21,684,625	26,143,324
Gross profit	20,167,468	15,889,367	20,897,380
Operating expenses:
Selling, general and administrative	13,143,993	10,148,039	12,025,924
Total operating expenses	13,143,993	10,148,039	12,025,924
Income from operations	7,023,475	5,741,328	8,871,456
Interest expense	1,757,396	1,087,051	658,290
Interest income	(73,344)	(38,328)	(26,632)
Government grants	(1,985,061)	(946,164)	(627,748)
Loss from equity method investments, net	560,969	17,023
Other expenses (income)	215,501	(153,546)	(1,162)
Total other expenses (income)	475,461	(33,964)	2,748
Income before income taxes provisions	6,548,014	5,775,292	8,868,708
Income tax provisions	985,253	1,463,745	1,657,279
Net income	5,562,761	4,311,547	7,211,429
Other comprehensive income (loss)
Foreign currency translation adjustment	2,311,620	(378,069)	(1,159,084)
Total comprehensive income	$ 7,874,381	$ 3,933,478	$ 6,052,345
Earnings per common share
Basic (in Dollars per share)	$ 0.51	$ 0.40	$ 0.67
Diluted (in Dollars per share)	$ 0.51	$ 0.40	$ 0.67
Weighted average common shares outstanding
Basic (in Shares)	10,809,000	10,809,000	10,809,000
Diluted (in Shares)	10,809,000	10,809,000	10,809,000

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net income	$ 5,562,761	$ 4,311,547	$ 7,211,429
Adjustments to reconcile net income to net cash used in operating activities:
Loss from equity method investments, net	560,969	17,023
Depreciation and amortization expense	2,159,715	1,549,296	558,327
Deferred income taxes	(220,332)	892,548	(118,199)
Allowance for credit losses	796,800	1,243,709	280,228
Amortization of debt issuance costs	161,911	324,221	103,772
Noncash lease expense	61,260	41,935
Loss on disposal of property, plant and equipment	35,587	1,367	13,256
Changes in assets and liabilities:
Accounts receivable, net	(6,683,358)	(1,509,728)	(5,327,278)
Accounts receivable - related parties, net	(5,915,753)	(1,103,104)	(1,427,078)
Notes receivable	262,542	(356,648)	(7,276)
Inventories	(3,791,230)	(2,923,465)	(5,762,750)
Deferred cost of revenue	223,880	117,910	383,382
Deferred cost of revenue - related party			1,765,856
Advances to suppliers and other current assets, net	(564,652)	(311,090)	(2,035,701)
Advances to suppliers and other current asset - related parties	(1,587,875)
Due from related parties
Retentions receivable, non-current	736,837	(397,157)	(358,505)
Deposit - related party		10,134	(10,583)
Accounts payable and bank acceptance notes to vendors	247,588	2,839,752	996,619
Accounts payable - related parties	(2,341,946)	1,896,054	3,269,238
Deferred income		43,433
Advances from customers	(2,855,229)	2,630,143	2,420,363
Advances from customers - related parties	(7,302,490)	6,733,465	(125,099)
Deferred income, non-current	(43,478)	43,433
Operating lease liabilities	(111,195)	(76,752)
Income tax payables	430,333	(404,231)	267,988
Accrued expenses and other payables	(2,455,366)	(2,322,199)	(4,481,539)
Net cash provided by (used in) operating activities	(22,632,721)	13,291,596	(2,383,550)
Cash flows from investing activities
Cash paid for long-term investment	(2,873,522)	(3,015,119)
Proceeds from disposal of long-term investment	4,574,914
Purchase of intangible asset	(143,491)
Purchase of property, plant and equipment	(1,355,101)	(2,316,967)	(5,511,732)
Proceeds from disposal of property, plant and equipment	40,805	427,261	22,072
Capital expenditure for property, plant and equipment	(5,862,026)		(73,227)
Deposit on acquisition of subsidiary			(200,000)
Net cash used in investing activities	(5,618,421)	(4,904,825)	(5,762,887)
Cash flows from financing activities
Proceeds from related parties	5,386,618
Repayment to related parties			(9,703)
Deposit on loan agreements		(503,939)	(473,698)
Collection of deposits on loan agreements	911,809
Proceeds from loans due within one year	25,405,697	7,454,711	11,493,557
Repayment of loans due within one year	(7,601,156)	(8,046,350)	(11,952,224)
Proceeds from long-term loans		6,376,169	8,631,493
Payment of debt issuance costs		(335,938)	(284,219)
Repayment of long-term loans	(5,762,171)	(7,736,415)	(730,595)
Net cash provided by (used in) financing activities	18,340,797	(2,791,762)	6,674,611
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	406,933	(124,050)	(404,956)
Net change in cash, cash equivalents and restricted cash	(9,503,412)	5,470,959	(1,876,782)
Cash, cash equivalents and restricted cash, beginning of the year	13,965,942	8,494,983	10,371,765
Cash, cash equivalents and restricted cash, end of the year	4,462,530	13,965,942	8,494,983
Supplemental cash flow information
Cash paid for interest	1,555,485	608,431	689,867
Cash paid for income taxes	775,240	977,755	1,507,489
Non-cash investing and financing activities:
Properties acquired with loans			52,161
Liabilities assumed in connection with purchase of property, plant and equipment	158,806	2,980,582	2,636,770
Operating expenses paid by related parties			9,703
Property, plant and equipment transferred from inventories	548,058	2,791,339	1,566,314
Property, plant and equipment transferred from advance to suppliers	72,850
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets
Cash and cash equivalents	4,462,530	9,944,765	2,461,501
Restricted cash		4,021,177	6,033,482
Total cash, cash equivalents and restricted cash	$ 4,462,530	$ 13,965,942	$ 8,494,983

Consolidated Balance Sheets - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 4,462,530	$ 9,944,765
Restricted cash	0	4,021,177
Accounts receivable, net	18,038,582	11,293,625
Accounts receivable - related parties, net	8,806,238	2,392,087
Notes receivable	107,235	360,505
Inventories	21,737,156	13,715,369
Deferred cost of revenue		221,737
Advance to suppliers and other current assets, net	6,196,694	4,515,435
Advance to suppliers and other current assets - related parties	1,678,462
Total current assets	61,026,897	46,464,700
Retentions receivable, non-current	4,651	734,140
Property, plant and equipment, net	22,538,664	24,611,862
Land use rights, net	2,093,873	2,008,096
Intangible asset, net	151,677
Operating lease right-of-use assets, net	93,848	141,016
Deposit on loan agreement		918,643
Long-term investments	1,074,142	2,997,419
Long-term prepaid expenses	6,252,109	184,320
Total assets	93,235,861	78,060,196
Current liabilities
Accounts payable and bank acceptance notes to vendors	8,922,232	8,099,529
Accounts payable - related parties	3,100,923	5,225,004
Loans due within one year	27,268,410	11,809,449
Due to related parties	5,785,045
Advances from customers	2,876,306	5,522,913
Advances from customers - related parties	23,898	7,254,968
Income tax payables	798,991	322,419
Accrued expenses and other payables	5,414,379	6,971,505
Operating lease liabilities, current	35,419	56,852
Deferred income, current	45,958	43,061
Total current liabilities	54,271,561	45,305,700
Deferred income, non-current		43,061
Deferred tax liabilities	75,204	288,687
Operating lease liabilities, non-current	37,604	68,420
Long-term loans, less current portion and unamortized debt issuance costs		1,377,217
Total non-current liabilities	112,808	1,777,385
Total liabilities	54,384,369	47,083,085
Shareholders’ equity
Common shares ($0.001 par value, 200,000,000 shares authorized,10,809,000 shares issued and outstanding as of December 31, 2020 and December 31, 2019)	10,809	10,809
Additional paid-in capital	26,303,348	26,303,348
Statutory reserves	2,941,715	2,267,219
Retained earnings	8,834,286	3,946,021
Accumulated other comprehensive income (loss)	761,334	(1,550,286)
Total shareholders’ equity	38,851,492	30,977,111
Total liabilities and shareholders’ equity	$ 93,235,861	$ 78,060,196