Fiscal Year 2019 Financial Highlights
| June 30, | June 30, | |||
| 2019 | 2018 | Variance | % | |
| Revenues | $ 9,275,386 | $ 6,554,939 | $ 2,720,447 | 42% |
| Cost of Goods Sold | $ 2,238,011 | $ 4,279,635 | ($2,041,624) | (48%) |
| Gross Profit | $ 7,037,375 | $ 2,275,304 | $ 4,762,071 | 209% |
| Net Income (Loss) | $ 3,307,039 | ($316,827) | $ 3,623,866 | |
| Net Income (Loss) per Share | $ 0.0505 | ($0.0043) | $ 0.0548 |
Revenues increased by $2,720,447, or 42%, for the year ended June 30, 2019 as compared to the year ended June 30, 2018.
Cost of sales decreased by $2,041,624 or 48% for the year ended June 30, 2019 as compared to the year ended June 30, 2018.
Our gross profit increased by $4,762,071 from $2,275,304 for the year ended June 30, 2018 to $7,037,375 for the year ended June 30, 2019.
Related Articles
Net income after provision for income taxes increased to $3,307,039, an increase of $3,623,866 for the year ended June 30, 2019, as compared to net loss of $316,827 for the year ended June 30, 2018.
Net income per share was $0.0505 for the year ended June 30, 2019 and net loss per share was $0.0043 for the year ended 2018.
Fiscal Year 2019 Financial Results
The following table summarizes the top lines of the results of our operations for the years ended June 30, 2019 and 2018, respectively:
| June 30, | June 30, | |||
| 2019 | 2018 | Variance | % | |
| Revenues | $9,275,386 | $6,554,939 | $2,720,447 | 42% |
| Humankind | 9,203,087 | 6,476,253 | 2,726,834 | 42% |
| HLJ Huimeijia | 72,299 | 78,686 | (6,387) | (8%) |
| Cost of Goods Sold | $2,238,011 | $4,279,635 | $(2,041,624) | (48%) |
| Humankind | 2,118,239 | 4,012,551 | (1,894,312) | (47%) |
| HLJ Huimeijia | 119,772 | 267,084 | (147,312) | (55%) |
| Gross Profit | $7,037,375 | $2,275,304 | $ 4,762,071 | 209% |
| Humankind | 7,084,848 | 2,463,702 | 4,621,146 | 188% |
| HLJ Huimeijia | (47,473) | (188,398) | 140,925 | (75%) |
| Net Income (Loss) | $3,307,039 | ( $316,827) | $3,623,866 | |
| Net Income (Loss) per Share | $0.0505 | ( $0.0043) | $0.0548 |
Revenue
Total revenues of the Company increased by $2,720,447, or 42%, for the year ended June 30, 2019 as compared to the same period in 2018. The increase in revenues was primarily due to an increase of $2,726,834 or 42% in Humankind's revenues and a decrease of $6,387 or 8% in HLJ Huimeijia's revenues for the year ended June 30, 2019 as compared to the same period in 2018. The increase in Humankind's sales revenues was primarily due to the increased demand for the new products.
Cost of Goods Sold
Our total cost of sales decreased by $2,041,624 or 48% for the year ended June 30, 2019 as compared to the same period in 2018. The decrease in the overall cost of sales was attributable to a decrease of $1,894,312 or 47% in Humankind's cost of sales in 2019 as compared to the same period in 2018. This decrease aligned with the decrease in sales volume of products sold by Humankind. The significant decline in the cost of the main business was mainly due to the lower unit cost of hemp derivative products and the fact that the old products such as Waterlilies Soft Capsules (Sailuozhi) and Propolis and Black Ant Capsules were no longer sold in the year ended June 30, 2019 compared with 2018.
Gross Profit
Our gross profit increased by $4,762,071 from $2,275,304 for the year ended June 30, 2018 to $7,037,375 for the year ended June 30, 2019. This change was consistent with the change in the main hemp derivative products which have higher gross margin than the old products in Humankind.
Net Income (Loss) and Net Income per Share
Net income after provision for income taxes increased to $3,307,039, an increase of $3,623,866 for the year ended June 30, 2019, as compared to net loss of $316,827 for the year ended June 30, 2018. The increase was primarily due to the increase of gross margin.
Net income per share was $0.0505 for the year ended June 30, 2019 and net loss per share was $0.0043 for the year ended 2018. This increase was primarily a result of the above increase in net income from the Company's continuing operations.
About Us
China Health Industries Holdings, Inc. (www.chinahealthindustries.com) is a holding company with the operations in its subsidiaries in China, specializing in research & development, production, marketing and distribution of hemp derivative products, medical drugs and health supplements.
China Health Industries owns GMP* certified plants and facilities, manufactures 21 CFDA approved medical drugs and 14 health supplement products covering five kinds of dosage forms, including soft capsule, hard capsule, tablet, granule and oral liquid. Our product series cover hemp derivative foods, hemp derivative medical drugs, externally used medical drugs and health supplements.
* GMP (Good Manufacturing Practice) is a term that is recognized worldwide for the control and management of manufacturing and quality control testing of foods and pharmaceutical products.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements". All statements other than statements of historical fact included herein are "forward-looking statements". These forward-looking statements are often identified by the use of forward-looking terminology such as "believes", "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties; thus, these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission ("SEC") and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Contact:
Company:
Melody Zhang
IR Contact:
China Health Industries Holdings, Inc.
Tel: 86-451-87170800 ext. 8869
Email: [email protected]
CHINA HEALTH INDUSTRIES HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Audited)
| June 30, | June 30, | |
| 2019 | 2018 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $35,507,535 | $ 32,614,910 |
| Accounts receivable, net | 1,987,505 | 1,455,433 |
| Inventory | 857,239 | 452,397 |
| Other receivables, net | 28,435 | 30,611 |
| Advances to suppliers | 8,619 | 94,749 |
| Prepayments | 15,868 | 20,462 |
| Total current assets | 38,405,201 | 34,668,562 |
| Property, plants and equipment, net | 3,719,424 | 3,724,490 |
| Intangible assets, net | 2,782,869 | 3,372,501 |
| Construction in progress | 835,452 | 1,134,834 |
| Deferred tax assets | 2,235 | 1,970 |
| Prepayments – Non-Current | 9,709 | 30,212 |
| Total assets | $45,754,890 | $ 42,932,569 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Accounts payable and accrued expenses | 497,084 | 400,109 |
| Other payables | 74,121 | 67,800 |
| Advances from customers | 153,613 | 163,459 |
| Related party debts | 6,962,520 | 6,393,730 |
| Wages payable | 265,686 | 234,668 |
| Taxes payable | 619,403 | 428,423 |
| Total current liabilities | 8,572,427 | 7,688,189 |
| Equity | ||
| Common stock, ($0.0001 par value per share, 300,000,000 shares authorized, 65,539,737 and | ||
| 65,839,737 shares issued and outstanding as of June 30, 2019 and June 30, 2018, respectively) | 6,554 | $ 6,554 |
| Additional paid-in capital | 521,987 | $ 521,987 |
| Accumulated other comprehensive income | (593,654) | $ 775,302 |
| Statutory reserves | 38,679 | $ 38,679 |
| Retained earnings | 37,208,897 | $33,901,858 |
| Total stockholders’ equity | 37,182,463 | $35,244,380 |
| Total equity | 37,182,463 | $35,244,380 |
| Total liabilities and equity | $45,754,890 | $42,932,569 |
CHINA HEALTH INDUSTRIES HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Audited)
| For the Year Ended | ||
| June 30, | June 30, | |
| 2019 | 2018 | |
| REVENUE | $ 9,275,386 | $6,554,939 |
| COST OF GOODS SOLD | 2,238,011 | 4,279,635 |
| GROSS PROFIT | 7,037,375 | 2,275,304 |
| OPERATING EXPENSES | ||
| Selling, general and administrative expenses | 1,864,636 | 2,246,327 |
| Depreciation and amortization expenses | 610,821 | 495,835 |
| Total operating expenses | 2,475,457 | 2,742,162 |
| INCOME (LOSS) FROM OPERATIONS | 4,561,918 | (466,858) |
| OTHER INCOME/(EXPENSES) | ||
| Interest income | 114,228 | 110,591 |
| Interest expense | (6) | (49,408) |
| Other income, net | 15,681 | 353,461 |
| Bank charges | (1,119) | (1,548) |
| Total other income, net | 128,784 | 413,096 |
| INCOME (LOSS) | 4,690,702 | (53,762) |
| Provision for income taxes | (1,383,663) | (263,065) |
| NET INCOME (LOSS) | 3,307,039 | (316,827) |
| Foreign currency translation adjustment | (1,368,956) | 853,351 |
| COMPREHENSIVE INCOME (LOSS) | $ 1,938,083 | $ 536,524 |
| Net income/(loss) per share: | ||
| Net income per share Basic & diluted | $ 0.0505 | $ (0.0048) |
| Weighted average shares outstanding: | ||
| Basic & diluted | 65,539,737 | 65,539,737 |
CHINA HEALTH INDUSTRIES HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Audited)
| Accumulated | ||||||||||||||||||||
| Additional | Other | Total | Non- | |||||||||||||||||
| Common Shares | Paid-in | Retained | Statutory | Comprehensive | Stockholders' | controlling | Total | |||||||||||||
| Shares | Amount | Capital | Earnings | Reserve | Income (loss) | Equity | Interest | Equity | ||||||||||||
| Balance, June 30, 2017 | 65,539,737 | $6,554 | $521,987 | $34,218,685 | $38,679 | $(78,049) | $34,707,856 | $- | $34,707,856 | |||||||||||
| Net income | - | - | - | (316,827) | - | - | (316,827 | ) | - | $(316,827 | ||||||||||
