Ossen Innovation Co., Ltd. (NASDAQ:OSN)

SHANGHAI, March 23, 2020 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen Innovation" or the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that preliminary revenues, gross profit and net income attributable to Ossen Innovation for the full year 2019 are expected to be $138.9 million, $22.4 million and $10.9 million, compared to $136.1 million, $20.5 million and $10.4 million for the same period of last year.

The expected increase in revenue is primarily due to an increase in sales of rare earth coated PC sires and PC strands and other products, partially offset by a decrease in sales of plain surface PC strands. Gross margins in 2019 are expected to show a 102-basis points improvement, primarily due to the improvement of the profitability of rare earth coated products in 2019. The increase in net income attributable to Ossen Innovation in 2019 compared to 2018 was primarily due to the increase in the 2019 revenues.

The information set forth herein represents our preliminary estimated unaudited financial data for the year ended December 31, 2019, which is subject to revision based upon the completion of our year-end financial closing process and external audit of our results of operations for the same period. We are still in the process of completing our financial statements for the respective period. Therefore, it is possible that adjustments to the data presented herein will be made.

SHANGHAI, Aug. 27, 2019 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen Innovation" or the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced its financial results for the six months ended June 30, 2019.

"Because of the lowest Chinese GDP growth rate in recent years during the first half of 2019, our top line decreased slightly. Nonetheless, net income increased by 18.7% as we focused on higher margin products," stated Dr. Liang Tang, Chairman of Ossen Innovation. "Looking ahead, we expect to see an increase in investment in infrastructure construction across China. The successful IPO on the Hong Kong Stock Exchange of Pujiang International Group ('Pujiang'), a Cayman Islands company that indirectly owns 65.9% of the Company's issued and outstanding ordinary shares, has provided an additional resource of capital for us and is expected to enable us to capture additional opportunities to win new infrastructure projects."

For the six months ended June 30, 2019, revenues decreased by $4.9 million, or 7.1%, to $65.1 million from $70.0 million for the same period of last year. This decrease was mainly attributable to decrease in rare earth coated products, partially offset by increase in zinc coated products and plain surface and other products. The sales of rare earth coated PC steel materials were $23.1 million and accounted for 35.6% of total sales for the six months ended June 30, 2019. Sales of plain surface and other products were $28.0 million for the six months ended June 30, 2019. There were no sales of zinc coated products in the period ended June 30, 2018 and Sales of zinc coated products were $13.9 million for the six months ended June 30, 2019.

Gross profit increased by $0.1 million, or 2.0%, to $10.1 million for the six months ended June 30, 2019 from $10.0 million for the same period of last year. Gross margin increased by 1.3 percentage points to 15.6% for the six months ended June 30, 2019 from 14.3% for the same period of last year. Gross margins for rare earth products were 13.4% for the six months ended June 30, 2019, compared to 12.6% for the same period of last year. Gross margin for plain surface and other products was 15.5% for the six months ended June 30, 2019, compared to 22.9% for the same period of last year. Gross margin for zinc coated PC wires and PC strands was 19.3% for the six months ended June 30, 2019.

Selling expenses decreased by $44,862, or 25.5%, to $130,926 for the six months ended June 30, 2019 from $175,788 for the same period of last year. The decrease was due to less freight expenses, partial offset by higher sales commission. General and administrative expenses decreased by $0.4 million, or 13.8%, to $2.7 million for the six months ended June 30, 2019 from $3.1 million for the same period of last year.

As a result, total operating expenses decreased by $0.5 million, or 14.5%, to $2.8 million for the six months ended June 30, 2019 from $3.3 million for the same period of last year.

Operating income increased by $0.6 million, or 8.9%, to $7.3 million for the six months ended June 30, 2019 from $6.7 million for the same period of last year. The increase in operating income was primarily attributable to increase in gross profit and decrease in SG&A expenses. Operating margin was 11.2% for the six months ended June 30, 2019, compared to 9.6% for the same period of last year.

Net income increased by $1.0 million, or 19.4%, to $6.2 million for the six months ended June 30, 2019 from $5.2 million for the same period of last year.

After deducting net income attributable to non-controlling interest, net income attributable to Ossen Innovation increased by $0.9 million, or 18.7%, to $5.6 million for the six months ended June 30, 2019 from $4.8 million for the same period of last year. Earnings per share, both basic and diluted, were $0.29 for the six months ended June 30, 2018, compared to $0.24 for the same period of last year. Basic and diluted earnings per ADS were $0.87 for the six months ended June 30, 2019, compared with $0.72 for the same period of 2018.

Balance Sheet and Cash Flows

As of June 30, 2019, the Company had cash and restricted cash of $12.8 million, compared to $7.5 million at December 31, 2018. Accounts receivable were $55.7 million as of June 30, 2019, compared to $60.6 million at December 31, 2018. The average days of sales of outstanding (DSO) were 161 days for the six months ended June 30, 2019, compared to 150 days for the year of 2018. The increase in average DSO was primarily due to the longer cycle of some of our customers' construction projects. The balance of prepayment to suppliers for raw materials totaled $101.1 million as of June 30, 2019, compared to $70.0 million at December 31, 2018, due to the expectation of increasing demand of raw materials in the second half of 2019. The Company had inventories of $9.6 million as of June 30, 2019, compared to $17.2 million at the end of 2018. Total working capital was $119.6 million as of June 30, 2019, compared to $113.1 million at December 31, 2018.

Net cash used in operating activities was $13.5 million for the six months ended June 30, 2019, compared to net cash used in operating activities of $2.7 million for the same period of last year. This was primarily due to the increase in the balance of prepayment to suppliers for raw materials. Net cash used in investing activities was $74,216 for the six months ended June 30, 2019, compared to $67,419 for the same period of last year. Net cash provided by financing activities was $18.8 million for the six months ended June 30, 2019, compared to net cash provided by financing activities of $7.0 million for the same period of last year. This was primarily due to the increase in proceeds from short-term bank loans.

Recent Developments

On May 28, 2019, the Company announced a loan of HK$20 million (approximately US$2.6 million) from Pujiang. This loan is a portion of the proceeds received by Pujiang from its initial public offering in Hong Kong Stock Exchange. The annual interest rate of the loan is 8% and it has a one-year term. The Company used the proceeds of approximately $1.7 million to pay off the balance due to Dr. Liang Tang, the chairman of Ossen Innovation and approximately $0.9 million for general corporate purposes.

On June 26, 2019, the Company announced that its subsidiary, Ossen (Jiujiang) Innovation Materials Co., Ltd. ("Ossen Jiujiang"), borrowed funds pursuant to two loans in the aggregate principal amount of RMB 129.5 million (approximately US$18.9 million) from the Bank of Shanghai. Pujiang has provided the guarantees and cash collateral for such loans. The loans carry an annual interest rate of 3.915%. One loan has a term of six months and the other loan a term of one year. The Company anticipates that Ossen Jiujiang will be able to roll over these loans when they become due. Ossen Jiujiang expects to use the proceeds of such loans primarily for planned capital expenditures in the expansion of zinc coated production capacity.

SHANGHAI, June 26, 2019 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen Innovation" or the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that its subsidiary, Ossen (Jiujiang) Innovation Materials Co., Ltd. ("Ossen Jiujiang"), borrowed funds pursuant to two loans in the aggregate principal amount of RMB 129.5 million(approximately US$18.9 million) from the Bank of Shanghai.

Pujiang International Group Limited ("Pujiang"), a Cayman Islands company which is listed in Hong Kong and which indirectly owns 65.9% of Ossen Innovation, has provided the guarantees and cash collateral for such loans. The loans carry an annual interest rate of 3.915%. One loan has a term of six months and the other loan a term of one year. The Company anticipates that Ossen Jiujiang will be able to roll over these loans when they become due. Ossen Jiujiang expects to use the proceeds of such loans primarily for planned capital expenditures in the expansion of zinc coated production capacity.

SHANGHAI, May 28, 2019 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen Innovation" or the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced the loan of HK$20 million (approximately  US$2.6 million) from Pujiang International Group Limited ("Pujiang"), a Cayman Islands company indirectly owns 65.9% of Ossen Innovation.

This loan is a portion of the proceeds received by Pujiang from its initial public offering in Hong Kong Stock Exchange. The annual interest rate of the loan is 8% and it has a one-year term. The Company will use the proceeds of approximately $1.7 million for paying off the balance due to Dr. Liang Tang, the chairman of Ossen Innovation and approximately $0.9 million for general corporate purposes.

SHANGHAI, May 14, 2019 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen Innovation" or the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced its financial results for the fiscal year ended December 31, 2018.

"Ossen Innovation had a strong 2018 both in top line and bottom line," commented Dr. Liang Tang, Chairman of Ossen Innovation. "During the year, we focused on zinc coated products, which had higher demand in China market, and contributed to our improved results and overall momentum."

For the twelve months ended December 31, 2018, revenues increased by $3.7 million, or 2.8%, to $136.1 million from $132.4 million for 2017. This increase was mainly attributable to a 124.0% increase in sales of zinc coated PC wires and PC strands, partially offset by an 8.1% decrease in rare earth coated products, a 20.3% decrease in plain surface products and a 43.4% decrease in other products.

The sales of coated PC steel materials, including both rare earth and zinc coated products, increased by $5.8 million, or 4.7%, to $130.2 million and accounted for 95.7% of total sales for the twelve months ended December 31, 2018 from $124.4 million, or 94.0% of total sales, for the same period of last year. This increase in sales of coated PC steel materials was the result of increase in sales for zinc coated products, partially offset by the decrease in sales of rare earth coated products.  Sales of rare earth coated products decreased by $9.0 million, or 8.1%, to $103.4 million for the twelve months ended December 31, 2018 from $112.4 million for the same period of last year. Sales of zinc coated products increased by $14.8 million, or 124.0%, to $26.8 million for the twelve months ended December 31, 2018 from $12.0 million for the same period of last year. The decrease of sales generated by rare earth coated products was due to decreased market demand and the Company focused on the production and sale of zinc coated products which had increased market demand in 2018. Sales of plain surface PC strands and PC wires decreased by $1.2 million, or 20.3%, to $4.8 million for the twelve months ended December 31, 2018 from $6.0 million for the same period of last year. The decrease of sales generated by plain surface PC strands and PC wires was primarily due to decreased market demand during 2018. Other sales were $1.1 million for the twelve months ended December 31, 2018, compared to $1.9 million for the same period of last year. This decrease was primarily due to fewer scrap materials sold in 2018 compared to 2017 and the decrease of service revenue.

The Company generated approximately 3.3% and 4.1%, respectively, of total revenues during the years ended December 31, 2018 and 2017 from sales to customers in international markets, including primarily Vietnam, South Korea, Japan, New Zealand, Australia, Bangladesh, Brunei, Costa Rica, South Africa, Egypt, and Amman, primarily for use in the construction of bridges.

Gross profit increased by $5.8 million, or 40.0%, to $20.5 million for the twelve months ended December 31, 2018 from $14.7 million for the same period of last year. Gross margin increased by 400 basis points to 15.1% for the twelve months ended December 31, 2018 from 11.1% for the same period of last year. The increase of gross margin was primarily due to the increase of the prices of our prestressed steel products.

Selling expenses decreased by $0.3 million, or 45.3%, to $0.3 million for the twelve months ended December 31, 2018 from $0.6 million for the same period of last year. The decrease was due to lower freight and sales commission for export sales and lower transportation cost for domestic sales as more projects were in closer proximity in 2018. General and administrative expenses decreased by $0.7 million, or 12.3%, to $5.3 millionfor the twelve months ended December 31, 2018 from $6.0 million for the same period of last year, mainly due to lower research and development cost in 2018. As a result, total operating expenses decreased by $1.0 million, or 15.3%, to $5.6 million for the twelve months ended December 31, 2018 from $6.6 million for the same period of last year.

Operating income increased by $6.8 million, or 85.4%, to $14.9 million for the twelve months ended December 31, 2018 from $8.1 million for the same period of last year. This increase was primarily due to higher gross profit and lower operating expenses. Operating margin was 11.0% for the twelve months ended December 31, 2018, compared to 6.1% for the same period of last year.

Net income increased by $5.5 million, or 93.0%, to $11.4 million for the twelve months ended December 31, 2018 from $5.9 million for the same period of last year.

After deducting net income attributable to non-controlling interest, net income attributable to Ossen Innovation increased by $5.1 million, or 94.2%, to $10.4 million for the twelve months ended December 31, 2018 from $5.3 million for the same period of last year. Earnings per ordinary share, both basic and diluted, were $0.52 for the twelve months ended December 31, 2018, compared to $0.27 for the same period of last year. Earnings per ADS (one ADS equals to three ordinary shares), both basic and diluted, were $1.56and $0.81 for 2018 and 2017, respectively.

"In 2018, the PRC steel industry completed the process of reducing overcapacity which resulted in the increase of the average steel price," continued Dr. Tang. "We expect to continue being agile in responding to the market development and focusing on high demand products to continue the momentum."

Balance Sheet and Cash Flows

As of December 31, 2018, the Company had cash and restricted cash of $7.5 million, compared to $8.1 million at December 31, 2017. Accounts receivable were $60.6 million as of December 31, 2018, compared to $51.7 million at December 31, 2017. The average days of sales of outstanding (DSO) were 150 days for the twelve months ended December 31, 2018, compared to 123 days for the year 2017. The balance of prepayment to suppliers for raw materials totaled $70.0 million as of December 31, 2018, compared to $71.3 million at December 31, 2017. The Company had inventories of $17.2 million as of December 31, 2018, compared to $13.5 million at the end of 2017. Total working capital was $113.1 million as of December 31, 2018, compared to $114.7 millionat December 31, 2017.

Net cash provided by operating activities was $7.6 million for the twelve months ended December 31, 2018, compared to $3.0 million of net cash used by operating activities for the same period of last year. This was mainly due to an increase in net income, an increase in customer deposits, partially offset by an increase in accounts receivable and an increase in inventories at the end of 2018. Net cash used in investing activities was $72,305 for the twelve months ended December 31, 2018, compared to $37,848 for the same period of last year. Net cash used in financing activities was $0.7 million for the twelve months ended December 31, 2018, compared to $3.8 million for the same period of last year. The decrease in cash used in financing activities was the result of an increase in proceeds from short-term bank loans, a decrease in repayment of notes payable, partially offset by a decrease in proceeds from notes payable.

Recent Developments

On August 15, 2018, Effectual Strength Enterprises Limited ("Effectual Strength"), a British Virgin Islands company controlled by the Company's chairman, Liang Tang, purchased 600,000 shares from Fascinating Acme Development Limited, an entity controlled by the spouse of Wei Hua, our Chief Executive Officer, at a price of $2.582 per ADS, each ADS representing three Ordinary Shares; and 600,000 shares from Gross Inspiration Development Limited, an entity controlled by the spouse of Xufeng Zhou, our senior manager, at a price of $2.582 per ADS.

On October 2, 2018, Acme Innovation Limited, a British Virgin Islands company ("Acme") wholly owned by Pujiang International Group Limited, a Cayman Islands company ("Pujiang"), purchased 13,050,000 of our ordinary shares from Effectual Strength in exchange for the issuance of 54,404 shares of Pujiang to a British Virgin Islands Company Elegant Kindness Limited ("Elegant Kindness"), an entity wholly owned by Dr. Liang Tang. Consequently, Acme now holds 13,050,000 of our ordinary shares.

On December 11, 2018, Pujiang, the parent entity of Acme, submitted an application to the Hong Kong Stock Exchange (the "HK Exchange"), seeking approval of a potential listing of Pujiang's shares on the HK Exchange following a proposed initial public offering of Pujiang's shares. Such application is subject to the review of the HK Exchange.

On November 20, 2018, the Company announced the completion of its 2018 annual general meeting of shareholders. At the Annual Meeting, the Company's shareholders re-elected seven directors, Dr. Liang Tang, Mr. Wei Hua, Mr. Junhong Li, Mr. Xiaobing Liu, Ms. Yingli Pan, and Mr. Zhongcai Wu to the Board of Directors and re-appointed BDO China Shu Lun Pan Certified Public Accountants LLP as the Company's independent registered accounting firm for the fiscal year ending December 31, 2018.

SHANGHAI, Sept. 20, 2018 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen Innovation" or the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced its financial results for the six months ended June 30, 2018.

"Our first half of 2018 results exceeded our expectations and provided a strong beginning to the year for Ossen," stated Dr. Liang Tang, Chairman of Ossen Innovation. "During the six months period, we won a few more bridge projects in China that contributed to our sales results and positively impacted our growth, margins and profitability. As the Chinese government continues to reduce the overcapacity in steel industry and push forward on infrastructure projects around the country, we continue to increase our efforts to win multiple infrastructure projects and further solidify our position as a market leader."

For the six months ended June 30, 2018, revenues increased by $18.0 million, or 34.6%, to $70.0 million from $52.0 million for the same period of last year. This increase was mainly attributable to increase in rare earth coated products and plain surfaced and other products and partially offset by decrease in zinc coated products. The sales of rare earth coated PC steel materials were $58.4 million and accounted for 83.4% of total sales for the six months ended June 30, 2018. Sales of plain surface and other products were $11.7 million for the six months ended June 30, 2018. There were no sales of zinc coated products in this period.

Gross profit increased by $5.2 million, or 109.4%, to $10.0 million for the six months ended June 30, 2018 from $4.8 million for the same period of last year. Gross margin increased by 5.1 percentage points to 14.3% for the six months ended June 30, 2018 from 9.2% for the same period of last year. Gross margins for rare earth products were 12.6% for the six months ended June 30, 2018, compared to 7.2% for the same period of last year. Gross margin for plain surface and other products was 22.9% for the six months ended June 30, 2018, compared to19.4% for the same period of last year.

Selling expenses decreased by $0.1 million, or 36.8%, to $0.2 million for the six months ended June 30, 2018 from $0.3 million for the same period of last year. The decrease was due to less freight expenses related to export. General and administrative expenses increased by $0.9 million, or 43.4%, to $3.1 million for the six months ended June 30, 2018 from $2.2 million for the same period of last year. The increase was due to higher research and development expenses.

As a result, total operating expenses increased by $0.8 million, or 34.3%, to $3.3 million for the six months ended June 30, 2018 from $2.4 million for the same period of last year.

Operating income increased by $4.4 million, or 188.2%, to $6.7 million for the six months ended June 30, 2018 from $2.3 million for the same period of last year. The increase in operating income was primarily attributable to increase in gross profit and partially offset by increase in general and administrative expenses. Operating margin was 9.6% for the six months ended June 30, 2018, compared to 4.5% for the same period of last year.

Net income increased by $3.8 million, or 275.1%, to $5.2 million for the six months ended June 30, 2018 from $1.4 million for the same period of last year.

After deducting net income attributable to non-controlling interest, net income attributable to Ossen Innovation increased by $3.5 million, or 291.7%, to $4.8 million for the six months ended June 30, 2018from $1.2 million for the same period of last year. Earnings per share, both basic and diluted, were $0.24 for the six months ended June 30, 2018, compared to $0.06 for the same period of last year. Basic and diluted earnings per ADS were $0.72 for the six months ended June 30, 2018, compared with $0.18 for the same period of 2017.

SHANGHAI, May 16, 2018 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen Innovation" or the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced its financial results for the fiscal year ended December 31, 2017.

"We saw the improvement in the past year and we were able to increase our revenues by 13.1% as a result of the increase in sales of both coated and plain surface products and net income by 10.8%. Looking ahead, with the efforts of Chinese government to reduce the overcapacity of steel industry, we are optimistic about the medium to long term outlook of the industry," commented Dr. Liang Tang, Chairman of Ossen Innovation.

For the twelve months ended December 31, 2017, revenues increased by $15.4 million, or 13.1%, to $132.4 million from $117.0 million for 2016. This decrease was primarily due to a 10.9% increase in sales of rare earth coated PC wires and PC strands, a 46.1% increase in zinc coated PC wires and PC strands, and a 14.9% increase in plain surface PC strands, partially offset by a 13.2% decrease in other products.

The sales of coated PC steel materials, including both rare earth and zinc coated products, increased by $14.8 million, or 13.6%, to $124.4 million and accounted for 94% of total sales for the twelve months ended December 31, 2017 from $109.6 million, or 93.6% of total sales, for the same period of last year. This increase in sales of coated PC steel materials was the result of increase in sales for both rare earth coated products and zinc coated products.  Sales of rare earth coated products increased by $11.1 million, or 10.9%, to $112.4 million for the twelve months ended December 31, 2017 from $101.4 million for the same period of last year. Sales of zinc coated products increased by $3.8 million, or 46.1%, to $12.0 million for the twelve months ended December 31, 2017 from $8.2 million for the same period of last year. Sales of plain surface PC strands and PC wires increased by $0.8 million, or 14.9%, to $6.0 million for the twelve months ended December 31, 2017 from $5.3 million for the same period of last year. The increase of sales generated by plain surface PC strands and PC wires was primarily due to to favorable wholesale market demand during the period. Other sales were $1.9 million for the twelve months ended December 31, 2017, compared to $2.2 million for the same period of last year. This decrease was primarily due to fewer spare raw materials sold in 2017 compared to 2016 and the decrease of service revenue.

The Company generated approximately 4.1% and 4.2%, respectively, of total revenues during the years ended December 31, 2017 and 2016 from sales to customers in international markets including primarily Vietnam, South Korea, Japan, New Zealand, Australia, Bangladesh, Brunei, Costa Rica, South Africa, and Chile, primarily for use in the construction of bridges.

Gross profit decreased by $1.4 million, or 9%, to $14.7 million for the twelve months ended December 31, 2017 from $16.1 million for the same period of last year. Gross margin decreased by 270 basis points to 11.1% for the twelve months ended December 31, 2017 from 13.8% for the same period of last year. The decrease of gross margin was primarily due to the increase of the price of raw materials and due to the fact that the orders for plain surface products were mainly wholesale orders, which normally have lower gross profit margin than the retail orders in 2016. Gross margins for rare earth and zinc coated products were 10.0% and 9.5%, respectively, for the twelve months ended December 31, 2017, compared to 11.3% and 14.7%, respectively, for the same period of last year. Gross margin for plain surface PC strands and PC wires was 7.0% for the twelve months ended December 31, 2017, compared to 22.6% for the same period of last year.

Selling expenses decreased by $0.1 million, or 18.4%, to $0.6 million for the twelve months ended December 31, 2017 from $0.7 million for the same period of last year. The decrease was due to lower sales commission and lower transportation cost. General and administrative expenses decreased by $0.4 million, or 5.9%, to $6.0 million for the twelve months ended December 31, 2017 from $6.4 million for the same period of last year, mainly due to lower bad-debt provision, partially offset by higher research and development cost in 2017. As a result, total operating expenses decreased by $0.5 million, or 7.2%, to $6.6 million for the twelve months ended December 31, 2017 from $7.1 million for the same period of last year.

Operating income decreased by $0.9 million, or 10.4%, to $8.1 million for the twelve months ended December 31, 2017 from $9.0 million for the same period of last year. This decrease was primarily due to lower gross profit partially offset by lower operating expenses. Operating margin was 6.1% for the twelve months ended December 31, 2017, compared to 7.7% for the same period of last year.

Net income increased by $0.6 million, or 10.8%, to $5.9 million for the twelve months ended December 31, 2017 from $5.3 million for the same period of last year.

After deducting net income attributable to non-controlling interest, net income attributable to Ossen Innovation increased by $0.5 million, or 10.8%, to $5.3 million for the twelve months ended December 31, 2017 from $4.8 million for the same period of last year. Earnings per ordinary share, both basic and diluted, were $0.27 for the twelve months ended December 31, 2017, compared to $0.24 for the same period of last year. Earnings per ADS (one ADS equals to three ordinary shares), both basic and diluted, were $0.81 and $0.72 for 2017 and 2016, respectively.

Balance Sheet and Cash Flows

As of December 31, 2017, the Company had cash and restricted cash of $8.0 million, compared to $6.9 million at December 31, 2016. Notes receivable were nil as of December 31, 2017, compared to $15.3 million at December 31, 2016. Accounts receivable were $51.7 million as of December 31, 2017, compared to $37.3 million at December 31, 2016. The average days of sales of outstanding (DSO) were 123 days for the twelve months ended December 31, 2017, compared to 126 days for the year 2016. The balance of prepayment to suppliers for raw materials totaled $71.3 million as of December 31, 2017, compared to $46.7 million at December 31, 2016. The Company had inventories of $13.5 million as of December 31, 2017, compared to $26.0 million at the end of 2016. Total working capital was $114.7 million as of December 31, 2017, compared to $101.6 million at December 31, 2016.

Net cash used by operating activities was $3.0 million for the twelve months ended December 31, 2017, compared to $15.5 million provided by operating activities for the same period of last year. This was the result of an increase in accounts receivable, an increase in advance to suppliers, partially offset by a decrease in inventories and a decrease in notes receivable. Net cash used in investing activities was $37,848 for the twelve months ended December 31, 2017, compared to $17,537 for the same period of last year. Net cash used in financing activities was $4.3 million for the twelve months ended December 31, 2017, compared to $7.5 million for the same period of last year. The decrease in cash used in financing activities was the result of a decrease in proceeds from notes payable, a decrease in proceeds from short-term bank loans, and a decrease in proceeds from long-term bank loans, partially offset by a decrease in repayments of bond payable, a decrease in repayment of notes payable and a decrease in repayments of short-term bank loans.

Recent Developments

On July 19, 2017, Ossen entered into a Share Exchange Agreement (the "SEA") with the shareholders (the "Selling Shareholders") of America-Asia Diabetes Research Foundation (the "Foundation"), a California corporation that owns 90.27% of the equity interests of San MediTech (Huzhou) Co. Ltd. ("San MediTech"), a China-based medical device company engaged in the research, development and marketing of glucose control products. Pursuant to the SEA, Ossen agreed to acquire all of the issued and outstanding equity interests of the Foundation in exchange for 81,243,000 of Ossen's ordinary shares (the "Acquisition"). Upon completion of the Acquisition, Ossen would indirectly own 90.27% of San MediTech. San MediTech's proprietary Dynamic Glucose Monitoring System ("DGMS") provides continuous, real-time monitoring of glucose level in diabetes patients, with two patents granted in China and several patents pending both in China and the U.S. DGMS has been approved by the China Food and Drug Administration and has entered into clinical trials in the U.S. for DGMS.

In connection with the Acquisition, Ossen agreed to sell its existing pre-stressed steel manufacturing business, including all existing liabilities, immediately following the completion of the Acquisition. An entity affiliated with Dr. Liang Tang, the Chairman of the board of Ossen, agreed to acquire all of the equity of Ossen's wholly-owned subsidiary, which indirectly owns all of Ossen's existing operating subsidiaries, in exchange for the forfeiture and cancellation of all 11,850,000 ordinary shares currently held by Dr. Tang (the "Sale Transaction").

On May 8, 2018, Ossen announced the termination of the SEA. The Foundation and its shareholders failed to satisfy the closing conditions set forth in the SEA. As a result, the Company terminated the SEA. In connection therewith, the sale transaction is deemed terminated.

On December 12, 2017, the Company announced the completion of its 2017 annual general meeting of shareholders. At the Annual Meeting, the Company's shareholders re-elected seven directors, Dr. Liang Tang, Mr. Wei Hua, Mr. Junhong Li, Mr. Xiaobing Liu, Ms. Yingli Pan, and Mr. Zhongcai Wu to the Board of Directors and re-appointed BDO China Shu Lun Pan Certified Public Accountants LLP as the Company's independent registered accounting firm for the fiscal year ending December 31, 2017.

SHANGHAI, Nov. 15, 2017 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it has entered into the second amendment to the Share Exchange Agreement (the "Exchange Agreement") with America-Asia Diabetes Research Foundation (the "Foundation"), a California corporation that owns 90.27% of the equity interests of San MediTech (Huzhou) Co. Ltd. ("San MediTech"), a China-based medical device company engaged in the research, development and marketing of glucose control products, and the shareholders of the Foundation (the "Selling Shareholders").

On November 7, 2017, San MediTech's new mobile dynamic continuous glucose monitoring ("CGM") system has been approved by the China Food and Drug Administration (the "CFDA"). As previously disclosed, due to the delay of the CFDA's approval for the new generation product and the expiration of the old generation products' CFDA license earlier this year, San MediTech's sales in 2017 had been adversely affected; thus, the previously agreed earn-out target was impractical. On November 13, 2017, the Company entered into the second amendment to the Exchange Agreement with the Foundation (the "Second Amendment"). Pursuant to the Second Amendment, (a) the revenue target of $6,470,588 was changed from year 2017 to year 2018, and (b) in the event that there is a termination of the Exchange Agreement by the Company pursuant to certain conditions, Howard Gang Hao and Ken Yiming Hao, principle shareholders of the Foundation, shall jointly and severally, (i) transfer to the Company 3,434 ordinary shares of the Foundation or (ii) pay to the Company a termination fee in cash equal to the fair market value of 3,434 ordinary shares of the Foundation but not less than $5,600,000 (the "Sellers Termination Fee"). The Company intends to file amended proxy and hold another special shareholders' meeting for shareholders to vote on the Second Amendment.

SHANGHAI, Sept. 6, 2017 /PRNewswire/ -- Ossen Innovation Co., Ltd. (the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, is pleased to announce the final voting results for each of the proposals considered at the Company's special meeting that was held on September 5, 2017 (the "Meeting"). At the Meeting, the Company's shareholders approved the Company's proposed acquisition of American-Asia Diabetes Research Foundation and the sale of the Company's existing business and operations to an affiliate of the Company's Chairman, Dr. Liang Tang.

A total of 17,333,601 ordinary shares, representing approximately 87.6% of the Company's issued and outstanding ordinary shares, were represented at the Meeting. Dr. Tang abstained from voting all of the 11,850,000 shares he holds, as previously disclosed by the Company.

SHANGHAI, July  20, 2017 /PRNewswire/ -- Ossen Innovation Co., Ltd. (the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it has entered into a Share Exchange Agreement (the "Exchange Agreement") with America-Asia Diabetes Research Foundation (the "Foundation"), a California corporation that owns 90.27% of the equity interests of San MediTech (Huzhou) Co. Ltd. ("San MediTech"), a China-based medical device company engaged in the research, development and marketing of glucose control products, and the shareholders of the Foundation (the "Selling Shareholders"). Pursuant to the Exchange Agreement, the Company has agreed to acquire all of the issued and outstanding equity interests of the Foundation in exchange for up to 81,243,000 of the Company's ordinary shares (the "Acquisition").

Transaction Details

Upon completion of the Acquisition, the Company will indirectly own 90.27% of San MediTech. San MediTech's proprietary Dynamic Glucose Monitoring System ("DGMS") provides continuous, real-time monitoring of glucose level in diabetes patients.

In addition, the Company entered into an agreement (the "Spin-Off Agreement") to spin-off its existing pre-stressed steel manufacturing business, including all existing liabilities, immediately following the completion of the Acquisition. Pursuant to the Spin-Off Agreement, an entity affiliated with Dr. Liang Tang, Chairman of the Company, will acquire all of the equity of the Company's wholly-owned subsidiary, which indirectly owns all of the Company's existing operating subsidiaries, in exchange for the forfeiture and cancellation of all 11,850,000 ordinary shares of the Company currently held by Dr. Tang (the "Spin-off Transaction").

An aggregate of 28,095,454 of the Company's shares will be deposited in escrow at the closing of the Acquisition including (i) 24,372,900 of such shares (the "earn-out shares") subject to forfeiture in the event that the post-combination company fails after the closing to achieve RMB 44 million of revenue in 2017 and (ii) an additional 3,722,554 of such shares subject to forfeiture in the event that the Company's representative under the Exchange Agreement  successfully brings an indemnification claim under the Exchange Agreement on behalf of the Company's shareholders.

It is anticipated that, following completion of the Acquisition and the Spin-Off (collectively, the "Transactions"), the Company's existing shareholders (excluding Dr. Tang) will retain an ownership interest of approximately 8.9% of the Company (or approximately 12.25% in the event that the earn-out shares are forfeited), current members of the Company's management or affiliates of the Company (excluding Dr. Tang) will own approximately 1.35% (or approximately 1.85% in the event that the earn-out shares are forfeited), and the selling shareholders of AADRF will own approximately 91.10%, of the outstanding equity of the Company (or approximately 87.75% in the event that the earn-out shares are forfeited).

The Transactions are subject to the satisfaction of customary closing conditions, including shareholder approvals and the Company's continued listing on the Nasdaq Capital Market. The Transactions are expected to close promptly following the Company's special shareholders' meeting to approve the Transactions. 

The description of the Transactions contained herein is only a summary and is qualified in its entirety by reference to the Exchange Agreement and the Spin-Off Agreement, copies of which will be filed by the Company with the Securities and Exchange Commission (the "SEC") as exhibits to a Report on Form 6-K.

First Quarter 2017 Financial Results

• For the three months ended March 31, 2017, revenues decreased by $4.5 million, or 15.0%, to $25.6 million from $30.1 million for the same period of last year.
• Net income decreased by $0.5 million, or 82.3%, to $0.1 million for the three months ended March 31, 2017 from $0.6 million for the same period of last year

Dr. Liang Tang, Chairman of Ossen Innovation, commented, "The economic headwinds and sluggish industry demand continued to drag on our business, leading to a 15% decline in revenues in the first quarter. The decline in revenues also reflected a further scale-back of our plain surface PC strands and PC wires business in light of its gross margin deterioration in recent quarters. Gross and operating margins also decreased by 3.5 and 3.1 percentage points, respectively, highlighting continuing pricing pressure.  Looking ahead, we remain cautious on our near-term outlook."

SHANGHAI, April 10, 2017 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen Innovation" or the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced its financial results for the fiscal year ended December 31, 2016.

• For the twelve months ended December 31, 2016, revenues decreased by $0.9 million, or 0.7%, to $117.0 million from $117.9 million for 2015. This decrease was primarily due to decreases in sales from zinc coated products and plain surface PC strands and other products and partially offset by increased sales from rare earth coated products.
• EPS was $0.24 vs 2015 $0.30.

"We saw slight dip in 2016 revenues as we continued to scale-back our plain surface PC strands business in light of its gross margin deterioration in recent quarters. However, revenues from the coated products snapped back after a down year in 2015 and grew 14.8% in 2016 as a result of the increase in sales volume that more than offset the decrease in average selling price for coated products. We remain cautious on our near-term outlook on the back of continuing headwinds facing the Chinese economy and our industry," commented Dr. Liang Tang, Chairman of Ossen Innovation.

SHANGHAI, Jan. 3, 2017 /PRNewswire/ -- As previously announced on August 4, 2016, the Board of Directors (the "Board") of Ossen Innovation Co., Ltd. ("Ossen Innovation" or the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, formed a special committee of the Board (the "Special Committee") to evaluate a non-binding term sheet pursuant to which the Company would (i) acquire all of the equity of American-Asia Diabetes Research Foundation (the "Foundation") and (ii) spin off the current assets of the Company to a buyer group led by Dr. Liang Tang, Chairman of the Company (collectively, the "Proposed Transactions"). The execution of such term sheet had been announced on July 8, 2016.

The Company hereby announces that the Special Committee has retained Highline Research Advisors LLC ("HRA"), acting through Corinthian Partners, LLC, as its financial advisor in connection with the review and evaluation of the Proposed Transactions.

The Special Committee may solicit expressions of interest or consider an alternative transaction. There can be no assurance that any definitive agreement will be reached in connection with the Proposed Transactions, or that the Proposed Transactions or any other transaction will be approved by the Special Committee, the Board and the shareholders of the Company, or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

SHANGHAI, Dec. 30, 2016 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen Innovation" or the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that its Chief Financial Officer ("CFO"), Mr. Feng Peng, has resigned from the Company, effective December 31, 2016, to pursue other opportunities. Mr. Peng's resignation is not related to any issues regarding financial disclosures or accounting matters. Mr. Wei Hua, Chief Executive Officer of the Company will act as interim CFO during the transition and search period for a new CFO.

Dr. Liang Tang, Chairman of Ossen Innovation, said, "On behalf of the Company, I want to thank Feng for his many contributions to Ossen Innovation during his almost four years with us.  Feng is well-liked and respected by everyone throughout the Company and will be truly missed. I wish him all success in his future endeavors."  

Third Quarter 2016 Financial Results

• Revenues decreased by $1.4 million, or 4.8%, to $28.5 million from $30.0 million for the same period of last year.
• EPS was $0.07 vs. last years $0.16.

Dr. Liang Tang, Chairman of Ossen Innovation, commented, "Our third quarter results reflected continued weakness in China's macro economy. The 4.8% decrease in total revenues in the third quarter was mainly due to a scale-back of plain surface PC strands sales as its gross margin has been on a downslide in recent quarters. However, sales of rare earth coated products remained strong in the third quarter with sales volume increasing by 42.6% to 67,170 tons, the highest level in recent years and more than offset the decrease in its average selling price. Looking ahead, we remain cautious in our viewpoint as signs of meaningful improvement in macro and industry fundamentals remain elusive in the near term."

SHANGHAI, Sept. 7, 2016 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it received notice from The Nasdaq Stock Market LLC ("NASDAQ") that it has regained compliance with NASDAQ Marketplace Rule 5550(a)(2) (the "Rule"), which requires that the closing bid price per share of a listed company be at least $1.00 per share.

As previously announced, on September 17, 2015, NASDAQ notified the Company that the bid price of its American Depositary Shares (the "ADS's") had closed at less than $1.00 per share over the previous 30 consecutive business days and, as a result, the Company was not in compliance with the Rule. On March 17, 2016, NASDAQ notified the Company that the Company had until September 12, 2016 in which to regain compliance with the Rule.

On September 6, 2016, NASDAQ notified the Company that the closing bid price of the ADS's had been $1.00 per ADS or greater for more than 10 consecutive business days, from August 22, 2016 to September 2, 2016. Accordingly, the Company has regained compliance with the Rule.

SHANGHAI, Aug. 16, 2016 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen Innovation" or the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced a ratio change for the Company's American Depositary Receipt ("ADR") program. As a result, the number of the Company's ordinary shares represented by each American Depositary Share ("ADS") will be changed from one (1) ordinary share to three (3) ordinary shares (the "Ratio Change"). The effective date of the Ratio Change is expected to be August 22, 2016.

To effect this ratio change, ADS holders will be required to exchange their existing ADSs for new ADSs on the basis of one (1) new ADS for every three (3) existing ADSs surrendered. If the aggregate number of ADSs to which a holder is entitled results in a fractional ADS, such fractions will be sold, if possible, and the net proceeds, if any, will be distributed to such holder.

For Ossen's ADS holders, this Ratio Exchange will have the same effect as a one-for-three reverse split. No new ordinary shares will be issued in connection with the Ratio Change and Ossen's ADSs will continue to be traded on the Nasdaq Capital Market under the symbol "OSN".

The Ratio Change is aimed to bring the price of the ADSs into compliance with NASDAQ Marketplace Rule 5550(a)(2) (the "Rule"), which requires that the closing bid price per share of a listed company be at least $1.00 per share. As a result of this Ratio Change, the ADS price is expected to automatically increase proportionally, although the Company can give no assurance that the post-change ADS price will be equal to or greater than the pre-change ADS price multiplied by three (3).

SHANGHAI, August 4, 2016 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen Innovation" or the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that the Company's Board of Directors, with the unanimous agreement of all directors, has formed a special committee of the Board consisting exclusively of independent directors to evaluate the non-binding term sheet that sets forth a proposal to (i) acquire all of the equity of American-Asia Diabetes Research Foundation (the "Foundation") and (ii) spin off the current assets of the Company to a buyer group led by Dr. Liang Tang, Chairman of the Company (the "Proposed Transaction").

The Board has granted the special committee the exclusive authority to consider, review, evaluate and actively negotiate the terms and conditions of the Proposed Transaction on behalf of the Company. In addition, the Board has granted the special committee the authority, when considering such transaction, to solicit expressions of interest or other proposals for, and to consider, any alternative transactions.

The special committee is composed of Junhong Li, Yingli Pan and Zhongcai Wu, the Company's independent directors. Junhong Li will serve as chair of the special committee. The special committee intends to retain, wherever is appropriate, legal counsel and financial advisor to advise the special committee with respect to the Proposed Transaction.

SHANGHAI, July  8, 2016 /PRNewswire/ -- Ossen Innovation Co., Ltd. (the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it has entered into a non-binding letter of intent (the "LOI") with America-Asia Diabetes Research Foundation (the "Foundation"), a California corporation that owns 90.27% of the equity interests of San MediTech (Huzhou) Co. Ltd. ("San MediTech"), a China-based medical device company engaged in the research, development and marketing of glucose control products, and the shareholders of the Foundation (the "Selling Shareholders").  Pursuant to the LOI, the Company intends to acquire all of the issued and outstanding equity interests of the Foundation in exchange for 81,243,000 of the Company's ordinary shares (the "Acquisition").

Upon completion of the Acquisition, the Company would indirectly own 90.27% of San MediTech. San MediTech's proprietary Dynamic Glucose Monitoring System ("DGMS") provides continuous, real-time monitoring of glucose level in diabetes patients, with two patents granted in China and several patents pending both in China and the U.S. DGMS has been approved by the China Food and Drug Administration and has entered into clinical trials in the U.S. for DGMS.

In connection with the Acquisition, the Company plans to spin-off its existing pre-stressed steel manufacturing business, including all existing liabilities, immediately following the completion of the Acquisition. It is expected that an entity affiliated with Dr. Liang Tang, Chairman of the Company, will acquire all of the equity of the Company's wholly-owned subsidiary, which indirectly owns all of the Company's existing operating subsidiaries, in exchange for the forfeiture and cancellation of all 11,889,500 ordinary shares of the Company currently held by Dr. Tang (the "Spin-off Transaction"). The exact structure of the Spin-off Transaction will be subject to negotiations between the Company and Dr. Tang. 

It is expected that if the Acquisition and Spin-Off Transaction are consummated as currently contemplated, the current shareholders of the Company, other than the Chairman, will own approximately 8.9% of the issued and outstanding ordinary shares of the Company following the consummation of such transactions and the Selling Shareholders will own approximately 91.1% of the issued and outstanding ordinary shares.  

The Acquisition and the Spin-off Transaction are subject to due diligence investigations by the relevant parties, the negotiation and execution of definitive agreements, the Company's receipt of shareholder approval of the transactions and all necessary regulatory approvals, and the satisfaction of other customary closing conditions. 

SHANGHAI, April 28, 2016 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that the Company's Board of Directors has authorized the extension of its repurchase plan of up to 500,000 shares of the Company's American Depositary Receipts ("ADSs"), for an additional twelve months to May 2017.

Shares may be repurchased in the open market at prevailing market prices and/or in negotiated transactions off the market from time to time as market conditions warrant in accordance with applicable requirements of Rule 10b5-1 and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended.

Dr. Liang Tang, Chairman of Ossen Innovation stated:" The extension of stock repurchase program underscores the Board of Directors' confidence in Ossen Innovation. We believe the extension is in the best interests of our stockholders and our commitment to enhance long term stockholder value, as we believe our stock is currently undervalued."

SHANGHAI, March 18, 2016 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced it received a letter from NASDAQ (the "NASDAQ Notice"), granting the Company an additional 180-day period, or until September 12, 2016, to regain compliance with NASDAQ's minimum $1.00 bid price per share rule (the "Bid Price Rule") for continued listing on the NASDAQ Capital Market.

The NASDAQ Notice, dated March 17, 2016, notified the Company that while the Company had not regained compliance with the Bid Price Rule, it was eligible for an additional 180-day grace period, until September 12, 2016 (the "Expiration Date"), to regain compliance with the Bid Price Rule. NASDAQ's determination was based on the Company having met the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the NASDAQ Capital Market, with the exception of the Bid Price Rule, and the Company's written notice to NASDAQ of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary.

• Revenues increased by 7.6% to $30.0 million for the three months ended September 30, 2015 compared to the same period in 2014.
• Earnings per share, both basic and diluted, were $0.16 for the three months ended September 30, 2015, compared to $0.02 for the same period of last year.

Dr. Liang Tang, Chairman of Ossen Innovation, commented, "We are pleased to report strong financial results for the third quarter of 2015. While our revenues grew by 7.6% year-over-year, gross margin, operating margin and net earnings all reached the highest levels in four years as a result of low material costs and strong sales volume across all major product categories that more than offset decline in average selling prices."

Second Quarter 2015 Financial Results

• Revenues decreased by 28.0% to $25.9 million for the three months ended June 30, 2015, with weakness in both zinc coated PC steel materials and plain surface PC strands and others.
• Net income attributable to Ossen Innovation decreased by 12.7% to $1.3 million, or $0.07 per share, for the three months ended June 30, 2015, compared to $1.5 million, or $0.07 per share, for the same period of last year.

Dr. Liang Tang, Chairman of Ossen Innovation, commented: "The 28% year-over-year decline in our revenues for the second quarter of 2015 highlighted increasing challenges facing our business, as weak investment and trade, combined with high levels of volatility in the domestic stock market, negatively impacted China's already weakening economy during the second quarter. In light of the central government's plan to transform China's growth model from big-ticket project driven to 'more efficient, equitable, and environmentally sustainable' consumer demand driven, we expect China's fixed asset investment, a measure of government spending on infrastructure, continue to expand at a slower pace in coming quarters and thus hinders our ability to grow our business."

Dr. Tang continued: "However, our overall gross margin for the second quarter improved, thanks to lower material costs as Chinese steel prices reached their lowest level in more than 20 years. Heading into the third quarter, we see further slide in steel prices with the composite price index of eight steel products compiled by the China Iron & Steel Association ('CISA') falling to 61.71 last Friday, highlighting ongoing challenges both at the macro level and the industry level."

SHANGHAI, September 21, 2015 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that on September 17, 2015 the Company received a letter from the NASDAQ Stock Market stating that for the previous 30 consecutive business days, the closing bid price of the Company's stock was below the minimum bid price of $1.00 per share for continued listing on the NASDAQ Capital Market pursuant to NASDAQ Marketplace Rule 5550(a)(2) (the "Minimum Bid Price Rule"). The NASDAQ letter has no immediate effect on the listing of the Company's shares.

In accordance with NASDAQ Marketplace Rule 5810(c)(3)(A), the Company has been provided with a period of 180 calendar days, or until March 15, 2016, to regain compliance with the Minimum Bid Price Rule. If at any time during this 180-day period the closing bid price of the Company's American Depositary Shares is at least $1.00 for a minimum of ten consecutive days, NASDAQ will provide written confirmation of compliance and matter will be closed.

The Company intends to evaluate available options to resolve the deficiency and regain compliance with the Minimum Bid Price Rule.

SHANGHAI, August 1, 2015 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it received notice from The Nasdaq Stock Market LLC ("NASDAQ") that it has regained compliance with NASDAQ Marketplace Rule 5550(a)(2) (the "Rule"), which requires that the closing bid price per share of a listed company be at least $1.00 per share.

As previously announced, on August 12, 2014, NASDAQ notified the Company that the bid price of its American Depositary Shares (the "ADS's") had closed at less than $1.00 per share over the previous 30 consecutive business days and, as a result, the Company was not in compliance with the Rule. On February 10, 2015, the Company received a letter from NASDAQ granting the Company an additional 180-day period, or until August 10, 2015, in which to regain compliance with the Rule.

On July 30, 2015, NASDAQ notified the Company that the closing bid price of the ADS's had been $1.00 per ADS or greater for more than 10 consecutive business days, from July 1, 2015 to July 29, 2015. Accordingly, the Company has regained compliance with the Rule.

First Quarter 2015 Financial Results

Revenues decreased by 4.5% to $26.8 million for the three months ended March 31, 2015

Net income attributable to Ossen Innovation increased by 79.1% to $0.9 million, or $0.04 per share, for the three months ended March 31, 2015, compared to $0.5 million, or $0.02 per share, for the same period of last year.

Dr. Liang Tang, Chairman of Ossen Innovation, commented: "The overall business environment remained challenging for us during the first quarter of 2015 as China's economy continued to lose steam with its GDP growth hitting the lowest point in six years to just 7.0%, leading to a 4.5% year-over-year decrease in our total revenues. However, we continued to execute well and improved net income and gross and operating margins significantly on a year-over-year basis, leading to an EPS of $0.04 for the first quarter of 2015 from $0.02 for the same period of last year."

SHANGHAI, May 6, 2015 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that its Board of Directors has approved a stock repurchase program effective immediately for the repurchase of up to 500,000 shares of its outstanding American Depositary Receipts ("ADSs") through May 2016. Shares may be repurchased in the open market at prevailing market prices and/or in negotiated transactions off the market from time to time as market conditions warrant in accordance with applicable requirements of Rule 10b5-1 and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended.

As of December 31, 2014, the Company had 19.9 million shares outstanding, of which approximately 6.1 million is publicly held and traded in the form of ADSs.

Fourth Quarter 2014 Financial Results

• Revenues decreased by $10.2 million, or 24.4%, to $31.8 million from $42.0 million for the same period of last year.
• Earnings per share, both basic and diluted, was $0.07 for the three months ended December 31, 2014, versus $0.06 for the same period of last year.

Dr. Liang Tang, Chairman of Ossen Innovation, commented: "We faced significant headwinds in 2014 on the back of China's economic growth hitting 24 year low as property prices cooled and companies and local government struggled under a heavy debt burdens despite stimulus measures by the central government in the second half of 2014. Additionally, a tightened credit environment throughout the year also limited our ability to borrow funds and thus meet the up-front cash deposit requirement to bid on some of the projects that we believe we otherwise could have won."

"Despite these macro challenges, we grew our overall revenues by 8.5% in 2014 and improved our gross margin by 700 and 65 basis points in the fourth quarter of 2014 and the year of 2014, respectively, as we increased the sales of lower strength rare earth coated products with lower grade raw materials that gave us cost advantage versus our competitors without sacrificing product strength and quality," continued Dr. Tang.

"Looking ahead, with signs pointing to China's economy entering a new stage of a 'new normal' with slower growth on the horizon in 2015 and years to come, we remain cautious in our near-term outlook," concluded Dr. Tang.

SHANGHAI, February 11, 2015 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced it received a letter from NASDAQ (the "NASDAQ Notice"), granting the Company an additional 180-day period, or until August 10, 2015, to regain compliance with NASDAQ's minimum $1.00 bid price per share rule (the "Bid Price Rule") for continued listing on the NASDAQ Capital Market.

The NASDAQ Notice, dated February 10, 2015, notified the Company that while the Company had not regained compliance with the Bid Price Rule, it was eligible for an additional 180-day grace period, until August 10, 2015 (the "Expiration Date"), to regain compliance with the Bid Price Rule. NASDAQ's determination was based on the Company having met the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the NASDAQ Capital Market, with the exception of the Bid Price Rule, and the Company's written notice to NASDAQ of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary.

Third Quarter 2014 Financial Results

• For the three months ended September 30, 2014, revenue decreased by $5.3 million, or 16%, to $27.9 million from $33.1 million for the same period of last year
• Earnings per share, both basic and diluted, was $0.02 for the three months ended September 30, 2014, versus $0.08 for the same period of last year.

Dr. Liang Tang, Chairman of Ossen Innovation, commented: "Our business remained challenged on the back of China's GDP growth hitting 5-year low despite stimulus measures by the central government during the third quarter, leading to year-over-year declines in both our revenue and profitability. However, our Rare Earth coated products sales remained strong, growing 7% year-over-year to $24.7 million in the third quarter as we continue to win new contracts and add new customers. Additionally, we used lower grade raw materials for some of our Rare Earth coated products to improve margins without sacrificing product strength or quality. Looking ahead, despite continued economic headwinds, we remain confident in the long-term prospects of our business and believe we are well positioned for an eventual recovery of the steel materials industry."

Additionally, Chairman Tang Wins Prestigious "National Outstanding Contributors" Award

SHANGHAI, December 1, 2014 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (NASDAQ: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it has been awarded approximately $11.4 million contracts to supply its prestressed concrete ("PC") strands/wires, both plain surface and coated, for the construction of three bridges in Jiaozuo, Henan Province, Ji'an, Jiangxi Province, and Zhaoqing, Guangdong Province. The construction of these bridges are expected to last over one year with delivery of our products to start in December 2014.

Additionally, Dr. Liang Tang, Chairman of Ossen, was recognized as one of the national winners of "National Outstanding Contributors" at the Fourth National Outstanding Contributors Awards Ceremony which took place in Beijing on November 25, 2014. Sponsored by four national ministries, the National Outstanding Contributors Award is a flagship national award given every other year to individuals who have made significant contributions to the society.

Dr. Tang commented, "We are pleased to announce these three contract wins in three Provinces. This, combined with the central government's recent approval of 21 infrastructure projects, including 16 railways and 5 airports, with a total investment value of RMB 693.3 billion (approximately $113.2 billion), bodes well for our business as the central government steps up efforts to restore growth momentum."

Dr. Tang Continued, "I am thrilled and humbled to be chosen as one of the national winners of this prestigious award. At Ossen, we strive to deliver the highest quality PC strands and wires for the construction of numerous highways and bridges both inside China and abroad, and are proud to make a positive contribution to our society through our innovation and dedication."

SHANGHAI, October 9, 2014 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (NASDAQ: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced an update on its supply contract to provide 5,000 tons of plain surface products to the 205 National Highway reconstruction project in Anhui Province.

Dr. Liang Tang, Chairman of Ossen Innovation, stated, "Delivery of materials for this contract, which was secured in December 2013, had been suspended due to the delay of a geological survey. I am pleased to announce that this project has now resumed and we expect to start supplying these plain surface products in late 2014 or early 2015. This contract is valued at approximately $3.7MM and because of recent declines in our raw material prices, we now expect improved profit margins for this supply contract," concluded Dr. Tang.

SHANGHAI, August 13, 2014 /PRNewswire-FirstCall/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (NASDAQ: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that on August 12, 2014 the Company received a letter from the NASDAQ Stock Market stating that for the previous 30 consecutive business days, the closing bid price of the Company's stock was below the minimum bid price of $1.00 per share for continued listing on the NASDAQ Capital Market pursuant to NASDAQ Marketplace Rule 5550(a)(2) (the "Minimum Bid Price Rule"). The NASDAQ letter has no immediate effect on the listing of the Company's shares.

In accordance with NASDAQ Marketplace Rule 5810(c)(3)(A), the Company has been provided with a period of 180 calendar days, or until February 9, 2015, to regain compliance with the Minimum Bid Price Rule. If at any time during this 180-day period the closing bid price of the Company's American Depositary Shares is at least $1.00 for a minimum of ten consecutive days, NASDAQ will provide written confirmation of compliance and matter will be closed.

First Quarter 2014 Financial Results

• Revenue for the three months ended March 31, 2014 was $28.0 million, up 92% from the same period a year ago.
• Earnings per share were $0.02 versus $0.00 a year ago

"I am pleased with Ossen's significant increase in revenue during this quarter," said Dr. Liang Tang, Chairman of Ossen Innovation. "We experienced year over year demand growth for our higher quality and more durable rare earth coated products. Although our margin was impacted by price competition, I am pleased to announce the addition of several new customers who placed large orders in the first quarter of 2014. We are striving to add more customers throughout the year, who continue to be drawn to our products' superior performance, durability and cost effectiveness, compared to our competitors," concluded Dr. Tang.

Business Updates and Outlook

On June 16, China's central bank made a targeted cut in the portion of deposits that banks need to keep on reserve. It trimmed the rate by half a percentage point for banks that lend to the rural sector and smaller companies. It is consistent with the Chinese central bank's objective of avoiding big stimulus that had been used in the past. We believe it is a positive signal in support of the economy and we expect that infrastructure spending will be selectively targeted at developing regions in Central and Western China.

The CPC Committee Political Bureau held a meeting on April 25 and discussed the current Chinese economic situation and development. The meeting announced that the government will accelerate the development of railroad in Central and Western China. In addition, currently a number of Development and Reform Commission departments in Western provinces are studying a number of new high speed rail projects, including high speed rail projects from Guiyang to Zhengzhou, from Guiyang to Nanning, from Lanzhou to Yinchuan, from Lanzhou to Xi'an, and from Lanzhou to Taiyuan. We expect these projects should create additional bidding opportunities for us if they are successfully launched by the government.

SHANGHAI, June 2, 2014 /PRNewswire/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (NASDAQ: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it has received new sales contracts to supply its coated steel wire for cables used for the construction of five bridges in South Korea, including the Saecheonnyeon bridge, Jangja bridge, Bubal bridge, Daedeok 2nd bridge and Gujeuk bridge. Product delivery is expected in June 2014.

"Ossen Innovation is pleased with our recent signing of sales contracts with customers in South Korea," said Dr. Liang Tang, Chairman of Ossen Innovation. "Our products continue to be sought after in the international marketplace, including South Korea and Japan, due to their superior performance and durability. Furthermore, we are very encouraged by recent announcements of major infrastructure development projects in China, including the Guiyang to Zhengzhou high speed rail project and the Baotou to Xi'an passenger rail project," continued Dr. Tang.

"In addition, the Chinese central government recently announced its intention to continue its development and modernization of major urban centers in China in order to promote employment, economic growth and social welfare, plans which should have a beneficial impact on our business and sales in the near term, by providing additional opportunities to bid on projects within China," concluded Dr. Tang.

OSSEN INNOVATION CO., LTD AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011

Management Discussion and Analysis

Year Ended December 31, 2013 Compared to Year Ended December 31, 2012

Revenues. During the year ended December 31, 2013, we had revenues of approximately $113.9 million as compared to revenues of approximately $122.4 million during year ended December 31, 2012, a decrease of approximately $8.5 million, or 6.9%. The decrease in our revenues during the year ended December 31, 2013 was attributable to a decrease in sales of zinc coated PC wires and PC strands and plain surface PC strands, and other sales income, as partially offset by an increase in sales of rare earth coated PC wires and PC strands.

The reasons for the change in our product mix from 2012 to 2013 were as follows:

In 2013, the Chinese government continued its prudent monetary policy and China’s economy growth was still at a single-digit level. Many government approved infrastructure projects were still suspended for construction due to funding difficulties. In addition, China’s inter-bank market experienced a severe liquidity shortage in June 2013 which further negatively impacted funding for infrastructure projects in 2013. Thus, the demand for our higher strength and higher margin rare earth coated products was still low in 2013. The demand for lower strength coated materials was at a higher level compared to higher strength coated materials and we decided to utilize our capacity to produce lower strength rare earth coated products to meet market demand and customer orders and generate more revenue in 2013. With our rare earth coating technology, we were able to produce these products with lower grade raw materials compared to traditional technology. As a result, we sold these products at a more competitive price than our competitors due to lower cost of raw materials and we were able to increase the sales of rare earth coated PC wires and PC strands by $8.7 million, or 10.5%, to $90.6 million for the year of 2013.

We expect several major bridges and infrastructure projects will commence construction in 2014 and most of these projects will require higher strength rare earth coated PC wires and PC strands. We expect demand for our higher strength rare earth coated products will gradually recover in the near future due to their anti-corrosion and other beneficial properties, including their long life span. In addition, because of the higher strength of the individual rare earth coated PC strands and wires, fewer wires and strands are required for these projects, thereby decreasing the overall cost to our customers. As a result, we expect that revenue generated by sales of our rare earth coated products will increase on a year over year basis in the near future.

The sales of zinc coated PC wires and PC strands were $10.0 million for the year of 2013, a decrease of $0.7 million or 6.2% compare to the prior year. The decrease of sales generated by zinc coated products in 2013 was primarily due to overall low demand and high inventory in the market.

The sales of plain surface PC strands and PC wires were $11.9 million for the year of 2013, a decrease of $9.2 million or 39.3% compare to the prior year. Our strategy is to focus on rare earth coated and zinc coated products which resulted in the decrease of the sales of plain surface PC strands and PC wires in 2013.

Other sales were $1.4 million for the year of 2013, decreased about 86.0% from $10.2 million for year of 2012. In 2012, we purchased more spare raw materials than actually needed in anticipation of more production of coated products and sold some of the raw materials to the market.

Net Income. As a result of the foregoing, our net income totaled approximately $4.1 million for the year ended December 31, 2013, as compared to approximately $2.7 million for the year ended December 31, 2012, an increase of 49.8%.

Third Quarter 2013 Financial Results

• Revenue for the three months ended September 30, 2013 was $33.1 million, down 19% from the same period a year ago.
• EPS was $0.08 vs. last years $0.04

"The market for steel materials used in infrastructure projects in China continued to be challenging in the third quarter of 2013," said Dr. Liang Tang, Chairman of Ossen Innovation. "However, I am pleased to report that Ossen continued to sell more of our higher margin, pre-stressed coated products as a percentage of total sales. Combined with lower raw material prices, this resulted in improved gross profit, gross margin and increased earnings for the third quarter and nine months ended September 30, 2013. Although the domestic infrastructure environment remains challenging, we continue to focus on driving sales of higher margin products and maintaining conservative operating expenses," concluded Dr. Tang.

Business Updates and Outlook

Ossen believes that the Chinese central government will continue to stimulate economic growth by further injecting capital into the economy by funding new infrastructure projects. While Ossen does not believe that the Chinese government will initiate another large scale, comprehensive capital injection, the Company believes that infrastructure spending will be selectively targeted at developing regions in Central or Western China. Furthermore, Ossen expects spending by local governments on regional infrastructure development, all of which should create additional bidding opportunities for the Company in 2014 and beyond.

In addition, Ossen recently announced that it has been awarded two contracts to supply its plain surface steel strands for new infrastructure projects in Anhui Province. The first contract is to supply 2,500 tons of plain surface steel strands for the renovation of the G205 national highway's Cihu to Caishi section. This renovation project, overseen by the Chinese Ministry of Transport, will use the steel strands for long span prestressed concrete structures of the overpass. The second contract is to supply 18,000 tons of plain surface steel strands for the construction of the Wangdong Yangtze River highway bridge upstream of the Wan River inAnhui Province. This construction project, overseen by the Anhui Province Planning Department, will use the steel strands for long span prestressed concrete structures of the bridge approach. Based on information received from the Ministry of Transport and the Anhui Province Planning Department, respectively, Ossen expects to begin delivery of these plain surface steel strands in the first half of 2014.

Furthermore, Ossen announced that it has been awarded a contract to supply 15,000 tons of plain surface steel strands to a construction company responsible for building the new Jiujiang express loop highway in Jiujiang City, Jiangxi Province, China. The steel strands will be used in the construction of bridges and elevated highways in this infrastructure project. Based on information received from the construction company responsible for building the Jujiang express loop highway, Ossen expects to begin delivery of the plain surface steel strands in the first quarter of 2014.

Finally, Ossen expects Q4 2013 sales will be similar to the third quarter of 2013 while 2014 results are expected to significantly improve over 2013, provided that the industry is not impeded by the problems it encountered this past year, including government regulation and lack of liquidity among lending institutions.

SHANGHAI, Nov. 5, 2013 /PRNewswire-FirstCall/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it has been awarded two contracts to supply its plain surface steel strands for new infrastructure projects in Anhui Province. The first contract is to supply 2,500 tons of plain surface steel strands for the renovation of the G205 national highway's Cihu to Caishi section. This renovation project, overseen by the Chinese Ministry of Transport, will use the steel strands for long span prestressed concrete structures of the overpass.  The second contract is to supply 18,000 tons of plain surface steel strands for the construction of the Wangdong Yangtze River highway bridge upstream of the Wan River in Anhui Province. This construction project, overseen by the Anhui Province Planning Department, will use the steel strands for long span prestressed concrete structures of the bridge approach.

"Ossen is very pleased to announce these new contract wins," said Dr. Liang Tang, Chairman of Ossen Innovation. "The G205 national highway renovation is an important and high profile project and the Wangdong Yangtze River highway bridge project is a key part of the Shangqiu-Jingdezheng Highway, which is a sub-section of the Ji'nan-Guangzhou national highway. The proximity of our Maanshan manufacturing facility to these infrastructure projects, along with Ossen's brand recognition and reputation for manufacturing high quality products for similar infrastructure projects, allowed us to win these contracts. Based on information received from the Ministry of Transport and the Anhui Province Planning Department, respectively, Ossen expects to begin delivery of these plain surface steel strands in the first half of 2014. The selection of our products for use in major infrastructure projects in the region continues to affirm our product's consistency, durability and reliability," concluded Dr. Tang.

SHANGHAI, Oct. 28, 2013 /PRNewswire-FirstCall/ --

• Important certificate allows Ossen to sell its SWPR7BL prestressed concrete strands in Japan
• R&D for key technology recognized in the Annual Jiangxi Province Science and Technology Award List

Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it has been awarded a Japanese Industrial Standards (JIS) certificate. This certification allows Ossen to begin selling its SWPR7BL prestressed concrete strands in Japan. This standardization and certification process, which was completed after a six month in-depth inspection of the Company's manufacturing facilities and products, was coordinated by the Japanese Industrial Standards Committee, the organization which specifies the standards used for industrial activities in Japan.

"Ossen is very pleased to announce our receipt of this important certification," said Dr. Liang Tang, Chairman of Ossen Innovation. "The certificate, awarded after rigorous review and testing of our SWPR7BL prestressed concrete strands, affirms the world class quality of our product. We look forward to selling our SWPR7BL prestressed concrete strands in Japan, a market with strict quality controls. Although the Japanese market has high barriers to entry, I am pleased to announce that Ossen has already received indications of interest from one Japanese customer to purchase at least 10,000 tons of our SWPR7BL prestressed concrete strands, with delivery expected in early 2014," concluded Dr. Tang.

Separately, Ossen's subsidiary company, Ossen Jiujiang Steel Wire & Cable Co., Ltd., is pleased to announce that its Research and Development (R&D) work on key technology related to the manufacturing of stay cable of large span cable stayed bridges was included in the 2013 Annual Jiangxi Province Science and Technology Award List. 

SHANGHAI, Oct. 21, 2013 /PRNewswire-FirstCall/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (Nasdaq: OSN), aChina-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it has been awarded a contract to supply 15,000 tons of plain surface steel strands to a construction company responsible for building the new Jiujiang express loop highway in Jiujiang City, Jiangxi Province, China. The steel strands will be used in the construction of bridges and elevated highways in this infrastructure project.

"Ossen is very pleased to announce this important contract win," said Dr. Liang Tang, Chairman of Ossen Innovation. "The 29-mile, $508 million Jiujiang express loop highway project is an important part of China's 2020 highway network plan and will connect Jiujiang City and Xingzi County. The proximity of our Jiujiang manufacturing facility to this infrastructure project, combined with our solid reputation for delivering high quality products for similar projects, allowed us to successfully bid on and ultimately win this contract. Based on information received from the construction company responsible for building the Jujiang express loop highway, Ossen expects to begin delivery of the plain surface steel strands in the first quarter of 2014. We hope to announce additional supply contracts for other China-based infrastructure projects in the near future," concluded Dr. Tang.

Second Quarter 2013 Financial Results

• Revenue for the three months ended June 30, 2013 was $24.2 million, down 23% from the same period a year ago.
• Net income attributable to Ossen Innovation Co., Ltd. was $0.7 million in the second quarter of 2013 compared to $0.1 million in the year-ago period. Earnings per share were $0.04 versus $0.003 a year ago.

Business Updates and Outlook

Ossen expects that China will still depend on investment to stimulate its economy. This time it will probably not be a nationwide stimulus package but will likely focus on injecting capital into developing regions like central or western China and will be mainly be for infrastructure development such as highways and railroads, which could create business opportunities for OSN. There are also signs that local governments will continue to invest in infrastructure and it appears that the Chinese central government will encourage private investment to enter infrastructure building.

For the second half of 2013, Ossen expects to bid on bridge projects in Jiangxi province and on bridge and highway projects inGuangdong province, all of which need the Company's plain surface products. In addition, Ossen is one of three companies to enter the final bidding process for a major bridge project in Zhejiang province that will need both plain surface products and rare earth coated products.

With the focus on the developing regions by the new political administration, combined with several newly launched infrastructure projects on which Ossen plans to bid, the Company expects Q3 2013 sales will be improved compared to the first two quarters of 2013. Furthermore, the management currently anticipates Ossen's 2014 financial results to improve significantly as compared to 2013, provided that the industry is not impeded by the problems it encountered this past year, including government regulation and lack of liquidity among lending institutions.

SHANGHAI, July 29, 2013 /PRNewswire-FirstCall/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (Nasdaq: OSN), aChina-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that the Company's application to transfer the Company's listing from the NASDAQ Global Market to the NASDAQ Capital Market has been approved.

Accordingly, the Company's American Depositary Shares (the "ADS's") will begin trading on the NASDAQ Capital Market effective with the open of business on Tuesday, July 30, 2013. The transfer of the Company's listing from the NASDAQ Global Market to the NASDAQ Capital Market is expected to have no impact on trading in the Company's ADS's, and the Company's ADS's will continue to trade under the symbol OSN.

The Company remains subject to a grace period through January 27, 2014, by which date the Company must evidence compliance with NASDAQ's minimum bid price requirement of $1.00 per share. If the Company fails to regain compliance with the minimum bid price by January 27, 2014, NASDAQ will notify the Company of its determination to delist the Company's ADS's, which decision may subsequently be appealed to a NASDAQ Listing Qualifications Panel.

First Quarter 2013 Results 

• Revenue of $14.6 million, down 35% from $22.3 million for the same quarter of 2012. 
• Reported EPS of $0.00, compared to $0.01 for the same quarter of 2012. 

"After a strong second half of 2012, demand for steel materials in China weakened in the first half of 2013" said Dr. Liang Tang, Chairman of Ossen Innovation. "Despite announcements regarding increased funding for major infrastructure projects, funding availability has yet to improve. However, as a result of maintaining strong relationships with many of the governmental organizations responsible for approving these projects, Ossen is well informed of upcoming project bidding opportunities, and we anticipate winning our share once these obtain the necessary funding and approval to proceed. We are also excited about the opportunity in the second half of 2013 to bid on other infrastructure projects, including the Macao, Zhuhai and Hong Kong bridge project and remain optimistic about our chances to win some of these bids." 

Business Outlook 

1. Due to Chinese government's prudent monetary policy and increased competition in the steel industry, Ossen's Q1 2013 sales were lower than same period last year. Although some new infrastructure projects were launched in the first quarter, due to lack of funding resources, these projects were slow to develop and the amount steel materials purchased were at reduced levels. Most bridge projects so far in 2013 have been smaller projects that don't require higher strength coated products.  
2. According to recent Chinese Ministry of Transport announcements, total investments in highway construction in China will reach RMB4.7 trillion (approx. USD760 billion) between 2013 and 2030. Funding sources to support these construction projects include central government support, provincial government support, and private investments.  

SHANGHAI, June 12, 2013 /PRNewswire-FirstCall/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (NASDAQ:  OSN), aChina-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it has engaged BDO China Shun Lun Pan Certified Public Accountants LLP ("BDO China Shu Lun Pan") as the Company's independent registered accounting firm effective June 11, 2013.

As a result of changes in the structure of BDO offices in China, BDO China Shu Lun Pan has been appointed by BDO International Limited ("BDO International") as the exclusive BDO Member Firm in China. BDO China Shu Lun Pan replaces BDO China Dahua, Ossen's prior independent accounting firm, as BDO International's exclusive member firm in China.

Fourth quarter 2012 Financial Results

• Revenue for the three months ended December 31, 2012 was $2 million to $3.1 million, a 56% year-over-year increase.as $27.4 million, an increase of 3% from the same period a year ago. Sales of coated pre-stressed steel materials, including rare earth coated products, were approximately $21.1 million, up 160% compared to approximately $8.1 million in the fourth quarter of 2011 due to overall higher demand of coated pre-stressed steel materials.
• Gross profit increased from  Gross margin was 11.1%, up from 7.1% in the third quarter of 2012 and 7.3% in the fourth quarter of 2011.
• Net income attributable to Ossen Innovation Co., Ltd. was $1.3 million in the fourth quarter of 2012 compared to $0.1 million in the year-ago period. Earnings per share were $0.07 versus $0.00 a year ago.

"We finished 2012 with positive momentum," said Dr. Liang Tang, Chairman of Ossen Innovation. "The year-over-year growth in revenues for the quarter represented our third consecutive quarter of sales growth. This reflects a gradual improvement in demand for our products. Given the shakeout that occurred among suppliers of coated and uncoated steel products over the past two years, we are in a stronger position today to take advantage of the long term growth in this industry."

Business Updates and Outlook

1. Ossen's plans to add 30,000 tons of annual production capacity for rare earth coated products was delayed due to unfavorable business climate in China in 2011 and 2012. In light of recent favorable policy changes made by China's State Council (see below), the Company will proceed with its expansion plan starting in 2013. Management expects to complete the installation and start operation of its new production lines in the first half of 2014, pending its ability to expand its business and the general business environment in China at that time. Capital expenditures in fiscal year 2013 will be incurred primarily in connection with the purchase of manufacturing equipment for the construction of its new facility in Maanshan City, China, as well as the expansion of existing factory buildings to accommodate new production lines.
2. On March 10, 2013, China's State Council announced its plan to restructure the Ministry of Railways (MOR) to separate the administrative and supervision function from the commercial arm. The responsibility for planning and policy-making for railway development is to move to the Ministry of Transport (MOT). A newly created National Railways Bureau (NRB) under the MOT will be responsible for setting technical standards of railways and supervising the safety of operations, quality of transport services and quality of railway projects. The MOR's enterprise/commercial responsibilities will be incorporated into China National Railway Co. (CNRC), which was established on March 14, 2013 with registered capital of 1.04 trillion Yuan (USD $166.8 billion) and will be administrated by the central government. These reforms are expected to attract more private investment and much needed efficiencies to the railway industry.

Second Quarter 2012 Results

• Revenue for the three months ended June 30, 2012 was $31.6 million, an increase of $2.6 million, or 9%, from the same period a year ago.
• Net income attributable to controlling interest fell 98% to $0.1 million in the second quarter of 2012 from $3.6 million in the year-ago period. Earnings per share were $0.003 versus $0.18 a year ago.

"We are pleased to see a rebound in our sales in the quarter," stated Dr. Liang Tang, Chairman of Ossen Innovation. "These improvements have indicated encouraging demand of our products in the market. While uncertainties still remain in the industy, given infrastructure investments are crucial to China's long-term economic vitality, we expect to see continued improvements in our financial results and a stronger second half of this year."

SHANGHAI, June 1, 2012 /PRNewswire-Asia-FirstCall/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (NASDAQ: OSN- News), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that the Company's Board of Directors has authorized the extension of its repurchase plan of up to 500,000 shares of the Company's American Depositary Receipts ("ADSs") , or approximately 8.1%, of the outstanding ADSs of the Company, for an additional twelve months to May 31, 2013.

Repurchases are authorized to be made by the Company from time to time at the prevailing market price on the open market, and/or in negotiated transactions off the market from time to time as market conditions warrant in accordance with applicable requirements of Rule 10b5-1 and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended. Shares repurchased will be held in Treasury.

"The company believes the extension of the repurchase program is in the best interests of its stockholders, as we believe our stock is currently undervalued," stated Dr. Liang Tang, Chairman of Ossen Innovation. "We are confident in our business, which is starting to benefit from recent actions by the Chinese government to provide funding for railway projects. The extension of our share repurchase plan will give the board more flexibility in determining the best use of capital."

First Quarter 2012 Financial Results

• Revenue was $22.3 million in the first quarter of 2012, down 29.8% from $31.7 million in the same period a year ago
• Gross profit decreased by $6.5 million to $2.6 million, a 71.9% year-over-year decline. Consolidated gross margin fell from 28.7% to 11.5%.
• Net income attributable to controlling interest fell 95.4% to $0.3 million in the first quarter of 2012 from $5.9 million in the year-ago period. Earnings per share were $0.01 versus $0.29 a year ago.

"We are seeing encouraging signs regarding demand for our products," stated Dr. Liang Tang, Chairman of Ossen Innovation. "Since April, we have seen a measured increase in the number of projects requesting bids. The pent up demand for steel wires has been fueled by several quarters of dormant activities and the PRC government's recognition that these infrastructure investments are crucial to China's long-term economic vitality. We expect steady improvement in our financial results and a stronger second half of this year."

Fourth Quarter 2011 Results

• Revenue was $26.8 million in the fourth quarter of 2011, down 4.1% from $27.9 million in the same period a year ago
• Net income attributable to controlling interest fell 98% to $0.1 million in the fourth quarter of 2011 from $3.0 million in the fourth quarter of 2010. Earnings per share were $0.00 for the fourth quarter of 2011 versus $0.15 for the fourth quarter of 2010.

"The past couple of months have been challenging," stated Dr. Liang Tang, Chairman of Ossen Innovation. "After the July railway accident in Wenzhou, many high-speed railway related projects have been halted, including those already in the middle of construction. In addition, the tightened credit environment in China, as well as the funding difficulties faced by the Ministry of Railways (MOR), has both impacted our business and our clients' business. There have been signs of improvement in the past months, especially aid from the central government to the MOR. In the near term, our business growth will be adversely affected for the reasons mentioned. Nevertheless, we remain confident and optimistic about the medium to long term market outlook."

2012 Outlook

Management expects the following:

• Suspended MOR projects will gradually resume construction during the year when supporting funds are provided, as promised by central government.
• Customer demand will remain solid for Ossen's products, especially rare earth coated products, in the medium and long terms.
• Addition of the 30,000 ton production lines for rare earth coated products will be postponed to the end of 2012 as a result of current adverse industry conditions. Such expansion, however, remains a key element of the Company's strategic growth plan.

SHANGHAI, January 31, 2012 /PRNewswire-Asia-FirstCall/ --Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (NASDAQ: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that the Company has received a letter from the NASDAQ Stock Market dated January 27, 2012 advising the Company that the closing bid price of the Company's stock on NASDAQ has been at $1.00 per share or greater for the last 10 consecutive business days. Accordingly, the Company has regained compliance with the minimum bid price requirement for continued listing on the NASDAQ Global Market.

Third Quarter 2011 Results

• Revenue was $31.1 million in the third quarter of 2011, up slightly from $30.9 million in the corresponding period a year ago
• Net income attributable to controlling interest fell 56% to $2.0 million in the third quarter of 2011 from $4.5 million in the year-ago period. Earnings per share were $0.10 versus $0.30 a year ago, reflecting lower profits and an increase of 5 million shares outstanding year-over-year as a result of the December 2010 IPO.

"The past couple of months have been challenging," stated Dr. Liang Tang, Chairman of Ossen Innovation. "After the July railway accident in Wenzhou, almost all of the high-speed railway related projects have been halted, including those already in the middle of construction. In addition, the tightened credit environment in China as well as the funding difficulties faced by Ministry of Railways (MOR) have both impacted our business and our clients' business. There have been signs of improvement these weeks, however, especially after the aid from central government to MOR. In the near term, our business growth would be adversely affected for the reasons mentioned and we expect that financial results of 2011 will be lower than our original guidance. But we remain confident and optimistic about the medium to long term market outlook."

A second round of On-the-Ground Due Diligence Indicates Ongoing Weakness in OSN�s Business Due to Deteriorating Economic Conditions in the PRC.

A Geo investigator recently visited OSN�s subsidiary, Ossen Jiujiang, located in Jiujiang City and talked to two employees of that facility directly and another through a third party.
See our update.

As a follow-up to our investor alert on June 22, 2011 where we disclosed that we were taking a position in OSN at $2.63...

...our initial on-the-ground due diligence on the company was encouraging. Our investigator was able to confirm that the employee headcount, production volumes, and pricing of products are as reported in the company's SEC filings.

Furthermore:

1. GeoTeam independent OTGDD by our in-house private investigators indicates that OSN is running a substantial revenue generating operation.

2. OSN management takes the position that it will not require capital from equity markets to fund 2011 and 2012 growth. This could help drive P/E expansion.

3. OSN story is a unique scenario that we believe has value when considering positive and negative factors.

4. OSN will report financial results on a quarterly basis even though as a foreign filer it is not required to do so.

5. OSN should not be priced to fail.

6. The GeoTeam will continue to monitor the OSN story and offer suggestions to management that will ultimately be needed to help restore market confidence in their stock. The GeoTeam highly recommends that management follows these suggestions.

7. There is upside to our valuation scenarios if OSN follows our suggestions.

To see the full report, please go here.

Highlights:

• Revenue increased 16% to $117.5 million
• Net income increased 83% to $14.6 million, with EPS of $0.73 based on 20 million shares outstanding
• FY 2011 Guidance: Revenue of $138.5-$144.6 million, represents 18%-23% YOY growth, Net Income of $18.0-$18.8 million, represents 22%-28% YOY growth, with EPS of $0.90-$0.94 based on 20 million shares outstanding

Management will host a conference call to discuss results at 11:00 am ET on Friday, June 24th

"2010 was a key inflection point for Ossen." stated Dr. Liang Tang, Chairman of Ossen Innovation. "We dramatically increased production of our coated products, which positively impacted our growth, margins and profitability. As the Chinese government continues to push forward on multiple high profile bridge projects around the country, demand for our products remain strong. We believe that once we complete our new coated products capacity expansion, we will further solidify our position as a market leader."

We believe that our cash reserves, together with expected cash flow from operations and short-term loans, are sufficient to allow us to continue to operate for the next 12 months. In December 2010, we issued 5 million shares in the form of American Depositary Receipts. The $20.3 million of net proceeds from this offering are being used to fund the capacity expansion of our rare earth coated PC products. We currently estimate that the entire cost of this expansion will be approximately $22 million. We intend to fund the remaining $1.7 million of construction costs, as well as any unanticipated costs that may arise in relation to our expansion, from short-term bank loans or cash from operations.

Historically, we sold a significant portion of our products to international customers. In 2008, we collected approximately half of the revenues generated by international sales by letter of credit, enabling us to convert our accounts receivable into cash more quickly, prepay our suppliers and reduce the amount of funds that we needed to finance our working capital requirements. However, at the end of 2008, as a result of the global economic crisis and in anticipation of the anti-dumping measures ultimately imposed by the U.S. and the European Union, we had to exit some of these international markets entirely and turn to the domestic PRC customers, which generally pay approximately 60-90 days after receiving the materials at the construction site. These longer payment terms have negatively impacted our short-term liquidity. Although we have been able to maintain adequate working capital primarily through short-term borrowing, any failure by our customers to settle outstanding accounts receivable in the future could materially and adversely affect our cash flow, financial condition and results of operations.

While the GeoTeam awaits the 20F for OSN (in order to release our full report), here is a refresher of the important points of our due diligence, originally released on May 23, 2011.

If your portfolio exposure to the ChinaHybrid space is less than 20%, something we have been preaching as a consideration for some time now, then it should suffer minimal collateral damage as events play out. If you are short names that, combined with on-the-ground due diligence, embody the characteristics of foul play such as mismatching SAIC/SAT/SEC filings, stupid capital raises, acquisition transactions that do not make sense and misrepresentations of land use rights, then you will make money from this phase. Creating a small portfolio of short positions in suspect or even illiquid stocks, even at these prices, should work overtime as many will slowly fade away as China Education Alliance (NYSE:CEU) has been doing. (Source: "The RTO field of dreams" http://blog.geoinvesting.com/?p=1017)

We will be publishing our DD findings on OSN shortly.

Initial entry point: "May try some Ossen Innovation Co (NASDAQ:OSN) $2.63. Good guidance and has been beaten up."

Summary of conclusions (based on PRC filing data we have obtained).

1. OSN a real company with revenues in-line SEC filings (SAIC=SAT=SEC for 2008 and 2009).
2. Tax provision for 2008 and 2009 is on par among SAIC/SAT/SEC filings
3. OSN is a profitable company based on SAIC/SAT documents. 2008 SAT/SAIC net income data is in line with SEC filings. 2009 SAIC net income is in line with SEC net income. 2009 SAT net income is ~ 50% less than SEC net income.
4. On the ground DD was positive and confirmed that 2009 SEC revenues were achievable. Further DD is still needed regarding margins, customers and suppliers.
5. Even after considering differences between 2009 SAT and SEC net income numbers and a worst case scenario that 2009 SAT margins were accurate , OSN should not be priced as company to �fail� at this time. Another plausible scenario why our SAT net income figure does not equal SEC number could be due to the deployment of culturally acceptable level of tax avoidance initiatives, as 2009 marked the end of a three year tax holiday for OSN.
6. Our initial worst case �bottom� valuation assumption: $3.50 to $4.50, with a possible expansion of this range if trust can be established. Keep in mind that the 2010 audit, due in June, has yet to be completed as OSN is a foreign filer. Completion of the audit could be viewed positively.

SHANGHAI, May 20, 2011 /PRNewswire-Asia/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (NASDAQ: OSN), a China-based manufacturer primarily engaged in manufacturing of galvanized pre-stressed steel wires used in the production of bridge cables, today announced that it has signed two contracts to provide proprietary galvanized pre-stressed steel wires for the construction of Maanshan Yangtze River Expressway Bridge and Jiujiang Yangtze River Expressway Bridge. The company will produce and deliver products through 2012.

"As we have signed both contracts, we have stepped closer towards our earnings target for the year," said Dr. Liang Tang, Chairman of Ossen Innovation Co., Ltd. "We are at the beginning of a major boom for bridge construction in China as governments across the country accelerate the connection of major highways and railways. We will continue to leverage our brand recognition and advanced products to win major projects such as these two as we grow our capacity for future growth."  

Preliminary FY 2010:

• Revenue: $117.6m
• Net Profit: $14.9m
• EPS: $0.75

FY 2011 Guidance:

• Revenue: $138.5-$144.6m
• Net Profit: $18-$18.8m
• EPS: $0.90-$0.94

"We continue to secure major bridge projects in China as a result of our established reputation and the quality of our pre-stressed steel materials, including the coated steel wires and strands with Ossen's proprietary rare earth and zinc formula," said Dr. Liang Tang, Chairman of Ossen. "Our 2011 financial forecast reflects our confidence in executing the growth strategy which is supported by growing demand for new bridges in China."

SHANGHAI, March 31, 2011 /PRNewswire-Asia/ -- Ossen Innovation Co., Ltd. announced today that the Audit Committee of the Board of Directors of the Company has approved the engagement of BDO China Li Xin Da Hua CPA Co., Ltd. ("BDO China" or "BDO") as the Company's independent registered accounting firm for the year ended December 31, 2010 and to conduct review engagements on the Company's quarterly financial statement on an ongoing basis thereafter. On the same date, the Board of Directors of the Company terminated the engagement of Sherb & Co., LLP as the independent registered public accounting firm of the Company effective immediately.

Update:

We are considering turning our OSN trade into a short-term core holding if we:

• Determine that the company will upgrade its Auditor from Sherb.
• Verify that SAIC filings are in order (company is an FIE)
• Gain a grip on financing needs.

This morning we took a day trading position in Ossen Innovation Adr (NASDAQ:OSN), a recent IPO. We believe that OSN may rise on the hype that has irrationally swept upon Wall Street over rare earth mineral stocks. While OSN is not a direct play on this hype, investors may be able craft a bullish trading case for OSN.

We manufacture and sell an array of plain surface and rare earth galvanized prestressed steel materials, which we believe is the most comprehensive amongst our competitors in China.

Bullish Case that Some Will try to Rationalize

China restricts the amount of product that domestic rare earth companies can export, leading them to sell more domestically, which can result in better pricing and margins for PRC firms like OSN that use rare earth raw materials.

At $5.40, the stock trades at a P/E of 8.6 using $0.63 trailing EPS. Investors should be aware that OSN had to reduce the size of its offering and offering price a couple of times before its IPO debut at $4.50 on December 21, 2010. Its auditor is also Sherb, a company associated with alleged fraudulent companies such as CEU.

Overall, we think the rare earth play is well overdone, lifting stocks that don't even have anything to do with rare earth but instead are associated with mining or mineral companies. Have fun while it lasts, but this is a classic sign of an impending sector bubble. We do not think this is a sign of an overall stock market top as irrational investor euphoria has not occurred in other market sectors.

Currently, we only plan to trade OSN and will accept a loss hoping for a possible irrational move. In fact, the stock has retraced strong early morning gains. At least, according to SEC documents, the company is solidly profitable and cheap compared to similar plays that have seen parabolic runs over the past few days. We still need to call the company to verify if our assumptions are correct and determine if there is a core bullish case for OSN. Our trade decision was made on the "fly."

Related China stocks that are riding this hype today include.

• China Gengsheng Minerals (NYSE AMEX:CHGS)
• China Armco Metals (NYSE AMEX:CNAM)
• China Gengsheng Minerals (NYSE AMEX:CHGS)
• China Direct Industries (NASDAQ:CDII)

We do not see evidence that these four stocks have anything to do with rare earth minerals. But then again we are not experts in this area. However CDII poor fundamentals support our belief that the stock will retrace its gains after the hype is over.

Rare earth mineral list (source Wikipedia)

Disclosure: Short- CHGS; Long- CHGI, CNAM and related warrants, trading position in OSN.

Ossen Innovation plans for Initial Public Offering. The company had previously merged with a private non-operating shell company.

Company Snapshot:

Sells an array of plain surface and rare earth galvanized prestressed steel materials

Industry Snapshot: (Company Comments)

• Due to the demand for prestressed materials in infrastructure construction and the domestic PRC market, we believe that our industry will grow significantly for at least the next five years. Specifically, we expect the market for premium rare earth products, including rare earth galvanized prestressed steel strands and wires, which are used in the construction of bridges and highways, to grow in the PRC during this period.
  
• Based on the 11th five-year plan for highway and waterway transportation by the Ministry of Transportation of the PRC, the government plans to invest $730 billion in the national highway network from 2009 to 2013, which drives huge demand for prestressed materials.
  
• The Railway Network Plan issued by the Ministry of Railways of the PRC has indicated that $290 billion will be invested in railway construction from 2009 to 2013, which further drives the demands for prestressed materials. From now until 2020, we believe that 200 new bridges will be built on dozens of rivers in the PRC, including the Yangtze River, Yellow River, Songhua River, Jiangxi River, Xiangjiang River, Han River, Minjiang River and Pearl River. The bridge projects will require approximately 6 million tons of rare earth galvanized prestressed materials in the aggregate.
  
• The China National Nuclear Industry Group has estimated that the PRC government will invest approximately $60 billion by 2020 for nuclear power construction, which would require approximately two million tons of prestressed materials. Further, the ongoing building of a large number of rural roads, highways and buildings should continue to generate significant demands for prestressed materials.

Use Of proceeds:

We intend to use the net proceeds from this offering to increase our production capacity from 140,000 tons to 200,000 tons in the months following this offering. Our plan is to construct a new building on empty land located in our Maanshan facility and to install eight new production lines which will be used for the production of an aggregate of approximately 60,000 tons of higher margin coated prestressed materials, including coated wires. The expected cost of this expansion is approximately $25 million. The remainder of the proceeds will be used for working capital and other general corporate purposes

Underwriter:

• Global Hunter Securities
• Knight

Proposed offering price: $4.50 down from original range of $7.00 to $9.00

Post IPO Share Calculation: (Using a 1 to 1 Ordinary to ADS conversion ratio).

• 15,000,000: Pre IPO fully diluted share count
•   5,000,000: Newly issued  shares 
•      750,000: Over-allotments shares 

GeoTeam® best effort calculation of total post IPO ADS count to be used in EPS calculations, assuming full conversions and a Ordinary to ADS conversion ratio of 1 to 1: 20,750,000

Financial Snapshot:

• During the year ended December 31, 2009, we had revenues of approximately $101.1 million as compared to revenues of approximately $82.7 million during year ended December 31, 2008, an increase of approximately $18.3 million, or 22.2%.
  
• Net income totaled approximately $9.7 million for the year ended December 31, 2009, as compared to approximately $4.8 million for the year ended December 31, 2008, an increase of 106%.

Pro Forma Valuaiton: using $4.50 price and new share count

• 2009 EPS (ADR): $0.47
• Traling P/E: 9.58