Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Ossen Innovation Co. Ltd. |
Entity Central Index Key | 1,485,538 |
Trading Symbol | OSN |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 19,828,790 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 812,277 | $ 684,592 |
Restricted cash | 8,780,443 | 17,572,732 |
Note receivable-bank acceptance note | 8,010,228 | 9,925,155 |
Accounts receivable, net of allowance for doubtful accounts of $738,101 and $1,874,330 at December 31, 2015 and 2014, respectively | 43,247,974 | 53,764,414 |
Inventories | 27,276,221 | 20,137,901 |
Advance to suppliers | 55,730,089 | 56,327,390 |
Other current assets | 915,041 | 946,319 |
Total current assets | 144,772,273 | 159,358,503 |
Property, plant and equipment, net | 5,557,176 | 7,174,646 |
Land use rights, net | 3,911,084 | 4,231,348 |
TOTAL ASSETS | 154,240,533 | 170,764,497 |
Current Liabilities | ||
Notes payable-bank acceptance notes | 12,477,471 | 26,521,315 |
Short-term bank loans | 17,714,928 | 18,711,357 |
Accounts payables | 1,899,400 | 3,217,076 |
Customer deposits | 309,147 | 588,005 |
Taxes payable | 414,250 | 552,459 |
Other payables and accrued liabilities | 1,669,670 | 1,622,958 |
Due to related party | 65,769 | 69,469 |
Due to shareholder | 282,499 | $ 100,000 |
Bond payable - current portion | 15,273,177 | |
Total current liabilities | $ 50,106,311 | $ 51,382,639 |
Bond payable | 15,972,837 | |
TOTAL LIABILITIES | $ 50,106,311 | 67,355,476 |
Shareholders' Equity | ||
Ordinary shares, $0.01 par value: 100,000,000 shares authorized; 20,000,000 shares issued; 19,828,790 and 19,901,959 shares outstanding as of December 31, 2015 and 2014, respectively | 200,000 | 200,000 |
Additional paid-in capital | 33,971,455 | 33,971,455 |
Statutory reserve | 5,631,373 | 5,021,752 |
Retained earnings | 50,258,265 | 44,971,082 |
Treasury stock, at cost: 171,210 and 98,041 shares as of December 31, 2015 and 2014, respectively | (155,343) | (96,608) |
Accumulated other comprehensive income | 2,596,227 | 8,425,697 |
TOTAL SHAREHOLDERS' EQUITY | 92,501,977 | 92,493,378 |
Non-controlling interest | 11,632,245 | 10,915,643 |
TOTAL EQUITY | 104,134,222 | 103,409,021 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 154,240,533 | $ 170,764,497 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 738,101 | $ 1,874,330 |
Ordinary shares, par value | $ 0.01 | $ 0.01 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 20,000,000 | 20,000,000 |
Ordinary shares, shares outstanding | 19,828,790 | 19,901,959 |
Treasury stock, shares | 171,210 | 98,041 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME [Abstract] | |||
REVENUES | $ 117,908,416 | $ 123,571,455 | $ 113,891,989 |
COST OF GOODS SOLD | 102,197,994 | 110,250,876 | 102,353,957 |
GROSS PROFIT | 15,710,422 | 13,320,579 | 11,538,032 |
Selling expenses | 986,378 | 772,383 | 625,500 |
General and administrative expenses | 4,478,413 | 6,340,584 | 3,485,118 |
Total Operating Expenses | 5,464,791 | 7,112,967 | 4,110,618 |
INCOME FROM OPERATIONS | 10,245,631 | 6,207,612 | 7,427,414 |
Financial expenses, net | (2,823,952) | (2,401,268) | (2,696,966) |
Other income, net | 371,894 | 907,941 | 558,426 |
INCOME BEFORE INCOME TAX | 7,793,573 | 4,714,285 | 5,288,874 |
INCOME TAX | (1,180,167) | (578,727) | (1,219,030) |
NET INCOME | 6,613,406 | 4,135,558 | 4,069,844 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | 716,602 | 276,682 | 426,440 |
NET INCOME ATTRIBUTABLE TO OSSEN INNOVATION CO.,LTD AND SUBSIDIARIES | 5,896,804 | 3,858,876 | 3,643,404 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation gain (loss) | (5,829,470) | 779,135 | 1,647,348 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | (5,829,470) | 779,135 | 1,647,348 |
COMPREHENSIVE INCOME | $ 67,334 | $ 4,638,011 | $ 5,290,752 |
EARNINGS PER ORDINARY SHARE | |||
Basic and diluted | $ 0.30 | $ 0.19 | $ 0.18 |
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING | |||
Basic and diluted | 19,862,537 | 19,901,959 | 19,901,959 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) | Total | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Treasury stock [Member] | Accumulated Other Comprehensive Income [Member] | Statutory Reserve [Member] | Retained Earnings [Member] | Non Controlling Interest [Member] |
Balance at Dec. 31, 2012 | $ 92,777,136 | $ 200,000 | $ 33,971,455 | $ (96,608) | $ 5,999,214 | $ 4,179,027 | $ 38,311,527 | $ 10,212,521 |
Balance, shares at Dec. 31, 2012 | 20,000,000 | (98,041) | ||||||
Net income | $ 4,069,844 | 3,643,404 | $ 426,440 | |||||
Transfer to statutory reserve | $ 436,672 | $ (436,672) | ||||||
Foreign currency translation adjustment | $ 1,647,348 | $ 1,647,348 | ||||||
Balance at Dec. 31, 2013 | 98,494,328 | $ 200,000 | $ 33,971,455 | $ (96,608) | $ 7,646,562 | $ 4,615,699 | $ 41,518,259 | $ 10,638,961 |
Balance, shares at Dec. 31, 2013 | 20,000,000 | (98,041) | ||||||
Net income | $ 4,135,558 | 3,858,876 | $ 276,682 | |||||
Transfer to statutory reserve | $ 406,053 | $ (406,053) | ||||||
Foreign currency translation adjustment | $ 779,135 | $ 779,135 | ||||||
Balance at Dec. 31, 2014 | $ 103,409,021 | $ 200,000 | $ 33,971,455 | $ (96,608) | $ 8,425,697 | $ 5,021,752 | $ 44,971,082 | $ 10,915,643 |
Balance, shares at Dec. 31, 2014 | 19,901,959 | 20,000,000 | (98,041) | |||||
Net income | $ 6,613,406 | 5,896,804 | $ 716,602 | |||||
Transfer to statutory reserve | $ 609,621 | $ (609,621) | ||||||
Common shares repurchase | $ (58,735) | $ (58,735) | ||||||
Common shares repurchase, shares | (73,169) | (73,169) | ||||||
Foreign currency translation adjustment | $ (5,829,470) | $ (5,829,470) | ||||||
Balance at Dec. 31, 2015 | $ 104,134,222 | $ 200,000 | $ 33,971,455 | $ (155,343) | $ 2,596,227 | $ 5,631,373 | $ 50,258,265 | $ 11,632,245 |
Balance, shares at Dec. 31, 2015 | 19,828,790 | 20,000,000 | (171,210) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 6,613,406 | $ 4,135,558 | $ 4,069,844 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | $ 1,416,060 | $ 1,531,278 | $ 1,564,973 |
Share-based compensation expense | |||
(Increase) Decrease In: | |||
Accounts receivable | $ 10,516,441 | $ (5,564,338) | $ (2,465,695) |
Inventories | (7,138,320) | (1,387,131) | (8,943,726) |
Advance to suppliers | 597,301 | (5,712,575) | 27,333,681 |
Other current assets | 31,278 | 2,501,567 | (1,543,260) |
Notes receivable - bank acceptance notes | $ 1,914,927 | (7,503,574) | (2,027,502) |
Notes receivable from related party - bank acceptance notes | 12,915,099 | (11,084,891) | |
Increase (Decrease) In: | |||
Accounts payable | $ (1,317,676) | 2,713,132 | (68,361) |
Customer deposits | (278,858) | (2,320,266) | 2,523,669 |
Income tax payable | (138,209) | 319,918 | (158,812) |
Other payables and accrued expenses | 46,712 | 73,209 | 744,552 |
Due to related party | (3,700) | 52,558 | 16,911 |
Due to shareholder | 182,499 | 50,000 | 50,000 |
Net cash provided by operating activities | 12,441,861 | 1,804,435 | 10,011,383 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of plant and equipment | $ (29,687) | $ (81,441) | (16,361) |
Withdraw for purchases of plant and equipment | $ 8,071,937 | ||
Disposal of property, plant and equipment | $ 456 | ||
Net cash used in investing activities | $ (29,687) | (80,985) | $ 8,055,576 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Decrease (Increase) in restricted cash | 8,792,289 | 14,210,938 | (6,376,171) |
Proceeds from short-term bank loans | 18,462,625 | 28,475,194 | 41,531,691 |
Repayments of short-term bank loans | $ (18,462,625) | $ (37,261,825) | (66,189,540) |
Repayments of long-term bank loans | (4,581,002) | ||
Proceeds from notes payable-bank acceptance notes | $ 36,202,800 | $ 55,811,380 | 98,467,000 |
Repayment of notes payable-bank acceptance notes | (49,367,454) | $ (80,682,428) | $ (84,912,143) |
Repurchase of common share | $ (58,735) | ||
Proceeds from bond payable | $ 15,946,109 | ||
Net cash used in financing activities | $ (4,431,100) | (3,500,632) | $ (22,060,165) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 7,981,074 | (1,777,182) | (3,993,206) |
Effect of exchange rate changes on cash | (7,853,389) | 1,322,324 | 3,135,892 |
Cash and cash equivalents at beginning of period | 684,592 | 1,139,450 | 1,996,764 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 812,277 | 684,592 | 1,139,450 |
Cash paid during the periods: | |||
Income taxes paid | 1,301,687 | 722,948 | 1,095,357 |
Interest paid | 3,353,344 | 1,977,014 | 2,865,902 |
Non-cash transactions: | |||
Appropriation to statutory reserve | $ 609,621 | $ 406,053 | $ 436,672 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2015 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1 ORGANIZATION AND PRINCIPAL ACTIVITIES Ossen Innovation Co., Ltd., (Ossen Innovation or the Company) formerly known as Ultra Glory International, Ltd., or Ultra Glory, is a British Virgin Islands limited liability company organized on January 21, 2010 under the BVI Business Companies Act, 2004 (the BVI Act). Ultra Glory was a blank check company formed for the purpose of acquiring, through a share exchange, asset acquisition or other similar business combination, an operating business. Business Combination On July 7, 2010, Ultra Glory and its sole shareholder entered into a share exchange agreement with Ossen Innovation Materials Group, Co., Ltd, or Ossen Innovation Group, a British Virgin Islands limited liability company organized on April 30, 2010 under the BVI Act and the shareholders of Ossen Innovation Group. Pursuant to the share exchange agreement, Ultra Glory acquired from the shareholders of Ossen Innovation Group all of the issued and outstanding shares of Ossen Innovation Group, in exchange for an aggregate of 10,000,000 5,000,000 0.03 100 100 100,000,000 The effect of the share exchange and the share sale is such that effectively a reorganization of the entities has occurred for accounting purposes and is deemed to be a reverse acquisition. The share exchange acquisition is accounted for as a reverse acquisition since, immediately following completion of the transaction, the shareholders of Ossen Innovation Group have had effective control of Ultra Glory. For accounting purposes, Ossen Innovation Group is deemed to be the accounting acquirer in the transaction and, consequently, the transaction is treated as a recapitalization of Ultra Glory, i.e., a capital transaction involving the issuance of shares by Ultra Glory for the shares of Ossen Innovation Group. Accordingly, the combined assets, liabilities and results of operations of Ossen Innovation Group and its subsidiaries, became the historical financial statements of Ultra Glory at the closing of the share exchange, and Ultra Glory's assets (primarily cash and cash equivalents), liabilities and results of operations is consolidated with those of Ossen Innovation Group beginning on the share exchange date. No step-up in basis or intangible assets or goodwill is recorded in this transaction. As this transaction is being accounted for as a reverse acquisition, all direct costs of the transaction is charged to additional paid-in capital. All professional fees and other costs associated with transaction were expensed. The 15,000,000 The Company's Shareholders Dr. Tang, our chairman, owns 100 60.0 100 3.0 100 3.0 5 30.2 5,988,290 3.8 The Company's Subsidiaries British Virgin Islands Companies Ossen Innovation Group, the Company's wholly owned subsidiary, is the sole shareholder of two holding companies organized in the British Virgin Islands: Ossen Group (Asia) Co., Ltd., or Ossen Asia, and Topchina Development Group Ltd., or Topchina. All of the equity of Ossen Asia and Topchina had been held by Dr. Tang since inception. In May 2010, Dr. Tang transferred these shares to Ossen Innovation Group in anticipation of the public listing of our Company's shares in the United States. Ossen Asia is a British Virgin Islands limited liability company organized on February 7, 2002. Ossen Asia has one direct operating subsidiary in China, Ossen Innovation Materials Co. Ltd., or Ossen Materials. Ossen Asia owns 81 Topchina is a British Virgin Islands limited liability company organized on November 3, 2004. Ossen Materials and Topchina directly own an operating subsidiary in China, Ossen (Jiujiang) Steel Wire & Cable Co., Ltd., or Ossen Jiujiang. Ossen Materials owns 20.46 79.54 Ossen Materials Ossen Materials was formed in China on October 27, 2004 as a Sino-foreign joint venture limited liability company under the name Ossen (Maanshan) Steel Wire and Cable Co., Ltd. On May 8, 2008, Ossen Materials was restructured from a Sino-foreign joint venture limited liability company to a corporation. The name of the entity was changed at that time to Ossen Innovation Materials Co., Ltd. Ossen Asia owns 81% of the equity of Ossen Materials. The remaining 19 Through Ossen Materials, the Company has manufactured and sold plain surface PC strands, galvanized PC steel wires and PC wires in the Company's Maanshan City, PRC, facility since 2004. The primary products manufactured in this facility are the Company's plain surface PC strands. The primary markets for the products manufactured at the Company's Maanshan facility are Anhui Province, Jiangsu Province, Zhejiang Province and Shanghai City, each in the PRC. Ossen Jiujiang On April 6, 2005, Shanghai Ossen Investment Holdings (Group) Co., Ltd., or Ossen Shanghai, acquired a portion of the bankruptcy assets of Jiujiang Tianlong Galvanized Prestressing Steel Strand LLC, including equipment, land use rights and inventory for approximately $ 2.9 33.3 66.7 2.9 41.7 6,048,509 50,000,000 26,048,509 183,271,074 20,000,000 133,271,074 Through Ossen Jiujiang, the company manufactures galvanized PC wires, plain surface PC strands, galvanized PC strands, unbonded PC strands, helical rib PC wires, sleeper PC wires and indented PC wires. The primary products manufactured in this facility are the company's galvanized PC wires. The primary markets for the PC strands manufactured in the company's Jiujiang facility are Jiangxi Province, Wuhan Province, Hunan Province, Fujian Province and Sichuan Province, each in the PRC. At December 31, 2015, the subsidiaries of Ossen Innovation Co., Ltd were as follows: Name Domicile and Date Paid-in Capital Percentage Principal Activities Ossen Innovation Materials Group, Co., Ltd. (Ossen Innovation BVI USD - 100 % Investments holdings Ossen Group (Asia) Co., Ltd. ("Ossen Asia") BVI USD - 100 % Investments holdings Topchina Development Group Ltd. ("Topchina") BVI USD - 100 % Investments holdings Ossen Innovation Materials Co., Ltd. ("Ossen Meterials") The PRC RMB 75,000,000 81 % Design, engineering, manufacture and sale Ossen (Jiujiang) New Materials Co., Ltd. (Formerly Ossen (Jiujiang) Steel Wire & Cable Co., Ltd.) ("Ossen Jiujiang") The PRC RMB 183,271,074 96.11 % Design, engineering, manufacture and sale |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of Ossen Innovation Co., Ltd. and its subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). Intercompany accounts and transactions have been eliminated upon consolidation. Use of Estimates The preparation of the consolidated and combined financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. Actual results could differ from those estimates. Non-controlling Interest Non-controlling interests in the Company's subsidiaries are recorded in accordance with the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification 810 Consolidation (ASC 810) and are reported as a component of equity, separate from the parent's equity. Purchase or sale of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings. Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollars (US$ or $). The functional currency of the Company is Renminbi (RMB). The consolidated financial statements are translated into United States dollars from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The resulting transaction adjustments are recorded as a component of shareholders' equity. Gains and losses from foreign currency transactions are included in net income. 2015 2014 2013 Year end RMB: US$ exchange rate 6.4917 6.1460 6.1943 Average yearly RMB: US$ exchange rate 6.2288 6.1457 6.1122 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation. Revenue Recognition In accordance with the ASC Topic 605, Revenue Recognition, the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller's price to the buyer is fixed or determinable, and collectability is reasonable assured. The Company derives revenues from the processing, distribution and sale of own products. The Company recognizes its revenues net of value-added taxes (VAT). The Company is subject to VAT which is levied on the rate of 17% on the invoiced value of sales. Output VAT is borne by customers in addition to the invoiced value of sales and input VAT is borne by the Company in addition to the invoiced value of purchases to the extent not refunded for export sales. The Company will recognize revenue for domestic sales based on the terms defined in the contract as long as risk of loss has transferred to the customers and each of the criteria under ASC 605 have been met. Contracts terms may require the Company to deliver the finished goods to the customers' location or the customer may pick up the finished goods at the Company's factory. International sales are recognized when shipment clears customs and leaves the port. The Company also derives an insignificant amount of revenue from providing services to select customers. Service revenues account for less than 2% of total revenues for all periods presented and is recognized upon delivery and acceptance of the finished products by the customer, or when pick up occurs. Contracts with distributors do not offer any chargeback or price protection. The Company experienced no product returns and recorded no reserve for sales returns for the years ended December 31, 2015, 2014 and 2013. Cost of Sales Cost of revenue includes direct and indirect production costs, as well as freight in and handling costs for products sold. Selling Expenses Selling expenses include operating expenses such as sales commissions, payroll, traveling expenses, transportation expenses and advertising expenses. General and Administrative (G&A) Expenses General and administrative expenses include management and office salaries and employee benefits, deprecation for office facility and office equipment, travel and entertainment, legal and accounting, consulting fees and other office expenses. Research and Development Research and development costs are expensed as incurred and totaled approximately $ 3,404,333 3,914,918 1,260,440 Retirement Benefits Retirement benefits in the form of contributions under defined contribution retirement plans to the relevant authorities are charged to operations as incurred. Retirement benefits of $ 148,232 140,823 133,230 Income Taxes The Company accounts for income taxes following the liability method pursuant to FASB ASC 740 Income Taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in income in the period that includes the enactment date. The Company also follows FASB ASC 740, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of December 31, 2015, the Company did not have a liability for unrecognized tax benefits. The Company has not provided for income taxes on accumulated earnings amounting $ 50,258,265 Value-Added Tax (VAT) Enterprises or individuals, who sell commodities, engage in repair and maintenance or import or export goods in the PRC are subject to a value added tax in accordance with Chinese Laws. The VAT standard rate is 17 Statutory Reserve In accordance with the PRC Regulations on Enterprises with Foreign Investment, an enterprise established in the PRC with foreign investment is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise's PRC statutory accounts. A wholly-owned foreign enterprise (WOFE) is required to allocate at least 10% of its annual after-tax profit to the General Reserve Fund until the balance of such fund has reached 50% of its respective registered capital. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. Appropriations to the Enterprise Expansion Fund and Staff Welfare and Bonus Fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. As a result, $ 609,621 406,053 436,672 Comprehensive Income Comprehensive income is defined as the change in equity during the year from transactions and other events, excluding the changes resulting from investments by owners and distributions to owners, and is not included in the computation of income tax expense or benefit. Accumulated comprehensive income consists of foreign currency translation. The Company presents comprehensive income (loss) in accordance with ASC Topic 220, Comprehensive Income. ASC Topic 220 states that all items that are required to be recognized under accounting standards as components of comprehensive income (loss) be reported in the consolidated financial statements. Cash and Cash Equivalents For financial reporting purposes, the Company considers all highly liquid investments purchased with original maturity of three months or less to be cash equivalents. The Company maintains no bank account in the United States of America. The Company maintains its bank accounts in Mainland China and Hong Kong. Balances at financial institutions or state-owned banks within the Mainland China are not covered by insurance. However, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. According to the rules of Hong Kong Deposit Protection Board, in case a member bank of Deposit Protection Scheme (DPS) fails, the DPS will pay compensation up to a maximum of HK$ 500,000 Restricted Cash Restricted cash represents amounts held by a bank as security for bank acceptance notes and therefore is not available for the Company's use until such time as the bank acceptance notes have been fulfilled or expired, normally within twelve month period. Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements and Disclosures Level 1defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; The company's financial instruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, accounts payable, other payables and accrued liabilities, short-term bank loans, and bond payable. The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and other current assets and liabilities approximate fair value because of the short term nature of these items. The estimated fair values of short-term bank loans were not materially different from their carrying value as presented due to the short maturities and that the interest rates on the borrowing approximate those that would have been available for loans of similar remaining maturity and risk profile. As the carrying amounts are reasonable estimates of the fair value, these financial instruments are classified within Level 1 of the fair value hierarchy. The Company identified bond payable as a Level 2 instrument due to the fact that its value can be determined based on similar bonds that are publicly traded and the inputs to the valuation are primarily based upon readily observable pricing information. Since the bond payable's inputs (term and interest rate) is observable, we transferred bond payable from a Level 3 instrument to a Level 2 instrument The balance of bond payable, which was measured and disclosed at fair value, was $ 15,273,177 15,972,837 Earnings per share The Company calculates earnings per share in accordance with ASC Topic 260, Earnings per Share. Basic earnings per share is computed by dividing the net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential ordinary shares equivalents had been issued and if the additional common shares were dilutive. Accounts Receivable Accounts receivable are carried at net realizable value. The Company reviews its accounts receivables on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer's historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. Balance of allowance of doubtful accounts was $ 738,101 1,874,330 Inventories Inventories are stated at the lower of cost or net realizable value, which is based on estimated selling prices less any further costs expected to be incurred for completion and disposal. Cost of raw materials is calculated using the weighted average method and is based on purchase cost. Work-in-progress and finished goods costs are determined using the weighted average method and comprise direct materials, direct labor and an appropriate proportion of overhead. At December 31, 2015 and 2014, the Company has no reserve for inventories. Advance to Suppliers Advance to Suppliers represents interest-free cash paid in advance to suppliers for purchases of raw materials. The balance of advance to suppliers was $ 55,730,089 56,327,390 36,278,463 13,054,423 6,397,203 Customer Deposit Customer deposits consist of amounts paid to the Company in advance for the sale of products in the PRC. The Company receives these amounts and recognizes them as a current liability until the revenue can be recognized when the goods are delivered. The balance of customer deposits was $ 309,147 588,005 Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation, and include expenditure that substantially increases the useful lives of existing assets. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives are as follows: Plant, buildings and improvements 5 20 Machinery and equipment 5 20 Motor vehicles 5 Office Equipment 5 10 When assets are sold or retired, their costs and accumulated depreciation are eliminated from the consolidated financial statements and any gain or loss resulting from their disposal is recognized in the period of disposition as an element of other income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. Land Use Rights According to the PRC laws, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government. The land use rights granted to the Company are being amortized using the straight-line method over the lease term of fifty years. Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable in accordance with FASB ASC 360, Property, Plant and Equipment. In evaluating long-lived assets for recoverability, the Company uses its best estimate of future cash flows expected to result from the use of the asset and eventual disposition in accordance with FASB ASC 360-10-15. To the extent that estimated future, undiscounted cash inflows attributable to the asset, less estimated future, undiscounted cash outflows, are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. Assets to be disposed of and for which there is a committed plan of disposal, whether through sale or abandonment, are reported at the lower of carrying value or fair value less costs to sell. No impairment loss is subsequently reversed even if facts and circumstances indicate recovery. There was no impairment loss recognized for the years ended December 31, 2015, 2014 and 2013. Segments and Related Information one Related Party In general, related parties exist when there is a relationship that offers the potential for transactions at less than arm's-length, favorable treatment, or the ability to influence the outcome of events different from that which might result in the absence of that relationship. A related party may be any of the followings: a) affiliate, a party that directly or indirectly controls, is controlled by, or is under common control with another party; b) principle owner, the owner of record or known beneficial owner of more than 10% of the voting interest of an entity; c) management, persons having responsibility for achieving objectives of the entity and requisite authority to make decision; d) immediate family of management or principal owners; e) a parent company and its subsidiaries; d) other parties that has ability to significant influence the management or operating policies of the entity. FASB issued authoritative guidance that clarifies considerations relating to the consolidation of certain entities. The guidance requires identification of the Company's participation in variable interest entities (VIE), which are defined as entities with a level of invested equity that is not sufficient to fund future activities to permit them to operation on a standalone basis, or whose equity holders lack certain characteristics of a controlling financial interest. That, for entities identified as a VIE, the guidance sets forth a model to evaluate potential consolidation based on a assessment of which party to a VIE, if any, bears a majority of the exposure to expected losses, or stand to gain from majority of its expected returns. The guidance also sets forth certain disclosure regarding interests in a VIE that are deemed significant even if consolidation is not required. This item is discussed in further detail in Note 10 Related Party Transactions. Economic and Political Risks The Company's operations are conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. Exchange Risk The Company cannot guarantee that the current exchange rate will remain steady, therefore there is a possibility that the Company could post the same amount of profit for two comparable periods and because of a fluctuating exchange rate actually post higher or lower profit depending on exchange rate of PRC Renminbi (RMB) converted to U.S. dollars on the date. The exchange rate could fluctuate depending on changes in the political and economic environments without notice. Recently Issued Accounting Pronouncements In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Currently, the Company is evaluating the impact of our pending adoption of ASU 2014-09 and ASU 2015-14 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in year 2018. |
CONCENTRATION
CONCENTRATION | 12 Months Ended |
Dec. 31, 2015 | |
CONCENTRATION [Abstract] | |
CONCENTRATION | NOTE 3 CONCENTRATION Concentration of major customers and suppliers: Year ended December 31, 2015 2014 2013 Major customers with revenues of more than 10% of the Company's sales Company A (3 rd $ 26,720,983 23 % $ - - $ 18,570,574 16 % Company B (3 rd 19,159,563 16 % - - - - Company C (3 rd - - 17,880,306 14 % 12,368,270 11 % Company D (3 rd - - - - 11,380,839 10 % Company E rd Party) 14,280,544 12 % 24,915,113 20 % - - Company F rd Party) 17,831,266 15 % 20,361,459 17 % - - Company G rd Party) - - 15,503,953 13 % - - Total Revenues $ 77,992,356 66 % $ 78,660,831 64 % $ 42,319,683 37 % Year ended December 31, 2015 2014 2013 Major suppliers with purchases of more than 10% of the Company's purchases Company X (3 rd $ 22,137,683 21 % $ 20,021,833 19 % $ - - Company Y (3 rd 36,094,431 35 % 54,268,855 51 % 32,748,784 32 % Company Z (3 rd - - - - 47,407,595 46 % Company U (3 rd 11,729,136 11 % - - - - Company V rd Party) 30,382,342 29 % 12,919,182 12 % - - Total Purchase $ 100,343,592 96 % $ 87,209,870 82 % $ 80,156,379 78 % Accounts receivable related to the Company's major customers comprised 27 63 Accounts payable related to the Company's major suppliers comprised nil |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2015 | |
ACCOUNTS RECEIVABLE [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 4 ACCOUNTS RECEIVABLE Accounts receivable is net of allowance for doubtful accounts. December 31, 2015 2014 Accounts receivable $ 43,986,075 $ 55,638,744 Less: allowance for doubtful accounts (738,101 ) (1,874,330 ) Accounts receivable, net $ 43,247,974 $ 53,764,414 As of December 31, 2015 and 2014, a net book value of nil 2,440,612 Changes in the allowance for doubtful accounts are as follows: December 31, 2015 2014 Beginning balance $ 1,874,330 $ 1,336,177 Provision/(Reverse) for doubtful accounts (1,136,229 ) 538,153 Ending balance $ 738,101 $ 1,874,330 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2015 | |
INVENTORIES [Abstract] | |
INVENTORIES | NOTE 5 INVENTORIES December 31, 2015 2014 Raw materials $ 26,474,521 $ 16,521,066 Work-in-progress 168,612 153,666 Finished goods 633,088 3,463,169 Inventories $ 27,276,221 $ 20,137,901 |
NOTES RECEIVABLE
NOTES RECEIVABLE | 12 Months Ended |
Dec. 31, 2015 | |
NOTES RECEIVABLE [Abstract] | |
NOTES RECIEVABLE | NOTE 6 NOTES RECEIVABLE Bank acceptance notes: December 31, 2015 2014 Due May 20, 2016 $ 2,618,727 $ - Due March 22, 2016, subsequently settled on due date 1,540,429 - Due March 22, 2016, subsequently settled on due date 1,540,429 - Due January 28, 2016, subsequently settled on due date 770,214 - Due January 3, 2016, subsequently settled on due date 1,540,429 - Due June 25, 2015, subsequently settled on due date - 325,414 Due April 30, 2015, subsequently settled on due date - 1,627,075 Due April 16, 2015, subsequently settled on due date - 1,627,075 Due March 26, 2015, subsequently settled on due date - 1,464,366 Due March 10, 2015, subsequently settled on due date - 1,627,075 Due February 28, 2015, subsequently settled on due date - 1,627,075 Due January 17, 2015, subsequently settled on due date - 1,627,075 Total $ 8,010,228 $ 9,925,155 Notes receivable are received from customers for the purchase of the Company's products and are issued by financial institutions that entitle the Company to receive the full face mount from the financial institution at maturity, which bears no interest and generally ranges from three to six months from the date of issuance. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
OTHER CURRENT ASSETS [Abstract] | |
OTHER CURRENT ASSETS | NOTE 7 OTHER CURRENT ASSETS Other current assets consist of the following: December 31, 2015 2014 Deposits for open project bids $ - $ 48,812 VAT deductible 537,137 61,959 Guarantee fee 154,043 406,769 Other receivables 223,861 428,779 $ 915,041 $ 946,319 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 8 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: December 31, 2015 2014 At Cost: Plant and buildings $ 4,117,383 $ 4,348,977 Machinery and equipment 14,833,525 15,616,293 Motor vehicles 311,690 322,115 Office equipment 118,641 121,022 19,381,239 20,408,407 Less: Accumulated depreciation Plant and buildings (2,314,191 ) (2,149,753 ) Machinery and equipment (11,114,880 ) (10,715,803 ) Motor vehicles (286,410 ) (294,729 ) Office equipment (108,582 ) (112,267 ) (13,824,063 ) (13,272,552 ) Construction- in-progress - 38,791 Property, plant and equipment, net $ 5,557,176 $ 7,174,646 Unrealized foreign exchange translation gain/(loss) for the year ended December 31, 2015, 2014 and 2013 was ($329,926 66,536 198,318 1,317,119 1,430,997 1,464,144 1) A net book value of nil 792,795 2) A net book value of $ 1,803,192 1,406,429 |
LAND USE RIGHTS
LAND USE RIGHTS | 12 Months Ended |
Dec. 31, 2015 | |
LAND USE RIGHTS [Abstract] | |
LAND USE RIGHTS | NOTE 9 LAND USE RIGHTS Land use rights consist of the following: December 31, 2015 2014 Cost of land use rights $ 4,746,825 $ 5,013,824 Less: Accumulated amortization (835,741 ) (782,476 ) Land use rights, net $ 3,911,084 $ 4,231,348 Unrealized foreign exchange translation gain/(loss) for the year ended December 31, 2015, 2014 and 2013 was ($221,323 33,781 81,008 98,941 100,282 100,828 1) A net book value of $ 2,491,924 nil 2) A net book value of nil 2,694,754 3) A net book value of $ 1,419,160 1,536,594 Amortization expense for the next five years and thereafter is as follows: 2016 $ 94,937 2017 94,937 2018 94,937 2019 94,937 2020 94,937 Thereafter 3,436,399 Total $ 3,911,084 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 10 RELATED PARTY TRANSACTIONS (a) Names and Relationship of Related Parties: Existing Relationship with the Company Dr. Tang Chairman and controlling shareholder of the Company Shanghai Ossen Material Research Insititute Co., Ltd. (Formerly Shanghai Zhengfangxing Steel Co., Ltd.) (Ossen Material Research) Under common control of Dr. Tang Shanghai Ossen Investment Co., Ltd. (SOI) Under common control of Dr. Tang Shanghai Ossen Investment Holdings (Group) Co., Ltd. (Ossen Shanghai) Under common control of Dr. Tang and Dr. Tang is the President Shanghai Pujiang Cable Co., Ltd. (Shanghai Pujiang) Subsidiary of Ossen Shanghai since September 2010 Zhejiang Pujiang Cable Co., Ltd. (Zhejiang Pujiang) Subsidiary of Shanghai Pujiang since December 2010 (b) Summary of Balances with Related Party: December 31, 2015 2014 Due to related party: Ossen Material Research $ 65,769 $ 69,469 $ 65,769 $ 69,469 The balance of due to related party arises from the purchase of raw materials paid by Ossen Material Research on behalf of the Company. December 31, 2015 2014 Due to shareholder: Dr. Tang $ 282,499 $ 100,000 $ 282,499 $ 100,000 Dr. Tang is the chairman and controlling interest shareholder of the Company. From time to time, Dr. Tang paid operating expenses on behalf of the Company to assist with the Company's cash needs for business purposes. (c) Summary of Related Party Transactions: December 31, 2015 2014 2013 Ossen Material Research provided guarantee for the bank loans borrowed by the Company $ 5,186,623 $ 813,536 $ 4,035,969 Ossen Material Research provided guarantee together with Ossen Shanghai and Dr. Tang for the short-term bank loans borrowed by the Company $ 2,515,520 $ 1,627,075 $ 1,937,265 Ossen Material Research provided guarantee together with Dr. Tang for the short-term bank loans borrowed by the Company $ 4,159,157 $ 5,694,761 $ 3,228,775 Ossen Material Ossen Material Research provided guarantee for the notes payable issued by the Company $ - $ 14,806,378 $ 3,228,775 The Company provided guarantee for the short-term bank loans borrowed by Ossen Material Research $ 32,348,999 $ 4,881,224 $ 4,843,162 The Company provided guarantee for the notes payable issued by Ossen Material Research $ 12,323,428 $ - $ - Ossen Material Research sold raw materials to the Company $ - $ - $ 2,056,102 SOI SOI provided guarantee for the short-term bank loans borrowed by the Company $ - $ 1,627,075 $ - SOI provided guarantee together with Dr. Tang for the short-term bank loans borrowed by the Company $ - $ 3,254,149 $ - Ossen Shanghai Ossen Shanghai provided guarantee together with Ossen Material Research and Dr. Tang for the short-term bank loans borrowed by the Company $ 2,515,520 $ 1,627,075 $ 1,937,265 The Company provided guarantee for the short-term bank loans borrowed by Ossen Shanghai $ 7,702,143 $ - $ - The Company provided guarantee for the notes payable issued by Ossen Shanghai $ 1,540,429 $ - $ - Zhaoyang purchased products from the Company $ - $ - $ 5,148,724 Zhaoyang Shanghai Zhaoyang New Metal Material Co., Ltd. (Zhaoyang) was no longer the Company's related party following the Stock Transfer Agreement signed on March 31, 2013 with 30 Shanghai Pujiang The Company provided guarantee for the short-term bank loans borrowed by Shanghai Pujiang $ 16,944,714 $ 15,457,208 $ 11,300,712 The Company provided guarantee for the notes payable issued by Shanghai Pujiang $ 34,081,982 $ 21,314,676 $ 17,550,330 In accordance with ASC 810-10, Consolidation, the Company first evaluated that none of the related parties met the scope exceptions as outlined in the guidance. The Company then had to determine if it hold any variable interest in the related parties. The Company determined to have a variable interest in Shanghai Pujiang, Ossen Material Research and Ossen Shanghai because the Company guarantees $ 16,944,714 34,081,982 32,438,999 12,333,428 7,702,143 1,540,429 The Company also evaluated the remaining related parties and affiliated entities under ASC 810 and because the Company does not guarantee the debt, the holders of the equity were at risk and therefore determined to be the primary beneficiary and these entities are not variable interest entities that require consolidation. |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | |
OTHER PAYABLES AND ACCRUED EXPENSES | NOTE 11 OTHER PAYABLES AND ACCRUED EXPENSES Other payables and accrued expenses consist of the following: December 31, 2015 2014 Other taxes payable $ 111,584 $ 155,354 Accrued payroll & welfare 14,175 35,110 Accrued expense & liability 967,234 802,059 Interest payable 551,987 583,035 Others 24,690 47,400 $ 1,669,670 $ 1,622,958 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2015 | |
NOTES PAYABLE [Abstract] | |
NOTES PAYABLE | NOTE 12 NOTES PAYABLE Bank acceptance notes: December 31, 2015 2014 Due June 14, 2016 $ 1,540,429 $ - Due June 14, 2016 1,540,429 - Due June 14, 2016 1,540,429 - Due April 18, 2016 1,386,383 - Due January 15, 2016, subsequently repaid on due date 1,540,429 - Due January 14, 2016, subsequently repaid on due date 1,540,429 - Due January 14, 2016, subsequently repaid on due date 1,540,429 - Due January 14, 2016, subsequently repaid on due date 1,078,300 - Due January 14, 2016, subsequently repaid on due date 770,214 - Due May 27, 2015, subsequently repaid on due date - 1,627,075 Due May 27, 2015, subsequently repaid on due date - 1,627,075 Due May 27, 2015, subsequently repaid on due date - 1,627,075 Due May 27, 2015, subsequently repaid on due date - 1,627,075 Due May 11, 2015, subsequently repaid on due date - 1,627,075 Due May 11, 2015, subsequently repaid on due date - 1,627,075 Due April 10, 2015, subsequently repaid on due date - 325,417 Due April 9, 2015, subsequently repaid on due date - 1,627,075 Due March 25, 2015, subsequently repaid on due date - 813,537 Due March 17, 2015, subsequently repaid on due date - 1,138,952 Due March 17, 2015, subsequently repaid on due date - 488,116 Due February 28, 2015, subsequently repaid on due date - 1,627,075 Due February 27, 2015, subsequently repaid on due date - 3,254,149 Due January 31, 2015, subsequently repaid on due date - 813,537 Due January 29, 2015, subsequently repaid on due date - 1,464,367 Due January 23, 2015, subsequently repaid on due date - 1,627,075 Due January 23, 2015, subsequently repaid on due date - 976,245 Due January 21, 2015, subsequently repaid on due date - 976,245 Due January 21, 2015, subsequently repaid on due date - 1,627,075 Total $ 12,477,471 $ 26,521,315 The interest-free notes payable, ranging from six months to one year from the date of issuance, are secured by $ 8,780,443 17,572,732 All the notes payable are subject to bank charges of 0.05 |
SHORT TERM BANK LOANS
SHORT TERM BANK LOANS | 12 Months Ended |
Dec. 31, 2015 | |
SHORT TERM BANK LOANS [Abstract] | |
SHORT TERM BANK LOANS | NOTE 13 SHORT TERM BANK LOANS Short-term loans are summarized as follows: Bank Name Interest Rate per Annum December 31, 2015 2014 Due on December 24, 2016, Agricultural Bank of China (ABC) Jiu Long Branch 5.44 % $ 2,772,771 $ - Due on December 2, 2016, China Construction Bank (CCB) Jiu Jiang Branch 4.40 % 3,388,943 - Due on December 1, 2016, Anhui Rural Commercial Bank (ARCB) Ma An Shan Branch 6.216 % 5,186,623 - Due on November 3, 2016, ABC Jiu Long Branch 5.87 % 770,214 - Due on June 29, 2016, guaranteed by Ma An Shan Pubang Financing guarantee co., Ltd, a 3 rd Anhui Commercial Bank (ACB) Fei Cui Branch 7.80 % 1,540,429 Due on June 6, 2016, ARCB Ma An Shan Branch 6.60 % 2,515,520 Due on April 16, 2016, guaranteed by Ma An Shan Pubang Financing guarantee co., Ltd, a 3 rd ACB Fei Cui Branch 6.95 % 1,540,429 Due on December 17, 2015, ABC Jiu Long Branch 7.00 % $ - $ 3,254,149 Due on October 30, 2015, ABC Jiu Long Branch 7.80 % - 813,536 Due on October 28, 2015, ARCB Ma An Shan Branch 7.728 % - 1,627,075 Due on October 28, 2015, ARCB Ma An Shan Branch 7.416 % - 3,254,149 Due on August 13, 2015, CCB Jiu Jiang Branch 6.00 % - 4,067,686 Due on June 12, 2015, Bank of China (BOC) 7.28 % - 2,440,612 Due on March 9, 2015, China Everbright Bank (CEB) Ma An Shan Branch 7.28 % - 1,627,075 Due on January 2, 2015, rd ACB Fei Cui Branch 6.60 % - 1,627,075 Total $ 17,714,928 $ 18,711,357 All short term bank loans are obtained from local banks in China and are repayable within one year. The average annual interest rate of the short-term bank loans was 6.182% and 7.138% as of December 31, 2015 and 2014, respectively. Interest expense, included in the financial expenses in the statement of operations, was $1,017,345, $1,943,115 and $2,663,924 for the years ended December 31, 2015, 2014 and 2013, respectively. The Company was in compliance of their financial covenants at December 31, 2015 and 2014, respectively. |
BOND PAYABLE
BOND PAYABLE | 12 Months Ended |
Dec. 31, 2015 | |
BOND PAYABLE [Abstract] | |
BOND PAYABLE | NOTE 14 BOND PAYABLE Interest rate December 31, 2015 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Due September 4, 2016 10.75 % - 15,273,177 - - - 15,972,837 Total bond payable $ - 15,273,177 - $ - - 15,972,837 On September 4, 2014 100,000,000 2,172,228 610,571 nil |
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM | 12 Months Ended |
Dec. 31, 2015 | |
STOCK REPURCHASE PROGRAM [Abstract] | |
STOCK REPURCHASE PROGRAM | NOTE 15 STOCK REPURCHASE PROGRAM In May 2015, the Company's Board of Directors approved a share repurchase program for up to a total of 500,000 73,169 58,735 |
EARNINGS PER SHARES
EARNINGS PER SHARES | 12 Months Ended |
Dec. 31, 2015 | |
EARNINGS PER SHARES [Abstract] | |
EARNINGS PER SHARES | NOTE 16 EARNINGS PER SHARES Basic earnings per share are computed by dividing income attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per ordinary share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. The following table sets forth the computation of basic and diluted earnings per share for the periods indicated: December 31, 2015 2014 2013 Net income attribute to the Company $ 5,896,804 $ 3,858,876 $ 3,643,404 Weighted average ordinary shares outstanding - basic and diluted 19,862,537 19,901,959 19,901,959 Basic and diluted earnings per share $ 0.30 $ 0.19 $ 0.18 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAX [Abstract] | |
INCOME TAX | NOTE 17 INCOME TAX BVI Ossen Innovation Co., Ltd, Ossen Innovation Group, Ossen Asia and Topchina are registered in the British Virgin Island and are exempt from income tax. The PRC According to the relevant laws and regulations in the PRC, foreign invested enterprises established prior to January 1, 2008 are entitled to full exemption from income tax for two years beginning with the first year in which such enterprise is profitable and a 50% income tax reduction for the subsequent three years. Ossen Materials was entitled to an exemption during the two years ended December 31, 2006 and was subject to a 50% income tax reduction during the three years ended December 31, 2009. Starting from January 1, 2010, Ossen Materials enjoys a tax rate of 15% as it is considered as a High and New Technology Enterprise by the PRC government. Ossen Jiujiang was entitled to the CIT exemption during the two years ended December 31, 2008, was subject to a 50% income tax reduction during the three years ended December 31, 2011. Starting from January 1, 2012, Ossen Jiujiang enjoys a tax rate of 15% as it is considered as a High and New Technology Enterprise by the PRC government. Enterprises established under the laws of foreign countries or regions and whose place of effective management is located within the PRC territory are considered PRC resident enterprises and subject to the PRC income tax at the rate of 25% on worldwide income. The definition of place of effective management" refers to an establishment that exercises, in substance, overall management and control over the production and business, personnel, accounting, properties, etc. of an enterprise. As of December 31, 2015, no detailed interpretation or guidance has been issued to define place of effective management. Furthermore, as of December 31, 2015, the administrative practice associated with interpreting and applying the concept of place of effective management is unclear. If the Company's non-PRC incorporated entities are deemed PRC tax residents, such entities would be subject to PRC tax The Company has analyzed the applicability of this law, as of December 31, 2015, and the Company has not accrued for PRC tax on such basis. The Company will continue to monitor changes in the interpretation or guidance of this law. PRC tax law also imposes a 10% withholding income tax, subject to reduction based on tax treaty where applicable, for dividends distributed by a foreign invested enterprise to its immediate holding company outside China. Such dividends were exempted from PRC tax under the previous income tax law and regulations. The foreign invested enterprise is subject to the withholding tax starting from January 1, 2008. There were no dividends distributed in the years ended December 31, 2015 and 2014. Income tax expenses consist of the following: Year Ended December 31, 2015 2014 2013 Current $ 1,018,143 $ 745,338 $ 1,224,430 Deferred 162,024 ( 166,611 ) ( 5,400 ) Income tax expenses $ 1,180,167 $ 578,727 $ 1,219,030 Reconciliation from the expected income tax expenses calculated with reference to the statutory tax rate in the PRC of 25 Year Ended December 31, 2015 2014 2013 Computed "expected" income tax expenses $ 1,948,393 $ 1,178,571 $ 1,322,219 Effect on tax incentive / holiday (982,104 ) ( 726,615 ) ( 645,720 ) Non-deductable expense 213,878 126,771 542,531 Income tax expenses $ 1,180,167 $ 578,727 $ 1,219,030 Components of net deferred tax assets are as follows: December 31, 2015 2014 2013 Provision of doubtful accounts $ 110,715 $ 281,150 $ 200,427 Provision of interest expense 82,798 87,455 - $ 193,513 $ 368,605 $ 200,427 The deferred tax assets balance of $193,513, $368,605 and $200,427 at December 31, 2015, 2014 and 2013 respectively are included in other current assets in the accompanying consolidated balance sheets. |
GEOGRAPHICAL SALES AND SEGMENTS
GEOGRAPHICAL SALES AND SEGMENTS | 12 Months Ended |
Dec. 31, 2015 | |
GEOGRAPHICAL SALES AND SEGMENTS [Abstract] | |
GEOGRAPHICAL SALES AND SEGMENTS | NOTE 18 GEOGRAPHICAL SALES AND SEGMENTS Our management does not capture financial information or utilize operating segments to make decisions about the business. Management believes that it operates in one Year Ended December 31, 2015 2014 2013 Domestic Sales $ 110,109,028 $ 115,256,175 $ 107,273,543 International Sales 7,799,388 8,315,280 6,618,446 $ 117,908,416 $ 123,571,455 $ 113,891,989 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 19 SUBSEQUENT EVENTS We have evaluated all events or transactions that occurred after December 31, 2015 up through the date we issued the consolidated financial statements. |
Condensed Financial Information
Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company | |
Condensed Financial Information of Parent Company | OSSEN INNOVATION CO., LTD SCHEDULE I CONDENSED PARENT COMPANY FINANCIAL INFORMATION OSSEN INNOVATION CO., LTD CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2015 AND 2014 December, 31 2015 2014 ASSETS Current Assets Cash $ 81,493 $ 23,762 Due from related party 20,000,000 20,000,000 Total Current Assets 20,081,493 20,023,762 Investments in subsidiaries 73,637,980 73,371,675 TOTAL ASSETS $ 93,719,473 $ 93,395,437 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Other payables and accrued liabilities $ 934,997 $ 802,059 Due to shareholder 282,499 100,000 Total Current Liabilities 1,217,496 902,059 TOTAL LIABILITIES $ 1,217,496 $ 902,059 EQUITY Shareholders' Equity Ordinary shares, $ 0.01 100,000,000 20,000,000 19,828,790 19,901,959 $ 200,000 $ 200,000 Additional paid-in capital 33,971,455 33,971,455 Statutory reserve 5,631,373 5,021,752 Retained earnings 50,258,265 44,971,082 Accumulated other comprehensive income 2,596,227 8,425,697 Treasury stock, at cost: 171,210 98,041 (155,343 ) (96,608 ) TOTAL SHAREHOLDERS' EQUITY 92,501,977 92,493,378 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 93,719,473 $ 93,395,437 OSSEN INNOVATION CO., LTD CONDENSED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013 Year Ended December, 31 2015 2014 2013 REVENUES $ - $ - $ - COST OF GOODS SOLD - - - GROSS PROFIT - - - Selling expenses - - - General and administrative expenses (198,753 ) ( 201,439 ) (722,695 ) Total Operating Expenses (198,753 ) ( 201,439 ) (722,695 ) LOSS FROM OPERATIONS (198,753 ) ( 201,439 ) (722,695 ) Financial expenses, net 272 219 263 Equity in income of subsidiaries 6,095,829 4,060,534 4,366,362 INCOME BEFORE INCOME TAX 5,896,804 3,858,876 3,643,404 INCOME TAX - - - NET INCOME 5,896,804 3,858,876 3,643,404 OTHER COMPREHENSIVE INCOME Foreign currency translation gain (loss) (5,829,470 ) 779,135 1,647,348 TOTAL OTHER COMPREHENSIVE INCOME (LOSS) (5,829,470 ) 779,135 1,647,348 COMPREHENSIVE INCOME $ 67,334 $ 4,638,011 $ 5,290,752 OSSEN INNOVATION CO., LTD CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013 Year Ended December, 31 2015 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 5,896,804 $ 3,858,876 $ 3,643,404 Adjustments to reconcile net income to net cash provided by operating activities: Equity in earnings of subsidiaries (6,095,829 ) ( 4,060,534 ) (4,366,362 ) Other payables and accrued liabilities 132,938 156,249 645,810 Due to shareholder 182,499 50,000 50,000 Net cash provided by / (used in) operating activities 116,412 4,591 (27,148 ) CASH FLOWS FROM INVESTING ACTIVITIES: Net cash provided by / (used in) investing activities - - - CASH FLOWS FROM FINANCING ACTIVITIES: Treasury stock purchased (58,735 ) - - Net cash provided by / (used in) financing activities (58,735 ) - - INCREASE / (DECREASE) IN CASH 57,677 4,591 (27,148 ) Effect of exchange rate changes on cash 54 - (49 ) Cash at beginning of period 23,762 19,171 46,368 CASH AT END OF PERIOD $ 81,493 $ 23,762 $ 19,171 |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Ossen Innovation Co., Ltd. and its subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). Intercompany accounts and transactions have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated and combined financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. Actual results could differ from those estimates. |
Non-controlling Interest | Non-controlling Interest Non-controlling interests in the Company's subsidiaries are recorded in accordance with the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification 810 Consolidation (ASC 810) and are reported as a component of equity, separate from the parent's equity. Purchase or sale of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interest are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings. |
Foreign Currency Translation | Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollars (US$ or $). The functional currency of the Company is Renminbi (RMB). The consolidated financial statements are translated into United States dollars from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The resulting transaction adjustments are recorded as a component of shareholders' equity. Gains and losses from foreign currency transactions are included in net income. 2015 2014 2013 Year end RMB: US$ exchange rate 6.4917 6.1460 6.1943 Average yearly RMB: US$ exchange rate 6.2288 6.1457 6.1122 The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in translation. |
Revenue Recognition | Revenue Recognition In accordance with the ASC Topic 605, Revenue Recognition, the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller's price to the buyer is fixed or determinable, and collectability is reasonable assured. The Company derives revenues from the processing, distribution and sale of own products. The Company recognizes its revenues net of value-added taxes (VAT). The Company is subject to VAT which is levied on the rate of 17% on the invoiced value of sales. Output VAT is borne by customers in addition to the invoiced value of sales and input VAT is borne by the Company in addition to the invoiced value of purchases to the extent not refunded for export sales. The Company will recognize revenue for domestic sales based on the terms defined in the contract as long as risk of loss has transferred to the customers and each of the criteria under ASC 605 have been met. Contracts terms may require the Company to deliver the finished goods to the customers' location or the customer may pick up the finished goods at the Company's factory. International sales are recognized when shipment clears customs and leaves the port. The Company also derives an insignificant amount of revenue from providing services to select customers. Service revenues account for less than 2% of total revenues for all periods presented and is recognized upon delivery and acceptance of the finished products by the customer, or when pick up occurs. Contracts with distributors do not offer any chargeback or price protection. The Company experienced no product returns and recorded no reserve for sales returns for the years ended December 31, 2015, 2014 and 2013. |
Cost of Sales | Cost of Sales Cost of revenue includes direct and indirect production costs, as well as freight in and handling costs for products sold. |
Selling Expenses | Selling Expenses Selling expenses include operating expenses such as sales commissions, payroll, traveling expenses, transportation expenses and advertising expenses. |
General and Administrative ("G&A") Expenses | General and Administrative (G&A) Expenses General and administrative expenses include management and office salaries and employee benefits, deprecation for office facility and office equipment, travel and entertainment, legal and accounting, consulting fees and other office expenses. |
Research and Development | Research and Development Research and development costs are expensed as incurred and totaled approximately $ 3,404,333 3,914,918 1,260,440 |
Retirement Benefits | Retirement Benefits Retirement benefits in the form of contributions under defined contribution retirement plans to the relevant authorities are charged to operations as incurred. Retirement benefits of $ 148,232 140,823 133,230 |
Income Taxes | Income Taxes The Company accounts for income taxes following the liability method pursuant to FASB ASC 740 Income Taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in income in the period that includes the enactment date. The Company also follows FASB ASC 740, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of December 31, 2015, the Company did not have a liability for unrecognized tax benefits. The Company has not provided for income taxes on accumulated earnings amounting $ 50,258,265 |
Value-Added Tax ("VAT") | Value-Added Tax (VAT) Enterprises or individuals, who sell commodities, engage in repair and maintenance or import or export goods in the PRC are subject to a value added tax in accordance with Chinese Laws. The VAT standard rate is 17 |
Statutory Reserve | Statutory Reserve In accordance with the PRC Regulations on Enterprises with Foreign Investment, an enterprise established in the PRC with foreign investment is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise's PRC statutory accounts. A wholly-owned foreign enterprise (WOFE) is required to allocate at least 10% of its annual after-tax profit to the General Reserve Fund until the balance of such fund has reached 50% of its respective registered capital. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. Appropriations to the Enterprise Expansion Fund and Staff Welfare and Bonus Fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. As a result, $ 609,621 406,053 436,672 |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity during the year from transactions and other events, excluding the changes resulting from investments by owners and distributions to owners, and is not included in the computation of income tax expense or benefit. Accumulated comprehensive income consists of foreign currency translation. The Company presents comprehensive income (loss) in accordance with ASC Topic 220, Comprehensive Income. ASC Topic 220 states that all items that are required to be recognized under accounting standards as components of comprehensive income (loss) be reported in the consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents For financial reporting purposes, the Company considers all highly liquid investments purchased with original maturity of three months or less to be cash equivalents. The Company maintains no bank account in the United States of America. The Company maintains its bank accounts in Mainland China and Hong Kong. Balances at financial institutions or state-owned banks within the Mainland China are not covered by insurance. However, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant risks on its cash in bank accounts. According to the rules of Hong Kong Deposit Protection Board, in case a member bank of Deposit Protection Scheme (DPS) fails, the DPS will pay compensation up to a maximum of HK$ 500,000 |
Restricted Cash | Restricted Cash Restricted cash represents amounts held by a bank as security for bank acceptance notes and therefore is not available for the Company's use until such time as the bank acceptance notes have been fulfilled or expired, normally within twelve month period. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements and Disclosures Level 1defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; The company's financial instruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, accounts payable, other payables and accrued liabilities, short-term bank loans, and bond payable. The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and other current assets and liabilities approximate fair value because of the short term nature of these items. The estimated fair values of short-term bank loans were not materially different from their carrying value as presented due to the short maturities and that the interest rates on the borrowing approximate those that would have been available for loans of similar remaining maturity and risk profile. As the carrying amounts are reasonable estimates of the fair value, these financial instruments are classified within Level 1 of the fair value hierarchy. The Company identified bond payable as a Level 2 instrument due to the fact that its value can be determined based on similar bonds that are publicly traded and the inputs to the valuation are primarily based upon readily observable pricing information. Since the bond payable's inputs (term and interest rate) is observable, we transferred bond payable from a Level 3 instrument to a Level 2 instrument The balance of bond payable, which was measured and disclosed at fair value, was $ 15,273,177 15,972,837 |
Earnings per share | Earnings per share The Company calculates earnings per share in accordance with ASC Topic 260, Earnings per Share. Basic earnings per share is computed by dividing the net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential ordinary shares equivalents had been issued and if the additional common shares were dilutive. |
Accounts Receivable | Accounts Receivable Accounts receivable are carried at net realizable value. The Company reviews its accounts receivables on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer's historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. Balance of allowance of doubtful accounts was $ 738,101 1,874,330 |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, which is based on estimated selling prices less any further costs expected to be incurred for completion and disposal. Cost of raw materials is calculated using the weighted average method and is based on purchase cost. Work-in-progress and finished goods costs are determined using the weighted average method and comprise direct materials, direct labor and an appropriate proportion of overhead. At December 31, 2015 and 2014, the Company has no reserve for inventories. |
Advance to Suppliers | Advance to Suppliers Advance to Suppliers represents interest-free cash paid in advance to suppliers for purchases of raw materials. The balance of advance to suppliers was $ 55,730,089 56,327,390 36,278,463 13,054,423 6,397,203 |
Customer Deposits | Customer Deposit Customer deposits consist of amounts paid to the Company in advance for the sale of products in the PRC. The Company receives these amounts and recognizes them as a current liability until the revenue can be recognized when the goods are delivered. The balance of customer deposits was $ 309,147 588,005 |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost less accumulated depreciation, and include expenditure that substantially increases the useful lives of existing assets. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives are as follows: Plant, buildings and improvements 5 20 Machinery and equipment 5 20 Motor vehicles 5 Office Equipment 5 10 When assets are sold or retired, their costs and accumulated depreciation are eliminated from the consolidated financial statements and any gain or loss resulting from their disposal is recognized in the period of disposition as an element of other income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized. |
Land Use Rights | Land Use Rights According to the PRC laws, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government. The land use rights granted to the Company are being amortized using the straight-line method over the lease term of fifty years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable in accordance with FASB ASC 360, Property, Plant and Equipment. In evaluating long-lived assets for recoverability, the Company uses its best estimate of future cash flows expected to result from the use of the asset and eventual disposition in accordance with FASB ASC 360-10-15. To the extent that estimated future, undiscounted cash inflows attributable to the asset, less estimated future, undiscounted cash outflows, are less than the carrying amount, an impairment loss is recognized in an amount equal to the difference between the carrying value of such asset and its fair value. Assets to be disposed of and for which there is a committed plan of disposal, whether through sale or abandonment, are reported at the lower of carrying value or fair value less costs to sell. No impairment loss is subsequently reversed even if facts and circumstances indicate recovery. There was no impairment loss recognized for the years ended December 31, 2015, 2014 and 2013. |
Segments and Related Information | Segments and Related Information one |
Related Party | Related Party In general, related parties exist when there is a relationship that offers the potential for transactions at less than arm's-length, favorable treatment, or the ability to influence the outcome of events different from that which might result in the absence of that relationship. A related party may be any of the followings: a) affiliate, a party that directly or indirectly controls, is controlled by, or is under common control with another party; b) principle owner, the owner of record or known beneficial owner of more than 10% of the voting interest of an entity; c) management, persons having responsibility for achieving objectives of the entity and requisite authority to make decision; d) immediate family of management or principal owners; e) a parent company and its subsidiaries; d) other parties that has ability to significant influence the management or operating policies of the entity. FASB issued authoritative guidance that clarifies considerations relating to the consolidation of certain entities. The guidance requires identification of the Company's participation in variable interest entities (VIE), which are defined as entities with a level of invested equity that is not sufficient to fund future activities to permit them to operation on a standalone basis, or whose equity holders lack certain characteristics of a controlling financial interest. That, for entities identified as a VIE, the guidance sets forth a model to evaluate potential consolidation based on a assessment of which party to a VIE, if any, bears a majority of the exposure to expected losses, or stand to gain from majority of its expected returns. The guidance also sets forth certain disclosure regarding interests in a VIE that are deemed significant even if consolidation is not required. This item is discussed in further detail in Note 10 Related Party Transactions. |
Economic and Political Risks | Economic and Political Risks The Company's operations are conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company's operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. |
Exchange Risk | Exchange Risk The Company cannot guarantee that the current exchange rate will remain steady, therefore there is a possibility that the Company could post the same amount of profit for two comparable periods and because of a fluctuating exchange rate actually post higher or lower profit depending on exchange rate of PRC Renminbi (RMB) converted to U.S. dollars on the date. The exchange rate could fluctuate depending on changes in the political and economic environments without notice. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Currently, the Company is evaluating the impact of our pending adoption of ASU 2014-09 and ASU 2015-14 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in year 2018. |
ORGANIZATION AND PRINCIPAL AC28
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES [Abstract] | |
Summary of Subsidiary Information | Name Domicile and Date Paid-in Capital Percentage Principal Activities Ossen Innovation Materials Group, Co., Ltd. (Ossen Innovation BVI USD - 100 % Investments holdings Ossen Group (Asia) Co., Ltd. ("Ossen Asia") BVI USD - 100 % Investments holdings Topchina Development Group Ltd. ("Topchina") BVI USD - 100 % Investments holdings Ossen Innovation Materials Co., Ltd. ("Ossen Meterials") The PRC RMB 75,000,000 81 % Design, engineering, manufacture and sale Ossen (Jiujiang) New Materials Co., Ltd. (Formerly Ossen (Jiujiang) Steel Wire & Cable Co., Ltd.) ("Ossen Jiujiang") The PRC RMB 183,271,074 96.11 % Design, engineering, manufacture and sale |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule of Foreign Currency Balances | 2015 2014 2013 Year end RMB: US$ exchange rate 6.4917 6.1460 6.1943 Average yearly RMB: US$ exchange rate 6.2288 6.1457 6.1122 |
CONCENTRATION (Tables)
CONCENTRATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
CONCENTRATION [Abstract] | |
Schedule of Major Customer Concentration | Year ended December 31, 2015 2014 2013 Major customers with revenues of more than 10% of the Company's sales Company A (3 rd $ 26,720,983 23 % $ - - $ 18,570,574 16 % Company B (3 rd 19,159,563 16 % - - - - Company C (3 rd - - 17,880,306 14 % 12,368,270 11 % Company D (3 rd - - - - 11,380,839 10 % Company E rd Party) 14,280,544 12 % 24,915,113 20 % - - Company F rd Party) 17,831,266 15 % 20,361,459 17 % - - Company G rd Party) - - 15,503,953 13 % - - Total Revenues $ 77,992,356 66 % $ 78,660,831 64 % $ 42,319,683 37 % |
Schedule of Supplier Concentration | Year ended December 31, 2015 2014 2013 Major suppliers with purchases of more than 10% of the Company's purchases Company X (3 rd $ 22,137,683 21 % $ 20,021,833 19 % $ - - Company Y (3 rd 36,094,431 35 % 54,268,855 51 % 32,748,784 32 % Company Z (3 rd - - - - 47,407,595 46 % Company U (3 rd 11,729,136 11 % - - - - Company V rd Party) 30,382,342 29 % 12,919,182 12 % - - Total Purchase $ 100,343,592 96 % $ 87,209,870 82 % $ 80,156,379 78 % |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ACCOUNTS RECEIVABLE [Abstract] | |
Schedule of Accounts Receivable | December 31, 2015 2014 Accounts receivable $ 43,986,075 $ 55,638,744 Less: allowance for doubtful accounts (738,101 ) (1,874,330 ) Accounts receivable, net $ 43,247,974 $ 53,764,414 |
Schedule of Allowance for Doubtful Accounts | December 31, 2015 2014 Beginning balance $ 1,874,330 $ 1,336,177 Provision/(Reverse) for doubtful accounts (1,136,229 ) 538,153 Ending balance $ 738,101 $ 1,874,330 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INVENTORIES [Abstract] | |
Schedule of Inventories | December 31, 2015 2014 Raw materials $ 26,474,521 $ 16,521,066 Work-in-progress 168,612 153,666 Finished goods 633,088 3,463,169 Inventories $ 27,276,221 $ 20,137,901 |
NOTES RECEIVABLE (Tables)
NOTES RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
NOTES RECEIVABLE [Abstract] | |
Schedule of Notes Receivable | Bank acceptance notes: December 31, 2015 2014 Due May 20, 2016 $ 2,618,727 $ - Due March 22, 2016, subsequently settled on due date 1,540,429 - Due March 22, 2016, subsequently settled on due date 1,540,429 - Due January 28, 2016, subsequently settled on due date 770,214 - Due January 3, 2016, subsequently settled on due date 1,540,429 - Due June 25, 2015, subsequently settled on due date - 325,414 Due April 30, 2015, subsequently settled on due date - 1,627,075 Due April 16, 2015, subsequently settled on due date - 1,627,075 Due March 26, 2015, subsequently settled on due date - 1,464,366 Due March 10, 2015, subsequently settled on due date - 1,627,075 Due February 28, 2015, subsequently settled on due date - 1,627,075 Due January 17, 2015, subsequently settled on due date - 1,627,075 Total $ 8,010,228 $ 9,925,155 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
OTHER CURRENT ASSETS [Abstract] | |
Schedule of Other Current Assets | December 31, 2015 2014 Deposits for open project bids $ - $ 48,812 VAT deductible 537,137 61,959 Guarantee fee 154,043 406,769 Other receivables 223,861 428,779 $ 915,041 $ 946,319 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |
Schedule of Property, Plant and Equipment | December 31, 2015 2014 At Cost: Plant and buildings $ 4,117,383 $ 4,348,977 Machinery and equipment 14,833,525 15,616,293 Motor vehicles 311,690 322,115 Office equipment 118,641 121,022 19,381,239 20,408,407 Less: Accumulated depreciation Plant and buildings (2,314,191 ) (2,149,753 ) Machinery and equipment (11,114,880 ) (10,715,803 ) Motor vehicles (286,410 ) (294,729 ) Office equipment (108,582 ) (112,267 ) (13,824,063 ) (13,272,552 ) Construction- in-progress - 38,791 Property, plant and equipment, net $ 5,557,176 $ 7,174,646 |
LAND USE RIGHTS (Tables)
LAND USE RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
LAND USE RIGHTS [Abstract] | |
Schedule of Land Use Rights | December 31, 2015 2014 Cost of land use rights $ 4,746,825 $ 5,013,824 Less: Accumulated amortization (835,741 ) (782,476 ) Land use rights, net $ 3,911,084 $ 4,231,348 |
Schedule of Future Amortization Expense | 2016 $ 94,937 2017 94,937 2018 94,937 2019 94,937 2020 94,937 Thereafter 3,436,399 Total $ 3,911,084 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Summary of Balances with Related Party | December 31, 2015 2014 Due to related party: Ossen Material Research $ 65,769 $ 69,469 $ 65,769 $ 69,469 December 31, 2015 2014 Due to shareholder: Dr. Tang $ 282,499 $ 100,000 $ 282,499 $ 100,000 |
Summary of Related Party Transactions | December 31, 2015 2014 2013 Ossen Material Research provided guarantee for the bank loans borrowed by the Company $ 5,186,623 $ 813,536 $ 4,035,969 Ossen Material Research provided guarantee together with Ossen Shanghai and Dr. Tang for the short-term bank loans borrowed by the Company $ 2,515,520 $ 1,627,075 $ 1,937,265 Ossen Material Research provided guarantee together with Dr. Tang for the short-term bank loans borrowed by the Company $ 4,159,157 $ 5,694,761 $ 3,228,775 Ossen Material Ossen Material Research provided guarantee for the notes payable issued by the Company $ - $ 14,806,378 $ 3,228,775 The Company provided guarantee for the short-term bank loans borrowed by Ossen Material Research $ 32,348,999 $ 4,881,224 $ 4,843,162 The Company provided guarantee for the notes payable issued by Ossen Material Research $ 12,323,428 $ - $ - Ossen Material Research sold raw materials to the Company $ - $ - $ 2,056,102 SOI SOI provided guarantee for the short-term bank loans borrowed by the Company $ - $ 1,627,075 $ - SOI provided guarantee together with Dr. Tang for the short-term bank loans borrowed by the Company $ - $ 3,254,149 $ - Ossen Shanghai Ossen Shanghai provided guarantee together with Ossen Material Research and Dr. Tang for the short-term bank loans borrowed by the Company $ 2,515,520 $ 1,627,075 $ 1,937,265 The Company provided guarantee for the short-term bank loans borrowed by Ossen Shanghai $ 7,702,143 $ - $ - The Company provided guarantee for the notes payable issued by Ossen Shanghai $ 1,540,429 $ - $ - Zhaoyang purchased products from the Company $ - $ - $ 5,148,724 Zhaoyang Shanghai Zhaoyang New Metal Material Co., Ltd. (Zhaoyang) was no longer the Company's related party following the Stock Transfer Agreement signed on March 31, 2013 with 30 Shanghai Pujiang The Company provided guarantee for the short-term bank loans borrowed by Shanghai Pujiang $ 16,944,714 $ 15,457,208 $ 11,300,712 The Company provided guarantee for the notes payable issued by Shanghai Pujiang $ 34,081,982 $ 21,314,676 $ 17,550,330 |
OTHER PAYABLES AND ACCRUED EX38
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | |
Schedule of Other Payables and Accrued Expenses | December 31, 2015 2014 Other taxes payable $ 111,584 $ 155,354 Accrued payroll & welfare 14,175 35,110 Accrued expense & liability 967,234 802,059 Interest payable 551,987 583,035 Others 24,690 47,400 $ 1,669,670 $ 1,622,958 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
NOTES PAYABLE [Abstract] | |
Schedule of Notes Payable | December 31, 2015 2014 Due June 14, 2016 $ 1,540,429 $ - Due June 14, 2016 1,540,429 - Due June 14, 2016 1,540,429 - Due April 18, 2016 1,386,383 - Due January 15, 2016, subsequently repaid on due date 1,540,429 - Due January 14, 2016, subsequently repaid on due date 1,540,429 - Due January 14, 2016, subsequently repaid on due date 1,540,429 - Due January 14, 2016, subsequently repaid on due date 1,078,300 - Due January 14, 2016, subsequently repaid on due date 770,214 - Due May 27, 2015, subsequently repaid on due date - 1,627,075 Due May 27, 2015, subsequently repaid on due date - 1,627,075 Due May 27, 2015, subsequently repaid on due date - 1,627,075 Due May 27, 2015, subsequently repaid on due date - 1,627,075 Due May 11, 2015, subsequently repaid on due date - 1,627,075 Due May 11, 2015, subsequently repaid on due date - 1,627,075 Due April 10, 2015, subsequently repaid on due date - 325,417 Due April 9, 2015, subsequently repaid on due date - 1,627,075 Due March 25, 2015, subsequently repaid on due date - 813,537 Due March 17, 2015, subsequently repaid on due date - 1,138,952 Due March 17, 2015, subsequently repaid on due date - 488,116 Due February 28, 2015, subsequently repaid on due date - 1,627,075 Due February 27, 2015, subsequently repaid on due date - 3,254,149 Due January 31, 2015, subsequently repaid on due date - 813,537 Due January 29, 2015, subsequently repaid on due date - 1,464,367 Due January 23, 2015, subsequently repaid on due date - 1,627,075 Due January 23, 2015, subsequently repaid on due date - 976,245 Due January 21, 2015, subsequently repaid on due date - 976,245 Due January 21, 2015, subsequently repaid on due date - 1,627,075 Total $ 12,477,471 $ 26,521,315 |
SHORT TERM BANK LOANS (Tables)
SHORT TERM BANK LOANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SHORT TERM BANK LOANS [Abstract] | |
Schedule of Short Term Bank Loans | Bank Name Interest Rate per Annum December 31, 2015 2014 Due on December 24, 2016, Agricultural Bank of China (ABC) Jiu Long Branch 5.44 % $ 2,772,771 $ - Due on December 2, 2016, China Construction Bank (CCB) Jiu Jiang Branch 4.40 % 3,388,943 - Due on December 1, 2016, Anhui Rural Commercial Bank (ARCB) Ma An Shan Branch 6.216 % 5,186,623 - Due on November 3, 2016, ABC Jiu Long Branch 5.87 % 770,214 - Due on June 29, 2016, guaranteed by Ma An Shan Pubang Financing guarantee co., Ltd, a 3 rd Anhui Commercial Bank (ACB) Fei Cui Branch 7.80 % 1,540,429 Due on June 6, 2016, ARCB Ma An Shan Branch 6.60 % 2,515,520 Due on April 16, 2016, guaranteed by Ma An Shan Pubang Financing guarantee co., Ltd, a 3 rd ACB Fei Cui Branch 6.95 % 1,540,429 Due on December 17, 2015, ABC Jiu Long Branch 7.00 % $ - $ 3,254,149 Due on October 30, 2015, ABC Jiu Long Branch 7.80 % - 813,536 Due on October 28, 2015, ARCB Ma An Shan Branch 7.728 % - 1,627,075 Due on October 28, 2015, ARCB Ma An Shan Branch 7.416 % - 3,254,149 Due on August 13, 2015, CCB Jiu Jiang Branch 6.00 % - 4,067,686 Due on June 12, 2015, Bank of China (BOC) 7.28 % - 2,440,612 Due on March 9, 2015, China Everbright Bank (CEB) Ma An Shan Branch 7.28 % - 1,627,075 Due on January 2, 2015, rd ACB Fei Cui Branch 6.60 % - 1,627,075 Total $ 17,714,928 $ 18,711,357 |
BOND PAYABLE (Tables)
BOND PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
BOND PAYABLE [Abstract] | |
Schedule of Long Term Bank Loans | Interest rate December 31, 2015 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Due September 4, 2016 10.75 % - 15,273,177 - - - 15,972,837 Total bond payable $ - 15,273,177 - $ - - 15,972,837 |
EARNINGS PER SHARES (Tables)
EARNINGS PER SHARES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
EARNINGS PER SHARES [Abstract] | |
Schedule of the Computation of Basic and Diluted Earnings Per Share | December 31, 2015 2014 2013 Net income attribute to the Company $ 5,896,804 $ 3,858,876 $ 3,643,404 Weighted average ordinary shares outstanding - basic and diluted 19,862,537 19,901,959 19,901,959 Basic and diluted earnings per share $ 0.30 $ 0.19 $ 0.18 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAX [Abstract] | |
Schedule of Income Tax Expenses | Year Ended December 31, 2015 2014 2013 Current $ 1,018,143 $ 745,338 $ 1,224,430 Deferred 162,024 ( 166,611 ) ( 5,400 ) Income tax expenses $ 1,180,167 $ 578,727 $ 1,219,030 |
Schedule of Effective Income Tax Reconciliation | Year Ended December 31, 2015 2014 2013 Computed "expected" income tax expenses $ 1,948,393 $ 1,178,571 $ 1,322,219 Effect on tax incentive / holiday (982,104 ) ( 726,615 ) ( 645,720 ) Non-deductable expense 213,878 126,771 542,531 Income tax expenses $ 1,180,167 $ 578,727 $ 1,219,030 |
Schedule of Deferred Tax Assets | December 31, 2015 2014 2013 Provision of doubtful accounts $ 110,715 $ 281,150 $ 200,427 Provision of interest expense 82,798 87,455 - $ 193,513 $ 368,605 $ 200,427 |
GEOGRAPHICAL SALES AND SEGMEN44
GEOGRAPHICAL SALES AND SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
GEOGRAPHICAL SALES AND SEGMENTS [Abstract] | |
Schedule of Sales by Geographical Area | Year Ended December 31, 2015 2014 2013 Domestic Sales $ 110,109,028 $ 115,256,175 $ 107,273,543 International Sales 7,799,388 8,315,280 6,618,446 $ 117,908,416 $ 123,571,455 $ 113,891,989 |
Condensed Financial Informati45
Condensed Financial Information of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company | |
CONDENSED BALANCE SHEETS | OSSEN INNOVATION CO., LTD CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2015 AND 2014 December, 31 2015 2014 ASSETS Current Assets Cash $ 81,493 $ 23,762 Due from related party 20,000,000 20,000,000 Total Current Assets 20,081,493 20,023,762 Investments in subsidiaries 73,637,980 73,371,675 TOTAL ASSETS $ 93,719,473 $ 93,395,437 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Other payables and accrued liabilities $ 934,997 $ 802,059 Due to shareholder 282,499 100,000 Total Current Liabilities 1,217,496 902,059 TOTAL LIABILITIES $ 1,217,496 $ 902,059 EQUITY Shareholders' Equity Ordinary shares, $ 0.01 100,000,000 20,000,000 19,828,790 19,901,959 $ 200,000 $ 200,000 Additional paid-in capital 33,971,455 33,971,455 Statutory reserve 5,631,373 5,021,752 Retained earnings 50,258,265 44,971,082 Accumulated other comprehensive income 2,596,227 8,425,697 Treasury stock, at cost: 171,210 98,041 (155,343 ) (96,608 ) TOTAL SHAREHOLDERS' EQUITY 92,501,977 92,493,378 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 93,719,473 $ 93,395,437 |
CONDENSED STATEMENTS OF OPERATIONS | OSSEN INNOVATION CO., LTD CONDENSED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013 Year Ended December, 31 2015 2014 2013 REVENUES $ - $ - $ - COST OF GOODS SOLD - - - GROSS PROFIT - - - Selling expenses - - - General and administrative expenses (198,753 ) ( 201,439 ) (722,695 ) Total Operating Expenses (198,753 ) ( 201,439 ) (722,695 ) LOSS FROM OPERATIONS (198,753 ) ( 201,439 ) (722,695 ) Financial expenses, net 272 219 263 Equity in income of subsidiaries 6,095,829 4,060,534 4,366,362 INCOME BEFORE INCOME TAX 5,896,804 3,858,876 3,643,404 INCOME TAX - - - NET INCOME 5,896,804 3,858,876 3,643,404 OTHER COMPREHENSIVE INCOME Foreign currency translation gain (loss) (5,829,470 ) 779,135 1,647,348 TOTAL OTHER COMPREHENSIVE INCOME (LOSS) (5,829,470 ) 779,135 1,647,348 COMPREHENSIVE INCOME $ 67,334 $ 4,638,011 $ 5,290,752 |
CONDENSED STATEMENTS OF CASH FLOWS | OSSEN INNOVATION CO., LTD CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013 Year Ended December, 31 2015 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 5,896,804 $ 3,858,876 $ 3,643,404 Adjustments to reconcile net income to net cash provided by operating activities: Equity in earnings of subsidiaries (6,095,829 ) ( 4,060,534 ) (4,366,362 ) Other payables and accrued liabilities 132,938 156,249 645,810 Due to shareholder 182,499 50,000 50,000 Net cash provided by / (used in) operating activities 116,412 4,591 (27,148 ) CASH FLOWS FROM INVESTING ACTIVITIES: Net cash provided by / (used in) investing activities - - - CASH FLOWS FROM FINANCING ACTIVITIES: Treasury stock purchased (58,735 ) - - Net cash provided by / (used in) financing activities (58,735 ) - - INCREASE / (DECREASE) IN CASH 57,677 4,591 (27,148 ) Effect of exchange rate changes on cash 54 - (49 ) Cash at beginning of period 23,762 19,171 46,368 CASH AT END OF PERIOD $ 81,493 $ 23,762 $ 19,171 |
ORGANIZATION AND PRINCIPAL AC46
ORGANIZATION AND PRINCIPAL ACTIVITIES (Business Combination) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 07, 2010 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES [Abstract] | ||||
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | ||
Ultra Glory [Member] | Reverse Merger [Member] | ||||
Business Acquisition [Line Items] | ||||
Shares issued | 15,000,000 | |||
Ownership interest acquired | 100.00% | |||
Share price | $ 0.03 | |||
New shares issued | 10,000,000 | |||
Outstanding shares issued | 5,000,000 | |||
Ossen Innovation Group [Member] | Reverse Merger [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership interest acquired | 100.00% |
ORGANIZATION AND PRINCIPAL AC47
ORGANIZATION AND PRINCIPAL ACTIVITIES (Shareholders) (Details) - shares | 1 Months Ended | |
Dec. 31, 2011 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Percentage of ordinary shares outstanding which trading on NASDAQ | 30.20% | |
Ordinary shares outstanding which trading on NASDAQ | 5,988,290 | |
Ownership percentage by unaffiliated investors | 3.80% | |
Initial public offering [Member] | ||
Related Party Transaction [Line Items] | ||
Issuance of new shares | 5,000,000 | |
Dr. Tang [Member] | ||
Related Party Transaction [Line Items] | ||
Equity ownership percentage | 60.00% | |
Dr. Tang [Member] | Effectual Strength Enterprises [Member] | ||
Related Party Transaction [Line Items] | ||
Equity ownership percentage | 100.00% | |
Wei Hua [Member] | ||
Related Party Transaction [Line Items] | ||
Equity ownership percentage | 3.00% | |
Wei Hua [Member] | Fascinating Acme Development [Member] | ||
Related Party Transaction [Line Items] | ||
Equity ownership percentage | 100.00% | |
Spouse of Shanghai Ossen New Material CEO [Member] | ||
Related Party Transaction [Line Items] | ||
Equity ownership percentage | 3.00% | |
Spouse of Shanghai Ossen New Material CEO [Member] | Gross Inspiration Development [Member] | ||
Related Party Transaction [Line Items] | ||
Equity ownership percentage | 100.00% |
ORGANIZATION AND PRINCIPAL AC48
ORGANIZATION AND PRINCIPAL ACTIVITIES (Subsidiaries) (Details) | 12 Months Ended | |||||||||
Dec. 31, 2010USD ($) | Dec. 31, 2010CNY (¥) | Dec. 31, 2007USD ($) | Dec. 31, 2005USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2010CNY (¥) | Dec. 31, 2009USD ($) | Dec. 31, 2009CNY (¥) | Apr. 13, 2005 | |
Ossen Jiujiang [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Paid-in capital | $ 26,048,509 | ¥ 183,271,074 | $ 6,048,509 | ¥ 50,000,000 | ||||||
Increase to paid-in capital | $ 20,000,000 | ¥ 133,271,074 | ||||||||
Ossen Innovation Group [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Paid-in capital | ||||||||||
Ossen Asia [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Paid-in capital | ||||||||||
Ossen Asia [Member] | Ossen Jiujiang [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Joint venture, ownership percentage | 33.30% | |||||||||
Ownership percentage transferred | 41.70% | |||||||||
Ownership percentage received | ||||||||||
Consideration received | $ 0 | |||||||||
Ossen Materials [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Ownership percentage | 81.00% | 81.00% | ||||||||
Noncontrolling owners, ownership percentage | 19.00% | 19.00% | ||||||||
Paid-in capital | ¥ | ¥ 75,000,000 | |||||||||
Ossen Materials [Member] | Ossen Jiujiang [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Joint venture, ownership percentage | 20.46% | 20.46% | ||||||||
Ownership percentage transferred | ||||||||||
Ownership percentage received | 41.70% | |||||||||
Topchina [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Paid-in capital | ||||||||||
Topchina [Member] | Ossen Jiujiang [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Joint venture, ownership percentage | 79.54% | 79.54% | ||||||||
Ownership percentage transferred | 66.70% | |||||||||
Ownership percentage received | 66.70% | |||||||||
Consideration received | $ 0 | |||||||||
Ossen Shanghai [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Payments to acquire assets | $ 2,900,000 | |||||||||
Ossen Shanghai [Member] | Ossen Jiujiang [Member] | ||||||||||
Entity Information [Line Items] | ||||||||||
Joint venture, ownership percentage | 66.70% | |||||||||
Ownership percentage transferred | 66.70% | |||||||||
Ownership percentage received | ||||||||||
Consideration received | $ 2,900,000 |
ORGANIZATION AND PRINCIPAL AC49
ORGANIZATION AND PRINCIPAL ACTIVITIES (Summary of Subsidiary Information) (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | |
Ossen Innovation Group [Member] | ||
Entity Information [Line Items] | ||
Domicile | BVI | |
Incorporation | Apr. 30, 2010 | |
Paid-in capital | ||
Percentage of effective ownership | 100.00% | 100.00% |
Ossen Asia [Member] | ||
Entity Information [Line Items] | ||
Domicile | BVI | |
Incorporation | Feb. 7, 2002 | |
Paid-in capital | ||
Percentage of effective ownership | 100.00% | 100.00% |
Topchina [Member] | ||
Entity Information [Line Items] | ||
Domicile | BVI | |
Incorporation | Nov. 3, 2004 | |
Paid-in capital | ||
Percentage of effective ownership | 100.00% | 100.00% |
Ossen Materials [Member] | ||
Entity Information [Line Items] | ||
Domicile | PRC | |
Incorporation | Oct. 27, 2004 | |
Paid-in capital | ¥ | ¥ 75,000,000 | |
Percentage of effective ownership | 81.00% | 81.00% |
Ossen Jiujiang [Member] | ||
Entity Information [Line Items] | ||
Domicile | PRC | |
Incorporation | Apr. 13, 2005 | |
Paid-in capital | ¥ | ¥ 183,271,074 | |
Percentage of effective ownership | 96.11% | 96.11% |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($)segment¥ / $ | Dec. 31, 2015HKDsegment¥ / $ | Dec. 31, 2014USD ($)¥ / $ | Dec. 31, 2013USD ($)¥ / $ | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||
Year end RMB: US$ exchange rate | ¥ / $ | 6.4917 | 6.1460 | 6.1943 | |
Average yearly RMB: US$ exchange rate | ¥ / $ | 6.2288 | 6.2288 | 6.1457 | 6.1122 |
Research and development costs | $ 3,404,333 | $ 3,914,918 | $ 1,260,440 | |
Retirement benefits, contributions by company | 148,232 | 140,823 | 133,230 | |
Unrecorded deferred income tax liability for earnings are intended to be permanently reinvested | $ 50,258,265 | |||
VAT rate | 17.00% | 17.00% | ||
Accumulated statutory reserves | $ 609,621 | $ 406,053 | $ 436,672 | |
DPS compensation maximum | HKD | HKD 500,000 | |||
Fair value of bond payable current | $ 15,273,177 | |||
Fair value of bond payable non-current | $ 15,972,837 | |||
Accounts receivable, allowance for doubtful accounts | $ 738,101 | 1,874,330 | ||
Advance to suppliers | 55,730,089 | 56,327,390 | ||
Advance to suppliers, aging within 60 days | 36,278,463 | |||
Advance to suppliers, aging within 60-90 days | 13,054,423 | |||
Advance to suppliers, aging over 90 days | 6,397,203 | |||
Customer deposits | $ 309,147 | $ 588,005 | ||
Prepayment for plant and equipment | ||||
Amortization period, lease term | 50 years | 50 years | ||
Number of business segment | segment | 1 | 1 | ||
Plant, Buildings and Improvements [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 5 years | 5 years | ||
Plant, Buildings and Improvements [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 20 years | 20 years | ||
Machinery and Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 5 years | 5 years | ||
Machinery and Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 20 years | 20 years | ||
Motor Vehicles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 5 years | 5 years | ||
Office Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 5 years | 5 years | ||
Office Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 10 years | 10 years |
CONCENTRATION (Schedule of Majo
CONCENTRATION (Schedule of Major Customer Concentrations) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Revenues | $ 117,908,416 | $ 123,571,455 | $ 113,891,989 |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 27.00% | 63.00% | |
Customer Concentration Risk [Member] | Revenues [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 77,992,356 | $ 78,660,831 | $ 42,319,683 |
Concentration risk percentage | 66.00% | 64.00% | 37.00% |
Customer Concentration Risk [Member] | Revenues [Member] | Company A (3rd Party) [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 26,720,983 | $ 18,570,574 | |
Concentration risk percentage | 23.00% | 16.00% | |
Customer Concentration Risk [Member] | Revenues [Member] | Company B (3rd Party) [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 19,159,563 | ||
Concentration risk percentage | 16.00% | ||
Customer Concentration Risk [Member] | Revenues [Member] | Company C (3rd Party) [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 17,880,306 | $ 12,368,270 | |
Concentration risk percentage | 14.00% | 11.00% | |
Customer Concentration Risk [Member] | Revenues [Member] | Company D (3rd Party) [Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 11,380,839 | ||
Concentration risk percentage | 10.00% | ||
Customer Concentration Risk [Member] | Revenues [Member] | Company E (3rd Party)[Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 14,280,544 | $ 24,915,113 | |
Concentration risk percentage | 12.00% | 20.00% | |
Customer Concentration Risk [Member] | Revenues [Member] | Company F (3rd Party)[Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 17,831,266 | $ 20,361,459 | |
Concentration risk percentage | 15.00% | 17.00% | |
Customer Concentration Risk [Member] | Revenues [Member] | Company G (3rd Party)[Member] | |||
Concentration Risk [Line Items] | |||
Revenues | $ 15,503,953 | ||
Concentration risk percentage | 13.00% |
CONCENTRATION (Schedule of Ma52
CONCENTRATION (Schedule of Major Supplier Concentrations) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Purchases from suppliers | $ 102,197,994 | $ 110,250,876 | $ 102,353,957 |
Supplier Concentration Risk [Member] | Accounts Payable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | |||
Supplier Concentration Risk [Member] | Purchases [Member] | |||
Concentration Risk [Line Items] | |||
Purchases from suppliers | $ 100,343,592 | $ 87,209,870 | $ 80,156,379 |
Concentration risk percentage | 96.00% | 82.00% | 78.00% |
Supplier Concentration Risk [Member] | Purchases [Member] | Company X (3rd Party) [Member] | |||
Concentration Risk [Line Items] | |||
Purchases from suppliers | $ 22,137,683 | $ 20,021,833 | |
Concentration risk percentage | 21.00% | 19.00% | |
Supplier Concentration Risk [Member] | Purchases [Member] | Company Y (3rd Party) [Member] | |||
Concentration Risk [Line Items] | |||
Purchases from suppliers | $ 36,094,431 | $ 54,268,855 | $ 32,748,784 |
Concentration risk percentage | 35.00% | 51.00% | 32.00% |
Supplier Concentration Risk [Member] | Purchases [Member] | Company Z (3rd Party) [Member] | |||
Concentration Risk [Line Items] | |||
Purchases from suppliers | $ 47,407,595 | ||
Concentration risk percentage | 46.00% | ||
Supplier Concentration Risk [Member] | Purchases [Member] | Company U (3rd Party) [Member] | |||
Concentration Risk [Line Items] | |||
Purchases from suppliers | $ 11,729,136 | ||
Concentration risk percentage | 11.00% | ||
Supplier Concentration Risk [Member] | Purchases [Member] | Company V (3rd Party) [Member] | |||
Concentration Risk [Line Items] | |||
Purchases from suppliers | $ 30,382,342 | $ 12,919,182 | |
Concentration risk percentage | 29.00% | 12.00% |
ACCOUNTS RECEIVABLE (Schedule o
ACCOUNTS RECEIVABLE (Schedule of Accounts Receivable) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
ACCOUNTS RECEIVABLE [Abstract] | ||
Accounts receivable | $ 43,986,075 | $ 55,638,744 |
Less: allowance for doubtful accounts | (738,101) | (1,874,330) |
Accounts receivable, net | $ 43,247,974 | 53,764,414 |
Accounts receivable as collateral for short-term bank loans | $ 2,440,612 |
ACCOUNTS RECEIVABLE (Schedule54
ACCOUNTS RECEIVABLE (Schedule of Allowance for Doubtful Accounts) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
ACCOUNTS RECEIVABLE [Abstract] | ||
Beginning balance | $ 1,874,330 | $ 1,336,177 |
Provision/(Reverse) for doubtful accounts | (1,136,229) | 538,153 |
Ending balance | $ 738,101 | $ 1,874,330 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
INVENTORIES [Abstract] | ||
Raw materials | $ 26,474,521 | $ 16,521,066 |
Work-in-progress | 168,612 | 153,666 |
Finished goods | 633,088 | 3,463,169 |
Inventories | $ 27,276,221 | $ 20,137,901 |
NOTES RECEIVABLE (Details)
NOTES RECEIVABLE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - bank acceptance notes | $ 8,010,228 | $ 9,925,155 |
Bank Acceptance Note Receivable One [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - bank acceptance notes | 1,627,075 | |
Repayment date | Jan. 17, 2015 | |
Bank Acceptance Note Receivable Two [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - bank acceptance notes | 1,627,075 | |
Repayment date | Feb. 28, 2015 | |
Bank Acceptance Note Receivable Three [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - bank acceptance notes | 1,627,075 | |
Repayment date | Mar. 10, 2015 | |
Bank Acceptance Note Receivable Four [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - bank acceptance notes | 1,464,366 | |
Repayment date | Mar. 26, 2015 | |
Bank Acceptance Note Receivable Five [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - bank acceptance notes | 1,627,075 | |
Repayment date | Apr. 16, 2015 | |
Bank Acceptance Note Receivable Six [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - bank acceptance notes | 1,627,075 | |
Repayment date | Apr. 30, 2015 | |
Bank Acceptance Note Receivable Seven [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - bank acceptance notes | $ 325,414 | |
Repayment date | Jun. 25, 2015 | |
Bank Acceptance Note Receivable Eight [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - bank acceptance notes | $ 1,540,429 | |
Repayment date | Jan. 3, 2016 | |
Bank Acceptance Note Receivable Nine [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - bank acceptance notes | $ 770,214 | |
Repayment date | Jan. 28, 2016 | |
Bank Acceptance Note Receivable Ten [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - bank acceptance notes | $ 1,540,429 | |
Repayment date | Mar. 22, 2016 | |
Bank Acceptance Note Receivable Eleven [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - bank acceptance notes | $ 1,540,429 | |
Repayment date | Mar. 22, 2016 | |
Bank Acceptance Note Receivable Twelve [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable - bank acceptance notes | $ 2,618,727 | |
Repayment date | May 20, 2016 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
OTHER CURRENT ASSETS [Abstract] | ||
Deposits for open project bids | $ 48,812 | |
VAT deductible | $ 537,137 | 61,959 |
Guarantee fee | 154,043 | 406,769 |
Other receivables | 223,861 | 428,779 |
Other current assets | $ 915,041 | $ 946,319 |
PROPERTY, PLANT AND EQUIPMENT58
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |||
Depreciation expense | $ 1,317,119 | $ 1,430,997 | $ 1,464,144 |
Property, Plant and Equipment [Line Items] | |||
Cost | 19,381,239 | 20,408,407 | |
Less: Accumulated depreciation | $ (13,824,063) | (13,272,552) | |
Construction- in-progress | 38,791 | ||
Property, plant and equipment, net | $ 5,557,176 | 7,174,646 | |
Notes payable | |||
Property, Plant and Equipment [Line Items] | |||
Property pledged as collateral | 792,795 | ||
Short-term bank loans related party | |||
Property, Plant and Equipment [Line Items] | |||
Property pledged as collateral | $ 1,803,192 | 1,406,429 | |
Plant and buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 4,117,383 | 4,348,977 | |
Less: Accumulated depreciation | (2,314,191) | (2,149,753) | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 14,833,525 | 15,616,293 | |
Less: Accumulated depreciation | (11,114,880) | (10,715,803) | |
Motor Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 311,690 | 322,115 | |
Less: Accumulated depreciation | (286,410) | (294,729) | |
Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 118,641 | 121,022 | |
Less: Accumulated depreciation | (108,582) | (112,267) | |
Property, Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Unrealized foreign exchange translation gain/(loss) | $ (329,926) | $ 66,536 | $ 198,318 |
LAND USE RIGHTS (Schedule of La
LAND USE RIGHTS (Schedule of Land Use Rights) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
LAND USE RIGHTS [Abstract] | |||
Cost of land use rights | $ 4,746,825 | $ 5,013,824 | |
Less: Accumulated amortization | (835,741) | (782,476) | |
Land use rights, net | 3,911,084 | 4,231,348 | |
Amortization expense | 98,941 | 100,282 | $ 100,828 |
Land use rights [Member] | |||
LAND USE RIGHTS [Line items] | |||
Unrealized foreign exchange translation gain/(loss) | $ (221,323) | $ 33,781 | $ 81,008 |
LAND USE RIGHTS (Schedule of Fu
LAND USE RIGHTS (Schedule of Future Amortization Expense) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
LAND USE RIGHTS [Abstract] | ||
2,016 | $ 94,937 | |
2,017 | 94,937 | |
2,018 | 94,937 | |
2,019 | 94,937 | |
2,020 | 94,937 | |
Thereafter | 3,436,399 | |
Land use rights, net | 3,911,084 | $ 4,231,348 |
Short-term bank loans | ||
LAND USE RIGHTS [Line items] | ||
Land use rights pledged as collateral | $ 2,491,924 | |
Notes payable | ||
LAND USE RIGHTS [Line items] | ||
Land use rights pledged as collateral | $ 2,694,754 | |
Short-term bank loans related party | ||
LAND USE RIGHTS [Line items] | ||
Land use rights pledged as collateral | $ 1,419,160 | $ 1,536,594 |
RELATED PARTY TRANSACTIONS (Sum
RELATED PARTY TRANSACTIONS (Summary of Balances with Related Party) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Due to related party | $ 65,769 | $ 69,469 |
Due to shareholder | 282,499 | 100,000 |
Ossen Material Research [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related party | 65,769 | 69,469 |
Dr. Tang [Member] | ||
Related Party Transaction [Line Items] | ||
Due to shareholder | $ 282,499 | $ 100,000 |
RELATED PARTY TRANSACTIONS (Sch
RELATED PARTY TRANSACTIONS (Schedule of Related Party Transactions) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction One [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 5,186,623 | $ 813,536 | $ 4,035,969 |
Related Party Transaction Two [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 2,515,520 | 1,627,075 | 1,937,265 |
Related Party Transaction Three [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 4,159,157 | 5,694,761 | 3,228,775 |
Related Party Transaction Four [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 14,806,378 | 3,228,775 | |
Related Party Transaction Five [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 32,348,999 | $ 4,881,224 | $ 4,843,162 |
Related Party Transaction Six [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 12,323,428 | ||
Related Party Transaction Seven [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 2,056,102 | ||
Related Party Transaction Eight [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 1,627,075 | ||
Related Party Transaction Nine [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 3,254,149 | ||
Related Party Transaction Ten [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 2,515,520 | $ 1,627,075 | $ 1,937,265 |
Related Party Transaction Eleven [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 7,702,143 | ||
Related Party Transaction Twelve [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 1,540,429 | ||
Related Party Transaction Thirteen [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 5,148,724 | ||
Related Party Transaction Fourteen [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 16,944,714 | $ 15,457,208 | 11,300,712 |
Related Party Transaction Fifteen [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 34,081,982 | $ 21,314,676 | $ 17,550,330 |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Guarantee | $ (154,043) | $ (406,769) |
Ossen Material Research [Member] | Short-term debt [Member] | ||
Related Party Transaction [Line Items] | ||
Guarantee | 32,438,999 | |
Ossen Material Research [Member] | Notes payable [Member] | ||
Related Party Transaction [Line Items] | ||
Guarantee | 12,333,428 | |
Shanghai Pujiang [Member] | Short-term debt [Member] | ||
Related Party Transaction [Line Items] | ||
Guarantee | 16,944,714 | |
Shanghai Pujiang [Member] | Notes payable [Member] | ||
Related Party Transaction [Line Items] | ||
Guarantee | $ 34,081,982 | |
Ossen Shanghai [Member] | ||
Related Party Transaction [Line Items] | ||
Ownership transferred | 30.00% | |
Ossen Shanghai [Member] | Short-term debt [Member] | ||
Related Party Transaction [Line Items] | ||
Guarantee | $ 7,702,143 | |
Ossen Shanghai [Member] | Notes payable [Member] | ||
Related Party Transaction [Line Items] | ||
Guarantee | $ 1,540,429 |
OTHER PAYABLES AND ACCRUED EX64
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
OTHER PAYABLES AND ACCRUED EXPENSES [Abstract] | ||
Other taxes payable | $ 111,584 | $ 155,354 |
Accrued payroll & welfare | 14,175 | 35,110 |
Accrued expense & liability | 967,234 | 802,059 |
Interest payable | 551,987 | 583,035 |
Others | 24,690 | 47,400 |
Other payables and accrued expenses | $ 1,669,670 | $ 1,622,958 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
NOTES PAYABLE [Abstract] | ||
Restricted cash | $ 8,780,443 | $ 17,572,732 |
Bank fee percentage | 0.05% | 0.05% |
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 12,477,471 | $ 26,521,315 |
Bank Acceptance Note One [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,540,429 | |
Repayment date | Jun. 14, 2016 | |
Bank Acceptance Note Two [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,540,429 | |
Repayment date | Jun. 14, 2016 | |
Bank Acceptance Note Three [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,540,429 | |
Repayment date | Jun. 14, 2016 | |
Bank Acceptance Note Four [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,386,383 | |
Repayment date | Apr. 18, 2016 | |
Bank Acceptance Note Five [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,540,429 | |
Repayment date | Jan. 15, 2016 | |
Bank Acceptance Note Six [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,540,429 | |
Repayment date | Jan. 14, 2016 | |
Bank Acceptance Note Seven [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,540,429 | |
Repayment date | Jan. 14, 2016 | |
Bank Acceptance Note Eight [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,078,300 | |
Repayment date | Jan. 14, 2016 | |
Bank Acceptance Note Nine [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 770,214 | |
Repayment date | Jan. 14, 2016 | |
Bank Acceptance Note Ten [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,627,075 | |
Repayment date | May 27, 2015 | |
Bank Acceptance Note Eleven [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,627,075 | |
Repayment date | May 27, 2015 | |
Bank Acceptance Note Twelve [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,627,075 | |
Repayment date | May 27, 2015 | |
Bank Acceptance Note Thirteen [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,627,075 | |
Repayment date | May 27, 2015 | |
Bank Acceptance Note Fourteen [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,627,075 | |
Repayment date | May 11, 2015 | |
Bank Acceptance Note Fifteen [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,627,075 | |
Repayment date | May 11, 2015 | |
Bank Acceptance Note Sixteen [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 325,417 | |
Repayment date | Apr. 10, 2015 | |
Bank Acceptance Note Seventeen [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,627,075 | |
Repayment date | Apr. 9, 2015 | |
Bank Acceptance Note Eighteen [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 813,537 | |
Repayment date | Mar. 25, 2015 | |
Bank Acceptance Note Nineteen [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,138,952 | |
Repayment date | Mar. 17, 2015 | |
Bank Acceptance Note Twenty [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 488,116 | |
Repayment date | Mar. 17, 2015 | |
Bank Acceptance Note Twenty One [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,627,075 | |
Repayment date | Feb. 28, 2015 | |
Bank Acceptance Note Twenty Two [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 3,254,149 | |
Repayment date | Feb. 27, 2015 | |
Bank Acceptance Note Twenty Three [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 813,537 | |
Repayment date | Jan. 31, 2015 | |
Bank Acceptance Note Twenty Four [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,464,367 | |
Repayment date | Jan. 29, 2015 | |
Bank Acceptance Note Twenty Five [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,627,075 | |
Repayment date | Jan. 23, 2015 | |
Bank Acceptance Note Twenty Six [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 976,245 | |
Repayment date | Jan. 23, 2015 | |
Bank Acceptance Note Twenty Seven [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 976,245 | |
Repayment date | Jan. 21, 2015 | |
Bank Acceptance Note Twenty Eight [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable - bank acceptance notes | $ 1,627,075 | |
Repayment date | Jan. 21, 2015 |
SHORT TERM BANK LOANS (Details)
SHORT TERM BANK LOANS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 17,714,928 | $ 18,711,357 | |
Short Term Bank Loans [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 17,714,928 | $ 18,711,357 | |
Average interest rate | 6.182% | 7.138% | |
Interest expense, short term bank loans | $ 1,017,345 | $ 1,943,115 | $ 2,663,924 |
Short Term Bank Loans [Member] | Short Term Bank Loan One [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 2,772,771 | ||
Annual rate | 5.44% | ||
Repayment date | Dec. 24, 2016 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Two [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 3,388,943 | ||
Annual rate | 4.40% | ||
Repayment date | Dec. 2, 2016 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Three [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 5,186,623 | ||
Annual rate | 6.216% | ||
Repayment date | Dec. 1, 2016 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Four [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 770,214 | ||
Annual rate | 5.87% | ||
Repayment date | Nov. 3, 2016 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Five [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 1,540,429 | ||
Annual rate | 7.80% | ||
Repayment date | Jun. 29, 2016 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Six [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 2,515,520 | ||
Annual rate | 6.60% | ||
Repayment date | Jun. 6, 2016 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Seven [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 1,540,429 | ||
Annual rate | 6.95% | ||
Repayment date | Apr. 16, 2016 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Eight [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 3,254,149 | ||
Annual rate | 7.00% | ||
Repayment date | Dec. 17, 2015 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Nine [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 813,536 | ||
Annual rate | 7.80% | ||
Repayment date | Oct. 30, 2015 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Ten [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 1,627,075 | ||
Annual rate | 7.728% | ||
Repayment date | Oct. 28, 2015 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Eleven [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 3,254,149 | ||
Annual rate | 7.416% | ||
Repayment date | Oct. 28, 2015 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Twelve [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 4,067,686 | ||
Annual rate | 6.00% | ||
Repayment date | Aug. 13, 2015 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Thirteen [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 2,440,612 | ||
Annual rate | 7.28% | ||
Repayment date | Jun. 12, 2015 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Fourteen [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 1,627,075 | ||
Annual rate | 7.28% | ||
Repayment date | Mar. 9, 2015 | ||
Short Term Bank Loans [Member] | Short Term Bank Loan Fifteen [Member] | |||
Short-term Debt [Line Items] | |||
Short-term bank loans | $ 1,627,075 | ||
Annual rate | 6.60% | ||
Repayment date | Jan. 2, 2015 |
BOND PAYABLE (Details)
BOND PAYABLE (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015CNY (¥) | |
BOND PAYABLE [Abstract] | ||||
Interest expense, long term bank loans | $ 2,172,228 | $ 610,571 | ||
Debt Instrument [Line Items] | ||||
Total bond payable | $ 15,972,837 | |||
Level 1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total bond payable | ||||
Level 2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total bond payable | $ 15,273,177 | |||
Level 3 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total bond payable | $ 15,972,837 | |||
Bond Payable Due September 4, 2016 [Member] | ||||
Debt Instrument [Line Items] | ||||
Issuance date | Sep. 4, 2014 | |||
Repayment date | Sep. 4, 2016 | |||
Annual rate | 10.75% | 10.75% | ||
Borrow amount | ¥ | ¥ 100,000,000 | |||
Bond Payable Due September 4, 2016 [Member] | Level 1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total bond payable | ||||
Bond Payable Due September 4, 2016 [Member] | Level 2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total bond payable | $ 15,273,177 | |||
Bond Payable Due September 4, 2016 [Member] | Level 3 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total bond payable | $ 15,972,837 |
STOCK REPURCHASE PROGRAM (Narra
STOCK REPURCHASE PROGRAM (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 31, 2015 | |
STOCK REPURCHASE PROGRAM [Abstract] | ||||
Share repurchase program, shares authorized | 500,000 | |||
Repurchased of shares ordinary shares | 73,169 | |||
Payment for repurchase of common share | $ 58,735 |
EARNINGS PER SHARES (Details)
EARNINGS PER SHARES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
EARNINGS PER SHARES [Abstract] | |||
Net income attribute to the Company | $ 5,896,804 | $ 3,858,876 | $ 3,643,404 |
Weighted average ordinary shares outstanding - basic and diluted | 19,862,537 | 19,901,959 | 19,901,959 |
Basic and diluted earnings per share | $ 0.30 | $ 0.19 | $ 0.18 |
INCOME TAX (Schedule of Income
INCOME TAX (Schedule of Income Tax Expenses) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INCOME TAX [Abstract] | |||
Current | $ 1,018,143 | $ 745,338 | $ 1,224,430 |
Deferred | 162,024 | (166,611) | (5,400) |
Income tax expenses | $ 1,180,167 | $ 578,727 | $ 1,219,030 |
INCOME TAX (Schedule of Effecti
INCOME TAX (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INCOME TAX [Abstract] | |||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Computed "expected" income tax expenses | $ 1,948,393 | $ 1,178,571 | $ 1,322,219 |
Effect on tax incentive / holiday | (982,104) | (726,615) | (645,720) |
Non-deductable expense | 213,878 | 126,771 | 542,531 |
Income tax expenses | $ 1,180,167 | $ 578,727 | $ 1,219,030 |
INCOME TAX (Schedule of Net Def
INCOME TAX (Schedule of Net Deferred Tax Assets) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
INCOME TAX [Abstract] | |||
Provision of doubtful accounts | $ 110,715 | $ 281,150 | $ 200,427 |
Provision of interest expense | 82,798 | 87,455 | |
Net deferred tax assets | $ 193,513 | $ 368,605 | $ 200,427 |
GEOGRAPHICAL SALES AND SEGMEN73
GEOGRAPHICAL SALES AND SEGMENTS (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
GEOGRAPHICAL SALES AND SEGMENTS [Abstract] | |||
Number of operating segments | segment | 1 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 117,908,416 | $ 123,571,455 | $ 113,891,989 |
Domestic [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 110,109,028 | 115,256,175 | 107,273,543 |
International [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 7,799,388 | $ 8,315,280 | $ 6,618,446 |
CONDENSED BALANCE SHEETS (Detai
CONDENSED BALANCE SHEETS (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets | ||||
Cash | $ 812,277 | $ 684,592 | $ 1,139,450 | $ 1,996,764 |
Total current assets | 144,772,273 | 159,358,503 | ||
TOTAL ASSETS | 154,240,533 | 170,764,497 | ||
Current Liabilities | ||||
Other payables and accrued liabilities | 1,669,670 | 1,622,958 | ||
Due to shareholder | 282,499 | 100,000 | ||
Total current liabilities | 50,106,311 | 51,382,639 | ||
TOTAL LIABILITIES | 50,106,311 | 67,355,476 | ||
Shareholders' Equity | ||||
Ordinary shares, $0.01 par value: 100,000,000 shares authorized; 20,000,000 shares issued; 19,828,790 and 19,901,959 shares outstanding as of December 31, 2015 and 2014, respectively | 200,000 | 200,000 | ||
Additional paid-in capital | 33,971,455 | 33,971,455 | ||
Statutory reserve | 5,631,373 | 5,021,752 | ||
Retained earnings | 50,258,265 | 44,971,082 | ||
Accumulated other comprehensive income | 2,596,227 | 8,425,697 | ||
Treasury stock, at cost: 171,210 and 98,041 shares as of December 31, 2015 and 2014, respectively | (155,343) | (96,608) | ||
TOTAL SHAREHOLDERS' EQUITY | 92,501,977 | 92,493,378 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 154,240,533 | 170,764,497 | ||
Ossen Innovation Co., Ltd [Member] | ||||
Current Assets | ||||
Cash | 81,493 | 23,762 | $ 19,171 | $ 46,368 |
Due from related party | 20,000,000 | 20,000,000 | ||
Total current assets | 20,081,493 | 20,023,762 | ||
Investments in subsidiaries | 73,637,980 | 73,371,675 | ||
TOTAL ASSETS | 93,719,473 | 93,395,437 | ||
Current Liabilities | ||||
Other payables and accrued liabilities | 934,997 | 802,059 | ||
Due to shareholder | 282,499 | 100,000 | ||
Total current liabilities | 1,217,496 | 902,059 | ||
TOTAL LIABILITIES | 1,217,496 | 902,059 | ||
Shareholders' Equity | ||||
Ordinary shares, $0.01 par value: 100,000,000 shares authorized; 20,000,000 shares issued; 19,828,790 and 19,901,959 shares outstanding as of December 31, 2015 and 2014, respectively | 200,000 | 200,000 | ||
Additional paid-in capital | 33,971,455 | 33,971,455 | ||
Statutory reserve | 5,631,373 | 5,021,752 | ||
Retained earnings | 50,258,265 | 44,971,082 | ||
Accumulated other comprehensive income | 2,596,227 | 8,425,697 | ||
Treasury stock, at cost: 171,210 and 98,041 shares as of December 31, 2015 and 2014, respectively | (155,343) | (96,608) | ||
TOTAL SHAREHOLDERS' EQUITY | 92,501,977 | 92,493,378 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 93,719,473 | $ 93,395,437 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) (Details) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed balance sheets [Line Items] | ||
Ordinary shares, par value | $ 0.01 | $ 0.01 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 20,000,000 | 20,000,000 |
Ordinary shares, shares outstanding | 19,828,790 | 19,901,959 |
Treasury stock, shares | 171,210 | 98,041 |
Ossen Innovation Co., Ltd [Member] | ||
Condensed balance sheets [Line Items] | ||
Ordinary shares, par value | $ 0.01 | $ 0.01 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 20,000,000 | 20,000,000 |
Ordinary shares, shares outstanding | 19,828,790 | 19,901,959 |
Treasury stock, shares | 171,210 | 98,041 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONDENSED STATEMENTS OF OPERATIONS | |||
REVENUES | $ 117,908,416 | $ 123,571,455 | $ 113,891,989 |
COST OF GOODS SOLD | 102,197,994 | 110,250,876 | 102,353,957 |
GROSS PROFIT | 15,710,422 | 13,320,579 | 11,538,032 |
Selling expenses | (986,378) | (772,383) | (625,500) |
General and administrative expenses | (4,478,413) | (6,340,584) | (3,485,118) |
Total Operating Expenses | (5,464,791) | (7,112,967) | (4,110,618) |
INCOME FROM OPERATIONS | 10,245,631 | 6,207,612 | 7,427,414 |
Financial expenses, net | 2,823,952 | 2,401,268 | 2,696,966 |
INCOME BEFORE INCOME TAX | 7,793,573 | 4,714,285 | 5,288,874 |
INCOME TAX | 1,180,167 | 578,727 | 1,219,030 |
NET INCOME | 6,613,406 | 4,135,558 | 4,069,844 |
OTHER COMPREHENSIVE INCOME | |||
Foreign currency translation gain (loss) | (5,829,470) | 779,135 | 1,647,348 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | (5,829,470) | 779,135 | 1,647,348 |
COMPREHENSIVE INCOME | $ 67,334 | $ 4,638,011 | $ 5,290,752 |
Ossen Innovation Co., Ltd [Member] | |||
CONDENSED STATEMENTS OF OPERATIONS | |||
REVENUES | |||
COST OF GOODS SOLD | |||
GROSS PROFIT | |||
Selling expenses | |||
General and administrative expenses | $ (198,753) | $ (201,439) | $ (722,695) |
Total Operating Expenses | (198,753) | (201,439) | (722,695) |
INCOME FROM OPERATIONS | (198,753) | (201,439) | (722,695) |
Financial expenses, net | 272 | 219 | 263 |
Equity in income of subsidiaries | 6,095,829 | 4,060,534 | 4,366,362 |
INCOME BEFORE INCOME TAX | $ 5,896,804 | $ 3,858,876 | $ 3,643,404 |
INCOME TAX | |||
NET INCOME | $ 5,896,804 | $ 3,858,876 | $ 3,643,404 |
OTHER COMPREHENSIVE INCOME | |||
Foreign currency translation gain (loss) | (5,829,470) | 779,135 | 1,647,348 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | (5,829,470) | 779,135 | 1,647,348 |
COMPREHENSIVE INCOME | $ 67,334 | $ 4,638,011 | $ 5,290,752 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 6,613,406 | $ 4,135,558 | $ 4,069,844 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Other payables and accrued liabilities | 46,712 | 73,209 | 744,552 |
Due to shareholder | 182,499 | 50,000 | 50,000 |
Net cash provided by operating activities | 12,441,861 | 1,804,435 | 10,011,383 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash used in investing activities | (29,687) | $ (80,985) | $ 8,055,576 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Treasury stock purchased | (58,735) | ||
Net cash used in financing activities | (4,431,100) | $ (3,500,632) | $ (22,060,165) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 7,981,074 | (1,777,182) | (3,993,206) |
Effect of exchange rate changes on cash | (7,853,389) | 1,322,324 | 3,135,892 |
Cash and cash equivalents at beginning of period | 684,592 | 1,139,450 | 1,996,764 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 812,277 | 684,592 | 1,139,450 |
Ossen Innovation Co., Ltd [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | 5,896,804 | 3,858,876 | 3,643,404 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in earnings of subsidiaries | (6,095,829) | (4,060,534) | (4,366,362) |
Other payables and accrued liabilities | 132,938 | 156,249 | 645,810 |
Due to shareholder | 182,499 | 50,000 | 50,000 |
Net cash provided by operating activities | $ 116,412 | $ 4,591 | $ (27,148) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash used in investing activities | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Treasury stock purchased | $ (58,735) | ||
Net cash used in financing activities | (58,735) | ||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 57,677 | $ 4,591 | $ (27,148) |
Effect of exchange rate changes on cash | 54 | (49) | |
Cash and cash equivalents at beginning of period | 23,762 | $ 19,171 | 46,368 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 81,493 | $ 23,762 | $ 19,171 |