UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K/A
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of January 2015
Commission File
Number: 001-34738
Kingtone Wirelessinfo Solution Holding
Ltd
(Translation of registrant’s name
into English)
3rd Floor, Borough A, Block A. No.181,
South Taibai Road
Xi’an, Shaanxi Province
People’s
Republic of China 710065
(Address of principal
executive offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form 40-F. Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information
contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934. Yes ¨ No x
If “Yes” is marked, indicate below the file number
assigned to the registrant in connection with Rule 12g3-2(b): 82- N/A
Kingtone Wirelessinfo Solution Holding Ltd
FORM 6-K/A
Kingtone Wirelessinfo Solution Holding Ltd is furnishing under
the cover of Form 6-K/A the following:
Exhibit 99.1 Amended press release, dated January
15, 2015, by Kingtone Wirelessinfo Solution Holding Ltd announcing its audited financial results for the year ended September 30,
2014 and providing fiscal year 2015 revenue and net income guidance.
This amended press release replaces the previous press
release under the same subject.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Kingtone Wirelessinfo Solution Holding Ltd |
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By: |
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/s/ Li Wu |
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Name: |
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Li Wu |
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Title: |
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Chief Financial Officer |
Date: January 15, 2015
EXHIBIT INDEX
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Exhibit No. |
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Description |
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Exhibit 99.1 |
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Amended press release, dated January 15, 2015, by Kingtone Wirelessinfo Solution Holding Ltd announcing its audited financial results for the year ended September 30, 2014 and providing fiscal year 2015 revenue and net income guidance. |
Exhibit 99.1
Kingtone Wirelessinfo Solution Holding
Ltd Reports Fiscal Year 2014 Financial Results;
Provides Fiscal Year 2015 Revenue and
Net Income Guidance
FY14 Revenues Decreased 46.5% to $6.2 million from $11.6
million in the Prior Year
FY14 Gross Profit Increased 92.0% to $2.0 million from $1.0 million in the Prior Year
FY14 Basic and Diluted Loss Per Share Up to $0 from Loss Per Share of $3.65 in the Prior Year
XI’AN, China, Jan. 15, 2015 /PRNewswire-FirstCall/
-- Kingtone Wirelessinfo Solution Holding Ltd (Nasdaq CM: KONE) ("Kingtone", or the "Company"), a China-based
developer and provider of mobile enterprise solutions, today announced financial results for its fiscal year ended September 30,
2014. The financial statements and other financial information included in this press release are prepared in conformity with accounting
principles generally accepted in the United States of America ("U.S. GAAP").
Fiscal Year 2014 Financial Highlights
| · | Revenues decreased by 46.5% to approximately $6.2 million from approximately $11.6 million in the
prior year period. |
| · | Gross profit increased by 92.9% to approximately $2.0 million gross profit from approximately $1.0
million loss in the prior year period. |
| · | Gross margin increased to 31.7% from 8.8% in the prior year period. |
| · | Net loss of approximately $1 thousand as compared to net loss of approximately $5.1 million in
the prior year period. |
| · | Basic and diluted loss per share were $0 as compared to loss per share of $3.65 in the prior year
period with weighted average shares outstanding of 1,405,000 in both periods. |
“We are pleased with our cost-control
process leading our significantly increased profit during the last fiscal year,” said Mr. Peng Zhang, Chief Executive Officer
of the Company, “Looking forward to the Fiscal Year 2015, we expect revenue of $12.0 million to $15.0 million; net income
of $0.5 million to $1.0 million. We are confident in accomplishing our goals in the next year.”
Fiscal Year 2014 Financial Performance
Results of Operations - The fiscal year
ended September 30, 2014 compared to the fiscal year ended September 30, 2013.
Revenue
We are a China-based
developer and provider of mobile enterprise solutions. We generate revenue in two ways, from customized software middleware and
applications for various public and private service agencies, which we identify as software solution sales, and from packaged solutions
that include both software and hardware in automation telematics for clients mainly in the manufacturing sector, which we identify
as wireless system solution sales. In the year ended September 30, 2014, we experienced a significant contraction in our software
solution business and our wireless system solution business. Thereafter our revenue decreased by 46.5% to approximately $6.2 million
in the year ended September 30, 2014 from approximately $11.6 million in the year ended September 30, 2013.
Our revenue from software
solution sales decreased by 35.7% to approximately $0.2 million in the year ended September 30, 2014 from approximately $0.3 million
in the year ended September 30, 2013. As a percentage of total revenue, software solution sales increased from 2.5% to 3.0%.
Our revenue from wireless
system solution sales decreased by 46.8% to approximately $6.0 million in the year ended September 30, 2014 from approximately
$11.3 million in the year ended September 30, 2013. As a percentage of total revenue, wireless system solution revenue decreased
from 97.5% to 97.0% of our total revenue. This decreased was insignificant.
Cost of Sales
Our cost of sales
decreased by 60.0% to approximately $4.2 million in the year ended September 30, 2014 from approximately $10.5 million in the year
ended September 30, 2013. The decrease in cost of sales was primarily attributable to the decrease in revenue and increase in gross
margin from both of our business sections. As a percentage of our total revenues, our cost of sales decreased to 68.3% of revenues
in the year ended September 30, 2014 from 91.2% of our total revenues in the year ended September 30, 2013, which is partially
attributable to the fact that the projects the Company had worked on were with old clients and therefore made our work more efficient.
Cost of sales for
software decreased by 81.9% to approximately $0.1 million in the year ended September 30, 2014 from approximately $0.5 million
in the year ended September 30, 2013, representing 2.5% and 5.4% of our total cost of sales and 55.1% and 195.2% of our software
revenue in the fiscal years ended September 30, 2014 and 2013, respectively. Cost of sales for wireless system solutions decreased
by 58.7% to approximately $4.1 million in the year ended September 30, 2014 from approximately $10.0 million in the year ended
September 30, 2013, representing 97.5% and 94.6% of total cost of sales and 68.7% and 88.5% of wireless system solution revenues
in the fiscal years ended September 2014 and 2013, respectively. The decreased percentage of cost of sales in our both business
sections from September 30, 2013 to September 30, 2014 was mainly due to the decrease in revenue and increase in gross margin.
Gross Profit and Gross Margin
Our total gross profit
increased by 92.9% to approximately $1.96 million gross profit in the year ended September 30, 2014 from approximately $1.02 million
loss in the year ended September 30, 2013. Our total gross margin was 31.7% and 8.8% in the years ended September 30, 2014 and
2013 of total revenue, respectively. This increase of gross profit and gross margin was primarily due to the increase in industry
profit and profit margin and revenue from Jingbian integration project that was partially recognized in the last fiscal year as
of September 30, 2014.
Our gross profit for
software solution sales increased by 69.7% to approximately $0.08 million in the year ended September 30, 2014 from approximately
$0.3 million loss in the year ended September 30, 2013. Our gross margin for software solutions sales increased to 44.9% in the
year ended September 30, 2014 from minus 95.2% in the year ended September 30, 2013. Our gross profit for wireless system
solution sales increased by 45.2% to approximately $1.9 million in the year ended September 30, 2014 from approximately $1.3 million
in the year ended September 30, 2013. Our gross margin for wireless system solution sales increased to 31.3% in the year ended
September 30, 2014 from 11.5% in the year ended September 30, 2013, which is partially attributable to the higher margin of some
of the wireless projects. The increase in gross margins in both of our business sections above was due to the fact we had
higher gross margin projects and smaller up-front investments with old customers comparing to the last fiscal year.
Loss from Operations
We incurred a loss
of $0.5 million in the year ended September 30, 2014, a 79.1% decrease in such a loss from approximately loss of $2.6 million in
the year ended September 30, 2013. The decrease in loss from operations was mainly due to significantly higher gross profit from
wireless system solutions business compounded by decreased operating expenses.
Other Income (Expense)
Our other income increased
143.3% to approximately $0.5 million in fiscal year 2014 from approximately $1.2 million of other expense in fiscal year 2013,
and represented 8.2% and 10.2% of our revenue for the years ended September 30, 2014 and 2013, respectively. The increase in our
other income was largely due to our rental income. In April 2008, we purchased an approximately 20,000 square meter six-story warehouse
and industrial facility in Xi’an, which we named the “Kingtone Center”. On October 28, 2013, the Company signed
a twenty-year lease agreement with Xi’an Zhongde Orthopedics Hospital Co., Ltd. (“Zhongde”). According the lease
agreement, the Company shall lease “Kingtone Center” to Zhongde with a monthly rent of approximately $0.1 million from
July 1, 2014 till December 31, 2034. The rent will have an incremental 2 percent increase year over year during the next following
years.
As a US listed company,
the Company is in need of US dollar to cover oversea expenses. Since State Administration of Foreign Exchange in China imposes
restrictions on the remittance of currency out of China, Topsky and Kingtone Information entered into a loan and guarantee agreement
on July 21, 2011 with an unrelated third party to have Topsky borrow US$3 million to cover oversea expenses and take RMB27.9 million,
or US$4.2 million from Kingtone Information as a guarantee. The offset amount US$1.2 million was presented as long-term other receivables
in the anticipation that the agreement would be settled in two years. The loan matured on July 21, 2013 and the long-term
receivable was non-collectable. As a result, we have written off the balance of the long-term receivable and charged to other
expensed for the year ended September 30, 2013.
Net Loss
We incurred a net
loss of $0.001 million in the year ended September 30, 2014 as compared to net loss of approximately $5.1 million in the year ended
September 30, 2013, representing a decrease of 99.9% in net loss. Basic and diluted loss per share was $0 in the year ended September
30, 2014, compared to loss per share $3.65 in the prior year period. The number of weighted average ordinary shares outstanding
was 1,405,000 for the years ended September 30, 2014 and 2013, respectively.
Liquidity and Capital Resources.
Cash and Cash Equivalents.
As of September 30,
2014, the Company had cash and cash equivalents of $6.1 million, compared to $6.4 million in the prior year period.
Net cash used in operating
activities was approximately $0.3 million for the year ended September 30, 2014 as compared to $0.4 million net cash used in operating
activities for the year ended September 30, 2013. During 2014, the Company had a net loss of $1,000 and depreciation and
amortization of $0.6 million. In addition, the Company had decreased accounts and notes receivable by $0.3 million and decreased
unbilled revenue by $1.0 million.
Net cash used in investing
activities for the year ended September 30, 2014 was approximately $137,000 as compared to net cash provided by investing activities
of approximately $7,000 for the year ended September 30, 2013. The cash used in investing activities in 2014 was mainly due to
purchasing certain property and equipment. The cash provided by investing activities in 2013 was mainly a result of the sale of
certain property and equipment.
Net cash used in financing activities
for the year ended September 30, 2014 was approximately $2.1 million as compared to net cash used in financing activities of
approximately $0.02 million for the year ended September 30,2013. The cash used in financing activities was mainly due to the
loan to related parties.
Financial Outlook.
For the fiscal year ending September 30,
2015, management expects revenues of $12.0 million to $15.0 million and net income of $0.5 million to $1.0 million.
Conference Call
The Company hosted a conference call to
discuss its fiscal year 2014 financial results at 8:00 a.m. ET on Thursday, January 15, 2015. Mr. Tao Li, Chairman, Mr. Peng Zhang,
Chief Executive Officer, Ms. Li Wu, Chief Financial Officer and Mr. Fang Wang, Assistant to the Chief Financial Officer, were on
the call.
To participate in the conference call,
please dial any of the following numbers:
USA Toll Free: |
877-407-9205 |
International: |
201-689-8054 |
Conference |
ID #: 13598549 |
A replay of the call will be available
until 11:59 PM ET on Jan. 17, 2014.
To access the replay, please dial any of
the following numbers:
USA Toll Free: |
877-660-6853 |
International: |
201-612-7415 |
The conference call was webcast live by
Vcall and can be accessed at http://www.investorcalendar.com/IC/CEPage.asp?ID=173506.
About Kingtone Wirelessinfo Solution Holding Ltd
Kingtone Wirelessinfo Solution Holding
Ltd (Nasdaq CM: KONE) is a China-based developer and provider of mobile enterprise solutions. The Company's products, known as
mobile enterprise solutions, extend a company's or enterprise's information technology systems to include mobile participants.
The Company develops and implements mobile enterprise solutions for customers in a broad variety of sectors and industries, to
improve efficiencies by enabling information management in wireless environments. At the core of its many diverse packaged solutions
is proprietary middleware that enables wireless interactivity across many protocols, devices and platforms.
For more information, please visit Kingtone's
website at http://en.kingtoneinfo.com/. The Company routinely posts important information on its website.
Safe Harbor Statements
This press release contains "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations,
goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. These forward-looking statements may
include, but are not limited to, statements containing words such as "may," "could," "would," "plan,"
"anticipate," "believe," "estimate," "predict," "potential," "expects,"
"intends", "future" and "guidance" or similar expressions. These forward-looking statements speak
only as of the date of this press release and are subject to change at any time. These forward-looking statements are based upon
management's current expectations and are subject to a number of risks, uncertainties and contingencies, many of which are beyond
the Company's control that may cause actual results, levels of activity, performance or achievements to differ materially from
any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The
Company's actual results could differ materially from those contained in the forward-looking statements due to a number of factors,
including those described under the heading "Risk Factors" in the Company's Annual Report for the fiscal year ended September
30, 2013 filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise, except as required under applicable law.
For investor and media inquiries, please contact:
Mr: Fang Wang
Tel: +86-29-8826-6383
Email: wangfang@kingtoneinfo.com
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