Newater Technology : Annual Report (SEC Filing - 20-F)

Exhibit 99.1

Newater Technology, Inc. Announces Year 2020 Audited Financial Results

New York, USA / PRNewswire / April 30, 2021/ Newater Technology, Inc. (NASDAQ: NEWA) (''NEWA,'' ''we,'' ''our'' or the ''Company''), a leading company specializing in development, production and application of DTRO equipment and systems used in waste water filtration, today announced its financial results for the year ended December 31, 2020.

The year ended December 31, 2020 Financial Highlights (all comparisons to the year ended December 31, 2019):

Revenues increased by 36% from $37.6 million to $51.16 million in 2020, our revenue growth in the year 2020 resulted primarily from increased demand for our systems. These increases can be evidenced in the total revenue from project sales, number of end customers, and number of large-scale projects.

Cost of revenues increased by 43% from $21.7 million to $30.99 million in 2020, the increase in cost of revenues directly corresponded to the increase in revenue during the same year.

Gross profit increased by 27% from $15.9 million to $20.2 million in 2020, while the gross profit margin was 39% in 2020.

Net income (before currency translation loss) increased by 29% from $4.3 million to $5.6 million in 2020, and the net profit margin in 2020 was 11%.

Total assets increased by 19% from $78 million to $93 million in 2020 mainly driven by the purchasing of more inventories and prepayment made for a land use right.

Basic earnings per share was $0.51 in 2020, compared to $0. 40 in 2019 and $0. 67 in 2018.

Mr. Yuebiao Li, the Company's CEO, commented 'We are pleased with our accomplishments in 2020, we overcame the impact of COVID-19 epidemic. In the depressed market, we overcame difficulties and exploited the huge market in coal mine drainage treatment by using the company's patented process package and we completed the construction and production of the project in the same year. We are pleased with the expansion of our business in the field of steel coking wastewater treatment as well.'

In 2021, we will continue to make more efforts to skillfully apply our products to more wastewater treatment fields and undertake larger projects, in order to achieve company's eternal goal of 'renewable resources (New Water) recycling.'

About Newater Technology, Inc.

Founded in 2012 and headquartered in Yantai, China, Newater, operating its business through its wholly owned subsidiary Yantai Jinzheng Eco-Technology Co. Ltd., specializes in the development, manufacture and sale of DTRO (Disk Tube Reverse Osmosis) and DTNF (Disk Tube Nano-Filtration) membranes for waste water treatment, recycling and discharge. Newater provides integrated technical solutions in engineering support and installation, technical advice and services, and, and other project-related solutions to turn wastewater into valuable clean water. Newater also provides wastewater treatment services, such as landfill leachate treatment and purification services.

More information about the Company can be found at www.dtNEWA.com.

The Company's products can be used across a wide spectrum of industries, including:

●	Landfill leachate;

●	Wastewater from coal mines;

●	Industrial park common effluent; and

●	Briny wastewater.

More information about the Company can be found at: www.dtNEWA.com

2

Notice

Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as 'may', 'will', 'intend', 'should', 'believe', 'expect', 'anticipate', 'project', 'estimate' or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Specifically, the Company's statements regarding its ability to apply its products to more industries and obtain larger projects are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the water filtration industry in China; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Newater Technology, Inc.
Zhuo Zhang (CFO)	Victor Liu (Corporate Manager)
Phone: [phone]	Phone : [phone]
Email: [e-mail]	Email : [e-mail]

3

NEWATER TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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

The accompanying notes are an integral part of these consolidated financial statements

4

NEWATER TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

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

The accompanying notes are an integral part of these consolidated financial statements

5

NEWATER TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

		Number of Shares			Common Shares			Additional Paid-in Capital			Retained Earnings (Deficit)			Statutory Reserves			Accumulated Other Comprehensive Income (Loss)			Total Shareholder's Equity
Balance, December 31, 2017			10,809,000			$	10,809			$	15,059,181			$	5,228,733			$	705,698			$	(13,133	)		$	20,991,288
Net income															7,211,429												7,211,429
Statutory reserves															(1,060,013	)			1,060,013								-
Foreign currency translation adjustment																							(1,159,084	)			(1,159,084	)
Balance, December 31, 2018			10,809,000			$	10,809			$	15,059,181			$	11,380,149			$	1,765,711			$	(1,172,217	)		$	27,043,633
Net income															4,311,547												4,311,547
Statutory reserves															(501,508	)			501,508								-
Capital increase from retained earnings											11,244,167				(11,244,167	)											-
Foreign currency translation adjustment																							(378,069	)			(378,069	)
Balance, December 31, 2019			10,809,000			$	10,809			$	26,303,348			$	3,946,021			$	2,267,219			$	(1,550,286	)		$	30,977,111
Net income															5,562,761												5,562,761
Statutory reserves															(674,496	)			674,496								-
Foreign currency translation adjustment																							2,311,620				2,311,620
Balance, December 31, 2020			10,809,000			$	10,809			$	26,303,348			$	8,834,286			$	2,941,715			$	761,334			$	38,851,492

The accompanying notes are an integral part of these consolidated financial statements

6

NEWATER TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

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

7