SAN FRANCISCO and SHENZHEN, China, March
24, 2015 /PRNewswire/ -- Highpower International, Inc.
(NASDAQ: HPJ), a developer, manufacturer, and
marketer of lithium and nickel-metal hydride (Ni-MH) rechargeable
batteries, and a battery management systems and battery recycling
provider, today announced its financial results for the fourth
quarter and fiscal year ended December 31,
2014.
2014 Fiscal Year Operating and Financial Highlights (all
results are compared to prior year period)
- Net sales were $147.1 million, an
increase of 10.7% compared to $132.8
million.
- Lithium battery net sales increased 18.1% from $57.9 million to 68.4 million.
- Gross margin was 20.5% compared to 19.9%.
- Adjusted EBITDA increased 55.9% to $10.6
million, compared to $6.8
million; EBITDA increased 47.8% to $9.4 million, compared to $6.3 million.
- Adjusted net income attributable to the Company increased
109.2% to $3.9 million, or
$0.26 per diluted share, compared to
$1.9 million, or $0.14 per share; Net income attributable to the
company increased 89.7% to $2.8
million, or $0.18 per share,
compared to $1.5 million or
$0.11 per diluted share.
- Major customer additions include Phillips, Sony, Costco, Timex,
Acer and VTech.
- Huizhou facility was
successfully qualified by Samsung, and was certified as Sony's
Green Partner.
Management Commentary
Mr. George Pan, Chairman and CEO
of Highpower International, commented, "We are pleased to report
record sales, and solid operating results in 2014, with
considerable improvement on net income. We are very excited with
the new world-class customers we have acquired during 2014, and the
quality of these customers is a real reflection of Highpower's
value to our investors and market influence around the world. In
the meantime, we have advanced our R&D initiatives throughout
the year to continuously improve our lithium batteries. In 2015,
with the ramp-up of our Huizhou Lithium Battery facility, we are
confident we will continue to monetize on the explosive demand for
mobile devices with our valuable and long-term customer base. We
plan to launch new product lines in the energy storage area, and
progress in electrical transportation. We anticipate higher revenue
growth and continued earnings improvement, and are committed to
building a healthy business for sustainable growth."
2014 Fourth Quarter and Year-end Financial Review
Net Sales
Net sales for the fourth quarter ended December 31, 2014 were $35.3 million compared to $38.4 million for the same period in 2013. The
decrease in net sales was mainly due to a $1.2 million increase in net sales of Ni-MH
batteries, a $0.7 million increases
from new material business, and a decline of $4.9 million in sales of Lithium batteries in
comparison to the same period in 2013. The decrease was primarily
attributable to the temporary delay in certain orders in the fourth
quarter.
Net sales for FY 2014 were $147.1
million, compared to $132.8
million at December 31, 2013.
The increase was due to a $10.5
million increase in net sales of lithium batteries, a
$2.1 million increase in net sales of
Ni-MH batteries, and a $1.7 million
increase from new material business.
Gross Profit
For the fourth quarter ended December 31,
2014, the Company's gross profit was $7.1 million, as compared with $8.6 million for the same period in 2013.
Gross profit for the year end of 2014 increased to $30.2 million, as compared with $26.4 million at December
31, 2013. The increase was due to improved manufacturing
efficiency along with the increase of production automation.
Gross Margin
Gross margin was 20.1% for the fourth quarter ended December 31, 2014, compared to 22.5% in 2013
fourth quarter.
For the year end of 2014, gross margin was 20.5%, as compared
with 19.9% 2013. The increase was due to improved manufacturing
efficiency along with the increase of production automation.
Net sales, cost of sales, and gross profit by segments is set
out as follows:
|
|
Three months
ended
|
|
For the years
ended ,
|
|
December
31,
|
December
31,
|
|
|
2014
|
|
2013
|
Change in
%
|
2014
|
|
2013
|
Change in
%
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Audited)
|
|
(Audited)
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Net
sales
|
|
|
|
|
|
|
|
|
|
Ni-MH
Batteries
|
|
17,861,942
|
|
16,690,430
|
7.02%
|
74,971,144
|
|
72,886,102
|
2.86%
|
Lithium
Batteries
|
|
16,463,190
|
|
21,393,639
|
-23.05%
|
68,434,832
|
|
57,935,104
|
18.12%
|
New
Materials
|
|
993,524
|
|
335,787
|
195.88%
|
3,682,190
|
|
2,028,616
|
81.51%
|
Total
|
|
35,318,656
|
|
38,419,856
|
-8.07%
|
147,088,166
|
|
132,849,822
|
10.72%
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales
|
|
|
|
|
|
|
|
|
|
Ni-MH
Batteries
|
|
14,188,788
|
|
13,639,607
|
4.03%
|
59,546,738
|
|
59,131,594
|
0.70%
|
Lithium
Batteries
|
|
13,136,921
|
|
15,850,608
|
-17.12%
|
54,072,611
|
|
45,515,519
|
18.80%
|
New
Materials
|
|
907,700
|
|
286,225
|
217.13%
|
3,318,014
|
|
1,818,667
|
82.44%
|
Total
|
|
28,233,409
|
|
29,776,440
|
-5.18%
|
116,937,363
|
|
106,465,780
|
9.84%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
Ni-MH Batteries
|
|
3,673,154
|
|
3,050,823
|
20.40%
|
15,424,406
|
|
13,754,508
|
12.14%
|
Lithium Batteries
|
|
3,326,269
|
|
5,543,031
|
-39.99%
|
14,362,221
|
|
12,419,585
|
15.64%
|
New
Materials
|
|
85,824
|
|
49,562
|
73.16%
|
364,176
|
|
209,949
|
73.46%
|
Total
|
|
7,085,247
|
|
8,643,416
|
-18.03%
|
30,150,803
|
|
26,384,042
|
14.28%
|
|
|
|
|
|
|
|
|
|
|
Research and Development (R&D)
R&D spending was $1.9 million,
or 5.3% of net sales, for the fourth quarter ended December 31, 2014, compared to $1.7 million, or 4.5% of net sales, for the same
period in 2013.
R&D spending was $7.7 million,
or 5.2% of the revenue for fiscal year 2014, as compared to
$5.7 million, or 4.3% of the revenue
in 2013. The increase of 35% in R&D spending was due to R&D
activities in high end power batteries and systems in
transportation and industrial energy storage areas, and the
expansion of workforce to improve research in basic materials and
electrochemical system to increase battery energy density.
Selling & Distribution
Selling and distribution expenses were $1.7 million, or 4.9% of net sales, for the
fourth quarter ended December 31,
2014, as compared with $1.8
million, or 4.7% of net sales for the same period in
2013.
For fiscal year 2014, selling and distribution expenses were
$6.6 million, or 4.5% of the revenue,
compared to $6.2 million, or 4.7% of
the revenue, at December 31, 2013.
The increase was due to the expansion of the increased sales and
marketing activities, including participation in industry trade
shows and international travels to promote and sell products
abroad.
General & Administrative
For the fourth quarter ended December 31,
2014, general and administrative expenses were $2.7 million, or 7.7% of net sales, in comparison
to $3.7 million, or 9.7% of net
sales, for the fourth quarter of 2013.
General and administrative expenses in fiscal year 2014 were
$12.9 million, or 8.8% of the
revenue, compared with $12.1 million,
or 9.1% of the revenue, in 2013. The increase was mainly due to the
increase of $859,137 in share based
compensation.
Net Income
For the fourth quarter of 2014, net income attributable to the
Company was $2.0 million, or
$0.13 per diluted share based on 15.5
million weighted average diluted shares outstanding, compared to
net income of $1.2 million, or
$0.09 per diluted share based on 13.9
million weighted average diluted shares outstanding.
Net income attributable to the Company for the fiscal year 2014
was $2.8 million, or $0.18 per diluted share based on 15.2 million
weighted average diluted shares outstanding, compared to net income
of $1.5 million, or $0.11 per share based on 13.7 million, both basic
and diluted, in the same period of 2013.
EBITDA
EBITDA for the fourth quarter ended December 31, 2014 increased 30.1% to $3.3 million from $2.5
million in the prior year period.
For fiscal year 2014, EBITDA increased 47.8% to $9.4 million from $6.3
million in 2013.
A table reconciling EBITDA, a non-GAAP (Generally Accepted
Accounting Principles) financial measure, to the appropriate GAAP
measure is included with the Company's financial information
below.
Balance Sheet Highlights
($ in millions,
except per share data)
|
|
|
12/31/2014
|
12/31/2013
|
(Audited)
|
(Audited)
|
Cash and Cash
Equivalents
|
|
|
$14.6
|
$8.0
|
Total Current
Assets
|
|
|
$89.2
|
$97.3
|
Total
Assets
|
|
|
$146.2
|
$151.8
|
Total Current
Liabilities
|
|
|
$101.4
|
$113.2
|
Total
Liabilities
|
|
|
$104.4
|
$117.1
|
Shareholders'
Equity
|
|
|
$41.8
|
$34.7
|
Total Liabilities and
Shareholders' Equity
|
|
|
$146.2
|
$151.8
|
Book Value Per
Share
|
|
|
$2.77
|
$2.48
|
Outlook for 2015
Mr. Pan continued, "We were particularly pleased to announce the
multi-million dollar order for backup power products for smart
phones in February, which is a rapidly growing segment of the
consumer market. We feel Highpower is well-positioned for growth in
the coming year due to the growing market need for our battery
products in a wide array of customer applications. We intend to
leverage our strong financial position and operating flexibility to
meet the needs of our customer base."
Based on current expectations for global demand in the
rechargeable battery market in 2014 and the continued shift toward
mobile power sources, higher-value energy storage systems and
transportation products, the Company expects 2015 revenues to be
between $160 million to $170 million,
and non-GAAP net income of between $5.0
million and $6.0 million, and net income of between
$4.0 million and $5.0 million.
Conference Call Details
The Company announced that it will discuss financial results in
a conference call on March 24, 2015
at 10:00 a.m. Eastern time /
7:00 a.m. Pacific time to discuss
these results.
The dial-in numbers are:
Live Participant Dial In (Toll
Free): 877-407-3108
Live Participant Dial In (International):
201-493-6797
To listen to the live webcast, please go to at
www.highpowertech.com and click on the conference call link, or go
to: http://highpowertech.equisolvewebcast.com/q4-2014. This webcast
will be archived and accessible through the Company's website for
approximately 30 days following the call. The Company will also
have an accompanying slide presentation available in PDF format on
its homepage prior to the conference call.
About Highpower International, Inc.
Highpower International was founded in 2001 and produces
high-quality Nickel-Metal Hydride (Ni-MH) and lithium-based
rechargeable batteries used in a wide range of applications such as
electric buses, bikes, energy storage systems, power tools, medical
equipment, digital and electronic devices, personal care products,
and lighting, etc. Highpower's target customers are Fortune 500
companies and top 10 companies in each vertical segment. With
advanced manufacturing facilities located in Shenzhen, Huizhou, and Ganzhou of China, Highpower is committed to clean
technology, not only in the products it makes, but also in the
processes of production. The majority of Highpower International's
products are distributed to worldwide markets mainly in
the United States, Europe, China
and Southeast Asia.
Use of Non-GAAP Measures
The Company has supplemented its reported GAAP (generally
accepted accounting principles) financial information with non-GAAP
measures. EBITDA was derived by taking earnings before interest
expense (net), taxes, depreciation and amortization. Adjusted
EBITDA and Non-GAAP (adjusted) net income exclude stock-based
compensation expense. Adjusted EBITDA, as defined above, may
not be similar to Adjusted EBITDA measures used by other companies.
The presentation of this additional information is not meant to be
considered in isolation or as a substitute for results prepared in
accordance with U.S. GAAP. The Company believes these non-GAAP
measures are useful to investors as they provide a basis for
evaluating the Company's operating results in the ordinary course
of its operations.
These non-GAAP measures are not based on any comprehensive set
of accounting rules or principles. The Company believes that
non-GAAP measures have limitations in that they do not reflect all
of the amounts associated with its results of operations as
determined in accordance with U.S. GAAP and that these measures
should only be used to evaluate the Company's results of operations
in conjunction with, and not in lieu of, the corresponding GAAP
measures. These non-GAAP financial measures are reconciled in the
accompanying tables to the most directly comparable measures as
reported in accordance with GAAP.
Forward Looking
Statements
This press release contains "forward-looking statements" within
the meaning of the "safe-harbor" provisions of the Private
Securities Litigation Reform Act of 1995 that are not
historical facts. These statements can be identified by the
use of forward-looking terminology such as "believe," "expect,"
"may," "will," "should," "project," "plan," "seek," "intend," or
"anticipate" or the negative thereof or comparable terminology, and
include discussions of strategy, and statements about industry
trends and the Company's future performance, operations and
products. Such statements involve known and unknown risks,
uncertainties and other factors that could cause the Company's
actual results to differ materially from the results expressed or
implied by such statements, including, without limitation,
fluctuations in the cost of raw materials; our dependence on, or
inability to attract additional, major customers for a significant
portion of our net sales; our ability to increase manufacturing
capabilities to satisfy orders from new customers; our ability to
maintain increased margins; our dependence on the growth in demand
for portable electronic devices and energy storage systems and
transportation products and the success of manufacturers of the end
applications that use our battery products; our responsiveness to
competitive market conditions; our ability to successfully
manufacture our products in the time frame and amounts expected;
the market acceptance of our battery products, including our
lithium products; our ability to successfully develop products for
and penetrate the electric transportation market; our ability to
continue R&D development to keep up with technological changes.
For a discussion of these and other risks and
uncertainties see "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations" in
the Company's public filings with the SEC. Although the Company
believes that the expectations reflected in such forward-looking
statements are reasonable, there can be no assurance that such
expectations will prove to be correct. The Company has no
obligation to update the forward-looking information contained in
this press release.
CONTACT:
Highpower International, Inc.
Henry Sun
CFO
+86-755-8968-6521
ir@highpowertech.com
INVESTOR RELATIONS:
The Equity Group Inc.
In China
Katherine Yao, Associate
+86-10-6587-6435
kyao@equityny.com
In U.S.
Adam Prior, Senior Vice
President
+1 (212) 836-9606
aprior@equityny.com
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Stated in US
Dollars except Number of Shares)
|
|
|
For three months ended December 31,
|
|
For the years ended December 31,
|
|
|
2014
Q4
|
|
2013
Q4
|
|
2014
|
|
2013
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
35,318,656
|
|
38,419,856
|
|
147,088,166
|
|
132,849,822
|
Cost of
sales
|
|
(28,233,409)
|
|
(29,776,440)
|
|
(116,937,363)
|
|
(106,465,780)
|
Gross
profit
|
|
7,085,247
|
|
8,643,416
|
|
30,150,803
|
|
26,384,042
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
(1,864,656)
|
|
(1,726,327)
|
|
(7,709,618)
|
|
(5,711,269)
|
Selling and
distribution expenses
|
|
(1,729,195)
|
|
(1,801,801)
|
|
(6,551,755)
|
|
(6,188,176)
|
General and
administrative expenses
|
|
(2,714,540)
|
|
(3,716,995)
|
|
(12,893,378)
|
|
(12,092,708)
|
Foreign currency
transaction gain (loss)
|
|
(60,426)
|
|
(178,259)
|
|
273,900
|
|
(552,669)
|
Gain (loss) on
derivative instruments
|
|
1,943
|
|
58,906
|
|
(54,406)
|
|
326,222
|
Total operating
expenses
|
|
(6,366,874)
|
|
(7,364,476)
|
|
(26,935,257)
|
|
(24,218,600)
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
718,373
|
|
1,278,940
|
|
3,215,546
|
|
2,165,442
|
|
|
|
|
|
|
|
|
|
Gain on change of
fair value of warrant liability
|
|
1,318,065
|
|
-
|
|
106,278
|
|
-
|
Other
income
|
|
214,025
|
|
561,845
|
|
1,707,516
|
|
1,538,518
|
Interest
expenses
|
|
(310,078)
|
|
(501,037)
|
|
(1,838,155)
|
|
(1,647,155)
|
Income before
taxes
|
|
1,940,385
|
|
1,339,748
|
|
3,191,185
|
|
2,056,805
|
|
|
|
|
|
|
|
|
|
Income taxes
expenses
|
|
38,554
|
|
(138,664)
|
|
(590,318)
|
|
(718,016)
|
Net
income
|
|
1,978,939
|
|
1,201,084
|
|
2,600,867
|
|
1,338,789
|
|
|
|
|
|
|
|
|
|
Less: net loss
attributable to non-controlling interest
|
|
(22,781)
|
|
(7,497)
|
|
(152,369)
|
|
(112,429)
|
Net income
attributable to the Company
|
|
2,001,720
|
|
1,208,581
|
|
2,753,236
|
|
1,451,218
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
Net
income
|
|
1,978,939
|
|
1,201,084
|
|
2,600,867
|
|
1,338,789
|
Foreign currency
translation gain (loss)
|
|
184,828
|
|
291,457
|
|
(156,926)
|
|
822,600
|
Comprehensive
income
|
|
2,163,767
|
|
1,492,541
|
|
2,443,941
|
|
2,161,389
|
|
|
|
|
|
|
|
|
|
Less: comprehensive
loss attributable to non-controlling interest
|
|
51,120
|
|
1,796
|
|
(89,093)
|
|
(88,824)
|
Comprehensive income
attributable to the Company
|
|
2,112,647
|
|
1,490,745
|
|
2,533,034
|
|
2,250,213
|
|
|
|
|
|
|
|
|
|
Earnings per share of
common stock attributable to the Company
|
|
|
|
|
|
|
|
|
- Basic
|
|
0.13
|
|
0.09
|
|
0.19
|
|
0.11
|
- Diluted
|
|
0.13
|
|
0.09
|
|
0.18
|
|
0.11
|
|
|
|
|
|
|
|
|
|
Weighted average number of common
stock outstanding
|
|
|
|
|
|
|
|
|
- Basic
|
|
15,055,346
|
|
13,657,930
|
|
14,739,073
|
|
13,671,169
|
- Diluted
|
|
15,541,398
|
|
13,657,930
|
|
15,154,239
|
|
13,687,698
|
|
|
|
|
|
|
|
|
|
HIGHPOWER
INTERNATIONAL, INC.AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Stated in US
Dollars except Number of Shares)
|
|
|
December 31,
|
|
December 31,
|
|
|
2014
|
|
2013
|
|
|
$
|
|
$
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
14,611,892
|
|
7,973,459
|
|
Restricted
cash
|
|
15,396,827
|
|
28,586,121
|
|
Accounts receivable,
net
|
|
32,316,607
|
|
33,961,014
|
|
Notes
receivable
|
|
621,110
|
|
1,014,891
|
|
Prepayments
|
|
3,283,520
|
|
4,969,743
|
|
Other
receivables
|
|
665,828
|
|
1,063,656
|
|
Inventories
|
|
22,268,069
|
|
19,739,360
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
89,163,853
|
|
97,308,244
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
50,437,718
|
|
48,548,203
|
|
Land use right,
net
|
|
4,305,317
|
|
4,421,415
|
|
Intangible asset,
net
|
|
600,000
|
|
650,000
|
|
Deferred tax
assets
|
|
1,647,184
|
|
802,225
|
|
Foreign currency
derivatives assets
|
|
-
|
|
63,289
|
|
|
|
|
|
TOTAL
ASSETS
|
|
146,154,072
|
|
151,793,376
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
44,562,647
|
|
40,026,698
|
|
Deferred
income
|
|
1,887,409
|
|
675,521
|
|
Short-term
loan
|
|
15,195,040
|
|
36,142,105
|
|
Notes
payable
|
|
29,903,248
|
|
25,271,256
|
|
Other payables and
accrued liabilities
|
|
5,896,547
|
|
7,801,431
|
|
Income taxes
payable
|
|
1,968,656
|
|
1,279,658
|
|
Current portion of
long-term loan
|
|
1,959,248
|
|
1,967,536
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
101,372,795
|
|
113,164,205
|
|
|
|
|
|
|
|
Warrant
Liability
|
|
1,067,674
|
|
-
|
|
Long-term
loan
|
|
1,959,247
|
|
3,935,071
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
104,399,716
|
|
117,099,276
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Preferred
stock
|
|
|
|
|
|
(Par value: $0.0001,
Authorized: 10,000,000 shares, Issued and
outstanding: none)
|
|
-
|
|
-
|
|
Common
stock
|
|
|
|
|
|
(Par value: $0.0001,
Authorized: 100,000,000 shares, 15,084,746
shares issued and outstanding at December 31, 2014 and
13,978,106 shares issued and outstanding at December 31,
2013)
|
|
1,508
|
|
1,398
|
|
Additional paid-in
capital
|
|
10,530,430
|
|
6,011,305
|
|
Statutory and other
reserves
|
|
3,611,501
|
|
3,142,411
|
|
Retained
earnings
|
|
20,675,021
|
|
18,390,875
|
|
Accumulated other
comprehensive income
|
|
5,628,657
|
|
5,848,859
|
|
|
|
|
|
Total equity for the
Company's stockholders
|
|
40,447,117
|
|
33,394,848
|
|
|
|
|
|
Non-controlling
interest
|
|
1,307,239
|
|
1,299,252
|
|
|
|
|
|
TOTAL
EQUITY
|
|
41,754,356
|
|
34,694,100
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
146,154,072
|
|
151,793,376
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Stated in US
Dollars)
|
|
For the years
ended December 31,
|
|
2014
|
|
2013
|
|
$
|
|
$
|
Cash flows from
operating activities
|
|
|
|
Net income
|
2,600,867
|
|
1,338,789
|
Adjustments to
reconcile net income to net cash provided
by operating activities:
|
|
|
|
Depreciation and
amortization
|
4,201,533
|
|
2,523,583
|
Allowance for
doubtful accounts
|
768
|
|
483,586
|
Loss on disposal of
property, plant and equipment
|
227,264
|
|
263,454
|
Loss on derivative
instruments
|
62,801
|
|
194,892
|
Deferred income
tax
|
(845,068)
|
|
(23,410)
|
Share based
payment
|
1,288,916
|
|
426,779
|
Gain on change of
fair value of warrant liability
|
(106,278)
|
|
-
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
1,472,589
|
|
(8,511,464)
|
Notes
receivable
|
388,137
|
|
(605,229)
|
Prepayments
|
1,661,111
|
|
(1,656,526)
|
Other
receivable
|
391,965
|
|
(239,801)
|
Inventories
|
(2,602,659)
|
|
(2,618,611)
|
Accounts
payable
|
5,672,372
|
|
14,566,891
|
Deferred
income
|
1,880,776
|
|
-
|
Other payables and
accrued liabilities
|
(1,867,493)
|
|
3,178,758
|
Income taxes
payable
|
691,949
|
|
72,509
|
Net cash flows
provided by operating activities
|
15,119,550
|
|
9,394,200
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisition of plant
and equipment
|
(8,881,328)
|
|
(19,981,373)
|
Net cash flows
used in investing activities
|
(8,881,328)
|
|
(19,981,373)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
short-term bank loans
|
20,346,228
|
|
34,088,599
|
Repayment of
short-term bank loans
|
(41,122,204)
|
|
(18,770,730)
|
Repayment of
long-term bank loans
|
(1,952,362)
|
|
(1,937,987)
|
Proceeds from notes
payable
|
52,258,487
|
|
45,285,470
|
Repayment of notes
payable
|
(47,536,694)
|
|
(46,960,375)
|
Proceeds from
issuance of capital stock and warrants, net
|
4,633,164
|
|
-
|
Change in restricted
cash
|
13,038,071
|
|
(350,756)
|
Net cash flows
provided by (used in) financing activities
|
(335,310)
|
|
11,354,221
|
Effect of foreign
currency translation on cash and cash
equivalents
|
735,521
|
|
579,077
|
Net increase in cash
and cash equivalents
|
6,638,433
|
|
1,346,125
|
Cash and cash
equivalents - beginning of year
|
7,973,459
|
|
6,627,334
|
Cash and cash
equivalents - end of year
|
14,611,892
|
|
7,973,459
|
|
|
|
|
Supplemental
disclosures for cash flow information:
|
|
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
743,437
|
|
668,917
|
Interest
expenses
|
1,912,584
|
|
1,647,155
|
Non-cash
transactions
|
|
|
|
Accounts payable for
construction in progress
|
-
|
|
1,294,963
|
Reduction of
property, plant and equipment cost by
realizing deferred income
|
672,675
|
|
-
|
|
|
|
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES (Unaudited)
(Stated in
US Dollars)
|
Reconciliation of Net
Income to EBITDA
|
|
Three Months
Ended December 31,
|
|
|
For the years
ended December 31,
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
$
|
|
$
|
|
|
$
|
|
$
|
Net Income
attributable to the Company
|
2,001,720
|
|
1,208,581
|
|
|
2,753,236
|
|
1,451,218
|
Non-GAAP Net
Income (1)
|
907,602
|
|
1,479,008
|
|
|
3,935,874
|
|
1,880,997
|
|
|
|
|
|
|
|
|
|
Interest expenses,
net
|
310,078
|
|
501,037
|
|
|
1,838,155
|
|
1,647,155
|
Income tax
expenses
|
(38,554)
|
|
138,664
|
|
|
590,318
|
|
718,016
|
Depreciation and
Amortization
|
1,029,754
|
|
690,987
|
|
|
4,191,138
|
|
2,523,583
|
|
|
|
|
|
|
|
|
|
EBITDA
|
3,302,998
|
|
2,539,269
|
|
|
9,372,847
|
|
6,339,972
|
Non-GAAP
EBITDA(2)
|
2,208,880
|
|
2,809,696
|
|
|
10,555,485
|
|
6,769,751
|
|
|
|
|
|
|
|
|
|
(1) See table below
for reconciliation of net income attributable to the Company to
Non-GAAP net income attributable to the Company.
(2) Excludes
share-based compensation expense as set forth in the following
table.
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES (Unaudited)
(Stated in US
Dollars)
|
Reconciliation of Net
Income Attributable to the Company to Non-GAAP Net Income
Attributable to the Company
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
For the years
ended
|
December
31,
|
December
31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
Net income
attributable to the Company
|
|
2,001,720
|
|
1,208,581
|
|
2,753,236
|
|
1,451,218
|
Stock-based
compensation expense
|
|
223,947
|
|
270,427
|
|
1,288,916
|
|
429,779
|
Loss on change of
fair value of warrant liability
|
|
(1,318,065)
|
|
-
|
|
(106,278)
|
|
-
|
Non-GAAP net income
attributable to the Company
|
|
907,602
|
|
1,479,008
|
|
3,935,874
|
|
1,880,997
|
|
|
|
|
|
|
|
|
|
Basic net income per
share of common stock attributable to the
Company
|
|
0.13
|
|
0.09
|
|
0.19
|
|
0.11
|
Stock-based
compensation expense
|
|
0.01
|
|
0.02
|
|
0.09
|
|
0.03
|
Loss on change of
fair value of warrant liability
|
|
(0.09)
|
|
-
|
|
(0.01)
|
|
-
|
Non-GAAP income per
share of common stock attributable to the Company
|
|
0.05
|
|
0.11
|
|
0.27
|
|
0.14
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share of common stock attributable to the Company
|
|
0.13
|
|
0.09
|
|
0.18
|
|
0.11
|
Stock-based
compensation expense
|
|
0.01
|
|
0.01
|
|
0.09
|
|
0.03
|
Loss on change of
fair value of warrant liability
|
|
(0.08)
|
|
-
|
|
(0.01)
|
|
-
|
Non-GAAP income per
share of common stock attributable to the Company
|
|
0.06
|
|
0.10
|
|
0.26
|
|
0.14
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
-Basic
|
|
15,055,346
|
|
13,863,306
|
|
14,739,073
|
|
13,671,169
|
-Diluted
|
|
15,541,398
|
|
13,874,574
|
|
15,154,239
|
|
13,687,698
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/highpower-international-reports-financial-results-for-the-fourth-quarter-and-year-ended-december-31-2014-300055008.html
SOURCE Highpower International, Inc.