SAN FRANCISCO and SHENZHEN, China, Aug.
12, 2016 /PRNewswire/ -- Highpower International, Inc.
(NASDAQ: HPJ), a developer, manufacturer,
and marketer of lithium and nickel-metal hydride (Ni-MH)
rechargeable batteries, and battery management systems and
battery recycling provider, today announced its financial results
for the second quarter and six months ended June 30, 2016.
2016 Second Quarter Financial Highlights (all
results are compared to prior year period)
- Net sales were $36.7million,
compared to $38.6 million, primarily
due to exchange rate difference.
- Gross margin was 20.8%, compared to 22.2%, mainly due to lower
average selling price.
- EBITDA was $3.7million compared
to $3.3 million.
- Net income attributable to the Company was $2.1 million, or $0.14 per diluted share, compared to net income
attributable to the Company of $1.9
million, or $0.12 per diluted
share; non-GAAP net income attributable to the Company was
$2.1 million, or $0.15 per diluted share, compared to non-GAAP net
income attributable to the Company of $2.1
million, or $0.13 per diluted
share.
Management Commentary
Mr. George Pan, Chairman and CEO
of Highpower International, commented, "We are pleased to announce
strong results for the second quarter, especially the overall net
income is performing well and lithium battery business has a good
momentum of progress since the second quarter. We have maintained a
solid gross margin in the competitive battery market. We also
indicated that growth would accelerate in the second half of 2016
with the battery sales peak season coming. As we have focused on
our corporate objectives, we have also established a lean
production culture of continuous improvements, which allows us to
provide our customers with the best cost performance products and
allows Highpower's sustainable and healthy growth in the future.
"
2016 Second Quarter Financial Review
Net Sales
Net sales for the second quarter ended June 30, 2016 were $36.7
million compared to $38.6
million for the same period in 2015. The 1.9 million
decrease in net sales compared to the same period in 2015 was
mainly due to a $3.8 million decrease
in sales of Ni-MH Batteries, offset by increases of $1.6 million in sales of lithium batteries and
$0.3 million increase in sales of new
material business. Without exchange rate change, net sales in Q2 of
2016 increased 1.6% compared to the same period in 2015.
Net sales for the six months ended June
30, 2016 were $65.8 million,
compared to $70.8 million for the
same prior year period. This $5.0
million decrease was due to a $5.7
million decrease in sales of Ni-MH Batteries, offset by a
$0.1 million increase in net sales of
lithium batteries and $0.7 million
increase in new material business. Without exchange rate change,
net sales in first half year of 2016 decreased 0.9% compared to
same period in 2015.
Gross Profit
For the second quarter ended June 30,
2016, the Company's gross profit was $7.6 million, compared to $8.6 million, for the same period in 2015. This
decrease was mainly due to the decrease in the average selling
price of batteries.
For the six months ended June 30,
2016, the Company's gross profit was $13.5 million, compared to $14.1 million for the same period in 2015.
Gross Margin
Gross margin was 20.8% for the second quarter ended June 30, 2016, compared to 22.2% for the same
period in 2015. The decrease was due to pricing declines from the
prior year period as well as product mix, offset by lower costs of
sales.
Gross margin for the six months ended June 30, 2016 was 20.5%, as compared with 19.9%
for the same period in 2015.
Research and Development (R&D)
R&D expenses were $2.0
million, or 5.5% of net sales, for the second quarter ended
June 30, 2016, compared to
$2.0 million, 5.2% of net sales for
the same period in 2015.
For the six months ended June 30,
2016, R&D expenses were$3.7 million, or 5.6% of net
sales, compared to $3.7 million, or
5.2% of net sales, for the same period in 2015.
Selling & Distribution
Selling and distribution expenses were $1.5 million, or 4.2% of net sales, for the
second quarter ended June 30, 2016,
compared to $1.6 million, or 4.1% of
net sales, for the same period in 2015.
For the six months ended June 30,
2016, selling and distribution expenses were $3.1 million, or 4.7% of the net sales, compared
to $3.4 million, or 4.8% of net
sales, for the same period in 2015.
General & Administrative
General and administrative expenses were $3.2 million, or 8.8% of net sales, for the
second quarter ended June 30, 2016,
compared to $3.4 million, or 8.9% of
net sales, for the same period in 2015.
For the six months ended June 30,
2016, general and administrative expenses were $6.3 million, or 9.6% of net sales, compared to
$6.4 million, or 9.1% of net sales,
for the same period in 2015.
Net Income
For the second quarter of 2016, net income attributable to the
Company was $2.1 million, or
$0.14 per diluted share based on 15.1
million weighted average diluted shares outstanding, compared to
net income of $1.9 million, or
$0.12 per diluted share based on 15.4
million weighted average diluted shares outstanding. Non-GAAP net
income attributable to the Company was $2.1
million, or $0.15 per diluted
share, compared to a non-GAAP net income of $2.1 million, or $0.13 per diluted share, in the prior year
period.
For the six months ended June 30,
2016, net income attributable to the Company was
$1.7 million, or $0.11 per diluted share based on 15.1 million
weighted average diluted shares outstanding, compared to net income
of $1.7 million, or $0.11 per diluted share based on 15.5 million
weighted average diluted shares outstanding. Non-GAAP net income
attributable to the Company was $1.8
million, or $0.11 per diluted
share, compared to a non-GAAP net income of $1.7 million, or $0.11 per diluted share, in the prior year
period.
EBITDA
EBITDA for the second quarter ended June
30, 2016 was $3.7million,
compared to $3.3 million in the prior
year period.
For the six months ended June 30,
2016, EBITDA was $4.8 million,
compared to $4.5 million, in the
prior year period.
A table reconciling EBITDA, a non-GAAP (Generally Accepted
Accounting Principles) financial measure, to the appropriate GAAP
measure is included with the Company's financial information
below.
Balance Sheet Highlights
|
($ in millions, except
per share data)
|
|
June
30,
|
|
December
31,
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
|
|
|
$
|
|
$
|
Cash and Cash
Equivalents
|
|
$6.8
|
|
$5.8
|
Total Current
Assets
|
|
$78.5
|
|
$80.7
|
Total
Assets
|
|
$134.2
|
|
$134.2
|
Total Current
Liabilities
|
|
$91.5
|
|
$91.2
|
Total
Liabilities
|
|
$91.5
|
|
$91.3
|
Shareholders'
Equity
|
|
$42.7
|
|
$42.9
|
Total Liabilities and
Shareholders' Equity
|
|
$134.2
|
|
$134.2
|
Book Value Per
Share
|
|
$2.83
|
|
$2.84
|
Conference Call Details
The Company announced that it will discuss financial results in
a conference call on August 12,
2016at 10:00a.m.Eastern Time /
7:00a.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/q2-2016. 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 20 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 or (loss) exclude
stock-based compensation expense and change of fair value of
warrant liability. 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, economic
downturn and uncertainty in Asia
and Europe adversely affecting
demand for our products; 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; changes in
the laws of the PRC that affect our operations; the devaluation of
the U.S. Dollar relative to the Renminbi; 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 our exposure to product
liability, safety, and defect claims; rising labor costs, volatile
metal prices, and inflation; changes in foreign, political, social,
business and economic conditions that affect our production
capabilities or demand for our products; and various other matters,
many of which are beyond our control.. 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.
Sunny Pan
Interim Chief Financial Officer
+86-755-8968-6521
ir@highpowertech.com
INVESTOR RELATIONS:
The Equity Group Inc.
In China
Katherine Yao, Senior 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
(LOSS)
|
(Stated in US
Dollars except Number of Shares)
|
|
|
Three months
ended
June
30,
|
|
Six months
ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
Net
sales
|
36,732,310
|
|
38,635,801
|
|
65,829,365
|
|
70,773,449
|
Cost of
sales
|
(29,088,639)
|
|
(30,072,041)
|
|
(52,308,655)
|
|
(56,653,975)
|
Gross
profit
|
7,643,671
|
|
8,563,760
|
|
13,520,710
|
|
14,119,474
|
|
|
|
|
|
|
|
|
Research and development
expenses
|
(2,035,886)
|
|
(1,997,494)
|
|
(3,658,769)
|
|
(3,671,618)
|
Selling and distribution
expenses
|
(1,539,395)
|
|
(1,597,564)
|
|
(3,074,431)
|
|
(3,396,286)
|
General and administrative
expenses
|
(3,248,899)
|
|
(3,423,770)
|
|
(6,318,613)
|
|
(6,448,521)
|
Foreign currency
transaction gain
|
600,313
|
|
73,546
|
|
509,877
|
|
443,857
|
Total operating
expenses
|
(6,223,867)
|
|
(6,945,282)
|
|
(12,541,936)
|
|
(13,072,568)
|
|
|
|
|
|
|
|
|
Income from
operations
|
1,419,804
|
|
1,618,478
|
|
978,774
|
|
1,046,906
|
|
|
|
|
|
|
|
|
Gain on change of fair
value of warrant liability
|
7,077
|
|
84,833
|
|
126,546
|
|
431,132
|
Other
income
|
1,055,947
|
|
357,055
|
|
1,211,875
|
|
587,147
|
Interest
expenses
|
(435,402)
|
|
(275,476)
|
|
(710,394)
|
|
(544,118)
|
Income before
taxes
|
2,047,426
|
|
1,784,890
|
|
1,606,801
|
|
1,521,067
|
|
|
|
|
|
|
|
|
Income taxes (expenses)
benefit
|
(174,313)
|
|
(18,840)
|
|
(209,817)
|
|
76,416
|
Net
income
|
1,873,113
|
|
1,766,050
|
|
1,396,984
|
|
1,597,483
|
|
|
|
|
|
|
|
|
Less: net loss attributable
to non-controlling interest
|
(178,669)
|
|
(101,074)
|
|
(312,190)
|
|
(146,283)
|
Net income attributable to
the Company
|
2,051,782
|
|
1,867,124
|
|
1,709,174
|
|
1,743,766
|
|
|
|
|
|
|
|
|
Comprehensive (loss)
income
|
|
|
|
|
|
|
|
Net
income
|
1,873,113
|
|
1,766,050
|
|
1,396,984
|
|
1,597,483
|
Foreign currency
translation (loss) income
|
(1,964,424)
|
|
206,027
|
|
(1,714,278)
|
|
1,266
|
Comprehensive (loss)
income
|
(91,311)
|
|
1,972,077
|
|
(317,294)
|
|
1,598,749
|
|
|
|
|
|
|
|
|
Less: comprehensive loss
attributable to non-
controlling
interest
|
(197,060)
|
|
(95,376)
|
|
(325,882)
|
|
(144,549)
|
Comprehensive income
attributable to the Company
|
105,749
|
|
2,067,453
|
|
8,588
|
|
1,743,298
|
|
|
|
|
|
|
|
|
Income per share of common
stock attributable to the
Company
|
|
|
|
|
|
|
|
-
Basic
|
0.14
|
|
0.12
|
|
0.11
|
|
0.12
|
-
Diluted
|
0.14
|
|
0.12
|
|
0.11
|
|
0.11
|
|
|
|
|
|
|
|
|
Weighted average number of
common stock
outstanding
|
|
|
|
|
|
|
|
-
Basic
|
15,101,679
|
|
15,094,979
|
|
15,101,679
|
|
15,091,639
|
-
Diluted
|
15,102,877
|
|
15,441,576
|
|
15,103,886
|
|
15,469,274
|
HIGHPOWER
INTERNATIONAL, INC.AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(Stated in US
Dollars except Number of Shares)
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
|
|
|
(Unaudited)
|
|
|
|
|
|
$
|
|
$
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash
|
|
|
6,798,975
|
|
5,849,967
|
|
Restricted
cash
|
|
|
9,892,758
|
|
11,656,204
|
|
Accounts receivable,
net
|
|
|
32,279,032
|
|
36,139,866
|
|
Accounts receivable,
related party
|
|
|
2,152,054
|
|
-
|
|
Notes
receivable
|
|
|
684,697
|
|
1,757,709
|
|
Prepayments and other
receivables
|
|
|
6,210,666
|
|
6,060,904
|
|
Inventories,
net
|
|
|
20,502,568
|
|
19,218,331
|
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
|
78,520,750
|
|
80,682,981
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
48,569,186
|
|
47,464,186
|
|
Land use right,
net
|
|
|
3,830,862
|
|
3,963,003
|
|
Other
assets
|
|
|
1,000,662
|
|
550,000
|
|
Deferred tax
assets
|
|
|
1,574,303
|
|
1,544,314
|
|
Long-term
investment
|
|
|
751,925
|
|
-
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
134,247,688
|
|
134,204,484
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
|
32,803,377
|
|
36,077,396
|
|
Deferred
income
|
|
|
785,899
|
|
879,944
|
|
Short-term bank
loan
|
|
|
14,963,306
|
|
13,839,341
|
|
Non-financial institution
borrowings
|
|
|
4,511,550
|
|
-
|
|
Notes
payable
|
|
|
29,003,988
|
|
30,490,166
|
|
Amount due to a related
company
|
|
|
761,895
|
|
-
|
|
Other payables and accrued
liabilities
|
|
|
6,503,604
|
|
6,292,492
|
|
Income taxes
payable
|
|
|
1,252,743
|
|
1,783,013
|
|
Current portion of
long-term loan
|
|
|
902,310
|
|
1,845,245
|
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
|
91,488,672
|
|
91,207,597
|
|
|
|
|
|
|
|
|
Warrant
Liability
|
|
|
14,003
|
|
140,549
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
|
91,502,675
|
|
91,348,146
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
HIGHPOWER
INTERNATIONAL, INC.AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS (CONTINUED)
|
(Stated in US
Dollars except Number of Shares)
|
|
|
|
|
June
30,
|
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
(Unaudited)
|
|
|
|
|
|
$
|
|
$
|
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, 15,101,679
shares issued and outstanding at June 30, 2016 and December 31,
2015)
|
|
|
1,510
|
|
1,510
|
|
Additional paid-in
capital
|
|
|
11,433,948
|
|
11,227,979
|
|
Statutory and other
reserves
|
|
|
4,042,429
|
|
4,042,429
|
|
Retained
earnings
|
|
|
25,807,349
|
|
24,098,175
|
|
Accumulated other
comprehensive income
|
|
|
932,176
|
|
2,632,762
|
|
|
|
|
|
|
Total equity for the
stockholders of Highpower International
Inc.
|
|
|
42,217,412
|
|
42,002,855
|
|
|
|
|
|
|
Non-controlling
interest
|
|
|
527,601
|
|
853,483
|
|
|
|
|
|
|
TOTAL
EQUITY
|
|
|
42,745,013
|
|
42,856,338
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
EQUITY
|
|
|
134,247,688
|
|
134,204,484
|
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Stated in US
Dollars)
|
|
|
Six
months ended June
30
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
$
|
|
$
|
Cash flows from
operating activities
|
|
|
|
Net
income
|
1,396,984
|
|
1,597,483
|
Adjustments to reconcile
net income to net cash provided by (used in)
operating
activities:
|
|
|
|
Depreciation and
amortization
|
2,486,196
|
|
2,535,695
|
Allowance for doubtful
accounts
|
4,837
|
|
896
|
Income on disposal of
property, plant and equipment
|
95,368
|
|
79,692
|
Deferred income
tax
|
(64,671)
|
|
(230,050)
|
Share based
compensation
|
205,969
|
|
412,304
|
Change in fair value of
warrant liability
|
(126,546)
|
|
(431,132)
|
Changes in operating assets
and liabilities:
|
|
|
|
Accounts
receivable
|
3,216,097
|
|
(787,672)
|
Notes
receivable
|
1,051,486
|
|
(1,645,051)
|
Prepayments and other
receivables
|
(770,029)
|
|
(2,338,484)
|
Amount due from a related
company
|
(2,187,784)
|
|
-
|
Amount due to a related
company
|
774,545
|
|
-
|
Inventories
|
(1,735,486)
|
|
(3,386,818)
|
Accounts
payable
|
(2,843,233)
|
|
(1,503,555)
|
Deferred
revenue
|
(75,912)
|
|
-
|
Other payables and accrued
liabilities
|
349,026
|
|
315,942
|
Income taxes
payable
|
(499,161)
|
|
(573,875)
|
Net cash
flows provided by (used in)
operating activities
|
1,277,686
|
|
(5,954,625)
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisitions of plant and
equipment
|
(4,415,690)
|
|
(4,047,717)
|
Payment for long-term
investment
|
(764,409)
|
|
-
|
Net cash flows used in
investing activities
|
(5,180,099)
|
|
(4,047,717)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from short-term
bank loans
|
1,452,377
|
|
-
|
Repayment of
short-term loans
|
-
|
|
(6,062,248)
|
Proceeds from non-financial
institution borrowings
|
4,586,455
|
|
-
|
Repayment of long-term bank
loans
|
(917,291)
|
|
(978,649)
|
Proceeds from notes
payable
|
29,485,540
|
|
30,931,015
|
Repayment of notes
payable
|
(30,313,965)
|
|
(27,631,861)
|
Proceeds from exercise of
employee options
|
-
|
|
44,534
|
Change in restricted
cash
|
1,531,837
|
|
2,588,730
|
Net cash flows provided
by (used in) financing activities
|
5,824,953
|
|
(1,108,479)
|
Effect of foreign currency
translation on cash and cash equivalents
|
(973,532)
|
|
238,188
|
Net increase (decrease) in
cash and cash equivalents
|
949,008
|
|
(10,872,633)
|
Cash and cash equivalents -
beginning of period
|
5,849,967
|
|
14,611,892
|
Cash and cash equivalents -
end of period
|
6,798,975
|
|
3,739,259
|
|
|
|
|
Supplemental disclosures
for cash flow information:
|
|
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
773,650
|
|
727,509
|
Interest
expenses
|
710,394
|
|
615,363
|
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
|
Six months
ended
|
|
|
June
30,
|
June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Net income attributable
to the
Company
|
|
2,051,782
|
|
1,867,124
|
|
1,709,174
|
|
1,743,766
|
Non-GAAP Net Income
(1)
|
|
2,139,964
|
|
2,073,234
|
|
1,788,597
|
|
1,724,938
|
|
|
|
|
|
|
|
|
|
Interest expenses,
net
|
|
283,137
|
|
110,262
|
|
425,600
|
|
342,832
|
Income tax (expenses)
benefit
|
|
174,313
|
|
18,840
|
|
209,817
|
|
(76,416)
|
Depreciation and
Amortization
|
|
1,229,817
|
|
1,289,652
|
|
2,486,196
|
|
2,535,695
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
3,739,049
|
|
3,285,878
|
|
4,830,787
|
|
4,545,877
|
Non-GAAP Adjusted
EBITDA(2)
|
|
3,827,231
|
|
3,491,988
|
|
4,910,210
|
|
4,527,049
|
|
(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 and gain on change of fair value
of warrant liabilityas set forth in the
following
table.
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES (Unaudited)
|
(Stated in US
Dollars except Number of Shares)
|
|
Reconciliation of Net
Income Attributable to the Company to Non-GAAP Net Income
Attributable to the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
June
30,
|
June
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
the Company
|
|
2,051,782
|
|
1,867,124
|
|
1,709,174
|
|
1,743,766
|
Stock-based compensation
expense
|
|
95,259
|
|
290,943
|
|
205,969
|
|
412,304
|
Gain on change of fair
value of warrant liability
|
|
(7,077)
|
|
(84,833)
|
|
(126,546)
|
|
(431,132)
|
Non-GAAP net income
attributable to the Company
|
|
2,139,964
|
|
2,073,234
|
|
1,788,597
|
|
1,724,938
|
|
|
|
|
|
|
|
|
|
Basic net income per share
of common stock
attributable to the
Company
|
|
0.14
|
|
0.12
|
|
0.11
|
|
0.12
|
Stock-based compensation
expense
|
|
0.01
|
|
0.02
|
|
0.01
|
|
0.03
|
Gain on change of fair
value of warrant liability
|
|
(0.00)
|
|
(0.01)
|
|
(0.01)
|
|
(0.03)
|
Non-GAAP income per share
of common stock
attributable to the
Company
|
|
0.15
|
|
0.13
|
|
0.11
|
|
0.12
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share of common stock
attributable to the
Company
|
|
0.14
|
|
0.12
|
|
0.11
|
|
0.11
|
Stock-based compensation
expense
|
|
0.01
|
|
0.02
|
|
0.01
|
|
0.03
|
Gain on change of fair
value of warrant liability
|
|
(0.00)
|
|
(0.01)
|
|
(0.01)
|
|
(0.03)
|
Non-GAAP income per share
of common stock
attributable to the
Company
|
|
0.15
|
|
0.13
|
|
0.11
|
|
0.11
|
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares
outstanding
|
|
|
|
|
|
|
|
|
-Basic
|
|
15,101,679
|
|
15,094,979
|
|
15,101,679
|
|
15,091,639
|
-Diluted
|
|
15,102,877
|
|
15,441,576
|
|
15,103,886
|
|
15,469,274
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/highpower-international-reports-financial-results-for-the-second-quarter-and-six-months-ended-june-30-2016-300312868.html
SOURCE Highpower International, Inc.