SAN DIEGO and SHENZHEN, China, March
12, 2018 /PRNewswire/ -- Highpower International, Inc.
(NASDAQ: HPJ) ("Highpower" or the "Company"), a developer,
manufacturer, and marketer of lithium ion and nickel-metal hydride
(Ni-MH) rechargeable batteries, battery management systems, and a
provider of battery recycling, today announced its preliminary
unaudited financial results for the fourth quarter and year ended
December 31, 2017.
Net sales for the fourth quarter of 2017 is estimated to
be in the range of $78.2 to
$80.2 million, a 45% to 49% increase
from $53.9 million in the same
quarter of 2016. Full year 2017 net sales are estimated to be in
the range of $243.2 to $245.2 million, a 40% to 41% increase from
$173.9 million in the same time
period last year. The Company's strong top-line performance in the
fourth quarter was primarily driven by growth from Ganzhou
Highpower, which experienced an increase in larger volume orders
with support from its new largest shareholder. In December 2017, the Company entered into a
transaction decreasing its ownership of Ganzhou Highpower so that
Highpower is no longer the majority shareholder. Excluding the
contribution of Ganzhou Highpower, net sales for the fourth quarter
of 2017 is estimated to be in the range of $62.4 to $63.6
million, an 18% to 20% increase compared to the fourth
quarter of 2016. Full year 2017 net sales are estimated to be in
the range of $214.0 to $217.0 million, a 26% to 28% increase compared to
full year 2016.
Fourth quarter 2017 gross profit is estimated to be in
the range of $10.8 to $12.8 million, or 13.8%-16.0% as a percent of net
sales, from $10.9 million in the
fourth quarter of 2016. Full year 2017 gross profit is estimated to
be in the $46.4 to $48.4 million range, or 19.1%-19.7% as a percent
of full year net sales, compared to $38.1
million in 2016, or an increase of 22% to 27%. Excluding the
impact of Ganzhou Highpower, fourth quarter 2017 gross profit is
estimated to be in the range of $10.3
to $11.0 million, or 16.5%-17.5% as a
percent of net sales. Full year 2017 gross profit is estimated to
be in the range of $43.1 to
$45.0 million, or 20%-21% as a
percent of full year net sales.
Income before taxes in the fourth quarter is estimated to
be in the $6.7 to $7.5 million range, a 210% to 250% increase from
$2.1 million in the same quarter of
2016. Full year 2017 income before taxes is estimated to be in the
$21.0 to $22.0
million range, a 190% to 210% increase from $7.1 million for the year ended December 31, 2016.
Mr. George Pan, Chairman and CEO
of Highpower International, commented, "We are pleased to report
top-line performance that beats guidance. We continue to make
progress with our R&D efforts to strengthen our product
offering, improving our production capacity and efficiency, and
maintaining an efficient supply chain. We've seen an unprecedented
expansion in the number of electrical products available to
customers in recent years, not only among public consumers, but
also among companies and governments worldwide resulting in a surge
in global energy demand and solutions. We are living in a digital
age where power is central to the functioning of our homes and
jobs. At Highpower, we will continue providing cleaner, safer and
more efficient power solutions to meet society's needs."
The Company's financial statements for the year ended
December 31, 2017, are not finalized
until they are filed in its Annual Report on Form 10-K for the year
ended December 31, 2017. The Company
is required to consider all available information through the
finalization of its financial statements and the possible impact of
such information on its financial condition and results of
operations for the reporting period, including the impact of such
information on the complex and subjective judgments and estimates
made in preparing certain of the preliminary information included
in this press release. Subsequent information or events may lead to
material differences between the preliminary results of operations
described in this press release and the results of operations that
will be described in the Company's subsequent earnings release and
between such subsequent earnings release and the results of
operations described in the Company's Annual Report on Form 10-K
for the year ended December 31, 2017.
Those differences may be adverse. Readers should consider this
possibility in reviewing the earnings information in this press
release.
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.
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 statements about expected net sales, gross profit and
net income for the fourth quarter and year ended 2017. 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, that the results are
preliminary and unaudited, have not been reviewed by external
auditors and are subject to completion and, as such, may be revised
as a result of management's further review of the Company's
results; that there can be no assurance that the Company's final
results for the period will not differ from these estimates; that
any changes could be material; the Company may identify items that
may require it to make material adjustments to the preliminary
financial information; and other developments that may arise
between now and the time the financial results are finalized. For a
discussion of 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
Chief Financial Officer
Tel: +86-755-8968-6521
Email: ir@highpowertech.com
Yuanmei Ma
Investor Relations Manager
Tel: +1-909-214-2482
Email: ir@highpowertech.com
ICR, Inc.
Rose Zu
Tel: +1-646-931-0303
Email: ir@highpowertech.com
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SOURCE Highpower International, Inc.