Company to Hold Conference Call on
March 28, 2017 at 10:00 a.m. Eastern Time / 7:00a.m. Pacific Time
SAN FRANCISCO and SHENZHEN, China, March
28, 2017 /PRNewswire/ -- Highpower International, Inc.
(NASDAQ: HPJ), a developer, manufacturer, and
marketer of lithium and nickel-metal hydride (Ni-MH) rechargeable
batteries, battery management systems, and a provider of battery
recycling, announced today its financial results for the fourth
quarter and year-ended December 31,
2016.
Fiscal Year 2016 Operating and Financial Highlights (all
results are compared to prior year period)
- Net sales increased 18.9% to $173.9 from $146.2
million.
- Lithium battery net sales increased 42.6% to $112.1 from $78.6
million.
- Gross margin was 21.9%, compared to 19.1%.
- EBITDA was $13.8 million, a 30.2%
increase from $10.6 million; Adjusted
EBITDA was $14.0 million compared to
$10.3 million.
- Net income attributable to the Company increased 58.7% to
$6.1 million, or $0.40 per diluted share, compared to $3.9 million, or $0.25 per diluted share. Non-GAAP net income
attributable to the Company was to $6.3
million, or $0.42 per diluted
share, compared to $3.6 million, or
$0.23 per diluted share for the prior
year period.
- Started providing lithium polymer batteries to DJI, a globally
recognized manufacturer of commercial and recreational unmanned
aerial vehicles, or drones.
- Shipped its 1000Wh portable power station products (PPS) to
Fry's Electronics.
- Expanded into the electric vehicles market through equity
purchase of Huizhou Yipeng Energy Technology Co., Ltd., an electric
vehicle power battery system solutions provider specializing in the
plug-in hybrid electric vehicle (PHEV) and electric vehicle (EV)
bus market in China, acquiring a
35.4% equity interest stake.
Fiscal 2016 Fourth Quarter Operating and Financial Highlights
(all results are compared to prior year period)
- Net sales increased 43.0% to $53.9
million from $37.9 million,
primarily due to increased revenue contributions from the lithium
batteries as a result of the increased battery sales into the
electric bus and high end consumer electronic device markets.
- Gross margin was 20.2%, an increase from 17.5%.
- Net income attributable to the Company was $1.8 million, or $0.12 per diluted share, compared to $166,971, or $0.01
per diluted share
Recent Event:
- The Company announced that it has decided not to move forward
on the previously announced non-binding Cooperation Framework
Agreement entered into on August 30,
2016 by the Company's subsidiary, Hong Kong Highpower
Technology Co. Ltd., entered into a
with Anshan Co-operation (Group) Co., Ltd. ("ACOC"). Under this
agreement, ACOC had proposed to purchase newly issued shares of SZ
Highpower, SZSpringpower and ICON for RMB540
million (approximately $81.0
million), which would have been paid directly to the
subsidiaries resulting in ACOC holding more than 50% in each PRC
subsidiary.
Management Commentary
Mr. George Pan, Chairman and CEO
of Highpower International, commented, "We were pleased to deliver
exceptional operating results for fiscal 2016. This growth was
driven by double digit growth of our lithium battery business due
to the rapid increase in demand for electric vehicles,
mobile/portable and power storage system products both in
China and worldwide. In 2016,
Highpower was very proactive in regional expansion through a series
of marketing initiatives across China, and domestic sales taking up a larger
share of our revenue percentage. We continue to focus on enhancing
our battery technology while adapting to this rapidly evolving
market."
Fiscal 2016 Fourth Quarter and Year-end Financial
Review
Net Sales
Net sales for the fourth quarter ended December 31, 2016 increased 43.0% to $53.9 million from $37.9
million in the same period in 2015. The increase in net
sales was mainly due to growth in revenue contributions from the
lithium batteries segment as a result of the increased battery
sales into the electric vehicles, smart wearable devices, digital
products and handheld devices markets.
Net sales for the fiscal year 2016 ended December 31, 2016 increased 18.9% to $173.9 million, compared to $146.2 million for the prior year period. This
was due to a $33.5 million increase
in net sales of the lithium batteries offset by a 20.7% decrease in
the average selling price of such batteries.
Gross Profit
For the fourth quarter ended December 31,
2016, the Company's gross profit was $10.9 million, compared to $6.6 million, for the prior year period. This was
primarily due to the increase in sales volume of our lithium
batteries.
For the fiscal year 2016 ended December
31, 2016, the Company's gross profit was $38.1 million, compared to $27.9 million for the same period in 2015. The
increase was due to the sales increase, reduction in the material
purchase cost for the lithium and Ni-MH batteries and improvement
in labor efficiency.
Gross Margin
Gross margin was 20.2% for the fourth quarter ended December 31, 2016, compared to 17.5% in the prior
year period.
Gross margin for the 2016 ended December
31, 2016 was 21.9%, compared to 19.1% for the prior year
period.
Research and Development (R&D)
Research and development expenses were $2.6 million, or 4.7% of net sales, for the
fourth quarter ended December 31,
2016, compared to $2.0
million, 5.3% of net sales for the same period in 2015.
For the year ended December 31,
2016, R&D expenses were $9.2
million, or 5.3% of net sales, compared to $7.6 million, or 5.2% of net sales, for the same
period in 2015. The increase was primarily due to the acceleration
of research and development in lithium battery technologies.
Selling & Distribution
Selling and distribution expenses were $1.9 million, or 3.5% of net sales, for the
fourth quarter ended December 31,
2016, compared to $1.6
million, or 4.2% of net sales, for the same period in
2015.
For the year ended December 31,
2016, selling and distribution expenses were $6.9 million, or 4.0% of the net sales, compared
to $6.7 million, or 4.6% of net
sales, for the same period in 2015. The decrease was due to the
optimization of the Company's customer base.
General & Administrative
General and administrative expenses were $5.9 million, or 11.0% of net sales, for the
fourth quarter ended December 31,
2016, compared to $3.2
million, or 8.4% of net sales, for the same period in
2015.
For the year ended December 31,
2016, general and administrative expenses were $18.2 million, or 10.5% of net sales, compared to
$12.9 million, or 8.8% of net sales,
for the same period in 2015. The increase was primarily due to
salary and performance bonuses awarded to employees, impairment
loss of machinery and equipment and allowance for doubtful accounts
of $0.7 million, $0.5 million and $1.6
million, respectively.
Net Income
For the fourth quarter of 2016, net income attributable to the
Company was $1.8 million, or
$0.12 per diluted share based on 15.2
million weighted average diluted shares outstanding, compared to
net income of $166,971, or
$0.01 per diluted share based on 15.2
million weighted average diluted shares outstanding. Non-GAAP net
income attributable the Company was $1.81
million, or $0.12 per diluted
share, compared to a non-GAAP net income attributable to the
Company of $0.30 million, or
$0.02 per diluted share, in the prior
year period.
For the year ended December 31,
2016, net income attributable to the Company was
$6.1 million, or $0.40 per diluted share based on 15.1 million
weighted average diluted shares outstanding, compared to net income
of $3.9 million, or $0.25 per diluted share based on 15.3 million
weighted average diluted shares outstanding. Non-GAAP net income
attributable to the Company was $6.3
million, or $0.42 per diluted
share, compared to a non-GAAP net income attributable to the
Company of $3.6 million, or
$0.23 per diluted share, in the prior
year period.
A table reconciling non-GAAP net income attributable to the
Company, a non-GAAP (Generally Accepted Accounting Principles)
financial measure, to the appropriate GAAP measure is included with
the Company's financial information below
EBITDA
EBITDA for the fourth quarter ended December 31, 2016 was $3.6
million, compared to $1.9
million in the prior year period.
For the fiscal year 2016 ended December
31, 2016, EBITDA was $13.8
million, compared to $10.6
million, in the prior year period.
A table reconciling EBITDA, a non-GAAP financial measure, to the
appropriate GAAP measure is included with the Company's financial
information below.
Revenue Break-down By PRC and Continents:
|
For the years
ended December 31,
|
|
2016
|
|
2015
|
|
$
|
|
$
|
Net
sales
|
|
|
|
China
mainland
|
101,459,371
|
|
68,201,408
|
Asia,
others
|
43,764,963
|
|
43,547,384
|
Europe
|
17,958,060
|
|
26,101,398
|
North
America
|
9,371,838
|
|
7,450,898
|
South
America
|
759,472
|
|
499,669
|
Africa
|
284,692
|
|
190,489
|
Others
|
252,717
|
|
189,765
|
|
173,851,113
|
|
146,181,011
|
Balance Sheet
Highlights
|
|
|
|
|
($ in millions,
except per share data)
|
|
December
31,
|
|
December
31,
|
2016
|
|
2015
|
|
|
|
|
|
|
|
$
|
|
$
|
Cash and Cash
Equivalents
|
|
$9.3
|
|
$5.8
|
Total Current
Assets
|
|
$104.5
|
|
$80.7
|
Total
Assets
|
|
$163.3
|
|
$134.2
|
|
|
|
|
|
Total Current
Liabilities
|
|
$118.0
|
|
$91.2
|
Total
Liabilities
|
|
$118.0
|
|
$91.3
|
Shareholders'
Equity
|
|
$45.3
|
|
$42.9
|
Total Liabilities and
Shareholders' Equity
|
|
$163.3
|
|
$134.2
|
Book Value Per
Share
|
|
$3.00
|
|
$2.84
|
Conference Call
Details
|
Date /
Time:
|
Tuesday, March 28,
2017 at 10:00 a.m. ET / 7:00 a.m. PT
|
Participant Dial-In
Numbers
|
|
(United
States):
|
877-407-3108
|
(International):
|
201-493-6797
|
Webcast
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/q4-2016. This webcast
will be archived and accessible through the Company's website for
approximately 30 days following the 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 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.
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; and 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.
Sunny Pan
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
|
(Stated in US
Dollars)
|
|
|
|
For three
months December 31,
|
|
For the year
ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
53,878,832
|
|
37,850,736
|
|
173,851,113
|
|
146,181,011
|
Cost of
sales
|
|
(42,984,167)
|
|
(31,240,809)
|
|
(135,768,642)
|
|
(118,234,935)
|
Gross
profit
|
|
10,894,665
|
|
6,609,927
|
|
38,082,471
|
|
27,946,076
|
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
(2,555,353)
|
|
(1,995,873)
|
|
(9,243,750)
|
|
(7,631,181)
|
Selling and
distribution expenses
|
|
(1,932,344)
|
|
(1,620,103)
|
|
(6,888,052)
|
|
(6,728,692)
|
General and
administrative expenses
|
|
(5,931,842)
|
|
(3,151,313)
|
|
(18,186,362)
|
|
(12,895,649)
|
Foreign currency
transaction gain
|
|
1,322,427
|
|
571,934
|
|
1,959,036
|
|
2,474,154
|
Total operating
expenses
|
|
(9,097,112)
|
|
(6,195,355)
|
|
(32,359,128)
|
|
(24,781,368)
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
1,797,553
|
|
414,572
|
|
5,723,343
|
|
3,164,708
|
|
|
|
|
|
|
|
|
|
Gain (loss) on change
of fair value of warrant
liability
|
|
24,894
|
|
(14,560)
|
|
140,290
|
|
927,125
|
Other
income
|
|
553,725
|
|
447,273
|
|
2,271,528
|
|
1,189,324
|
Equity in earnings of
investee
|
|
132,852
|
|
-
|
|
351,755
|
|
-
|
Interest
expenses
|
|
(368,048)
|
|
(211,470)
|
|
(1,419,962)
|
|
(1,002,151)
|
Income before
taxes
|
|
2,140,976
|
|
635,815
|
|
7,066,954
|
|
4,279,006
|
|
|
|
|
|
|
|
|
|
Income taxes
expenses
|
|
(460,295)
|
|
(624,530)
|
|
(1,439,177)
|
|
(818,736)
|
Net
income
|
|
1,680,681
|
|
11,285
|
|
5,627,777
|
|
3,460,270
|
|
|
|
|
|
|
|
|
|
Less: net loss
attributable to non-controlling
interest
|
|
(76,766)
|
|
(155,686)
|
|
(490,150)
|
|
(393,812)
|
Net income
attributable to the Company
|
|
1,757,447
|
|
166,971
|
|
6,117,927
|
|
3,854,082
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
Net income
|
|
1,680,681
|
|
11,285
|
|
5,627,777
|
|
3,460,270
|
Foreign currency
translation loss
|
|
(1,997,630)
|
|
(1,032,199)
|
|
(3,540,334)
|
|
(3,055,839)
|
Comprehensive
(loss) income
|
|
(316,949)
|
|
(1,020,914)
|
|
2,087,443
|
|
404,431
|
|
|
|
|
|
|
|
|
|
Less: comprehensive
loss attributable to
non-controlling interest
|
|
(94,427)
|
|
(175,530)
|
|
(524,140)
|
|
(453,756)
|
Comprehensive (loss)
income attributable to the
Company
|
|
(222,521)
|
|
(845,384)
|
|
2,611,583
|
|
858,187
|
|
|
|
|
|
|
|
|
|
Income per share of
common stock attributable to
the Company
|
|
|
|
|
|
|
|
|
- Basic
|
|
0.12
|
|
0.01
|
|
0.41
|
|
0.26
|
- Diluted
|
|
0.12
|
|
0.01
|
|
0.40
|
|
0.25
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common stock
outstanding
|
|
|
|
|
|
|
|
|
- Basic
|
|
15,111,335
|
|
15,101,679
|
|
15,105,235
|
|
15,096,166
|
- Diluted
|
|
15,159,563
|
|
15,153,745
|
|
15,113,914
|
|
15,286,196
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(Stated in US
Dollars except Number of Shares)
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
|
|
|
$
|
|
$
|
ASSETS
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash
|
|
|
9,324,393
|
|
5,849,967
|
|
Restricted
cash
|
|
|
11,213,640
|
|
11,656,204
|
|
Accounts receivable,
net
|
|
|
46,280,769
|
|
36,139,866
|
|
Amount due from
Yipeng
|
|
|
7,517,250
|
|
-
|
|
Notes
receivable
|
|
|
1,093,730
|
|
1,757,709
|
|
Prepayments and other
receivables
|
|
|
6,899,872
|
|
6,060,904
|
|
Inventories
|
|
|
22,207,333
|
|
19,218,331
|
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
|
104,536,987
|
|
80,682,981
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
43,504,991
|
|
47,464,186
|
|
Land use right,
net
|
|
|
3,622,435
|
|
3,963,003
|
|
Other
assets
|
|
|
500,000
|
|
550,000
|
|
Deferred tax
assets
|
|
|
1,477,761
|
|
1,544,314
|
|
Long-term
investment
|
|
|
9,689,576
|
|
-
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
163,331,750
|
|
134,204,484
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
|
49,463,901
|
|
36,077,396
|
|
Deferred
income
|
|
|
761,491
|
|
879,944
|
|
Short-term
loan
|
|
|
18,776,080
|
|
13,839,341
|
|
Non-financial
institution borrowings
|
|
|
3,741,115
|
|
-
|
|
Notes
payable
|
|
|
30,658,000
|
|
30,490,166
|
|
Amount due to
Yipeng
|
|
|
1,522,313
|
|
-
|
|
Other payables and
accrued liabilities
|
|
|
11,148,556
|
|
6,292,492
|
|
Income taxes
payable
|
|
|
1,963,298
|
|
1,783,013
|
|
Current portion of
long-term loan
|
|
|
-
|
|
1,845,245
|
|
Total Current
Liabilities
|
|
|
118,034,754
|
|
91,207,597
|
|
Warrant
Liability
|
|
|
259
|
|
140,549
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
|
118,035,013
|
|
91,348,146
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
-
|
|
-
|
|
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, 15,114,991 shares issued and
outstanding at December 31, 2016and 15,101,679 shares issued and
outstanding at
December 31, 2015)
|
|
|
1,511
|
|
1,510
|
|
|
Additional paid-in
capital
|
|
|
11,580,934
|
|
11,227,979
|
|
|
Statutory and other
reserves
|
|
|
4,992,463
|
|
4,042,429
|
|
|
Retained
earnings
|
|
|
29,266,068
|
|
24,098,175
|
|
|
Accumulated other
comprehensive income
|
|
|
(873,582)
|
|
2,632,762
|
|
|
|
|
|
|
|
|
Total equity
attributable to the stockholders of Highpower International
Inc.
|
|
|
44,967,394
|
|
42,002,855
|
|
Non-controlling
interest
|
|
|
329,343
|
|
853,483
|
|
TOTAL
EQUITY
|
|
|
45,296,737
|
|
42,856,338
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
|
163,331,750
|
|
134,204,484
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Stated in US
Dollars)
|
|
|
|
|
|
For the years
ended December 31,
|
|
2016
|
|
2015
|
|
$
|
|
$
|
Cash flows from
operating activities
|
|
|
|
Net income
|
5,627,777
|
|
3,460,270
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
4,937,688
|
|
4,939,882
|
Allowance for doubtful
accounts
|
1,651,546
|
|
949
|
Impairment of
machinery and equipment
|
530,914
|
|
-
|
Loss on disposal of
property, plant and equipment
|
609,842
|
|
233,296
|
Deferred income
tax
|
(32,756)
|
|
9,107
|
Equity in earnings of
investee
|
(351,755)
|
|
-
|
Share based
compensation
|
317,946
|
|
653,017
|
Gain on change of fair
value of warrant liability
|
(140,290)
|
|
(927,125)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(13,809,278)
|
|
(5,446,752)
|
Notes
receivable
|
575,514
|
|
(1,222,793)
|
Prepayments and other
receivables
|
(1,755,589)
|
|
(2,435,316)
|
Amount due from
Yipeng
|
(7,457,338)
|
|
-
|
Amount due to
Yipeng
|
1,589,963
|
|
-
|
Inventories
|
(4,410,429)
|
|
1,831,737
|
Accounts
payable
|
11,196,709
|
|
(3,322,054)
|
Deferred
income
|
(64,658)
|
|
1,890,332
|
Other payables and
accrued liabilities
|
5,471,022
|
|
755,757
|
Income taxes
payable
|
307,984
|
|
(74,111)
|
Net cash flows
provided by operating activities
|
4,794,812
|
|
346,196
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisition of plant
and equipment
|
(8,487,473)
|
|
(11,256,553)
|
Long-term
investment
|
(3,005,666)
|
|
-
|
Net cash flows
used in investing activities
|
(11,493,139)
|
|
(11,256,553)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
short-term bank loans
|
19,611,969
|
|
14,430,014
|
Repayment of
short-term bank loans
|
(13,526,998)
|
|
(13,438,449)
|
Proceeds from
non-financial institution borrowings
|
4,508,499
|
|
-
|
Repayment of
non-financial institution borrowings
|
(601,133)
|
|
-
|
Repayment of long-term
bank loans
|
(1,803,399)
|
|
(1,924,002)
|
Proceeds from notes
payables
|
59,952,794
|
|
63,544,496
|
Repayment of notes
payables
|
(57,731,108)
|
|
(61,118,292)
|
Proceeds from exercise
of employee options
|
35,010
|
|
44,534
|
Change in restricted
cash
|
(320,093)
|
|
2,966,205
|
Net cash flows
provided by financing activities
|
10,125,541
|
|
4,504,506
|
Effect of foreign
currency translation on cash
|
47,212
|
|
(2,356,074)
|
Net increase
(decrease)in cash
|
3,474,426
|
|
(8,761,925)
|
Cash - beginning of
year
|
5,849,967
|
|
14,611,892
|
Cash - end of
year
|
9,324,393
|
|
5,849,967
|
|
|
|
|
Supplemental
disclosures for cash flow information:
|
|
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
1,163,950
|
|
883,740
|
Interest
expenses
|
1,229,173
|
|
1,002,151
|
Non-cash
transactions
|
|
|
|
Offset of deferred
income related to government grant and property, plant and
equipment
|
229,951
|
|
2,547,545
|
Long-term investment
with capital injection by equipment
|
7,156,717
|
|
-
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATION
OF
|
NON-GAAP FINANCIAL
MEASURES (Unaudited)
|
(Stated in US
Dollars)
|
|
Reconciliation of
Net Income to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For three
months ended December 31,
|
|
For the year
ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Net income
attributable to the Company
|
1,757,447
|
|
166,971
|
|
6,117,927
|
|
3,854,082
|
Non-GAAP Net
Income(1)
|
|
1,806,357
|
|
298,787
|
|
6,295,583
|
|
3,579,974
|
|
|
|
|
|
|
|
|
|
Interest
expenses
|
|
368,048
|
|
211,470
|
|
1,419,962
|
|
1,002,151
|
Income taxes
expenses
|
|
460,295
|
|
624,530
|
|
1,439,177
|
|
818,736
|
Depreciation and
Amortization
|
|
1,062,615
|
|
901,286
|
|
4,797,968
|
|
4,939,882
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
3,648,405
|
|
1,904,257
|
|
13,775,034
|
|
10,614,851
|
Non-GAAP
EBITDA(2)
|
|
3,697,315
|
|
2,036,073
|
|
13,952,690
|
|
10,340,743
|
|
(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 (loss) gain on change of fair
value of warrant liability 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For three
months ended December 31,
|
|
For the year
ended December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Net income
attributable to the Company
|
|
1,757,447
|
|
166,971
|
|
6,117,927
|
|
3,854,082
|
Stock-based
compensation expense
|
|
73,804
|
|
117,256
|
|
317,946
|
|
653,017
|
Gain (loss) on change
of fair value of warrant liability
|
|
(24,894)
|
|
14,560
|
|
(140,290)
|
|
(927,125)
|
Non-GAAP net income
attributable to the Company
|
|
1,806,357
|
|
298,787
|
|
6,295,583
|
|
3,579,974
|
|
|
|
|
|
|
|
|
|
Basic net income per
share of common stock attributable to
the Company
|
|
0.12
|
|
0.01
|
|
0.41
|
|
0.26
|
Stock-based
compensation expense
|
|
0.00
|
|
0.01
|
|
0.02
|
|
0.04
|
Gain (loss) on change
of fair value of warrant liability
|
|
0.00
|
|
0.00
|
|
(0.01)
|
|
(0.06)
|
Non-GAAP income per
share of common stock attributable to
the Company
|
|
0.12
|
|
0.02
|
|
0.42
|
|
0.24
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share of common stock attributable
to the Company
|
|
0.12
|
|
0.01
|
|
0.40
|
|
0.25
|
Stock-based
compensation expense
|
|
0.00
|
|
0.01
|
|
0.03
|
|
0.04
|
Gain (loss) on change
of fair value of warrant liability
|
|
0.00
|
|
0.00
|
|
(0.01)
|
|
(0.06)
|
Non-GAAP income per
share of common stock attributable to
the Company
|
|
0.12
|
|
0.02
|
|
0.42
|
|
0.23
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
- Basic
|
|
15,111,335
|
|
15,101,679
|
|
15,105,235
|
|
15,096,166
|
- Diluted
|
|
15,159,563
|
|
15,153,745
|
|
15,113,914
|
|
15,286,196
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/highpower-international-reports-record-financial-results-for-the-fourth-quarter-and-year-end-december-31-2016-300430277.html
SOURCE Highpower International, Inc.