SAN DIEGO and SHENZHEN, China, May 5,
2017 /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 that its wholly-owned
subsidiary, Huizhou Highpower Technology Co., Ltd ("Huizhou
Highpower"), has entered into an equity transfer and capital
increase agreement ("Agreement") whereby Huizhou Highpower will
sell most of its shares of Huizhou Yipeng Energy Technology Co.,
Ltd. ("Yipeng"), 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, to Xiamen Jiupai Yuanjiang New Power
Equity Investment Partnership ("New Power") for an aggregate
consideration of RMB71.0 million
(approximately $10.3 million).
Pursuant to the terms of the Agreement, the Company will receive
RMB71.0 million (approximately
$10.3 million) in cash for the
transfer of 29.58% of equity of Yipeng. In connection with the
transfer, the Company will also receive approximately RMB50 million (approximately $7.3 million) in outstanding accounts receivable
due from Yipeng. To date, the Company has invested a total of
approximately RMB65 million
(approximately $9.4 million,
including $6.5 million in equipment)
in Yipeng. New Power will also make an additional equity investment
of RMB60 million (approximately
$8.7 million) in Yipeng based on
Yipeng's post valuation of RMB300
million (approximately $43.6
million). As a result of the equity transfer and New Power's
additional investment, Huizhou Highpower's equity ownership of
Yipeng will decrease from 35.4% to 4.654%.
Highpower's potential benefits from the transaction include:
- Approximately RMB20 million
(approximately $2.9 million) of
potential investment income from 2016;
- Approximately RMB45 million
(approximately $6.5 million) of
investment in equipment will be returned in cash;
- Yipeng will pay to Huizhou Highpower approximately
RMB50 million (approximately
$7.3 million) related to outstanding
accounts receivable; and
- With the cash received from the transaction, Highpower plans to
invest more capital in R&D as well as additional production
capacity for batteries, including
power cells for electric vehicles.
Mr. George Pan, Chairman and CEO
of Highpower International, commented, "We are pleased to have
entered into an agreement to transfer our equity interest in Yipeng
to New Power. Highpower's competitive edge lies in our cell
technology and manufacturing capabilities, and we are deeply
focused on strengthening our core cell business including Ni-MH and
Li-ion batteries. Power solutions are becoming the main bottleneck
of the rapidly developing EV and energy storage devices, and cells are the core focal point for
emerging power solutions. We believe we are well positioned to capture the opportunities
associated with the growing demand for high-quality cells, which we
consider to be our principal strength."
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 sale of the Yipeng shares and intended use
of the proceeds from such sale. 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, risks and uncertainties associated with the
satisfaction of customary closing conditions related to the sale;
changes in the Company's business and growth strategies; ability to
use the proceeds as anticipated; changes in the laws of the PRC
that affect our operations; the devaluation of the U.S. Dollar
relative to the Renminbi; ability to continue R&D development
to keep up with technological changes; changes in foreign,
political, social, business and economic conditions that affect our
production capabilities or demand for our products . 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.
Jessie Fan
Tel: +1-646-931-0303
Email: ir@highpowertech.com
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SOURCE Highpower International, Inc.