SAN DIEGO and SHENZHEN, China, April
2, 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 unaudited financial results for the fourth
quarter and year ended December 31,
2017.
Fourth Quarter 2017 Highlights (all results compared to prior
year period)
- Net sales for the fourth quarter of 2017 increased by 47.0% to
$79.2 million from $53.9 million.
- Gross profit for the fourth quarter of 2017 increased by 8.4%
to $11.8 million from $10.9 million.
- EBITDA for the fourth quarter of 2017 increased by 136.5% to
$9.0 million from $3.8 million.
- Net income attributable to the Company for the fourth quarter
of 2017 was $4.8 million, or
$0.31 per diluted share, as compared
to $1.8 million, or $0.12 per diluted share.
Full Year 2017 Highlights (all results compared to prior year
period)
- Net sales increased 40.4% to $244.2
million from $173.9 million.
Excluding the impact of Ganzhou Highpower Technology Co., Ltd. ("GZ
Highpower"), net sales increased 27.2% to $215.9 million from $169.7
million.
- Lithium Business net sales increased 44.2% to $161.7 million from $112.1
million.
- Gross margin was 19.4% compared to 21.9%. Excluding GZ
Highpower, gross margin was 20.4% compared to 22.7%.
- EBITDA was $27.8 million, a 99.8%
increase from $13.9 million.
Excluding GZ Highpower, EBITDA was $25.8
million compared to $15.0
million.
- Net income attributable to the Company increased 174.2% to
$16.8 million, or $1.09 per diluted share, compared to $6.1 million, or $0.40 per diluted share. Excluding GZ Highpower,
net income increased 116.8% to $15.7
million compared to $7.3
million.
Recent Event
- On December 15, 2017, the Company
announced the investment of $14.3
million in its majority-owned subsidiary GZ Highpower from
Xiamen Tungsten Co., Ltd. ("Xiamen Tungsten") and Mr. Ou, the
General Manager of GZ Highpower, for a total of $12.1 million and $2.2
million, respectively. This transaction closed on
December 21, 2017, and the Company's
ownership of GZ Highpower decreased to 31.3%. Due to the loss of
controlling power in GZ Highpower, the Company deconsolidated GZ
Highpower accordingly. Key financial items excluding GZ Highpower
are presented on an annual basis for comparison purposes.
Mr. George Pan, Chairman and CEO
of Highpower International, commented, "We are pleased to report
top-line performance that beat our guidance for both the fourth
quarter and full year 2017. In addition, our bottom line, including
EBITDA, grew significantly for both the fourth quarter and full
year, thanks to continued progress in our efforts to strengthen our
product offering, improve our production capacity and efficiency,
and maintain an efficient supply chain."
Mr. Pan continued, "We are living in a digital age where power
is central to the functioning of our homes and jobs. We have 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. Due to
this high demand, we expect continued high prices for raw materials
such as cobalt in 2018, and we will endeavor to combat its effect
on margins by improving production efficiency, maintaining proper
inventory buildup, and hedging. We will continue to invest more on
R&D, further improve the product safety and reliability, which
are essential and critical to end users, especially in the age of
artificial intelligence. With such improvement, we will further
strengthen our core competitiveness which will partially offset the
negative impact from raw material price increasing."
"To drive our growth in the year ahead, we will continue to
focus on our core lithium ion battery products. We are setting up a
new production workshop in our Huizhou facility, which is expected to reach a
target daily production volume of 100,000 pieces by the second
quarter of 2018. In addition, a new building in Huizhou facility will be completed by
May 2019 to further expand our
production capacity to fulfill increasing international brand
customer demand."
"With our top-tier customer base and strong branding, we are
optimistic about our growth in 2018 and beyond. At Highpower, we
remain committed to providing clean, safe, and efficient power
solutions to meet society's needs," Mr. Pan concluded.
Fourth Quarter and Full Year 2017 Financial Results
Net Sales
Net sales for the fourth quarter of 2017 increased by 47.0% to
$79.2 million from $53.9 million in the prior year period, primarily
attributable to growth in revenue from the Lithium segment. This
was driven by continued increasing demand for consumer electronics,
including portable power stations, smart wearable devices, smart
phones, and notebooks.
Net sales increased 40.4% to $244.2
million for the year ended December
31, 2017 as compared to $173.9
million in 2016. The increase was driven by growth in the
Lithium segment as well as growth in the GZ Highpower business.
Excluding GZ Highpower, net sales increased 27.2% to $215.9 million from $169.7
million.
Gross Profit
Gross profit for the fourth quarter of 2017 increased by 8.4% to
$11.8 million from $10.9 million in the prior year period. Gross
margin for the fourth quarter of 2017 decreased to 14.9% from 20.2%
in the prior year period due to continued high raw material prices
and the expiration during the third quarter of some actions taken
to offset the price fluctuations. There was also a substantial
increase in the new materials business segment, which has a lower
gross profit margin.
Gross profit for the year increased 24.4% to $47.4 million from $38.1
million in prior year period. Gross margin was 19.4% and
21.9% for full-year 2017 and 2016, respectively. The decrease in
margin was primarily due to high raw material prices. Excluding GZ
Highpower, gross profit for 2017 increased 14.5% to $44.0 million from $38.5
million and gross margin was 20.4% compared to 22.7%.
Operating Expenses
- Research and development (R&D) expenses for
the fourth quarter of 2017 were $3.1
million as compared to $2.6
million in the prior year period. As a percentage of net
sales, R&D expenses declined to 3.9% from 4.7% in the prior
year period. The Company will continue to invest in R&D
activities in the future.
Research and development expenses were $9.5
million, or 3.9% of net sales, for 2017 as compared to
$9.2 million, or 5.3% of net sales,
in 2016.
- Selling and distribution expenses for the fourth
quarter of 2017 were $2.3 million
compared to $1.9 million in 2016. As
a percentage of net sales, selling and distribution expenses
decreased to 2.9% from 3.6% in the prior year period, primarily
attributable to the Company's customer base optimization
efforts.
Selling and distribution expenses were
$7.5 million, or 3.1% of net sales,
for 2017 as compared with $6.9
million, or 4.0% of net sales, in 2016.
- General and administrative expenses for the
fourth quarter of 2017 were $5.4
million as compared to $5.9
million in the prior year period. As a percentage of net
sales, general and administrative expenses decreased to 6.8% from
11.0% in the prior year period.
General and
administrative expenses were $15.4
million, or 6.3% of net sales, in 2017 as compared with
$18.2 million, or 10.4% of net sales,
in the prior year.
Net Income
Net income attributable to the Company for the fourth quarter of
2017 increased to $4.8 million from
$1.8 million in the prior year
period. Net income attributable to the Company per diluted share
for the fourth quarter of 2017 increased to $0.31 from $0.12 in
the prior year period.
For the quarters ended December 31, 2017 and 2016, the
Company's weighted average diluted shares outstanding used in
computing diluted shares was and 15,648,888 and 15,159,563,
respectively.
Net income attributable to the Company for the full year 2017
increased to $16.8 million from
$6.1 million in the prior year
period. Net income attributable to the Company per diluted share
for the full year increased to $1.09
from $0.40 in the prior year period.
Excluding GZ Highpower, net income for the full year of 2017 and
2016 was $15.7 million and
$7.3 million, respectively.
For the years ended December 31,
2017 and 2016, the Company's weighted average diluted shares
outstanding used in computing diluted share was 15,435,371 and
15,113,914, respectively.
EBITDA
EBITDA for the fourth quarter of 2017 increased by 136.5% to
$9.0 million from $3.8 million in the prior year period. EBITDA for
the full year of 2017 increased by 99.8% to $27.8 million from $13.9
million in the prior year period. Excluding GZ Highpower,
EBITDA was $25.8 million for the full
year compared to $15.0 million in
2016.
A table reconciling EBITDA, a non-GAAP financial measure, to the
appropriate GAAP measure is included with the Company's financial
information below.
Revenue Breakdown by Geography:
|
For the years
ended December 31,
|
|
2017
|
|
2016
|
|
$
|
|
$
|
Net
sales
|
|
|
|
China
mainland
|
139,096,630
|
|
101,459,371
|
Asia,
others
|
81,060,414
|
|
43,764,963
|
Europe
|
18,684,852
|
|
17,958,060
|
North
America
|
4,769,797
|
|
9,371,838
|
South
America
|
269,596
|
|
759,472
|
Africa
|
143,475
|
|
284,692
|
Others
|
141,548
|
|
252,717
|
|
244,166,312
|
|
173,851,113
|
Balance Sheet Highlights
|
December
31,
|
($ in millions,
except per share data)
|
2017
|
|
2016
|
|
$
|
|
$
|
Cash
|
14.5
|
|
9.3
|
Total Current
Assets
|
156.0
|
|
103.3
|
Total
Assets
|
220.3
|
|
163.3
|
|
|
|
|
Total Current
Liabilities
|
152.3
|
|
118.0
|
Total
Liabilities
|
153.1
|
|
118.0
|
Total
Equity
|
67.2
|
|
45.3
|
Total Liabilities and
Equity
|
220.3
|
|
163.3
|
Book Value Per
Share
|
4.33
|
|
3.00
|
Financial Outlook
For the first quarter of 2018, the Company expects net revenues
to grow over 10% year over year excluding Ganzhou Highpower impact.
Factoring in the impact of expected, continued high raw material
prices, gross margin is expected to be between 15% and 17% due to
lower volume in first quarter by seasonality impact. For the full
year 2018, the Company expects net revenues to grow at least 20%
compared to 2017 and gross margin levels to exceed that of the
fourth quarter of 2017 excluding Ganzhou Highpower impact.
Conference Call Details
The Company will hold a conference call on Monday, April 2, 2018, at 10:00 am Eastern Time or 10:00 pm Beijing Time to discuss the financial
results. Participants may access the call by dialing the following
numbers:
United
States:
|
877-407-3108
|
International:
|
201-493-6797
|
To listen to the live webcast, please go to
www.highpowertech.com and click on the conference call link, or go
to http://highpowertech.equisolvewebcast.com/q4-2017. 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. 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 this non-GAAP
measure is useful to investors as it provides a basis for
evaluating the Company's operating results in the ordinary course
of its operations. This non-GAAP measure is 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. EBITDA are reconciled in the tables
below to the most directly comparable measure 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. Such forward-looking statements include
outlook on net revenues and gross margins, hedging, , production
capacity, research and development efforts, strategic partnerships,
and business and financial expectations and anticipated growth
during 2018. 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,; inability to
successfully expand our production capacity and improve production
efficiency; 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 smart wearable devices and energy storage
systems, and other digital 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
solutions, including our lithium ion batteries; our ability to
successfully manage hedging; 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 Annual Report for the
year ended December 31, 2017 on Form
10-K and other 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: yuanmei@highpowertech.com
ICR, Inc.
Rose Zu
Tel: +1-646-931-0303
Email: ir@highpowertech.com
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(Stated in US
Dollars)
|
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
$
|
|
$
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash
|
14,502,171
|
|
9,324,393
|
|
Restricted
cash
|
25,953,946
|
|
11,213,640
|
|
Accounts receivable,
net
|
58,252,999
|
|
46,280,769
|
|
Amount due from
related parties
|
1,165,838
|
|
7,517,250
|
|
Notes
receivable
|
2,606,517
|
|
1,093,730
|
|
Advances to
suppliers
|
6,050,531
|
|
2,007,184
|
|
Prepayments and other
receivables
|
4,268,527
|
|
3,694,020
|
|
Foreign exchange
derivatives
|
236,436
|
|
-
|
|
Inventories
|
42,946,644
|
|
22,207,333
|
|
|
|
|
|
|
Total Current
Assets
|
155,983,609
|
|
103,338,319
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
46,520,776
|
|
43,504,991
|
|
Long-term
prepayments
|
3,715,445
|
|
1,198,668
|
|
Land use rights,
net
|
2,639,631
|
|
3,622,435
|
|
Other
assets
|
748,431
|
|
500,000
|
|
Deferred tax
assets
|
750,267
|
|
1,477,761
|
|
Long-term
investments
|
9,906,379
|
|
9,689,576
|
|
|
|
|
TOTAL
ASSETS
|
220,264,538
|
|
163,331,750
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
60,368,012
|
|
49,463,901
|
|
Deferred
income
|
309,638
|
|
761,491
|
|
Short-term
loans
|
10,128,646
|
|
18,776,080
|
|
Non-financial
institution borrowings
|
10,756,158
|
|
3,741,115
|
|
Notes
payable
|
54,859,478
|
|
30,658,000
|
|
Amount due to a
related party
|
-
|
|
1,522,313
|
|
Other payables and
accrued liabilities
|
12,243,345
|
|
11,148,556
|
|
Income taxes
payable
|
3,609,391
|
|
1,963,298
|
|
|
|
|
|
|
Total Current
Liabilities
|
152,274,668
|
|
118,034,754
|
|
|
|
|
|
|
Income taxes payable,
noncurrent
|
777,685
|
|
-
|
|
Warrant
Liability
|
-
|
|
259
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
153,052,353
|
|
118,035,013
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
-
|
|
-
|
|
|
|
|
|
|
HIGHPOWER
INTERNATIONAL, INC AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS (CONTINUED)
|
(Stated in US
Dollars)
|
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
$
|
|
$
|
|
|
|
|
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, 15,509,658 shares issued
and outstanding at December 31, 2017 and 15,114,991 shares issued
and
outstanding at December 31, 2016)
|
1,551
|
|
1,511
|
|
Additional paid-in
capital
|
12,709,756
|
|
11,580,934
|
|
Statutory and other
reserves
|
6,549,815
|
|
4,992,463
|
|
Retained
earnings
|
44,481,568
|
|
29,266,068
|
|
Accumulated other
comprehensive income (loss)
|
3,469,495
|
|
(873,582)
|
|
|
|
|
Total equity
attributable to the stockholders of Highpower International
Inc.
|
67,212,185
|
|
44,967,394
|
|
|
|
|
Non-controlling
interest
|
-
|
|
329,343
|
|
|
|
|
TOTAL
EQUITY
|
67,212,185
|
|
45,296,737
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
220,264,538
|
|
163,331,750
|
|
|
|
|
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
|
(Stated in US
Dollars)
|
|
|
For the
years ended December 31,
|
|
2017
|
|
2016
|
|
$
|
|
$
|
Net sales
|
244,166,312
|
|
173,851,113
|
Cost of
sales
|
(196,792,444)
|
|
(135,768,642)
|
Gross
profit
|
47,373,868
|
|
38,082,471
|
|
|
|
|
Research and
development expenses
|
(9,512,074)
|
|
(9,243,750)
|
Selling and
distribution expenses
|
(7,500,560)
|
|
(6,888,052)
|
General and
administrative expenses
|
(15,393,791)
|
|
(18,186,362)
|
Foreign currency
transaction (loss) gain
|
(2,390,417)
|
|
1,959,036
|
Total operating
expenses
|
(34,796,842)
|
|
(32,359,128)
|
|
|
|
|
Income from
operations
|
12,577,026
|
|
5,723,343
|
|
|
|
|
Changes in fair value
of warrant liability
|
259
|
|
140,290
|
Changes in fair value
of foreign exchange derivatives
|
273,496
|
|
-
|
Government
grants
|
1,357,852
|
|
1,762,266
|
Other
income
|
458,247
|
|
509,262
|
Equity in earnings of
investee
|
107,243
|
|
351,755
|
Gain on dilution in
equity method investee
|
500,270
|
|
-
|
Gain on sale of
long-term investment
|
1,677,367
|
|
-
|
Gain on
deconsolidation of a subsidiary
|
6,004,008
|
|
-
|
Interest
expenses
|
(1,426,547)
|
|
(1,419,962)
|
Income before income
taxes
|
21,529,221
|
|
7,066,954
|
|
|
|
|
Income taxes
expenses
|
(4,315,325)
|
|
(1,439,177)
|
Net income
|
17,213,896
|
|
5,627,777
|
|
|
|
|
Less: net income
(loss) attributable to non-controlling interest
|
441,044
|
|
(490,150)
|
Net income
attributable to the Company
|
16,772,852
|
|
6,117,927
|
|
|
|
|
Comprehensive
income
|
|
|
|
Net income
|
17,213,896
|
|
5,627,777
|
Foreign currency
translation gain (loss)
|
4,234,078
|
|
(3,540,334)
|
Comprehensive
income
|
21,447,974
|
|
2,087,443
|
|
|
|
|
Less: comprehensive
income (loss) attributable to non-controlling interest
|
479,098
|
|
(524,140)
|
Comprehensive income
attributable to the Company
|
20,968,876
|
|
2,611,583
|
|
|
|
|
Earnings per share of
common stock attributable to the Company
|
|
|
|
- Basic
|
1.09
|
|
0.41
|
- Diluted
|
1.09
|
|
0.40
|
|
|
|
|
Weighted average
number of common stock outstanding
|
|
|
|
- Basic
|
15,326,797
|
|
15,105,235
|
- Diluted
|
15,435,371
|
|
15,113,914
|
HIGHPOWER
INTERNATIONAL, INC. AND
SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Stated in US
Dollars)
|
|
|
For the years
ended December 31,
|
|
2017
|
|
2016
|
|
$
|
|
$
|
Cash flows from
operating activities
|
|
|
|
Net income
|
17,213,896
|
|
5,627,777
|
Adjustments to
reconcile net income to net cash (used in) provided by
operating
activities:
|
|
|
|
Depreciation and
amortization
|
5,290,980
|
|
4,937,688
|
Allowance for doubtful
accounts
|
58,728
|
|
1,651,546
|
Impairment of
machinery and equipment
|
-
|
|
530,914
|
Loss on disposal of
property, plant and equipment
|
48,976
|
|
609,842
|
Deferred
taxes
|
374,626
|
|
(32,756)
|
Changes in fair value
of foreign exchange derivatives
|
(228,314)
|
|
-
|
Gain on
deconsolidation of a subsidiary
|
(6,004,008)
|
|
-
|
Equity in earnings of
investee
|
(107,243)
|
|
(351,755)
|
Gain on dilution in
equity method investee
|
(500,270)
|
|
-
|
Gain on sale of
long-term investment
|
(1,677,367)
|
|
-
|
Share based
compensation
|
326,171
|
|
317,946
|
Changes in fair value
of warrant liability
|
(259)
|
|
(140,290)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(11,926,311)
|
|
(13,809,278)
|
Other
assets
|
(288,180)
|
|
-
|
Notes
receivable
|
(1,389,107)
|
|
575,514
|
Advances to
suppliers
|
(5,070,174)
|
|
(72,470)
|
Prepayments and other
receivables
|
(673,006)
|
|
(1,683,119)
|
Amount due from
related parties
|
7,140,963
|
|
(7,457,338)
|
Amount due to related
parties
|
(1,569,839)
|
|
1,589,963
|
Inventories
|
(24,705,574)
|
|
(4,410,429)
|
Accounts
payable
|
15,183,933
|
|
11,196,709
|
Deferred
income
|
154,151
|
|
(64,658)
|
Other payables and
accrued liabilities
|
2,023,991
|
|
5,471,022
|
Income taxes
payable
|
2,240,550
|
|
307,984
|
Net cash flows
(used in) provided by operating activities
|
(4,082,687)
|
|
4,794,812
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisitions of plant
and equipment
|
(13,730,328)
|
|
(8,487,473)
|
Acquisition of
long-term investment
|
-
|
|
(3,005,666)
|
Loan to a related
party
|
(514,821)
|
|
-
|
Proceeds from sale of
long-term investment
|
10,535,062
|
|
-
|
Impact to cash
resulting from deconsolidation of a subsidiary
|
(632,754)
|
|
-
|
Net cash flows
used in investing activities
|
(4,342,841)
|
|
(11,493,139)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
short-term bank loans
|
12,725,676
|
|
19,611,969
|
Repayments of
short-term bank loans
|
(22,331,365)
|
|
(13,526,998)
|
Proceeds from
non-financial institution borrowings
|
10,386,681
|
|
4,508,499
|
Repayments of
non-financial institution borrowings
|
(3,857,910)
|
|
(601,133)
|
Repayment of long-term
bank loans
|
-
|
|
(1,803,399)
|
Proceeds from notes
payable
|
90,871,294
|
|
59,952,794
|
Repayments of notes
payable
|
(69,511,376)
|
|
(57,731,108)
|
Proceeds from exercise
of employee options
|
802,691
|
|
35,010
|
Repayment from GZ
Highpower
|
6,035,600
|
|
-
|
Change in restricted
cash
|
(13,498,698)
|
|
(320,093)
|
Net cash flows
provided by financing activities
|
11,622,593
|
|
10,125,541
|
Effect of foreign
currency translation on cash
|
1,980,713
|
|
47,212
|
Net increase in
cash
|
5,177,778
|
|
3,474,426
|
Cash - beginning of
year
|
9,324,393
|
|
5,849,967
|
Cash - end of
year
|
14,502,171
|
|
9,324,393
|
|
|
|
|
Supplemental
disclosures for cash flow information:
|
|
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
1,700,149
|
|
1,163,950
|
Interest
expenses
|
1,550,878
|
|
1,229,173
|
Non-cash investing
and financing activities:
|
|
|
|
Offset of deferred
income related to government grant and property, plant and
equipment
|
263,948
|
|
229,951
|
Transfer of equipment
to Yipeng
|
-
|
|
7,156,717
|
Reconciliation of
Net Income to EBITDA
|
|
For the years
ended December 31,
|
|
2017
|
|
2016
|
|
$
|
|
$
|
Net income
attributable to the Company
|
16,772,852
|
|
6,117,927
|
|
|
|
|
Interest
expense
|
1,426,547
|
|
1,419,962
|
Income taxes
expenses
|
4,315,325
|
|
1,439,177
|
Depreciation and
Amortization
|
5,290,980
|
|
4,937,688
|
|
|
|
|
EBITDA
|
27,805,704
|
|
13,914,754
|
|
|
Key financial
items excluding GZ Highpower
|
|
For the years
ended December 31,
|
|
2017
|
|
2016
|
|
$
|
|
$
|
Sales:
|
|
|
|
Lithium
Business
|
161,660,771
|
|
112,128,757
|
Ni-MH Batteries and
Accessories
|
53,492,309
|
|
57,211,657
|
Sales to GZ
Highpower
|
746,776
|
|
367,982
|
Net sales (excluding
GZ Highpwer)
|
215,899,856
|
|
169,708,396
|
Gross profit
(excluding GZ Highpwer)
|
44,023,549
|
|
38,455,939
|
Gross profit margin
(excluding GZ Highpwer)
|
20.4%
|
|
22.7%
|
|
|
|
|
Net
income:
|
|
|
|
Net income
|
17,213,896
|
|
5,627,777
|
Less: Net income
(loss) of GZ Highpower (including transaction
with GZ Highpwer)
|
1,470,145
|
|
(1,633,834)
|
Net income (excluding
GZ Highpwer)
|
15,743,751
|
|
7,261,611
|
|
December
31, 2017
|
|
December
31, 2016
|
|
$
|
|
$
|
Total
Assets:
|
|
|
|
Lithium
Business
|
171,881,450
|
|
115,116,508
|
Ni-MH Batteries and
Accessories (including $8,102,520 investment
in GZ Highpower under equity method)
|
48,383,088
|
|
37,994,369
|
Amount due from GZ
Highpower
|
-
|
|
6,601,065
|
Investment to GZ
Highpower
|
-
|
|
4,028,893
|
Total Assets
(excluding GZ Highpwer)
|
220,264,538
|
|
163,740,835
|
View original
content:http://www.prnewswire.com/news-releases/highpower-international-reports-unaudited-fourth-quarter-and-full-year-2017-financial-results-300622531.html
SOURCE Highpower International, Inc.