SAN DIEGO and SHENZHEN, China, Nov.
13, 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 financial
results for the third quarter ended September 30, 2018.
Third Quarter 2018 Highlights (all results compared to prior
year period)
- Net sales for the third quarter of 2018 increased 26.8% to
$90.6 million from $71.4 million. Excluding the impact of Ganzhou
Highpower Technology Co., Ltd. ("GZ Highpower"), net sales
increased 41.8% to $90.6 million from
$63.9 million.
- Lithium business net sales increased 39.1% to $68.6 million from $49.3
million.
- Gross margin increased to 19.3% of net sales compared to
19.0%.
- Net income attributable to the Company increased 21.7% to
$6.1 million, or $0.39 per diluted share, compared to $5.0 million, or $0.32 per diluted share. Excluding GZ Highpower,
net income attributable to the Company increased 29.4% to
$6.1 million from $4.7 million.
Mr. George Pan, Chairman and CEO
of Highpower International, commented, "During the third quarter of
2018, we once again achieved net sales growth that surpassed our
guidance thanks to healthy growth in both our lithium ion and Ni-MH
battery businesses. New and existing customers in the high-end
consumer product, industrial application, and artificial
intelligence product industries in particular grew our lithium ion
battery business. In addition, our Ni-MH battery business benefited
from increased demand generated by the trend of consumer
electronics providers switching from one-time-use batteries and
nickel-cadmium batteries to clean re-chargeable batteries.
"The high price of raw materials in the third quarter declined
slightly quarter over quarter. We were also able to improve
production efficiency and scale, which helped us maintain our gross
margin from the prior year period. At the same time, we are
concerned about the uncertain impacts from global trade conflicts
in the near future. However, we will spare no effort to execute on
our strategy of producing higher quality and safer battery products
and services while managing our prices, operations, and customer
expectations to minimize the impact," Mr. Pan concluded.
Third Quarter and First Nine Months of 2018 Financial
Results
Net Sales
Net sales for the third quarter of 2018 increased 26.8% to
$90.6 million from $71.4 million in the prior year period. The
increase was driven by sales in the Company's lithium business,
which grew 39.1% to $68.6 million
from $49.3 million in the prior year
period. In addition, sales in the Ni-MH business grew 53.9% year
over year to $22.0 million. Excluding
the impact of GZ Highpower, net sales increased 41.8% to
$90.6 million from $63.9 million.
Net sales increased 24.4% to $205.3
million in the first nine months ended September 30, 2018, compared to $165.0 million in the same period of 2017.
Excluding the impact of GZ Highpower, net sales increased 34.3% to
$205.3 million from $152.9 million.
Gross Profit
Gross profit for the third quarter of 2018 increased 29.1% to
$17.5 million from $13.6 million in the prior year period. Gross
margin was 19.3% and 19.0% for the third quarters of 2018 and 2017,
respectively. Excluding GZ Highpower, gross margin was 19.3%
compared to 19.8%.
Gross profit for the first nine months of 2018 increased 2.3% to
$36.4 million from $35.6 million in the prior year period. Gross
margin was 17.7% and 21.6% for the nine months ended September 30, 2018 and 2017, respectively.
Excluding GZ Highpower, gross margin was 17.7% compared to
21.8%.
Operating Expenses
- Research and development (R&D) expenses for
the third quarter of 2018 increased to $3.5
million from $2.4 million in
the prior year period. As a percentage of net sales, R&D
expenses increased to 3.9% from 3.4% in the prior year period.
During the first nine months of 2018, research and development
expenses increased to $9.7 million,
or 4.7% of net sales, from $6.4
million, or 3.9% of net sales, for the prior year
period.
- Selling and distribution expenses for the third
quarter of 2018 increased to $2.6
million from $1.9 million in
the prior year period. As a percentage of net sales, selling and
distribution expenses increased to 2.9% from 2.6% in the prior year
period.
During the first nine months of 2018, selling and distribution
expenses increased to $6.7 million,
or, 3.3% of net sales, from $5.2
million, or 3.2% of net sales, for the nine months ended
September 30, 2017.
- General and administrative expenses for the third
quarter of 2018 increased to $5.8
million from $4.0 million in
the prior year period. The increase was mainly due to an increase
in compensation. As a percentage of net sales, general and
administrative expenses increased to 6.4% from 5.5% in the prior
year period.
During the first nine months of 2018, general and administrative
expenses increased to $13.8 million,
or 6.7% of net sales, from $10.0
million, or 6.1% of net sales, for the nine months ended
September 30, 2017.
Net Income
Net income attributable to the Company for the third quarter of
2018 increased 21.7% to $6.1 million
from $5.0 million in the prior year
period. Net income attributable to the Company per diluted share
for the third quarter of 2018 increased to $0.39 from $0.32 in
the prior year period. Excluding GZ Highpower, net income
attributable to the Company increased 29.4% to $6.1 million from $4.7
million in the prior year period.
For the quarter ended September 30, 2018 and 2017, the
Company's weighted average diluted shares outstanding used in
computing diluted share were 15,597,257 and 15,518,764,
respectively.
Net income attributable to the Company for the first nine months
of 2018 decreased 35.4% to $7.7
million from $11.9 million in
the prior year period. Net income attributable to the Company per
diluted share for the first nine months of 2018 decreased to
$0.49 from $0.77 in the prior year period. Excluding GZ
Highpower, net income attributable to the Company for the first
nine months of 2018 decreased 31.4% to $7.7
million from $11.2 million in
the prior year period.
For the nine months ended September 30, 2018 and 2017, the
Company's weighted average diluted shares outstanding used in
computing diluted share were 15,600,546 and 15,563,012,
respectively.
EBITDA
EBITDA for the third quarter of 2018 increased 23.0% to
$9.0 million from $7.3 million in the prior year period. EBITDA for
the first nine months of 2018 decreased 22.6% to $14.6 million from $18.8
million in the prior year period.
A table reconciling EBITDA, a non-GAAP financial measure, to the
appropriate GAAP measure is included with the Company's financial
information below.
Balance Sheet
Highlights
|
|
|
|
|
($ in millions,
except per share data)
|
|
September
30,
|
|
December 31,
|
2018
|
|
2017
|
|
|
(Unaudited)
|
|
|
|
|
$
|
|
$
|
Cash
|
|
$8.0
|
|
$14.5
|
Total Current
Assets
|
|
$193.6
|
|
$156.0
|
Total
Assets
|
|
$263.8
|
|
$220.3
|
|
|
|
|
|
Total Current
Liabilities
|
|
$192.7
|
|
$152.3
|
Total
Liabilities
|
|
$192.7
|
|
$153.1
|
Total
Equity
|
|
$71.1
|
|
$67.2
|
Total Liabilities and
Equity
|
|
$263.8
|
|
$220.3
|
Book Value Per
Share
|
|
$4.57
|
|
$4.33
|
Financial Outlook
For the fourth quarter of 2018, the Company expects net revenues
to grow around 30% year over year, excluding the impact from GZ
Highpower. Gross margin is expected to be similar to that of the
third quarter of 2018. The Company will closely monitor all
potential risks and uncertain impacts related to the trade conflict
between the U.S. and China, raw
material prices, and exchange rates.
Conference Call Details
The Company will hold a conference call on Tuesday, November 13, 2018, at 10:00 AM Eastern Time, or 11:00 PM Beijing Time, to discuss the financial
results. Participants may access the call by dialing the following
numbers:
United States and Canada: 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
https://78449.themediaframe.com/dataconf/productusers/hpj/mediaframe/27472/indexl.html.
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 is reconciled in the table
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 the
proposed transaction regarding Ganzhou Highpower, approval by
Highpower's board and Highpower's resulting equity ownership,
Highpower's cash position and growth, production capacity, research
and development efforts, strategic partnerships and business and
financial expectations. 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, t inability to
successfully expand our production capacity and improve production
efficiency and scale; fluctuations in the cost of raw materials;
risks and uncertainties related to the trade conflict between
the U.S. and China; 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;
fluctuations in exchange rates; 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; 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
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
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Stated in US
Dollars)
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2018
|
|
2017
|
|
|
(Unaudited)
|
|
|
|
|
$
|
|
$
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash
|
|
7,981,782
|
|
14,502,171
|
|
Restricted
cash
|
|
31,622,572
|
|
25,953,946
|
|
Accounts receivable,
net
|
|
81,610,241
|
|
58,252,999
|
|
Amount due from a
related party
|
|
259,995
|
|
1,165,838
|
|
Notes
receivable
|
|
273,164
|
|
2,606,517
|
|
Advances to
suppliers
|
|
4,487,495
|
|
6,050,531
|
|
Prepayments and other
receivables
|
|
8,804,905
|
|
4,268,527
|
|
Foreign exchange
derivative assets
|
|
-
|
|
236,436
|
|
Inventories
|
|
58,567,663
|
|
42,946,644
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
193,607,817
|
|
155,983,609
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
51,452,906
|
|
46,520,776
|
|
Long-term
prepayments
|
|
3,778,665
|
|
3,715,445
|
|
Land use rights,
net
|
|
2,444,474
|
|
2,639,631
|
|
Other
assets
|
|
719,028
|
|
748,431
|
|
Deferred tax assets,
net
|
|
1,260,108
|
|
750,267
|
|
Long-term
investments
|
|
10,535,177
|
|
9,906,379
|
|
|
|
|
|
TOTAL
ASSETS
|
|
263,798,175
|
|
220,264,538
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
69,311,491
|
|
60,368,012
|
|
Deferred government
grants
|
|
472,949
|
|
309,638
|
|
Short-term
loans
|
|
24,318,587
|
|
10,128,646
|
|
Non-financial
institution borrowings
|
|
8,701,075
|
|
10,756,158
|
|
Notes
payable
|
|
54,989,994
|
|
54,859,478
|
|
Foreign exchange
derivative liabilities
|
|
480,459
|
|
-
|
|
Amount due to related
parties
|
|
6,127,007
|
|
-
|
|
Other payables and
accrued liabilities
|
|
24,279,551
|
|
12,243,345
|
|
Income taxes
payable
|
|
3,972,006
|
|
3,609,391
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
192,653,119
|
|
152,274,668
|
|
|
|
|
|
|
|
Income taxes payable,
noncurrent
|
|
-
|
|
777,685
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
192,653,119
|
|
153,052,353
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
-
|
|
-
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Stated in US
Dollars)
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2018
|
|
2017
|
|
|
|
(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, 15,559,658 shares issued
and outstanding at September 30, 2018 and 15,509,658 at December
31, 2017,
respectively)
|
|
|
1,556
|
|
1,551
|
|
Additional paid-in
capital
|
|
|
13,657,599
|
|
12,709,756
|
|
Statutory and other
reserves
|
|
|
6,549,815
|
|
6,549,815
|
|
Retained
earnings
|
|
|
52,190,975
|
|
44,481,568
|
|
Accumulated other
comprehensive (loss) income
|
|
|
(1,254,889)
|
|
3,469,495
|
|
|
|
|
|
|
TOTAL
EQUITY
|
|
|
71,145,056
|
|
67,212,185
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
|
263,798,175
|
|
220,264,538
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
|
(Stated in US
Dollars)
|
|
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
$
|
|
$
|
|
$
|
|
$
|
Net sales
|
90,557,479
|
|
71,405,560
|
|
205,264,892
|
|
164,972,338
|
Cost of
sales
|
(73,047,063)
|
|
(57,845,224)
|
|
(168,878,223)
|
|
(129,405,402)
|
Gross
profit
|
17,510,416
|
|
13,560,336
|
|
36,386,669
|
|
35,566,936
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
(3,535,882)
|
|
(2,433,928)
|
|
(9,690,479)
|
|
(6,385,144)
|
Selling and
distribution expenses
|
(2,625,016)
|
|
(1,859,762)
|
|
(6,721,762)
|
|
(5,220,985)
|
General and
administrative expenses
|
(5,796,496)
|
|
(3,959,731)
|
|
(13,821,494)
|
|
(10,034,694)
|
Foreign currency
transaction gain (loss)
|
1,925,179
|
|
(816,593)
|
|
2,581,418
|
|
(1,645,095)
|
Total operating
expenses
|
(10,032,215)
|
|
(9,070,014)
|
|
(27,652,317)
|
|
(23,285,918)
|
|
|
|
|
|
|
|
|
Income from
operations
|
7,478,201
|
|
4,490,322
|
|
8,734,352
|
|
12,281,018
|
|
|
|
|
|
|
|
|
Changes in fair value
of warrant liability
|
-
|
|
-
|
|
-
|
|
259
|
Changes in fair value
of foreign exchange derivative assets
(liabilities)
|
(410,061)
|
|
(146,481)
|
|
(831,486)
|
|
(146,481)
|
Government
grants
|
261,538
|
|
345,941
|
|
1,580,037
|
|
904,753
|
Other income
(expense)
|
27,998
|
|
(251,166)
|
|
108,140
|
|
44,480
|
Equity in earnings of
investees
|
184,803
|
|
1,087
|
|
501,123
|
|
106,412
|
Gain on dilution in
equity method investee
|
-
|
|
5,071
|
|
-
|
|
496,396
|
Gain on sales of
long-term investment
|
-
|
|
1,664,377
|
|
-
|
|
1,664,377
|
Interest (expense)
income
|
(518,912)
|
|
57,663
|
|
(1,073,578)
|
|
(926,185)
|
Income before
taxes
|
7,023,567
|
|
6,166,814
|
|
9,018,588
|
|
14,425,029
|
|
|
|
|
|
|
|
|
Income taxes
expenses
|
(909,539)
|
|
(1,013,919)
|
|
(1,309,181)
|
|
(2,197,392)
|
Net income
|
6,114,028
|
|
5,152,895
|
|
7,709,407
|
|
12,227,637
|
|
|
|
|
|
|
|
|
Less: net income
attributable to non-controlling interest
|
-
|
|
128,702
|
|
-
|
|
296,558
|
Net income
attributable to the Company
|
6,114,028
|
|
5,024,193
|
|
7,709,407
|
|
11,931,079
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
Net income
|
6,114,028
|
|
5,152,895
|
|
7,709,407
|
|
12,227,637
|
Foreign currency
translation (loss) gain
|
(3,392,724)
|
|
1,258,937
|
|
(4,724,384)
|
|
2,743,650
|
Comprehensive
income
|
2,721,304
|
|
6,411,832
|
|
2,985,023
|
|
14,971,287
|
|
|
|
|
|
|
|
|
Less: comprehensive
income attributable to non-controlling
interest
|
-
|
|
139,461
|
|
-
|
|
317,807
|
Comprehensive income
attributable to the Company
|
2,721,304
|
|
6,272,371
|
|
2,985,023
|
|
14,653,480
|
|
|
|
|
|
|
|
|
Earnings per share of
common stock attributable to the
Company
|
|
|
|
|
|
|
|
- Basic
|
0.39
|
|
0.33
|
|
0.50
|
|
0.78
|
- Diluted
|
0.39
|
|
0.32
|
|
0.49
|
|
0.77
|
|
|
|
|
|
|
|
|
Weighted average
number of common stock outstanding
|
|
|
|
|
|
|
|
- Basic
|
15,559,658
|
|
15,369,674
|
|
15,542,076
|
|
15,270,898
|
- Diluted
|
15,597,257
|
|
15,518,764
|
|
15,600,546
|
|
15,563,012
|
Reconciliation of
Net Income to EBITDA
|
|
|
|
|
Three months
ended
September
30,
|
|
Nine
months ended
September
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
$
|
|
$
|
|
$
|
|
$
|
Net income
attributable to the Company
|
6,114,028
|
|
5,024,193
|
|
7,709,407
|
|
11,931,079
|
|
|
|
|
|
|
|
|
Interest
expenses
|
518,912
|
|
(57,663)
|
|
1,073,578
|
|
926,185
|
Income taxes
expenses
|
909,539
|
|
1,013,919
|
|
1,309,181
|
|
2,197,392
|
Depreciation and
Amortization
|
1,490,646
|
|
1,362,196
|
|
4,494,518
|
|
3,792,178
|
|
|
|
|
|
|
|
|
EBITDA
|
9,033,125
|
|
7,342,645
|
|
14,586,684
|
|
18,846,834
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Stated in US
Dollars)
|
|
|
Nine Months
Ended September 30,
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
|
$
|
|
$
|
Cash flows from
operating activities
|
|
|
|
Net income
|
7,709,407
|
|
12,227,637
|
Adjustments to
reconcile net income to net cash (used in) provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
4,494,518
|
|
3,792,178
|
(Reversal) allowance
for doubtful accounts, net
|
(787,034)
|
|
48,866
|
Loss on disposal of
property, plant and equipment
|
223,040
|
|
57,277
|
Deferred
tax
|
(581,710)
|
|
153,625
|
Changes in fair value
of foreign exchange derivative assets (liabilities)
|
741,786
|
|
166,387
|
Equity in earnings of
investees
|
(501,123)
|
|
(106,412)
|
Gain on dilution in
equity method investee
|
-
|
|
(496,396)
|
Gain on sales of
long-term investment
|
-
|
|
(1,664,377)
|
Share based
compensation
|
735,348
|
|
86,921
|
Changes in fair value
of warrant liability
|
-
|
|
(259)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(25,743,046)
|
|
(8,517,071)
|
Other
assets
|
(8,097)
|
|
-
|
Notes
receivable
|
2,305,455
|
|
(5,543,798)
|
Advances to
suppliers
|
1,289,133
|
|
-
|
Prepayments and other
receivables
|
(4,568,639)
|
|
(8,775,985)
|
Amount due from a
related party
|
885,886
|
|
7,691,900
|
Amount due to related
parties
|
-
|
|
(1,557,682)
|
Inventories
|
(18,990,697)
|
|
(11,753,127)
|
Accounts
payable
|
9,857,431
|
|
7,049,819
|
Deferred government
grants
|
256,932
|
|
11,637
|
Other payables and
accrued liabilities
|
13,135,351
|
|
1,394,691
|
Income taxes
payable
|
(223,682)
|
|
156,744
|
Net cash flows used
in operating activities
|
(9,769,741)
|
|
(5,577,425)
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisitions of
property, plant and equipment
|
(9,796,130)
|
|
(7,297,901)
|
Proceeds from sale of
long-term investment
|
-
|
|
10,453,475
|
Payment for long-term
investment
|
(321,067)
|
|
-
|
Net cash flows (used
in) provided by investing activities
|
(10,117,197)
|
|
3,155,574
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
short-term loans
|
21,427,063
|
|
8,797,727
|
Repayments of
short-term loans
|
(5,866,424)
|
|
(17,594,229)
|
Proceeds from a
related party
|
6,031,465
|
|
-
|
Proceeds from
non-financial institution borrowings
|
-
|
|
10,306,243
|
Repayments of
non-financial institution borrowings
|
(1,528,888)
|
|
(3,828,033)
|
Proceeds from notes
payable
|
86,130,613
|
|
62,193,463
|
Repayments of notes
payable
|
(82,740,379)
|
|
(48,408,417)
|
Proceeds from exercise
of employee options
|
-
|
|
635,484
|
Net cash flows
provided by financing activities
|
23,453,450
|
|
12,102,238
|
Effect of foreign
currency translation on cash and restricted cash
|
(4,418,275)
|
|
2,591,502
|
Net (decrease)
increase in cash and restricted cash
|
(851,763)
|
|
12,271,889
|
Cash and restricted
cash - beginning of period
|
40,456,117
|
|
20,538,033
|
Cash and restricted
cash - end of period
|
39,604,354
|
|
32,809,922
|
|
|
|
|
Supplemental
disclosures for cash flow information:
|
|
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
2,114,573
|
|
1,464,592
|
Interest
expenses
|
1,285,288
|
|
1,402,447
|
Non-cash
transactions
|
|
|
|
Shares issued for
legal case settlement
|
212,500
|
|
-
|
Offset of deferred
government grant and property, plant and equipment
|
66,398
|
|
171,403
|
View original
content:http://www.prnewswire.com/news-releases/highpower-international-reports-unaudited-third-quarter-first-nine-months-2018-financial-results-300748897.html
SOURCE Highpower International, Inc.