SAN FRANCISCO and SHENZHEN, China, Aug.
12, 2016 /PRNewswire/ -- Highpower International, Inc.
(NASDAQ: HPJ), ("Highpower," or the
"Company") a developer, manufacturer, and marketer of lithium
and nickel-metal hydride (Ni-MH) rechargeable batteries, and a
battery management systems and battery recycling provider, today
announced that its wholly-owned subsidiary, Huizhou Highpower
Technology Co., Ltd, has entered into an agreement ("Agreement") to
acquire up to 50% equity interest in Huizhou Yipeng Energy
Technology Co., Ltd. ("Huizhou 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.
Pursuant to the Agreement, the Company will invest RMB114.75 million (approximately $17.3 million) consisting of an aggregate of
$5.2 million in cash and $12.1 million of power battery equipment
into Huizhou Yipeng for a 50% equity interest. On August 10, 2016, the Company consummated the
first purchase of 30.4% for RMB 15
million in cash (approximately $2.3
million) and power equipment equivalent to RMB 45 million (approximately $6.8 million). The purchase of the remaining
equity interest of 14.6% for RMB 19.75
million in cash (approximately $2.9
million) and power equipment equivalent to RMB 35 million (approximately $5.3 million) is scheduled to close prior to
November 5, 2016 subject to Huizhou
Yipeng being approved prior to October 31,
2016 to be listed in the catalogue of industrial Standards
of Auto Mobile Power Battery Cell, which is formulated by the
Ministry of Industry and Information Technology of the People's Republic of China. The Company
intends to fund the equity purchase with cash on hand, expected
future cash flow, and if needed, approximately $2.0 million in borrowings under existing credit
arrangements. Prior to entering into the Agreement, Highpower
already held an existing 5% equity interest in Huizhou Yipeng.
Highpower also has the right to purchase from existing Huizhou
Yipeng shareholders additional equity for $0.4, million which would give Highpower a total
of 51% equity interest in Huizhou Yipeng.
Huizhou Yipeng was founded in Huizhou City, Guangdong Province in January 2014, and is a new high-tech enterprise
focusing on lithium-ion power battery systems in new energy vehicle
application. Mr. Hongze Yu, the CEO
of Huizhou Yipeng, has over twenty years of experience in driving
growth strategy for companies in the Chinese-vehicle industry.
Prior to Huizhou Yipeng, Mr. Yu was co-founder of Beijing JAYA
Technology Co., Ltd., a company specializing in smart
transportation started in 2005.
Management Commentary
Mr. George Pan, Chairman and CEO
of Highpower International, commented, "We are pleased to announce
our strategic investment in Huizhou Yipeng, which has established
an industry leading position in China in the PHEV and EV bus market, which has
experienced growth in recent years in power battery system. We have
worked with their management team for over two years, as Huizhou
Yipeng has been a customer of Highpower and we have collaborated on
several projects in past. We had a high degree of comfort
after establishing this relationship to move forward and take a
position in the company, and believe that our combined resources
will allow Huizhou Highpower to expand more rapidly in the PHEV and
EV power battery market in China
and help extend Highpower's industrial chain."
About Huizhou Yipeng Energy Technology Co.,
Ltd.
Yipeng Energy Technology Co., Ltd. was founded in Huizhou City, Guangdong Province in January 2014, and is a new high-tech enterprise
focusing on lithium-ion power battery systems in new energy vehicle
application. Huizhou Yipeng is a developer, manufacturer, and
marketer of the plug-in hybrid and pure electric vehicle fast
charge lithium-ion battery systems. Huizhou Yipeng has obtained the
ISO / TS16949: 2009 certification in 2015, and its fast charge
battery power system has been widely used in public transportation
vehicles across China. Huizhou
Yipeng has been recognized by EATON Corporation in the US and has
also become the standard power battery system supplier to HIGER, a
top brand bus in China. Huizhou
Yipeng mainly focuses on the PHEV and fast charge EV bus market,
achieving over 50 million kilometers' safe running record. For more
information about Huizhou Yipeng, please go to (in Mandarin):
http://www.kyipeng.com/
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. Highpower's target customers are Fortune 500
companies, and top 10 companies in each vertical segment. With
advanced manufacturing facilities located in Shenzhen, Huizhou, and Ganzhou of China, Highpower is committed to clean energy
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, Japan, 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 discussions of the Company's future performance, operations
and products. 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, the occurrence
of any event, change or other circumstances that could give rise to
the termination of the Agreement; the inability to complete the
transaction within the expected time period or at all, including
due to Huizhou Yipeng's failure to be approved for listing in the
catalogue of industrial Standards of Auto Mobile Power Battery
Cell, or the failure to satisfy other conditions to completion of
the acquisition; risks related to disruption of management's
attention from the ongoing business operations due to the
acquisition; the effect of the announcement of the acquisition on
Highpower's or Huizhou Yipeng's relationships with their respective
customers and lenders or on their operating results and
businesses generally, inability to achieve the expected benefits
resulting from the acquisition, such as expansion of Huizhou's Yipeng's business; our ability to
successfully expand sales of our lithium battery product in the
mobile device market and our ability to effectively compete in that
market. 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.
Sherry Chen
+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
(212) 836-9606
aprior@equityny.com
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SOURCE Highpower International, Inc.