SAN FRANCISCO, USA and SHENZHEN,
China, Nov. 9, 2016
/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 third quarter and
nine months ended September 30,
2016.
-- Highlighted by Higher Sales and Improved
Profitability
-- Company to Hold Conference Call on
November 10, 2016 at 10:00 a.m. Eastern Time / 7:00a.m. Pacific Time
The Company's recent notable events are as follows:
- On August 12, 2016, the
Company announced that its wholly-owned subsidiary, Huizhou
Highpower Technology Co., Ltd, entered into an agreement to acquire
up to 50% equity interest in 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. The Company also has the right to
purchase in the future an additional 1% of the shares from Yipeng's
founding shareholders at a price of approximately $0.4 million which would result in an aggregate
ownership of 51% of Yipeng. As of September
30, 2016, the Company has invested an aggregate of
$9.7 million in exchange for 35.4% of
the equity interest of Yipeng.
- On August 30, 2016, Hong Kong
Highpower Technology Co. Ltd. entered into a non-binding
Cooperation Framework Agreement with Anshan Co-operation (Group)
Co., Ltd. ("ACOC") under which ACOC proposed to purchase newly
issued shares of SZ Highpower, SZ Springpower and ICON for
RMB540 million (approximately
$81.0 million), which would be paid
directly to the subsidiaries. As a result of its purchase, ACOC
would hold more than 50% in each PRC subsidiary. The Framework
Agreement includes a 90 day exclusivity provision and supersedes
the non-binding proposal from ACOC received by the Company on
November 27, 2015. The special
committee of the Board of Directors continues to review the
proposed transaction.
2016 Third Quarter Financial
Highlights (all results are compared to prior year period)
- Net sales were $54.1 million, an
increase of 44.2% from $37.6 million,
primarily due to an increase in net sales of lithium
batteries.
- Gross margin was 25.2%, an increase from 19.2%, mainly due to
an increase in sales volume of lithium batteries, a reduction in
the cost of raw materials, and improvements in labor
efficiency.
- EBITDA was $5.0 million compared
to $4.0 million.
- Net income attributable to the Company was $2.7 million, or $0.18 per diluted share, compared to net income
attributable to the Company of $1.9
million, or $0.13 per diluted
share; non-GAAP net income attributable to the Company was
$2.7 million, or $0.18 per diluted share, compared to non-GAAP net
income attributable to the Company of $1.6
million, or $0.10 per diluted
share.
Management Commentary
Mr. George Pan, Chairman and CEO
of Highpower International, commented, "We are pleased to achieve
improvements across each metric of our operating results during the
third quarter of 2016, largely due to accelerating demand for
lithium batteries in the second half of the year. Throughout the
past year, Highpower has dedicated significant time and resources
to expand our R&D efforts to ensure that our Company is at the
forefront of providing state-of –art lithium battery technology to
the market. Many of our customers are long-standing
customers, and it is imperative that we can evolve to meet consumer
demand."
Mr. Pan continued, "We were excited to announced Highpower's
investment in Huizhou Yipeng during the quarter. This is a
leading electric vehicle power battery system solutions provider,
specializing in the plug-in PHEV and EV bus market in
China. We believe that our
investment in Yipeng will be wholly complementary to our existing
growth strategies, and believe that our combined resources will
allow Huizhou Highpower to expand more rapidly in the PHEV and EV
power battery market in China."
2016 Third Quarter Financial Review
Net Sales
Net sales for the third quarter ended September 30, 2016 increased 44.2% to
$54.1 million from $37.6 million in the same period in 2015. The
increase was primarily due to a $17.6
million increase in net sales of lithium batteries.
Net sales for the nine months ended September 30, 2016 were $120.0 million, compared to $108.3 million for the same prior year period.
This 10.7% increase was due to a $17.7
million increase in net sales of the lithium batteries
compared to same period in 2015.
Gross Profit
For the third quarter ended September 30,
2016, the Company's gross profit was $13.7 million, compared to $7.2 million, for the same period in 2015. This
increase was due to the increase in sales volume of our lithium
batteries, the reduction in the cost of materials purchase cost for
the lithium and Ni-MH batteries, and the improvements in labor
efficiency.
For the nine months ended September 30,
2016, the Company's gross profit was $27.2 million, compared to $21.3 million for the same period in 2015. The
increase is due to the same reasons described above.
Gross Margin
Gross margin was 25.2% for the third quarter ended September 30, 2016, increased from 19.2% for the
same period in 2015.
Gross margin for the nine months ended September 30, 2016 was 22.7%, increased from
19.7% for the same period in 2015.
Research and Development (R&D)
R&D expenses were $3.0
million, or 5.6% of net sales, for the third quarter ended
September 30, 2016, compared to
$2.0 million, 5.2% of net sales for
the same period in 2015. For the nine months ended September 30, 2016, R&D expenses were
$6.7 million, or 5.6% of net sales,
compared to $5.6 million, or 5.2% of
net sales, for the same period in 2015. The increase during each
period was primarily due to the increase of technology input on
lithium batteries.
Selling & Distribution
Selling and distribution expenses were $1.9 million, or 3.5% of net sales, for the third
quarter ended September 30, 2016,
compared to $1.7 million, or 4.6% of
net sales, for the same period in 2015.
For the nine months ended September 30,
2016, selling and distribution expenses were $5.0 million, or 4.1% of the net sales, compared
to $5.1 million, or 4.7% of net
sales, for the same period in 2015.
General & Administrative
General and administrative expenses were $5.9 million, or 11.0% of net sales, for the
third quarter ended September 30,
2016, compared to $3.3
million, or 8.8% of net sales, for the same period in 2015.
For the nine months ended September 30,
2016, general and administrative expenses were $12.3 million, or 10.2% of net sales, compared to
$9.7 million, or 9.0% of net sales,
for the same period in 2015. The increase for each period was
primarily due to a one-time expense of $1.7 from the allowance for doubtful
accounts.
Net Income
For the third quarter of 2016, net income attributable to the
Company was $2.7 million, or
$0.18 per diluted share based on 15.1
million weighted average diluted shares outstanding, compared to
net income of $1.9 million, or
$0.13 per diluted share based on 15.1
million weighted average diluted shares outstanding. Non-GAAP net
income attributable to the Company was $2.7
million, or $0.18 per diluted
share, compared to a non-GAAP net income attributable to the
Company of $1.6 million, or
$0.10 per diluted share, in the prior
year period.
For the nine months ended September 30,
2016, net income attributable to the Company was
$4.4 million, or $0.29 per diluted share based on 15.1 million
weighted average diluted shares outstanding, compared to net income
of $3.7 million, or $0.24 per diluted share based on 15.4 million
weighted average diluted shares outstanding. Non-GAAP net income
attributable to the Company was $4.5
million, or $0.3 per diluted
share, compared to a non-GAAP net income attributable to the
Company of $3.3 million, or
$0.21 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 third quarter ended September 30, 2016 was $5.0 million, compared to $4.0 million in the prior year period.
For the nine months ended September 30,
2016, EBITDA was $10.1
million, compared to $8.7
million, in the prior year period.
A table reconciling EBITDA, a non-GAAP financial measure,
to the appropriate GAAP measure is included with the Company's
financial information below.
Balance Sheet Highlights
($ in millions,
except per share data)
|
|
September
30,
|
|
December
31,
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
|
|
|
$
|
|
$
|
Cash and Cash
Equivalents
|
|
$13.5
|
|
$5.8
|
Total Current
Assets
|
|
$103.4
|
|
$80.7
|
Total
Assets
|
|
$165.6
|
|
$134.2
|
Total Current
Liabilities
|
|
$120.1
|
|
$91.2
|
Total
Liabilities
|
|
$120.1
|
|
$91.3
|
Shareholders'
Equity
|
|
$45.5
|
|
$42.9
|
Total Liabilities and
Shareholders' Equity
|
|
$165.6
|
|
$134.2
|
Book Value Per
Share
|
|
$3.01
|
|
$2.84
|
Conference Call Details
The Company announced that it will discuss financial results in
a conference call on November 10,
2016 at 10:00 a.m. Eastern
Time / 7:00 a.m. Pacific
Time.
The dial-in numbers are:
Live Participant Dial In (Toll
Free):
877-407-3108
Live Participant Dial In (International):
201-493-6797
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/q3-2016. 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 attributable to the Company
exclude stock-based compensation expense and change of fair
value of warrant liability. Adjusted EBITDA 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.
Currency Translations
Currency amounts in the Yipeng transaction documents are
denominated in Renminbi, the currency of the PRC and the country in
which all of the parties are located. This communication
contains translations of certain Renminbi amounts into U.S. dollars
at specified rates solely for the convenience of readers. Unless
otherwise noted, any translations from Renminbi to U.S. dollars in
this press release were made at the current exchange rate at the
balance sheet dates. Such translations should not be
construed as representations that RMB amounts could be converted
into U.S. dollars at that rate or any other rate, or to be the
amounts that would be reported under U.S. 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, and
include discussions of strategy, and statements about industry
trends and 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, without limitation, economic
downturn and uncertainty in Asia
and Europe adversely affecting
demand for our products; 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; changes in
the laws of the PRC that affect our operations; the devaluation of
the U.S. Dollar relative to the Renminbi; 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; our ability to continue R&D development
to keep up with technological changes our exposure to product
liability, safety, and defect claims; rising labor costs, volatile
metal prices, and inflation; changes in foreign, political, social,
business and economic conditions that affect our production
capabilities or demand for our products; satisfactory completion of
due diligence, compliance with applicable laws and definitive
documentation with respect to the proposed transaction with ACOC;
Yipeng's ability to be approved for listing in the catalogue of
Industrial Standards of Automobile Power Battery Cell; and various
other matters, many of which are beyond our control. 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
Interim 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)
|
|
|
|
|
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
Net sales
|
54,142,916
|
|
37,556,826
|
|
119,972,281
|
|
108,330,275
|
Cost of
sales
|
(40,475,820)
|
|
(30,340,151)
|
|
(92,784,475)
|
|
(86,994,126)
|
Gross
profit
|
13,667,096
|
|
7,216,675
|
|
27,187,806
|
|
21,336,149
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
(3,029,628)
|
|
(1,963,690)
|
|
(6,688,397)
|
|
(5,635,308)
|
Selling and
distribution expenses
|
(1,881,277)
|
|
(1,712,303)
|
|
(4,955,708)
|
|
(5,108,589)
|
General and
administrative expenses
|
(5,935,907)
|
|
(3,295,815)
|
|
(12,254,520)
|
|
(9,744,336)
|
Foreign currency
transaction gain
|
126,732
|
|
1,458,363
|
|
636,609
|
|
1,902,220
|
Total operating
expenses
|
(10,720,080)
|
|
(5,513,445)
|
|
(23,262,016)
|
|
(18,586,013)
|
|
|
|
|
|
|
|
|
Income from
operations
|
2,947,016
|
|
1,703,230
|
|
3,925,790
|
|
2,750,136
|
|
|
|
|
|
|
|
|
(Loss) gain on change
of fair value of warrant liability
|
(11,150)
|
|
510,553
|
|
115,396
|
|
941,685
|
Other
income
|
505,928
|
|
154,904
|
|
1,717,803
|
|
742,051
|
Equity in earnings of
investee
|
218,903
|
|
-
|
|
218,903
|
|
-
|
Interest
expenses
|
(341,520)
|
|
(246,563)
|
|
(1,051,914)
|
|
(790,681)
|
Income before
taxes
|
3,319,177
|
|
2,122,124
|
|
4,925,978
|
|
3,643,191
|
|
|
|
|
|
|
|
|
Income taxes
expenses
|
(769,065)
|
|
(270,622)
|
|
(978,882)
|
|
(194,206)
|
Net income
|
2,550,112
|
|
1,851,502
|
|
3,947,096
|
|
3,448,985
|
|
|
|
|
|
|
|
|
Less: net loss
attributable to non-controlling interest
|
(101,194)
|
|
(91,843)
|
|
(413,384)
|
|
(238,126)
|
Net income
attributable to the Company
|
2,651,306
|
|
1,943,345
|
|
4,360,480
|
|
3,687,111
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
|
|
|
|
|
|
|
Net income
|
2,550,112
|
|
1,851,502
|
|
3,947,096
|
|
3,448,985
|
Foreign currency
translation income (loss)
|
171,574
|
|
(2,024,906)
|
|
(1,542,704)
|
|
(2,023,640)
|
Comprehensive
income (loss)
|
2,721,686
|
|
(173,404)
|
|
2,404,392
|
|
1,425,345
|
|
|
|
|
|
|
|
|
Less: comprehensive
loss attributable to non-controlling
interest
|
(103,831)
|
|
(133,677)
|
|
(429,713)
|
|
(278,226)
|
Comprehensive income
(loss) attributable to the Company
|
2,825,517
|
|
(39,727)
|
|
2,834,105
|
|
1,703,571
|
|
|
|
|
|
|
|
|
Income per share of
common stock attributable to the
Company
|
|
|
|
|
|
|
|
- Basic
|
0.18
|
|
0.13
|
|
0.29
|
|
0.24
|
- Diluted
|
0.18
|
|
0.13
|
|
0.29
|
|
0.24
|
|
|
|
|
|
|
|
|
Weighted average
number of common stock outstanding
|
|
|
|
|
|
|
|
- Basic
|
15,103,007
|
|
15,101,679
|
|
15,102,121
|
|
15,098,479
|
- Diluted
|
15,115,409
|
|
15,148,887
|
|
15,104,914
|
|
15,367,542
|
HIGHPOWER
INTERNATIONAL, INC.AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(Stated in US
Dollars)
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
|
|
|
$
|
|
$
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash
|
|
13,477,199
|
|
5,849,967
|
|
Restricted
cash
|
|
10,758,392
|
|
11,656,204
|
|
Accounts receivable,
net
|
|
47,747,210
|
|
36,139,866
|
|
Amount due from
Yipeng
|
|
2,960,524
|
|
-
|
|
Notes
receivable
|
|
1,770,789
|
|
1,757,709
|
|
Prepayments and other
receivables
|
|
5,586,595
|
|
6,060,904
|
|
Inventories,
net
|
|
21,138,583
|
|
19,218,331
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
103,439,292
|
|
80,682,981
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
46,373,030
|
|
47,464,186
|
|
Land use right,
net
|
|
3,792,334
|
|
3,963,003
|
|
Other
assets
|
|
512,500
|
|
550,000
|
|
Deferred tax
assets
|
|
1,567,644
|
|
1,544,314
|
|
Long-term
investment
|
|
9,949,477
|
|
-
|
|
|
|
|
|
TOTAL
ASSETS
|
|
165,634,277
|
|
134,204,484
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
48,673,568
|
|
36,077,396
|
|
Deferred
income
|
|
775,437
|
|
879,944
|
|
Short-term bank
loan
|
|
20,876,434
|
|
13,839,341
|
|
Non-financial
institution borrowings
|
|
4,492,498
|
|
-
|
|
Notes
payable
|
|
32,048,210
|
|
30,490,166
|
|
Amount due to
Yipeng
|
|
1,537,765
|
|
-
|
|
Other payables and
accrued liabilities
|
|
9,826,526
|
|
6,292,492
|
|
Income taxes
payable
|
|
1,854,510
|
|
1,783,013
|
|
Current portion of
long-term loan
|
|
-
|
|
1,845,245
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
120,084,948
|
|
91,207,597
|
|
|
|
|
|
|
|
Warrant
Liability
|
|
25,153
|
|
140,549
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
120,110,101
|
|
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, 15,109,019
shares issued
and outstanding at September 30, 2016 and
15,101,679 shares issued and
outstanding at December 31, 2015)
|
|
1,511
|
|
1,510
|
|
Additional paid-in
capital
|
|
11,491,424
|
|
11,227,979
|
|
Statutory and other
reserves
|
|
4,042,429
|
|
4,042,429
|
|
Retained
earnings
|
|
28,458,655
|
|
24,098,175
|
|
Accumulated other
comprehensive income
|
|
1,106,387
|
|
2,632,762
|
|
|
|
|
|
|
|
Total equity for the
stockholders of Highpower International Inc.
|
|
45,100,406
|
|
42,002,855
|
|
|
|
|
|
|
|
Non-controlling
interest
|
|
423,770
|
|
853,483
|
|
|
|
|
|
|
|
TOTAL
EQUITY
|
|
45,524,176
|
|
42,856,338
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
165,634,277
|
|
134,204,484
|
|
|
|
|
|
|
|
|
|
|
|
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Stated in US
Dollars)
|
|
|
|
Nine months
ended September 30
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
(Unaudited)
|
|
$
|
|
$
|
Cash flows from
operating activities
|
|
|
|
Net income
|
3,947,096
|
|
3,448,985
|
Adjustments to
reconcile net income to net cash provided by (used in)operating
activities:
|
|
|
|
Depreciation and
amortization
|
3,735,353
|
|
4,038,596
|
Allowance for doubtful
accounts
|
1,661,968
|
|
1,132
|
Income on disposal of
property, plant and equipment
|
197,848
|
|
145,572
|
Deferred income
tax
|
(63,934)
|
|
(294,943)
|
Equity in earnings of
investee
|
(218,903)
|
|
-
|
Share based
compensation
|
244,142
|
|
535,761
|
Change in fair value
of warrant liability
|
(115,396)
|
|
(941,685)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(13,619,029)
|
|
(4,671,730)
|
Notes
receivable
|
(59,905)
|
|
(1,339,122)
|
Prepayments and other
receivables
|
(230,595)
|
|
(1,206,914)
|
Amount due from a
related party
|
(3,004,025)
|
|
-
|
Amount due to a
related company
|
1,560,360
|
|
-
|
Inventories
|
(2,457,733)
|
|
(530,357)
|
Accounts
payable
|
11,817,867
|
|
(6,233,405)
|
Deferred
revenue
|
(82,697)
|
|
242,683
|
Other payables and
accrued liabilities
|
3,745,023
|
|
981,979
|
Income taxes
payable
|
119,859
|
|
(305,698)
|
Net cash flows
provided by (used in) operating activities
|
7,177,299
|
|
(6,129,146)
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisitions of plant
and equipment
|
(8,474,440)
|
|
(7,250,757)
|
Long-term
investment
|
(3,039,006)
|
|
-
|
Net cash flows
used in investing activities
|
(11,513,446)
|
|
(7,250,757)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
short-term bank loans
|
18,158,059
|
|
11,325,212
|
Repayment of
short-term bank loans
|
(10,650,400)
|
|
(10,916,379)
|
Proceeds from
non-financial institution borrowings
|
4,558,509
|
|
-
|
Repayment of long-term
bank loans
|
(1,823,403)
|
|
(1,456,099)
|
Proceeds from notes
payable
|
41,908,812
|
|
49,315,315
|
Repayment of notes
payable
|
(39,518,955)
|
|
(43,573,196)
|
Proceeds from exercise
of employee options
|
19,304
|
|
44,534
|
Change in restricted
cash
|
601,759
|
|
2,491,383
|
Net cash flows
provided by financing activities
|
13,253,685
|
|
7,230,770
|
Effect of foreign
currency translation on cash and cash equivalents
|
(1,290,306)
|
|
(552,574)
|
Net increase
(decrease) in cash and cash equivalents
|
7,627,232
|
|
(6,701,707)
|
Cash and cash
equivalents - beginning of period
|
5,849,967
|
|
14,611,892
|
Cash and cash
equivalents - end of period
|
13,477,199
|
|
7,910,185
|
|
|
|
|
Supplemental
disclosures for cash flow information:
|
|
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
922,957
|
|
794,846
|
Interest
expenses
|
1,051,914
|
|
822,257
|
Non-cash
transactions
|
|
|
|
Long-term investment
with capital injection by equipments
|
6,837,763
|
|
-
|
Offset of deferred
income related to government grant and property, plant and
equipment
|
33,019
|
|
976,301
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES (Unaudited)
|
(Stated in US
Dollars)
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income to EBITDA
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
|
September
30,
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Net income
attributable to the
Company
|
|
2,651,306
|
|
1,943,345
|
|
4,360,480
|
|
3,687,111
|
Non-GAAP Net Income
(1)
|
|
2,700,629
|
|
1,556,249
|
|
4,489,226
|
|
3,281,187
|
|
|
|
|
|
|
|
|
|
Interest expenses,
net
|
|
341,520
|
|
246,563
|
|
1,051,914
|
|
790,681
|
Income tax
expenses
|
|
769,065
|
|
270,622
|
|
978,882
|
|
194,206
|
Depreciation and
Amortization
|
|
1,249,157
|
|
1,502,901
|
|
3,735,353
|
|
4,038,596
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
5,011,048
|
|
3,963,431
|
|
10,126,629
|
|
8,710,594
|
Non-GAAP Adjusted
EBITDA(2)
|
|
5,060,371
|
|
3,576,335
|
|
10,255,375
|
|
8,304,670
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
September
30,
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to the Company
|
|
2,651,306
|
|
1,943,345
|
|
4,360,480
|
|
3,687,111
|
Stock-based
compensation expense
|
|
38,173
|
|
123,457
|
|
244,142
|
|
535,761
|
(Loss) gain on change
of fair value of warrant liability
|
|
11,150
|
|
(510,553)
|
|
(115,396)
|
|
(941,685)
|
Non-GAAP net income
attributable to the Company
|
|
2,700,629
|
|
1,556,249
|
|
4,489,226
|
|
3,281,187
|
|
|
|
|
|
|
|
|
|
Basic net income per
share of common stock
attributable to the Company
|
|
0.18
|
|
0.13
|
|
0.29
|
|
0.24
|
Stock-based
compensation expense
|
|
0.00
|
|
0.01
|
|
0.02
|
|
0.04
|
(Loss) gain on change
of fair value of warrant liability
|
|
0.00
|
|
(0.04)
|
|
(0.01)
|
|
(0.06)
|
Non-GAAP income per
share of common stock
attributable to the Company
|
|
0.18
|
|
0.10
|
|
0.30
|
|
0.22
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share of common stock
attributable to the Company
|
|
0.18
|
|
0.13
|
|
0.29
|
|
0.24
|
Stock-based
compensation expense
|
|
0.00
|
|
0.01
|
|
0.02
|
|
0.03
|
(Loss) gain on change
of fair value of warrant liability
|
|
0.00
|
|
(0.04)
|
|
(0.01)
|
|
(0.06)
|
Non-GAAP income per
share of common stock
attributable to the Company
|
|
0.18
|
|
0.10
|
|
0.30
|
|
0.21
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares
outstanding
|
|
|
|
|
|
|
|
|
-Basic
|
|
15,103,007
|
|
15,101,679
|
|
15,102,121
|
|
15,098,479
|
-Diluted
|
|
15,115,409
|
|
15,148,887
|
|
15,104,914
|
|
15,367,542
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/highpower-international-reports-financial-results-for-the-third-quarter-and-nine-months-ended-september-30-2016-300359890.html
SOURCE Highpower International, Inc.