Company to Host Conference Call on March 28, 2017
Intends to Move on from Previously Announced Framework
Agreement To Focus on Core Operations
SAN FRANCISCO and SHENZHEN, China, March
7, 2017 /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 that the
Company expects improved financial results for its fourth quarter
and year ended December 31,
2016. Highpower is providing this information in advance of
its participation in an upcoming investor conference and prior to
meetings with existing and potential shareholders in the United States.
2016 Fourth Quarter and Year End Expectations (unaudited
data)
Revenue
For the fourth quarter of 2016, the Company expects revenue to
be approximately $53.9 million,
which represents a 42.3% increase from the prior year period.
For year-end 2016, Highpower expects revenue to be approximately
$173.9 million, which represents a
18.9% increase from the prior
year. The increase was largely due to the growing sales of the Company's lithium ion battery
products, coming from some multi-national customers.
Gross Profit
For the fourth quarter of 2016, the Company expects gross profit
to be approximately $10.9 million,
which represents a 64.8% increase from the prior year period.
For year-end 2016, Highpower expects gross profit to be
approximately $38.1 million, which
represents a 36.3% increase from the prior year. The increase in
gross profit is primarily the result of both sales revenue growth
and improved production labor efficiency.
Net Income
For the fourth quarter of 2016, the Company expects net income
attributable to the Company be approximately $1.8 million, which represents a 952.5% increase
from the prior year period. For year-end 2016, Highpower
expects net income attributable to the Company to be approximately
$6.1 million, which represents a
58.7% increase from the prior year. The increase is primarily
the result of both higher revenues and improving gross margin due
to greater sales of lithium batteries as a percentage of the
overall business.
The Company will also provide more financial data when it
reports its full financial results on March
28, 2017.
Update on Previously Announced Non-Binding Cooperation
Framework Agreement
Previously, on August 30, 2016,
the Company's subsidiary, 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,
SZSpringpower and ICON for RMB540
million (approximately $81.0
million), which would have been paid directly to the
subsidiaries and resulted in ACOCholding more than 50% in each PRC
subsidiary. The Framework Agreement included a 90-day exclusivity
provision, which has expired and the company decided to not move
forward.
Conference Call Details
Date /
Time:
|
Thursday, March 28,
2016 at 10:00 a.m. ET / 7:00 a.m. PT
|
Participant Dial-In
Numbers
|
|
(United
States):
|
877-407-3108
|
(International):
|
201-493-6797
|
Webcast
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/q4-2016. 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.
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 expected revenue and net income for the
fourth quarter and year end 2016. 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, that the results are preliminary and unaudited, have
not been reviewed by external auditors and are subject to
completion and, as such, may be revised as a result of management's
further review of the Company's results; that there can be no
assurance that the Company's final results for the period will not
differ from these estimates; that any changes could be material;
the Company may identify items that may require it to make
material adjustments to the preliminary financial information; and
other developments that may arise between now and the time the
financial results are finalized. 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
+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
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visit:http://www.prnewswire.com/news-releases/highpower-international-announces-preliminary-unaudited-2016-fourth-quarter-and-year-end-financial-results-highlighted-by-significantly-improved-revenues-and-net-income-300419211.html
SOURCE Highpower International, Inc.