SAN DIEGO and SHENZHEN, China, December 15, 2017 /PRNewswire/ -- Highpower
International, Inc. (NASDAQ: HPJ) ("Highpower International" 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 that its subsidiary, Ganzhou Highpower Technology Co.,
Ltd. ("Ganzhou Highpower"), has signed an agreement to receive a
total of RMB 92.76 million
(approximately USD $14.16 million),
including RMB 78.85 million
(approximately USD $12.04 million)
from Xiamen Tungsten Co., Ltd. ("Xiamen Tungsten"), in exchange for
47% ownership of Ganzhou Highpower, and RMB
13.91 million (approximately USD $2.12 million) from Mr. Hancheng Ou, the General Manager of Ganzhou
Highpower, in exchange for 8.29% ownership of Ganzhou Highpower. In
a separate transaction related to the agreement, Mr. Hancheng Ou will invest RMB 2.25 million (approximately USD $340,000 ) to receive shares from another
individual shareholder. After the execution of this agreement, Mr.
Hancheng Ou will increase his shares
of Ganzhou Highpower from 6.71% to 16.34%. This transaction was
initially made public on August 10,
2017, within the press release announcing Highpower's
unaudited second quarter and first half 2017 financial results.
Mr. George Pan, Chairman and CEO
of Highpower International, commented, "We are pleased to welcome
Xiamen Tungsten, one of our top suppliers of NiMH and Lithium ion
battery materials, as a new strategic partner and shareholder of
our subsidiary, Ganzhou Highpower. Xiamen Tungsten is a leading
battery material provider and has many years of material recycling
and processing experience, which will help Ganzhou Highpower
strengthen its recycling technology and expand its material
procurement and sales capabilities. In addition to the technology
and marketing advantages, Xiamen Tungsten's investment will
also help increase Ganzhou Highpower's capacity utilization. Under
this new partnership with Xiamen Tungsten, we will be able to
improve our relationship with a key supplier, grow our top and
bottom lines by expanding the scale of our battery recycling
business, and invest in our future growth by leveraging Xiamen
Tungsten's expertise in material recovery processing. We will be
able to support the growth of our third business line, enhance our
competitive advantage for future growth in this high-potential
market, and capitalize on the opportunities ahead to achieve rapid
growth in the future."
"Furthermore, RMB 40 million
(approximately USD $6.1 million) of
the proceeds will be returned to Highpower International in the
form of repayments of loans and related interests that were
previously extended to Ganzhou Highpower by Highpower
International. These funds will allow us to upgrade our technology
and continue investing in our research and development efforts,
ultimately leading to further improvements in our competitive
position in our core business," Mr. Pan concluded.
Prior to the signing of this agreement, Shenzhen Highpower
Technology Co., Ltd. held 70% of Ganzhou Highpower's equity. After
the capital increase, Shenzhen Highpower Technology Co., Ltd. will
hold 31% of Ganzhou Highpower's equity.
About Xiamen Tungsten Co., Ltd.
Xiamen Tungsten Co., Ltd. (XTC) is a public company listed on
the Shanghai Stock Exchange. Its predecessor, Xiamen Alumina Plant,
was founded in 1958. In 1982, Xiamen Alumina Plant started tungsten
business, and two years later, the plant was renamed Xiamen
Tungsten Products Plant. In December of 1997, Xiamen Tungsten
Products Plant initiated a company reform by way of private
offering of shares and changed its name to Xiamen Tungsten Co.,
Ltd. (XTC). In November of 2002, XTC became a listed corporation on
the Shanghai Stock Exchange.
By the end of 2015, XTC owned 20 subsidiary companies, 1 Branch
Company, 1 China National R&D Center for Tungsten Technology, 1
Rare Earth and New Energy Material Research Center, and 2
Post-doctoral Working Stations. XTC is one of the National Key New
& High-tech Enterprises, one of the Tungsten Material
Industrial Base of National Torch Program, one of the First
National Developing Circular Economy Model Enterprises, as well as
one of the six major Rare Earth Corporations in China. XTC's business covers tungsten,
molybdenum, rare earth, new energy material, real estate etc.
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. Such forward-looking statements include the
anticipated benefits of the equity transaction with Xiamen Tungsten
for both Ganzhou Highpower and Highpower International. 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 sufficiently scale our battery recycling
business; unforeseen factors that prevent us from obtaining the
anticipated benefits from the Xiamen Tungsten investment in Ganzhou
Highpower inability to successfully expand our production capacity;
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; and our ability to continue and improve
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: yuanmei@highpowertech.com
ICR, Inc.
Rose Zu
Tel: +1-646-931-0303
Email: ir@highpowertech.com
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SOURCE Highpower International, Inc.