SAN FRANCISCO and SHENZHEN, China, Aug.
10, 2015 /PRNewswire/ -- Highpower International, Inc.
(NASDAQ: HPJ), 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 its financial results for the second
quarter and six months ended June 30,
2015.
2015 Second Quarter Operating and Financial Highlights (all
results are compared to prior year period)
- Net sales were $38.6 million, an
increase of 1.3% from $38.1
million.
- Lithium battery net sales increased 26.0% to $22.1 million from $17.5
million. Nickel-metal hydride (Ni-MH) net sales decreased
17.6% to $15.8 million from
$19.2 million.
- Gross margin was 22.2% compared to 20.3%.
- EBITDA was $3.3 million, an
increase of 36.6% from $2.4 million;
Adjusted EBITDA improved to $3.5
million, compared to $2.8
million.
- Net income attributable to the Company was $1.9 million, or $0.12 per diluted share, an increase of 129.8%
from net income of $0.8 million, or
$0.05 per diluted share; non-GAAP net
income attributable to the Company was $2.1
million, or $0.13 per diluted
share, compared to $1.3 million, or
$0.08 per diluted share.
- Received Best Design Award at the 5th China International
Energy Storage Conference and Exhibition.
- Awarded 100 KWh energy storage project from China Southern
Power Grid.
- Selected by Seiko for wearable battery solutions.
- Granted U.S. patent for new safety technology, with a total of
149 patents.
Management Commentary
Mr. George Pan, Chairman and CEO
of Highpower International, commented, "Revenue growth of lithium
battery products was driven by continuous global demand for mobile
devices as well as the electric bus market in China, offset by a more challenging
environment for nickel-metal hydride business. We continue to
leverage the flexibility of our operations to take advantage of
these trends in the marketplace, and our ability to manufacture
lithium battery products to a wide variety of customers largely
drove our double-digit increases for the quarter. This led to
overall top-line improvement despite lower Ni-MH sales as a result
of commodity-driven pricing pressures. We have made progress
towards further improving the Company's profitability through lean
manufacturing, and delivered improved gross and operating margins.
We also plan to commercialize portable energy storage systems in
the international market by the end of year, and to channel all of
our attention on positioning Highpower for sustainable and
profitable growth."
2015 Second Quarter Financial Review
Net Sales
Net sales for the second quarter ended June 30, 2015 were $38.6
million compared to $38.1
million for the same period in 2014. The 1.3% increase in
net sales compared to the same period in 2014 was mainly due to a
$4.6 million improvement in net sales
of Lithium batteries, offset by a decline of $3.4 million in sales of Ni-MH batteries and
$0.7 million in sales of new material
business.
Net sales for the six months ended June
30, 2015 were $70.8 million,
an increase of 5.2% compared to $67.3
million for the same prior year period. This increase was
attributable to an increase of $8.0
million in sales of Lithium batteries, offset by a
$4.1 million decrease in net sales of
Ni-MH batteries and $0.4 million
decrease in new material business.
Gross Profit
For the second quarter ended June 30,
2015, the Company's gross profit was $8.6 million, an increase of 10.8% from
$7.7 million for the same period in
2014.
For the six months ended June 30,
2015, the Company's gross profit was $14.1 million, an increase of 3.4% from
$13.7 million for the same period
in 2014.
Gross Margin
Gross margin was 22.2% for the second quarter ended June 30, 2015, compared to 20.3% for the same
period in 2014. This increase was attributed to a decrease in the
average price of battery materials (nickel) and higher sales of
lithium batteries, offset by a negative gross profit from new
materials as it ramps up operations.
Gross margin for the six months ended June 30, 2015 was 20.0%, as compared with 20.3%
for the same period in 2014. The decrease was due to decrease in
the average selling price of products.
Net sales, cost of sales, and gross profit by segment is set out
as follows:
|
Three months
ended June 30,
|
|
Six months
ended June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
$
|
|
$
|
Changes in
%
|
$
|
|
$
|
Changes in
%
|
Net
sales
|
|
|
|
|
|
|
|
|
Ni-MH
Batteries
|
15,775,426
|
|
19,153,435
|
-17.6%
|
30,534,896
|
|
34,640,938
|
-11.9%
|
Lithium
Batteries
|
22,066,302
|
|
17,511,963
|
26.0%
|
38,886,930
|
|
30,902,207
|
25.8%
|
New
Materials
|
794,073
|
|
1,469,238
|
-46.0%
|
1,351,623
|
|
1,751,805
|
-22.8%
|
Total
|
38,635,801
|
|
38,134,636
|
1.3%
|
70,773,449
|
|
67,294,950
|
5.2%
|
|
|
|
|
|
|
|
|
|
Cost of
Sales
|
|
|
|
|
|
|
|
|
Ni-MH
Batteries
|
11,850,483
|
|
15,224,391
|
-22.2%
|
23,565,936
|
|
27,514,189
|
-14.3%
|
Lithium
Batteries
|
17,307,091
|
|
13,877,599
|
24.7%
|
31,640,483
|
|
24,580,425
|
28.7%
|
New
Materials
|
914,467
|
|
1,303,155
|
-29.8%
|
1,447,556
|
|
1,539,900
|
-6.0%
|
Total
|
30,072,041
|
|
30,405,145
|
-1.1%
|
56,653,975
|
|
53,634,514
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
|
|
|
|
Ni-MH
Batteries
|
3,924,943
|
|
3,929,044
|
-0.1%
|
6,968,960
|
|
7,126,749
|
-2.2%
|
Lithium
Batteries
|
4,759,211
|
|
3,634,364
|
31.0%
|
7,246,447
|
|
6,321,782
|
14.6%
|
New
Materials
|
(120,394)
|
|
166,083
|
-172.5%
|
(95,933)
|
|
211,905
|
-145.3%
|
Total
|
8,563,760
|
|
7,729,491
|
10.8%
|
14,119,474
|
|
13,660,436
|
3.4%
|
Net sales by geography is set out as follows:
|
Three months
ended
|
|
Six months
ended
|
June
30,
|
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Net
sales
|
|
|
|
|
|
|
|
China
Mainland
|
49.9%
|
|
52.2%
|
|
47.1%
|
|
51.2%
|
Asia,
others
|
30.1%
|
|
22.8%
|
|
31.2%
|
|
21.2%
|
Europe
|
14.9%
|
|
18.5%
|
|
16.3%
|
|
20.0%
|
North
America
|
4.6%
|
|
5.9%
|
|
4.7%
|
|
6.8%
|
Others
|
0.5%
|
|
0.6%
|
|
0.7%
|
|
0.8%
|
Total:
|
100.0%
|
|
100.0%
|
|
100.0%
|
|
100.0%
|
Research and Development (R&D)
R&D expenses were $2.0
million, or 5.2% of net sales, for both the second quarter
ended June 30, 2015 and for the same
period in 2014.
For the six months ended June 30,
2015, R&D expenses were $3.7
million, or 5.2% of net sales, compared to $3.8 million, or 5.6% of net sales, for the same
period in 2014.
Selling & Distribution
Selling and distribution expenses were $1.6 million, or 4.1% of net sales, for the
second quarter ended June 30,
2015, compared to $1.6 million,
or 4.2% of net sales, for the same period in 2014.
For the six months ended June 30,
2015, selling and distribution expenses were $3.4 million, or 4.8% of the net sales, compared
to $3.1 million, or 4.6% of net
sales, for the same period in 2014.
General & Administrative
General and administrative expenses were $3.4 million, or 8.9% of net sales, for the
second quarter ended June 30, 2015,
compared to $3.3 million, or 8.7% of
net sales, for the same period in 2014.
For the six months ended June 30,
2015, general and administrative expenses were $6.4 million, or 9.1% of net sales, compared to
$6.9 million, or 10.2% of net sales,
for the same period in 2014.
Net Income
For the second quarter of 2015, net income attributable to the
Company was $1.9 million, or
$0.12 per diluted share based on 15.4
million weighted average diluted shares outstanding, compared to
net income of $0.8 million, or
$0.05 per diluted share based on 15.3
million weighted average diluted shares outstanding. Non-GAAP net
income attributable to the Company was $2.1
million, or $0.13 per diluted
share, compared to a non-GAAP net income of $1.3 million, or $0.08 per diluted share, in the prior year
period.
For the six months ended June 30,
2015, net income attributable to the Company was
$1.7 million, or $0.12 per diluted share based on 15.5 million
weighted average diluted shares outstanding, compared to net loss
of $0.1 million, or $0.01 per diluted share based on 14.4 million
weighted average diluted shares outstanding. Non-GAAP net income
attributable to the Company was $1.7
million, or $0.11 per diluted
share, compared to a non-GAAP net income of $0.7 million, or $0.05 per diluted share, in the prior year
period.
EBITDA
EBITDA for the second quarter ended June
30, 2015 improved to $3.3
million from $2.4 million in
the prior year period. EBITDA for first half of 2015 increased
67.6% to $4.5 million from
$2.7 million for the six months ended
June 30, 2014.
A table reconciling EBITDA, a non-GAAP (Generally Accepted
Accounting Principles) financial measure, to the appropriate GAAP
measure is included with the Company's financial information
below.
Balance Sheet Highlights
($ in millions,
except per share data)
|
|
June
30,
|
|
December
31,
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
|
|
|
$
|
|
$
|
Cash and Cash
Equivalents
|
|
$3.7
|
|
$14.6
|
Restricted
cash
|
|
$12.8
|
|
$15.4
|
Total Current
Assets
|
|
$ 84.0
|
|
$89.2
|
Total
Assets
|
|
$142.4
|
|
$146.2
|
|
|
|
|
|
Total Current
Liabilities
|
|
$97.0
|
|
$101.4
|
Total
Liabilities
|
|
$98.6
|
|
$104.4
|
|
|
|
|
|
Shareholders'
Equity
|
|
$43.8
|
|
$41.8
|
Total Liabilities and
Shareholders' Equity
|
|
$142.4
|
|
$146.2
|
Book Value Per
Share
|
|
$2.90
|
|
$2.77
|
Outlook for 2015
Based on current expectations for global demand in the
rechargeable battery market in 2015 and the continued trends toward
mobile power sources, higher-value energy storage systems and
transportation products, the Company is reaffirming its 2015
guidance of revenues to be between $160
million to $170 million, and non-GAAP net income of between
$5.0 million and $6.0 million, and
net income of between $4.0 million and $5.0
million.
Conference Call Details
The Company announced that it will discuss financial results in
a conference call on August 10, 2015
at 10:00 a.m. Eastern Time /
7:00 a.m. Pacific time to discuss
these results.
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/q2-2015. This webcast
will be archived and accessible through the Company's website for
approximately 30 days following the call. The Company will also
have an accompanying slide presentation available in PDF format on
its homepage prior to the conference 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 10 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 (adjusted) net income or (loss) exclude
stock-based compensation expense. Adjusted EBITDA, as defined
above, 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.
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,
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 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
successfully commercialize portable energy storage systems in the
international market by the end of year 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.
Henry Sun
CFO
+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
(LOSS)
(Stated in US
Dollars except Number of Shares)
|
|
|
Three months
ended
|
|
Six months
ended
|
June
30,
|
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
Net sales
|
38,635,801
|
|
38,134,636
|
|
70,773,449
|
|
67,294,950
|
Cost of
sales
|
(30,072,041)
|
|
(30,405,145)
|
|
(56,653,975)
|
|
(53,634,514)
|
Gross
profit
|
8,563,760
|
|
7,729,491
|
|
14,119,474
|
|
13,660,436
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
(1,997,494)
|
|
(1,976,965)
|
|
(3,671,618)
|
|
(3,788,917)
|
Selling and
distribution expenses
|
(1,597,564)
|
|
(1,587,726)
|
|
(3,396,286)
|
|
(3,124,886)
|
General and
administrative expenses
|
(3,423,770)
|
|
(3,312,296)
|
|
(6,448,521)
|
|
(6,883,576)
|
Foreign currency
translation gain
|
73,546
|
|
247,102
|
|
443,857
|
|
349,695
|
Gain (loss) on
derivative instruments
|
-
|
|
21,147
|
|
-
|
|
(116,134)
|
Total operating
expenses
|
(6,945,282)
|
|
(6,608,738)
|
|
(13,072,568)
|
|
(13,563,818)
|
|
|
|
|
|
|
|
|
Income from
operations
|
1,618,478
|
|
1,120,753
|
|
1,046,906
|
|
96,618
|
|
|
|
|
|
|
|
|
Gain on change of
fair value of warrant liability
|
84,833
|
|
74,548
|
|
431,132
|
|
74,548
|
Other
income
|
357,055
|
|
361,954
|
|
587,147
|
|
903,374
|
Interest
expenses
|
(275,476)
|
|
(474,162)
|
|
(544,118)
|
|
(1,069,543)
|
Income before
taxes
|
1,784,890
|
|
1,083,093
|
|
1,521,067
|
|
4,997
|
|
|
|
|
|
|
|
|
Income taxes benefit
(expenses)
|
(18,840)
|
|
(281,364)
|
|
76,416
|
|
(189,213)
|
Net income
(loss)
|
1,766,050
|
|
801,729
|
|
1,597,483
|
|
(184,216)
|
|
|
|
|
|
|
|
|
Less: net loss
attributable to non-controlling interest
|
(101,074)
|
|
(10,769)
|
|
(146,283)
|
|
(61,565)
|
Net income (loss)
attributable to the Company
|
1,867,124
|
|
812,498
|
|
1,743,766
|
|
(122,651)
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
|
|
|
|
|
|
|
Net income
(loss)
|
1,766,050
|
|
801,729
|
|
1,597,483
|
|
(184,216)
|
Foreign currency
translation income (loss)
|
206,027
|
|
(19,936)
|
|
1,266
|
|
(361,122)
|
Comprehensive income
(loss)
|
1,972,077
|
|
781,793
|
|
1,598,749
|
|
(545,338)
|
|
|
|
|
|
|
|
|
Less: comprehensive
loss attributable to non-controlling interest
|
(95,376)
|
|
(11,294)
|
|
(144,549)
|
|
(72,727)
|
Comprehensive income
(loss) attributable to the Company
|
2,067,453
|
|
793,087
|
|
1,743,298
|
|
(472,611)
|
|
|
|
|
|
|
|
|
Income (loss) per
share of common stock attributable to the Company
|
|
|
|
|
|
|
|
- Basic
|
0.12
|
|
0.05
|
|
0.12
|
|
(0.01)
|
- Diluted
|
0.12
|
|
0.05
|
|
0.11
|
|
(0.01)
|
|
|
|
|
|
|
|
|
Weighted average
number of common stock outstanding
|
|
|
|
|
|
|
|
- Basic
|
15,094,979
|
|
14,853,219
|
|
15,091,639
|
|
14,415,662
|
- Diluted
|
15,441,576
|
|
15,277,743
|
|
15,469,274
|
|
14,415,662
|
HIGHPOWER
INTERNATIONAL, INC.AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Stated in US
Dollars except Number of Shares)
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
|
|
(Unaudited)
|
|
|
|
|
$
|
|
$
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
3,739,259
|
|
14,611,892
|
|
Restricted
cash
|
|
12,826,121
|
|
15,396,827
|
|
Accounts receivable,
net
|
|
33,148,160
|
|
32,316,607
|
|
Notes
receivable
|
|
2,271,470
|
|
621,110
|
|
Prepayments
|
|
5,587,678
|
|
3,283,520
|
|
Other
receivables
|
|
712,666
|
|
665,828
|
|
Inventories
|
|
25,699,805
|
|
22,268,069
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
83,985,159
|
|
89,163,853
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
51,729,322
|
|
50,437,718
|
|
Land use right,
net
|
|
4,263,472
|
|
4,305,317
|
|
Intangible asset,
net
|
|
575,000
|
|
600,000
|
|
Deferred tax
assets
|
|
1,880,410
|
|
1,647,184
|
|
|
|
|
|
|
|
142,433,363
|
|
146,154,072
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
43,126,718
|
|
44,562,647
|
|
Deferred
income
|
|
1,890,464
|
|
1,887,409
|
|
Short-term
loan
|
|
9,147,609
|
|
15,195,040
|
|
Notes
payable
|
|
33,259,448
|
|
29,903,248
|
|
Other payables and
accrued liabilities
|
|
6,222,543
|
|
5,896,547
|
|
Income taxes
payable
|
|
1,396,467
|
|
1,968,656
|
|
Current portion of
long-term loan
|
|
1,962,420
|
|
1,959,248
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
97,005,669
|
|
101,372,795
|
|
|
|
|
|
|
|
Warrant
Liability
|
|
636,542
|
|
1,067,674
|
|
Long-term
loan
|
|
981,209
|
|
1,959,247
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
98,623,420
|
|
104,399,716
|
|
|
|
|
|
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, 15,101,679 shares issued and
outstanding
at June 30, 2015 and 15,084,746 shares issued and outstanding at
December 31, 2014)
|
|
1,510
|
|
1,508
|
|
Additional paid-in
capital
|
|
10,987,266
|
|
10,530,430
|
|
Statutory and other
reserves
|
|
3,611,501
|
|
3,611,501
|
|
Retained
earnings
|
|
22,418,787
|
|
20,675,021
|
|
Accumulated other
comprehensive income
|
|
5,628,189
|
|
5,628,657
|
|
|
|
|
|
Total equity for the
Company's stockholders
|
|
42,647,253
|
|
40,447,117
|
|
|
|
|
|
Non-controlling
interest
|
|
1,162,690
|
|
1,307,239
|
|
|
|
|
|
TOTAL
EQUITY
|
|
43,809,943
|
|
41,754,356
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
142,433,363
|
|
146,154,072
|
HIGHPOWER
INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Stated in US
Dollars)
|
|
|
Six months
ended June 30,
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
(Unaudited)
|
|
$
|
|
$
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
1,597,483
|
|
(184,216)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
2,535,695
|
|
2,053,486
|
Allowance for
doubtful accounts
|
896
|
|
266
|
Loss on disposal of
property, plant and equipment
|
79,692
|
|
151,237
|
Gain on derivative
instruments
|
-
|
|
130,948
|
Deferred income
tax
|
(230,050)
|
|
(549,140)
|
Share based
payment
|
412,304
|
|
916,244
|
Gain on change of
fair value of warrant liability
|
(431,132)
|
|
(74,548)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(787,672)
|
|
159,094
|
Notes
receivable
|
(1,645,051)
|
|
(1,560,871)
|
Prepayments
|
(2,292,844)
|
|
(1,200,028)
|
Other
receivable
|
(45,640)
|
|
253,843
|
Inventories
|
(3,386,818)
|
|
(1,086,899)
|
Accounts
payable
|
(1,503,555)
|
|
6,887,622
|
Deferred
income
|
-
|
|
1,009,295
|
Other payables and
accrued liabilities
|
315,942
|
|
(2,175,844)
|
Income taxes
payable
|
(573,875)
|
|
88,688
|
Net cash flows
(used in) provided by operating activities
|
(5,954,625)
|
|
4,819,177
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisition of plant
and equipment
|
(4,047,717)
|
|
(3,503,027)
|
Net cash flows
used in investing activities
|
(4,047,717)
|
|
(3,503,027)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
short-term bank loans
|
-
|
|
9,611,198
|
Repayment of
short-term bank loans
|
(6,062,248)
|
|
(14,367,008)
|
Repayment of
long-term bank loans
|
(978,649)
|
|
(976,737)
|
Proceeds from notes
payable
|
30,931,015
|
|
21,753,902
|
Repayment of notes
payable
|
(27,631,861)
|
|
(25,195,047)
|
Proceeds from
exercise of employee options
|
44,534
|
|
-
|
Proceeds from
issuance of capital stock, net
|
-
|
|
4,633,164
|
Change in restricted
cash
|
2,588,730
|
|
8,316,169
|
Net cash flows
(used in) provided by financing activities
|
(1,108,479)
|
|
3,775,641
|
Effect of foreign
currency translation on cash and cash equivalents
|
238,188
|
|
(244,829)
|
Net (decrease)
increase in cash and cash equivalents
|
(10,872,633)
|
|
4,846,962
|
Cash and cash
equivalents - beginning of period
|
14,611,892
|
|
7,973,459
|
Cash and cash
equivalents - end of period
|
3,739,259
|
|
12,820,421
|
|
|
|
|
Supplemental
disclosures for cash flow information:
|
|
|
|
Cash paid
for:
|
|
|
|
Income
taxes
|
727,509
|
|
649,665
|
Interest
expenses
|
615,363
|
|
1,061,904
|
Non-cash
transactions
|
|
|
|
Accounts payable for
construction in progress
|
-
|
|
794,356
|
Offset of deferred
income and property, plant and equipment
|
-
|
|
669,668
|
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
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Net income (loss)
attributable to the Company
|
1,876,124
|
|
812,498
|
|
1,743,766
|
|
(122,651)
|
Non-GAAP Net
Income (1)
|
|
2,073,234
|
|
1,253,248
|
|
1,724,938
|
|
719,045
|
|
|
|
|
|
|
|
|
|
Interest expenses,
net
|
|
110,262
|
|
270,351
|
|
342,832
|
|
592,500
|
Income tax
expenses
|
|
18,840
|
|
281,364
|
|
(76,416)
|
|
189,213
|
Depreciation and
Amortization
|
|
1,289,652
|
|
1,041,685
|
|
2,535,695
|
|
2,053,486
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
3,285,878
|
|
2,405,898
|
|
4,545,877
|
|
2,712,548
|
Non-GAAP
EBITDA(2)
|
|
3,491,988
|
|
2,846,648
|
|
4,527,049
|
|
3,554,244
|
|
(1) See table below
for reconciliation of net income (loss) attributable to the Company
to Non-GAAP net income attributable to the Company.
(2) Excludes
share-based compensation expense and 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 except Number of Shares)
|
|
Reconciliation of
Net Income (Loss) Attributable to the Company to Non-GAAP Net
Income Attributable to the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
June
30,
|
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Net income (loss)
attributable to the Company
|
|
1,867,124
|
|
812,498
|
|
1,743,766
|
|
(122,651)
|
Stock-based
compensation expense
|
|
290,943
|
|
515,298
|
|
412,304
|
|
916,244
|
Gain on change of
fair value of warrant liability
|
|
(84,833)
|
|
(74,548)
|
|
(431,132)
|
|
(74,548)
|
Non-GAAP net income
attributable to the Company
|
|
2,073,234
|
|
1,253,248
|
|
1,724,938
|
|
719,045
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share of common stock
attributable to the Company
|
|
0.12
|
|
0.05
|
|
0.12
|
|
(0.01)
|
Stock-based
compensation expense
|
|
0.02
|
|
0.03
|
|
0.03
|
|
0.06
|
Gain on change of
fair value of warrant liability
|
|
-
|
|
-
|
|
(0.03)
|
|
-
|
Non-GAAP income per
share of common stock attributable to t
he Company
|
|
0.14
|
|
0.08
|
|
0.12
|
|
0.05
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per share of common stock
attributable to the Company
|
|
0.12
|
|
0.05
|
|
0.11
|
|
(0.01)
|
Stock-based
compensation expense
|
|
0.02
|
|
0.03
|
|
0.03
|
|
0.06
|
Gain on change of
fair value of warrant liability
|
|
(0.01)
|
|
-
|
|
(0.03)
|
|
-
|
Non-GAAP income per
share of common stock attributable to
the Company
|
|
0.13
|
|
0.08
|
|
0.11
|
|
0.05
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
-Basic
|
|
15,094,979
|
|
14,853,219
|
|
15,091,639
|
|
14,415,662
|
-Diluted
|
|
15,441,576
|
|
15,277,743
|
|
15,469,274
|
|
14,415,662
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/highpower-international-reports-financial-results-for-the-second-quarter-and-six-months-ended-june-30-2015-300125932.html
SOURCE Highpower International, Inc.