Highpower International, Inc. (NASDAQ: HPJ) Reports Unaudited 1Q 2k19 Financial Results

Highpower International, Inc. (NASDAQ: HPJ) (“Highpower” 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 its financial results for the  1Q ended March 31, 2k19.

 1Q 2k19 Highlights (all results compared to a prior year period)

  • Net sales for the  1Q of 2k19 increased 16.700percent to $58.100 M from $49.8 00M.
  • Lithium business net sales increased 16.8percent to $42.700 M from $36.600 M.
  • Gross margin increased to 21.8percent of net sales compared to 15.200percent.
  • Net income attributable to the Company was $0.300 M, or earnings of $0.0200 per diluted share, compared to a net loss attributable to the Company of $1.100 M, or loss of $0.0700 per diluted share.

 

 1Q 2k19 Financial Results

Net Sales

Net sales for the  1Q of 2k19 increased 16.700percent to $58.100 M from $49.800 M in the prior year period. The Company’s lithium segment grew 16.800percent year over year, and the NiMH batteries and accessories segment grew 16.700percent year over year.

Gross Profit

Gross profit for the  1Q of 2k19 increased 67.300percent to $12.700 M from $7.600 M in the prior year period. Gross margin was 21.800percent compared to 15.200percent in the prior year period.

Operating Expenses

  • Research and development (R&D) expenses were $3.000 M compared to $2.600 M in the prior year period. As a percentage of net sales, R&D expenses remained steady at 5.100percent from the prior year period.
  • Selling and distribution expenses were $2.800 M compared to $2.000 M in the prior year period. As a percentage of net sales, selling and distribution expenses increased to 4.800percent from 4.000percent in the prior year period. The increase was mainly driven by expanded business scale, including marketing expenses for more brand customers.
  • General and administrative expenses were $4.800 M compared to $4.100 M in the prior year period. As a percentage of net sales, general and administrative expenses remained at 8.300percent from the prior year period.

Net Income

Net income attributable to the Company for the  1Q of 2k19 was $0.3 M compared to a net loss of $1.100 M in the prior year period. Net income attributable to the Company per diluted share for the  1Q of 2k19 was $0.0200 compared to a net loss attributable to the Company per diluted share of $0.0700 in the prior year period.

For the quarter ended March 31, 2k19, the Company’s weighted average diluted shares outstanding used in computing diluted share was 15,604,907. 00

EBITDA

EBITDA for the  1Q of 2k19 increased 374.600percent to $2.8 vM from $0.600 M in the prior year period.

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