Highpower International, Inc. announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company's net sales increased by 47.0% to USD 79.2 million from USD 53.9 million in the prior year period, primarily attributable to growth in revenue from the Lithium segment. This was driven by continued increasing demand for consumer electronics, including portable power stations, smart wearable devices, smart phones, and notebooks. EBITDA increased by 136.5% to USD 9.0 million from USD 3.8 million. Net income attributable to the company was USD 4.8 million, or USD 0.31 per diluted share, as compared to USD 1.8 million, or USD 0.12 per diluted share.

For the year, the company's net sales increased 40.4% to USD 244.2 million compared to USD 173.9 million in 2016. The increase was driven by growth in the Lithium segment as well as growth in the GZ Highpower business. Excluding GZ Highpower, net sales increased 27.2% to USD 215.9 million from USD 169.7 million. Income from operations was USD 12,577,026 compared to USD 5,723,343 a year ago. Income before income taxes was USD 21,529,221 compared to USD 7,066,954 a year ago. Net income was USD 17,213,896 compared to USD 5,627,777 a year ago. Net income attributable to the company was USD 16,772,852 or USD 1.09 per basic and diluted share compared to USD 6,117,927 or USD 0.40 per diluted share a year ago. Net cash used in operating activities was USD 4,082,687 compared to net cash provided by operating activities of USD 4,794,812 a year ago. Acquisitions of plant and equipment were USD 13,730,328 compared to USD 8,487,473 a year ago. EBITDA were USD 27,805,704 compared to USD 13,914,754 a year ago.

For the first quarter of 2018, the company expected net revenues to grow over 10% year over year excluding Ganzhou Highpower impact. Factoring in the impact of expected, continued high raw material prices, gross margin is expected to be between 15% and 17% due to lower volume in first quarter by seasonality impact.

For the full year 2018, the company expects net revenues to grow at least 20% compared to 2017 and gross margin levels to exceed that of the fourth quarter of 2017 excluding Ganzhou Highpower impact.