Highpower International, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company reported net sales of USD 49,783,453 compared to USD 41,866,848 a year ago, The increase was driven by sales of the Company's lithium business, which grew 33.1%, or USD 9.1 million, during the quarter. Excluding the impact of GZ Highpower, net sales increased 24.1% to USD 49.8 million from USD 40.1 million. Loss from operations was USD 2,100,109 compared to income from operations of USD 3,110,151 a year ago. Loss before taxes was USD 1,128,615 compared to profit before taxes of USD 3,200,307 a year ago. Net loss attributable to the company was USD 1,118,936 compared to net income attributable to the company of USD 2,535,649 a year ago. Basic and diluted loss per share was USD 0.07 compared to basic and diluted earnings per share of USD 0.17 a year ago. Acquisitions of property, plant and equipment was USD 1,553,979 against USD 2,873,489 a year ago. Net cash used in operating activities was USD 5,500,843 against net cash flows provided by operating activities of USD 1,083,042 a year ago. EBITDA was USD 588,465 compared to USD 5,001,065 a year ago. Book value per share was USD 4.46 as on March 31, 2018.

For the second quarter of 2018, the company expects net revenues to grow over 30% year over year. Factoring in the impact of expected, continued high raw material prices, gross margin is expected to be similar or slightly lower than first quarter of 2018.

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 first quarter of 2018.