Highpower International, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported net sales of $71,405,560 compared to $54,142,916 a year ago. Income from operations was $4,343,841 compared to $2,947,016 a year ago. Income before taxes was $6,166,814 compared to $3,319,177 a year ago. Net income attributable to the company was $5,024,193 or $0.32 per diluted share compared to $2,651,306 or $0.18 per basic and diluted share a year ago. EBITDA was $7,342,645 compared to $5,011,048 a year ago. Net sales for the third quarter of 2017 increased by 31.9% to $71.4 million from $54.1 million in the prior year period, primarily attributable to growth in revenue from the Lithium segment. This was driven by increased demand in consumer products including portable power stations, smart wearable devices, smart phones, and notebooks.


For the nine months, the company reported net sales of $164,972,338 compared to $119,972,281 a year ago. Income from operations was $12,134,537 compared to $3,925,790 a year ago. Income before taxes was $14,425,029 compared to $4,925,978 a year ago. Net income attributable to the company was $11,931,079 $0.77 per diluted share compared to $4,360,480 or $0.29 per basic and diluted share a year ago. EBITDA was $18,846,834 compared to $10,126,629 a year ago. Net cash flows used in operating activities was $5,577,425 compared to net cash flows provided by operating activities of $7,177,299 a year ago. Acquisitions of property, plant and equipment was $7,297,901 compared to $8,474,440 a year ago. Book value per share as on September 30, 2017 was $3.94 compared to $3.00 as on December 31, 2017. Net sales increased 37.5% to $165.0 million in the first nine months ended September 30, 2017 as compared to $120.0 million in the same period 2016. The increase was also driven by growth in the Lithium segment due to increased demand in consumer products including portable power stations, smart wearable devices, smart phones, and notebooks.

For the fourth quarter of 2017, the company expects net revenues to grow 12.0% year-over-year. Factoring in the impact of higher expected raw material prices, gross margin is expected to be between 16.0% and 17.0% in the fourth quarter of 2017.

For full year 2018, the company expects net revenues to grow at least 20.0% compared to 2017 and gross margin levels to exceed that of the fourth quarter of 2017.