Highpower International, Inc. (NASDAQ: HPJ) lost strength Monday, after reporting Q4 earnings of $0.31 per share on sales of $79.2 million.
Net sales for the fourth quarter of 2017 increased by 47.0% to $79.2 million from $53.9 million in the prior-year quarter Gross profit increased by 8.4% to $11.8 million from $10.9 million. EBITDA increased by 136.5% to $9.0 million from $3.8 million. Net income was $4.8 million, as compared to $1.8 million, or $0.12 per diluted share.
In December, the China-based company, with offices in San Diego, announced the investment of $14.3 million in its majority-owned subsidiary GZ Highpower from Xiamen Tungsten Co., Ltd. for a total of $12.1 million and $2.2 million, respectively.
This transaction brought the Company's ownership of GZ Highpower down to 31.3%. Due to the loss of controlling power in GZ Highpower, the Company deconsolidated GZ Highpower accordingly. Key financial items excluding GZ Highpower are presented on an annual basis for comparison purposes.
Highpower CEO George Pan commented, "We are pleased to report top-line performance that beat our guidance for both the fourth quarter and full year 2017. In addition, our bottom line, including EBITDA, grew significantly for both the fourth quarter and full year, thanks to continued progress in our efforts to strengthen our product offering, improve our production capacity and efficiency, and maintain an efficient supply chain."
Highpower shares stumbled 30 cents, or 7.8%, to $3.46.
