Highpower International, Inc., 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 that it received RMB 71.0 million (approximately $10.5 million) on July 27th from Xiamen Jiupai Yuanjiang New Power Equity Investment Partnership ("New Power") in relation to the previously announced Huizhou Yipeng Energy Technology Co., Ltd equity transfer agreement. Pursuant to the terms of the agreement signed on May 5, 2017, Highpower will transfer 29.58% of its shares to New Power and New Power will invest RMB 60 million for a 20% stake in Yipeng. The transaction has been completed, and Highpower's remaining stake in Yipeng is 4.65%.
Highpower, as a major and long term partner with Yipeng, will maintain its strategic cooperation in supplying power cells to Yipeng. The two parties signed an agreement in July for over 2,000 PHEV and EV bus power cells with sales reaching an estimated $12.0 million for the remainder of 2017.
Mr. George Pan, Chairman and CEO of Highpower International commented, "The equity transfer transaction enables Highpower to further invest in research and development and to boost production capacity for our products, including power cells for electric vehicles. Through continued investment in the research and development of cells, Highpower continues to focus on providing clients and consumers safe, reliable, and consistent cell products. With growing market demand and our successful field experience accumulated over the last five years, we are well positioned to advance our technology and core cell business expansion. We are excited by this opportunity to supply power cells for over 2,000 PHEV and EV buses for the remainder of the year, which will further strengthen our market position as a quality supplier to industry leaders."
Mr. Sunny Pan, CFO of Highpower International commented, "We are pleased to have the equity transfer transaction closed. Pursuant to the announcement on May 5, 2017, Highpower's benefits from the transaction include:
Highpower's competitive edge lies in our cell technology and manufacturing capabilities, and we are focused on strengthening our core cell business including Ni-MH and Li-ion batteries. By adhering to our development strategy, we are well positioned to capture the opportunities associated with the growing demand for high-quality cells, Highpower's principal strength."
Source: Highpower International
Date: Jul 28, 2017