Highpower Makes Its First Large Scale Entrance Into Chinese Electric Vehicle
(EV) Market With an Order for Large Format Lithium Polymer
Batteries to Be Used in Electric Buses
SAN FRANCISCO, CA and SHENZHEN, CHINA -- (Marketwired) -- 02/25/14 --
Highpower International, Inc. (NASDAQ: HPJ), a developer,
manufacturer, and marketer of nickel-metal hydride (Ni-MH) and
lithium rechargeable batteries, and a battery management solution and
recycling provider, today announced that the company has received its
first-ever order for large format lithium batteries to be used in
electric buses from Huizhou Yipeng Energy Technology Ltd. ("Huizhou
Yipeng"), a system integrator serving various large bus manufactures
throughout China. This order marks Highpower's first large scale
entrance into the EV segment.
Highpower will deliver to Huizhou Yipeng two formats of product
including16 ampere hour and 20 ampere hour NCM [Li(NiCoMn)O2] lithium
polymer batteries that have passed the quality test from China
National Quality Center (CNQC) and Huizhou Yipeng. These batteries
will be used in some of China's well-known brands of hybrid electric
buses and plug-in hybrid electric buses. It is estimated that each
hybrid electric bus will be using 96 of 16-ampere-hour battery while
each plug-in hybrid electric bus will use 288 of 20-ampere-hour
battery. Highpower expects sales to Huizhou Yipeng will range between
$4 million and $5 million during fiscal year 2014.
Mr. George Pan, Chairman and CEO of Highpower International,
commented, "This order represents a significant milestone for
Highpower, as we now have expanded our target market from the
traditional consumer electronics market into the rapidly growing
electric vehicles segment. We are also pleased to have teamed up with
a great customer in the EV market. The founder of Huizhou Yipeng, who
worked for the Ministry of Transportation for many years, has not
only accumulated deep knowledge and understanding of the national EV
policy, but is also extremely resourceful in the EV industry. Many
key members of Huizhou Yipeng's technical team, most notably in its
battery management system (BMS), have years of prior R&D and business
development experiences with global auto companies such as General
Motor, Ford, Eaton Corp and ZF. By collaborating with Huizhou Yipeng,
we expect to fast track our penetration into the EV market."
Mr. Pan continued, "In 2008 and 2010, we supplied a small test
quantity of rechargeable lithium polymer batteries to be used on some
electric buses for the Beijing Olympic Games and the Shanghai World
Expo. Building on this experience, over the past few years we have
strengthened our R&D efforts in battery technology and new material,
accumulated extensive technical know-how, and improved production
capabilities on rechargeable lithium batteries. In conjunction with
the ramping up of our new lithium battery factory in Huizhou, we
believe now is the appropriate time for us to evolve, penetrate and
capitalize on the electric transportation space and meet tremendous
demand for advanced lithium battery products from the fast-emerging
EV market. The Chinese Government is highly committed to the EV
market with the "Energy Saving and New Energy Car Industry
Development Plan" aiming to increase annual production of pure EV and
plug-in hybrid EVs to 500,000 by 2015 and over 5 million by 2020."
"We are confident that Highpower is on the right track to diversify
our rechargeable battery businesses from not only consumer
electronics but also to the electrical transportation and industrial
energy storage markets, ultimately becoming a global leader in every
aspect of rechargeable battery applications, including recycling,
processing and reusing," concluded Mr. Pan.
About Highpower International, Inc.
Highpower International was founded in 2001 and produces high-quality
Nickel-Metal Hydride (Ni-MH) and lithium-based rechargeable batteries
used in a wide range of applications such as electric bikes, energy
storage systems, power tools, medical equipment, digital and
electronic devices, personal care products, and lighting, etc. With
over 3,000 employees and advanced manufacturing facilities located in
Shenzhen and Huizhou of China, Highpower is committed to clean
technology, not only in the products it makes, but also in the
processes of production. The majority of Highpower International's
products are distributed to worldwide markets mainly in the United
States, Europe, China and Southeast Asia.
This press release contains "forward-looking statements" within the
meaning of the "safe-harbor" provisions of the Private Securities
Litigation Reform Act of 1995 that are not historical facts. These
statements can be identified by the use of forward-looking
terminology such as "believe," "expect," "may," "will," "should,"
"project," "plan," "seek," "intend," or "anticipate" or the negative
thereof or comparable terminology, and include discussions of
strategy, and statements about industry trends and the Company's
future performance, operations and products. Such statements involve
known and unknown risks, uncertainties and other factors that could
cause the Company's actual results to differ materially from the
results expressed or implied by such statements. For a discussion of
these and other risks and uncertainties see "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in the Company's public filings with the SEC.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, there can be no assurance
that such expectations will prove to be correct. The Company has no
obligation to update the forward-looking information contained in
this press release.
Financial Profiles, Inc.
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