DGAP-Adhoc: United Power Technology AG stays profitable

United Power Technology AG / Key word(s): Preliminary Results 11.08.2014 14:41 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Preliminary results half-year 2014 United Power Technology AG stays profitable despite lower revenues Eschborn, Germany, August 11, 2014 - According to preliminary results United Power Technology AG (United Power) achieved an operating profit (EBIT) of approximately 7.2 million Euros in the first six months of 2014. That represents an EBIT margin of 13.5 per cent, which compares to an EBIT of 9.8 million Euros and an EBIT margin of 17.4 per cent for the same period of the previous year. Mainly due to ongoing consolidation and price competition in the China domestic market as well as currency effects of a stronger Euro and general weaker than expected global growth, the group's revenues decreased by 5.5 per cent compared to the same period last year to 53.2 million Euros. The decline is also due to lower results in Europe, which has been affected by the conflict in the Ukraine and resulting weaker rouble. Gross profit declined from 11.7 million Euros in the first half year of 2013 by 15.9 per cent to 9.8 million Euros in the same period of this year. The gross profit margin decreased by 2.3 percentage points to 18.4 per cent in the first half year of 2014. The main reasons for this development include the appreciation of the Chinese Renminbi (RMB) against the American US-Dollar as well as RMB price adjustments. Cash and cash equivalents amounted to 40.2 million Euros at the end of June 2014 representing an increase of 3.6 per cent compared to the end of fiscal year 2013. Total equity increased from 109.5 million Euros by 1.4 per cent to 111.0 million Euros representing an equity to total assets ratio of 73.0 per cent as of 30 June 2014. United Power achieved a net profit of 5.1 million Euros in the first six months 2014. Compared with the 8.4 million Euros generated in the corresponding period of the previous year this constitutes a decline of 39.3 per cent. The net profit margin decreased from 14.9 per cent by 5.3 percentage points to 9.6 per cent. The main reasons include the decline in gross profit and EBIT margins as well as a higher assumed corporate tax rate. Currently the company is in discussions with the tax authorities whether it can continue to enjoy a favourable corporate tax rate of 15 per cent for high technology companies in China. The final resolution on this issue is not expected to be clarified until May 2015 at the earliest. Until then the Management Board assumes and pays the standard corporate tax rate of 25 per cent. To date United Power had expected a slight decline in the group's revenues and a somewhat lower gross profit and EBIT margins compared to the year 2013. With the half-year report the Management Board now amends the previously given guidance for the full financial year 2014. As management expects the industry environment to remain challenging throughout 2014, it expects a decline in the group's revenues in an amount possibly exceeding the percentage decrease for the first half year. As far as profitability is concerned, United Power anticipates a decrease in gross profit and EBIT margins of similar magnitude as the percentage point decline of the EBIT margin for the first half this year. The final half-year results will be published with the half-year report 2014 on August 14, 2014. --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: For further requests please contact: Kirchhoff Consult AG Andreas Friedemann T: +49 40 60 91 86 50 F: +49 40 60 91 86 60 E-Mail: andreas.friedemann@kirchhoff.de or visit www.unitedpower.de.com Disclaimer concerning prognoses This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts instead they reflect United Power's current views and expectations and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialise or if the assumptions underlying any of United Power's forward-looking statements are proving to be incorrect, United Power's actual results may be materially different from those expressed or implied by such forward-looking statements. United Power does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. 11.08.2014 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: United Power Technology AG Mergenthalerallee 10-12 65760 Eschborn Germany Phone: +49 6196 400804 Fax: +49 6196 400910 E-mail: oliver.kuan@unitedpower.cn Internet: www.unitedpower.de.com ISIN: DE000A1EMAK2 WKN: A1EMAK Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------