DGAP-News: United Power Technology AG / Key word(s): Final Results United Power Technology AG remains profitable despite lower revenues 14.04.2014 / 08:40 --------------------------------------------------------------------- Financial Results 2013 United Power Technology AG remains profitable despite lower revenues - Revenues decreased by 6.7 per cent to 103.7 million Euros - EBIT of 13.9 million Euros corresponding to a stable EBIT margin of 13.4 per cent - Cash and cash equivalents increased by 25.4 per cent to 38.8 million Euros - Capacity expansion in Gaoqi Industrial Park - Company expects somewhat weaker financial results in 2014 Eschborn, Germany, April 14, 2014 - United Power Technology AG (United Power), one of the leading manufacturers of engine-driven power equipment in China, generated revenues of 103.7 million Euros (2012: 111.1 million Euros) in 2013. Despite this decline of 6.7 per cent the Management Board intends to pay a dividend of EUR 0.08 per share for financial year 2013. Compared to the previous year, revenues in the segment of commercial generators dropped by 8.0 per cent to 54.2 million Euros (2012: 59.0 million Euros) while the sales for the residential generators segment decreased by 6.2 per cent to 43.3 million Euros (2012: 46.2 million Euros). However, United Power was able to slightly improve revenues in the business area outdoor power equipment by 1.5 per cent to 4.4 million Euros (2012: 4.4 million Euros). Despite industry consolidation and resulting intensified competition in the Chinese market the company was able to keep the revenues at a stable level of 26.2 million Euros year-on-year here. In contrast to that United Power had to face reduced sales in North America: The revenues decreased from 21.0 million Euros in 2012 to 16.7 million Euros during the last year. This is mainly due to the quiet hurricane season in 2013. The decline of 3.1 million Euros in the European market where revenues of 37.4 million Euros have been generated in 2013 is mainly due to new technical requirements implemented by the EU within the previous year. The geographic split is based on an internal analysis of revenues by end customers. With a lower gross profit of 20.7 million Euros (2012: 22.4 million Euros) United Power's profit from operations (EBIT) decreased by 9.0 per cent to 13.9 million Euros (2012: 15.3 million Euros). However, the company was able to keep the EBIT margin relatively stable at 13.4%. "In 2013 we expanded our customer base to more than 270 clients in almost 70 countries around the world. Furthermore we managed to strengthen our own brand United Power as branded sales increased compared to 2012 by 17.3 per cent to 40.7 million Euros. This makes us confident in respect of the future development of our company", states Xu Wu, Chairman of the Management Board. Furthermore the company strengthened its equity position by 7.8 per cent from 101.5 million Euros to 109.5 million Euros in 2013 mainly due to consolidated profit for the period. With an equity ratio of 84.4 per cent United Power is well financed to exploit future growth opportunities. Cash and cash equivalents increased significantly from 30.9 million Euros in 2012 to 38.8 million Euros in 2013, representing a plus of 25.4 per cent. Despite the lower revenues of the company in 2013 compared to the previous year, the Management Board and Supervisory Board decided to propose a dividend payment of EUR 0.08 per share for the financial year 2013 to the Annual General Meeting that will be held on May 22, 2014. Furthermore the company seeks to increase yearly dividends in the foreseeable future based on the assumption of further profitable growth. Outlook United Power will continue to pursue its three-pronged strategy, which comprises further geographic expansion and penetration, broadening the range of engine-powered products and scaling up the size of its products in order to further expand the customer base and application of its products. In addition to that the Management Board has devised regional sales strategies and implemented measures to strengthen the sales forces. Therefore, the Management expects to regain market share, especially in the EU market. Management also expects growing demand in the outdoor power equipment segment for engine driven power equipment product's such as pumps, tillers, and high pressure washers in both developed as well as developing countries. Planned investments in capacity expansion for 2014 amount up to 36 million Euros: 90 per cent is designated for property, plant and equipment, mainly for the third and newest factory Gaoqi Industrial Park and up to eight new production lines depending on market developments. The remaining funds shall be invested in R&D in order to accelerate new product developments as well as modifications in order to meet the new technical requirements as well as sales and distribution. The Company's guidance for the full year 2014 is that the financial results will be somewhat weaker than 2013. The group revenues are likely to face a slight decline resulting from lower revenues from the commercial and residential generator segments. However the Management Board anticipates a growth in the outdoor power segment. The company expects gross profit and EBIT margins to be somewhat lower compared to 2013 due to expected further Renminbi (RMB) appreciation against the US-Dollar, higher fixed asset depreciation as well as a larger research and development budget. About United Power Technology Group United Power Technology Group designs, develops, manufactures and sells engines and an extensive range of engine-driven power equipment, including generators, outdoor power equipment, as well as components. Its major products comprise residential as well as commercial generators, which are currently delivered to end users in close to 70 countries around the world. The operational companies of United Power Technology Group are incorporated under the laws of the People's Republic of China and located in Fuzhou and Shanghai, China. For further requests please contact: Kirchhoff Consult AG Dr. Kay Baden T: +49 40 60 91 86 39 F: +49 40 60 91 86 60 E-Mail: [email protected] 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. End of Corporate News --------------------------------------------------------------------- 14.04.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's 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: [email protected] 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 News DGAP News-Service --------------------------------------------------------------------- 262982 14.04.2014