DGAP-News: United Power Technology AG / Key word(s): Quarter Results United Power Technology with improved results in the first quarter 13.05.2015 / 08:20 --------------------------------------------------------------------- Results 1st quarter 2015 United Power Technology with improved results in the first quarter - Revenues increased by 13.6 per cent to 26.9 million Euros year-on-year - EBIT margin improved by 2.9 percentage points compared to Q1/2014 to 15.0 per cent - Cautious outlook for 2015 confirmed Eschborn, Germany, 13 May 2015 - United Power Technology AG (United Power), one of the leading manufacturers of engine-driven power equipment in China, was able to improve results in the first quarter of 2015 despite continued challenging market conditions. The company generated revenues of 26.9 million Euros during the first three months 2015, after 23.7 million Euros in the first quarter 2014. To a large extent this development was due to currency effects as a result of a weaker Euro compared to the same period last year as the revenues are denominated in RMB and USD. Furthermore positive sales developments, in North America as well as new growth markets where revenues not only increased in Euro but also in RMB terms contributed to the improved results. During the reporting period the sales developed differently across the segments: Revenues from the commercial generator segment increased by 11.0 per cent to 14.1 million Euros, the sales of residential generators rose strongly by 25.3 per cent and contributed 11.8 million Euros to the total revenues. By contrast the revenues in the outdoor power equipment segment decreased by 19.9 per cent to around 1.1 million Euros in the first three months 2015. Despite the headwinds in the market environment United Power was able to maintain its profitability. Year-on-year the operating result (EBIT) increased by 40.7 per cent to 4.0 million Euros (Q1/2014: 2.9 million Euros) representing an EBIT margin of 15.0 per cent after 12.1 per cent in the first three months 2014. The net profit increased from 2.3 million Euros in the reporting period 2014 to 3.1 million Euros in 2015. Cash and cash equivalents amounted to 59.7 million Euros as at 31 March 2015 which represents an increase of around 19 per cent since 31 December 2014 when they amounted to 50.2 million Euros. This was mainly due to the cash generated from operations. "In order to strengthen United Power's production we increased our workforce during the first quarter 2015. The total number of staff rose from 589 employees by the end of end of 2014 to 620 at the end of March 2015. In the current year we will focus on significantly stepping up the sales and brand building efforts as well as the development of larger generators including industrial generators. Our budget for sales and distribution as well as for R&D-activities will be increased significantly", announces Xu Wu, Chairman of the Management Board. During the reporting period the Group's total equity grew by 13.3 per cent to 139.8 million Euros (31 December 2014: 123.4 million Euros) mainly due to the consolidated profit for the period. This corresponds to an equity ratio of 75.1 per cent. Outlook The Management Board of United Power confirms its outlook for 2015 as published in the annual report 2014. It expects the overall financial results in the full year 2015 again to be weaker than in 2014. Concerning the group revenues United Power expects to halt the downward trend in 2015 assuming a stable RMB:EUR exchange rate of 6.7:1. Although the company predicts to halt the downward trend of group revenues in 2015, the Management foresees gross margin and EBIT margin to drop by about 2 - 5 percentage points. The latter is mainly due to further price adjustments, higher fixed asset depreciation as well as a significant step up in sales, brand building and distribution as well as research and development budget. The complete 3 Months Report 2015 of United Power is available at the link http://www.unitedpower.de.com/en/ip_node/4. 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 more than 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 Andreas Friedemann T: +49 40 60 91 86 50 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. --------------------------------------------------------------------- 13.05.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. 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: [email protected] Internet: www.unitedpower.de.com ISIN: DE000A1EMAK2 WKN: A1EMAK Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 357001 13.05.2015