Corporate News

United Power Technology AG reports further revenue growth through persistently favourable currency effects


Nine-Month-Results 2015
•    Revenue growth of 18.5 per cent to 91.3 million Euros
•    EBIT decreased by 7.3 per cent to 10.1 million Euros
•    Stable cash position of 50.4 million Euros
•    Outlook for full financial year 2015 confirmed

Eschborn, Germany, November 18, 2015 – United Power Technology AG (United Power), one of the leading manufacturers of engine-driven power equipment in China, reports 18.5 per cent revenue growth to a total of 91.3 million Euros in the first nine months of 2015, due to a favourable exchange rate (9M 2014: 77.1 million Euros). In terms of RMB, which is the group's functional currency, revenues slightly decreased by 1.7 per cent. On segment level, revenues from the residential generators segment showed the highest growth with an increase of 25.3 per cent to 39.0 million Euros (9M 2014: 31.1 million Euros). The commercial generator segment rose by 19.7 per cent to 49.2 million Euros (9M 2014: 41.1 million Euros), while sales of the outdoor power equipment segment dropped by 24.1 per cent to 3.2 million Euros (9M 2014: 4.1 million Euros) in the first nine months of 2015.

The group’s cost of sales increased by 21.6 per cent to 77.0 million Euros (9M 2014: 63.4 million Euros), due to higher sales volumes in connection with lower selling prices in light of extended periods of industry consolidation.

As a result, the group’s gross profit increased in the reporting period by 4.1 per cent to 14.3 million Euros (9M 2014: 13.7 million Euros). The corresponding gross profit margin however dropped to 15.7 per cent (9M 2014: 17.8 per cent). Compared to the same period of the previous year the group’s EBIT decreased by 7.3 per cent to 10.1 million Euros (9M 2014: 10.9 million Euros). This is mainly because of lower other income as well as higher other expenses and increased investments in research and development during the reporting period. Correspondingly, the EBIT margin decreased by 3.1 per cent to 11.1 per cent (9M 2014: 14.2 per cent). Ultimately, the group’s profit for the period decreased by 16.8 per cent to 6.7 million Euros (9M 2014: 8.1 million Euros) with a net profit margin of 7.4 per cent (9M 2014: 10.5 per cent).

Cash and cash equivalents remained stable with an increase of 0.5 per cent to a total of 50.4 million Euros (9M 2014: 50.2 million Euros). The group’s equity increased by 8.9 per cent to 134.4 million Euros, mainly due to the consolidated profit and the favourable currency effect (9M 2014: 123.4 million Euros). To that effect, the equity ratio increased to 80.2 per cent as of September 30, 2015 (76.5 per cent as of December 31, 2014).

"While our overall business environment continued to be challenging, especially in Europe, we still achieved growth in our new emerging markets and in China. We regard this as the possible beginning of an upswing in the industry and will therefore continue to invest in our strategy to strengthen our sales and brand building efforts as well as to invest in our R&D activities. We are convinced that this will soon start to bear fruit in our other markets, too", says Xu Wu, Chairman of the Management Board.

Outlook confirmed
Despite positive signs especially from the domestic market in China and the new emerging markets, the management still expects the financial results in full year 2015 to be weaker than in 2014. With regard to the product segments, similar or higher revenues from the commercial generator and the residential generator segment are expected compared to 2014. As far as profitability is concerned the management expects the gross profit and EBIT margins to decrease by 2 to 5 percentage points due to further price adjustments, higher fixed asset depreciation as well as a significantly step up in the group’s sales, brand building distribution and research and development budget.

The complete nine-month-report 2015 of United Power is available under the following link:

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.

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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.