Corporate News

United Power Technology AG records positive revenue and earnings development in 2015

  • - Revenue increase of 19.0 per cent to 113.8 million Euros
  • - Improved EBIT reached 10.8 million Euros
  • - Expanded product and customer portfolio
  • - Positive outlook for 2016


Eschborn, Germany, April 28, 2016 – United Power Technology AG (United Power), one of the leading manufacturers of engine-driven power equipment in China, reports a positive revenue and earnings development for the 2015 fiscal year despite the on-going consolidation in its industry. Thus, United Power achieved a revenue growth in the reporting period of 19.0 per cent to a total of 113.8 million Euros (2014: 95.6 million Euros). The main reason for this increase was a favourable EUR/RMB exchange rate as well as a somewhat increased demand in some of the new emerging markets and in the domestic market in China as well as in North America. In terms of RMB, the Group’s revenue increased year-on-year by 1 per cent.


These positive developments are also reflected in the individual segments of United Power: Revenues in the largest segment commercial generators increased by 23.5 per cent to 60.9 million Euros, after 49.3 million Euros in 2014. Revenues from the residential generators increased by 15.6 per cent from 42.7 million Euros to 49.3 million Euros. The outdoor power equipment segment, which comprises of industrial equipment such as water pumps as well as landscaping machines, generated revenues of 3.5 million Euros. Compared to last year’s 3.1 million Euros this corresponds to an increase of 10.2 per cent.


Due to the higher revenue, the gross profit in 2015 increased by 4.5 per cent to 17.1 million Euros (2014: 16.4 million Euros). At the same time though, the gross profit margin decreased by 2.1 percentage points. This was triggered mainly by a further downward price adjustment. The lower selling prices however were offset by the favourable exchange rate. In addition, other expenses decreased by 33.9 per cent to 1.8 million Euros (2014: 2.7 million Euros). As a result, EBIT was improved by 18.8 per cent to 10.8 million Euros (2014: 9.1 million Euros). At the same time, the EBIT margin stabilized at 9.5 per cent. Conclusively, United Power achieved a profit for the period of 7.1 million Euros (2014: 5.4 million Euros).


In 2015, the company further invested in land expansion to take advantage of an opportunity to secure land for future Company growth. The rational behind this investment was that with the on-going development of urbanization in China, the area where the factory is located is developing rapidly from an industrial zone to a residential and commercial hub. The land is immediately next to the current factory with 80,040 square meter. Due to lease prepayments for this land as well as the partial repayment of a bank loan, in order to decrease the company’s finance expenses, cash and cash equivalents as at 31 December, 2015 decreased by 60.6 per cent to 19.8 million Euros (As at 31 December, 2014: 50.2 million Euros).
As a result of the profit for the period the Group’s equity position improved significantly. Thus, equity increased by 10.8 per cent to a total of 136.8 million Euros as at 31 December 2015 (As at December 31, 2014: 123.4 million Euros). The respective equity ratio increased correspondingly to 83.0 per cent (2014: 76.5 per cent).


"In 2015, we have successfully continued to pursue the expansion of our business by increasing our customer base and the number of countries we sell to. Hence, we were able to stabilize our revenue and earnings position. At the same time, we increased our investments into research and development by around 48 per cent compared to prior year. As a result, we were also able to launch 13 new products", says Xu Wu, Chairman of the Management Board.


Despite these positive signs the management expects 2016 to by and large remain a transition period with further consolidation in the industry. Against this background the management will try to utilize this process and plans to play an active role in the Chinese M&A market. At the same time, the company will continue its three-pronged strategy and significantly increase its budgets for sales and distribution as well as research and development. For the 2016 fiscal year United Power thus expects to increase its revenue by a low single-digit percentage in EUR terms, while the EBIT margin is expected to remain stable compared to the previous fiscal year.


The complete annual report 2015 of United Power Technology AG is available under the following 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: 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.