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United Power Technology: Positive revenue development due to stronger demand for commercial generators in the first quarter of 2016

DGAP-News: United Power Technology AG / Key word(s): Quarter Results
United Power Technology: Positive revenue development due to stronger demand
for commercial generators in the first quarter of 2016

31.05.2016 / 08:37
The issuer is solely responsible for the content of this announcement.

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Three-Month-Results 2016

United Power Technology: Positive revenue development due to stronger
demand for commercial generators in the first quarter of 2016

- Revenue increase of 8.7 per cent to 29.2 million Euros

- EBIT of 2.1 million Euros due to foreign exchange loss

- Positive outlook for 2016 confirmed

Eschborn, Germany, May 31, 2016 - United Power Technology AG (United
Power), one of the leading manufacturers of engine-driven power equipment
in China, had a positive start into the 2016 fiscal year. United Power
achieved a revenue growth in the first three months of 8.7 per cent to a
total of 29.2 million Euros (3M 2015: 26.9 million Euros). The main reason
for this increase was a strong demand for commercial generators especially
in China and other regions. In terms of RMB, the functional currency of the
Company, revenue increased by even 14.5 per cent.

However, while the sales figures continued to improve, the on-going
consolidation process in the industry triggering downward price adjustments
further impacted the profitability of United Power. In this light, the
company was able to keep the gross profit stable at the previous year's
level at 4.2 million Euros. In line with the expectations, the gross profit
margin decreased by 1.3 percentage points to 14.4 per cent in the first
three months of 2016 (3M 2015: 15.7 per cent). The EBIT in the first three
months of 2016 amounted to 2.1 million Euros (3M 2015: 4.1 million Euros).
The decrease was mainly due to foreign exchange losses that incurred this
year, while the company posted 1.7 million Euros foreign exchange gains for
the first quarter of last year. As a result, the EBIT margin declined to
7.2 per cent (3M 2015: 15.1 per cent). The profit for the reporting period
amounted to 1.2 million Euros (3M 2015: 3.1 million Euros).

Cash and cash equivalents were 18.4 million Euros as at March 31, 2016,
which represents a decrease of 7.2 per cent from 19.8 million Euros as at
December 31, 2015. This was due to a partial repayment of a bank loan.

"We are pleased to see an increasing market demand for our commercial
generators. Despite the lower profitability, altogether we are confident
that over the course of the full 2016 fiscal year, we will be able to catch
up the downturn in the earnings development. Therefore, we confirm our