DGAP-News

United Power Technology reports a significant decline in revenue and profitability for the first six months of 2016

DGAP-News: United Power Technology AG / Key word(s): Half Year Results
United Power Technology reports a significant decline in revenue and
profitability for the first six months of 2016

18.08.2016 / 08:52
The issuer is solely responsible for the content of this announcement.

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United Power Technology reports a significant decline in revenue and
profitability for the first six months of 2016

- Revenue decrease of 14.6 per cent to 53.5 million Euros

- A drop in EBIT of 56.0 per cent to 3.4 million Euros

- Revised outlook for full financial year 2016 confirmed

Eschborn, Germany, August 18, 2016 - United Power Technology AG (United
Power), one of the leading manufacturers of engine-driven power equipment
in China, reports a significant decline in revenue and profitability for
the first six months of 2016. The main driver of these results were the
adverse-market conditions that have already burdened the demand for engine-
driven power equipment for quite some time. In addition to that, a stronger
Euro compared to the same period last year further impacted the company's
results. Thus, in terms of United Power's functional currency RMB, revenue
declined by 9.3 per cent.

Due to these circumstances revenue in the reporting period decreased by
14.6 per cent to 53.5 million Euros (H1 2015: 62.6 million Euros).
According to the overall lower demand, which was amplified by further price
reductions for some of United Power's products, the EBIT for the first six
months of 2016 decreased to 3.4 million Euros. Year-on-year this represents
a decline of 56.0 per cent (H1 2015: 7.7 million Euros). Thus, the
corresponding EBIT margin dropped from 12.3 per cent to 6.3 per cent.
Finally, the Group's profit for the period decreased by 61.4 per cent to
2.0 million Euros as it was 5.1 million Euros in the first six months 2015.

Cash and cash equivalents amounted to 16.5 million Euros as of June 30,
2016. This represents a decline of 3.3 million Euros since the end of the
fiscal year 2015. In the same time the Group's total equity decreased to
133.4 million Euros (December 31, 2015: 136.7 million Euros).

On the basis of preliminary results, which were published on August 2,
2016, United Power had already revised its guidance for the full financial
year 2016 and confirms this revised outlook. For the full financial year
2016 the Group thus expects revenue to fall between 20 and 30 per cent with
the gross profit margin to decrease between 2 to 4 percentage points and