iQ Power Licensing AG

Annual Results 2017 published

Public disclosure of inside information according to article 17 MAR

Zug, May 12, 2018 (pta001/12.05.2018/16:00) - ,

* Revenue from license business increased in the second half of 2017 by 85% compared to the first half of 2017
* Total annual revenue 2017 was CHF 686´000
* Earnings from operating business in the second half of 2017 improved by CHF 0.5 million over first half 2017
* New business models developed to increase revenue and profitability
* Anticipated entry of new majority shareholder in mid-2018 with funding of EUR 14 million at EUR 0,07 per share will create totally new operational environment

iQ Power Licensing AG (ISIN: CH028536338, WKN: A14M1C / Symbol iQL), the developer and marketer of technologies and their licenses for environmentally friendly and technologically leading starter batteries for motor vehicles, publishes the figures for the fiscal year 2017 and gives an overview of the current and future business.

Business Operations
Activities in South Korea in the second half of 2017 was dedicated to further expanding the production capacity and improving the reliability of the production of iQ Power´s Korean licensee iQ Power Asian Inc. In Q4 2017, the strategic Canadian partner of iQ Power Licensing AG, Discover Energy Corporation (DEC), officially took over the factory of the South Korean Licensee and re-named it Discover Mixtech Manufacturing Corporation (DMC). The CEO is the co-owner of DEC, Mr. Steve Nam, a Canadian citizen with roots in South Korea.

During the second half of 2017 the production capacity increased, however DMC failed to achieve the ambitious targets, which iQ Power Licensing had anticipated in the first half of 2017. New equipment is continuing to be installed for a second production line and a large increase in capacity and sales is anticipated for 2018. It should be noted that in addition to batteries with the iQ Power mixing technology, Discover Mixtech Manufacturing also produces products without this special feature to meet customer requirements for budget batteries with limited warranty.

In 2017 a close cooperation was started with a leading German developer of battery production technology for a new battery production machinery. The partnership resulted in a joint patent with iQ Power Licensing for a groundbreaking machine for the production of lead-grids for batteries for automotive and stationary applications.

Developments for other areas of battery production has led to iQ Power Licensing introducing a new concept battery factory called ´battery factory of the future ` . Factories based on this concept will be able to produce batteries in less than half the time of conventional battery factories and save more than 25% of energy costs. This factory will also integrate the electrolyte mixing technology of iQ Power plus other new technologies currently under development at iQ Power and its partners. It will result in battery cycle life being increased by four times or more versus conventional batteries at only a small on-cost. The new concept battery factory with its advanced new production technologies also applies to the production of AGM batteries.