Hong Kong Highpower Technology, Inc. a developer, manufacturer and marketer of nickel-metal hydride batteries and related products, has announced its growth expectations and business expansion plans following the company's recent listing on the American Stock Exchange.
Hong Kong Highpower Technology's batteries are used in consumer applications such as portable electronic devices and toys, and industrial applications such as medical devices and communications equipment. The company's manufacturing and product development facilities are located in Shenzhen, which offers low labor costs and easy access to land and raw materials, as well as additional cost and cycle time advantages garnered by proximity to electronics supply chains and end-markets. Hong Kong Highpower Technology's products are distributed worldwide, and customers include leading battery OEMs Energizer Battery and UniRoss.
Since its inception in 2001, Hong Kong Highpower Technology has achieved a compounded annual sales growth rate of 112% to net sales of USD73.3 million in 2007. The Company's net sales target for 2008 is approximately USD90 million representing a year-on-year growth of more than 20%.
George Pan chairman and CEO of Highpower, said "Our significant expertise in Ni-MH battery technology and development enables us to maintain the highest standard of product quality and consistency, control our costs, and keep pace with evolving industry standards. Our large scale quality manufacturing is also an important competitive advantage, and last year we reached a major milestone in Ni-MH battery production of 100 million units for the year.
"We are leveraging our competitive leadership and expertise in Ni-MH batteries to enter the lithium-ion-based battery market, which will provide a highly complementary product line and incremental revenue stream," Pan continued. "We have begun production of a line of lithium-ion batteries as samples for potential customers to complement our current Ni-MH battery products so that we are less vulnerable to price increases in nickel. We intend to expand production of our Li-ion battery products in the near future, and we also intend to expand our market share geographically by increasing our marketing investment to the US, Russia, Europe and India this year."
Hong Kong Highpower Technology's Ni-MH rechargeable batteries have been developed to respond to a number of specific market requirements such as recyclability, high power, high energy density, long life, low cost, environmental safety and other important characteristics for consumer and OEM applications. Both Ni-MH and Li-ion batteries can replace high toxicity nickel cadmium rechargeable batteries, and regulatory requirements, mostly in European countries, are mandating moves toward Ni-MH and Li-ion standards. This trend is expected to substantially replace single-use batteries over the long run, resulting in large scale growth and expansion of the rechargeable battery market and better outcomes for the environment. Demand for Li-ion batteries is currently outpacing worldwide supply, and the Li-ion share of the global rechargeable battery business is expected to nearly double to USD6 billion by 2012.