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H/Cell Energy Reports FY2017 First Quarter Results

FLEMINGTON, N.J., May 22, 2017 (GLOBE NEWSWIRE) -- H/Cell Energy Corporation (OTCQB:HCCC) (“HCCC”), a company that designs and implements clean energy solutions featuring hydrogen energy systems, has announced financial results for the first fiscal quarter ended March 31, 2017.

In the first quarter, HCCC reported revenue of $1,866,845 and a net loss of $56,124 or $0.01 per diluted share, which includes the retrospective application of common control financials.

Andrew Hidalgo, CEO of HCCC, commented, "As we are in our early stages of growth, HCCC is pleased to report record revenue growth. HCCC would have posted a positive net income had it not been for certain accounting pronouncements, which required HCCC to consolidate financials along with The Pride Group for the same reporting period, since The Pride Group was a common control acquisition. Although the acquisition of The Pride Group was concluded on January 31, 2017, HCCC had to account for their entire financial month of January 2017, even though HCCC did not own The Pride Group during that time. We see a very positive outlook ahead. At March 31, 2017, our bid list was approximately $6.5 million and our work in progress backlog was approximately $1.6 million. HCCC will continue to focus on organic growth as well as identifying strategic acquisitions in the months ahead.”

About H/Cell Energy Corporation:

H/Cell Energy Corporation is a systems integrator that focuses on the design and implementation of clean energy solutions including solar, battery technology and hydrogen energy systems. The company serves the residential, commercial and government sectors. Please visit our website at www.hcellenergy.com for more information.

Forward Looking Statements:

Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as “anticipate,” “believe,” “forecast,” “estimate,” “expect,” and “intend,” among others. These forward-looking statements are based on current expectations and actual results could differ materially. H/Cell Energy Corporation does not undertake an obligation to update or revise any forward-looking statement. The information set forth herein speaks only as of the date hereof.

H/CELL ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2017 December 31, 2016
(Unaudited) (as restated)
ASSETS
Current assets:
Cash and cash equivalents $346,893 $537,867
Accounts receivable ( net retention) 1,521,592 650,886
Prepaid expenses 7,425 14,168
Costs in excess of billings 80,826 91,904
Total current assets 1,956,736 1,294,825
Property and equipment, net 106,603 99,816
Security deposits and other non-current assets 8,718 8,497
Total assets $2,072,057 $1,403,138
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $1,394,199 $713,237
Billings in excess of costs 104,718 83,538
Sales tax payable 120,617 114,085
Total current labilities 1,619,534 910,860
Commitments and Contingencies
Stockholders' Equity
Common Stock - $0.0001 par value; 25,000,000 shares authorized; 6,941,579 and 3,131,579 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively 694 313
Preferred Stock - $0.0001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding - -
Additional paid-in capital 1,288,041 1,283,422
Accumulated deficit (796,775) (740,651)
Accumulated other comprehensive loss (39,437) (50,806)
Total stockholders' equity 452,523 492,278
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $2,072,057 $1,403,138


H/CELL ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - OTHER COMPREHENSIVE INCOME
(UNAUDITED)
For the Three Months Ended March 31,
2017 2016
Revenue
Construction income $ 1,850,755 $ 1,216,004
Related party 16,090 -
Total revenue 1,866,845 1,216,004
Cost of goods sold
Direct costs 1,413,820 914,262
Related party 15,905 -
Total cost of goods sold 1,429,725 914,262
Gross profit 437,120 301,742
Operating expenses
Research and development - 2,000
General and administrative expenses 493,244 953,495
Total operating expenses 493,244 955,495
Loss from operations (56,124) (653,753)
Income tax provision (benefit) - -
Net loss $ (56,124) $ (653,753)
Other comprehensive loss, net
Change in foreign currency translation adjustment 11,369 11,268
Comprehensive loss $ (44,755) $ (642,485)
Loss per share
Basic $ (0.01) $ (0.27)
Weighted average common shares outstanding
Basic 5,657,309 2,432,749

H/Cell Energy Corporation Investor Relations 908-837-9097 x-2

Source:H/Cell Energy Corporation