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H/Cell Energy Reports FY2017 Second Quarter Results

FLEMINGTON, N.J., Aug. 15, 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 its second fiscal quarter ended June 30, 2017.

For the three months ended June 30, 2017, HCCC generated revenue of $1,930,658 and net income of $207,482 or $0.03 earnings per share, fully diluted. For the six months ended June 30, 2017, HCCC generated revenue of $3,797,503 and net income of $151,358 or $0.02 earnings per shares, fully diluted.

Andrew Hidalgo, CEO of HCCC, commented, "We are pleased to announce a very successful quarter, which included record revenue and earnings. In addition, our balance sheet net tangible asset value increased 38% from $492,278 on December 31, 2016 to $681,509 on June 30, 2017. As of June 30, 2017, HCCC had a backlog of project work to be completed of approximately $827,000 and an active bid list of potential projects of approximately $5.2 million. As we build shareholder value, HCCC will continue to focus on organic growth as well as seeking strategic acquisition candidates that can expand our geographic scope, add technical resources and increase the size of our customer base.”

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. In addition, through its Pride Group subsidiary based in Australia, the company also provides security systems integration. 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
June 30, 2017 December 31, 2016
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 293,769 $ 537,867
Accounts receivable (net retention) 1,634,929 650,886
Prepaid expenses 7,043 14,168
Costs and earnings in excess of billings 27,166 91,904
Total current assets 1,962,907 1,294,825
Property and equipment, net 102,076 99,816
Security deposits and other non-current assets 8,599 8,497
Total assets $ 2,073,582 $ 1,403,138
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 1,062,732 $ 661,237
Management fees payable – related party 46,000 52,000
Billings in excess of costs and earnings 168,919 83,538
Sales tax payable 114,422 114,085
Total current liabilities 1,392,073 910,860
Commitments and contingencies
Stockholders' equity
Common Stock - $0.0001 par value; 25,000,000 shares authorized; 7,041,579 and 3,131,579 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively 704 313
Preferred Stock - $0.0001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding - -
Additional paid-in capital 1,302,487 1,283,422
Accumulated deficit (589,293) (740,651)
Accumulated other comprehensive loss (32,389) (50,806)
Total stockholders' equity 681,509 492,278
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 2,073,582 $ 1,403,138

H/CELL ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS – OTHER COMPREHENSIVE INCOME
For the Three Months Ended
June 30,
For the Six Months
Ended June 30,
2017 2016 2017 2016
Revenue
Construction income $1,906,495 $1,531,479 $ 3,757,250 $2,747,483
Related party 24,163 1,500 40,253 1,500
Total revenue 1,930,658 1,532,979 3,797,503 2,748,983
Cost of goods sold
Direct costs 1,147,909 990,723 2,561,729 1,904,985
Direct costs – related party 34,440 1,500 50,345 1,500
Total cost of goods sold 1,182,349 992,223 2,612,074 1,906,485
Gross profit 748,309 540,756 1,185,429 842,498
Operating expenses
Research and development - - - 2,000
General and administrative expenses 498,124 527,778 945,369 1,442,177
Management fees – related party 45,000 38,000 91,000 77,000
Total operating expenses 543,124 565,778 1,036,369 1,521,177
Income (Loss) from operations 205,185 (25,022) 149,060 678,679
Other income 2,297 7,767 2,298 7,671
Net income (loss) $207,482 $(17,255) $ 151,358 $ (671,008)
Other comprehensive income (loss), net
Change in foreign currency translation adjustment 7,048 43,108 18,417 54,376
Comprehensive income (loss) $ 214,530 $ 25,853 $ 169,775 $ (616,632)
Earnings (Loss) per share
Basic $ 0.03 $ (0.01) $ 0.02 $ (0.26)
Diluted $ 0.03 $ (0.01) $ 0.02 $ (0.26)
Weighted average common shares outstanding
Basic 7,039,357 2,709,357 6,355,468 2,571,387
Diluted 7,948,091 2,709,357 7,259,155 2,571,387


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

Source:H/Cell Energy Corporation