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H/Cell Energy Reports FY2017 Third Quarter Results

FLEMINGTON, N.J., Nov. 09, 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 third fiscal quarter ended September 30, 2017.

For the three months ended September 30, 2017, HCCC generated revenue of $1,338,571 and a net loss of $52,446 or ($0.01) in earnings per share. For the nine months ended September 30, 2017, HCCC generated revenue of $5,136,074 and net income of $98,912 or $0.01 in earnings per share, fully diluted.

Andrew Hidalgo, CEO of HCCC, commented, "We are pleased to be profitable year-to-date through nine months. We experienced some project completion delays in the third quarter, however, our Australian operation was profitable and they are positioned nicely for the fourth quarter with approximately $962,000 of backlog yet to be invoiced. In addition, we have $5.9 million in active bids. From a balance sheet perspective, HCCC is healthy with over $400,000 in cash and assets of approximately $1.4 million. We look forward to a strong finish for FY2017.”

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, HCCC also provides security systems integration. HCCC 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
Investor Relations
908-837-9097 x-2

H/CELL ENERGY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30,
2017
December 31,
2016
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $421,071 $537,867
Accounts receivable (net retention) 817,657 650,886
Prepaid expenses 13,675 14,168
Costs and earnings in excess of billings 15,641 91,904
Total current assets 1,268,044 1,294,825
Property and equipment, net 104,764 99,816
Security deposits and other non-current assets 8,583 8,497
Total assets $1,381,391 $1,403,138
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $536,340 $661,237
Management fees payable – related party 47,000 52,000
Billings in excess of costs and earnings 87,736 83,538
Sales tax payable 58,739 114,085
Total current liabilities 729,815 910,860
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 September 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 1,319,072 1,283,422
Accumulated deficit (641,739) (740,651)
Accumulated other comprehensive loss (26,461) (50,806)
Total stockholders' equity 651,576 492,278
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $1,381,391 $1,403,138

H/CELL ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS – OTHER COMPREHENSIVE INCOME
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2017 2016 2017 2016
(As restated) (As restated)
Revenue
Construction income $1,292,905 $1,284,362 $5,050,155 $4,031,845
Related party 45,666 - 85,919 1,500
Total revenue 1,338,571 1,284,362 5,136,074 4,033,345
Cost of goods sold
Direct costs 870,369 891,876 3,432,098 2,796,861
Direct costs – related party 37,304 - 87,649 1,500
Total cost of goods sold 907,673 891,876 3,519,747 2,798,361
Gross profit 430,898 392,486 1,616,327 1,234,984
Operating expenses
Research and development - - - 2,000
General and administrative expenses 437,344 347,194 1,379,415 1,790,700
Management fees – related party 46,000 34,000 138,000 102,000
Total operating expenses 483,344 381,194 1,517,415 1,894,700
Income (Loss) from operations (52,446) 11,292 98,912 (659,716)
Net income (loss) $(52,446) $11,292 $98,912 $(659,716)
Other comprehensive income (loss), net
Foreign currency translation adjustment 5,928 127,487 24,345 181,863
Comprehensive income (loss) $(46,518) $138,779 $123,257 $(477,853)
Earnings (Loss) per share
Basic $(0.01) $0.00 $0.02 $(0.24)
Diluted $(0.01) $0.00 $0.01 $(0.24)
Weighted average common shares outstanding
Basic 7,084,436 3,131,579 6,601,873 2,760,170
Diluted 7,962,049 4,108,772 7,472,520 2,760,170

Source:H/Cell Energy Corporation