H/Cell Energy Reports FY2017 Second Quarter Results

FLEMINGTON, N.J., Aug. 15, 2017 -- 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

H/Cell Energy Reports FY2017 Second Quarter Results

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