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H/Cell Energy Reports FY2017 First Quarter Results

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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

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