Revenue during the quarter surged 44.16 percent to $54.14 million from $37.56 million in the previous year period. Gross margin for the quarter expanded 603 basis points over the previous year period to 25.24 percent. Total expenses were 94.56 percent of quarterly revenues, down from 95.46 percent for the same period last year. This has led to an improvement of 91 basis points in operating margin to 5.44 percent.

Operating income for the quarter was $2.95 million, compared with $1.70 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $5.06 million compared with $3.58 million in the prior year period. At the same time, adjusted EBITDA margin contracted 18 basis points in the quarter to 9.35 percent from 9.52 percent in the last year period.

Mr. George Pan, Chairman and CEO of Highpower International, commented, "We are pleased to achieve improvements across each metric of our operating results during the third quarter of 2016, largely due to accelerating demand for lithium batteries in the second half of the year. Throughout the past year, Highpower has dedicated significant time and resources to expand our R&D efforts to ensure that our Company is at the forefront of providing state-of art lithium battery technology to the market. Many of our customers are long-standing customers, and it is imperative that we can evolve to meet consumer demand."

The company has spent $11.51 million cash to meet investing activities during the nine month period as against cash outgo of $7.25 million in the last year period.

Cash flow from financing activities was $13.25 million for the nine month period, up 83.30 percent or $6.02 million, when compared with the last year period.

Cash and cash equivalents stood at $13.48 million as on Sep. 30, 2016, up 70.38 percent or $5.57 million from $7.91 million on Sep. 30, 2015.

Working capital remains negative
Working capital of Highpower International, Inc. was negative $16.65 million on Sep. 30, 2016 compared with negative $12.35 million on Sep. 30, 2015. Current ratio was at 0.86 as on Sep. 30, 2016, down from 0.87 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 5 days for the quarter from 43 days for the last year period. Days sales outstanding went down to 75 days for the quarter compared with 92 days for the same period last year.

Days inventory outstanding has decreased to 24 days for the quarter compared with 72 days for the previous year period. At the same time, days payable outstanding went down to 104 days for the quarter from 121 for the same period last year.