Revenue during the quarter surged 42.35 percent to $53.88 million from $37.85 million in the previous year period. Gross margin for the quarter expanded 276 basis points over the previous year period to 20.22 percent. Total expenses were 96.66 percent of quarterly revenues, down from 98.90 percent for the same period last year. This has led to an improvement of 224 basis points in operating margin to 3.34 percent.

Operating income for the quarter was $1.80 million, compared with $0.41 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $3.70 million compared with $2.04 million in the prior year period. At the same time, adjusted EBITDA margin improved 148 basis points in the quarter to 6.86 percent from 5.38 percent in the last year period.

Mr. George Pan, chairman and chief executive officer of Highpower International, commented, "We were pleased to deliver exceptional operating results for fiscal 2016. This growth was driven by double digit growth of our lithium battery business due to the rapid increase in demand for electric vehicles, mobile/portable and power storage system products both in China and worldwide. In 2016, Highpower was very proactive in regional expansion through a series of marketing initiatives across China, and domestic sales taking up a larger share of our revenue percentage. We continue to focus on enhancing our battery technology while adapting to this rapidly evolving market."

The company has spent $11.49 million cash to meet investing activities during the year as against cash outgo of $11.26 million in the last year.

Cash flow from financing activities was $10.13 million for the year, up 124.79 percent or $5.62 million, when compared with the last year.

Cash and cash equivalents stood at $9.32 million as on Dec. 31, 2016, up 59.39 percent or $3.47 million from $5.85 million on Dec. 31, 2015.

Working capital remains negative
Working capital of Highpower International was negative $13.50 million on Dec. 31, 2016 compared with negative $10.52 million on Dec. 31, 2015. Current ratio was at 0.89 as on Dec. 31, 2016, up from 0.88 on Dec. 31, 2015.

Debt moves up
Highpower International has witnessed an increase in total debt over the last one year. It stood at $53.18 million as on Dec. 31, 2016, up 15.16 percent or $7 million from $46.17 million on Dec. 31, 2015. Highpower International has witnessed an increase in short-term debt over the last one year. It stood at $53.18 million as on Dec. 31, 2016, up 15.16 percent or $7 million from $46.17 million on Dec. 31, 2015. Total debt was 32.56 percent of total assets as on Dec. 31, 2016, compared with 34.41 percent on Dec. 31, 2015. Debt to equity ratio was at 1.17 as on Dec. 31, 2016, up from 1.08 as on Dec. 31, 2015. Interest coverage ratio improved to 4.88 for the quarter from 1.96 for the same period last year.