Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 28, 2014 | Jun. 30, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Entity Registrant Name | 'Highpower International, Inc. | ' | ' |
Entity Central Index Key | '0001368308 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 13,978,106 | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Public Float | ' | ' | $8.70 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ' | ' |
Cash and cash equivalents | $7,973,459 | $6,627,334 |
Restricted cash | 28,586,121 | 27,695,569 |
Accounts receivable, net | 33,961,014 | 25,323,899 |
Notes receivable | 1,014,891 | 392,242 |
Prepayments | 4,969,743 | 3,223,795 |
Other receivables | 1,063,656 | 802,907 |
Inventories | 19,739,360 | 16,719,807 |
Total Current Assets | 97,308,244 | 80,785,553 |
Property, plant and equipment, net | 48,548,203 | 33,462,369 |
Land use right, net | 4,421,415 | 4,423,348 |
Intangible asset, net | 650,000 | 700,000 |
Deferred tax assets | 802,225 | 762,954 |
Foreign currency derivatives assets | 63,289 | 255,508 |
TOTAL ASSETS | 151,793,376 | 120,389,732 |
Current Liabilities: | ' | ' |
Accounts payable | 40,026,698 | 27,509,195 |
Deferred revenue | 675,521 | 661,178 |
Short-term loan | 36,142,105 | 20,478,604 |
Notes payable | 25,271,256 | 26,397,200 |
Other payables and accrued liabilities | 7,801,431 | 4,485,918 |
Income taxes payable | 1,279,658 | 1,180,469 |
Current portion of long-term loan | 1,967,536 | 1,925,762 |
Total Current Liabilities | 113,164,205 | 82,638,326 |
Long-term loan | 3,935,071 | 5,777,286 |
TOTAL LIABILITIES | 117,099,276 | 88,415,612 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
Stockholder's equity | ' | ' |
Preferred stock (Par value: $0.0001, authorized: 10,000,000 shares, issued and outstanding: none) | ' | ' |
Common stock (Par value: $0.0001, authorized: 100,000,000 shares, 13,978,106 shares issued and outstanding at December 31, 2013 and 13,582,106 shares outstanding at December 31, 2012) | 1,398 | 1,358 |
Additional paid-in capital | 6,011,305 | 6,035,230 |
Statutory and other reserves | 3,142,411 | 2,790,484 |
Retained earnings | 18,390,875 | 17,291,584 |
Accumulated other comprehensive income | 5,848,859 | 5,049,864 |
Total Equity for the Company's Stockholders | 33,394,848 | 31,168,520 |
Non-controlling interest | 1,299,252 | 805,600 |
TOTAL EQUITY | 34,694,100 | 31,974,120 |
TOTAL LIABILITIES AND EQUITY | $151,793,376 | $120,389,732 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Preferred Stock, par value per share | $0.00 | $0.00 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value per share | $0.00 | $0.00 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 13,978,106 | 13,582,106 |
Common Stock, shares outstanding | 13,978,106 | 13,582,106 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME [Abstract] | ' | ' |
Net sales | $132,849,822 | $112,648,705 |
Cost of sales | -106,465,780 | -88,942,281 |
Gross profit | 26,384,042 | 23,706,424 |
Research and development expenses | -5,711,269 | -4,611,054 |
Selling and distribution expenses | -6,188,176 | -5,347,692 |
General and administrative expenses, including share-based compensation | -12,092,708 | -11,478,541 |
Loss on exchange rate difference | -552,669 | -220,597 |
Gain on derivative instruments | 326,222 | 730,591 |
Total operation expenses | -24,218,600 | -20,927,293 |
Income from operations | 2,165,442 | 2,779,131 |
Other income | 1,538,518 | 630,842 |
Interest expenses | -1,647,155 | -705,218 |
Income before taxes | 2,056,805 | 2,704,755 |
Income taxes expense | -718,016 | -1,132,340 |
Net income | 1,338,789 | 1,572,415 |
Less: net loss attributable to non-controlling interest | -112,429 | -144,607 |
Net income attributable to the Company | 1,451,218 | 1,717,022 |
Comprehensive income | ' | ' |
Net income | 1,338,789 | 1,572,415 |
Foreign currency translation gain | 822,600 | 532,918 |
Comprehensive income | 2,161,389 | 2,105,333 |
Less: comprehensive loss attributable to non-controlling interest | -88,824 | -146,932 |
Comprehensive income attributable to the Company | $2,250,213 | $2,252,265 |
Earnings per share | ' | ' |
- Basic | $0.11 | $0.13 |
- Diluted | $0.11 | $0.13 |
Weighted average common shares outstanding | ' | ' |
- Basic | 13,671,169 | 13,582,106 |
- Diluted | 13,687,698 | 13,582,106 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Statutory and other reserves [Member] | Retained earnings [Member] | Accumulated other comprehensive income [Member] | Non-controlling interest [Member] |
Balance at Dec. 31, 2011 | $28,712,262 | ' | $1,358 | $5,831,237 | $2,726,390 | $15,638,656 | $4,514,621 | ' |
Balance, shares at Dec. 31, 2011 | ' | ' | 13,582,106 | ' | ' | ' | ' | ' |
Proceeds from non-controlling interest | 952,532 | ' | ' | ' | ' | ' | ' | 952,532 |
Foreign currency translation adjustments | 532,918 | ' | ' | ' | ' | ' | 535,243 | -2,325 |
Share based compensation expenses | 203,993 | ' | ' | 203,993 | ' | ' | ' | ' |
Transfer to statutory and other reserves | ' | ' | ' | ' | 64,094 | -64,094 | ' | ' |
Net income | 1,572,415 | ' | ' | ' | ' | 1,717,022 | ' | -144,607 |
Balance at Dec. 31, 2012 | 31,974,120 | ' | 1,358 | 6,035,230 | 2,790,484 | 17,291,584 | 5,049,864 | 805,600 |
Balance, shares at Dec. 31, 2012 | ' | ' | 13,582,106 | ' | ' | ' | ' | ' |
Proceeds from non-controlling interest | ' | ' | ' | -582,476 | ' | ' | ' | 582,476 |
Foreign currency translation adjustments | 822,600 | ' | ' | ' | ' | ' | 798,995 | 23,605 |
Share based compensation expenses | 558,591 | ' | 40 | 558,551 | ' | ' | ' | ' |
Share-based compensation expenses, shares | ' | ' | 396,000 | ' | ' | ' | ' | ' |
Transfer to statutory and other reserves | ' | ' | ' | ' | 351,927 | -351,927 | ' | ' |
Net income | 1,338,789 | ' | ' | ' | ' | 1,451,218 | ' | -112,429 |
Balance at Dec. 31, 2013 | $34,694,100 | ' | $1,398 | $6,011,305 | $3,142,411 | $18,390,875 | $5,848,859 | $1,299,252 |
Balance, shares at Dec. 31, 2013 | ' | ' | 13,978,106 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities | ' | ' |
Net income | $1,338,789 | $1,572,415 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 2,523,583 | 2,090,403 |
Allowance for doubtful accounts | 483,586 | 1,744,655 |
Loss on disposal of property, plant and equipment | 263,454 | 71,473 |
Loss (gain) on derivative instruments | 194,892 | -236,709 |
Deferred income tax | -23,410 | 102,614 |
Share-based payment | 426,779 | 203,993 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -8,511,464 | -5,650,965 |
Notes receivable | -605,229 | 127,414 |
Prepayments | -1,656,526 | 1,063,693 |
Other receivables | -239,801 | 248,026 |
Inventories | -2,618,611 | -3,020,127 |
Accounts payable | 14,566,891 | 6,624,896 |
Deferred revenue | ' | 653,015 |
Other payables and accrued liabilities | 3,178,758 | -2,503,482 |
Income taxes payable | 72,509 | 754,589 |
Net cash flows provided by operating activities | 9,394,200 | 3,845,903 |
Cash flows from investing activities | ' | ' |
Acquisition of plant and equipment | -19,981,373 | -11,646,583 |
Acquisition of land use right | ' | -1,327,754 |
Net cash flows used in investing activities | -19,981,373 | -12,974,337 |
Cash flows from financing activities | ' | ' |
Proceeds from short-term bank loans | 34,088,599 | 14,627,171 |
Repayment of short-term bank loans | -18,770,730 | -3,776,533 |
Proceeds from notes payable | 45,285,470 | 46,359,978 |
Repayment of notes payable | -46,960,375 | -38,188,330 |
Repayment of letter credit | ' | -2,880,000 |
Proceeds from long-term bank loans | ' | 7,924,935 |
Repayment of long-term bank loans | -1,937,987 | -316,997 |
Capital contribution from non-controlling interest | ' | 950,992 |
Increase in restricted cash | -350,756 | -14,696,735 |
Net cash flows provided by financing activities | 11,354,221 | 10,004,481 |
Effect of foreign currency translation on cash and cash equivalents | 579,077 | 575,664 |
Net increase in cash and cash equivalents | 1,346,125 | 1,451,711 |
Cash and cash equivalents - beginning of year | 6,627,334 | 5,175,623 |
Cash and cash equivalents - end of year | 7,973,459 | 6,627,334 |
Cash paid for: | ' | ' |
Income taxes | 668,917 | 275,136 |
Interest expenses | 1,647,155 | 1,247,217 |
Non-cash transactions | ' | ' |
Accounts payable for construction in progress | $1,294,963 | $3,767,497 |
Principal_activities_and_organ
Principal activities and organization | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Principal activities and organization [Abstract] | ' | ||||||||
Principal activities and organization | ' | ||||||||
1 | Principal activities and organization | ||||||||
The consolidated financial statements include the financial statements of Highpower International, Inc. ("Highpower") and its subsidiaries, Hong Kong Highpower Technology Company Limited ("HKHTC"), Shenzhen Highpower Technology Company Limited ("SZ Highpower"), Highpower Energy Technology (Huizhou) Company Limited ("HZ Highpower"), Springpower Technology (Shenzhen) Company Limited ("SZ Springpower"), Ganzhou Highpower Technology Company Limited ("GZ Highpower"), Icon Energy System Company Limited ("ICON") and Huizhou Highpower Technology Co., Ltd (HZ HTC). Highpower and its subsidiaries are collectively referred to as the "Company". | |||||||||
Highpower was incorporated in the State of Delaware on January 3, 2006 to locate a suitable acquisition candidate. HKHTC was incorporated in Hong Kong on July 4, 2003. All other subsidiaries are incorporated in People's Republic of China ("PRC"). | |||||||||
On May 15, 2013, GZ Highpower increased its paid-in capital from RMB15,000,000 ($2,381,293) to RMB30,000,000 ($4,807,847).SZ Highpower holds 60% of the equity interest of GZ Highpower, and four founding management members of GZ Highpower hold the remaining 40%. | |||||||||
The subsidiaries of the Company and their principal activities are described as follows: | |||||||||
Name of company | Place and date | Attributable equity | Principal activities | ||||||
incorporation | interest held | ||||||||
Hong Kong Highpower | Hong Kong | 100 | % | Investment holding | |||||
Technology Co., Ltd | 4-Jul-03 | ||||||||
("HKHTC") | |||||||||
Shenzhen Highpower | PRC | 100 | % | Manufacturing & marketing of batteries | |||||
Technology Co., Ltd | 8-Oct-02 | ||||||||
("SZ Highpower") | |||||||||
Highpower Energy Technology | PRC | 100 | % | Inactive | |||||
(Huizhou) Co., Ltd | 29-Jan-08 | ||||||||
("HZ Highpower") | |||||||||
Springpower Technology | PRC | 100 | % | Research & manufacturing of batteries | |||||
(Shenzhen) Co., Ltd | 4-Jun-08 | ||||||||
("SZ Springpower") | |||||||||
Ganzhou Highpower Technology | PRC | 60 | % | Processing, marketing and research of battery materials | |||||
Co., Ltd | 21-Sep-10 | ||||||||
("GZ Highpower") | |||||||||
Name of company | Place and date | Attributable equity | Principal activities | ||||||
incorporation | interest held | ||||||||
Icon Energy System Co., Ltd. | PRC | 100 | % | Research and production of advanced battery packs and systems | |||||
("ICON") | 23-Feb-11 | ||||||||
Huizhou Highpower Technology Co., Ltd | PRC | 100 | % | Manufacturing & marketing of batteries | |||||
("HZ HTC") | 8-Mar-12 |
Summary_of_significant_account
Summary of significant accounting policies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Summary of significant accounting policies [Abstract] | ' | ||||
Summary of significant accounting policies | ' | ||||
2 | Summary of significant accounting policies | ||||
Basis of presentation | |||||
The consolidated financial statements have been prepared in accordance with the United States generally accepted accounting principles ("U.S. GAAP"). | |||||
Consolidation | |||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. Non-controlling interests represent the equity interest in the GZ Highpower that is not attributable to the Company. | |||||
Use of estimates | |||||
The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include revenues; the allowance for doubtful receivables; recoverability of the carrying amount of inventory; fair values of financial instruments; and the assessment of deferred tax assets or liabilities. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. | |||||
Concentrations of credit risk | |||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of accounts receivable. The Company extends credit based on an evaluation of the customer's financial condition, generally without requiring collateral or other security. In order to minimize the credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. Further, the Company reviews the recoverable amount of each individual trade debt at each balance sheet date to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the management of the Company considers that the Company's credit risk is significantly reduced. | |||||
During the years ended December 31, 2013 and 2012, one major customer accounted for 10% or more of total net sales. The percentage of total net sales from this one major customer in the years ended December 31, 2013 and 2012 was 10.8% and 14.8%, respectively. During the years ended December 31, 2013 and 2012, one major supplier accounted for 10% or more of total purchase amount. The percentage of total purchase amount from this one major supply in the years ended December 31, 2013 and 2012 was 12.8% and14.0%, respectively. | |||||
None of the Company's customers accounted for 10% or more of the accounts receivable as of December 31, 2013. One of the Company's customers accounted for 16% of the accounts receivable as of December 31, 2012. | |||||
Cash and cash equivalents | |||||
Cash and cash equivalents include all cash, deposits in banks and other liquid investments with initial maturities of three months or less. | |||||
Restricted cash | |||||
Restricted cash include time deposits and cash security for bank acceptance bills. | |||||
Accounts receivable | |||||
Accounts receivable are stated at the original amount less an allowance made for doubtful receivables, if any, based on a review of all outstanding amounts at period end. An allowance is also made when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Bad debts are written off when identified. The Company extends unsecured credit to customers in the normal course of business and believes all accounts receivable in excess of the allowances for doubtful receivables to be fully collectible. The Company does not accrue interest on trade accounts receivable. | |||||
Notes receivable | |||||
Notes receivable represent banks' acceptances that have been arranged with third-party financial institutions by certain customers to settle their purchases from us. These banks' acceptances are non-interest bearing and are collectible within six months. | |||||
Inventories | |||||
Inventories are stated at lower of cost or market. Cost is determined using the weighted average method. Inventory includes raw materials, packing materials, work in progress and finished goods. The variable production overhead is allocated to each unit of production on the basis of the actual use of the production facilities. The allocation of fixed production overhead to the costs of conversion is based on the normal capacity of the production facilities. | |||||
Property, plant and equipment | |||||
Property, plant and equipment are stated at cost less accumulated depreciation. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions to physical properties are capitalized. | |||||
Depreciation of property, plant and equipment is provided using the straight-line method over their estimated useful lives at the following annual rates: | |||||
Buildings | 2.5% - 10 | % | |||
Furniture, fixtures and office equipment | 20 | % | |||
Leasehold improvement | 50 | % | |||
Machinery and equipment | 10 | % | |||
Motor vehicles | 20 | % | |||
Upon sale or disposal, the applicable amounts of asset cost and accumulated depreciation are removed from the accounts and the net amount less proceeds from disposal is charged or credited to income. | |||||
Construction in progress represents capital expenditures for direct costs of construction or acquisition and design fees incurred, and the interest expenses directly related to the construction. Capitalization of these costs ceases and the construction in progress is transferred to the appropriate category of property, plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. Construction in progress is not depreciated. | |||||
Land use rights, net | |||||
Land use rights represent payments for the rights to use certain parcels of land for a certain period of time in the PRC Land use rights are carried at cost and charged to expense on a straight-line basis over the period the rights are granted. | |||||
Intangible assets | |||||
Intangible assets represent a royalty-bearing, non-exclusive license to use certain patents owned by Ovonic Battery Company, Inc. (Ovonic), an unrelated party, to manufacture rechargeable nickel metal hydride batteries for portable consumer applications ("Consumer Batteries") in the PRC, and a royalty-bearing, non-exclusive worldwide license to use certain patents owned by Ovonic to manufacture, sell and distribute Consumer Batteries. The value of the licenses was established based on historic acquisition costs. | |||||
An exclusive proprietary technology contributed by the four management founding members of GZ Highpower in exchange for the paid-in capital of GZ Highpower is recorded at the four management members' historical cost basis of nil. | |||||
Intangible assets are amortized over their estimated useful lives, and are reviewed annually for impairment, or more frequently, if indications of possible impairment exist. | |||||
Deferred Revenue | |||||
Deferred revenue represents the government grants received related to developing property, and will be recognized over the useful lives of the assets. The Company received a grant of $666,613 on May 28, 2012 from the Department of Industry and Information Technology for the construction of the new factory in Ganzhou City, Jiangxi Province, PRC. The Company will apply the deferred revenue to reduce the cost basis of the assets, upon completion of construction of the warehouse, thus reducing the annual depreciation charge over the estimated useful life of the property, plant and equipment of the new factory. | |||||
Revenue recognition | |||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, delivery of the product has occurred, title and risk of loss have transferred to the customers and collectability of the receivable is reasonably assured. The majority of domestic sales contracts transfer title and risk of loss to customers upon receipt. The majority of oversea sales contracts transfer title and risk of loss to customers when goods were delivered to the carriers. Revenue is presented net of any sales tax and value added tax. | |||||
The Company does not have arrangements for returns from customers and does not have any future obligations directly or indirectly related to product resale by customers. The Company has no incentive programs. | |||||
Cost of Sales | |||||
Cost of revenues consists primarily of material costs, employee compensation, depreciation and related expenses, which are directly attributable to the production of products. Write-down of inventories to lower of cost or market is also recorded in cost of revenues. | |||||
Shipping and handling | |||||
Shipping and handling expenses are recorded as selling expenses when occurred. Shipping and handling expenses relating to sales were $843,146 and $699,463 respectively for the years ended December 31, 2013 and 2012. | |||||
Research and development | |||||
Research and development expenses include expenses directly attributable to the conduct of research and development programs, including the expenses of salaries, employee benefits, materials, supplies, maintenance of research equipment. All expenses associated with research and development are expensed as incurred. | |||||
Advertising | |||||
Advertising which generally represents the cost of promotions to create or stimulate a positive image of the Company or a desire to buy the Company's products and services, are expensed as incurred. No significant advertising expense was recorded for the years ended December 31, 2013 and 2012. | |||||
Share-Based Compensation | |||||
The Company recognizes compensation expense associated with the issuance of equity instruments to employees for their services. The fair value of the equity instruments is estimated on the date of grant and is expensed in the financial statements over the vesting period. The input assumptions used in determining fair value are the expected life, expected volatility, risk-free rate and the dividend yield. | |||||
Share-based compensation associated with the issuance of equity instruments to non-employees is measured at the fair value of the equity instrument issued or committed to be issued, as this is more reliable than the fair value of the services received. The fair value is measured at the date that the commitment for performance by the counterparty has been reached or the counterparty's performance is complete. | |||||
Income taxes | |||||
The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. | |||||
Uncertain tax positions | |||||
The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized and recorded as necessary in the provision for income taxes. There were no uncertain tax positions as of December 31, 2013 and 2012. | |||||
Comprehensive income | |||||
Recognized revenue, expenses, gains and losses are included in net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the consolidated balance sheet, such items, along with net income, are components of comprehensive income or loss. The components of other comprehensive income or loss are consisted solely of foreign currency translation adjustments, net of the income tax effect. | |||||
Foreign currency translation and transactions | |||||
Highpower's functional currency is the United States dollar ("US$"). HKHTC's functional currency is the Hong Kong dollar ("HK$"). The functional currency of the Company's subsidiaries in the PRC is the Renminbi ("RMB"). | |||||
Most of the Company's oversea sales are priced and settled with US$. At the date a foreign currency transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction is measured initially in the functional currency of the recording entity by use of the exchange rate in effect at that date. The increase or decrease in expected functional currency cash flows upon settlement of a transaction resulting from a change in exchange rates between the functional currency and the currency in which the transaction is denominated is recognized as foreign currency transaction gain or loss that is included in determining net income for the period in which the exchange rate changes. At each balance sheet date, recorded balances that are denominated in a foreign currency are adjusted to reflect the current exchange rate. | |||||
The Company's reporting currency is US$. Assets and liabilities of HKHTC and the PRC subsidiaries are translated at the current exchange rate at the balance sheet dates, revenues and expenses are translated at the average exchange rates during the reporting periods, and equity accounts are translated at historical rates. Translation adjustments are reported in other comprehensive income. | |||||
Segment Reporting | |||||
The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The company's reportable segments are based on products, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Therefore the Company categorizes its business into three reportable segments, namely (i) Ni-MH Batteries; (ii) Lithium Batteries; and (iii) Material trading. | |||||
Fair value of financial instruments | |||||
The carrying values of the Company's financial instruments, including cash and cash equivalents, restricted cash, trade and other receivables, deposits, trade and other payables and bank borrowings, approximate their fair values due to the short-term maturity of such instruments. | |||||
The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | |||||
The Company establishes a fair value hierarchy that requires maximizing the use of observable inputs and minimizing the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | |||||
The Company measures fair value using three levels of inputs that may be used to measure fair value: | |||||
-Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||
-Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |||||
-Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |||||
Derivatives | |||||
From time to time the Company may utilize foreign currency forward contracts to reduce the impact of foreign currency exchange rate risk. Management considered that the foreign currency forwards did not meet the criteria for designated hedging instruments and hedged transactions to qualify for cash flow hedge or fair value hedge accounting. The currency forwards therefore are accounted for as derivatives, with fair value changes reported as gain (loss) of derivative instruments in the income statement. | |||||
Earnings per share | |||||
Basic earnings per share ("EPS") is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares. | |||||
200,000 stock options with a dilutive effect of 16,529 shares were included in the computation of diluted EPS for the year ended December 31, 2013. There were 727,500 options and warrants outstanding as of December 31, 2012 which were not included in the calculation of diluted income per share for the year ended because their effect would have been anti-dilutive for their exercise prices were above the average market values in such periods. | |||||
Recently issued accounting pronouncements | |||||
As of March 28, 2014, the Financial Accounting Standards Board ("FASB") has issued ASU No. 2013-01 through ASU 2014-05, which are not expected to have a material impact on the consolidated financial statements upon adoption. | |||||
Restricted_cash
Restricted cash | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Restricted cash [Abstract] | ' | ||||||||
Restricted cash | ' | ||||||||
3 | Restricted cash | ||||||||
As of December 31, 2013 and December 31, 2012, restricted cash consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Securities for bank acceptance bill | 14,132,921 | 10,906,456 | |||||||
Time deposit | 14,453,200 | 16,789,113 | |||||||
28,586,121 | 27,695,569 |
Accounts_receivable_net
Accounts receivable, net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounts receivable, net [Abstract] | ' | ||||||||
Accounts receivable, net | ' | ||||||||
4 | Accounts receivable, net | ||||||||
As of December 31, 2013 and December 31, 2012, accounts receivable consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Accounts receivable | 36,467,233 | 27,353,677 | |||||||
Less: allowance for doubtful debts | 2,506,219 | 2,029,778 | |||||||
33,961,014 | 25,323,899 | ||||||||
The Company experienced bad debt expenses of $483,586 and $1,744,655, respectively, during the years ended December 31, 2013 and 2012. The Company wrote off accounts receivables of $19,384 and $111,032, respectively, in the years ended December 31, 2013 and 2012. | |||||||||
The account receivable attributable to SZ Springpower, with a carrying amount of $19,018,181, was pledged as collateral for bank loans as of December 31, 2013. |
Prepayments
Prepayments | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Prepayments [Abstract] | ' | ||||||||
Prepayments | ' | ||||||||
5 | Prepayments | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Purchase deposits paid | 2,876,267 | 1,120,911 | |||||||
Advances to staff | 48,499 | 70,882 | |||||||
Other deposits and prepayments | 1,012,358 | 1,261,523 | |||||||
Value-added tax prepayment | 1,032,619 | 770,479 | |||||||
4,969,743 | 3,223,795 | ||||||||
Other deposits and prepayments represent deferred expenses and prepayments to services providers. |
Other_receivables
Other receivables | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other receivables [Abstract] | ' | ||||||||
Other receivables | ' | ||||||||
6 | Other receivables | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Deposit for land use right | 518,603 | 507,592 | |||||||
Others | 545,053 | 295,315 | |||||||
1,063,656 | 802,907 |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
7 | Inventories | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Raw materials | 4,281,232 | 4,237,094 | |||||||
Work in progress | 2,047,627 | 2,678,471 | |||||||
Finished goods | 13,087,995 | 9,647,671 | |||||||
Packing materials | 20,591 | 12,727 | |||||||
Consumables | 301,915 | 143,844 | |||||||
19,739,360 | 16,719,807 | ||||||||
Where there is evidence that the utility of inventories, in their disposal in the ordinary course of business, will be less than cost, whether due to physical deterioration, obsolescence, changes in price levels, or other causes, the inventories are written down to their fair value. . |
Property_plant_and_equipment
Property, plant and equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, plant and equipment, net [Abstract] | ' | ||||||||
Property, plant and equipment | ' | ||||||||
8 | Property, plant and equipment | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Construction in progress | 6,681,652 | 20,769,452 | |||||||
Furniture, fixtures and office equipment | 3,282,818 | 3,066,411 | |||||||
Leasehold improvement | 940,089 | 99,477 | |||||||
Machinery and equipment | 24,600,773 | 15,807,695 | |||||||
Motor vehicles | 1,430,611 | 1,316,717 | |||||||
Building | 21,521,416 | 271,921 | |||||||
58,457,359 | 41,331,673 | ||||||||
Less: accumulated depreciation | 9,909,156 | 7,869,304 | |||||||
48,548,203 | 33,462,369 | ||||||||
The Company recorded depreciation expenses of $2,377,118 and $1,950,205for the years ended December 31, 2013 and 2012, respectively. | |||||||||
The capitalized interest recognized in property, plant and equipment was $Nil and $541,999 for the years ended December 31, 2013 and December 31, 2012. | |||||||||
The buildings comprising the Huizhou facilities were pledged as collateral for bank loans as of December 31, 2013. The carrying amount of the buildings was estimated to be $10,867,411. No property, plant and equipment was pledged as collateral for bank loans as of December 31, 2012. |
Land_use_rights
Land use rights | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Land use rights, net [Abstract] | ' | ||||||||
Land use rights | ' | ||||||||
9 | Land use rights | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Cost | |||||||||
Land located in Huizhou | 3,520,752 | 3,446,001 | |||||||
Land located in Ganzhou | 1,373,515 | 1,344,353 | |||||||
4,894,267 | 4,790,354 | ||||||||
Accumulated amortization | (472,852 | ) | (367,006 | ) | |||||
Net | 4,421,415 | 4,423,348 | |||||||
As of December 31, 2013, land use rights of the Company included certain parcels of land located in Huizhou City, Guangdong Province, the PRC and Ganzhou City, Jiangxi Province, the PRC. The land use rights for land with area of approximately 126,605 square meters and 58,669 square meters, which will expire on May 23, 2057 and January 4, 2062, respectively. | |||||||||
Land use rights are being amortized annually using the straight-line method over a contract term of 50 years. Estimated amortization for the coming years is as follows | |||||||||
2014 | 96,465 | ||||||||
2015 | 96,465 | ||||||||
2016 | 96,465 | ||||||||
2017 | 96,465 | ||||||||
2018 and thereafter | 4,035,555 | ||||||||
4,421,415 | |||||||||
The Company recorded amortization expenses of $96,465 and $90,198 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
The land use right for land located in Huizhou City was pledged as collateral for bank loans as of December 31, 2013 and December 31, 2012. |
Intangible_asset
Intangible asset | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Intangible assets, net [Abstract] | ' | ||||||||
Intangible asset | ' | ||||||||
10 | Intangible asset | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Cost of Consumer battery license fee | 1,000,000 | 1,000,000 | |||||||
Accumulated amortization | (350,000 | ) | (300,000 | ) | |||||
Net | 650,000 | 700,000 | |||||||
The Company is amortizing the $1,000,000 cost of the Consumer Battery License Agreement with Ovonic over a period of 20 years on the straight line basis over the estimated useful life of the underlying technology, which is based on the Company's assessment of existing battery technology, current trends in the battery business, potential developments and improvements, and the Company's current business plan. | |||||||||
As of December 31, 2013, the Company had an exclusive proprietary technology with historical cost of zero but still in use. The exclusive proprietary technology was contributed by four founding management members of GZ Highpower in exchange for the paid-in capital of GZ Highpower. The historical cost basis was recorded at $nil at the four management members' historical cost basis. | |||||||||
Amortization expenses included in selling and distribution costs for the years ended December 31, 2013 and 2012 were $50,000, and $50,000, respectively. |
Other_payables_and_accrued_lia
Other payables and accrued liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other payables and accrued liabilities [Abstract] | ' | ||||||||
Other payables and accrued liabilities | ' | ||||||||
11 | Other payables and accrued liabilities | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Accrued expenses | 3,877,095 | 3,197,899 | |||||||
Royalty payable | 582,486 | 570,120 | |||||||
VAT payable | 1,406,086 | 59,928 | |||||||
Sales deposits received | 1,574,258 | 430,503 | |||||||
Other payables | 361,506 | 227,468 | |||||||
7,801,431 | 4,485,918 |
Taxation
Taxation | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Taxation [Abstract] | ' | ||||||||
Taxation | ' | ||||||||
12 | Taxation | ||||||||
The Company and its subsidiaries file tax returns separately. | |||||||||
1) VAT | |||||||||
Pursuant to the Provisional Regulation of the PRC on VAT and the related implementing rules, all entities and individuals ("taxpayers") that are engaged in the sale of products in the PRC are generally required to pay VAT at a rate of 17% of the gross sales proceeds received, less any deductible VAT already paid or borne by the taxpayers. Further, when exporting goods, the exporter is entitled to a portion of or all the refund of VAT that it has already paid or incurred. The Company's PRC subsidiaries are subject to VAT at 17% of their revenues. | |||||||||
The Company's PRC subsidiaries are subject to VAT at 17% of their revenues. | |||||||||
2) Income tax | |||||||||
United States | |||||||||
Highpower was incorporated in Delaware and is subject to U.S. federal income tax with a system of graduated tax rates ranging from 15% to 35%. As Highpower does not conduct any business in the U.S. or Delaware, it is not subject to U.S. or Delaware state corporate income tax. No deferred U.S. taxes are recorded since all accumulated profits in the PRC will be permanently reinvested in the PRC. | |||||||||
Hong Kong | |||||||||
HKHTC, which was incorporated in Hong Kong, is subject to a corporate income tax rate of 16.5%. | |||||||||
PRC | |||||||||
In accordance with the relevant tax laws and regulations of the PRC, a company registered in the PRC is subject to income taxes within the PRC at the applicable tax rate on the taxable income. | |||||||||
SZ Highpower has obtained the approval and is qualified as a High-Tech Enterprise ("NHTE") status by the Shenzhen Tax Bureau according to the PRC Enterprise Income Tax Law. It is eligible to enjoy a preferential tax rate of 15% from 2011 to 2013. SZ Highpower will reapply for High-Tech Enterprise status in 2014. If SZ Highpower fails to obtain the approval in 2014, SZ Highpower will be subject to income tax at a rate of 25% since the calendar years 2014. | |||||||||
SZ Springpower received High-Tech Enterprise ("NHTE") status in 2013, which is valid for 3 calendar years. As a result, SZ Springpower is entitled to a preferential enterprise income tax rate of 15% from 2013 to 2015. SZ Springpower will reapply for High-Tech Enterprise status in 2016. If SZ Springpower fails to obtain the approval in 2016, SZ Springpower will be subject to income tax at a rate of 25% since the calendar years 2016. | |||||||||
All the other PRC subsidiaries are not entitled to any tax holiday and were subject to income tax at a rate of 25% for calendar years 2013 and 2012. | |||||||||
The components of the provision for income taxes expenses are: | |||||||||
For the year ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Current | 741,426 | 1,029,726 | |||||||
Deferred | (23,410 | ) | 102,614 | ||||||
Total | 718,016 | 1,132,340 | |||||||
The reconciliation of income taxes expenses computed at the statutory tax rate applicable to the Company to income tax expenses is as follows: | |||||||||
For the year ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Income before tax | 2,056,805 | 2,704,755 | |||||||
Provision for income taxes at applicable income tax rate | 484,314 | 747,784 | |||||||
Effect of preferential tax rate | (369,502 | ) | (330,897 | ) | |||||
Non-deductible expenses | 87,945 | 103,099 | |||||||
Change in valuation allowance | 515,259 | 612,354 | |||||||
Effective enterprise income tax | 718,016 | 1,132,340 | |||||||
3) Deferred tax assets | |||||||||
Deferred tax assets and deferred tax liabilities reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purpose and the tax bases used for income tax purpose. The following represents the tax effect of each major type of temporary difference. | |||||||||
For the year ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Tax loss carry-forward | 2,601,823 | 2,025,888 | |||||||
Allowance for doubtful receivables | 112,446 | 72,124 | |||||||
Allowance for inventory obsolescence | 46,441 | 111,227 | |||||||
Fair value change of currency forwards | (9,493 | ) | (11,372 | ) | |||||
Difference for sales cut-off | 46,824 | 49,364 | |||||||
Deferred revenue | 168,880 | 165,295 | |||||||
Total gross deferred tax assets | 2,966,921 | 2,412,526 | |||||||
Valuation allowance | (2,164,696 | ) | (1,649,572 | ) | |||||
Total net deferred tax assets | 802,225 | 762,954 | |||||||
Notes_payable
Notes payable | 12 Months Ended | |
Dec. 31, 2013 | ||
Notes payable [Abstract] | ' | |
Notes payable | ' | |
13 | Notes payable | |
Notes payable are presented to certain suppliers as a payment against the outstanding trade payables. These notes payable are bank guarantee promissory notes which are non-interest bearing and generally mature within six months. The outstanding bank guarantee promissory notes are secured by restricted cash deposited in banks. Outstanding notes payable were $25,271,256 and $26,397,200 as of December 31, 2013 and 2012, respectively. |
Shortterm_loans
Short-term loans | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Short-term loans [Abstract] | ' | ||||||||
Short-term loans | ' | ||||||||
14 | Short-term loans | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Short- term bank loans guaranteed and repayable | 36,142,105 | 20,478,604 | |||||||
within one year | |||||||||
As of December 31, 2013, the above bank borrowings were for working capital and capital expenditure purposes. $12,478,839 of the short-term borrowings as of December 31, 2013 will be due and repayable before March 31, 2014. | |||||||||
The borrowings were secured by personal guarantees executed by certain directors of the Company, a land use right with carrying amount $3,098,262, real properties with a carrying amount of $10,867,411 and trade receivable attributable to SZ Springpower with a carrying amount of $19,018,181. | |||||||||
The borrowings were primarily obtained from 9 banks with interest rates ranging from 1.5% to 7.5% per annum as of December 31, 2013.The interest expenses were $1,128,578 and $759,213 for the year ended December 31, 2013 and 2012, respectively. |
Lines_of_credit
Lines of credit | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Line of credit [Abstract] | ' | ||||||||||||
Lines of credit | ' | ||||||||||||
15 | Lines of credit | ||||||||||||
The Company entered into various credit contracts and revolving lines of credit, which were used for short-term loans and bank acceptance bills. The following tables summarize the unused lines of credit as of December 31, 2013 and December 31, 2012: | |||||||||||||
31-Dec-13 | |||||||||||||
Lender | Starting date | Maturity date | Line of credit | Unused line of credit | |||||||||
$ | $ | ||||||||||||
Industrial and Commercial Bank of China | 7/26/12 | 7/25/15 | 6,558,452 | 1,803,574 | |||||||||
China Citic Bank | 3/29/13 | 3/29/14 | 7,378,259 | 5,738,646 | |||||||||
Bank of China | 1/25/13 | 1/25/2014 (i) | 3,689,129 | 247,582 | |||||||||
Bank of China | 1/10/13 | 1/10/2014 (i) | 12,707,001 | 1,674,876 | |||||||||
China Everbright Bank | 5/30/13 | 5/29/14 | 8,438,433 | 1,382,194 | |||||||||
China Everbright Bank | 9/4/13 | 9/3/14 | 1,147,729 | - | |||||||||
Industrial Bank Co., Ltd | 7/24/13 | 7/24/14 | 8,198,065 | 6,558,452 | |||||||||
Jiang Su Bank Co., Ltd | 6/21/13 | 6/20/14 | 4,918,839 | - | |||||||||
Ping An Bank | 11/12/13 | 9/17/14 | 11,477,291 | 7,564,027 | |||||||||
Shanghai Commercial & Saving Bank | 8/29/13 | 8/29/14 | 3,000,000 | 1,250,000 | |||||||||
Industrial and Commercial Bank of China(MACAU) LIMITED | 7/29/13 | 1/29/14 | 7,093,296 | 3,084,294 | |||||||||
Total | 74,606,494 | 29,303,645 | |||||||||||
(i) The lines of credit from Bank of China matured at each maturity dates. No renewal agreement was signed after maturity dates. | |||||||||||||
31-Dec-12 | |||||||||||||
Lender | Starting date | Maturity date | Line of credit | Unused line of credit | |||||||||
$ | $ | ||||||||||||
Bank of China | 1/13/12 | 1/12/13 | 8,024,008 | 457,047 | |||||||||
Wing Lung Bank Ltd. | 3/29/12 | 3/28/13 | 2,600,000 | - | |||||||||
Wing Lung Bank Ltd. | 4/20/12 | 4/19/13 | 2,709,398 | - | |||||||||
Shanghai Commercial & Savings Bank | 7/31/12 | 6/7/13 | 4,000,000 | - | |||||||||
Shanghai Commercial &Savings Bank | 8/29/12 | 8/29/13 | 2,600,000 | 850,000 | |||||||||
Shanghai Commercial &Savings Bank | 9/7/12 | 9/6/13 | 6,000,000 | 3,000,000 | |||||||||
Industrial and Commercial Bank of China | 7/26/12 | 7/25/15 | 6,419,206 | 2,321,345 | |||||||||
Shenzhen Development Bank Co., Ltd | 12/7/12 | 11/21/13 | 22,467,222 | 13,645,467 | |||||||||
China Everbright Bank | 8/1/12 | 7/31/13 | 8,024,008 | 8,024,008 | |||||||||
China Resources Bank Of Zhuhai | 4/28/12 | 4/28/13 | 6,419,206 | 6,419,206 | |||||||||
Total | 69,263,048 | 34,717,073 | |||||||||||
The lines of credits from Bank of China, Industrial and Commercial Bank of China, China Citic Bank, Jiang Su Bank, Ping An Bank, Industrial Bank Co. Ltd and China Everbright Bank are guaranteed by the Company's Chief Executive Officer, Mr. Dang Yu Pan. | |||||||||||||
Certain of the agreements governing the Company's loans include standard affirmative and negative covenants, including restrictions on granting additional pledges on the Company's property and incurring additional debt and obligations to provide advance notice of major corporate actions, and other covenants including: the borrower may not serve as a guarantor for more than double its net assets; the borrower is restricted in certain circumstances from using the loans in connection with related party transactions or other transactions with affiliates; the borrower must provide monthly reports to certain lenders describing the actual use of loans; the borrower may need to obtain approval to engage in major corporate transactions; and the borrower may need to obtain approval to increase overseas investments, guarantee additional debt or incur additional debt by an amount which exceeds 20% of its total net assets should the lender determine that such action would have a material impact on the ability of the borrower to repay the loan. The covenants in these loan agreements could prohibit the Company from incurring any additional debt without consent from its lenders. The Company believes it would be able to obtain consents from the lenders in the event it needed to do so. The agreements governing the Company's loans may also include covenants that, in certain circumstances, may require the Company's PRC operating subsidiaries to give notice to, or obtain consent from, certain of their lenders prior to making a distribution of net profit, as well as covenants restricting the ability of the Company's PRC operating subsidiaries from extending loans. As of December 31, 2013 and December 31, 2012, the Company was in compliance with all material covenants in its loan agreements. |
Longterm_loans
Long-term loans | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Long-term loans [Abstract] | ' | ||||||||
Long-term loans | ' | ||||||||
16 | Long-term loans | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Long term loans from Bank of China | 5,902,607 | 7,703,048 | |||||||
Less: current portion of long-term borrowings | 1,967,536 | 1,925,762 | |||||||
Long-term borrowings, net of current portion | 3,935,071 | 5,777,286 | |||||||
On January 13, 2012, the Company borrowed $8,198,065 (RMB50 million) from Bank of China, which is guaranteed by the Company's Chief Executive Officer, Mr. Dang Yu Pan. It is five-year long-term loan, with an annual interest rate of 7.04%, which was equal to 110% of the benchmark-lending rate of the People's Bank of China ("PBOC") as of December 31, 2013. Interest expenses are to be paid quarterly. | |||||||||
The interest expenses were $518,577 and $488,004 for the year ended December 31, 2013 and 2012, respectively. | |||||||||
The principal is to be repaid quarterly from September 30, 2012. 2% of the principal was repaid on September 30, 2012 and December 30, 2012, respectively. Thereafter 6% of the principal is to be repaid every quarter after December 31, 2012 until the maturity date. The repayment schedule of the principal is summarized as in below table: | |||||||||
$ | |||||||||
2014 | 1,967,536 | ||||||||
2015 | 1,967,536 | ||||||||
2016 | 1,967,535 | ||||||||
5,902,607 |
Sharebased_compensation
Share-based compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Share-based compensation [Abstract] | ' | ||||||||||||
Share-based compensation | ' | ||||||||||||
17 | Share-based compensation | ||||||||||||
2008 Omnibus Incentive Plan | |||||||||||||
The 2008 Omnibus Incentive Plan (the "2008 Plan") was approved by the Company's Board of Directors on October 29, 2008 to be effective as such date, subject to approval of the Company's stockholders which occurred on December 11, 2008. The 2008 Plan has a ten year term. The 2008 Plan reserves two million shares of common stock for issuance, subject to adjustment in the event of a recapitalization in accordance with the terms of the 2008 Plan. | |||||||||||||
The 2008 Plan authorizes the issuance of awards including stock options, restricted stock units (RSUs), restricted stock, unrestricted stock, stock appreciation rights (SARs) and other equity and/or cash performance incentive awards to employees, directors, and consultants of the Company. Subject to certain restrictions, the Compensation Committee of the Board of Directors has broad discretion to establish the terms and conditions for awards under the 2008 Plan, including the number of shares, vesting conditions and the required service or performance criteria. Options and SARs may have a contractual term of up to ten years and generally vest over three to five years with an exercise price equal to the fair market value on the date of grant. Incentive stock options (ISOs) granted must have an exercise price equal to or greater than the fair market value of the Company's common stock on the date of grant. Repricing of stock options and SARs is permitted without stockholder approval. If a particular award agreement so provides, certain change in control transactions may cause such awards granted under the 2008 Plan to vest at an accelerated rate, unless the awards are continued or substituted for in connection with the transaction. As of December 31, 2013, approximately 632,000 shares of common stock remained available for issuance pursuant to awards granted under the 2008 Plan. | |||||||||||||
Share-based compensation related to employees | |||||||||||||
Number of Shares | Weighted Average Exercise Price | Remaining | |||||||||||
Contractual Term in Years | |||||||||||||
Outstanding, January 1, 2012 | 630,000 | 3.04 | 9.23 | ||||||||||
Granted | 100,000 | $ | 1.15 | - | |||||||||
Exercised | - | - | - | ||||||||||
Forfeited | (65,000 | )- | $ | 2.51- | - | ||||||||
Canceled | - | ||||||||||||
Outstanding, December 31, 2012 | 665,000 | $ | 2.81 | 8.35 | |||||||||
Exercisable, December 31, 2012 | 240,000 | 3.23 | 8.16 | ||||||||||
Vested and expected to vest, December 31, 2012 | 636,112 | $ | 2.82 | 8.35 | |||||||||
Number of Shares | Weighted Average Exercise Price | Remaining | |||||||||||
Contractual Term in Years | |||||||||||||
Outstanding, January 1, 2013 | 665,000 | 2.81 | 8.35 | ||||||||||
Granted | 540,000 | $ | 2.63 | - | |||||||||
Exercised | - | - | - | ||||||||||
Forfeited | (100,000 | )- | $ | 1.15- | - | ||||||||
Canceled | - | ||||||||||||
Outstanding, December 31, 2013 | 1,105,000 | $ | 2.87 | 8.51 | |||||||||
Exercisable, December 31, 2013 | 380,000 | 3.14 | 7.19 | ||||||||||
Vested and expected to vest, December 31, 2013 | 940,022 | $ | 2.9 | 8.33 | |||||||||
The aggregate intrinsic value of options exercisable and options vested and expected to vest at December 31, 2013 was Nil. Intrinsic value is calculated as the amount by which the current market value of a share of common stock exceeds the exercise price multiplied by the number of option shares. | |||||||||||||
During the year ended December 31, 2013, the Company granted options to purchase 540,000 shares of common stock to 70 employees at a weighted average exercise price of $2.63 per share. During the year ended December 31, 2013, one employee had resigned and options to purchase a total of 100,000shares had been forfeited in accordance with the terms and conditions of the 2008 Plan. | |||||||||||||
The weighted-average fair value of options granted to employees for the year ended December 31, 2013 was $1.81 per share as calculated using the Black-Scholes pricing model, with the following weighted-average assumptions: | |||||||||||||
For the year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Expected volatility | 79.47 | % | 71.78 | % | |||||||||
Risk-free interest rate | 1.69 | % | 1.09 | % | |||||||||
Expected term from grant date (in years) | 6.05 | 6.25 | |||||||||||
Dividend rate | - | - | |||||||||||
Fair value | $ | 1.81 | $ | 0.74 | |||||||||
The estimated fair value of share-based compensation to employees is recognized as a charge against income on a ratable basis over the requisite service period, which is generally the vesting period of the award. | |||||||||||||
Expected Term | |||||||||||||
The expected term of stock options represents the weighted-average period that the stock options are expected to remain outstanding. There have been no stock option exercises to date upon which to base an estimate of the expected term. The Company determined it appropriate to estimate the expected term using the "simplified" method as prescribed by the Securities and Exchange Commission, or SEC, in Staff Accounting Bulletin No. 107, or SAB 107, as amended by SAB 110. The simplified method determines an expected term based on the average of the weighted average vesting term and the contractual term of the option. | |||||||||||||
Expected Volatility | |||||||||||||
The Company has limited stock trading history and it is not able to reasonably estimate the fair value of its equity share options because it is not practicable for it to estimate the expected volatility of its share price. The expected volatilities used for the year ended December 31, 2013 are based upon the volatilities of a peer group of comparable publicly traded companies. This peer group was selected by the Company using criteria including similar industry, similar stage of development and comparable market capitalization. | |||||||||||||
Risk free Interest Rate | |||||||||||||
The risk free interest rate assumption is based on U.S. Treasury instruments with a term consistent with the expected term of the Company's stock options. | |||||||||||||
Dividend Yield | |||||||||||||
The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and therefore, used an expected dividend yield of zero in the valuation model. | |||||||||||||
Forfeitures | |||||||||||||
The Company estimates forfeitures at the time of grant and revises the estimates in subsequent periods if actual forfeitures differ from what was estimated. The Company uses historical data to estimate pre-vesting option forfeitures and records share-based compensation expense only for those awards that are expected to vest. All share-based payment awards are amortized on a ratable basis over the requisite service periods of the awards, which are generally the vesting periods. The Company records share-based compensation expense only for those awards that are expected to vest. | |||||||||||||
During the year ended December 31, 2013 the Company granted 246,000 shares of restricted stock to members of the Board of Directors as Restricted stock awards ("RSA") under 2008 Plan. The RSA granted in 2013 had the following vesting periods, 30% immediately upon grand, 30% on first anniversary of grant date, and 40% on second anniversary of grant date. The RSA are governed by agreements between the Company and recipients of the awards. Terms of the agreements are determined by the Compensation Committee. There were no RSA grants prior to 2013. | |||||||||||||
Share-based compensation to nonemployees | |||||||||||||
On July 15, 2013, the Company entered into an agreement with a consulting firm. In return for the consulting firm's financial advisory service in the coming two years, the Company issued an aggregate of 150,000 shares of the Company's restricted stock to the consulting firm on August 15, 2013. The restricted stocks were fully vested upon issuance. The fair value of the restricted stocks was $171,000, which was based on the closing market price of the Company's common stock on August 15, 2013. The share-based compensation is being amortized during a two year period. | |||||||||||||
Pursuant to the above agreement, the Company would also issue another 150,000 shares of the Company's restricted stock to the consulting firm after a specific financing target is completed. Neither were the restricted stocks issued nor was the consulting firm's performance completed as of December 31, 2013. However, the consulting firm was considered to have a performance commitment as of July 15, 2013 because of sufficiently large disincentives for nonperformance. Hence, July 15, 2013 was considered to be the measurement date of the restricted stock. The fair value of the restricted stock was zero, which was the lowest aggregate amount in the case of failure to accomplish the specific financing target. | |||||||||||||
Pursuant to the above agreement, the Company would issue to the consulting firm five year warrants to purchase 200,000 shares of the Company's common stock within 180 days upon execution of the agreement in return for the financial advisory service in the coming two years. Neither were the warrants issued nor was the consulting firm's performance completed as of December 31, 2013. Besides, the consulting firm was considered to have no performance commitment because no specific target is the prerequisite of the warrants. Hence, no share-based compensation for the warrants was recognized as of December 31, 2013. The warrants were issued to the consulting firm on January 17, 2014. | |||||||||||||
The following table summarizes the restricted stock and RSA award activities for 2013: | |||||||||||||
Number | Weighted Average | Remaining | |||||||||||
of Shares | Grant Date | Contractual Term | |||||||||||
Fair Value | in Years | ||||||||||||
Outstanding, January 1, 2013 | - | ||||||||||||
Granted | 396,000 | 2.18 | |||||||||||
Released | (223,800 | ) | 1.69 | ||||||||||
Forfeited | - | - | |||||||||||
Outstanding, December 31, 2013 | 172,200 | 2.81 | 0.95 | ||||||||||
Expected to vest, December 31, 2013 | 138,924 | 2.81 | 1.77 | ||||||||||
Total share-based payment expenses | |||||||||||||
No share-based payment expense was capitalized in the periods presented. As of December 31, 2013 the gross amount of unrecognized share-based compensation expense relating to unvested share-based compensation was approximately $1.6 million, which the Company anticipates recognizing as a charge against income over a weighted average period of 1.90 years. | |||||||||||||
In connection with the share-based compensation to employees and nonemployees, the Company recorded charges of $387,089 and $39,690 and $202,976 and $1,017, respectively, for the years ended December 31, 2013 and 2012. |
Earnings_per_share
Earnings per share | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings per share [Abstract] | ' | ||||||||
Earnings per share | ' | ||||||||
18 | Earnings per share | ||||||||
Basic earnings per common share is computed by dividing income available to common stockholders by the weighted-averages number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock outstanding that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, restricted shares. The dilutive effect of potential dilutive securities is reflected in diluted earnings per common share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company's common stock can result in a greater dilutive effect from potentially dilutive securities. The Company excludes potential common stocks in the diluted EPS computation in periods of losses from continuing operations, as their effect would be anti-dilutive. | |||||||||
The following tables set forth the computation of basic and diluted earnings per common share for the years ended December 31, 2013 and 2012. | |||||||||
Year ended December 31, | |||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Numerator: | |||||||||
Net income attributable to the Company | 1,451,218 | 1,717,022 | |||||||
Denominator: | |||||||||
Weighted-average shares outstanding | |||||||||
- Basic | 13,671,169 | 13,582,106 | |||||||
-diluted | 13,687,698 | 13,582,106 | |||||||
Earnings per common share | |||||||||
- Basic | 0.11 | 0.13 | |||||||
- diluted | 0.11 | 0.13 | |||||||
Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. 200,000 stock options with a dilutive effect of 16,529 shares were included in the computation of diluted EPS for the year ended December 31, 2013. In 2012 Stock options totaled 680,000 shares and warrants totaled 47,500 shares that could potentially dilute earnings per share in the future which were not included in the calculation of diluted earnings per share because they would have been anti-dilutive since the stock's average market price did not exceed the exercise price. |
Defined_contribution_plan
Defined contribution plan | 12 Months Ended | |
Dec. 31, 2013 | ||
Defined contribution plan [Abstract] | ' | |
Defined contribution plan | ' | |
19 | Defined contribution plan | |
Full-time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC operating subsidiaries of the Company make contributions to the government for these benefits based on certain percentages of the employees' salaries. Except for pension benefits, medical care, employee housing fund and other welfare benefits mentioned above, the Company has no legal obligation for the benefits beyond the contributions made. | ||
The total amounts for such employee benefits, which were expensed as incurred, were $1,613,765and $1,014,648 for the years ended December 31, 2013 and 2012, respectively. |
Noncontrolling_interest
Non-controlling interest | 12 Months Ended | |
Dec. 31, 2013 | ||
Non-controlling interest [Abstract] | ' | |
Non-controlling interest | ' | |
20 | Non-controlling interest | |
GZ Highpower is the Company's majority-owned subsidiary which is consolidated in the Company's financial statements while with a non-controlling interest recognized. GZ Highpower is engaged in processing, marketing and research of battery materials. The Company holds 60% interest of GZ Highpower as of December 31, 2013 and 2012. | ||
On May 15, 2013, GZ Highpower increased its paid-in capital from RMB15,000,000 ($2,381,293) to RMB30,000,000 ($4,807,847). SZ Highpower contributed to the increased paid-in capital with cash of RMB 9,000,000 ($1,456,193), while the non-controlling shareholders contributed with an exclusive proprietary technology with fair value of 6,000,000 ($970,795). The exclusive proprietary technology, however, was recorded at the four management members' historical cost basis of nil. Therefore, an increase of $582,477, which was the 40% of the RMB 9,000,000 ($1,456,193), was recorded in non-controlling interest. | ||
As of December 31, 2013 and 2012, non-controlling interest related to GZ Highpower in the consolidated balance sheet was $1,299,252 and $805,600, respectively. | ||
For the years ended December 31, 2013 and 2012, non-controlling interest related to GZ Highpower in the consolidated statements of operations was loss of $112,429 and $144,607, respectively. |
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and contingencies [Abstract] | ' | ||||
Commitments and contingencies | ' | ||||
21 | Commitments and contingencies | ||||
Operating leases commitments | |||||
The Company leases factory and office premises under various non-cancelable operating lease agreements that expire at various dates through years 2014 to 2017,with an option to renew the lease. All leases are on a fixed repayment basis. None of the leases include contingent rentals. Minimum future commitments under these agreements as of December 31, 2013 are as follows: | |||||
$ | |||||
2014 | 1,457,262 | ||||
2015 | 1,388,839 | ||||
2016 | 1,332,218 | ||||
2017 | 336,744 | ||||
4,515,063 | |||||
Rent expenses for the years ended December 31, 2013 and 2012 were$1,343,045 and $1,269,334, respectively. | |||||
Capital commitments | |||||
The Company had contracted capital commitments of $990,031 for the construction of the Ganzhou plant as of December 31, 2013 and $791,934 for the construction of the Huizhou plant as of December 31, 2012. |
Segment_information
Segment information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment information [Abstract] | ' | ||||||||
Segment information | ' | ||||||||
22 | Segment information | ||||||||
The reportable segments are components of the Company which offer different products and are separately managed, with separate financial information available that is separately evaluated regularly by the Company's chief operating decision maker ("CODM") in determining the performance of the business. The Company categorizes its business into three reportable segments, namely (i) Ni-MH Batteries; (ii) Lithium Batteries; and (iii) New Materials. | |||||||||
The CODM evaluates performance based on each reporting segment's net sales, cost of sales, gross profit and total assets. Net sales, cost of sales, gross profit and total assets by segments is set out as follows: | |||||||||
For the year ended December 31, | |||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Net sales | |||||||||
Ni-MH Batteries | 72,886,102 | 71,819,728 | |||||||
Lithium Batteries | 57,935,104 | 37,957,303 | |||||||
New Materials | 2,028,616 | 2,871,674 | |||||||
Total | 132,849,822 | 112,648,705 | |||||||
Cost of Sales | |||||||||
Ni-MH Batteries | 59,131,594 | 55,739,327 | |||||||
Lithium Batteries | 45,515,519 | 30,534,965 | |||||||
New Materials | 1,818,667 | 2,667,989 | |||||||
Total | 106,465,780 | 88,942,281 | |||||||
Gross Profit | |||||||||
Ni-MH Batteries | 13,754,508 | 16,080,401 | |||||||
Lithium Batteries | 12,419,585 | 7,422,338 | |||||||
New Materials | 209,949 | 203,685 | |||||||
Total | 26,384,042 | 23,706,424 | |||||||
December 31,2013 | December 31,2012 | ||||||||
$ | $ | ||||||||
Total Assets | |||||||||
Ni-MH Batteries | 66,960,366 | 64,232,869 | |||||||
Lithium Batteries | 76,357,912 | 51,806,058 | |||||||
New Materials | 8,475,098 | 4,350,805 | |||||||
Total | 151,793,376 | 120,389,732 | |||||||
All long-lived assets of the Company are located in the PRC. Geographic information about the sales and accounts receivable based on the location of the Company's customers is set out as follows: | |||||||||
For the year ended December 31, | |||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Net sales | |||||||||
China (including Hong Kong) | 78,720,514 | 55,427,151 | |||||||
Asia, others | 14,905,869 | 14,690,026 | |||||||
Europe | 28,606,470 | 26,782,320 | |||||||
North America | 9,572,209 | 14,639,386 | |||||||
South America | 490,728 | 526,851 | |||||||
Africa | 362,449 | 204,632 | |||||||
Others | 191,583 | 378,339 | |||||||
132,849,822 | 112,648,705 | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Accounts receivable | |||||||||
China (including Hong Kong) | 24,554,617 | 15,575,555 | |||||||
Asia, others | 3,278,001 | 2,435,129 | |||||||
Europe | 5,191,444 | 5,537,976 | |||||||
North America | 863,156 | 1,632,644 | |||||||
South America | 50,691 | 97,097 | |||||||
Africa | 25 | 35,164 | |||||||
Others | 23,080 | 10,334 | |||||||
33,961,014 | 25,323,899 |
Subsequent_events
Subsequent events | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent events [Abstract] | ' | |
Subsequent events | ' | |
23 | Subsequent events | |
The Company has evaluated subsequent events through the issuance of the consolidated financial statements and identified following event: | ||
On January 17, 2014, the Company issued to a consultant five-year warrants to purchase 100,000 shares of common stock with an exercise price per share of $3.80 and 100,000 shares with an exercise price per share of $2.20 per share. The warrants were issued pursuant to the terms of a consulting agreement entered into in July 2013 and pursuant to which the Company also issued an aggregate of 150,000 shares of common stock on August 15, 2013. |
Summary_of_significant_account1
Summary of significant accounting policies (Policy) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Summary of significant accounting policies [Abstract] | ' | ||||
Basis of presentation | ' | ||||
Basis of presentation | |||||
The consolidated financial statements have been prepared in accordance with the United States generally accepted accounting principles ("U.S. GAAP"). | |||||
Consolidation | ' | ||||
Consolidation | |||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. Non-controlling interests represent the equity interest in the GZ Highpower that is not attributable to the Company. | |||||
Use of estimates | ' | ||||
Use of estimates | |||||
The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions include revenues; the allowance for doubtful receivables; recoverability of the carrying amount of inventory; fair values of financial instruments; and the assessment of deferred tax assets or liabilities. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates. | |||||
Concentrations of credit risk | ' | ||||
Concentrations of credit risk | |||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of accounts receivable. The Company extends credit based on an evaluation of the customer's financial condition, generally without requiring collateral or other security. In order to minimize the credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. Further, the Company reviews the recoverable amount of each individual trade debt at each balance sheet date to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the management of the Company considers that the Company's credit risk is significantly reduced. | |||||
During the years ended December 31, 2013 and 2012, one major customer accounted for 10% or more of total net sales. The percentage of total net sales from this one major customer in the years ended December 31, 2013 and 2012 was 10.8% and 14.8%, respectively. During the years ended December 31, 2013 and 2012, one major supplier accounted for 10% or more of total purchase amount. The percentage of total purchase amount from this one major supply in the years ended December 31, 2013 and 2012 was 12.8% and14.0%, respectively. | |||||
None of the Company's customers accounted for 10% or more of the accounts receivable as of December 31, 2013. One of the Company's customers accounted for 16% of the accounts receivable as of December 31, 2012. | |||||
Cash and cash equivalents | ' | ||||
Cash and cash equivalents | |||||
Cash and cash equivalents include all cash, deposits in banks and other liquid investments with initial maturities of three months or less. | |||||
Restricted cash | ' | ||||
Restricted cash | |||||
Restricted cash include time deposits and cash security for bank acceptance bills. | |||||
Accounts receivable | ' | ||||
Accounts receivable | |||||
Accounts receivable are stated at the original amount less an allowance made for doubtful receivables, if any, based on a review of all outstanding amounts at period end. An allowance is also made when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Bad debts are written off when identified. The Company extends unsecured credit to customers in the normal course of business and believes all accounts receivable in excess of the allowances for doubtful receivables to be fully collectible. The Company does not accrue interest on trade accounts receivable. | |||||
Notes receivable | ' | ||||
Notes receivable | |||||
Notes receivable represent banks' acceptances that have been arranged with third-party financial institutions by certain customers to settle their purchases from us. These banks' acceptances are non-interest bearing and are collectible within six months. | |||||
Inventories | ' | ||||
Inventories | |||||
Inventories are stated at lower of cost or market. Cost is determined using the weighted average method. Inventory includes raw materials, packing materials, work in progress and finished goods. The variable production overhead is allocated to each unit of production on the basis of the actual use of the production facilities. The allocation of fixed production overhead to the costs of conversion is based on the normal capacity of the production facilities. | |||||
Property, plant and equipment | ' | ||||
Property, plant and equipment | |||||
Property, plant and equipment are stated at cost less accumulated depreciation. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Maintenance, repairs and betterments, including replacement of minor items, are charged to expense; major additions to physical properties are capitalized. | |||||
Depreciation of property, plant and equipment is provided using the straight-line method over their estimated useful lives at the following annual rates: | |||||
Buildings | 2.5% - 10 | % | |||
Furniture, fixtures and office equipment | 20 | % | |||
Leasehold improvement | 50 | % | |||
Machinery and equipment | 10 | % | |||
Motor vehicles | 20 | % | |||
Upon sale or disposal, the applicable amounts of asset cost and accumulated depreciation are removed from the accounts and the net amount less proceeds from disposal is charged or credited to income. | |||||
Construction in progress represents capital expenditures for direct costs of construction or acquisition and design fees incurred, and the interest expenses directly related to the construction. Capitalization of these costs ceases and the construction in progress is transferred to the appropriate category of property, plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. Construction in progress is not depreciated. | |||||
Land use rights, net | ' | ||||
Land use rights, net | |||||
Land use rights represent payments for the rights to use certain parcels of land for a certain period of time in the PRC Land use rights are carried at cost and charged to expense on a straight-line basis over the period the rights are granted. | |||||
Intangible assets | ' | ||||
Intangible assets | |||||
Intangible assets represent a royalty-bearing, non-exclusive license to use certain patents owned by Ovonic Battery Company, Inc. (Ovonic), an unrelated party, to manufacture rechargeable nickel metal hydride batteries for portable consumer applications ("Consumer Batteries") in the PRC, and a royalty-bearing, non-exclusive worldwide license to use certain patents owned by Ovonic to manufacture, sell and distribute Consumer Batteries. The value of the licenses was established based on historic acquisition costs. | |||||
An exclusive proprietary technology contributed by the four management founding members of GZ Highpower in exchange for the paid-in capital of GZ Highpower is recorded at the four management members' historical cost basis of nil. | |||||
Intangible assets are amortized over their estimated useful lives, and are reviewed annually for impairment, or more frequently, if indications of possible impairment exist. | |||||
Deferred Revenue | ' | ||||
Deferred Revenue | |||||
Deferred revenue represents the government grants received related to developing property, and will be recognized over the useful lives of the assets. The Company received a grant of $666,613 on May 28, 2012 from the Department of Industry and Information Technology for the construction of the new factory in Ganzhou City, Jiangxi Province, PRC. The Company will apply the deferred revenue to reduce the cost basis of the assets, upon completion of construction of the warehouse, thus reducing the annual depreciation charge over the estimated useful life of the property, plant and equipment of the new factory. | |||||
Revenue recognition | ' | ||||
Revenue recognition | |||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, delivery of the product has occurred, title and risk of loss have transferred to the customers and collectability of the receivable is reasonably assured. The majority of domestic sales contracts transfer title and risk of loss to customers upon receipt. The majority of oversea sales contracts transfer title and risk of loss to customers when goods were delivered to the carriers. Revenue is presented net of any sales tax and value added tax. | |||||
The Company does not have arrangements for returns from customers and does not have any future obligations directly or indirectly related to product resale by customers. The Company has no incentive programs. | |||||
Cost of Sales | ' | ||||
Cost of Sales | |||||
Cost of revenues consists primarily of material costs, employee compensation, depreciation and related expenses, which are directly attributable to the production of products. Write-down of inventories to lower of cost or market is also recorded in cost of revenues. | |||||
Shipping and handling | ' | ||||
Shipping and handling | |||||
Shipping and handling expenses are recorded as selling expenses when occurred. Shipping and handling expenses relating to sales were $843,146 and $699,463 respectively for the years ended December 31, 2013 and 2012. | |||||
Research and development | ' | ||||
Research and development | |||||
Research and development expenses include expenses directly attributable to the conduct of research and development programs, including the expenses of salaries, employee benefits, materials, supplies, maintenance of research equipment. All expenses associated with research and development are expensed as incurred. | |||||
Advertising | ' | ||||
Advertising | |||||
Advertising which generally represents the cost of promotions to create or stimulate a positive image of the Company or a desire to buy the Company's products and services, are expensed as incurred. No significant advertising expense was recorded for the years ended December 31, 2013 and 2012. | |||||
Share-Based Compensation | ' | ||||
Share-Based Compensation | |||||
The Company recognizes compensation expense associated with the issuance of equity instruments to employees for their services. The fair value of the equity instruments is estimated on the date of grant and is expensed in the financial statements over the vesting period. The input assumptions used in determining fair value are the expected life, expected volatility, risk-free rate and the dividend yield. | |||||
Share-based compensation associated with the issuance of equity instruments to non-employees is measured at the fair value of the equity instrument issued or committed to be issued, as this is more reliable than the fair value of the services received. The fair value is measured at the date that the commitment for performance by the counterparty has been reached or the counterparty's performance is complete. | |||||
Income taxes | ' | ||||
Income taxes | |||||
The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. | |||||
Uncertain tax positions | ' | ||||
Uncertain tax positions | |||||
The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized and recorded as necessary in the provision for income taxes. There were no uncertain tax positions as of December 31, 2013 and 2012. | |||||
Comprehensive income | ' | ||||
Comprehensive income | |||||
Recognized revenue, expenses, gains and losses are included in net income or loss. Although certain changes in assets and liabilities are reported as separate components of the equity section of the consolidated balance sheet, such items, along with net income, are components of comprehensive income or loss. The components of other comprehensive income or loss are consisted solely of foreign currency translation adjustments, net of the income tax effect. | |||||
Foreign currency translation and transactions | ' | ||||
Foreign currency translation and transactions | |||||
Highpower's functional currency is the United States dollar ("US$"). HKHTC's functional currency is the Hong Kong dollar ("HK$"). The functional currency of the Company's subsidiaries in the PRC is the Renminbi ("RMB"). | |||||
Most of the Company's oversea sales are priced and settled with US$. At the date a foreign currency transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction is measured initially in the functional currency of the recording entity by use of the exchange rate in effect at that date. The increase or decrease in expected functional currency cash flows upon settlement of a transaction resulting from a change in exchange rates between the functional currency and the currency in which the transaction is denominated is recognized as foreign currency transaction gain or loss that is included in determining net income for the period in which the exchange rate changes. At each balance sheet date, recorded balances that are denominated in a foreign currency are adjusted to reflect the current exchange rate. | |||||
The Company's reporting currency is US$. Assets and liabilities of HKHTC and the PRC subsidiaries are translated at the current exchange rate at the balance sheet dates, revenues and expenses are translated at the average exchange rates during the reporting periods, and equity accounts are translated at historical rates. Translation adjustments are reported in other comprehensive income. | |||||
Segment Reporting | ' | ||||
Segment Reporting | |||||
The Company uses the "management approach" in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company's chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company's reportable segments. The company's reportable segments are based on products, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Therefore the Company categorizes its business into three reportable segments, namely (i) Ni-MH Batteries; (ii) Lithium Batteries; and (iii) Material trading. | |||||
Fair value of financial instruments | ' | ||||
Fair value of financial instruments | |||||
The carrying values of the Company's financial instruments, including cash and cash equivalents, restricted cash, trade and other receivables, deposits, trade and other payables and bank borrowings, approximate their fair values due to the short-term maturity of such instruments. | |||||
The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | |||||
The Company establishes a fair value hierarchy that requires maximizing the use of observable inputs and minimizing the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | |||||
The Company measures fair value using three levels of inputs that may be used to measure fair value: | |||||
-Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||
-Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |||||
-Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |||||
Derivatives | ' | ||||
Derivatives | |||||
From time to time the Company may utilize foreign currency forward contracts to reduce the impact of foreign currency exchange rate risk. Management considered that the foreign currency forwards did not meet the criteria for designated hedging instruments and hedged transactions to qualify for cash flow hedge or fair value hedge accounting. The currency forwards therefore are accounted for as derivatives, with fair value changes reported as gain (loss) of derivative instruments in the income statement. | |||||
Earnings per share | ' | ||||
Earnings per share | |||||
Basic earnings per share ("EPS") is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares. | |||||
200,000 stock options with a dilutive effect of 16,529 shares were included in the computation of diluted EPS for the year ended December 31, 2013. There were 727,500 options and warrants outstanding as of December 31, 2012 which were not included in the calculation of diluted income per share for the year ended because their effect would have been anti-dilutive for their exercise prices were above the average market values in such periods. | |||||
Recently issued accounting pronouncements | ' | ||||
Recently issued accounting pronouncements | |||||
As of March 28, 2014, the Financial Accounting Standards Board ("FASB") has issued ASU No. 2013-01 through ASU 2014-05, which are not expected to have a material impact on the consolidated financial statements upon adoption. |
Principal_activities_and_organ1
Principal activities and organization (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Principal activities and organization [Abstract] | ' | ||||||||
Subsidiaries and Principle Activities | ' | ||||||||
The subsidiaries of the Company and their principal activities are described as follows: | |||||||||
Name of company | Place and date | Attributable equity | Principal activities | ||||||
incorporation | interest held | ||||||||
Hong Kong Highpower | Hong Kong | 100 | % | Investment holding | |||||
Technology Co., Ltd | 4-Jul-03 | ||||||||
("HKHTC") | |||||||||
Shenzhen Highpower | PRC | 100 | % | Manufacturing & marketing of batteries | |||||
Technology Co., Ltd | 8-Oct-02 | ||||||||
("SZ Highpower") | |||||||||
Highpower Energy Technology | PRC | 100 | % | Inactive | |||||
(Huizhou) Co., Ltd | 29-Jan-08 | ||||||||
("HZ Highpower") | |||||||||
Springpower Technology | PRC | 100 | % | Research & manufacturing of batteries | |||||
(Shenzhen) Co., Ltd | 4-Jun-08 | ||||||||
("SZ Springpower") | |||||||||
Ganzhou Highpower Technology | PRC | 60 | % | Processing, marketing and research of battery materials | |||||
Co., Ltd | 21-Sep-10 | ||||||||
("GZ Highpower") | |||||||||
Name of company | Place and date | Attributable equity | Principal activities | ||||||
incorporation | interest held | ||||||||
Icon Energy System Co., Ltd. | PRC | 100 | % | Research and production of advanced battery packs and systems | |||||
("ICON") | 23-Feb-11 | ||||||||
Huizhou Highpower Technology Co., Ltd | PRC | 100 | % | Manufacturing & marketing of batteries | |||||
("HZ HTC") | 8-Mar-12 |
Summary_of_significant_account2
Summary of significant accounting policies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Summary of significant accounting policies [Abstract] | ' | ||||
Schedule of Depreciation Rate of Plant and Equipment | ' | ||||
Depreciation of property, plant and equipment is provided using the straight-line method over their estimated useful lives at the following annual rates: | |||||
Buildings | 2.5% - 10 | % | |||
Furniture, fixtures and office equipment | 20 | % | |||
Leasehold improvement | 50 | % | |||
Machinery and equipment | 10 | % | |||
Motor vehicles | 20 | % | |||
Restricted_cash_Tables
Restricted cash (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Restricted cash [Abstract] | ' | ||||||||
Summary of Restricted Cash Held by Company | ' | ||||||||
As of December 31, 2013 and December 31, 2012, restricted cash consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Securities for bank acceptance bill | 14,132,921 | 10,906,456 | |||||||
Time deposit | 14,453,200 | 16,789,113 | |||||||
28,586,121 | 27,695,569 | ||||||||
Accounts_receivable_net_Tables
Accounts receivable, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounts receivable, net [Abstract] | ' | ||||||||
Schedule of Accounts Receivable | ' | ||||||||
As of December 31, 2013 and December 31, 2012, accounts receivable consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Accounts receivable | 36,467,233 | 27,353,677 | |||||||
Less: allowance for doubtful debts | 2,506,219 | 2,029,778 | |||||||
33,961,014 | 25,323,899 | ||||||||
Prepayments_Tables
Prepayments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Prepayments [Abstract] | ' | ||||||||
Schedule of Prepayments | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Purchase deposits paid | 2,876,267 | 1,120,911 | |||||||
Advances to staff | 48,499 | 70,882 | |||||||
Other deposits and prepayments | 1,012,358 | 1,261,523 | |||||||
Value-added tax prepayment | 1,032,619 | 770,479 | |||||||
4,969,743 | 3,223,795 | ||||||||
Other_receivables_Tables
Other receivables (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other receivables [Abstract] | ' | ||||||||
Schedule of Other Receivables | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Deposit for land use right | 518,603 | 507,592 | |||||||
Others | 545,053 | 295,315 | |||||||
1,063,656 | 802,907 | ||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Raw materials | 4,281,232 | 4,237,094 | |||||||
Work in progress | 2,047,627 | 2,678,471 | |||||||
Finished goods | 13,087,995 | 9,647,671 | |||||||
Packing materials | 20,591 | 12,727 | |||||||
Consumables | 301,915 | 143,844 | |||||||
19,739,360 | 16,719,807 | ||||||||
Property_plant_and_equipment_n
Property, plant and equipment, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, plant and equipment, net [Abstract] | ' | ||||||||
Schedule of Plant and Equipment, Net | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Construction in progress | 6,681,652 | 20,769,452 | |||||||
Furniture, fixtures and office equipment | 3,282,818 | 3,066,411 | |||||||
Leasehold improvement | 940,089 | 99,477 | |||||||
Machinery and equipment | 24,600,773 | 15,807,695 | |||||||
Motor vehicles | 1,430,611 | 1,316,717 | |||||||
Building | 21,521,416 | 271,921 | |||||||
58,457,359 | 41,331,673 | ||||||||
Less: accumulated depreciation | 9,909,156 | 7,869,304 | |||||||
48,548,203 | 33,462,369 | ||||||||
Land_use_rights_net_Tables
Land use rights, net (Tables) (Land Use Right [Member]) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Land Use Right [Member] | ' | ||||||||
Finite-Lived Intangible Assets [Line Items] | ' | ||||||||
Schedule of Land Use Rights | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Cost | |||||||||
Land located in Huizhou | 3,520,752 | 3,446,001 | |||||||
Land located in Ganzhou | 1,373,515 | 1,344,353 | |||||||
4,894,267 | 4,790,354 | ||||||||
Accumulated amortization | (472,852 | ) | (367,006 | ) | |||||
Net | 4,421,415 | 4,423,348 | |||||||
Schedule of Estimated Amortization Expenses | ' | ||||||||
Land use rights are being amortized annually using the straight-line method over a contract term of 50 years. Estimated amortization for the coming years is as follows | |||||||||
2014 | 96,465 | ||||||||
2015 | 96,465 | ||||||||
2016 | 96,465 | ||||||||
2017 | 96,465 | ||||||||
2018 and thereafter | 4,035,555 | ||||||||
4,421,415 | |||||||||
Intangible_assets_net_Tables
Intangible assets, net (Tables) (Other Intangible Assets [Member]) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Intangible Assets [Member] | ' | ||||||||
Finite-Lived Intangible Assets [Line Items] | ' | ||||||||
Schedule of Intangible Assets | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Cost of Consumer battery license fee | 1,000,000 | 1,000,000 | |||||||
Accumulated amortization | (350,000 | ) | (300,000 | ) | |||||
Net | 650,000 | 700,000 | |||||||
Other_payables_and_accrued_lia1
Other payables and accrued liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other payables and accrued liabilities [Abstract] | ' | ||||||||
Schedule of Other Payables and Accrued Liabilities | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Accrued expenses | 3,877,095 | 3,197,899 | |||||||
Royalty payable | 582,486 | 570,120 | |||||||
VAT payable | 1,406,086 | 59,928 | |||||||
Sales deposits received | 1,574,258 | 430,503 | |||||||
Other payables | 361,506 | 227,468 | |||||||
7,801,431 | 4,485,918 | ||||||||
Taxation_Tables
Taxation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Taxation [Abstract] | ' | ||||||||
Components of Provision for Income Taxes Benefit | ' | ||||||||
The components of the provision for income taxes expenses are: | |||||||||
For the year ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Current | 741,426 | 1,029,726 | |||||||
Deferred | (23,410 | ) | 102,614 | ||||||
Total | 718,016 | 1,132,340 | |||||||
Reconciliation of Income Taxes Benefit (Loss) Computed at Statutory Tax Rate to Income Tax Expenses | ' | ||||||||
The reconciliation of income taxes expenses computed at the statutory tax rate applicable to the Company to income tax expenses is as follows: | |||||||||
For the year ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Income before tax | 2,056,805 | 2,704,755 | |||||||
Provision for income taxes at applicable income tax rate | 484,314 | 747,784 | |||||||
Effect of preferential tax rate | (369,502 | ) | (330,897 | ) | |||||
Non-deductible expenses | 87,945 | 103,099 | |||||||
Change in valuation allowance | 515,259 | 612,354 | |||||||
Effective enterprise income tax | 718,016 | 1,132,340 | |||||||
Schedule of Deferred Tax Assets | ' | ||||||||
The following represents the tax effect of each major type of temporary difference. | |||||||||
For the year ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Tax loss carry-forward | 2,601,823 | 2,025,888 | |||||||
Allowance for doubtful receivables | 112,446 | 72,124 | |||||||
Allowance for inventory obsolescence | 46,441 | 111,227 | |||||||
Fair value change of currency forwards | (9,493 | ) | (11,372 | ) | |||||
Difference for sales cut-off | 46,824 | 49,364 | |||||||
Deferred revenue | 168,880 | 165,295 | |||||||
Total gross deferred tax assets | 2,966,921 | 2,412,526 | |||||||
Valuation allowance | (2,164,696 | ) | (1,649,572 | ) | |||||
Total net deferred tax assets | 802,225 | 762,954 | |||||||
Shortterm_loans_Tables
Short-term loans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Short-term loans [Abstract] | ' | ||||||||
Schedule of Short-Term Loans | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Short- term bank loans guaranteed and repayable | 36,142,105 | 20,478,604 | |||||||
within one year | |||||||||
Line_of_credit_Tables
Line of credit (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Line of credit [Abstract] | ' | ||||||||||||
Schedule of Lines of Credit | ' | ||||||||||||
The following tables summarize the unused lines of credit as of December 31, 2013 and December 31, 2012: | |||||||||||||
31-Dec-13 | |||||||||||||
Lender | Starting date | Maturity date | Line of credit | Unused line of credit | |||||||||
$ | $ | ||||||||||||
Industrial and Commercial Bank of China | 7/26/12 | 7/25/15 | 6,558,452 | 1,803,574 | |||||||||
China Citic Bank | 3/29/13 | 3/29/14 | 7,378,259 | 5,738,646 | |||||||||
Bank of China | 1/25/13 | 1/25/2014 (i) | 3,689,129 | 247,582 | |||||||||
Bank of China | 1/10/13 | 1/10/2014 (i) | 12,707,001 | 1,674,876 | |||||||||
China Everbright Bank | 5/30/13 | 5/29/14 | 8,438,433 | 1,382,194 | |||||||||
China Everbright Bank | 9/4/13 | 9/3/14 | 1,147,729 | - | |||||||||
Industrial Bank Co., Ltd | 7/24/13 | 7/24/14 | 8,198,065 | 6,558,452 | |||||||||
Jiang Su Bank Co., Ltd | 6/21/13 | 6/20/14 | 4,918,839 | - | |||||||||
Ping An Bank | 11/12/13 | 9/17/14 | 11,477,291 | 7,564,027 | |||||||||
Shanghai Commercial & Saving Bank | 8/29/13 | 8/29/14 | 3,000,000 | 1,250,000 | |||||||||
Industrial and Commercial Bank of China(MACAU) LIMITED | 7/29/13 | 1/29/14 | 7,093,296 | 3,084,294 | |||||||||
Total | 74,606,494 | 29,303,645 | |||||||||||
(i) The lines of credit from Bank of China matured at each maturity dates. No renewal agreement was signed after maturity dates. | |||||||||||||
31-Dec-12 | |||||||||||||
Lender | Starting date | Maturity date | Line of credit | Unused line of credit | |||||||||
$ | $ | ||||||||||||
Bank of China | 1/13/12 | 1/12/13 | 8,024,008 | 457,047 | |||||||||
Wing Lung Bank Ltd. | 3/29/12 | 3/28/13 | 2,600,000 | - | |||||||||
Wing Lung Bank Ltd. | 4/20/12 | 4/19/13 | 2,709,398 | - | |||||||||
Shanghai Commercial & Savings Bank | 7/31/12 | 6/7/13 | 4,000,000 | - | |||||||||
Shanghai Commercial &Savings Bank | 8/29/12 | 8/29/13 | 2,600,000 | 850,000 | |||||||||
Shanghai Commercial &Savings Bank | 9/7/12 | 9/6/13 | 6,000,000 | 3,000,000 | |||||||||
Industrial and Commercial Bank of China | 7/26/12 | 7/25/15 | 6,419,206 | 2,321,345 | |||||||||
Shenzhen Development Bank Co., Ltd | 12/7/12 | 11/21/13 | 22,467,222 | 13,645,467 | |||||||||
China Everbright Bank | 8/1/12 | 7/31/13 | 8,024,008 | 8,024,008 | |||||||||
China Resources Bank Of Zhuhai | 4/28/12 | 4/28/13 | 6,419,206 | 6,419,206 | |||||||||
Total | 69,263,048 | 34,717,073 | |||||||||||
Longterm_loans_Tables
Long-term loans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Long-term loans [Abstract] | ' | ||||||||
Schedule of Long-Term Debt | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Long term loans from Bank of China | 5,902,607 | 7,703,048 | |||||||
Less: current portion of long-term borrowings | 1,967,536 | 1,925,762 | |||||||
Long-term borrowings, net of current portion | 3,935,071 | 5,777,286 | |||||||
Schedule of Maturities of Long-Term Loans | ' | ||||||||
The repayment schedule of the principal is summarized as in below table: | |||||||||
$ | |||||||||
2014 | 1,967,536 | ||||||||
2015 | 1,967,536 | ||||||||
2016 | 1,967,535 | ||||||||
5,902,607 |
Sharebased_compensation_Tables
Share-based compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of Restricted Stock and RSA Award Activities | ' | ||||||||||||
The following table summarizes the restricted stock and RSA award activities for 2013: | |||||||||||||
Number | Weighted Average | Remaining | |||||||||||
of Shares | Grant Date | Contractual Term | |||||||||||
Fair Value | in Years | ||||||||||||
Outstanding, January 1, 2013 | - | ||||||||||||
Granted | 396,000 | 2.18 | |||||||||||
Released | (223,800 | ) | 1.69 | ||||||||||
Forfeited | - | - | |||||||||||
Outstanding, December 31, 2013 | 172,200 | 2.81 | 0.95 | ||||||||||
Expected to vest, December 31, 2013 | 138,924 | 2.81 | 1.77 | ||||||||||
Stock Options Related to Employees [Member] | ' | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||
Schedule of Share-Based Compensation | ' | ||||||||||||
Share-based compensation related to employees | |||||||||||||
Number of Shares | Weighted Average Exercise Price | Remaining | |||||||||||
Contractual Term in Years | |||||||||||||
Outstanding, January 1, 2012 | 630,000 | 3.04 | 9.23 | ||||||||||
Granted | 100,000 | $ | 1.15 | - | |||||||||
Exercised | - | - | - | ||||||||||
Forfeited | (65,000 | )- | $ | 2.51- | - | ||||||||
Canceled | - | ||||||||||||
Outstanding, December 31, 2012 | 665,000 | $ | 2.81 | 8.35 | |||||||||
Exercisable, December 31, 2012 | 240,000 | 3.23 | 8.16 | ||||||||||
Vested and expected to vest, December 31, 2012 | 636,112 | $ | 2.82 | 8.35 | |||||||||
Number of Shares | Weighted Average Exercise Price | Remaining | |||||||||||
Contractual Term in Years | |||||||||||||
Outstanding, January 1, 2013 | 665,000 | 2.81 | 8.35 | ||||||||||
Granted | 540,000 | $ | 2.63 | - | |||||||||
Exercised | - | - | - | ||||||||||
Forfeited | (100,000 | )- | $ | 1.15- | - | ||||||||
Canceled | - | ||||||||||||
Outstanding, December 31, 2013 | 1,105,000 | $ | 2.87 | 8.51 | |||||||||
Exercisable, December 31, 2013 | 380,000 | 3.14 | 7.19 | ||||||||||
Vested and expected to vest, December 31, 2013 | 940,022 | $ | 2.9 | 8.33 | |||||||||
Schedule of Fair Value of Options Granted, Weighted-Average Assumptions | ' | ||||||||||||
The weighted-average fair value of options granted to employees for the year ended December 31, 2013 was $1.81 per share as calculated using the Black-Scholes pricing model, with the following weighted-average assumptions: | |||||||||||||
For the year ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Expected volatility | 79.47 | % | 71.78 | % | |||||||||
Risk-free interest rate | 1.69 | % | 1.09 | % | |||||||||
Expected term from grant date (in years) | 6.05 | 6.25 | |||||||||||
Dividend rate | - | - | |||||||||||
Fair value | $ | 1.81 | $ | 0.74 |
Earnings_per_share_Tables
Earnings per share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings per share [Abstract] | ' | ||||||||
Computation of Basic and Diluted Earnings Per Common Share | ' | ||||||||
The following tables set forth the computation of basic and diluted earnings per common share for the years ended December 31, 2013 and 2012. | |||||||||
Year ended December 31, | |||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Numerator: | |||||||||
Net income attributable to the Company | 1,451,218 | 1,717,022 | |||||||
Denominator: | |||||||||
Weighted-average shares outstanding | |||||||||
- Basic | 13,671,169 | 13,582,106 | |||||||
-diluted | 13,687,698 | 13,582,106 | |||||||
Earnings per common share | |||||||||
- Basic | 0.11 | 0.13 | |||||||
- diluted | 0.11 | 0.13 | |||||||
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and contingencies [Abstract] | ' | ||||
Schedule of Minimum Future Commitments for Operating Leases | ' | ||||
Minimum future commitments under these agreements as of December 31, 2013 are as follows: | |||||
$ | |||||
2014 | 1,457,262 | ||||
2015 | 1,388,839 | ||||
2016 | 1,332,218 | ||||
2017 | 336,744 | ||||
4,515,063 | |||||
Segment_information_Tables
Segment information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment information [Abstract] | ' | ||||||||
Schedule of Information by Segments | ' | ||||||||
The CODM evaluates performance based on each reporting segment's net sales, cost of sales, gross profit and total assets. Net sales, cost of sales, gross profit and total assets by segments is set out as follows: | |||||||||
For the year ended December 31, | |||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Net sales | |||||||||
Ni-MH Batteries | 72,886,102 | 71,819,728 | |||||||
Lithium Batteries | 57,935,104 | 37,957,303 | |||||||
New Materials | 2,028,616 | 2,871,674 | |||||||
Total | 132,849,822 | 112,648,705 | |||||||
Cost of Sales | |||||||||
Ni-MH Batteries | 59,131,594 | 55,739,327 | |||||||
Lithium Batteries | 45,515,519 | 30,534,965 | |||||||
New Materials | 1,818,667 | 2,667,989 | |||||||
Total | 106,465,780 | 88,942,281 | |||||||
Gross Profit | |||||||||
Ni-MH Batteries | 13,754,508 | 16,080,401 | |||||||
Lithium Batteries | 12,419,585 | 7,422,338 | |||||||
New Materials | 209,949 | 203,685 | |||||||
Total | 26,384,042 | 23,706,424 | |||||||
December 31,2013 | December 31,2012 | ||||||||
$ | $ | ||||||||
Total Assets | |||||||||
Ni-MH Batteries | 66,960,366 | 64,232,869 | |||||||
Lithium Batteries | 76,357,912 | 51,806,058 | |||||||
New Materials | 8,475,098 | 4,350,805 | |||||||
Total | 151,793,376 | 120,389,732 | |||||||
Schedule of Geographic Information about Revenues | ' | ||||||||
All long-lived assets of the Company are located in the PRC. Geographic information about the sales and accounts receivable based on the location of the Company's customers is set out as follows: | |||||||||
For the year ended December 31, | |||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Net sales | |||||||||
China (including Hong Kong) | 78,720,514 | 55,427,151 | |||||||
Asia, others | 14,905,869 | 14,690,026 | |||||||
Europe | 28,606,470 | 26,782,320 | |||||||
North America | 9,572,209 | 14,639,386 | |||||||
South America | 490,728 | 526,851 | |||||||
Africa | 362,449 | 204,632 | |||||||
Others | 191,583 | 378,339 | |||||||
132,849,822 | 112,648,705 | ||||||||
Schedule of Geographic Information about Accounts Receivable | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Accounts receivable | |||||||||
China (including Hong Kong) | 24,554,617 | 15,575,555 | |||||||
Asia, others | 3,278,001 | 2,435,129 | |||||||
Europe | 5,191,444 | 5,537,976 | |||||||
North America | 863,156 | 1,632,644 | |||||||
South America | 50,691 | 97,097 | |||||||
Africa | 25 | 35,164 | |||||||
Others | 23,080 | 10,334 | |||||||
33,961,014 | 25,323,899 |
Principal_activities_and_organ2
Principal activities and organization (Narrative) (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | 15-May-13 | 15-May-13 | Dec. 31, 2012 | Feb. 08, 2012 | Feb. 08, 2012 |
USD ($) | USD ($) | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | |
USD ($) | CNY | USD ($) | CNY | |||||
Subsidiary or Equity Method Investee [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Attributable equity interest held | ' | ' | 60.00% | ' | ' | 60.00% | ' | ' |
Equity interest held by partner | ' | ' | 40.00% | ' | ' | 40.00% | ' | ' |
Additional paid-in capital | $6,011,305 | $6,035,230 | ' | $4,807,847 | 30,000,000 | ' | $2,381,293 | 15,000,000 |
Principal_activities_and_organ3
Principal activities and organization (Schedule of Subsidiaries and Principle Activities) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Hong Kong Highpower Technology Co., Ltd ("HKHTC") [Member] | ' | ' |
Subsidiary or Equity Method Investee [Line Items] | ' | ' |
Date of incorporation | 4-Jul-03 | ' |
Attributable equity interest held | 100.00% | ' |
Shenzhen Highpower Technology Co., Ltd ("SZ Highpower") [Member] | ' | ' |
Subsidiary or Equity Method Investee [Line Items] | ' | ' |
Date of incorporation | 8-Oct-02 | ' |
Attributable equity interest held | 100.00% | ' |
Highpower Energy Technology (Huizhou) Co., Ltd ("HZ Highpower") [Member] | ' | ' |
Subsidiary or Equity Method Investee [Line Items] | ' | ' |
Date of incorporation | 29-Jan-08 | ' |
Attributable equity interest held | 100.00% | ' |
Springpower Technology (Shenzhen) Co., Ltd ("SZ Springpower") [Member] | ' | ' |
Subsidiary or Equity Method Investee [Line Items] | ' | ' |
Date of incorporation | 4-Jun-08 | ' |
Attributable equity interest held | 100.00% | ' |
Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | ' | ' |
Subsidiary or Equity Method Investee [Line Items] | ' | ' |
Date of incorporation | 21-Sep-10 | ' |
Attributable equity interest held | 60.00% | 60.00% |
Icon Energy System Co., Ltd. ("ICON") [Member] | ' | ' |
Subsidiary or Equity Method Investee [Line Items] | ' | ' |
Date of incorporation | 23-Feb-11 | ' |
Attributable equity interest held | 100.00% | ' |
Huizhou Highpower Technology Co., Ltd ("HZ HTC") [Member] | ' | ' |
Subsidiary or Equity Method Investee [Line Items] | ' | ' |
Date of incorporation | 8-Mar-12 | ' |
Attributable equity interest held | 100.00% | ' |
Summary_of_significant_account3
Summary of significant accounting policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | 28-May-12 | |
Deferred Revenue | ' | ' | ' |
Deferred government grants | ' | ' | $666,613 |
Shipping and handling | ' | ' | ' |
Shipping and handling expenses | $843,146 | $699,463 | ' |
Earnings per share | ' | ' | ' |
Stock options with a dilutive effect | 200,000 | ' | ' |
Dilutive effect of options | 16,529 | ' | ' |
Anti-dilutive securities excluded from calculation | ' | 727,500 | ' |
Sales [Member] | Customer One [Member] | ' | ' | ' |
Concentrations of credit risk | ' | ' | ' |
Concentration risk, percentage | 10.80% | 14.80% | ' |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Customer One [Member] | ' | ' | ' |
Concentrations of credit risk | ' | ' | ' |
Concentration risk, percentage | ' | 16.00% | ' |
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | Supplier One [Member] | ' | ' | ' |
Concentrations of credit risk | ' | ' | ' |
Concentration risk, percentage | 12.80% | 14.00% | ' |
Summary_of_significant_account4
Summary of significant accounting policies (Schedule of Depreciation Rates of Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Buildings [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Depreciation rate | 2.50% |
Buildings [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Depreciation rate | 10.00% |
Furniture, Fixtures and Office Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Depreciation rate | 20.00% |
Leasehold Improvement [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Depreciation rate | 50.00% |
Machinery and Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Depreciation rate | 10.00% |
Motor Vehicles [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Depreciation rate | 20.00% |
Restricted_cash_Details
Restricted cash (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | $28,586,121 | $27,695,569 |
Securities for Bank Acceptance Bill [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 14,132,921 | 10,906,456 |
Time Deposit [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | $14,453,200 | $16,789,113 |
Accounts_receivable_net_Schedu
Accounts receivable, net (Schedule of Accounts Receivable) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts receivable, net [Abstract] | ' | ' |
Accounts receivable | $36,467,233 | $27,353,677 |
Less: allowance for doubtful debts | 2,506,219 | 2,029,778 |
Accounts receivable, net | $33,961,014 | $25,323,899 |
Accounts_receivable_net_Narrat
Accounts receivable, net (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts receivable, net [Abstract] | ' | ' |
Allowance for doubtful accounts | $483,586 | $1,744,655 |
Accounts receivable written off | 19,384 | 111,032 |
Receivables pledged as collateral for bank loans | $19,018,181 | ' |
Prepayments_Details
Prepayments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Prepayments [Abstract] | ' | ' |
Purchase deposits paid | $2,876,267 | $1,120,911 |
Advances to staff | 48,499 | 70,882 |
Other deposits and prepayments | 1,012,358 | 1,261,523 |
Value-added tax prepayment | 1,032,619 | 770,479 |
Total prepayments | $4,969,743 | $3,223,795 |
Other_receivables_Details
Other receivables (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other receivables [Abstract] | ' | ' |
Deposit for land use right | $518,603 | $507,592 |
Others | 545,053 | 295,315 |
Total Other receivables | $1,063,656 | $802,907 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Inventories [Abstract] | ' | ' |
Raw materials | $4,281,232 | $4,237,094 |
Work in progress | 2,047,627 | 2,678,471 |
Finished goods | 13,087,995 | 9,647,671 |
Packing materials | 20,591 | 12,727 |
Consumables | 301,915 | 143,844 |
Inventories | $19,739,360 | $16,719,807 |
Property_plant_and_equipment_S
Property, plant and equipment (Schedule of Plant and Equipment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Cost | ' | ' |
Construction in progress | $6,681,652 | $20,769,452 |
Furniture, fixtures and office equipment | 3,282,818 | 3,066,411 |
Leasehold improvement | 940,089 | 99,477 |
Machinery and equipment | 24,600,773 | 15,807,695 |
Motor vehicles | 1,430,611 | 1,316,717 |
Building | 21,521,416 | 271,921 |
Property, plant and equipment, cost | 58,457,359 | 41,331,673 |
Less: accumulated depreciation | 9,909,156 | 7,869,304 |
Property, plant and equipment, net | $48,548,203 | $33,462,369 |
Recovered_Sheet1
Property, plant and equipment (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, plant and equipment, net [Abstract] | ' | ' |
Depreciation expenses | $2,377,118 | $1,950,205 |
Capitalized interest recognized in construction in progress | ' | 541,999 |
Property, plant and equipment pledged as collateral | $10,867,411 | ' |
Land_use_rights_Schedule_of_La
Land use rights (Schedule of Land Use Rights) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Net | $4,421,415 | $4,423,348 |
Land Use Right [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 4,894,267 | 4,790,354 |
Accumulated amortization | -472,852 | -367,006 |
Net | 4,421,415 | 4,423,348 |
Lease terms of land use rights | '50 years | ' |
Land Use Right, Land Located in Huizhou [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 3,520,752 | 3,446,001 |
Area of land | 126,605 | ' |
Land rights expiry date | 23-May-57 | ' |
Land Use Right Land, Located in Ganzhou [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | $1,373,515 | $1,344,353 |
Area of land | 58,669 | ' |
Land rights expiry date | 4-Jan-62 | ' |
Land_use_rights_Amortization_D
Land use rights (Amortization Disclosures) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Estimated amortization for the coming years is as follows | ' | ' |
Net | $4,421,415 | $4,423,348 |
Land Use Right [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization expenses | 96,465 | 90,198 |
Estimated amortization for the coming years is as follows | ' | ' |
2014 | 96,465 | ' |
2015 | 96,465 | ' |
2016 | 96,465 | ' |
2017 | 96,465 | ' |
2018 and thereafter | 4,035,555 | ' |
Net | $4,421,415 | $4,423,348 |
Intangible_asset_Details
Intangible asset (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible asset, net | $650,000 | $700,000 |
Consumer Battery License Fee [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | 1,000,000 | 1,000,000 |
Accumulated amortization | -350,000 | -300,000 |
Intangible asset, net | 650,000 | 700,000 |
Consumer battery license fee | '20 years | ' |
Amortization expenses | 50,000 | 50,000 |
Proprietary Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost | $0 | ' |
Other_payables_and_accrued_lia2
Other payables and accrued liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other payables and accrued liabilities [Abstract] | ' | ' |
Accrued expenses | $3,877,095 | $3,197,899 |
Royalty payable | 582,486 | 570,120 |
VAT payable | 1,406,086 | 59,928 |
Sales deposits received | 1,574,258 | 430,503 |
Other payables | 361,506 | 227,468 |
Other payables and accrued liabilities | $7,801,431 | $4,485,918 |
Taxation_Components_of_Provisi
Taxation (Components of Provision for Income Taxes Benefit) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Taxation [Abstract] | ' | ' |
Current | $741,426 | $1,029,726 |
Deferred | -23,410 | 102,614 |
Effective enterprise income tax | $718,016 | $1,132,340 |
Taxation_Reconciliation_of_Inc
Taxation (Reconciliation of Income Taxes Benefit (Loss) Computed at Statutory Tax Rate to Income Tax Expenses) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Taxation [Abstract] | ' | ' |
Income before tax | $2,056,805 | $2,704,755 |
Provision for income taxes at applicable income tax rate | 484,314 | 747,784 |
Effect of preferential tax rate | -369,502 | -330,897 |
Non-deductible expenses | 87,945 | 103,099 |
Change in valuation allowance | 515,259 | 612,354 |
Effective enterprise income tax | $718,016 | $1,132,340 |
Taxation_Schedule_of_Tax_Effec
Taxation (Schedule of Tax Effect of Each Major Type of Temporary Difference) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Taxation [Abstract] | ' | ' |
Tax loss carry-forward | $2,601,823 | $2,025,888 |
Allowance for doubtful receivables | 112,446 | 72,124 |
Allowance for inventory obsolescence | 46,441 | 111,227 |
Fair value change of currency forwards | -9,493 | -11,372 |
Difference for sales cut-off | 46,824 | 49,364 |
Deferred revenue | 168,880 | 165,295 |
Total gross deferred tax assets | 2,966,921 | 2,412,526 |
Valuation allowance | -2,164,696 | -1,649,572 |
Total net deferred tax assets | $802,225 | $762,954 |
Notes_payable_Details
Notes payable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Notes payable [Abstract] | ' | ' |
Outstanding notes payable | $25,271,256 | $26,397,200 |
Shortterm_loans_Details
Short-term loans (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Short-term Debt [Line Items] | ' | ' |
Guaranteed and repayable within one year short-term bank loans | $36,142,105 | $20,478,604 |
Property, plant and equipment pledged as collateral | 10,867,411 | ' |
Receivables pledged as collateral for bank loans | 19,018,181 | ' |
Interest expenses | 1,128,578 | 759,213 |
Debt Due Before March 31, 2014 [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Guaranteed and repayable within one year short-term bank loans | 12,478,839 | ' |
Maturity date, maximum | 31-Mar-14 | ' |
Short-term Debt [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Guaranteed and repayable within one year short-term bank loans | 12,478,839 | ' |
Land use right pledged as collateral | $3,098,262 | ' |
Minimum interest rate | 1.50% | ' |
Maximum interest rate | 7.50% | ' |
Lines_of_credit_Details
Lines of credit (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Line of Credit Facility [Line Items] | ' | ' | |
Line of credit | $74,606,494 | $69,263,048 | |
Unused line of credit | 29,303,645 | 34,717,073 | |
Debt covenant, percentage of total net assets | 20.00% | ' | |
Bank of China [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | 25-Jan-13 | 13-Jan-12 | |
Maturity date | 25-Jan-14 | [1] | 12-Jan-13 |
Line of credit | 3,689,129 | 8,024,008 | |
Unused line of credit | 247,582 | 457,047 | |
Bank of China [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | 10-Jan-13 | ' | |
Maturity date | 10-Jan-14 | [1] | ' |
Line of credit | 12,707,001 | ' | |
Unused line of credit | 1,674,876 | ' | |
Wing Lung Bank Ltd. [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | ' | 29-Mar-12 | |
Maturity date | ' | 28-Mar-13 | |
Line of credit | ' | 2,600,000 | |
Unused line of credit | ' | ' | |
Wing Lung Bank Ltd. [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | ' | 20-Apr-12 | |
Maturity date | ' | 19-Apr-13 | |
Line of credit | ' | 2,709,398 | |
Unused line of credit | ' | ' | |
Shanghai Commercial & Savings Bank [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | 29-Aug-13 | 31-Jul-12 | |
Maturity date | 29-Aug-14 | 7-Jun-13 | |
Line of credit | 3,000,000 | 4,000,000 | |
Unused line of credit | 1,250,000 | ' | |
Shanghai Commercial & Savings Bank [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | ' | 29-Aug-12 | |
Maturity date | ' | 29-Aug-13 | |
Line of credit | ' | 2,600,000 | |
Unused line of credit | ' | 850,000 | |
Shanghai Commercial & Savings Bank [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | ' | 7-Sep-12 | |
Maturity date | ' | 6-Sep-13 | |
Line of credit | ' | 6,000,000 | |
Unused line of credit | ' | 3,000,000 | |
Industrial and Commercial Bank of China [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | 26-Jul-12 | 26-Jul-12 | |
Maturity date | 25-Jul-15 | 25-Jul-15 | |
Line of credit | 6,558,452 | 6,419,206 | |
Unused line of credit | 1,803,574 | 2,321,345 | |
China Citic Bank [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | 29-Mar-13 | ' | |
Maturity date | 29-Mar-14 | ' | |
Line of credit | 7,378,259 | ' | |
Unused line of credit | 5,738,646 | ' | |
Shenzhen Development Bank Co., Ltd [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | ' | 7-Dec-12 | |
Maturity date | ' | 21-Nov-13 | |
Line of credit | ' | 22,467,222 | |
Unused line of credit | ' | 13,645,467 | |
Ping An Bank Co., Ltd [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | 12-Nov-13 | ' | |
Maturity date | 17-Sep-14 | ' | |
Line of credit | 11,477,291 | ' | |
Unused line of credit | 7,564,027 | ' | |
China Everbright Bank [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | 30-May-13 | 1-Aug-12 | |
Maturity date | 29-May-14 | 31-Jul-13 | |
Line of credit | 8,438,433 | 8,024,008 | |
Unused line of credit | 1,382,194 | 8,024,008 | |
China Everbright Bank [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | 4-Sep-13 | ' | |
Maturity date | 3-Sep-14 | ' | |
Line of credit | 1,147,729 | ' | |
Unused line of credit | ' | ' | |
China Resources Bank Of Zhuhai [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | ' | 28-Apr-12 | |
Maturity date | ' | 28-Apr-13 | |
Line of credit | ' | 6,419,206 | |
Unused line of credit | ' | 6,419,206 | |
Industrial Bank Co., LTD [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | 24-Jul-13 | ' | |
Maturity date | 24-Jul-14 | ' | |
Line of credit | 8,198,065 | ' | |
Unused line of credit | 6,558,452 | ' | |
Jiang Su Bank Co., LTD [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | 21-Jun-13 | ' | |
Maturity date | 20-Jun-14 | ' | |
Line of credit | 4,918,839 | ' | |
Unused line of credit | ' | ' | |
Industrial and Commercial Bank of China (MACAU)LIMITED [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Starting date | 29-Jul-13 | ' | |
Maturity date | 29-Jan-14 | ' | |
Line of credit | 7,093,296 | ' | |
Unused line of credit | $3,084,294 | ' | |
[1] | The lines of credit from Bank of China matured at each maturity dates. No renewal agreement was signed after maturity dates. |
Longterm_loans_Details
Long-term loans (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
USD ($) | USD ($) | Bank Of China [Member] | Bank Of China [Member] | Bank Of China [Member] | |
USD ($) | USD ($) | CNY | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Long term loan term | ' | ' | '5 years | ' | ' |
Long-term loans, face amount | ' | ' | $8,198,065 | ' | 50,000,000 |
Debt instrument frequency of payment | ' | ' | 'Quarterly | ' | ' |
Long term loans from Bank of China | ' | ' | 5,902,607 | 7,703,048 | ' |
Less: current portion of long-term borrowings | 1,967,536 | 1,925,762 | 1,967,536 | 1,925,762 | ' |
Long-term borrowings, net of current portion | 3,935,071 | 5,777,286 | 3,935,071 | 5,777,286 | ' |
Stated interest rate | ' | ' | 7.04% | ' | ' |
Interest rate multiple | ' | ' | 110.00% | ' | ' |
Benchmark rate during period | ' | ' | 7.04% | ' | ' |
Interest on long-term loans | ' | ' | 518,577 | 488,004 | ' |
Percent of principle to be paid in prior year | ' | ' | 2.00% | ' | ' |
Percent of principle to be paid in subsequent periods | ' | ' | 6.00% | ' | ' |
Repayment schedule of the principal: | ' | ' | ' | ' | ' |
2014 | ' | ' | 1,967,536 | ' | ' |
2015 | ' | ' | 1,967,536 | ' | ' |
2016 | ' | ' | $1,967,535 | ' | ' |
Sharebased_compensation_Narrat
Share-based compensation (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized share-based compensation expense | ' | $1,600,000 | ' |
Weighted-average recognition period | ' | '1 year 10 months 24 days | ' |
Share-based compensation | ' | 426,779 | 203,993 |
Shares issued to consultants | 150,000 | ' | ' |
Fair market value of shares issued | 171,000 | ' | ' |
Compensation expense related to shares issued | ' | 39,690 | 1,017 |
Stock Options Related to Employees [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Aggregate intrinsic value of options exercisable | ' | ' | ' |
Aggregate intrinsic value of options vested and expected to vest | ' | ' | ' |
Common stock shares granted | ' | 540,000 | 100,000 |
Exercise price of options granted | ' | $2.63 | $1.15 |
Options forfeited | ' | 1,000,000 | 65,000 |
Weighted-average fair value of options granted | ' | $1.81 | $0.74 |
Share-based compensation | ' | $387,089 | $202,976 |
Restricted Stock Awards [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock granted | ' | 396,000 | ' |
Restricted Stock Awards [Member] | Director [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock granted | ' | 246,000 | ' |
Restricted Stock Awards [Member] | Director [Member] | Vesting Immediately [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting percentage | ' | 30.00% | ' |
Restricted Stock Awards [Member] | Director [Member] | First Anniversary of Grant Date [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting percentage | ' | 30.00% | ' |
Restricted Stock Awards [Member] | Director [Member] | Second Anniversary of Grant Date [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting percentage | ' | 40.00% | ' |
Warrant [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Goods and Nonemployee Services Transaction, Shares Approved for Issuance | 200,000 | ' | ' |
2008 Omnibus Incentive Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Common stock available for issuance | ' | 632,000 | ' |
Incentive plan term | ' | '10 years | ' |
Common stock reserved for issuance | ' | 2,000,000 | ' |
2008 Omnibus Incentive Plan [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period for plan | ' | '3 years | ' |
2008 Omnibus Incentive Plan [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period for plan | ' | '5 years | ' |
2008 Omnibus Incentive Plan [Member] | Restricted Stock Awards [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Common stock shares granted | ' | 246,000 | ' |
Sharebased_compensation_Schedu
Share-based compensation (Schedule of Share-Based Compensation Related to Employees) (Details) (Stock Options Related to Employees [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Options Related to Employees [Member] | ' | ' | ' |
Number of Shares | ' | ' | ' |
Outstanding, beginning balance | 665,000 | 630,000 | ' |
Granted | 540,000 | 100,000 | ' |
Exercised | ' | ' | ' |
Forfeited | -1,000,000 | -65,000 | ' |
Canceled | ' | ' | ' |
Outstanding, ending balance | 1,105,000 | 665,000 | 630,000 |
Exercisable, December 31 | 380,000 | 240,000 | ' |
Vested and expected to vest, December 31 | 940,022 | 636,112 | ' |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding, beginning balance | $2.81 | $3.04 | ' |
Granted | $2.63 | $1.15 | ' |
Exercised | ' | ' | ' |
Forfeited | $1.15 | $2.51 | ' |
Canceled | ' | ' | ' |
Outstanding, ending balance | $2.87 | $2.81 | $3.04 |
Exercisable, December 31, | $3.14 | $3.23 | ' |
Vested and expected to vest, December 31 | $2.90 | $2.82 | ' |
Remaining Contractual Term in Years | ' | ' | ' |
Outstanding | '8 years 6 months 4 days | '8 years 4 months 6 days | '9 years 2 months 23 days |
Exercisable, December 31 | '7 years 2 months 9 days | '8 years 1 month 28 days | ' |
Vested and expected to vest, December 31 | '8 years 3 months 29 days | '8 years 4 months 6 days | ' |
Sharebased_compensation_Schedu1
Share-based compensation (Schedule of Assumptions Used) (Details) (Stock Options Related to Employees [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options Related to Employees [Member] | ' | ' |
Weighted Average Assumptions for Fair Values of Stock Options | ' | ' |
Expected volatility | 79.47% | 71.78% |
Risk-free interest rate | 1.69% | 1.09% |
Expected term from grant date (in years) | '6 years 18 days | '6 years 3 months |
Dividend rate | ' | ' |
Fair value | $1.81 | $0.74 |
Sharebased_compensation_Schedu2
Share-based compensation (Schedule of Share-Based Compensation Related to Non-Employees) (Details) (Restricted Stock [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Stock [Member] | ' |
Number of Shares | ' |
Outstanding, beginning balance | ' |
Granted | 396,000 |
Released | -223,800 |
Forfeited | ' |
Outstanding, ending balance | 172,200 |
Expected to vest | 138,924 |
Weighted Average Grant Date Fair Value | ' |
Outstanding, beginning balance | ' |
Granted | $2.18 |
Released | $1.69 |
Forfeited | ' |
Outstanding, ending balance | $2.81 |
Expected to vest | $2.81 |
Remaining Contractual Term in Years | ' |
Outstanding | '11 months 12 days |
Expected to vest | '1 year 9 months 7 days |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Numerator: | ' | ' |
Net income attributable to the Company | $1,451,218 | $1,717,022 |
Denominator: | ' | ' |
- Basic | 13,671,169 | 13,582,106 |
- Diluted | 13,687,698 | 13,582,106 |
- Basic | $0.11 | $0.13 |
- Diluted | $0.11 | $0.13 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive securities excluded from calculation | ' | 727,500 |
Stock options with a dilutive effect | 200,000 | ' |
Dilutive effect of options | 16,529 | ' |
Stock Options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive securities excluded from calculation | ' | 680,000 |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive securities excluded from calculation | ' | 47,500 |
Defined_contribution_plan_Deta
Defined contribution plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Defined contribution plan [Abstract] | ' | ' |
Contributions to employee benefits plan | $1,613,765 | $1,014,648 |
Noncontrolling_interest_Detail
Non-controlling interest (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | 15-May-13 | 15-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 08, 2012 | Feb. 08, 2012 | |
USD ($) | USD ($) | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | |
USD ($) | CNY | USD ($) | USD ($) | USD ($) | CNY | |||
Subsidiary or Equity Method Investee [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Additional paid-in capital | $6,011,305 | $6,035,230 | $4,807,847 | 30,000,000 | ' | ' | $2,381,293 | 15,000,000 |
Non-controlling interest | 1,299,252 | 805,600 | ' | ' | 1,299,252 | 805,600 | ' | ' |
Net income (loss) attributable to non-controlling interest | -112,429 | -144,607 | ' | ' | -112,429 | -144,607 | ' | ' |
Cash proceeds from contribution | ' | ' | 1,456,193 | 9,000,000 | ' | ' | ' | ' |
Proprietary technology acquired | ' | ' | 970,795 | 6,000,000 | ' | ' | ' | ' |
Attributable equity interest held | ' | ' | ' | ' | 60.00% | 60.00% | ' | ' |
Equity interest held by partner | ' | ' | ' | ' | 40.00% | 40.00% | ' | ' |
Increase in noncontrolling interest | ' | $952,532 | ' | ' | $582,477 | ' | ' | ' |
Commitments_and_contingencies_1
Commitments and contingencies (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and contingencies [Abstract] | ' | ' |
Rent expenses | $1,343,045 | $1,269,334 |
Commitments and Contingencies Disclosure [Line Items] | ' | ' |
Contracted capital commitments | $990,031 | $791,934 |
Minimum [Member] | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' |
Lease expiration year | '2014 | ' |
Maximum [Member] | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' |
Lease expiration year | '2017 | ' |
Commitments_and_contingencies_2
Commitments and contingencies (Schedule of Minimum Future Commitments for Operating Leases) (Details) (USD $) | Dec. 31, 2013 |
Commitments and contingencies [Abstract] | ' |
2014 | $1,457,262 |
2015 | 1,388,839 |
2016 | 1,332,218 |
2017 | 336,744 |
Total minimum future commitments | $4,515,063 |
Segment_information_Schedule_o
Segment information (Schedule of Segment Information about Revenues) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | $132,849,822 | $112,648,705 |
Cost of Sales | 106,465,780 | 88,942,281 |
Gross profit | 26,384,042 | 23,706,424 |
Ni-MH Batteries [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 72,886,102 | 71,819,728 |
Cost of Sales | 59,131,594 | 55,739,327 |
Gross profit | 13,754,508 | 16,080,401 |
Lithium Batteries [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 57,935,104 | 37,957,303 |
Cost of Sales | 45,515,519 | 30,534,965 |
Gross profit | 12,419,585 | 7,422,338 |
New Materials [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 2,028,616 | 2,871,674 |
Cost of Sales | 1,818,667 | 2,667,989 |
Gross profit | $209,949 | $203,685 |
Segment_information_Schedule_o1
Segment information (Schedule of Segment Information about Total Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | $151,793,376 | $120,389,732 |
Ni-MH Batteries [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | 66,960,366 | 64,232,869 |
Lithium Batteries [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | 76,357,912 | 51,806,058 |
New Materials [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | $8,475,098 | $4,350,805 |
Segment_information_Schedule_o2
Segment information (Schedule of Geographic Information about Revenues) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net sales | $132,849,822 | $112,648,705 |
China (including Hong Kong) [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net sales | 78,720,514 | 55,427,151 |
Asia, Others [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net sales | 14,905,869 | 14,690,026 |
Europe [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net sales | 28,606,470 | 26,782,320 |
North America [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net sales | 9,572,209 | 14,639,386 |
South America [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net sales | 490,728 | 526,851 |
Africa [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net sales | 362,449 | 204,632 |
Others [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net sales | $191,583 | $378,339 |
Segment_information_Schedule_o3
Segment information (Schedule of Geographic Information about Accounts Receivable) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Accounts receivable | $33,961,014 | $25,323,899 |
China (including Hong Kong) [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Accounts receivable | 24,554,617 | 15,575,555 |
Asia, Others [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Accounts receivable | 3,278,001 | 2,435,129 |
Europe [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Accounts receivable | 5,191,444 | 5,537,976 |
North America [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Accounts receivable | 863,156 | 1,632,644 |
South America [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Accounts receivable | 50,691 | 97,097 |
Africa [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Accounts receivable | 25 | 35,164 |
Others [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Accounts receivable | $23,080 | $10,334 |
Subsequent_events_Details
Subsequent events (Details) (USD $) | 1 Months Ended | ||
Aug. 31, 2013 | Jan. 17, 2014 | Jan. 17, 2014 | |
Subsequent Event [Member] | Subsequent Event [Member] | ||
Warrant [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' |
Shares issued to consultant | 150,000 | 100,000 | ' |
Shares issued, price per share | ' | $2.20 | ' |
Common stock shares granted | ' | ' | 100,000 |
Stock option granted, weighted average exercise price | ' | ' | $3.80 |