Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 30, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Entity Registrant Name | Highpower International, Inc. | ||
Entity Central Index Key | 1368308 | ||
Current Fiscal Year End Date | -19 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 15,084,746 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $42.50 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current Assets: | ||
Cash and cash equivalents | $14,611,892 | $7,973,459 |
Restricted cash | 15,396,827 | 28,586,121 |
Accounts receivable, net | 32,316,607 | 33,961,014 |
Notes receivable | 621,110 | 1,014,891 |
Prepayments | 3,283,520 | 4,969,743 |
Other receivables | 665,828 | 1,063,656 |
Inventories | 22,268,069 | 19,739,360 |
Total Current Assets | 89,163,853 | 97,308,244 |
Property, plant and equipment, net | 50,437,718 | 48,548,203 |
Land use right, net | 4,305,317 | 4,421,415 |
Intangible asset, net | 600,000 | 650,000 |
Deferred tax assets | 1,647,184 | 802,225 |
Foreign currency derivatives assets | 63,289 | |
TOTAL ASSETS | 146,154,072 | 151,793,376 |
Current Liabilities: | ||
Accounts payable | 44,562,647 | 40,026,698 |
Deferred income | 1,887,409 | 675,521 |
Short-term loan | 15,195,040 | 36,142,105 |
Notes payable | 29,903,248 | 25,271,256 |
Other payables and accrued liabilities | 5,896,547 | 7,801,431 |
Income taxes payable | 1,968,656 | 1,279,658 |
Current portion of long-term loan | 1,959,248 | 1,967,536 |
Total Current Liabilities | 101,372,795 | 113,164,205 |
Warrant Liability | 1,067,674 | |
Long-term loan | 1,959,247 | 3,935,071 |
TOTAL LIABILITIES | 104,399,716 | 117,099,276 |
COMMITMENTS AND CONTINGENCIES | ||
Stockholders' 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, 15,084,746 shares issued and outstanding at December 31, 2014 and 13,978,106 shares issued and outstanding at December 31, 2013) | 1,508 | 1,398 |
Additional paid-in capital | 10,530,430 | 6,011,305 |
Statutory and other reserves | 3,611,501 | 3,142,411 |
Retained earnings | 20,675,021 | 18,390,875 |
Accumulated other comprehensive income | 5,628,657 | 5,848,859 |
Total equity for the company's stockholders | 40,447,117 | 33,394,848 |
Non-controlling interest | 1,307,239 | 1,299,252 |
TOTAL EQUITY | 41,754,356 | 34,694,100 |
TOTAL LIABILITIES AND EQUITY | $146,154,072 | $151,793,376 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
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 | 15,084,746 | 13,978,106 |
Common Stock, shares outstanding | 15,084,746 | 13,978,106 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME [Abstract] | ||
Net sales | $147,088,166 | $132,849,822 |
Cost of sales | -116,937,363 | -106,465,780 |
Gross profit | 30,150,803 | 26,384,042 |
Research and development expenses | -7,709,618 | -5,711,269 |
Selling and distribution expenses | -6,551,755 | -6,188,176 |
General and administrative expenses | -12,893,378 | -12,092,708 |
Foreign currency transaction gain (loss) | 273,900 | -552,669 |
Gain (loss) on derivative instruments | -54,406 | 326,222 |
Total operating expenses | -26,935,257 | -24,218,600 |
Income from operations | 3,215,546 | 2,165,442 |
Gain on change of fair value of warrant liability | 106,278 | |
Other income | 1,707,516 | 1,538,518 |
Interest expenses | -1,838,155 | -1,647,155 |
Income before taxes | 3,191,185 | 2,056,805 |
Income taxes expenses | -590,318 | -718,016 |
Net income | 2,600,867 | 1,338,789 |
Less: net loss attributable to non-controlling interest | -152,369 | -112,429 |
Net income attributable to the Company | 2,753,236 | 1,451,218 |
Comprehensive income | ||
Net income | 2,600,867 | 1,338,789 |
Foreign currency translation gain (loss) | -156,926 | 822,600 |
Comprehensive income | 2,443,941 | 2,161,389 |
Less: comprehensive loss attributable to non-controlling interest | -89,093 | -88,824 |
Comprehensive income attributable to the Company | $2,533,034 | $2,250,213 |
Earnings per share of common stock attributable to the Company | ||
- Basic | $0.19 | $0.11 |
- Diluted | $0.18 | $0.11 |
Weighted average number of common stock outstanding | ||
- Basic | 14,739,073 | 13,671,169 |
- Diluted | 15,154,239 | 13,687,698 |
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, 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 | |||||||
Change in 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 | |||||||
Proceeds from stock issuance, net | 3,459,212 | 100 | 3,459,112 | |||||
Proceeds from stock issuance, net, shares | 1,000,000 | |||||||
Change in non-controlling interest | -97,080 | 97,080 | ||||||
Foreign currency translation adjustments | -156,926 | -220,202 | 63,276 | |||||
Share based compensation expenses | 1,157,103 | 10 | 1,157,093 | |||||
Share-based compensation expenses, shares | 106,640 | |||||||
Transfer to statutory and other reserves | 469,090 | -469,090 | ||||||
Net income | 2,600,867 | 2,753,236 | -152,369 | |||||
Balance at Dec. 31, 2014 | $41,754,356 | $1,508 | $10,530,430 | $3,611,501 | $20,675,021 | $5,628,657 | $1,307,239 | |
Balance, shares at Dec. 31, 2014 | 15,084,746 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | ||
Net income | $2,600,867 | $1,338,789 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,201,533 | 2,523,583 |
Allowance for doubtful accounts | 768 | 483,586 |
Loss on disposal of property, plant and equipment | 227,264 | 263,454 |
Loss on derivative instruments | 62,801 | 194,892 |
Deferred income tax | -845,068 | -23,410 |
Share based payment | 1,288,916 | 426,779 |
Gain on change of fair value of warrant liability | -106,278 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,472,589 | -8,511,464 |
Notes receivable | 388,137 | -605,229 |
Prepayments | 1,661,111 | -1,656,526 |
Other receivables | 391,965 | -239,801 |
Inventories | -2,602,659 | -2,618,611 |
Accounts payable | 5,672,372 | 14,566,891 |
Deferred income | 1,880,776 | |
Other payables and accrued liabilities | -1,867,493 | 3,178,758 |
Income taxes payable | 691,949 | 72,509 |
Net cash flows provided by operating activities | 15,119,550 | 9,394,200 |
Cash flows from investing activities | ||
Acquisition of plant and equipment | -8,881,328 | -19,981,373 |
Net cash flows used in investing activities | -8,881,328 | -19,981,373 |
Cash flows from financing activities | ||
Proceeds from short-term bank loans | 20,346,228 | 34,088,599 |
Repayment of short-term bank loans | -41,122,204 | -18,770,730 |
Repayment of long-term bank loans | -1,952,362 | -1,937,987 |
Proceeds from notes payable | 52,258,487 | 45,285,470 |
Repayment of notes payable | -47,536,694 | -46,960,375 |
Proceeds from issuance of capital stock and warrants, net | 4,633,164 | |
Change in restricted cash | 13,038,071 | -350,756 |
Net cash flows provided by (used in) financing activities | -335,310 | 11,354,221 |
Effect of foreign currency translation on cash and cash equivalents | 735,521 | 579,077 |
Net increase in cash and cash equivalents | 6,638,433 | 1,346,125 |
Cash and cash equivalents - beginning of year | 7,973,459 | 6,627,334 |
Cash and cash equivalents - end of year | 14,611,892 | 7,973,459 |
Cash paid for: | ||
Income taxes | 743,437 | 668,917 |
Interest expenses | 1,912,584 | 1,647,155 |
Non-cash transactions | ||
Accounts payable for construction in progress | 1,294,963 | |
Deduction of deferred income from property, plant and equipment | $672,675 |
Principal_activities_and_organ
Principal activities and organization | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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. HKHTC was incorporated in Hong Kong on July 4, 2003. All other subsidiaries are incorporated in the 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%. On November 13, 2014, GZ Highpower increased its paid-in capital from RMB30,000,000 ($4,898,119) to RMB40,000,000 ($6,530,825) and the additional capital of RMB10,000,000 was contributed by SZ Highpower. As of December 31, 2014, SZ Highpower holds 70% of the equity interest of GZ Highpower, and four founding management members of GZ Highpower hold the remaining 30%. | |||||||||
In April 2014, the Company and certain institutional investors entered into a securities purchase agreement, pursuant to which the Company sold 1,000,000 shares of common stock and warrants exercisable for 500,000 shares of common stock in a registered direct offering at a price of $5.05 per fixed combination for aggregate proceeds of $5.05 million. The shares and warrants were sold in multiples of a fixed combination consisting of (i) one share of common stock and (ii) one immediately exercisable warrant to purchase 0.50 shares of common stock. The net proceeds from the offering was $4,633,164, after deducting fees due the placement agent and offering expenses. | |||||||||
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 and marketing of batteries | |||||
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 | 70 | % | Processing, marketing and research of battery materials | |||||
21-Sep-10 | |||||||||
Co., Ltd | |||||||||
("GZ Highpower") | |||||||||
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, 2014 | |||||
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 year ended December 31, 2014, no customer accounted for 10% or more of total net sales. One customer accounted for 10.8% in the year ended December 31, 2013. | |||||
During the year ended December 31, 2014, no supplier accounted for 10% or more of total purchase amount. One supplier accounted for 12.8% in the year ended December 31, 2013. | |||||
None of the Company's customers accounted for 10% or more of the accounts receivable as of December 31, 2014 and December 31, 2013. | |||||
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 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, consumables, 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% - 5 | % | |||
Furniture, fixtures and office equipment | 20 | % | |||
Leasehold improvement | 20% - 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 founding management 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. | |||||
Government grants | |||||
Government grants are recognized when received and all the conditions for their receipt have been met. | |||||
Specifically, government grants whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets is recognized on the consolidated balance sheet as deferred income and deducted in calculating the carrying amount of the related asset. The revenue from such grants is recognized in profit or loss over the life of the related depreciable asset as a reduction of depreciation expense. As of December 31, 2014 and 2013, the Company recorded deferred income of $1,887,409 and $657,521, respectively, for the government grants to purchase non-current assets. | |||||
Government grants as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related benefit are recognized as other income in the period in which they become receivable. Approximately $330,302 and $523,243 government grant were recognized as other income in 2014 and 2013, respectively. | |||||
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 sales 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 $971,240 and $843,146 respectively for the years ended December 31, 2014 and 2013. | |||||
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, and 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, 2014 and 2013. | |||||
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, 2014 and 2013. | |||||
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) New Material. | |||||
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. | |||||
Warrant Liabilities | |||||
For warrants that are not indexed to the Company's stock, the Company records the fair value of the issued warrants as a liability at each balance sheet date and records changes in the estimated fair value as a non-cash gain or loss in the consolidated statement of operations and comprehensive income. The fair values of these warrants have been determined using the Black-Scholes pricing model. The Black-Scholes pricing model provides for assumptions regarding volatility, call and put features and risk-free interest rates within the total period to maturity. These values are subject to a significant degree of judgment on the part of the Company. | |||||
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”) are 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. Potential dilutive securities are excluded from the calculation of diluted EPS in loss periods as their effect would be anti-dilutive. | |||||
Recently issued accounting pronouncements | |||||
As of March 30, 2015, the Financial Accounting Standards Board (“FASB”) has issued ASU No. 2014-01 through ASU No. 2015-02, 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, 2014 | |||||||||
Restricted cash [Abstract] | |||||||||
Restricted cash | 3 | Restricted cash | |||||||
As of December 31, 2014 and December 31, 2013, restricted cash consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Securities for bank acceptance bill | 10,689,297 | 14,132,921 | |||||||
Time deposits | 4,707,530 | 14,453,200 | |||||||
15,396,827 | 28,586,121 | ||||||||
During the year ended December 31, 2014, the Company repaid a series of short-term borrowings which resulted in a decrease in time deposits as of December 31, 2014. | |||||||||
Accounts_receivable_net
Accounts receivable, net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts receivable, net [Abstract] | |||||||||
Accounts receivable, net | 4 | Accounts receivable, net | |||||||
As of December 31, 2014 and December 31, 2013, accounts receivable consisted of the following: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Accounts receivable | 34,816,914 | 36,467,233 | |||||||
Less: allowance for doubtful debts | 2,500,307 | 2,506,219 | |||||||
32,316,607 | 33,961,014 | ||||||||
The Company recorded bad debt expense of $768 and $483,586, respectively, during the years ended December 31, 2014 and 2013. The Company wrote off accounts receivable of $2,950 and $19,384, respectively, in the years ended December 31, 2014 and 2013. |
Prepayments
Prepayments | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Prepayments [Abstract] | |||||||||
Prepayments | 5 | Prepayments | |||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Purchase deposits paid | 1,793,599 | 2,876,267 | |||||||
Value-added tax prepayment | 384,008 | 1,032,619 | |||||||
Deferred share-based compensation | - | 131,812 | |||||||
Rental deposit | 266,556 | 209,095 | |||||||
Deferred insurance fee | 97,005 | 53,297 | |||||||
Advances to staff for operations | 122,452 | 48,499 | |||||||
Other deposits and prepayments | 619,900 | 618,154 | |||||||
3,283,520 | 4,969,743 | ||||||||
Other deposits and prepayments represent deferred expenses and prepayments to services providers. |
Other_receivables
Other receivables | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other receivables [Abstract] | |||||||||
Other receivables | 6 | Other receivables | |||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Deposit for land use right | 516,418 | 518,603 | |||||||
Others | 149,410 | 545,053 | |||||||
665,828 | 1,063,656 |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | 7 | Inventories | |||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Raw materials | 4,341,675 | 4,281,232 | |||||||
Work in progress | 3,949,778 | 2,047,627 | |||||||
Finished goods | 13,685,166 | 13,087,995 | |||||||
Packing materials | 20,137 | 20,591 | |||||||
Consumables | 271,313 | 301,915 | |||||||
22,268,069 | 19,739,360 | ||||||||
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 fair value. $777,638 and $418,612 was written down for inventories in the years ended December 31, 2014 and 2013, respectively. |
Property_plant_and_equipment
Property, plant and equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, plant and equipment [Abstract] | |||||||||
Property, plant and equipment | 8 | Property, plant and equipment | |||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Cost | |||||||||
Construction in progress | 715,821 | 6,681,652 | |||||||
Furniture, fixtures and office equipment | 3,754,990 | 3,282,818 | |||||||
Leasehold improvement | 3,763,290 | 940,089 | |||||||
Machinery and equipment | 28,180,306 | 24,600,773 | |||||||
Motor vehicles | 1,479,921 | 1,430,611 | |||||||
Building | 25,414,914 | 21,521,416 | |||||||
63,309,242 | 58,457,359 | ||||||||
Less: accumulated depreciation | 12,871,524 | 9,909,156 | |||||||
50,437,718 | 48,548,203 | ||||||||
The Company recorded depreciation expenses of $4,054,403 and $2,377,118 for the years ended December 31, 2014 and 2013, respectively. | |||||||||
During the years ended December 31, 2014 and 2013, the Company deducted deferred income related to government grants of $672,675 and $nil, respectively, in calculating the carrying amount of property, plant and equipment. | |||||||||
The buildings comprising the Huizhou facilities were pledged as collateral for bank loans as of December 31, 2014. The carrying amount of the building was $10,573,369 and $10,867,411 as of December 31, 2014 and December 31, 2013, respectively. |
Land_use_rights
Land use rights | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Land use rights [Abstract] | |||||||||||
Land use rights | 9 | Land use rights | |||||||||
December 31, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Cost | |||||||||||
Land located in Huizhou | 3,505,921 | 3,520,752 | |||||||||
Land located in Ganzhou | 1,367,729 | 1,373,515 | |||||||||
4,873,650 | 4,894,267 | ||||||||||
Accumulated amortization | (568,333 | ) | (472,852 | ) | |||||||
Net | 4,305,317 | 4,421,415 | |||||||||
As of December 31, 2014, land use rights of the Company included certain parcels of land located in Huizhou City, Guangdong Province, PRC and Ganzhou City, Jiangxi Province, PRC. Land use rights for land in Huizhou City with an area of approximately 126,605 square meters and in Ganzhou City with an area of approximately 58,669 square meters 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: | |||||||||||
2015 | 97,130 | ||||||||||
2016 | 97,130 | ||||||||||
2017 | 97,130 | ||||||||||
2018 | 97,130 | ||||||||||
2019 and thereafter | 3,916,797 | ||||||||||
4,305,317 | |||||||||||
The Company recorded amortization expenses of $97,130 and $96,465 for the years ended December 31, 2014 and 2013, respectively. | |||||||||||
The land use right for land located in Huizhou City was pledged as collateral for bank loans as of December 31, 2014 and December 31, 2013. |
Intangible_asset
Intangible asset | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Intangible asset [Abstract] | |||||||||||
Intangible asset | 10 | Intangible asset | |||||||||
December 31, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Cost | |||||||||||
Consumer battery license fee | 1,000,000 | 1,000,000 | |||||||||
Accumulated amortization | (400,000 | ) | (350,000 | ) | |||||||
Net | 600,000 | 650,000 | |||||||||
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, 2014, 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, 2014 and 2013 were $50,000, and $50,000, respectively. |
Other_payables_and_accrued_lia
Other payables and accrued liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other payables and accrued liabilities [Abstract] | |||||||||
Other payables and accrued liabilities | 11 | Other payables and accrued liabilities | |||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Accrued expenses | 3,649,806 | 3,877,095 | |||||||
Royalty payable | 580,032 | 582,486 | |||||||
VAT payable | 405,859 | 1,406,086 | |||||||
Sales deposits received | 911,947 | 1,574,258 | |||||||
Other payables | 348,903 | 361,506 | |||||||
5,896,547 | 7,801,431 |
Taxation
Taxation | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
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. | |||||||||||
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 taxable income. | |||||||||||
In China, the companies granted with National High-tech Enterprise (“NHTE”) status enjoy 15% income tax rate. This status needs to be renewed every three years. In 2008, SZ Highpower received NHTE status, which was renewed in 2011 and recently renewed in 2014. In 2013, SZ Springpower received NHTE status. In 2014, both GZ Highpower and ICON received NHTE status. If these subsidiaries fail to renew NHTE status, they will be subject to income tax at a rate of 25% after the expiration of NHTE status. | |||||||||||
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 2014 and 2013. | |||||||||||
The components of the provision for income taxes expenses are: | |||||||||||
For the year ended | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Current | 1,435,386 | 741,426 | |||||||||
Deferred | (845,068 | ) | (23,410 | ) | |||||||
Total | 590,318 | 718,016 | |||||||||
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, | |||||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Income before tax | 3,191,185 | 2,056,805 | |||||||||
Provision for income taxes at applicable income tax rate | 587,347 | 484,314 | |||||||||
Effect of preferential tax rate | (607,461 | ) | (369,502 | ) | |||||||
R&D expenses eligible for super deduction | (98,605 | ) | - | ||||||||
Non-deductible expenses | 58,643 | 87,945 | |||||||||
Change in valuation allowance | 650,394 | 515,259 | |||||||||
Effective enterprise income tax | 590,318 | 718,016 | |||||||||
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. | |||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
$ | $ | ||||||||||
Tax loss carry-forward | 3,798,290 | 2,601,823 | |||||||||
Allowance for doubtful receivables | 111,637 | 112,446 | |||||||||
Allowance for inventory obsolescence | 138,458 | 46,441 | |||||||||
Fair value change of currency forwards | - | (9,493 | ) | ||||||||
Difference for sales cut-off | 20,572 | 46,824 | |||||||||
Deferred income | 283,111 | 168,880 | |||||||||
Property, plant and equipment subsidized by government grant | 100,901 | - | |||||||||
Total gross deferred tax assets | 4,452,969 | 2,966,921 | |||||||||
Valuation allowance | (2,805,785 | ) | (2,164,696 | ) | |||||||
Total net deferred tax assets | 1,647,184 | 802,225 |
Notes_payable
Notes payable | 12 Months Ended | |
Dec. 31, 2014 | ||
Notes payable [Abstract] | ||
Notes payable | 13 | Notes payable |
Notes payable are presented to certain suppliers as a payment against the outstanding trade payables. | ||
Notes payable are mainly 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 bank guarantee promissory notes payable were $29,380,782 and $25,271,256 as of December 31, 2014 and 2013, respectively. | ||
As of December 31, 2014, the Company issued $522,466 trade acceptances to suppliers. These trade acceptance are non-interest bearing and mature within six months. No security deposit is needed. The trade acceptance as of December 31, 2013 was nil. |
Shortterm_loans
Short-term loans | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Short-term loans [Abstract] | |||||||||
Short-term loans | 14 | Short-term loans | |||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Short- term bank loans guaranteed and repayable | 15,195,040 | 36,142,105 | |||||||
within one year | |||||||||
As of December 31, 2014, the above bank borrowings were for working capital and capital expenditure purposes and were secured by personal guarantees executed by certain directors of the Company, a land use right with a carrying amount of $3,015,092, the building with a carrying amount of $10,573,369. | |||||||||
The loans as of December 31, 2014 were primarily obtained from four banks with interest rates ranging from 2.9% to 7.5% per annum. The interest expenses were $1,472,013 and $1,128,578 for the years ended December 31, 2014 and 2013, respectively. |
Lines_of_credit
Lines of credit | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Lines 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, 2014 and December 31, 2013: | |||||||||||||||
31-Dec-14 | |||||||||||||||
Lender | Starting date | Maturity date | Line of credit | Unused line of credit | |||||||||||
$ | $ | ||||||||||||||
Bank of China | 3/10/14 | 3/10/15 | 12,653,474 | 424,823 | |||||||||||
Bank of China | 7/23/14 | 7/23/15 | 3,965,144 | 67,516 | |||||||||||
Ping An Bank Co., Ltd | 10/20/14 | 10/19/15 | 11,428,945 | 295,818 | |||||||||||
China Minsheng Banking Corp., LTD | 5/22/14 | 5/22/15 | 3,265,413 | - | |||||||||||
Shenzhen Baoan Guiyin County Bank | 11/19/14 | 11/18/15 | 4,734,848 | 1,750,151 | |||||||||||
Industrial and Commercial Bank of China | 7/26/12 | 7/25/15 | 6,530,826 | 3,918,496 | |||||||||||
China Citic Bank | 6/25/14 | 6/25/15 | 8,046,910 | 6,788,093 | |||||||||||
Industrial Bank Co., Ltd | 10/23/14 | 10/23/15 | 6,530,825 | 4,430,636 | |||||||||||
Jiang Su Bank Co., Ltd | 10/28/14 | 9/11/15 | 4,898,119 | 4,898,119 | |||||||||||
Total | 62,054,504 | 22,573,652 | |||||||||||||
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 | (ii) | 6,558,452 | 1,803,574 | ||||||||||
China Citic Bank | 3/29/13 | 3/29/14 | (ii) | 7,378,259 | 5,738,646 | ||||||||||
Bank of China | 1/25/13 | 1/25/14 | (i) | 3,689,129 | 247,582 | ||||||||||
Bank of China | 1/10/13 | 1/10/14 | (ii) | 12,707,001 | 1,674,876 | ||||||||||
China Everbright Bank | 5/30/13 | 5/29/14 | (i) | 8,438,433 | 1,382,194 | ||||||||||
China Everbright Bank | 9/4/13 | 9/3/14 | (i) | 1,147,729 | - | ||||||||||
Industrial Bank Co., Ltd | 7/24/13 | 7/24/14 | (i) | 8,198,065 | 6,558,452 | ||||||||||
Jiang Su Bank Co., Ltd | 6/21/13 | 6/20/14 | (i) | 4,918,839 | - | ||||||||||
Ping An Bank | 11/12/13 | 9/17/14 | (ii) | 11,477,291 | 7,564,027 | ||||||||||
Shanghai Commercial & Saving Bank | 8/29/13 | 8/29/14 | (i) | 3,000,000 | 1,250,000 | ||||||||||
Industrial and Commercial Bank of China(MACAU) LIMITED | 7/29/13 | 1/29/14 | (i) | 7,093,296 | 3,084,294 | ||||||||||
Total | 74,606,494 | 29,303,645 | |||||||||||||
(i) | The lines of credit from these banks are terminated at maturity dates. | ||||||||||||||
(ii) | The lines of credit from these banks are rolled over after maturity dates. | ||||||||||||||
The lines of credits from Industrial and Commercial Bank of China, China Citic Bank, Ping An Bank, Industrial Bank Co. Ltd, China Minsheng Banking Corp., LTD and Shenzhen Baoan Guiyin County Bank are guaranteed by the Company's Chief Executive Officer, Mr. Dang Yu Pan. The lines of credits from Jiang Su Bank are guaranteed by the Company's Chief Executive Officer, Mr. Dang Yu Pan, and his wife. The lines of credits from Bank of China are guaranteed by the Company's Chief Executive Officer, Mr. Dang Yu Pan and Vice President, Wen Liang Li. | |||||||||||||||
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: that the borrower may not serve as a guarantor for more than double its net assets; that the borrower is restricted in certain circumstances from using the loans in connection with related party transactions or other transactions with affiliates; that the borrower must provide monthly reports to certain lenders describing the actual use of loans; that the borrower may need to obtain approval to engage in major corporate transactions; and that 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, 2014 and December 31, 2013, the Company was in compliance with all material covenants in its loan agreements. |
Longterm_loans
Long-term loans | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Long-term loans [Abstract] | |||||||||
Long-term loans | 16 | Long-term loans | |||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Long term loans from Bank of China | 3,918,495 | 5,902,607 | |||||||
Less: current portion of long-term borrowings | 1,959,248 | 1,967,536 | |||||||
Long-term borrowings, net of current portion | 1,959,247 | 3,935,071 | |||||||
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, 2014. Interest expenses are to be paid quarterly. | |||||||||
The interest expenses were $366,142 and $518,577 for the years ended December 31, 2014 and 2013, 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: | |||||||||
$ | |||||||||
2015 | 1,959,248 | ||||||||
2016 | 1,959,247 | ||||||||
3,918,495 |
Sharebased_compensation
Share-based compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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, 2014, approximately 626,714 shares of common stock remained available for issuance pursuant to awards granted under the 2008 Plan. | |||||||||||||
Options Granted to Employees | |||||||||||||
Number of Shares | Weighted Average | Remaining | |||||||||||
Exercise Price | 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 | ||||||||||
Number of Shares | Weighted Average | Remaining | |||||||||||
Exercise Price | Contractual Term in Years | ||||||||||||
Outstanding, January 1, 2014 | 1,105,000 | 2.87 | 8.51 | ||||||||||
Granted | - | - | - | ||||||||||
Exercised | (200,000 | ) | 2.41 | - | |||||||||
Forfeited | (44,714 | ) | 2.63 | - | |||||||||
Canceled | (100,000 | ) | 3.55 | - | |||||||||
Outstanding, December 31, 2014 | 760,286 | 2.92 | 7.78 | ||||||||||
Exercisable, December 31, 2014 | 413,620 | 3.16 | 6.98 | ||||||||||
Vested and expected to vest, December 31, 2014 | 702,788 | 2.94 | 7.71 | ||||||||||
The aggregate intrinsic value of options vested and expected to vest as of December 31, 2014 and December 31, 2013 was approximately $1.43 million and $nil, respectively. 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, 2014, the Company did not grant any new options to employees. One employee exercised his options to purchase 200,000 shares of the Company's common stock. As a result, the Company issued 106,640 shares of common stock to this employee by net share settlement. Two employees had resigned and their options to purchase a total of 44,714 shares of the Company's common stock were forfeited. One employee had resigned with 100,000 vested shares outstanding, which were cancelled 90 days after termination. | |||||||||||||
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. One employee had resigned and options to purchase a total of 100,000 shares had been forfeited in accordance with the terms and conditions of the 2008 Plan. | |||||||||||||
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. | |||||||||||||
Restricted Stock Awards Granted to Employees | |||||||||||||
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 RSAs granted in 2013 had the following vesting periods; 30% immediately upon grant, 30% vest on first anniversary of the grant date, and 40% vest on the second anniversary of grant date. The RSAs 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 RSAs granted to employees during the year ended December 31, 2014. | |||||||||||||
The following table summarizes the restricted stock awards activities for the year ended December 31, 2014: | |||||||||||||
Number | Weighted Average | Remaining | |||||||||||
of Shares | Grant Date | Contractual Term | |||||||||||
Fair Value | in Years | ||||||||||||
Outstanding, January 1, 2014 | 172,200 | 2.81 | 1.77 | ||||||||||
Granted | - | - | - | ||||||||||
Released | 73,800 | 2.81 | - | ||||||||||
Forfeited | - | - | - | ||||||||||
Outstanding, December 31, 2014 | 98,400 | 2.81 | 0.77 | ||||||||||
Expected to vest, December 31, 2014 | 87,576 | 2.81 | 0.77 | ||||||||||
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 common stock to the consulting firm on August 15, 2013. The shares were fully vested upon issuance and the fair value of the shares 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 was being amortized over the consulting service period. In the second quarter of 2014, the service agreement was terminated. Therefore, the remaining unamortized balance, approximately $131,812, was recognized as share-based compensation expense during the year ended December 31, 2014. | |||||||||||||
The Company also agreed to issue another 150,000 shares of the Company's common stock to the consulting firm after a specific financing target is completed. As the financing target was not achieved before the termination of the service agreement in the second quarter of 2014, such 150,000 shares of common stock was not issued to the consulting firm. | |||||||||||||
Also, in connection with this consulting agreement, on January 17, 2014 the Company issued five year warrants to purchase 200,000 shares of the Company's common stock. The shares were fully vested upon issuance and the aggregate fair value of the warrants was approximately $390,000, which was calculated using the Black-Scholes pricing model, with the following weighted-average assumptions: | |||||||||||||
For the years ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Expected volatility | 83.6 | % | NA | ||||||||||
Risk-free interest rate | 1.64 | % | NA | ||||||||||
Expected term from grant date (in years) | 5 | NA | |||||||||||
Dividend rate | - | NA | |||||||||||
Fair value | $ | 1.95 | NA | ||||||||||
Expected Term | |||||||||||||
The expected term of the warrants issued during the year ended December 31, 2014, represents the remaining contractual term of the warrants. | |||||||||||||
Expected Volatility | |||||||||||||
The expected volatility used for the year ended December 31, 2014 is based upon the Company's own trading history. | |||||||||||||
Risk-Free Interest Rate | |||||||||||||
The risk-free interest rate assumption is based on U.S. Treasury instruments with a term consistent with the contractual term of the warrants issued during the first quarter of 2014. | |||||||||||||
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 forfeiture rate is applied to stock options and restricted stock awards. The Company uses historical data to estimate pre-vesting forfeitures and records stock-based compensation expense only for those awards that are expected to vest. All stock-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 stock-based compensation expense only for those awards that are expected to vest. | |||||||||||||
The fair value of the consulting agreement warrants was being amortized over the consulting service period. In the second quarter of 2014, the service agreement was terminated. Therefore, the entire share-based compensation expense of approximately $390,000 was recognized during the twelve months ended December 31, 2014. | |||||||||||||
Total Share-based Compensation Expenses | |||||||||||||
As of December 31, 2014 the gross amount of unrecognized share-based compensation expense relating to unvested share-based awards held by employees was approximately $813,000, which the Company anticipates recognizing as a charge against income over a weighted average period of 1.47 years. | |||||||||||||
In connection with the grant of stock options, restricted stock awards and warrants to employees and nonemployees, the Company recorded stock-based compensation charges of $767,317 and $521,599 , respectively, for the year ended December 31, 2014 and stock-based compensation charges of $387,089 and $39,690, respectively, for the year ended December 31, 2013. |
Earnings_per_share
Earnings per share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings per share [Abstract] | |||||||||
Earnings per share | 18 | Earnings per share | |||||||
Basic earnings per common share are 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 table sets forth the computation of basic and diluted earnings per common share for the years ended December 31, 2014 and 2013. | |||||||||
Year ended December 31, | |||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Numerator: | |||||||||
Net income attributable to the Company | 2,753,236 | 1,451,218 | |||||||
Denominator: | |||||||||
Weighted-average shares outstanding | |||||||||
- Basic | 14,739,073 | 13,671,169 | |||||||
-diluted | 15,154,239 | 13,687,698 | |||||||
Earnings per common share | |||||||||
- Basic | 0.19 | 0.11 | |||||||
- diluted | 0.18 | 0.11 | |||||||
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. | |||||||||
760,286 shares of outstanding stock options, 144,714 shares of forefeited or expired stock options and 200,000 shares of warrants with a total dilutive effect of 415,166 shares were included in the computation of diluted EPS for the year ended December 31, 2014. | |||||||||
There were 540,001 options and warrants outstanding as of December 31, 2014, which were not included in the computation of diluted EPS for the year ended December 31, 2014 because of their excise price would be above average market value. | |||||||||
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 | |||||||||
Securities_Offering_Transactio
Securities Offering Transaction | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Securities Offering Transaction [Abstract] | |||||||||
Securities Offering Transaction | 19 | Securities Offering Transaction | |||||||
In April 2014, the Company and certain institutional investors entered into a securities purchase agreement, pursuant to which the Company sold 1,000,000 shares of common stock and warrants exercisable for 500,000 shares of common stock in a registered direct offering at a price of $5.05 per fixed combination for aggregate proceeds of $5.05 million. The shares and warrants were sold in multiples of a fixed combination consisting of (i) one share of common stock and (ii) one immediately exercisable warrant to purchase 0.50 shares of common stock. The net proceeds from the offering was $4,633,164, after deducting fees due the placement agent and offering expenses. | |||||||||
The warrants have an initial exercise price of $6.33 per share and are exercisable until April 17, 2017. The exercise price of the warrants, and in some cases the number of shares issuable upon exercise of the warrants, will be subject to appropriate adjustment in relation to certain events. In addition, if the Company issues shares in the future at a price below $6.33 per share, the exercise price of the warrants will be reduced to such lower price. No adjustment will be made to the number of shares purchasable in such event. | |||||||||
The warrants were classified as a liability. The aggregate fair value of the warrant liability at issuance dates was $1,173,952. The residual balance of $3,459,212 was allocated to common shares issued. | |||||||||
The fair values of the warrants as of April 17, 2014 were calculated using the Black-Scholes pricing model with the following assumptions: | |||||||||
17-Apr-14 | |||||||||
2014 | 2013 | ||||||||
Expected volatility | 85.76 | % | NA | ||||||
Risk-free interest rate | 0.9 | % | NA | ||||||
Expected term (in years) | 3 | NA | |||||||
Dividend rate | - | NA | |||||||
Fair value | $ | 2.3 | NA | ||||||
The fair value of the investor warrant liability will be re-measured at each period and recorded as a gain or loss on fair value of warrant liability. As of December 31, 2014, the fair value of warrant liability was $1,067,674 and the Company recognized a gain of $106,278 on the change of fair value of warrant liability. | |||||||||
The fair values of the warrants as of December 31, 2014 were calculated using the Black-Scholes pricing model with the following assumptions: | |||||||||
Year ended December 31, | |||||||||
2014 | 2013 | ||||||||
Expected volatility | 86.4 | % | NA | ||||||
Risk-free interest rate | 0.79 | % | NA | ||||||
Expected term (in years) | 2.29 | NA | |||||||
Dividend rate | - | NA | |||||||
Fair value | $ | 2.14 | NA | ||||||
In conjunction with the securities offering transaction, the Company issued three year warrants to investment bankers to purchase 40,000 shares of the Company's common stock at $6.33 per share. The aggregate fair value of the warrants was $94,982, which was recognized as a share-based compensation and resulted in an increase of additional paid-in capital. As such compensation was offering cost, it resulted in a reduction in additional paid-in capital. Hence, such transaction has no net impact on the Company's financial position as of December 31, 2014. | |||||||||
Defined_contribution_plan
Defined contribution plan | 12 Months Ended | |
Dec. 31, 2014 | ||
Defined contribution plan [Abstract] | ||
Defined contribution plan | 20 | 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 $1,489,130 and $1,613,765 for the years ended December 31, 2014 and 2013, respectively. |
Noncontrolling_interest
Non-controlling interest | 12 Months Ended | |
Dec. 31, 2014 | ||
Non-controlling interest [Abstract] | ||
Non-controlling interest | 21 | Non-controlling interest |
GZ Highpower is the Company's majority-owned subsidiary which is consolidated in the Company's financial statements with a non-controlling interest recognized. GZ Highpower is engaged in processing, marketing and research of battery materials. | ||
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%. On November 13, 2014, GZ Highpower increased its paid-in capital from RMB30,000,000 ($4,898,119) to RMB40,000,000 ($6,530,825) and the additional capital of RMB10,000,000 was contributed by SZ Highpower. As of December 31, 2014, SZ Highpower holds 70% of the equity interest of GZ Highpower, and four founding management members of GZ Highpower hold the remaining 30%. | ||
As of December 31, 2014 and 2013, non-controlling interest related to GZ Highpower in the consolidated balance sheet was $1,307,239 and $1,299,252, respectively. | ||
For the years ended December 31, 2014 and 2013, non-controlling interest related to GZ Highpower in the consolidated statements of operations was loss of $152,369 and $112,429, respectively. |
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and contingencies [Abstract] | |||||
Commitments and contingencies | 22 | 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 2015 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, 2014 are as follows: | |||||
$ | |||||
2015 | 1,486,667 | ||||
2016 | 1,344,136 | ||||
2017 | 335,325 | ||||
3,166,128 | |||||
Rent expenses for the years ended December 31, 2014 and 2013 were$1,589,757 and $1,343,045, respectively. | |||||
Capital commitments | |||||
The Company had contracted capital commitments of $nil for the construction of the Ganzhou plant as of December 31, 2014 and $990,031 for the construction of the Huizhou plant as of December 31, 2013. |
Segment_information
Segment information | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Segment information [Abstract] | |||||||||||
Segment information | 23 | Segment information | |||||||||
The reportable segments are components of the Company that 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”), the Chief Executive Officer, 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, | |||||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Net sales | |||||||||||
Ni-MH Batteries | 74,971,144 | 72,886,102 | |||||||||
Lithium Batteries | 68,434,832 | 57,935,104 | |||||||||
New Materials | 3,682,190 | 2,028,616 | |||||||||
Total | 147,088,166 | 132,849,822 | |||||||||
Cost of Sales | |||||||||||
Ni-MH Batteries | 59,546,738 | 59,131,594 | |||||||||
Lithium Batteries | 54,072,611 | 45,515,519 | |||||||||
New Materials | 3,318,014 | 1,818,667 | |||||||||
Total | 116,937,363 | 106,465,780 | |||||||||
Gross Profit | |||||||||||
Ni-MH Batteries | 15,424,406 | 13,754,508 | |||||||||
Lithium Batteries | 14,362,221 | 12,419,585 | |||||||||
New Materials | 364,176 | 209,949 | |||||||||
Total | 30,150,803 | 26,384,042 | |||||||||
December 31,2014 | December 31,2013 | ||||||||||
$ | $ | ||||||||||
Total Assets | |||||||||||
Ni-MH Batteries | 50,275,286 | 66,960,366 | |||||||||
Lithium Batteries | 86,339,973 | 76,357,912 | |||||||||
New Materials | 9,538,813 | 8,475,098 | |||||||||
Total | 146,154,072 | 151,793,376 | |||||||||
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 years ended December 31, | |||||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Net sales | |||||||||||
China mainland | 69,271,339 | 64,941,519 | |||||||||
Asia, others | 37,699,071 | 28,684,864 | |||||||||
Europe | 29,853,397 | 28,606,470 | |||||||||
North America | 9,335,245 | 9,572,209 | |||||||||
South America | 426,664 | 490,728 | |||||||||
Africa | 289,104 | 362,449 | |||||||||
Others | 213,346 | 191,583 | |||||||||
147,088,166 | 132,849,822 | ||||||||||
December 31, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Accounts receivable | |||||||||||
China mainland | 17,282,481 | 20,355,864 | |||||||||
Asia, others | 8,662,503 | 7,476,754 | |||||||||
Europe | 5,747,058 | 5,191,444 | |||||||||
North America | 296,572 | 863,156 | |||||||||
South America | 211,391 | 50,691 | |||||||||
Africa | 81,962 | 25 | |||||||||
Others | 34,640 | 23,080 | |||||||||
32,316,607 | 33,961,014 |
Summary_of_significant_account1
Summary of significant accounting policies (Policy) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
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 year ended December 31, 2014, no customer accounted for 10% or more of total net sales. One customer accounted for 10.8% in the year ended December 31, 2013. | |||||
During the year ended December 31, 2014, no supplier accounted for 10% or more of total purchase amount. One supplier accounted for 12.8% in the year ended December 31, 2013. | |||||
None of the Company's customers accounted for 10% or more of the accounts receivable as of December 31, 2014 and December 31, 2013. | |||||
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 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, consumables, 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% - 5 | % | |||
Furniture, fixtures and office equipment | 20 | % | |||
Leasehold improvement | 20% - 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 founding management 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. | |||||
Government grants | Government grants | ||||
Government grants are recognized when received and all the conditions for their receipt have been met. | |||||
Specifically, government grants whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets is recognized on the consolidated balance sheet as deferred income and deducted in calculating the carrying amount of the related asset. The revenue from such grants is recognized in profit or loss over the life of the related depreciable asset as a reduction of depreciation expense. As of December 31, 2014 and 2013, the Company recorded deferred income of $1,887,409 and $657,521, respectively, for the government grants to purchase non-current assets. | |||||
Government grants as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related benefit are recognized as other income in the period in which they become receivable. Approximately $330,302 and $523,243 government grant were recognized as other income in 2014 and 2013, respectively. | |||||
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 sales 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 $971,240 and $843,146 respectively for the years ended December 31, 2014 and 2013. | |||||
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, and 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, 2014 and 2013. | |||||
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, 2014 and 2013. | |||||
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) New Material. | |||||
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. | |||||
Warrant Liabilities | Warrant Liabilities | ||||
For warrants that are not indexed to the Company's stock, the Company records the fair value of the issued warrants as a liability at each balance sheet date and records changes in the estimated fair value as a non-cash gain or loss in the consolidated statement of operations and comprehensive income. The fair values of these warrants have been determined using the Black-Scholes pricing model. The Black-Scholes pricing model provides for assumptions regarding volatility, call and put features and risk-free interest rates within the total period to maturity. These values are subject to a significant degree of judgment on the part of the Company. | |||||
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”) are 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. Potential dilutive securities are excluded from the calculation of diluted EPS in loss periods as their effect would be anti-dilutive. | |||||
Recently issued accounting pronouncements | Recently issued accounting pronouncements | ||||
As of March 30, 2015, the Financial Accounting Standards Board (“FASB”) has issued ASU No. 2014-01 through ASU No. 2015-02, 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, 2014 | |||||||||
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 and marketing of batteries | |||||
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 | 70 | % | Processing, marketing and research of battery materials | |||||
21-Sep-10 | |||||||||
Co., Ltd | |||||||||
("GZ Highpower") | |||||||||
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, 2014 | |||||
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% - 5 | % | |||
Furniture, fixtures and office equipment | 20 | % | |||
Leasehold improvement | 20% - 50 | % | |||
Machinery and equipment | 10 | % | |||
Motor vehicles | 20 | % |
Restricted_cash_Tables
Restricted cash (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Restricted cash [Abstract] | |||||||||
Summary of Restricted Cash Held by Company | As of December 31, 2014 and December 31, 2013, restricted cash consisted of the following: | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Securities for bank acceptance bill | 10,689,297 | 14,132,921 | |||||||
Time deposits | 4,707,530 | 14,453,200 | |||||||
15,396,827 | 28,586,121 | ||||||||
During the year ended December 31, 2014, the Company repaid a series of short-term borrowings which resulted in a decrease in time deposits as of December 31, 2014. | |||||||||
Accounts_receivable_net_Tables
Accounts receivable, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts receivable, net [Abstract] | |||||||||
Schedule of Accounts Receivable | As of December 31, 2014 and December 31, 2013, accounts receivable consisted of the following: | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Accounts receivable | 34,816,914 | 36,467,233 | |||||||
Less: allowance for doubtful debts | 2,500,307 | 2,506,219 | |||||||
32,316,607 | 33,961,014 |
Prepayments_Tables
Prepayments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Prepayments [Abstract] | |||||||||
Schedule of Prepayments | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Purchase deposits paid | 1,793,599 | 2,876,267 | |||||||
Value-added tax prepayment | 384,008 | 1,032,619 | |||||||
Deferred share-based compensation | - | 131,812 | |||||||
Rental deposit | 266,556 | 209,095 | |||||||
Deferred insurance fee | 97,005 | 53,297 | |||||||
Advances to staff for operations | 122,452 | 48,499 | |||||||
Other deposits and prepayments | 619,900 | 618,154 | |||||||
3,283,520 | 4,969,743 |
Other_receivables_Tables
Other receivables (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other receivables [Abstract] | |||||||||
Schedule of Other Receivables | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Deposit for land use right | 516,418 | 518,603 | |||||||
Others | 149,410 | 545,053 | |||||||
665,828 | 1,063,656 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventories [Abstract] | |||||||||
Schedule of Inventories | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Raw materials | 4,341,675 | 4,281,232 | |||||||
Work in progress | 3,949,778 | 2,047,627 | |||||||
Finished goods | 13,685,166 | 13,087,995 | |||||||
Packing materials | 20,137 | 20,591 | |||||||
Consumables | 271,313 | 301,915 | |||||||
22,268,069 | 19,739,360 |
Property_plant_and_equipment_T
Property, plant and equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, plant and equipment [Abstract] | |||||||||
Schedule of Plant and Equipment, Net | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Cost | |||||||||
Construction in progress | 715,821 | 6,681,652 | |||||||
Furniture, fixtures and office equipment | 3,754,990 | 3,282,818 | |||||||
Leasehold improvement | 3,763,290 | 940,089 | |||||||
Machinery and equipment | 28,180,306 | 24,600,773 | |||||||
Motor vehicles | 1,479,921 | 1,430,611 | |||||||
Building | 25,414,914 | 21,521,416 | |||||||
63,309,242 | 58,457,359 | ||||||||
Less: accumulated depreciation | 12,871,524 | 9,909,156 | |||||||
50,437,718 | 48,548,203 |
Land_use_rights_Tables
Land use rights (Tables) (Land Use Right [Member]) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Land Use Right [Member] | |||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Schedule of Land Use Rights | December 31, | December 31, | |||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Cost | |||||||||||
Land located in Huizhou | 3,505,921 | 3,520,752 | |||||||||
Land located in Ganzhou | 1,367,729 | 1,373,515 | |||||||||
4,873,650 | 4,894,267 | ||||||||||
Accumulated amortization | (568,333 | ) | (472,852 | ) | |||||||
Net | 4,305,317 | 4,421,415 | |||||||||
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: | ||||||||||
2015 | 97,130 | ||||||||||
2016 | 97,130 | ||||||||||
2017 | 97,130 | ||||||||||
2018 | 97,130 | ||||||||||
2019 and thereafter | 3,916,797 | ||||||||||
4,305,317 |
Intangible_assets_Tables
Intangible assets (Tables) (Other Intangible Assets [Member]) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Other Intangible Assets [Member] | |||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Schedule of Intangible Assets | December 31, | December 31, | |||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Cost | |||||||||||
Consumer battery license fee | 1,000,000 | 1,000,000 | |||||||||
Accumulated amortization | (400,000 | ) | (350,000 | ) | |||||||
Net | 600,000 | 650,000 |
Other_payables_and_accrued_lia1
Other payables and accrued liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other payables and accrued liabilities [Abstract] | |||||||||
Schedule of Other Payables and Accrued Liabilities | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Accrued expenses | 3,649,806 | 3,877,095 | |||||||
Royalty payable | 580,032 | 582,486 | |||||||
VAT payable | 405,859 | 1,406,086 | |||||||
Sales deposits received | 911,947 | 1,574,258 | |||||||
Other payables | 348,903 | 361,506 | |||||||
5,896,547 | 7,801,431 |
Taxation_Tables
Taxation (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
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, | |||||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Current | 1,435,386 | 741,426 | |||||||||
Deferred | (845,068 | ) | (23,410 | ) | |||||||
Total | 590,318 | 718,016 | |||||||||
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, | |||||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Income before tax | 3,191,185 | 2,056,805 | |||||||||
Provision for income taxes at applicable income tax rate | 587,347 | 484,314 | |||||||||
Effect of preferential tax rate | (607,461 | ) | (369,502 | ) | |||||||
R&D expenses eligible for super deduction | (98,605 | ) | - | ||||||||
Non-deductible expenses | 58,643 | 87,945 | |||||||||
Change in valuation allowance | 650,394 | 515,259 | |||||||||
Effective enterprise income tax | 590,318 | 718,016 | |||||||||
Schedule of Deferred Tax Assets | |||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
$ | $ | ||||||||||
Tax loss carry-forward | 3,798,290 | 2,601,823 | |||||||||
Allowance for doubtful receivables | 111,637 | 112,446 | |||||||||
Allowance for inventory obsolescence | 138,458 | 46,441 | |||||||||
Fair value change of currency forwards | - | (9,493 | ) | ||||||||
Difference for sales cut-off | 20,572 | 46,824 | |||||||||
Deferred income | 283,111 | 168,880 | |||||||||
Property, plant and equipment subsidized by government grant | 100,901 | - | |||||||||
Total gross deferred tax assets | 4,452,969 | 2,966,921 | |||||||||
Valuation allowance | (2,805,785 | ) | (2,164,696 | ) | |||||||
Total net deferred tax assets | 1,647,184 | 802,225 |
Shortterm_loans_Tables
Short-term loans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Short-term loans [Abstract] | |||||||||
Schedule of Short-Term Loans | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Short- term bank loans guaranteed and repayable | 15,195,040 | 36,142,105 | |||||||
within one year |
Line_of_credit_Tables
Line of credit (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Lines of credit [Abstract] | |||||||||||||||
Schedule of Lines of Credit | 31-Dec-14 | ||||||||||||||
Lender | Starting date | Maturity date | Line of credit | Unused line of credit | |||||||||||
$ | $ | ||||||||||||||
Bank of China | 3/10/14 | 3/10/15 | 12,653,474 | 424,823 | |||||||||||
Bank of China | 7/23/14 | 7/23/15 | 3,965,144 | 67,516 | |||||||||||
Ping An Bank Co., Ltd | 10/20/14 | 10/19/15 | 11,428,945 | 295,818 | |||||||||||
China Minsheng Banking Corp., LTD | 5/22/14 | 5/22/15 | 3,265,413 | - | |||||||||||
Shenzhen Baoan Guiyin County Bank | 11/19/14 | 11/18/15 | 4,734,848 | 1,750,151 | |||||||||||
Industrial and Commercial Bank of China | 7/26/12 | 7/25/15 | 6,530,826 | 3,918,496 | |||||||||||
China Citic Bank | 6/25/14 | 6/25/15 | 8,046,910 | 6,788,093 | |||||||||||
Industrial Bank Co., Ltd | 10/23/14 | 10/23/15 | 6,530,825 | 4,430,636 | |||||||||||
Jiang Su Bank Co., Ltd | 10/28/14 | 9/11/15 | 4,898,119 | 4,898,119 | |||||||||||
Total | 62,054,504 | 22,573,652 | |||||||||||||
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 | (ii) | 6,558,452 | 1,803,574 | ||||||||||
China Citic Bank | 3/29/13 | 3/29/14 | (ii) | 7,378,259 | 5,738,646 | ||||||||||
Bank of China | 1/25/13 | 1/25/14 | (i) | 3,689,129 | 247,582 | ||||||||||
Bank of China | 1/10/13 | 1/10/14 | (ii) | 12,707,001 | 1,674,876 | ||||||||||
China Everbright Bank | 5/30/13 | 5/29/14 | (i) | 8,438,433 | 1,382,194 | ||||||||||
China Everbright Bank | 9/4/13 | 9/3/14 | (i) | 1,147,729 | - | ||||||||||
Industrial Bank Co., Ltd | 7/24/13 | 7/24/14 | (i) | 8,198,065 | 6,558,452 | ||||||||||
Jiang Su Bank Co., Ltd | 6/21/13 | 6/20/14 | (i) | 4,918,839 | - | ||||||||||
Ping An Bank | 11/12/13 | 9/17/14 | (ii) | 11,477,291 | 7,564,027 | ||||||||||
Shanghai Commercial & Saving Bank | 8/29/13 | 8/29/14 | (i) | 3,000,000 | 1,250,000 | ||||||||||
Industrial and Commercial Bank of China(MACAU) LIMITED | 7/29/13 | 1/29/14 | (i) | 7,093,296 | 3,084,294 | ||||||||||
Total | 74,606,494 | 29,303,645 | |||||||||||||
(i) | The lines of credit from these banks are terminated at maturity dates. | ||||||||||||||
(ii) | The lines of credit from these banks are rolled over after maturity dates. |
Longterm_loans_Tables
Long-term loans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Long-term loans [Abstract] | |||||||||
Schedule of Long-Term Debt | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Long term loans from Bank of China | 3,918,495 | 5,902,607 | |||||||
Less: current portion of long-term borrowings | 1,959,248 | 1,967,536 | |||||||
Long-term borrowings, net of current portion | 1,959,247 | 3,935,071 | |||||||
Schedule of Maturities of Long-Term Loans | $ | ||||||||
2015 | 1,959,248 | ||||||||
2016 | 1,959,247 | ||||||||
3,918,495 |
Sharebased_compensation_Tables
Share-based compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Schedule of Share-Based Compensation | Options Granted to Employees | ||||||||||||
Number of Shares | Weighted Average | Remaining | |||||||||||
Exercise Price | 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 | ||||||||||
Number of Shares | Weighted Average | Remaining | |||||||||||
Exercise Price | Contractual Term in Years | ||||||||||||
Outstanding, January 1, 2014 | 1,105,000 | 2.87 | 8.51 | ||||||||||
Granted | - | - | - | ||||||||||
Exercised | (200,000 | ) | 2.41 | - | |||||||||
Forfeited | (44,714 | ) | 2.63 | - | |||||||||
Canceled | (100,000 | ) | 3.55 | - | |||||||||
Outstanding, December 31, 2014 | 760,286 | 2.92 | 7.78 | ||||||||||
Exercisable, December 31, 2014 | 413,620 | 3.16 | 6.98 | ||||||||||
Vested and expected to vest, December 31, 2014 | 702,788 | 2.94 | 7.71 | ||||||||||
Schedule of Restricted Stock and RSA Award Activities | Number | Weighted Average | Remaining | ||||||||||
of Shares | Grant Date | Contractual Term | |||||||||||
Fair Value | in Years | ||||||||||||
Outstanding, January 1, 2014 | 172,200 | 2.81 | 1.77 | ||||||||||
Granted | - | - | - | ||||||||||
Released | 73,800 | 2.81 | - | ||||||||||
Forfeited | - | - | - | ||||||||||
Outstanding, December 31, 2014 | 98,400 | 2.81 | 0.77 | ||||||||||
Expected to vest, December 31, 2014 | 87,576 | 2.81 | 0.77 | ||||||||||
Schedule of Fair Value of Options Granted, Weighted-Average Assumptions | For the years ended | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Expected volatility | 83.6 | % | NA | ||||||||||
Risk-free interest rate | 1.64 | % | NA | ||||||||||
Expected term from grant date (in years) | 5 | NA | |||||||||||
Dividend rate | - | NA | |||||||||||
Fair value | $ | 1.95 | NA |
Earnings_per_share_Tables
Earnings per share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings per share [Abstract] | |||||||||
Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share for the years ended December 31, 2014 and 2013. | ||||||||
Year ended December 31, | |||||||||
2014 | 2013 | ||||||||
$ | $ | ||||||||
Numerator: | |||||||||
Net income attributable to the Company | 2,753,236 | 1,451,218 | |||||||
Denominator: | |||||||||
Weighted-average shares outstanding | |||||||||
- Basic | 14,739,073 | 13,671,169 | |||||||
-diluted | 15,154,239 | 13,687,698 | |||||||
Earnings per common share | |||||||||
- Basic | 0.19 | 0.11 | |||||||
- diluted | 0.18 | 0.11 | |||||||
Securities_Offering_Transactio1
Securities Offering Transaction (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Securities Offering Transaction [Abstract] | |||||||||
Schedule of Fair Values of Warrants | 17-Apr-14 | ||||||||
2014 | 2013 | ||||||||
Expected volatility | 85.76 | % | NA | ||||||
Risk-free interest rate | 0.9 | % | NA | ||||||
Expected term (in years) | 3 | NA | |||||||
Dividend rate | - | NA | |||||||
Fair value | $ | 2.3 | NA | ||||||
Year ended December 31, | |||||||||
2014 | 2013 | ||||||||
Expected volatility | 86.4 | % | NA | ||||||
Risk-free interest rate | 0.79 | % | NA | ||||||
Expected term (in years) | 2.29 | NA | |||||||
Dividend rate | - | NA | |||||||
Fair value | $ | 2.14 | NA |
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and contingencies [Abstract] | |||||
Schedule of Minimum Future Commitments for Operating Leases | $ | ||||
2015 | 1,486,667 | ||||
2016 | 1,344,136 | ||||
2017 | 335,325 | ||||
3,166,128 |
Segment_information_Tables
Segment information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
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, | |||||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Net sales | |||||||||||
Ni-MH Batteries | 74,971,144 | 72,886,102 | |||||||||
Lithium Batteries | 68,434,832 | 57,935,104 | |||||||||
New Materials | 3,682,190 | 2,028,616 | |||||||||
Total | 147,088,166 | 132,849,822 | |||||||||
Cost of Sales | |||||||||||
Ni-MH Batteries | 59,546,738 | 59,131,594 | |||||||||
Lithium Batteries | 54,072,611 | 45,515,519 | |||||||||
New Materials | 3,318,014 | 1,818,667 | |||||||||
Total | 116,937,363 | 106,465,780 | |||||||||
Gross Profit | |||||||||||
Ni-MH Batteries | 15,424,406 | 13,754,508 | |||||||||
Lithium Batteries | 14,362,221 | 12,419,585 | |||||||||
New Materials | 364,176 | 209,949 | |||||||||
Total | 30,150,803 | 26,384,042 | |||||||||
December 31,2014 | December 31,2013 | ||||||||||
$ | $ | ||||||||||
Total Assets | |||||||||||
Ni-MH Batteries | 50,275,286 | 66,960,366 | |||||||||
Lithium Batteries | 86,339,973 | 76,357,912 | |||||||||
New Materials | 9,538,813 | 8,475,098 | |||||||||
Total | 146,154,072 | 151,793,376 | |||||||||
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 years ended December 31, | |||||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Net sales | |||||||||||
China mainland | 69,271,339 | 64,941,519 | |||||||||
Asia, others | 37,699,071 | 28,684,864 | |||||||||
Europe | 29,853,397 | 28,606,470 | |||||||||
North America | 9,335,245 | 9,572,209 | |||||||||
South America | 426,664 | 490,728 | |||||||||
Africa | 289,104 | 362,449 | |||||||||
Others | 213,346 | 191,583 | |||||||||
147,088,166 | 132,849,822 | ||||||||||
Schedule of Geographic Information about Accounts Receivable | December 31, | December 31, | |||||||||
2014 | 2013 | ||||||||||
$ | $ | ||||||||||
Accounts receivable | |||||||||||
China mainland | 17,282,481 | 20,355,864 | |||||||||
Asia, others | 8,662,503 | 7,476,754 | |||||||||
Europe | 5,747,058 | 5,191,444 | |||||||||
North America | 296,572 | 863,156 | |||||||||
South America | 211,391 | 50,691 | |||||||||
Africa | 81,962 | 25 | |||||||||
Others | 34,640 | 23,080 | |||||||||
32,316,607 | 33,961,014 |
Principal_activities_and_organ2
Principal activities and organization (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||||||||||
Apr. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Nov. 13, 2014 | Nov. 13, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | 15-May-13 | 15-May-13 | Feb. 08, 2012 | Feb. 08, 2012 | Nov. 13, 2014 | |
USD ($) | USD ($) | USD ($) | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Shenzhen Highpower Technology Company Limited [Member] | |||||
CNY | |||||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||||
Attributable equity interest held | 70.00% | 60.00% | 60.00% | ||||||||||
Equity interest held by partner | 30.00% | 40.00% | 40.00% | 40.00% | 40.00% | ||||||||
Additional paid-in capital | $10,530,430 | $6,011,305 | $6,530,825 | 40,000,000 | $4,898,119 | 30,000,000 | $4,807,847 | 30,000,000 | $2,381,293 | 15,000,000 | 10,000,000 | ||
Class of Stock [Line Items] | |||||||||||||
Shares issued to investors | 1,000,000 | ||||||||||||
Number of shares covered by warrants | 500,000 | ||||||||||||
Shares issued, price per share | $5.05 | ||||||||||||
Aggregate proceeds | 5,050,000 | ||||||||||||
Shares covered by each warrant | 0.5 | ||||||||||||
Proceeds from issuance of capital stock and warrants, net | $4,633,164 | $4,633,164 |
Principal_activities_and_organ3
Principal activities and organization (Schedule of Subsidiaries and Principle Activities) (Details) | 12 Months Ended | |
Dec. 31, 2014 | 15-May-13 | |
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 | 70.00% | 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, 2014 | Dec. 31, 2013 | |
Deferred Revenue | ||
Deferred income | $1,887,409 | $675,521 |
Government grants recognized as other income | 330,302 | 523,243 |
Shipping and handling | ||
Shipping and handling expenses | $971,240 | $843,146 |
Sales [Member] | Customer One [Member] | ||
Concentrations of credit risk | ||
Concentration risk, percentage | 10.80% | |
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | Supplier One [Member] | ||
Concentrations of credit risk | ||
Concentration risk, percentage | 12.80% |
Summary_of_significant_account4
Summary of significant accounting policies (Schedule of Depreciation Rates of Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
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 | 5.00% |
Furniture, Fixtures and Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation rate | 20.00% |
Leasehold Improvement [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation rate | 20.00% |
Leasehold Improvement [Member] | Maximum [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, 2014 | Dec. 31, 2013 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $15,396,827 | $28,586,121 |
Securities for Bank Acceptance Bill [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 10,689,297 | 14,132,921 |
Time Deposits [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $4,707,530 | $14,453,200 |
Accounts_receivable_net_Schedu
Accounts receivable, net (Schedule of Accounts Receivable) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts receivable, net [Abstract] | ||
Accounts receivable | $34,816,914 | $36,467,233 |
Less: allowance for doubtful debts | 2,500,307 | 2,506,219 |
Accounts receivable, net | $32,316,607 | $33,961,014 |
Accounts_receivable_net_Narrat
Accounts receivable, net (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts receivable, net [Abstract] | ||
Allowance for doubtful accounts | $768 | $483,586 |
Accounts receivable written off | $2,950 | $19,384 |
Prepayments_Details
Prepayments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Prepayments [Abstract] | ||
Purchase deposits paid | $1,793,599 | $2,876,267 |
Value-added tax prepayment | 384,008 | 1,032,619 |
Deferred share-based compensation | 131,812 | |
Rental deposit | 266,556 | 209,095 |
Deferred insurance fee | 97,005 | 53,297 |
Advances to staff for operations | 122,452 | 48,499 |
Other deposits and prepayments | 619,900 | 618,154 |
Total prepayments | $3,283,520 | $4,969,743 |
Other_receivables_Details
Other receivables (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Other receivables [Abstract] | ||
Deposit for land use right | $516,418 | $518,603 |
Others | 149,410 | 545,053 |
Total Other receivables | $665,828 | $1,063,656 |
Inventories_Details
Inventories (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Inventories [Abstract] | ||
Raw materials | $4,341,675 | $4,281,232 |
Work in progress | 3,949,778 | 2,047,627 |
Finished goods | 13,685,166 | 13,087,995 |
Packing materials | 20,137 | 20,591 |
Consumables | 271,313 | 301,915 |
Inventories | 22,268,069 | 19,739,360 |
Write down for inventories | $777,638 | $418,612 |
Property_plant_and_equipment_S
Property, plant and equipment (Schedule of Plant and Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Cost | ||
Construction in progress | $715,821 | $6,681,652 |
Furniture, fixtures and office equipment | 3,754,990 | 3,282,818 |
Leasehold improvement | 3,763,290 | 940,089 |
Machinery and equipment | 28,180,306 | 24,600,773 |
Motor vehicles | 1,479,921 | 1,430,611 |
Building | 25,414,914 | 21,521,416 |
Property, plant and equipment, cost | 63,309,242 | 58,457,359 |
Less: accumulated depreciation | 12,871,524 | 9,909,156 |
Property, plant and equipment, net | $50,437,718 | $48,548,203 |
Property_plant_and_equipment_N
Property, plant and equipment (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, plant and equipment [Abstract] | ||
Depreciation expenses | $4,054,403 | $2,377,118 |
Deductions for government grants | 672,675 | |
Building pledged as collateral | $10,573,369 | $10,867,411 |
Land_use_rights_Schedule_of_La
Land use rights (Schedule of Land Use Rights) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ||
Net | $4,305,317 | $4,421,415 |
Land Use Right [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,873,650 | 4,894,267 |
Accumulated amortization | -568,333 | -472,852 |
Net | 4,305,317 | 4,421,415 |
Lease terms of land use rights | 50 years | |
Land Use Right, Land Located in Huizhou [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 3,505,921 | 3,520,752 |
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 | $1,367,729 | $1,373,515 |
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, 2014 | Dec. 31, 2013 | |
Estimated amortization for the coming years is as follows | ||
Net | $4,305,317 | $4,421,415 |
Land Use Right [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expenses | 97,130 | 96,465 |
Estimated amortization for the coming years is as follows | ||
2015 | 97,130 | |
2016 | 97,130 | |
2017 | 97,130 | |
2018 | 97,130 | |
2019 and thereafter | 3,916,797 | |
Net | $4,305,317 | $4,421,415 |
Intangible_asset_Details
Intangible asset (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, net | $600,000 | $650,000 |
Consumer Battery License Fee [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,000,000 | 1,000,000 |
Accumulated amortization | -400,000 | -350,000 |
Intangible asset, net | 600,000 | 650,000 |
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, 2014 | Dec. 31, 2013 |
Other payables and accrued liabilities [Abstract] | ||
Accrued expenses | $3,649,806 | $3,877,095 |
Royalty payable | 580,032 | 582,486 |
VAT payable | 405,859 | 1,406,086 |
Sales deposits received | 911,947 | 1,574,258 |
Other payables | 348,903 | 361,506 |
Other payables and accrued liabilities | $5,896,547 | $7,801,431 |
Taxation_Components_of_Provisi
Taxation (Components of Provision for Income Taxes Benefit) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Taxation [Abstract] | ||
Current | $1,435,386 | $741,426 |
Deferred | -845,068 | -23,410 |
Effective enterprise income tax | $590,318 | $718,016 |
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, 2014 | Dec. 31, 2013 | |
Taxation [Abstract] | ||
Income before tax | $3,191,185 | $2,056,805 |
Provision for income taxes at applicable income tax rate | 587,347 | 484,314 |
Effect of preferential tax rate | -607,461 | -369,502 |
R&D expenses eligible for super deduction | -98,605 | |
Non-deductible expenses | 58,643 | 87,945 |
Change in valuation allowance | 650,394 | 515,259 |
Effective enterprise income tax | $590,318 | $718,016 |
Taxation_Schedule_of_Tax_Effec
Taxation (Schedule of Tax Effect of Each Major Type of Temporary Difference) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Taxation [Abstract] | ||
Tax loss carry-forward | $3,798,290 | $2,601,823 |
Allowance for doubtful receivables | 111,637 | 112,446 |
Allowance for inventory obsolescence | 138,458 | 46,441 |
Fair value change of currency forwards | -9,493 | |
Difference for sales cut-off | 20,572 | 46,824 |
Deferred income | 283,111 | 168,880 |
Property, plant and equipment subsidized by government grant | 100,901 | |
Total gross deferred tax assets | 4,452,969 | 2,966,921 |
Valuation allowance | -2,805,785 | -2,164,696 |
Total net deferred tax assets | $1,647,184 | $802,225 |
Notes_payable_Details
Notes payable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Notes payable [Abstract] | ||
Outstanding notes payable | $29,380,782 | $25,271,256 |
Trade acceptances to suppliers | $522,466 |
Shortterm_loans_Details
Short-term loans (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Short-term Debt [Line Items] | ||
Guaranteed and repayable within one year short-term bank loans | $15,195,040 | $36,142,105 |
Building pledged as collateral | 10,573,369 | 10,867,411 |
Interest expenses | 1,472,013 | 1,128,578 |
Short-term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Guaranteed and repayable within one year short-term bank loans | 0 | |
Land use right pledged as collateral | $3,015,092 | |
Minimum interest rate | 2.90% | |
Maximum interest rate | 7.50% |
Lines_of_credit_Details
Lines of credit (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | ||
Line of Credit Facility [Line Items] | |||
Line of credit | $62,054,504 | $74,606,494 | |
Unused line of credit | 22,573,652 | 29,303,645 | |
Debt covenant, percentage of total net assets | 20.00% | ||
Bank of China [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | 10-Mar-14 | 25-Jan-13 | |
Maturity date | 10-Mar-15 | 25-Jan-14 | [1] |
Line of credit | 12,653,474 | 3,689,129 | |
Unused line of credit | 424,823 | 247,582 | |
Bank of China [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | 23-Jul-14 | 10-Jan-13 | |
Maturity date | 23-Jul-15 | 10-Jan-14 | [2] |
Line of credit | 3,965,144 | 12,707,001 | |
Unused line of credit | 67,516 | 1,674,876 | |
Ping An Bank Co., Ltd [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | 20-Oct-14 | 12-Nov-13 | |
Maturity date | 19-Oct-15 | 17-Sep-14 | [2] |
Line of credit | 11,428,945 | 11,477,291 | |
Unused line of credit | 295,818 | 7,564,027 | |
China Minsheng Banking Corp., LTD [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | 22-May-14 | ||
Maturity date | 22-May-15 | ||
Line of credit | 3,265,413 | ||
Unused line of credit | |||
Shanghai Commercial & Savings Bank [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | 29-Aug-13 | ||
Maturity date | 29-Aug-14 | [1] | |
Line of credit | 3,000,000 | ||
Unused line of credit | 1,250,000 | ||
Shenzhen Baoan Guiyin County Bank [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | 19-Nov-14 | ||
Maturity date | 18-Nov-15 | ||
Line of credit | 4,734,848 | ||
Unused line of credit | 1,750,151 | ||
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 | [2] |
Line of credit | 6,530,826 | 6,558,452 | |
Unused line of credit | 3,918,496 | 1,803,574 | |
China Citic Bank [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | 25-Jun-14 | 29-Mar-13 | |
Maturity date | 25-Jun-15 | 29-Mar-14 | [2] |
Line of credit | 8,046,910 | 7,378,259 | |
Unused line of credit | 6,788,093 | 5,738,646 | |
China Everbright Bank [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | 30-May-13 | ||
Maturity date | 29-May-14 | [1] | |
Line of credit | 8,438,433 | ||
Unused line of credit | 1,382,194 | ||
China Everbright Bank [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | 4-Sep-13 | ||
Maturity date | 3-Sep-14 | [1] | |
Line of credit | 1,147,729 | ||
Unused line of credit | |||
Industrial Bank Co., LTD [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | 23-Oct-14 | 24-Jul-13 | |
Maturity date | 23-Oct-15 | 24-Jul-14 | [1] |
Line of credit | 6,530,825 | 8,198,065 | |
Unused line of credit | 4,430,636 | 6,558,452 | |
Jiang Su Bank Co., LTD [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | 28-Oct-14 | 21-Jun-13 | |
Maturity date | 11-Sep-15 | 20-Jun-14 | [1] |
Line of credit | 4,898,119 | 4,918,839 | |
Unused line of credit | 4,898,119 | ||
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 | [1] | |
Line of credit | 7,093,296 | ||
Unused line of credit | $3,084,294 | ||
[1] | The lines of credit from these banks are terminated at maturity dates. | ||
[2] | The lines of credit from these banks are rolled over after maturity dates. |
Longterm_loans_Details
Long-term loans (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 |
USD ($) | 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 | 3,918,495 | 5,902,607 | |||
Less: current portion of long-term borrowings | 1,959,248 | 1,967,536 | 1,959,248 | 1,967,536 | |
Long-term borrowings, net of current portion | 1,959,247 | 3,935,071 | 1,959,247 | 3,935,071 | |
Stated interest rate | 7.04% | ||||
Interest rate multiple | 110.00% | ||||
Benchmark rate during period | 7.04% | ||||
Interest on long-term loans | 366,142 | 518,577 | |||
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: | |||||
2015 | 1,959,248 | ||||
2016 | $1,959,247 |
Sharebased_compensation_Narrat
Share-based compensation (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||
Apr. 30, 2014 | Aug. 15, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 17, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock shares granted | 106,640 | ||||
Options forfeited | 144,714 | ||||
Unrecognized share-based compensation expense | $813,000 | ||||
Weighted-average recognition period | 1 year 5 months 19 days | ||||
Share-based compensation | 1,288,916 | 426,779 | |||
Shares issued to consultants | 40,000 | 150,000 | |||
Fair market value of shares issued | 171,000 | ||||
Compensation expense related to shares issued | 94,982 | 131,812 | |||
Share-based Goods and Nonemployee Services Transaction, Shares Approved for Issuance | 150,000 | ||||
Stock Options Related to Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate intrinsic value of options vested and expected to vest | 1,430,000 | ||||
Common stock shares granted | 540,000 | ||||
Exercise price of options granted | $2.63 | ||||
Options forfeited | 44,714 | 100,000 | |||
Share-based compensation | 767,317 | 387,089 | |||
Restricted Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock granted | 246,000 | ||||
Restricted Stock Awards [Member] | Vesting Immediately [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 30.00% | ||||
Restricted Stock Awards [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] | 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] | |||||
Shares issued to consultants | 200,000 | ||||
Fair market value of shares issued | 390,000 | ||||
Compensation expense related to shares issued | 390,000 | ||||
Non Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average fair value of options granted | $1.95 | ||||
Share-based compensation | $521,599 | $39,690 | |||
2008 Omnibus Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock available for issuance | 626,714 | ||||
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 |
Sharebased_compensation_Schedu
Share-based compensation (Schedule of Share-Based Compensation Related to Employees) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Shares | |||
Granted | 106,640 | ||
Forfeited | -144,714 | ||
Stock Options Related to Employees [Member] | |||
Number of Shares | |||
Outstanding, beginning balance | 1,105,000 | 665,000 | |
Granted | 540,000 | ||
Exercised | -200,000 | ||
Forfeited | -44,714 | -100,000 | |
Canceled | -100,000 | ||
Outstanding, ending balance | 760,286 | 1,105,000 | 665,000 |
Exercisable, ending balance | 413,620 | 380,000 | |
Vested and expected to vest, ending balance | 702,788 | 940,022 | |
Weighted Average Exercise Price | |||
Outstanding, beginning balance | $2.87 | $2.81 | |
Granted | $2.63 | ||
Exercised | $2.41 | ||
Forfeited | $2.63 | $1.15 | |
Canceled | $3.55 | ||
Outstanding, ending balance | $2.92 | $2.87 | $2.81 |
Exercisable, ending balance | $3.16 | $3.14 | |
Vested and expected to vest, ending balance | $2.94 | $2.90 | |
Remaining Contractual Term in Years | |||
Outstanding | 7 years 9 months 11 days | 8 years 6 months 4 days | 8 years 4 months 6 days |
Exercisable, ending balance | 6 years 11 months 23 days | 7 years 2 months 8 days | |
Vested and expected to vest, ending balance | 7 years 8 months 16 days | 8 years 3 months 29 days |
Sharebased_compensation_Schedu1
Share-based compensation (Schedule of Assumptions Used, Related to Non-Employees) (Details) (Non Employee Stock Option [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Non Employee Stock Option [Member] | ||
Weighted Average Assumptions for Fair Values of Stock Options | ||
Expected volatility | 83.60% | |
Risk-free interest rate | 1.64% | |
Expected term from grant date (in years) | 5 years | |
Dividend rate | ||
Fair value | $1.95 |
Sharebased_compensation_Schedu2
Share-based compensation (Schedule of Restricted Stock Awards) (Details) (Restricted Stock [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock [Member] | ||
Number of Shares | ||
Outstanding, beginning balance | 172,200 | |
Granted | 246,000 | |
Released | 73,800 | |
Forfeited | ||
Outstanding, ending balance | 98,400 | 172,200 |
Expected to vest | 87,576 | |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning balance | $2.81 | |
Granted | ||
Released | $2.81 | |
Forfeited | ||
Outstanding, ending balance | $2.81 | $2.81 |
Expected to vest | $2.81 | |
Remaining Contractual Term in Years | ||
Outstanding | 9 months 7 days | 1 year 9 months 7 days |
Expected to vest | 9 months 7 days |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | ||
Net income attributable to the Company | $2,753,236 | $1,451,218 |
Denominator: | ||
- Basic | 14,739,073 | 13,671,169 |
- Diluted | 15,154,239 | 13,687,698 |
- Basic | $0.19 | $0.11 |
- Diluted | $0.18 | $0.11 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation | 540,001 | |
Dilutive effect of options | 760,286 | 200,000 |
Dilutive effect of options forefeited | 144,714 | |
Dilutive effect of warrants | 200,000 | |
Total dilutive effect | 415,166 | 16,529 |
Securities_Offering_Transactio2
Securities Offering Transaction (Details) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||
Apr. 30, 2014 | Aug. 15, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 17, 2014 | Apr. 17, 2013 | |
Class of Stock [Line Items] | ||||||
Shares issued to investors | 1,000,000 | |||||
Number of shares covered by warrants | 500,000 | |||||
Shares issued, price per share | $5.05 | |||||
Aggregate proceeds | $5,050,000 | |||||
Shares covered by each warrant | 0.5 | |||||
Proceeds from issuance of capital stock and warrants, net | 4,633,164 | 4,633,164 | ||||
Warrant exercise price | $6.33 | |||||
Warrant Liability | 1,173,952 | 1,067,674 | ||||
Value of shares issued | 3,459,212 | 3,459,212 | ||||
Gain on change of fair value of warrant liability | -106,278 | |||||
Warrants issued to investment banker | 40,000 | 150,000 | ||||
Share-based compensation to investment banker | 94,982 | 131,812 | ||||
Investor Warrants [Member] | ||||||
Class of Stock [Line Items] | ||||||
Expected volatility | 86.40% | 85.76% | ||||
Risk-free interest rate | 0.79% | 0.90% | ||||
Expected term (in years) | 2 years 3 months 14 days | 3 years | ||||
Dividend rate | ||||||
Fair value | $2.14 | $2.30 | ||||
Banker Warrants [Member] | ||||||
Class of Stock [Line Items] | ||||||
Warrant exercise price | $6.33 | |||||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares issued to investors | 1,000,000 | |||||
Value of shares issued | $100 |
Defined_contribution_plan_Deta
Defined contribution plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined contribution plan [Abstract] | ||
Contributions to employee benefits plan | $1,489,130 | $1,613,765 |
Noncontrolling_interest_Detail
Non-controlling interest (Details) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 13, 2014 | Nov. 13, 2014 | Dec. 31, 2013 | 15-May-13 | 15-May-13 | Feb. 08, 2012 | Feb. 08, 2012 | Nov. 13, 2014 | |
USD ($) | USD ($) | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | Ganzhou Highpower Technology Company Limited [Member] | |
USD ($) | USD ($) | USD ($) | CNY | CNY | USD ($) | CNY | USD ($) | CNY | Shenzhen Highpower Technology Company Limited [Member] | |||
CNY | ||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||
Additional paid-in capital | $10,530,430 | $6,011,305 | $4,898,119 | $6,530,825 | 40,000,000 | 30,000,000 | $4,807,847 | 30,000,000 | $2,381,293 | 15,000,000 | 10,000,000 | |
Non-controlling interest | 1,307,239 | 1,299,252 | 1,307,239 | 1,299,252 | ||||||||
Net income (loss) attributable to non-controlling interest | 152,369 | 112,429 | 152,369 | 112,429 | ||||||||
Attributable equity interest held | 70.00% | 60.00% | 60.00% | |||||||||
Equity interest held by partner | 30.00% | 40.00% | 40.00% | 40.00% | ||||||||
Increase in noncontrolling interest |
Commitments_and_contingencies_1
Commitments and contingencies (Schedule of Minimum Future Commitments for Operating Leases) (Details) (USD $) | Dec. 31, 2014 |
Commitments and contingencies [Abstract] | |
2015 | $1,486,667 |
2016 | 1,344,136 |
2017 | 335,325 |
Total minimum future commitments | $3,166,128 |
Commitments_and_contingencies_2
Commitments and contingencies (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and contingencies [Abstract] | ||
Rent expenses | $1,589,757 | $1,343,045 |
Commitments and Contingencies Disclosure [Line Items] | ||
Contracted capital commitments | $990,031 | |
Minimum [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Lease expiration year | 2015 | |
Maximum [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Lease expiration year | 2017 |
Segment_information_Schedule_o
Segment information (Schedule of Segment Information about Revenues) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||
Net sales | $147,088,166 | $132,849,822 |
Cost of Sales | 116,937,363 | 106,465,780 |
Gross profit | 30,150,803 | 26,384,042 |
Ni-MH Batteries [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 74,971,144 | 72,886,102 |
Cost of Sales | 59,546,738 | 59,131,594 |
Gross profit | 15,424,406 | 13,754,508 |
Lithium Batteries [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 68,434,832 | 57,935,104 |
Cost of Sales | 54,072,611 | 45,515,519 |
Gross profit | 14,362,221 | 12,419,585 |
New Materials [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,682,190 | 2,028,616 |
Cost of Sales | 3,318,014 | 1,818,667 |
Gross profit | $364,176 | $209,949 |
Segment_information_Schedule_o1
Segment information (Schedule of Segment Information about Total Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ||
Total Assets | $146,154,072 | $151,793,376 |
Ni-MH Batteries [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 50,275,286 | 66,960,366 |
Lithium Batteries [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 86,339,973 | 76,357,912 |
New Materials [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $9,538,813 | $8,475,098 |
Segment_information_Schedule_o2
Segment information (Schedule of Geographic Information about Revenues) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $147,088,166 | $132,849,822 |
China mainland [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 69,271,339 | 64,941,519 |
Asia, Others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 37,699,071 | 28,684,864 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 29,853,397 | 28,606,470 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 9,335,245 | 9,572,209 |
South America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 426,664 | 490,728 |
Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 289,104 | 362,449 |
Others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $213,346 | $191,583 |
Segment_information_Schedule_o3
Segment information (Schedule of Geographic Information about Accounts Receivable) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | $32,316,607 | $33,961,014 |
China mainland [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 17,282,481 | 20,355,864 |
Asia, Others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 8,662,503 | 7,476,754 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 5,747,058 | 5,191,444 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 296,572 | 863,156 |
South America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 211,391 | 50,691 |
Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 81,962 | 25 |
Others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | $34,640 | $23,080 |