Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 15, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Highpower International, Inc. | |
Entity Central Index Key | 1,368,308 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | HPJ | |
Entity Common Stock, Shares Outstanding | 15,101,679 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | |
Current Assets: | |||
Cash | $ 6,798,975 | $ 5,849,967 | |
Restricted cash | 9,892,758 | 11,656,204 | |
Accounts receivable, net | 32,279,032 | 36,139,866 | |
Accounts receivable - related party | 2,152,054 | [1] | 0 |
Notes receivable | 684,697 | 1,757,709 | |
Prepayments and other receivables | 6,210,666 | 6,060,904 | |
Inventories, net | 20,502,568 | 19,218,331 | |
Total Current Assets | 78,520,750 | 80,682,981 | |
Property, plant and equipment, net | 48,569,186 | 47,464,186 | |
Land use right, net | 3,830,862 | 3,963,003 | |
Other assets | 1,000,662 | 550,000 | |
Deferred tax assets | 1,574,303 | 1,544,314 | |
Long-term investment | 751,925 | 0 | |
TOTAL ASSETS | 134,247,688 | 134,204,484 | |
Current Liabilities: | |||
Accounts payable | 32,803,377 | 36,077,396 | |
Deferred income | 785,899 | 879,944 | |
Short-term bank loan | 14,963,306 | 13,839,341 | |
Non-financial institution borrowings | 4,511,550 | 0 | |
Notes payable | 29,003,988 | 30,490,166 | |
Amount due to a related company | 761,895 | [2] | 0 |
Other payables and accrued liabilities | 6,503,604 | 6,292,492 | |
Income taxes payable | 1,252,743 | 1,783,013 | |
Current portion of long-term loan | 902,310 | 1,845,245 | |
Total Current Liabilities | 91,488,672 | 91,207,597 | |
Warrant Liability | 14,003 | 140,549 | |
TOTAL LIABILITIES | 91,502,675 | 91,348,146 | |
COMMITMENTS AND CONTINGENCIES | |||
Stockholders’ equity | |||
Preferred stock (Par value: $0.0001, Authorized: 10,000,000 shares, Issued and outstanding: none) | 0 | 0 | |
Common stock (Par value: $0.0001, Authorized: 100,000,000 shares, 15,101,679 shares issued and outstanding at June 30, 2016 and December 31, 2015) | 1,510 | 1,510 | |
Additional paid-in capital | 11,433,948 | 11,227,979 | |
Statutory and other reserves | 4,042,429 | 4,042,429 | |
Retained earnings | 25,807,349 | 24,098,175 | |
Accumulated other comprehensive income | 932,176 | 2,632,762 | |
Total equity for the stockholders of Highpower International Inc. | 42,217,412 | 42,002,855 | |
Non-controlling interest | 527,601 | 853,483 | |
TOTAL EQUITY | 42,745,013 | 42,856,338 | |
TOTAL LIABILITIES AND EQUITY | $ 134,247,688 | $ 134,204,484 | |
[1] | The balance of accounts receivable - related party represented the balance of accounts receivable with Yipeng. | ||
[2] | The balance of amount due to a related company mainly represented the sales security deposit collected from Yipeng, amounting to $755,793, which would be refund to Yipeng once the sales of battery cell since January 1, 2016 reached 550,000 PCS. And the remaining balance represented the accounts payable with Yipeng. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Preferred Stock, par value per share | $ 0.0001 | $ 0.0001 |
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 | $ 0.0001 | $ 0.0001 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 15,101,679 | 15,101,679 |
Common Stock, shares outstanding | 15,101,679 | 15,101,679 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net sales | $ 36,732,310 | $ 38,635,801 | $ 65,829,365 | $ 70,773,449 |
Cost of sales | (29,088,639) | (30,072,041) | (52,308,655) | (56,653,975) |
Gross profit | 7,643,671 | 8,563,760 | 13,520,710 | 14,119,474 |
Research and development expenses | (2,035,886) | (1,997,494) | (3,658,769) | (3,671,618) |
Selling and distribution expenses | (1,539,395) | (1,597,564) | (3,074,431) | (3,396,286) |
General and administrative expenses | (3,248,899) | (3,423,770) | (6,318,613) | (6,448,521) |
Foreign currency transaction gain | 600,313 | 73,546 | 509,877 | 443,857 |
Total operating expenses | (6,223,867) | (6,945,282) | (12,541,936) | (13,072,568) |
Income from operations | 1,419,804 | 1,618,478 | 978,774 | 1,046,906 |
Gain on change of fair value of warrant liability | 7,077 | 84,833 | 126,546 | 431,132 |
Other income | 1,055,947 | 357,055 | 1,211,875 | 587,147 |
Interest expenses | (435,402) | (275,476) | (710,394) | (544,118) |
Income before taxes | 2,047,426 | 1,784,890 | 1,606,801 | 1,521,067 |
Income taxes (expenses) benefit | (174,313) | (18,840) | (209,817) | 76,416 |
Net income | 1,873,113 | 1,766,050 | 1,396,984 | 1,597,483 |
Less: net loss attributable to non-controlling interest | (178,669) | (101,074) | (312,190) | (146,283) |
Net income attributable to the Company | 2,051,782 | 1,867,124 | 1,709,174 | 1,743,766 |
Comprehensive (loss) income | ||||
Net income | 1,873,113 | 1,766,050 | 1,396,984 | 1,597,483 |
Foreign currency translation (loss) income | (1,964,424) | 206,027 | (1,714,278) | 1,266 |
Comprehensive (loss) income | (91,311) | 1,972,077 | (317,294) | 1,598,749 |
Less: comprehensive loss attributable to non-controlling interest | (197,060) | (95,376) | (325,882) | (144,549) |
Comprehensive income attributable to the Company | $ 105,749 | $ 2,067,453 | $ 8,588 | $ 1,743,298 |
Income per share of common stock attributable to the Company | ||||
- Basic | $ 0.14 | $ 0.12 | $ 0.11 | $ 0.12 |
- Diluted | $ 0.14 | $ 0.12 | $ 0.11 | $ 0.11 |
Weighted average number of common stock outstanding | ||||
- Basic | 15,101,679 | 15,094,979 | 15,101,679 | 15,091,639 |
- Diluted | 15,102,877 | 15,441,576 | 15,103,886 | 15,469,274 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||
Net income | $ 1,396,984 | $ 1,597,483 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,486,196 | 2,535,695 |
Allowance for doubtful accounts | 4,837 | 896 |
Income on disposal of property, plant and equipment | 95,368 | 79,692 |
Deferred income tax | (64,671) | (230,050) |
Share based compensation | 205,969 | 412,304 |
Change in fair value of warrant liability | (126,546) | (431,132) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,216,097 | (787,672) |
Notes receivable | 1,051,486 | (1,645,051) |
Prepayments and other receivables | (770,029) | (2,338,484) |
Accounts receivable - related party | (2,187,784) | 0 |
Amount due to a related company | 774,545 | 0 |
Inventories | (1,735,486) | (3,386,818) |
Accounts payable | (2,843,233) | (1,503,555) |
Deferred revenue | (75,912) | 0 |
Other payables and accrued liabilities | 349,026 | 315,942 |
Income taxes payable | (499,161) | (573,875) |
Net cash flows provided by (used in) operating activities | 1,277,686 | (5,954,625) |
Cash flows from investing activities | ||
Acquisitions of plant and equipment | (4,415,690) | (4,047,717) |
Payment for long-term investment | (764,409) | 0 |
Net cash flows used in investing activities | (5,180,099) | (4,047,717) |
Cash flows from financing activities | ||
Proceeds from short-term bank loans | 1,452,377 | 0 |
Repayment of short-term loans | 0 | (6,062,248) |
Proceeds from non-financial institution borrowings | 4,586,455 | 0 |
Repayment of long-term bank loans | (917,291) | (978,649) |
Proceeds from notes payable | 29,485,540 | 30,931,015 |
Repayment of notes payable | (30,313,965) | (27,631,861) |
Proceeds from exercise of employee options | 0 | 44,534 |
Change in restricted cash | 1,531,837 | 2,588,730 |
Net cash flows provided by (used in) financing activities | 5,824,953 | (1,108,479) |
Effect of foreign currency translation on cash and cash equivalents | (973,532) | 238,188 |
Net increase (decrease) in cash and cash equivalents | 949,008 | (10,872,633) |
Cash and cash equivalents - beginning of period | 5,849,967 | 14,611,892 |
Cash and cash equivalents - end of period | 6,798,975 | 3,739,259 |
Cash paid for: | ||
Income taxes | 773,650 | 727,509 |
Interest expenses | $ 710,394 | $ 615,363 |
Organization and basis of prese
Organization and basis of presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization and basis of presentation [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization and basis of presentation 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"), 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 RMB 15,000,000 2,381,293 30,000,000 4,807,847 30,000,000 4,898,119 40,000,000 6,530,825 10,000,000 70 30 In April 2014, the Company and certain institutional investors entered into a securities purchase agreement, pursuant to which the Company sold 1,000,000 500,000 5.05 5.05 0.50 4,633,164 Highpower Energy Technology (Huizhou) Company Limited (“HZ Highpower”) which was formed by HKHTC in 2008, was dissolved in September 2015. The subsidiary did not commence operation since establishment. Therefore, the Company did not consider it as a strategic shift. Name of company Place and date Attributable equity Principal activities HKHTC Hong Kong 100 % Investment holding and marketing of batteries SZ Highpower PRC 100 % Manufacturing & marketing of NiMH batteries SZ Springpower PRC 100 % Manufacturing & marketing of lithium batteries GZ Highpower PRC 70 % Processing, marketing and research of battery materials ICON PRC 100 % Design and production of advanced battery packs and systems HZ HTC PRC 100 % Manufacturing & marketing of lithium batteries |
Summary of significant accounti
Summary of significant accounting policies | 6 Months Ended |
Jun. 30, 2016 | |
Summary of significant accounting policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Summary of significant accounting policies The accompanying consolidated balance sheet as of December 31, 2015, which has been derived from audited financial statements, and the unaudited interim consolidated financial statements as of June 30, 2016 and for the three and six ended June 30, 2016 and 2015 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and disclosures, which are normally included in financial statements prepared in accordance with United States generally accepted accounting principles (U.S. GAAP), have been condensed or omitted pursuant to such rules and regulations. The interim financial information should be read in conjunction with the Financial Statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, previously filed with the SEC on March 29, 2016. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair presentation of the Company’s consolidated financial position as of June 30, 2016, its consolidated results of operations and cash flows for the six months ended June 30, 2016 and 2015, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. The consolidated financial statements include the accounts of Highpower 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. The Company has reclassified certain comparative balances in the consolidated balance sheet for December 31, 2015 to conform to the current period’s presentation. The reclassification is related to the aggregation of the balance of prepayments and the balance of other receivables into the balance of prepayments and other receivables. The reclassification did not have an impact on the reported total assets, liabilities and stockholders’ equity. 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 significantly from these estimates. 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. No customer accounted for 10% or more of total sales during the three and six months ended June 30, 2016 and 2015. No supplier accounted for 10% or more of the total purchase amount during the three and six months ended June 30, 2016 and 2015. No customer accounted for 10% or more of the accounts receivable as of June 30, 2016. As of December 31, 2015, there was one major customer accounted for 11.3 Cash include all cash and deposits in banks with initial maturities of three months or less. Restricted cash include time deposits, cash security for bank acceptance bills included in notes payable and cash security for government subsidy. 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 against the allowance after all collection efforts have ceased. 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 represent banks’ and commercial 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 one year. 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, net 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. Buildings 2.5% -5% Furniture, fixtures and office equipment 20% Leasehold improvement 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 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. Other assets mainly represent a royalty-bearing, non-exclusive license to use certain patents owned by an unrelated party ("License Provider"), 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 License Provider to manufacture, sell and distribute Consumer Batteries. Investments in equity securities of privately-held companies in which the Company holds less than 20% voting interest are accounted for under the cost method. Investments in equity securities of privately-held companies in which the Company has between 20% and 50% of ownership interest in the voting stock, and to which the Company does not have the ability to exercise significant influence are accounted for under the cost method. Significant influence is generally considered to exist when the Company has between 20% and 50% of ownership interest in the voting stock, but other factors, such as representation on the board of directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for under the equity method. The Company evaluates potential impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. For investments carried at cost, the Company recognizes impairment in the event that the carrying value of the investment exceeds the Company’s proportionate share of the net book value of the investee. As of June 30, 2016, management believes no impairment charge is necessary. On April 1, 2016, the Company entered into an investment agreement with Huizhou Yipeng Energy Technology Co. Ltd. ("Yipeng"), whereby the Company acquired 5 5,000,000 751,925 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 accompanying condensed consolidated balance sheet as deferred income and subsequently deducted in calculating the carrying amount of the related asset after the purchase, construction or acquisition completed. As of June 30, 2016 and December 31, 2015, the Company recorded deferred income of $ 785,899 879,944 Government grants for the purpose of giving immediate financial support to the Company by local government are recognized as other income when received. In the three months ended June 30, 2016 and 2015, $ 938,856 112,188 945,525 221,483 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 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. 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, 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, is expensed as incurred. No significant advertising expense was recorded for the three and six months ended June 30, 2016 and 2015. 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 recorded at the fair value on the measurement date. The measurement of stock-based compensation is subject to periodic adjustment as the underlying equity instruments vest. 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. 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. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years, five years, ten years and twenty years, if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent, the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent, and under the circumstances of transferring pricing issues and tax evasion, respectively. There were no uncertain tax positions as of June 30, 2016 and December 31, 2015 and the Company does not believe that its unrecognized tax benefits will change over the next twelve months. Comprehensive income (loss) is comprised of the Company’s net income (loss) and other comprehensive income (loss). The component of other comprehensive income or loss is consisted solely of foreign currency translation adjustments, net of the income tax effect. 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 (loss). 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) Lithium Batteries; (ii) Ni-MH Batteries; and (iii) New Material. The carrying values of the Company’s financial instruments, including cash, 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. 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. Basic earnings per share is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted earnings per share (“EPS”) reflect 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. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, or ASU 2014-09. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to correlate with the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year, while allowing a company to adopt the new revenue standard early but not before the original effective date. This guidance will be effective as to us on January 1, 2018 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In April and May 2016, the FASB issued Accounting Standards Update 2016-10, Revenue from Contracts with Customers, or ASU 2016-10, and Accounting Standards Update 2016-12, Revenue from Contracts with Customers, or ASU 2016-12, respectively. These new standards will identify performance obligations and narrow aspects on achieving core principle. The Company is currently evaluating the impact of adopting these ASUs on our consolidated financial statements. On February 25, 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). It requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted for all public business entities and all nonpublic business entities upon issuance. The Company is currently evaluating the impact of adopting ASU 2016-02 on our consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update (ASU) 2016-09, Compensation—Stock Compensation (Topic 718). Under this update, share-based payment transactions simplified several aspects of the accounting, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact of adopting ASU 2016-09 on our consolidated financial statements. We do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Restricted cash
Restricted cash | 6 Months Ended |
Jun. 30, 2016 | |
Restricted cash [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | 3. Restricted cash June 30, December 31, 2016 2015 (Unaudited) $ $ Securities for bank acceptance bill 9,437,906 11,392,231 Government subsidy deposit 454,852 - Time deposits - 263,973 9,892,758 11,656,204 |
Accounts receivable, net
Accounts receivable, net | 6 Months Ended |
Jun. 30, 2016 | |
Accounts receivable, net [Abstract] | |
Accounts Receivable [Text Block] | 4. Accounts receivable, net June 30, December 31, 2016 2015 (Unaudited) $ $ Accounts receivable 34,346,909 38,211,951 Less: allowance for doubtful debts 2,067,877 2,072,085 32,279,032 36,139,866 |
Prepayments and other receivabl
Prepayments and other receivables | 6 Months Ended |
Jun. 30, 2016 | |
Prepayments [Abstract] | |
Prepaid Expense [Text Block] | 5. Prepayments and other receivables June 30, December 31, 2016 2015 (Unaudited) $ $ Purchase deposits paid 4,435,842 3,752,125 Value-added tax (“VAT”) prepayment 345,049 546,358 Rental deposit 405,957 414,843 Prepaid insurance fee 188,518 206,424 Advances to employee for daily operations 278,536 39,886 Compensation receivable for land occupation - 486,370 Prepaid expenses 556,764 614,898 6,210,666 6,060,904 As the compensation receivable for land occupation will not be received in the next 12 months, it is reclassified to non-current assets. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventories [Abstract] | |
Inventory Disclosure [Text Block] | 6. Inventories June 30, December 31, 2016 2015 (Unaudited) $ $ Raw materials 5,398,508 4,320,455 Work in progress 4,683,830 4,568,530 Finished goods 10,130,115 9,994,401 Packing materials 13,183 17,167 Consumables 276,932 317,778 20,502,568 19,218,331 |
Property, plant and equipment,
Property, plant and equipment, net | 6 Months Ended |
Jun. 30, 2016 | |
Property, plant and equipment, net [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 7. Property, plant and equipment, net June 30, December 31, 2016 2015 (Unaudited) $ $ Cost Construction in progress 1,550,612 1,678,961 Furniture, fixtures and office equipment 3,990,851 3,882,594 Leasehold improvement 5,434,218 4,092,668 Machinery and equipment 31,112,125 29,295,041 Motor vehicles 1,647,036 1,643,173 Buildings 22,771,842 23,046,056 66,506,684 63,638,493 Less: accumulated depreciation 17,937,498 16,174,307 48,569,186 47,464,186 The Company recorded depreciation expenses of $ 2,415,561 2,462,008 1,194,584 1,252,756 During the six months ended June 30, 2016, the Company deducted deferred income related to government grants of $ 26,988 2,547,545 The buildings comprising the Huizhou facilities have been pledged as collateral for bank loans as of June 30, 2016 and December 31, 2015. The buildings comprising the Ganzhou facilities have been pledged as collateral for short-term loans and bank acceptance bills drawn under certain lines of credit (see Note 16) as of June 30, 2016 and December 31, 2015. |
Land use rights, net
Land use rights, net | 6 Months Ended |
Jun. 30, 2016 | |
Land use rights, net [Abstract] | |
Land Use Rights Disclosure [Text Block] | 8. Land use rights, net June 30, December 31, 2016 2015 (Unaudited) $ $ Cost Land located in Huizhou 3,229,227 3,301,923 Land located in Ganzhou 1,259,785 1,288,146 4,489,012 4,590,069 Accumulated amortization (658,150) (627,066) Net 3,830,862 3,963,003 As of June 30, 2016, 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 126,605 58,669 May 23, 2057 January 4, 2062 50 $ Remaining 2016 45,635 2017 91,270 2018 91,270 2019 91,270 2020 91,270 thereafter 3,420,147 3,830,862 The Company recorded amortization expenses of $ 45,635 48,688 22,733 24,397 The land use right for land located in Huizhou City was pledged as collateral for bank loans as of June 30, 2016 and December 31, 2015. As of June 30, 2016 and December 31, 2015, the land use right for land located in Ganzhou City was pledged as collateral for line of credit, which was used for short-term loans and bank acceptance bills. |
Other assets
Other assets | 6 Months Ended |
Jun. 30, 2016 | |
Intangible asset [Abstract] | |
Intangible Assets Disclosure [Text Block] | 9. Other assets June 30, December 31, 2016 2015 (Unaudited) $ $ Consumer battery license fee 525,000 550,000 Compensation receivable for land occupation 475,662 - 1,000,662 550,000 The Company is amortizing the $ 1,000,000 20 Amortization expenses included in research and development expenses were $ 25,000 12,500 |
Long-term investment
Long-term investment | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Long Term Investment [Text Block] | 10. Long-term investment On April 1, 2016, the Company entered into an investment agreement with Huizhou Yipeng Energy Technology Co. Ltd. ("Yipeng"), whereby the Company acquired 5% equity interest of Yipeng for RMB 5,000,000 ($751,925). Yipeng finished the commercial and administrative registration of the change of shareholder on May 2, 2016. |
Other payables and accrued liab
Other payables and accrued liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Other payables and accrued liabilities [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | 11. Other payables and accrued liabilities June 30, December 31, 2016 2015 (Unaudited) $ $ Accrued expenses 3,827,899 3,816,940 Royalty payable 418,866 461,055 Value-added tax payable 747,734 959,422 Sales deposits received 1,082,071 562,696 Other payables 427,034 492,379 6,503,604 6,292,492 Other payables mainly represent department expenses payable and scholarship funds payable. |
Taxation
Taxation | 6 Months Ended |
Jun. 30, 2016 | |
Taxation [Abstract] | |
Income Tax Disclosure [Text Block] | 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 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 35 Hong Kong HKHTC, which is 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. If these subsidiaries fail to renew NHTE status, they will be subject to income tax at a rate of 25 All the PRC subsidiaries received NHTE status and enjoy 15 Three months ended Six months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Current 111,867 61,517 274,488 153,634 Deferred 62,446 (42,677) (64,671) (230,050) Total income tax expense (benefit) 174,313 18,840 209,817 (76,416) Three months ended Six months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Income before tax 2,047,426 1,784,890 1,606,801 1,521,067 Provision for income taxes at applicable income tax rate 512,993 399,114 409,393 312,941 Effect of preferential tax rate (116,208) 37,545 (139,878) 31,250 R&D expenses eligible for super deduction (555,531) (555,607) (555,531) (555,607) Non-deductible expenses 96,716 11,947 114,336 26,901 Change in valuation allowance 236,343 125,841 381,497 108,099 Effective enterprise income tax expense (benefit) 174,313 18,840 209,817 (76,416) 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. June 30 December 31, 2016 2015 (Unaudited) $ $ Tax loss carry-forward 4,081,452 3,382,543 Allowance for doubtful receivables 46,871 47,197 Allowance for inventory obsolescence 128,797 217,733 Difference for sales cut-off 11,381 33,071 Deferred income 117,885 131,992 Property, plant and equipment subsidized by government grant 473,464 490,883 Total gross deferred tax assets 4,859,850 4,303,419 Valuation allowance (3,285,547) (2,759,105) Total net deferred tax assets 1,574,303 1,544,314 The deferred tax assets arising from net operating losses will expire from 2018 if not utilized. Valuation allowance was provided against deferred tax assets in entities where it was determined it was more likely than not that the benefits of the deferred tax assets will not be realized. The Company had deferred tax assets which consisted of tax loss carry-forwards and others, which can be carried forward to offset future taxable income. The management determines it is more likely than not that part of deferred tax assets could not be utilized, so allowance was provided as of June 30, 2016 and December 31, 2015. |
Notes payable
Notes payable | 6 Months Ended |
Jun. 30, 2016 | |
Notes payable [Abstract] | |
Notes Payable Disclosure [Text Block] | 13. Notes payable Notes payable are presented to certain suppliers as a payment against the outstanding trade payables. Notes payable are mainly bank acceptance bills which are non-interest bearing and generally mature within six months. The outstanding bank acceptance bills are secured by restricted cash deposited in banks. Outstanding bank acceptance bills were $ 29,003,988 30,379,170 As of June 30, 2016 and December 31, 2015, the outstanding trade acceptances to suppliers were $nil and $ 110,996 |
Short-term loans
Short-term loans | 6 Months Ended |
Jun. 30, 2016 | |
Short-term loans [Abstract] | |
Short-term Debt [Text Block] | 14. Short-term loans June 30, December 31, 2016 2015 (Unaudited) $ $ Short- term bank loans guaranteed and repayable within one year 14,963,306 13,839,341 As of June 30, 2016, 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, land use right with a carrying amount of $ 3,830,862 12,129,450 As of December 31, 2015, 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 $ 3,963,003 12,419,622 The loans as of June 30, 2016 were primarily obtained from three banks with interest rates ranging from 4.35 6.06 422,593 419,156 215,485 218,142 |
Non-financial institution borro
Non-financial institution borrowings | 6 Months Ended |
Jun. 30, 2016 | |
Short-term loans [Abstract] | |
Non-Financial Institution Borrowings [Text Block] | Non-financial institution borrowings June 30, December 31, 2016 2015 (Unaudited) $ $ Non-financial institution borrowings 4,511,550 - In April and May, 2016, the Company obtained borrowings from a third party non-financial institution and an individual, which were used for working capital and capital expenditure purposes. The borrowings are personally guaranteed by the Company’s Chief Executive Officer, Mr. Dang Yu Pan. The interest rate for both borrowings is 5.66 32,905 |
Lines of credit
Lines of credit | 6 Months Ended |
Jun. 30, 2016 | |
Lines of credit [Abstract] | |
Line Of Credit Facilities [Text Block] | 16. Lines of credit June 30, 2016 (Unaudited) Lender Starting Maturity Line of Unused line $ $ Bank of China 7/13/2015 9/13/2016 13,857,707 2,220,160 Ping An Bank Co., Ltd 12/10/2015 12/9/2016 10,838,430 5,725,094 China Minsheng Banking Corp., LTD. 7/16/2015 7/16/2016 4,423,849 166,542 Industrial Bank CO., LTD. 7/15/2015 7/15/2016 9,290,083 9,290,083 Industrial and Commercial Bank of China 10/1/2015 10/1/2016 7,741,736 4,734,036 Jiang Su Bank Co., Ltd 11/4/2015 (i) 11/3/2016 3,673,987 1,276,003 Hong Kong and Shanghai Banking Corporation 9/1/2015 7/15/2016 8,000,000 8,000,000 Huaxia Bank Co., Ltd 6/1/2015 6/1/2017 5,800,564 5,800,564 Total 63,626,356 37,212,482 (i) Jiang Su Bank Co., Ltd provided a $ 2.3 2.3 35 40 3.67 December 31, 2015 Lender Starting Maturity Line of Unused line $ $ Bank of China 7/13/2015 9/13/2016 13,762,455 4,707,595 Bank of China 7/1/2015 6/30/2016 11,203,276 155,498 Ping An Bank Co., Ltd 12/10/2015 12/9/2016 10,763,931 3,878,818 China Minsheng Banking Corp., LTD. 7/16/2015 7/16/2016 4,393,441 1,916,253 Industrial Bank CO., LTD. 7/15/2015 7/15/2016 9,226,227 7,079,785 China Everbright Bank 6/23/2015 6/22/2016 7,688,523 3,647,289 Industrial and Commercial Bank of China 10/1/2015 10/1/2016 7,688,523 4,613,113 Jiang Su Bank Co., Ltd 11/4/2015 11/3/2016 2,306,557 995,703 Hongkong and Shanghai Banking Corporation Limited 9/1/2015 7/15/2016 8,000,000 8,000,000 Total 75,032,933 34,994,054 The lines of credits from Bank of China, Ping An Bank Co., Ltd, China Minsheng Banking Corp. LTD., Industrial Bank CO., LTD, China Everbright Bank, Industrial and Commercial Bank of China, and Hongkong and Shanghai Banking Corporation Limited are guaranteed by the Company’s Chief Executive Officer, Mr. Dang Yu Pan. The lines of credits from Jiang Su Bank Co., Ltd are guaranteed by the Company’s Chief Executive Officer, Mr. Dang Yu Pan, and his wife. Certain of the agreements governing the Company’s loans include standard affirmative and negative covenants. |
Long-term loans
Long-term loans | 6 Months Ended |
Jun. 30, 2016 | |
Long-term loans [Abstract] | |
Long-term Debt [Text Block] | 17. Long-term loans June 30, December 31, (Unaudited) $ $ Long-term loans from Bank of China 902,310 1,845,245 Less: current portion of long-term borrowings 902,310 1,845,245 Long- term bank loans, net of current portion - - On January 13, 2012, the Company borrowed $ 8,198,065 50 110 5.39 The interest expenses were $ 44,038 124,962 18,402 57,334 The principal is to be repaid quarterly from September 30, 2012. 2 6 |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 18. Share-based Compensation The 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 at 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 June 30, 2016, 393,141 Number of Weighted Remaining $ Outstanding, January 1, 2015 760,286 2.92 7.78 Granted 75,000 4.43 - Exercised (16,933) 2.63 - Forfeited (26,336) 2.63 - Canceled (5,091) 2.63 - Outstanding, December 31, 2015 786,926 3.08 6.90 Exercisable, December 31, 2015 587,407 3.16 6.56 Number of Weighted Remaining $ Outstanding, January 1, 2016 786,926 3.08 6.90 Granted 190,000 2.66 - Outstanding, June 30, 2016 976,926 3.00 7.02 Exercisable, June 30, 2016 623,407 3.22 6.27 Six months ended 2016 2015 Expected volatility 76.98%-79.55 % 78.57%-89.73 % Risk-free interest rate 1.21%-1.4 % 1.54%-1.71 % Expected term from grant date (in years) 5-6.05 5.0-6.05 Dividend rate 0.00 % 0.00 % The aggregate intrinsic value of options vested and expected to vest as of June 30, 2016 and December 31, 2015 was approximately $ 1,950 178,000 During the six months ended June 30, 2016, the Company granted options to purchase 190,000 2.66 During the three and six months ended June 30, 2015, the Company granted options to purchase 75,000 16,933 8,564 3,670 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 There were no RSAs granted to employees during the three and six months ended June 30, 2016. Total Share-based Compensation Expense As of June 30, 2016 the gross amount of unrecognized share-based compensation expense relating to unvested share-based awards held by employees was approximately $ 388,479 1.57 In connection with the grant of stock options, restricted stock awards and warrants to employees, the Company recorded stock-based compensation charges of $ 95,259 290,943 205,969 412,304 |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings per share [Abstract] | |
Earnings Per Share [Text Block] | 19. Earnings per share Three months ended Six months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Numerator: Net income attributable to the Company 2,051,782 1,867,124 1,709,174 1,743,766 Denominator: Weighted-average shares outstanding - Basic 15,101,679 15,094,979 15,101,679 15,091,639 - Dilutive effects of equity incentive awards 1,198 346,597 2,207 377,635 - Diluted 15,102,877 15,441,576 15,103,886 15,469,274 Net income per share Basic 0.14 0.12 0.11 0.12 Diluted 0.14 0.12 0.11 0.11 |
Securities Offering Transaction
Securities Offering Transaction | 6 Months Ended |
Jun. 30, 2016 | |
Securities Offering Transaction [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 20. Securities Offering Transaction In April 2014, the Company and certain institutional investors entered into a securities purchase agreement, pursuant to which the Company sold 1,000,000 500,000 5.05 5.05 0.50 4,633,164 The warrants have an initial exercise price of $ 6.33 The warrants were classified as a liability. The aggregate fair value of the warrant liability at issuance dates was $ 1,173,952 3,459,212 April 17, 2014 Expected volatility 85.76 % Risk-free interest rate 0.9 % Expected term (in years) 3.0 Dividend rate - Fair value $ 2.3 The fair value of the warrant liability is re-measured at each reporting period and recorded as a gain or loss on fair value of warrant liability. As of June 30, 2016 and December 31, 2015, the fair value of warrant liability was $ 14,003 140,549 7,077 84,833 126,542 431,132 June 30, 2016 December 31,2015 Expected volatility 72.31 % 79.85 % Risk-free interest rate 0.41 0.56 % Expected term (in years) 0.80 1.30 Dividend rate - - Fair value $ 0.03 $ 0.81 The Company revalued the warrants utilizing a binomial model as of June 30, 2016 and December 31, 2015 with no difference in the value. In conjunction with the securities offering transaction, the Company issued three year warrants to investment bankers to purchase 40,000 6.33 94,982 |
Defined contribution plan
Defined contribution plan | 6 Months Ended |
Jun. 30, 2016 | |
Defined contribution plan [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 21. 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 $ 754,663 826,889 419,105 414,201 |
Non-controlling interest
Non-controlling interest | 6 Months Ended |
Jun. 30, 2016 | |
Non-controlling interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | 22. Non-controlling interest As of June 30 2016 and December 31, 2015, non-controlling interest related to the 30 527,601 853,483 Non-controlling interest related to GZ Highpower in the consolidated statements of operations was loss of $ 312,190 146,283 178,669 101,074 |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and contingencies [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 23. 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 2016 2019 $ Remaining 2016 864,915 2017 800,397 2018 491,296 2019 236,562 2,393,170 Rent expenses for the six months ended June 30, 2016 and 2015 were $ 800,284 819,448 394,711 415,254 Capital commitment On June 30, 2016, HZ HTC entered into an Agreement for Equity Transfer and Capital Increase with Yipeng and the shareholders listed therein, which was amended by Supplementary Agreements, I, II, and III (collectively, the “Equity Purchase Agreement”). Pursuant to the terms of the Equity Purchase Agreement, the Company will purchase up to 50 5 2.3 6.8 30.4 2.9 5.3 14.6 1 0.4 51 Contingencies On January 14, 2016, FirsTrust China, Ltd filed an amended complaint in the Delaware Chancery Court (amending its initial complaint filed February 25, 2015) naming Highpower as the defendant asserting a cause of action for breach of contract and conversion of stock, and seeking damages in the form of issuance of 150,000 return of the 200,000 warrants and 150,000 shares of Highpower stock previously issued to FirsTrust, plus interest, attorneys’ fees and costs and expenses. |
Segment information
Segment information | 6 Months Ended |
Jun. 30, 2016 | |
Segment information [Abstract] | |
Segment Reporting Disclosure [Text Block] | 24. 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) Lithium Batteries; (ii) Ni-MH Batteries; and (iii) New Materials. Three months ended Six months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Net sales Ni-MH Batteries 11,972,810 15,775,426 24,829,135 30,534,896 Lithium Batteries 23,666,887 22,066,302 38,981,832 38,886,930 New Materials 1,092,613 794,073 2,018,398 1,351,623 Total 36,732,310 38,635,801 65,829,365 70,773,449 Cost of Sales Ni-MH Batteries 8,869,549 11,850,483 18,475,355 23,565,936 Lithium Batteries 18,857,605 17,307,091 31,364,936 31,640,483 New Materials 1,361,485 914,467 2,468,364 1,447,556 Total 29,088,639 30,072,041 52,308,655 56,653,975 Gross Profit Ni-MH Batteries 3,103,261 3,924,943 6,353,780 6,968,960 Lithium Batteries 4,809,282 4,759,211 7,616,896 7,246,447 New Materials (268,872) (120,394) (449,966) (95,933) Total 7,643,671 8,563,760 13,520,710 14,119,474 June 30, 2016 December 31,2015 (Unaudited) $ $ Total Assets Lithium Batteries 87,157,260 82,006,317 Ni-MH Batteries 36,911,805 41,590,201 New Materials 10,178,623 10,607,966 Total 134,247,688 134,204,484 Three months ended Six months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Net sales China Mainland 28,855,932 19,290,058 37,385,011 33,315,390 Asia, others 6,295,056 11,637,753 18,275,423 22,079,640 Europe 208,548 5,749,314 6,524,327 11,565,500 North America 1,285,688 1,783,947 2,919,834 3,340,558 South America 14,074 147,644 478,971 301,573 Africa 25,968 - 50,001 103,807 Others 47,044 27,085 195,798 66,981 36,732,310 38,635,801 65,829,365 70,773,449 June 30, 2016 December 31, 2015 (Unaudited) $ $ Accounts receivable China Mainland 22,392,393 23,832,388 Asia, others 7,293,500 6,443,781 Europe 1,879,847 5,324,389 North America 675,645 433,458 South America 20,778 - Africa - 55,240 Others 16,869 50,610 32,279,032 36,139,866 |
Related party balance and trans
Related party balance and transaction | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 25. Related party balance and transaction Related party balance $ Accounts receivable - related party(I) 2,152,054 Amount due to Yipeng(II) 761,895 (I) The balance of accounts receivable - related party represented the balance of accounts receivable with Yipeng. (II) The balance of amount due to a related company mainly represented the sales security deposit collected from Yipeng, amounting to $ 755,793 550,000 Related party transaction Period from May 2,2016 to June 30,2016 (Unaudited) $ Sales-Yipeng(III) 1,264,934 (III) The transaction amount represented the total sales of Lithium battery with Yipeng. |
Subsequent event
Subsequent event | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent event [Abstract] | |
Subsequent Events [Text Block] | 26. Subsequent event On August 3, 2016, Henry Sun advised the Company of his decision to resign as Chief Financial Officer and Corporate Secretary of the Company effective upon the appointment of a successor. On August 7, 2016, the Company appointed Sunny Pan as its Interim Chief Financial Officer and Corporate Secretary. On August 10, 2016, the Company consummated the first closing pursuant to the terms of the Equity Purchase Agreement, resulting in an aggregate 35.4 |
Summary of significant accoun32
Summary of significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Summary of significant accounting policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation The accompanying consolidated balance sheet as of December 31, 2015, which has been derived from audited financial statements, and the unaudited interim consolidated financial statements as of June 30, 2016 and for the three and six ended June 30, 2016 and 2015 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and disclosures, which are normally included in financial statements prepared in accordance with United States generally accepted accounting principles (U.S. GAAP), have been condensed or omitted pursuant to such rules and regulations. The interim financial information should be read in conjunction with the Financial Statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, previously filed with the SEC on March 29, 2016. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair presentation of the Company’s consolidated financial position as of June 30, 2016, its consolidated results of operations and cash flows for the six months ended June 30, 2016 and 2015, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
Consolidation, Policy [Policy Text Block] | Principles of consolidation The consolidated financial statements include the accounts of Highpower 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. |
Reclassification, Policy [Policy Text Block] | Reclassification The Company has reclassified certain comparative balances in the consolidated balance sheet for December 31, 2015 to conform to the current period’s presentation. The reclassification is related to the aggregation of the balance of prepayments and the balance of other receivables into the balance of prepayments and other receivables. The reclassification did not have an impact on the reported total assets, liabilities and stockholders’ equity. |
Use of Estimates, Policy [Policy Text Block] | 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 significantly from these estimates. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | 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. No customer accounted for 10% or more of total sales during the three and six months ended June 30, 2016 and 2015. No supplier accounted for 10% or more of the total purchase amount during the three and six months ended June 30, 2016 and 2015. No customer accounted for 10% or more of the accounts receivable as of June 30, 2016. As of December 31, 2015, there was one major customer accounted for 11.3 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Cash include all cash and deposits in banks with initial maturities of three months or less. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted cash Restricted cash include time deposits, cash security for bank acceptance bills included in notes payable and cash security for government subsidy. |
Receivables, Policy [Policy Text Block] | 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 against the allowance after all collection efforts have ceased. 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. |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Notes receivable represent banks’ and commercial 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 one year. |
Inventory, Policy [Policy Text Block] | 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, Policy [Policy Text Block] | Property, plant and equipment Property, plant and equipment, net 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. Buildings 2.5% -5% Furniture, fixtures and office equipment 20% Leasehold improvement 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 [Policy Text Block] | Land use rights 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. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Other assets Other assets mainly represent a royalty-bearing, non-exclusive license to use certain patents owned by an unrelated party ("License Provider"), 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 License Provider to manufacture, sell and distribute Consumer Batteries. |
Investment, Policy [Policy Text Block] | Long-term investment Investments in equity securities of privately-held companies in which the Company holds less than 20% voting interest are accounted for under the cost method. Investments in equity securities of privately-held companies in which the Company has between 20% and 50% of ownership interest in the voting stock, and to which the Company does not have the ability to exercise significant influence are accounted for under the cost method. Significant influence is generally considered to exist when the Company has between 20% and 50% of ownership interest in the voting stock, but other factors, such as representation on the board of directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for under the equity method. The Company evaluates potential impairment whenever events or changes in circumstances indicate that the carrying amount of the investments may not be recoverable. For investments carried at cost, the Company recognizes impairment in the event that the carrying value of the investment exceeds the Company’s proportionate share of the net book value of the investee. As of June 30, 2016, management believes no impairment charge is necessary. On April 1, 2016, the Company entered into an investment agreement with Huizhou Yipeng Energy Technology Co. Ltd. ("Yipeng"), whereby the Company acquired 5 5,000,000 751,925 |
Revenue Recognition, Deferred Revenue [Policy Text Block] | 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 accompanying condensed consolidated balance sheet as deferred income and subsequently deducted in calculating the carrying amount of the related asset after the purchase, construction or acquisition completed. As of June 30, 2016 and December 31, 2015, the Company recorded deferred income of $ 785,899 879,944 Government grants for the purpose of giving immediate financial support to the Company by local government are recognized as other income when received. In the three months ended June 30, 2016 and 2015, $ 938,856 112,188 945,525 221,483 |
Revenue Recognition, Policy [Policy Text Block] | 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, Policy [Policy Text Block] | 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. |
Research and Development Expense, Policy [Policy Text Block] | 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 Costs, Policy [Policy Text Block] | 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, is expensed as incurred. No significant advertising expense was recorded for the three and six months ended June 30, 2016 and 2015. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | 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 recorded at the fair value on the measurement date. The measurement of stock-based compensation is subject to periodic adjustment as the underlying equity instruments vest. |
Income Tax, Policy [Policy Text Block] | 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. |
Income Tax Uncertainties, Policy [Policy Text Block] | 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. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years, five years, ten years and twenty years, if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent, the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent, and under the circumstances of transferring pricing issues and tax evasion, respectively. There were no uncertain tax positions as of June 30, 2016 and December 31, 2015 and the Company does not believe that its unrecognized tax benefits will change over the next twelve months. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (loss) Comprehensive income (loss) is comprised of the Company’s net income (loss) and other comprehensive income (loss). The component of other comprehensive income or loss is consisted solely of foreign currency translation adjustments, net of the income tax effect. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | 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 (loss). |
Segment Reporting, Policy [Policy Text Block] | 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) Lithium Batteries; (ii) Ni-MH Batteries; and (iii) New Material. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair value of financial instruments The carrying values of the Company’s financial instruments, including cash, 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 Policy [Policy Text Block] | 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. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per share Basic earnings per share is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted earnings per share (“EPS”) reflect 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently issued accounting pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, or ASU 2014-09. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to correlate with the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year, while allowing a company to adopt the new revenue standard early but not before the original effective date. This guidance will be effective as to us on January 1, 2018 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In April and May 2016, the FASB issued Accounting Standards Update 2016-10, Revenue from Contracts with Customers, or ASU 2016-10, and Accounting Standards Update 2016-12, Revenue from Contracts with Customers, or ASU 2016-12, respectively. These new standards will identify performance obligations and narrow aspects on achieving core principle. The Company is currently evaluating the impact of adopting these ASUs on our consolidated financial statements. On February 25, 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). It requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted for all public business entities and all nonpublic business entities upon issuance. The Company is currently evaluating the impact of adopting ASU 2016-02 on our consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update (ASU) 2016-09, Compensation—Stock Compensation (Topic 718). Under this update, share-based payment transactions simplified several aspects of the accounting, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact of adopting ASU 2016-09 on our consolidated financial statements. We do not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Organization and basis of pre33
Organization and basis of presentation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization and basis of presentation [Abstract] | |
Schedule of Subsidiaries and Principal Activities [Table Text Block] | The subsidiaries of the Company and their principal activities are described as follows: Name of company Place and date Attributable equity Principal activities HKHTC Hong Kong 100 % Investment holding and marketing of batteries SZ Highpower PRC 100 % Manufacturing & marketing of NiMH batteries SZ Springpower PRC 100 % Manufacturing & marketing of lithium batteries GZ Highpower PRC 70 % Processing, marketing and research of battery materials ICON PRC 100 % Design and production of advanced battery packs and systems HZ HTC PRC 100 % Manufacturing & marketing of lithium batteries |
Summary of significant accoun34
Summary of significant accounting policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Summary of significant accounting policies [Abstract] | |
Schedule Of Composite Depreciation Rate [Table Text Block] | 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 Machinery and equipment 10% Motor vehicles 20% |
Restricted cash (Tables)
Restricted cash (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Restricted cash [Abstract] | |
Schedule of Restricted Cash and Cash Equivalents [Table Text Block] | As of June 30, 2016 and December 31, 2015, restricted cash consisted of the following: June 30, December 31, 2016 2015 (Unaudited) $ $ Securities for bank acceptance bill 9,437,906 11,392,231 Government subsidy deposit 454,852 - Time deposits - 263,973 9,892,758 11,656,204 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounts receivable, net [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | As of June 30, 2016 and December 31, 2015, accounts receivable consisted of the following: June 30, December 31, 2016 2015 (Unaudited) $ $ Accounts receivable 34,346,909 38,211,951 Less: allowance for doubtful debts 2,067,877 2,072,085 32,279,032 36,139,866 |
Prepayments and other receiva37
Prepayments and other receivables (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Prepayments [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | June 30, December 31, 2016 2015 (Unaudited) $ $ Purchase deposits paid 4,435,842 3,752,125 Value-added tax (“VAT”) prepayment 345,049 546,358 Rental deposit 405,957 414,843 Prepaid insurance fee 188,518 206,424 Advances to employee for daily operations 278,536 39,886 Compensation receivable for land occupation - 486,370 Prepaid expenses 556,764 614,898 6,210,666 6,060,904 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventories [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | June 30, December 31, 2016 2015 (Unaudited) $ $ Raw materials 5,398,508 4,320,455 Work in progress 4,683,830 4,568,530 Finished goods 10,130,115 9,994,401 Packing materials 13,183 17,167 Consumables 276,932 317,778 20,502,568 19,218,331 |
Property, plant and equipment39
Property, plant and equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, plant and equipment, net [Abstract] | |
Property, Plant and Equipment [Table Text Block] | June 30, December 31, 2016 2015 (Unaudited) $ $ Cost Construction in progress 1,550,612 1,678,961 Furniture, fixtures and office equipment 3,990,851 3,882,594 Leasehold improvement 5,434,218 4,092,668 Machinery and equipment 31,112,125 29,295,041 Motor vehicles 1,647,036 1,643,173 Buildings 22,771,842 23,046,056 66,506,684 63,638,493 Less: accumulated depreciation 17,937,498 16,174,307 48,569,186 47,464,186 |
Land use rights, net (Tables)
Land use rights, net (Tables) - Land Use Right [Member] | 6 Months Ended |
Jun. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | June 30, December 31, 2016 2015 (Unaudited) $ $ Cost Land located in Huizhou 3,229,227 3,301,923 Land located in Ganzhou 1,259,785 1,288,146 4,489,012 4,590,069 Accumulated amortization (658,150) (627,066) Net 3,830,862 3,963,003 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Land use rights are being amortized annually using the straight-line method over a contract term of 50 $ Remaining 2016 45,635 2017 91,270 2018 91,270 2019 91,270 2020 91,270 thereafter 3,420,147 3,830,862 |
Other assets (Tables)
Other assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | June 30, December 31, 2016 2015 (Unaudited) $ $ Consumer battery license fee 525,000 550,000 Compensation receivable for land occupation 475,662 - 1,000,662 550,000 |
Other payables and accrued li42
Other payables and accrued liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other payables and accrued liabilities [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | June 30, December 31, 2016 2015 (Unaudited) $ $ Accrued expenses 3,827,899 3,816,940 Royalty payable 418,866 461,055 Value-added tax payable 747,734 959,422 Sales deposits received 1,082,071 562,696 Other payables 427,034 492,379 6,503,604 6,292,492 |
Taxation (Tables)
Taxation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Taxation [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the provision for income taxes expenses are: Three months ended Six months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Current 111,867 61,517 274,488 153,634 Deferred 62,446 (42,677) (64,671) (230,050) Total income tax expense (benefit) 174,313 18,840 209,817 (76,416) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation of income tax expense computed at the statutory tax rate applicable to the Company to income tax expense is as follows: Three months ended Six months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Income before tax 2,047,426 1,784,890 1,606,801 1,521,067 Provision for income taxes at applicable income tax rate 512,993 399,114 409,393 312,941 Effect of preferential tax rate (116,208) 37,545 (139,878) 31,250 R&D expenses eligible for super deduction (555,531) (555,607) (555,531) (555,607) Non-deductible expenses 96,716 11,947 114,336 26,901 Change in valuation allowance 236,343 125,841 381,497 108,099 Effective enterprise income tax expense (benefit) 174,313 18,840 209,817 (76,416) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The following represents the tax effect of each major type of temporary difference. June 30 December 31, 2016 2015 (Unaudited) $ $ Tax loss carry-forward 4,081,452 3,382,543 Allowance for doubtful receivables 46,871 47,197 Allowance for inventory obsolescence 128,797 217,733 Difference for sales cut-off 11,381 33,071 Deferred income 117,885 131,992 Property, plant and equipment subsidized by government grant 473,464 490,883 Total gross deferred tax assets 4,859,850 4,303,419 Valuation allowance (3,285,547) (2,759,105) Total net deferred tax assets 1,574,303 1,544,314 |
Short-term loans (Tables)
Short-term loans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Short-term loans [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | June 30, December 31, 2016 2015 (Unaudited) $ $ Short- term bank loans guaranteed and repayable within one year 14,963,306 13,839,341 |
Non-financial institution bor45
Non-financial institution borrowings (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Short-term loans [Abstract] | |
Schedule of Non Financial Institution Borrowing [Table Text Block] | June 30, December 31, 2016 2015 (Unaudited) $ $ Non-financial institution borrowings 4,511,550 - |
Lines of credit (Tables)
Lines of credit (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Lines of credit [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | 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 June 30, 2016 and December 31, 2015: June 30, 2016 (Unaudited) Lender Starting Maturity Line of Unused line $ $ Bank of China 7/13/2015 9/13/2016 13,857,707 2,220,160 Ping An Bank Co., Ltd 12/10/2015 12/9/2016 10,838,430 5,725,094 China Minsheng Banking Corp., LTD. 7/16/2015 7/16/2016 4,423,849 166,542 Industrial Bank CO., LTD. 7/15/2015 7/15/2016 9,290,083 9,290,083 Industrial and Commercial Bank of China 10/1/2015 10/1/2016 7,741,736 4,734,036 Jiang Su Bank Co., Ltd 11/4/2015 (i) 11/3/2016 3,673,987 1,276,003 Hong Kong and Shanghai Banking Corporation 9/1/2015 7/15/2016 8,000,000 8,000,000 Huaxia Bank Co., Ltd 6/1/2015 6/1/2017 5,800,564 5,800,564 Total 63,626,356 37,212,482 (i) Jiang Su Bank Co., Ltd provided a $ 2.3 2.3 35 40 3.67 December 31, 2015 Lender Starting Maturity Line of Unused line $ $ Bank of China 7/13/2015 9/13/2016 13,762,455 4,707,595 Bank of China 7/1/2015 6/30/2016 11,203,276 155,498 Ping An Bank Co., Ltd 12/10/2015 12/9/2016 10,763,931 3,878,818 China Minsheng Banking Corp., LTD. 7/16/2015 7/16/2016 4,393,441 1,916,253 Industrial Bank CO., LTD. 7/15/2015 7/15/2016 9,226,227 7,079,785 China Everbright Bank 6/23/2015 6/22/2016 7,688,523 3,647,289 Industrial and Commercial Bank of China 10/1/2015 10/1/2016 7,688,523 4,613,113 Jiang Su Bank Co., Ltd 11/4/2015 11/3/2016 2,306,557 995,703 Hongkong and Shanghai Banking Corporation Limited 9/1/2015 7/15/2016 8,000,000 8,000,000 Total 75,032,933 34,994,054 |
Long-term loans (Tables)
Long-term loans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Long-term loans [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | June 30, December 31, (Unaudited) $ $ Long-term loans from Bank of China 902,310 1,845,245 Less: current portion of long-term borrowings 902,310 1,845,245 Long- term bank loans, net of current portion - - |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation [Abstract] | |
Schedule of Share-based Compensation, Activity [Table Text Block] | Options Granted to Employees Number of Weighted Remaining $ Outstanding, January 1, 2015 760,286 2.92 7.78 Granted 75,000 4.43 - Exercised (16,933) 2.63 - Forfeited (26,336) 2.63 - Canceled (5,091) 2.63 - Outstanding, December 31, 2015 786,926 3.08 6.90 Exercisable, December 31, 2015 587,407 3.16 6.56 Number of Weighted Remaining $ Outstanding, January 1, 2016 786,926 3.08 6.90 Granted 190,000 2.66 - Outstanding, June 30, 2016 976,926 3.00 7.02 Exercisable, June 30, 2016 623,407 3.22 6.27 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Six months ended 2016 2015 Expected volatility 76.98%-79.55 % 78.57%-89.73 % Risk-free interest rate 1.21%-1.4 % 1.54%-1.71 % Expected term from grant date (in years) 5-6.05 5.0-6.05 Dividend rate 0.00 % 0.00 % |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings per share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per common share for the six months ended June 30, 2016 and 2015, and the three months ended June 30, 2016 and 2015 Three months ended Six months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Numerator: Net income attributable to the Company 2,051,782 1,867,124 1,709,174 1,743,766 Denominator: Weighted-average shares outstanding - Basic 15,101,679 15,094,979 15,101,679 15,091,639 - Dilutive effects of equity incentive awards 1,198 346,597 2,207 377,635 - Diluted 15,102,877 15,441,576 15,103,886 15,469,274 Net income per share Basic 0.14 0.12 0.11 0.12 Diluted 0.14 0.12 0.11 0.11 |
Securities Offering Transacti50
Securities Offering Transaction (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Securities Offering Transaction [Abstract] | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | The fair values of the warrants as of April 17, 2014 were calculated using the Black-Scholes pricing model with the following assumptions: April 17, 2014 Expected volatility 85.76 % Risk-free interest rate 0.9 % Expected term (in years) 3.0 Dividend rate - Fair value $ 2.3 The fair values of the warrants as of June 30, 2016 and December 31, 2015 were calculated using the Black-Scholes pricing model with the following assumptions: June 30, 2016 December 31,2015 Expected volatility 72.31 % 79.85 % Risk-free interest rate 0.41 0.56 % Expected term (in years) 0.80 1.30 Dividend rate - - Fair value $ 0.03 $ 0.81 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and contingencies [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Minimum future commitments under these agreements as of June 30, 2016 are as follows: $ Remaining 2016 864,915 2017 800,397 2018 491,296 2019 236,562 2,393,170 |
Segment information (Tables)
Segment information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment information [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 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: Three months ended Six months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Net sales Ni-MH Batteries 11,972,810 15,775,426 24,829,135 30,534,896 Lithium Batteries 23,666,887 22,066,302 38,981,832 38,886,930 New Materials 1,092,613 794,073 2,018,398 1,351,623 Total 36,732,310 38,635,801 65,829,365 70,773,449 Cost of Sales Ni-MH Batteries 8,869,549 11,850,483 18,475,355 23,565,936 Lithium Batteries 18,857,605 17,307,091 31,364,936 31,640,483 New Materials 1,361,485 914,467 2,468,364 1,447,556 Total 29,088,639 30,072,041 52,308,655 56,653,975 Gross Profit Ni-MH Batteries 3,103,261 3,924,943 6,353,780 6,968,960 Lithium Batteries 4,809,282 4,759,211 7,616,896 7,246,447 New Materials (268,872) (120,394) (449,966) (95,933) Total 7,643,671 8,563,760 13,520,710 14,119,474 June 30, 2016 December 31,2015 (Unaudited) $ $ Total Assets Lithium Batteries 87,157,260 82,006,317 Ni-MH Batteries 36,911,805 41,590,201 New Materials 10,178,623 10,607,966 Total 134,247,688 134,204,484 |
Revenue from External Customers by Geographic Areas [Table Text Block] | 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: Three months ended Six months ended 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Net sales China Mainland 28,855,932 19,290,058 37,385,011 33,315,390 Asia, others 6,295,056 11,637,753 18,275,423 22,079,640 Europe 208,548 5,749,314 6,524,327 11,565,500 North America 1,285,688 1,783,947 2,919,834 3,340,558 South America 14,074 147,644 478,971 301,573 Africa 25,968 - 50,001 103,807 Others 47,044 27,085 195,798 66,981 36,732,310 38,635,801 65,829,365 70,773,449 June 30, 2016 December 31, 2015 (Unaudited) $ $ Accounts receivable China Mainland 22,392,393 23,832,388 Asia, others 7,293,500 6,443,781 Europe 1,879,847 5,324,389 North America 675,645 433,458 South America 20,778 - Africa - 55,240 Others 16,869 50,610 32,279,032 36,139,866 |
Related party balance and tra53
Related party balance and transaction (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Outstandings [Table Text Block] | The outstanding amounts of the related party as of June 30, 2016 (unaudited) as follow: $ Accounts receivable - related party(I) 2,152,054 Amount due to Yipeng(II) 761,895 (I) The balance of accounts receivable - related party represented the balance of accounts receivable with Yipeng. (II) The balance of amount due to a related company mainly represented the sales security deposit collected from Yipeng, amounting to $ 755,793 550,000 |
Schedule of Related Party Transactions [Table Text Block] | The details of the related party transactions were as follows: Period from May 2,2016 to June 30,2016 (Unaudited) $ Sales-Yipeng(III) 1,264,934 (III) The transaction amount represented the total sales of Lithium battery with Yipeng. |
Organization and basis of pre54
Organization and basis of presentation (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Hong Kong Highpower Technology Co., Ltd ("HKHTC") [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Date of incorporation | Jul. 4, 2003 |
Attributable equity interest held | 100.00% |
Shenzhen Highpower Technology Co., Ltd ("SZ Highpower") [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Date of incorporation | Oct. 8, 2002 |
Attributable equity interest held | 100.00% |
Springpower Technology (Shenzhen) Co., Ltd ("SZ Springpower") [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Date of incorporation | Jun. 4, 2008 |
Attributable equity interest held | 100.00% |
Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Date of incorporation | Sep. 21, 2010 |
Attributable equity interest held | 70.00% |
Icon Energy System Co., Ltd. ("ICON") [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Date of incorporation | Feb. 23, 2011 |
Attributable equity interest held | 100.00% |
Huizhou Highpower Technology Co., Ltd ("HZ HTC") [Member] | |
Subsidiary or Equity Method Investee [Line Items] | |
Date of incorporation | Mar. 8, 2012 |
Attributable equity interest held | 100.00% |
Organization and basis of pre55
Organization and basis of presentation (Details Textual) | 1 Months Ended | ||||||
Apr. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 13, 2014USD ($) | Nov. 13, 2014CNY (ÂĄ) | May 15, 2013USD ($) | May 15, 2013CNY (ÂĄ) | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Additional Paid in Capital | $ | $ 11,433,948 | $ 11,227,979 | |||||
Stock Issued During Period, Shares, New Issues | shares | 1,000,000 | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 500,000 | ||||||
Shares Issued, Price Per Share | $ / shares | $ 5.05 | ||||||
Proceeds From Sale Of Common Stock And Warrants, Gross | $ | $ 5,050,000 | ||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | shares | 0.50 | ||||||
Proceeds from Issuance of Common Stock | $ | $ 4,633,164 | ||||||
Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Parent | 70.00% | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30.00% | 30.00% | |||||
Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Minimum [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Additional Paid in Capital | $ 4,898,119 | ÂĄ 30,000,000 | $ 2,381,293 | ÂĄ 15,000,000 | |||
Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Maximum [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Additional Paid in Capital | $ 6,530,825 | 40,000,000 | $ 4,807,847 | ÂĄ 30,000,000 | |||
Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | Shenzhen Highpower Technology Company Limited [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Additional Paid in Capital | ÂĄ | ÂĄ 10,000,000 |
Summary of significant accoun56
Summary of significant accounting policies (Details) | 6 Months Ended |
Jun. 30, 2016 | |
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] | |
Property, Plant and Equipment [Line Items] | |
Description Of Property Plant And Equipment Useful Life | Shorter of the remaining lease terms or estimated useful lives |
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% |
Summary of significant accoun57
Summary of significant accounting policies (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Apr. 01, 2016USD ($) | Apr. 01, 2016CNY (ÂĄ) | |
Significant Accounting Policies [Line Items] | |||||||
Deferred Revenue, Current | $ 785,899 | $ 785,899 | $ 879,944 | ||||
Deferred Revenue, Revenue Recognized | $ 938,856 | $ 112,188 | $ 945,525 | $ 221,483 | |||
Yipeng Energy Technology Co. Ltd [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | 5.00% | |||||
Cost Method Investments | $ 751,925 | ÂĄ 5,000,000 | |||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Concentration Risk, Percentage | 11.30% |
Restricted cash (Details)
Restricted cash (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 9,892,758 | $ 11,656,204 |
Securities for Bank Acceptance Bill [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 9,437,906 | 11,392,231 |
Time Deposits [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 0 | 263,973 |
Government Subsidy Deposit [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 454,852 | $ 0 |
Accounts receivable, net (Detai
Accounts receivable, net (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts receivable | $ 34,346,909 | $ 38,211,951 |
Less: allowance for doubtful debts | 2,067,877 | 2,072,085 |
Accounts receivable, net | $ 32,279,032 | $ 36,139,866 |
Prepayments and other receiva60
Prepayments and other receivables (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Purchase deposits paid | $ 4,435,842 | $ 3,752,125 |
Value-added tax (“VAT”) prepayment | 345,049 | 546,358 |
Rental deposit | 405,957 | 414,843 |
Prepaid insurance fee | 188,518 | 206,424 |
Advances to employee for daily operations | 278,536 | 39,886 |
Compensation receivable for land occupation | 0 | 486,370 |
Prepaid expenses | 556,764 | 614,898 |
Prepayments and other receivables Total | $ 6,210,666 | $ 6,060,904 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Raw materials | $ 5,398,508 | $ 4,320,455 |
Work in progress | 4,683,830 | 4,568,530 |
Finished goods | 10,130,115 | 9,994,401 |
Packing materials | 13,183 | 17,167 |
Consumables | 276,932 | 317,778 |
Inventories | $ 20,502,568 | $ 19,218,331 |
Property, plant and equipment62
Property, plant and equipment, net (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Cost | ||
Construction in progress | $ 1,550,612 | $ 1,678,961 |
Furniture, fixtures and office equipment | 3,990,851 | 3,882,594 |
Leasehold improvement | 5,434,218 | 4,092,668 |
Machinery and equipment | 31,112,125 | 29,295,041 |
Motor vehicles | 1,647,036 | 1,643,173 |
Buildings | 22,771,842 | 23,046,056 |
Property, plant and equipment, cost | 66,506,684 | 63,638,493 |
Less: accumulated depreciation | 17,937,498 | 16,174,307 |
Property, plant and equipment, net | $ 48,569,186 | $ 47,464,186 |
Property, plant and equipment63
Property, plant and equipment, net (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation | $ 1,194,584 | $ 1,252,756 | $ 2,415,561 | $ 2,462,008 | |
Property, Plant and Equipment, Transfers and Changes | $ 26,988 | $ 2,547,545 |
Land use rights, net (Details)
Land use rights, net (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Net | $ 3,830,862 | $ 3,963,003 |
Land Use Right [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,489,012 | 4,590,069 |
Accumulated amortization | (658,150) | (627,066) |
Net | 3,830,862 | 3,963,003 |
Land Use Right, Land Located in Huizhou [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 3,229,227 | 3,301,923 |
Land Use Right Land, Located in Ganzhou [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 1,259,785 | $ 1,288,146 |
Land use rights, net (Details 1
Land use rights, net (Details 1) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Estimated amortization for the coming years is as follows | ||
Remaining 2,016 | $ 45,635 | |
2,017 | 91,270 | |
2,018 | 91,270 | |
2,019 | 91,270 | |
2,020 | 91,270 | |
Thereafter | 3,420,147 | |
Net | $ 3,830,862 | $ 3,963,003 |
Land use rights, net (Details T
Land use rights, net (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)m² | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)m² | Jun. 30, 2015USD ($) | |
Land Use Right [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 50 years | |||
Amortization of Intangible Assets | $ | $ 22,733 | $ 24,397 | $ 45,635 | $ 48,688 |
Land Use Right, Land Located in Huizhou [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Area of Land | 126,605 | 126,605 | ||
Rights Expiry Date | May 23, 2057 | |||
Land Use Right Land, Located in Ganzhou [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Area of Land | 58,669 | 58,669 | ||
Rights Expiry Date | Jan. 4, 2062 |
Other assets (Details)
Other assets (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 3,830,862 | $ 3,963,003 |
Compensation receivable for land occupation | 475,662 | 0 |
Other Assets, Noncurrent | 1,000,662 | 550,000 |
Consumer Battery License Fee [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 525,000 | $ 550,000 |
Other assets (Details Textual)
Other assets (Details Textual) - Consumer Battery License Fee [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||
Amortization of Intangible Assets | $ 12,500 | $ 12,500 | $ 25,000 | $ 25,000 |
Finite-Lived Intangible Assets, Gross | $ 1,000,000 | $ 1,000,000 |
Long-term investment (Details T
Long-term investment (Details Textual) - Yipeng Energy Technology Co. Ltd [Member] | Apr. 01, 2016USD ($) | Apr. 01, 2016CNY (ÂĄ) |
Schedule of Cost-method Investments [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | 5.00% |
Cost Method Investments | $ 751,925 | ÂĄ 5,000,000 |
Other payables and accrued li70
Other payables and accrued liabilities (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Other payables and accrued liabilities [Line Items] | ||
Accrued expenses | $ 3,827,899 | $ 3,816,940 |
Royalty payable | 418,866 | 461,055 |
Value-added tax payable | 747,734 | 959,422 |
Sales deposits received | 1,082,071 | 562,696 |
Other payables | 427,034 | 492,379 |
Other payables and accrued liabilities | $ 6,503,604 | $ 6,292,492 |
Taxation (Details)
Taxation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule Of Taxation [Line Items] | ||||
Current | $ 111,867 | $ 61,517 | $ 274,488 | $ 153,634 |
Deferred | 62,446 | (42,677) | (64,671) | (230,050) |
Total income tax expense (benefit) | $ 174,313 | $ 18,840 | $ 209,817 | $ (76,416) |
Taxation (Details 1)
Taxation (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule Of Taxation [Line Items] | ||||
Income before tax | $ 2,047,426 | $ 1,784,890 | $ 1,606,801 | $ 1,521,067 |
Provision for income taxes at applicable income tax rate | 512,993 | 399,114 | 409,393 | 312,941 |
Effect of preferential tax rate | (116,208) | 37,545 | (139,878) | 31,250 |
R&D expenses eligible for super deduction | (555,531) | (555,607) | (555,531) | (555,607) |
Non-deductible expenses | 96,716 | 11,947 | 114,336 | 26,901 |
Change in valuation allowance | 236,343 | 125,841 | 381,497 | 108,099 |
Effective enterprise income tax expense (benefit) | $ 174,313 | $ 18,840 | $ 209,817 | $ (76,416) |
Taxation (Details 2)
Taxation (Details 2) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule Of Taxation [Line Items] | ||
Tax loss carry-forward | $ 4,081,452 | $ 3,382,543 |
Allowance for doubtful receivables | 46,871 | 47,197 |
Allowance for inventory obsolescence | 128,797 | 217,733 |
Difference for sales cut-off | 11,381 | 33,071 |
Deferred income | 117,885 | 131,992 |
Property, plant and equipment subsidized by government grant | 473,464 | 490,883 |
Total gross deferred tax assets | 4,859,850 | 4,303,419 |
Valuation allowance | (3,285,547) | (2,759,105) |
Total net deferred tax assets | $ 1,574,303 | $ 1,544,314 |
Taxation (Details Textual)
Taxation (Details Textual) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule Of Taxation [Line Items] | ||
Value Added Tax Percentage Of Revenue | 17.00% | |
HONG KONG | ||
Schedule Of Taxation [Line Items] | ||
Corporate Income Tax Percentage | 16.50% | |
CHINA | ||
Schedule Of Taxation [Line Items] | ||
Income Tax Exemption Percentage | 15.00% | 15.00% |
Income Tax Exemption Percentage After Expiration | 25.00% | |
Maximum [Member] | ||
Schedule Of Taxation [Line Items] | ||
Graduated Tax Rate Percentage | 35.00% | |
Minimum [Member] | ||
Schedule Of Taxation [Line Items] | ||
Graduated Tax Rate Percentage | 15.00% |
Notes payable (Details Textual)
Notes payable (Details Textual) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Short-term Bank Loans and Notes Payable | $ 29,003,988 | $ 30,379,170 |
Other Short-term Borrowings | $ 0 | $ 110,996 |
Short-term loans (Details)
Short-term loans (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Short- term bank loans guaranteed and repayable within one year | $ 14,963,306 | $ 13,839,341 |
Short-term loans (Details Textu
Short-term loans (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Short-term Debt [Line Items] | |||||
Pledged Assets Not Separately Reported Property Plant And Equipment | $ 12,129,450 | $ 12,129,450 | $ 12,419,622 | ||
Interest Expense, Short-term Borrowings, Total | $ 215,485 | $ 218,142 | $ 422,593 | $ 419,156 | |
Maximum [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.06% | 6.06% | |||
Minimum [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | 4.35% | |||
Short-term Debt [Member] | |||||
Short-term Debt [Line Items] | |||||
Guarantor Obligations, Liquidation Proceeds, Monetary Amount | $ 3,830,862 | $ 3,963,003 |
Non-financial institution bor78
Non-financial institution borrowings (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Non-financial institution borrowings | $ 4,511,550 | $ 0 |
Non-financial institution bor79
Non-financial institution borrowings (Details Textual) - Other Debt Obligations [Member] | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | |
Debt Instrument, Interest Rate, Effective Percentage | 5.66% | 5.66% |
Interest Expense, Debt | $ 32,905 | $ 32,905 |
Lines of credit (Details)
Lines of credit (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | ||
Line of Credit Facility [Line Items] | |||
Line of credit | $ 63,626,356 | $ 75,032,933 | |
Unused line of credit | $ 37,212,482 | $ 34,994,054 | |
Bank of China [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | Jul. 13, 2015 | Jul. 13, 2015 | |
Maturity date | Sep. 13, 2016 | Sep. 13, 2016 | |
Line of credit | $ 13,857,707 | $ 13,762,455 | |
Unused line of credit | $ 2,220,160 | $ 4,707,595 | |
Bank of China [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | Jul. 1, 2015 | ||
Maturity date | Jun. 30, 2016 | ||
Line of credit | $ 11,203,276 | ||
Unused line of credit | $ 155,498 | ||
Ping An Bank Co., Ltd [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | Dec. 10, 2015 | Dec. 10, 2015 | |
Maturity date | Dec. 9, 2016 | Dec. 9, 2016 | |
Line of credit | $ 10,838,430 | $ 10,763,931 | |
Unused line of credit | $ 5,725,094 | $ 3,878,818 | |
China Minsheng Banking Corp., LTD [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | Jul. 16, 2015 | Jul. 16, 2015 | |
Maturity date | Jul. 16, 2016 | Jul. 16, 2016 | |
Line of credit | $ 4,423,849 | $ 4,393,441 | |
Unused line of credit | $ 166,542 | $ 1,916,253 | |
Industrial Bank Co., LTD [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | Jul. 15, 2015 | Jul. 15, 2015 | |
Maturity date | Jul. 15, 2016 | Jul. 15, 2016 | |
Line of credit | $ 9,290,083 | $ 9,226,227 | |
Unused line of credit | $ 9,290,083 | $ 7,079,785 | |
China Everbright Bank [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | Jun. 23, 2015 | ||
Maturity date | Jun. 22, 2016 | ||
Line of credit | $ 7,688,523 | ||
Unused line of credit | $ 3,647,289 | ||
Industrial and Commercial Bank of China [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | Oct. 1, 2015 | Oct. 1, 2015 | |
Maturity date | Oct. 1, 2016 | Oct. 1, 2016 | |
Line of credit | $ 7,741,736 | $ 7,688,523 | |
Unused line of credit | $ 4,734,036 | $ 4,613,113 | |
Jiang Su Bank Co., LTD [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | Nov. 4, 2015 | [1] | Nov. 4, 2015 |
Maturity date | Nov. 3, 2016 | Nov. 3, 2016 | |
Line of credit | $ 3,673,987 | $ 2,306,557 | |
Unused line of credit | $ 1,276,003 | $ 995,703 | |
Hongkong and Shanghai Banking Corporation Limited [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | Sep. 1, 2015 | Sep. 1, 2015 | |
Maturity date | Jul. 15, 2016 | Jul. 15, 2016 | |
Line of credit | $ 8,000,000 | $ 8,000,000 | |
Unused line of credit | $ 8,000,000 | $ 8,000,000 | |
Huaxia Bank Co Ltd [Member] | |||
Line of Credit Facility [Line Items] | |||
Starting date | Jun. 1, 2015 | ||
Maturity date | Jun. 1, 2017 | ||
Line of credit | $ 5,800,564 | ||
Unused line of credit | $ 5,800,564 | ||
[1] | Jiang Su Bank Co., Ltd provided a $2.3M line of credit which was without secure deposit on November 4, 2015. As of December 31, 2015, Jiangsu Bank did not request for secure deposit and the line of credit was $2.3M. As of June 30, 2016, Jiangsu bank required 35% or 40% of deposit. The line of credit was changed accordingly to $3.67M. |
Lines of credit (Details Textua
Lines of credit (Details Textual) - USD ($) $ in Thousands | Nov. 04, 2014 | Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Percentage of Deposit Required of Disclosed Line of Credit | 35.00% | |||
Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Percentage of Deposit Required of Disclosed Line of Credit | 40.00% | |||
Jiang Su Bank Co Ltd [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Proceeds from Lines of Credit | $ 2,300 | $ 2,300 | ||
Line of Credit, Current | $ 3,670 | $ 3,670 |
Long-term loans (Details)
Long-term loans (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long term loans from Bank of China | $ 902,310 | $ 1,845,245 |
Less: current portion of long-term borrowings | 902,310 | 1,845,245 |
Long- term bank loans, net of current portion | $ 0 | $ 0 |
Long-term loans (Details Textua
Long-term loans (Details Textual) - Bank Of China One [Member] ÂĄ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2012 | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2012 | Jan. 13, 2012USD ($) | Jan. 13, 2012CNY (ÂĄ) | |
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 8,198,065 | ÂĄ 50 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.39% | 5.39% | ||||||
Debt Instrument Basis Multiple | 110.00% | 110.00% | ||||||
Interest Expense, Long-term Debt, Total | $ 18,402 | $ 57,334 | $ 44,038 | $ 124,962 | ||||
Debt Instrument Periodic Payment Principal Percent Year One | 2.00% | |||||||
Debt Instrument Periodic Payment Principal Percent Thereafter | 6.00% |
Share-based Compensation (Detai
Share-based Compensation (Details) - Stock Options Related to Employees [Member] - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | |||||
Outstanding, beginning balance | 786,926 | 760,286 | 760,286 | ||
Granted | 75,000 | 190,000 | 75,000 | 75,000 | |
Exercised | (16,933) | (16,933) | |||
Forfeited | (8,564) | (26,336) | |||
Canceled | (5,091) | ||||
Outstanding, ending balance | 976,926 | 786,926 | 760,286 | ||
Exercisable, ending balance | 623,407 | 587,407 | |||
Weighted Average Exercise Price | |||||
Outstanding, beginning balance | $ 3.08 | $ 2.92 | $ 2.92 | ||
Granted | 2.66 | 4.43 | |||
Exercised | 2.63 | ||||
Forfeited | 2.63 | ||||
Canceled | 2.63 | ||||
Outstanding, ending balance | 3 | 3.08 | $ 2.92 | ||
Exercisable, ending balance | $ 3.22 | $ 3.16 | |||
Remaining Contractual Term in Years | |||||
Outstanding | 7 years 7 days | 6 years 10 months 24 days | 7 years 9 months 11 days | ||
Exercisable, ending balance | 6 years 3 months 7 days | 6 years 6 months 22 days |
Share-based Compensation (Det85
Share-based Compensation (Details 1) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value Assumptions, Expected Volatility Rate, Minimum | 76.98% | 78.57% |
Fair Value Assumptions, Expected Volatility Rate, Maximum | 79.55% | 89.73% |
Fair Value Assumptions, Risk Free Interest Rate, Minimum | 1.21% | 1.54% |
Fair Value Assumptions, Risk Free Interest Rate, Maximum | 1.40% | 1.71% |
Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% |
Maximum [Member] | ||
Fair Value Assumptions, Expected Term | 6 years 18 days | 6 years 18 days |
Minimum [Member] | ||
Fair Value Assumptions, Expected Term | 5 years | 5 years |
Share-based Compensation (Det86
Share-based Compensation (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 388,479 | $ 388,479 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months 25 days | ||||
Share-based Compensation | 95,259 | $ 290,943 | $ 205,969 | $ 412,304 | |
Vesting Immediately [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 3,670 | ||||
Stock Options Related to Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 1,950 | $ 1,950 | $ 178,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 75,000 | 190,000 | 75,000 | 75,000 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 2.66 | $ 4.43 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 8,564 | 26,336 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 16,933 | 16,933 | |||
2008 Omnibus Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 393,141 | 393,141 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | ||||
Net income attributable to the Company | $ 2,051,782 | $ 1,867,124 | $ 1,709,174 | $ 1,743,766 |
Weighted-average shares outstanding | ||||
- Basic | 15,101,679 | 15,094,979 | 15,101,679 | 15,091,639 |
- Dilutive effects of equity incentive awards | 1,198 | 346,597 | 2,207 | 377,635 |
- Diluted | 15,102,877 | 15,441,576 | 15,103,886 | 15,469,274 |
Net income per share | ||||
Basic | $ 0.14 | $ 0.12 | $ 0.11 | $ 0.12 |
Diluted | $ 0.14 | $ 0.12 | $ 0.11 | $ 0.11 |
Securities Offering Transacti88
Securities Offering Transaction (Details) - Investor Warrants [Member] - $ / shares | Apr. 17, 2014 | Jun. 30, 2016 | Dec. 31, 2015 |
Expected volatility | 85.76% | 72.31% | 79.85% |
Risk-free interest rate | 0.90% | 0.41% | 0.56% |
Expected term (in years) | 3 years | 9 months 18 days | 1 year 3 months 18 days |
Dividend rate | 0.00% | 0.00% | 0.00% |
Fair value | $ 2.3 | $ 0.03 | $ 0.81 |
Securities Offering Transacti89
Securities Offering Transaction (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Class of Stock [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 1,000,000 | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 500,000 | |||||
Shares Issued, Price Per Share | $ 5.05 | |||||
Proceeds From Sale Of Common Stock And Warrants, Gross | $ 5,050,000 | |||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.50 | |||||
Proceeds from Issuance of Common Stock | $ 4,633,164 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 6.33 | |||||
Warrants and Rights Outstanding | $ 1,173,952 | $ 14,003 | $ 14,003 | $ 140,549 | ||
Stock Issued During Period, Value, New Issues | $ 3,459,212 | |||||
Gain on change of fair value of warrant liability | $ 7,077 | $ 84,833 | $ 126,546 | $ 431,132 | ||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | 40,000 | |||||
Issuance of Stock and Warrants for Services or Claims | $ 94,982 | |||||
Banker Warrants [Member] | ||||||
Class of Stock [Line Items] | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 6.33 |
Defined contribution plan (Deta
Defined contribution plan (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Contribution Plan, Cost Recognized | $ 419,105 | $ 414,201 | $ 754,663 | $ 826,889 |
Non-controlling interest (Detai
Non-controlling interest (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Subsidiary or Equity Method Investee [Line Items] | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 527,601 | $ 527,601 | $ 853,483 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | (178,669) | $ (101,074) | (312,190) | $ (146,283) | |
Ganzhou Highpower Technology Company Limited [Member] | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 527,601 | 527,601 | $ 853,483 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 178,669 | $ 101,074 | $ 312,190 | $ 146,283 | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30.00% | 30.00% | 30.00% |
Commitments and contingencies92
Commitments and contingencies (Details) | Jun. 30, 2016USD ($) |
Remaining 2,016 | $ 864,915 |
2,017 | 800,397 |
2,018 | 491,296 |
2,019 | 236,562 |
Total minimum future commitments | $ 2,393,170 |
Commitments and contingencies93
Commitments and contingencies (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016 | Feb. 04, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Apr. 01, 2016 | Jan. 14, 2016 | |
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Operating Leases, Rent Expense | $ 394,711 | $ 415,254 | $ 800,284 | $ 819,448 | ||||
Loss Contingency Damages, Shares | 150,000 | |||||||
Loss Contingency, Actions Taken by Defendant | return of the 200,000 warrants and 150,000 shares of Highpower stock previously issued to FirsTrust, plus interest, attorneys fees and costs and expenses. | |||||||
Yipeng Energy Technology Co. Ltd [Member] | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | |||||||
Equity Purchase Agreement [Member] | Yipeng Energy Technology Co. Ltd [Member] | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Future Additional Shares to Be Purchased | 1.00% | 1.00% | 1.00% | |||||
Estimated Percentage Of Equity Interest To Be Acquired | 51.00% | 51.00% | 51.00% | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | 50.00% | 50.00% | |||||
Value Of Future Additional Shares To Be Purchased | $ 400,000 | $ 400,000 | $ 400,000 | |||||
Equity Purchase Agreement [Member] | Yipeng Energy Technology Co. Ltd [Member] | August 10, 2016 [Member] | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 5.00% | 5.00% | 5.00% | |||||
Payments to Acquire Equity Method Investments | $ 2,300,000 | |||||||
Noncash or Part Noncash Acquisition, Investments Acquired | $ 6,800,000 | |||||||
Equity Purchase Agreement [Member] | Yipeng Energy Technology Co. Ltd [Member] | August 10, 2016 [Member] | Equipment [Member] | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 30.40% | 30.40% | 30.40% | |||||
Equity Purchase Agreement [Member] | Yipeng Energy Technology Co. Ltd [Member] | Prior to November 5, 2016 [Member] | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 14.60% | 14.60% | 14.60% | |||||
Payments to Acquire Equity Method Investments | $ 2,900,000 | |||||||
Noncash or Part Noncash Acquisition, Investments Acquired | $ 5,300,000 | |||||||
Minimum [Member] | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Lease Expiration Year | 2,016 | |||||||
Maximum [Member] | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Lease Expiration Year | 2,019 |
Segment information (Details)
Segment information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 36,732,310 | $ 38,635,801 | $ 65,829,365 | $ 70,773,449 |
Cost of Sales | 29,088,639 | 30,072,041 | 52,308,655 | 56,653,975 |
Gross profit | 7,643,671 | 8,563,760 | 13,520,710 | 14,119,474 |
Lithium Batteries [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 23,666,887 | 22,066,302 | 38,981,832 | 38,886,930 |
Cost of Sales | 18,857,605 | 17,307,091 | 31,364,936 | 31,640,483 |
Gross profit | 4,809,282 | 4,759,211 | 7,616,896 | 7,246,447 |
Ni-MH Batteries [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 11,972,810 | 15,775,426 | 24,829,135 | 30,534,896 |
Cost of Sales | 8,869,549 | 11,850,483 | 18,475,355 | 23,565,936 |
Gross profit | 3,103,261 | 3,924,943 | 6,353,780 | 6,968,960 |
New Materials [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,092,613 | 794,073 | 2,018,398 | 1,351,623 |
Cost of Sales | 1,361,485 | 914,467 | 2,468,364 | 1,447,556 |
Gross profit | $ (268,872) | $ (120,394) | $ (449,966) | $ (95,933) |
Segment information (Details 1)
Segment information (Details 1) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 134,247,688 | $ 134,204,484 |
Lithium Batteries [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 87,157,260 | 82,006,317 |
Ni-MH Batteries [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 36,911,805 | 41,590,201 |
New Materials [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 10,178,623 | $ 10,607,966 |
Segment information (Details 2)
Segment information (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 36,732,310 | $ 38,635,801 | $ 65,829,365 | $ 70,773,449 |
China Mainland [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 28,855,932 | 19,290,058 | 37,385,011 | 33,315,390 |
Asia, others [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 6,295,056 | 11,637,753 | 18,275,423 | 22,079,640 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 208,548 | 5,749,314 | 6,524,327 | 11,565,500 |
North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 1,285,688 | 1,783,947 | 2,919,834 | 3,340,558 |
South America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 14,074 | 147,644 | 478,971 | 301,573 |
Africa [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 25,968 | 0 | 50,001 | 103,807 |
Others [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 47,044 | $ 27,085 | $ 195,798 | $ 66,981 |
Segment information (Details 3)
Segment information (Details 3) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | $ 32,279,032 | $ 36,139,866 |
China Mainland [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 22,392,393 | 23,832,388 |
Asia, others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 7,293,500 | 6,443,781 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 1,879,847 | 5,324,389 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 675,645 | 433,458 |
South America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 20,778 | 0 |
Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 0 | 55,240 |
Others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | $ 16,869 | $ 50,610 |
Related party balance and tra98
Related party balance and transaction (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | |
Accounts receivable - related party | $ 2,152,054 | [1] | $ 0 |
Amount due to Yipeng | $ 761,895 | [2] | $ 0 |
[1] | The balance of accounts receivable - related party represented the balance of accounts receivable with Yipeng. | ||
[2] | The balance of amount due to a related company mainly represented the sales security deposit collected from Yipeng, amounting to $755,793, which would be refund to Yipeng once the sales of battery cell since January 1, 2016 reached 550,000 PCS. And the remaining balance represented the accounts payable with Yipeng. |
Related party balance and tra99
Related party balance and transaction (Details1) | 2 Months Ended | |
Jun. 30, 2016USD ($) | ||
Sales-Yipeng | $ 1,264,934 | [1] |
[1] | The transaction amount represented the total sales of Lithium battery with Yipeng. |
Related party balance and tr100
Related party balance and transaction (Details Textual) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Due to Related Parties, Current | $ 761,895 | [1] | $ 0 |
Yipeng Energy Technology Co. Ltd [Member] | |||
Number of Battery Cell | 550,000 | ||
Due to Related Parties, Current | $ 755,793 | ||
[1] | The balance of amount due to a related company mainly represented the sales security deposit collected from Yipeng, amounting to $755,793, which would be refund to Yipeng once the sales of battery cell since January 1, 2016 reached 550,000 PCS. And the remaining balance represented the accounts payable with Yipeng. |
Subsequent Event (Details Textu
Subsequent Event (Details Textual) | Aug. 10, 2016 |
Subsequent Event [Member] | Yipeng Energy Technology Co. Ltd [Member] | |
Subsequent Event [Line Items] | |
Equity Method Investment, Ownership Percentage | 35.40% |