Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 10, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | 15,293,415 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash | $ 20,036,278 | $ 9,324,393 |
Restricted cash | 14,021,382 | 11,213,640 |
Accounts receivable, net | 39,324,098 | 46,280,769 |
Amount due from Yipeng | 7,420,500 | 7,517,250 |
Notes receivable | 868,427 | 1,093,730 |
Prepayments and other receivables | 7,536,315 | 6,899,872 |
Inventories | 26,013,323 | 22,207,333 |
Total Current Assets | 115,220,323 | 104,536,987 |
Property, plant and equipment, net | 44,751,137 | 43,504,991 |
Land use right, net | 3,631,897 | 3,622,435 |
Other assets | 487,500 | 500,000 |
Deferred tax assets | 1,366,041 | 1,477,761 |
Long-term investment | 9,919,428 | 9,689,576 |
TOTAL ASSETS | 175,376,326 | 163,331,750 |
Current Liabilities: | ||
Accounts payable | 44,170,801 | 49,463,901 |
Deferred income | 884,134 | 761,491 |
Short-term loans | 20,462,659 | 18,776,080 |
Non-financial institution borrowings | 10,158,767 | 3,741,115 |
Notes payable | 38,291,121 | 30,658,000 |
Amount due to Yipeng | 1,728,203 | 1,522,313 |
Other payables and accrued liabilities | 9,267,866 | 11,148,556 |
Income taxes payable | 2,310,168 | 1,963,298 |
Total Current Liabilities | 127,273,719 | 118,034,754 |
Warrant Liability | 31,811 | 259 |
TOTAL LIABILITIES | 127,305,530 | 118,035,013 |
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, 15,176,252 shares issued and outstanding at March 31, 2017 and 15,114,991 shares issued and outstanding at December 31, 2016) | 1,517 | 1,511 |
Additional paid-in capital | 11,766,446 | 11,580,934 |
Statutory and other reserves | 4,992,463 | 4,992,463 |
Retained earnings | 31,801,717 | 29,266,068 |
Accumulated other comprehensive loss | (900,241) | (873,582) |
Total equity attributable to the stockholders of Highpower International Inc. | 47,661,902 | 44,967,394 |
Non-controlling interest | 408,894 | 329,343 |
TOTAL EQUITY | 48,070,796 | 45,296,737 |
TOTAL LIABILITIES AND EQUITY | $ 175,376,326 | $ 163,331,750 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
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 | 15,176,252 | 15,114,991 |
Common Stock, shares outstanding | 15,176,252 | 15,114,991 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales | $ 41,866,848 | $ 29,097,055 |
Cost of sales | (31,932,014) | (23,220,016) |
Gross profit | 9,934,834 | 5,877,039 |
Research and development expenses | (1,813,930) | (1,622,883) |
Selling and distribution expenses | (1,638,313) | (1,535,036) |
General and administrative expenses | (3,058,562) | (3,069,714) |
Foreign currency transaction loss | (313,878) | (90,436) |
Total operating expenses | (6,824,683) | (6,318,069) |
Income (loss) from operations | 3,110,151 | (441,030) |
Changes in fair value of warrant liability | (31,552) | 119,469 |
Other income | 578,093 | 155,928 |
Equity in earnings of investee | 146,932 | 0 |
Interest expenses | (603,317) | (274,992) |
Income (loss) before taxes | 3,200,307 | (440,625) |
Income taxes expenses | (587,765) | (35,504) |
Net income (loss) | 2,612,542 | (476,129) |
Less: net income (loss) attributable to non-controlling interest | 76,893 | (133,521) |
Net income (loss) attributable to the Company | 2,535,649 | (342,608) |
Comprehensive income (loss) | ||
Net income (loss) | 2,612,542 | (476,129) |
Foreign currency translation (loss) gain | (24,001) | 250,146 |
Comprehensive income (loss) | 2,588,541 | (225,983) |
Less: comprehensive income (loss) attributable to non-controlling interest | 79,551 | (128,822) |
Comprehensive income (loss) attributable to the Company | $ 2,508,990 | $ (97,161) |
Earnings (loss) per share of common stock attributable to the Company | ||
- Basic | $ 0.17 | $ (0.02) |
- Diluted | $ 0.17 | $ (0.02) |
Weighted average number of common stock outstanding | ||
- Basic | 15,119,693 | 15,101,679 |
- Diluted | 15,299,029 | 15,101,679 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net income (loss) | $ 2,612,542 | $ (476,129) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,274,334 | 1,256,379 |
Allowance for doubtful accounts | 5,015 | 0 |
Loss on disposal of property, plant and equipment | 3,262 | 52,218 |
Deferred income tax expense | 124,548 | 127,117 |
Equity in earnings of investee | (146,932) | 0 |
Share based compensation | 24,401 | 110,710 |
Changes in fair value of warrant liability | 31,552 | (119,469) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 7,314,824 | 6,287,966 |
Notes receivable | 235,222 | (25,833) |
Prepayments and other receivables | (485,520) | (662,473) |
Amount due from Yipeng | 161,693 | 0 |
Amount due to Yipeng | 193,240 | 0 |
Inventories | (3,623,242) | (566,489) |
Accounts payable | (5,111,874) | (2,600,952) |
Deferred income | 116,359 | 0 |
Other payables and accrued liabilities | (1,977,117) | 544,018 |
Income taxes payable | 330,735 | 89,225 |
Net cash flows provided by operating activities | 1,083,042 | 4,016,288 |
Cash flows from investing activities | ||
Acquisitions of plant and equipment | (2,873,489) | (1,059,030) |
Net cash flows used in investing activities | (2,873,489) | (1,059,030) |
Cash flows from financing activities | ||
Proceeds from short-term loans | 2,910,418 | 1,457,726 |
Repayment of short-term loans | (1,381,758) | 0 |
Repayment of long-term loans | 0 | (460,335) |
Proceeds from non-financial institution borrowings | 8,726,892 | 0 |
Repayment of non-financial institution borrowings | (2,327,171) | 0 |
Proceeds from notes payable | 20,467,907 | 9,482,054 |
Repayment of notes payable | (13,081,781) | (14,956,180) |
Proceeds from exercise of employee options | 68,519 | 0 |
Change in restricted cash | (2,717,434) | 2,463,747 |
Net cash flows provided by (used in) financing activities | 12,665,592 | (2,012,988) |
Effect of foreign currency translation on cash | (163,260) | (44,328) |
Net increase in cash | 10,711,885 | 899,942 |
Cash - beginning of period | 9,324,393 | 5,849,967 |
Cash - end of period | 20,036,278 | 6,749,909 |
Cash paid for: | ||
Income taxes | 132,481 | 73,396 |
Interest expenses | 583,720 | 274,992 |
Non-cash transactions | ||
Offset of deferred income related to government grant and property, plant and equipment | $ 0 | $ 20,892 |
The Company and basis of presen
The Company and basis of presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization and basis of presentation [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | The Company and basis of presentation The consolidated financial statements include the financial statements of Highpower International, Inc. ("Highpower") and its 100 70 Basis of presentation The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 8 of Regulation S-X. They do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. 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 year ended December 31, 2016, filed with the SEC on March 28, 2017. 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 March 31, 2017, its consolidated results of operations and cash flows for the three months ended March 31, 2017 and 2016, as applicable, have been made. Operating results for the three-month period ended March 31, 2017 are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2017 or any future periods. Concentrations of credit risk No customer accounted for 10% or more of total sales during the three months ended March 31, 2017 and 2016. One supplier accounted for 10.5 14.4 No customer accounted for 10% or more of the accounts receivable as of March 31, 2017 and December 31, 2016. Long-term investment For an investee company over which the Company holds less than 20% voting interest, the investments are accounted for under the cost method. For an investee company over which the Company has the ability to exercise significant influence, but does not have a controlling interest, the Company accounted for those using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. As of March 31, 2017, management believes no impairment charge is necessary. |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2017 | |
Summary of significant accounting policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of significant accounting policies Highpower’s functional currency is the United States dollar ("US$"). HKHTC's functional currency is the Hong Kong dollar ("HK$"). The functional currency of Highpower's other direct and indirect wholly and majority owned subsidiaries in the PRC is the Renminbi ("RMB"). Most of the Company’s oversea sales are priced and settled with US$. At the date a foreign currency transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction is measured initially in the functional currency of the recording entity by use of the exchange rate in effect at that date. The increase or decrease in expected functional currency cash flows upon settlement of a transaction resulting from a change in exchange rates between the functional currency and the currency in which the transaction is denominated is recognized as foreign currency transaction gain or loss that is included in earnings for the period in which the exchange rate changes. At each balance sheet date, recorded balances that are denominated in a foreign currency are adjusted to reflect the current exchange rate. The Company’s reporting currency is US$. 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 accumulated other comprehensive income (loss). 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 value due to the short-term maturity of such instruments. 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 warrant liability is recognized in the balance sheet at the fair value (level 3). The fair value of these warrants have been determined using the Black-Scholes pricing mode. 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. The Company revalued the warrants utilizing a binomial model as of March 31, 2017 and December 31, 2016, respectively, with no material difference in the value. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which was subsequently modified in August 2015 by ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date. This guidance will be effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2017. The core principle of ASU No. 2014-09 is that companies should recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects what the company expects to receive. It requires additional disclosures to describe the nature, amount, timing and uncertainty of revenue and cash flows from contracts with customers. In 2016, the FASB issued additional ASUs that clarify the implementation guidance on principal versus agent considerations (ASU 2016-08), on identifying performance obligations and licensing (ASU 2016-10), and on narrow-scope improvements and practical expedients (ASU 2016-12) as well as on the revenue recognition criteria and other technical corrections (ASU 2016-20). During 2016, the Company made significant progress toward its evaluation of the potential changes from adopting the new standard on its future financial reporting and disclosures. The Company has established a cross-functional implementation team on assessment on the five-step model of the new standard to its revenue contracts. The adoption of this guidance is not expected to have a material effect on our result of operations, financial position or liquidity. Management has not yet selected a transition method. The Company is continuing to evaluate the impact of these ASUs primarily to determine the transition method to utilize at adoption and the additional disclosures required. 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 its consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, Statement of Cash Flows (Topic 230). The amendments in this update provide guidance on eight specific cash flow issue. It applies to all entities. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In October 2016, the FASB issued Accounting Standards Update (ASU) 2016-16, Income Taxes (Topic 740). The amendments in this Update is to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory and align the recognition of income tax consequences for intra-entity transfers of assets other than inventory with International Financial Reporting Standards (IFRS). Public business entities should apply the amendments in ASU 2016-16 for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted for any entity in any interim or annual period. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In November 2016, the FASB issued Accounting Standards Update (ASU) 2016-18, Statement of Cash Flows (Topic 230). The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. The Company does 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. |
Accounts receivable, net
Accounts receivable, net | 3 Months Ended |
Mar. 31, 2017 | |
Accounts receivable, net [Abstract] | |
Accounts Receivable [Text Block] | 3. Accounts receivable, net March 31, December 31, 2017 2016 (Unaudited) $ $ Accounts receivable 42,506,750 49,460,347 Less: allowance for doubtful accounts 3,182,652 3,179,578 39,324,098 46,280,769 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventories [Abstract] | |
Inventory Disclosure [Text Block] | 4. Inventories March 31, December 31, 2017 2016 (Unaudited) $ $ Raw materials 9,489,822 6,492,755 Work in progress 6,204,685 4,878,856 Finished goods 10,051,640 10,608,180 Packing materials 31,089 21,083 Consumables 236,087 206,459 26,013,323 22,207,333 |
Property, plant and equipment,
Property, plant and equipment, net | 3 Months Ended |
Mar. 31, 2017 | |
Property, plant and equipment, net [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property, plant and equipment, net March 31, December 31, 2017 2016 (Unaudited) $ $ Cost Construction in progress 707,475 715,188 Furniture, fixtures and office equipment 4,186,787 4,025,635 Leasehold improvement 6,254,397 5,865,909 Machinery and equipment 28,662,328 27,526,572 Motor vehicles 1,548,735 1,496,628 Buildings 22,045,007 21,797,158 63,404,729 61,427,090 Less: accumulated depreciation 18,653,592 17,922,099 44,751,137 43,504,991 The Company recorded depreciation expenses of $ 1,240,126 1,220,977 During the year ended December 31, 2016, the Company deducted deferred income related to government grants of $ 229,951 The real estate properties and buildings in Huizhou and Ganzhou have been pledged as collateral for short-term loans and bank acceptance bills drawn under certain lines of credit as of March 31, 2017 and December 31, 2016. The real estate properties and buildings in Shenzhen have been pledged as collateral for short-term loans under certain lines of credit as of March 31, 2017 and December 31, 2016 (Note 9). |
Long-term investment
Long-term investment | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Long Term Investment [Text Block] | 6. Long-term investment On June 30, 2016, the Company entered into an Equity Transfer and Capital Increase and Supplementary Agreements (collectively, the “2016 Equity Purchase Agreement”) with Huizhou Yipeng Energy Technology Co. Ltd. ("Yipeng") and its shareholders. As of March 31, 2017 and December 31, 2016, the Company has invested an aggregate of RMB65.0 million (approximately $9.4 million) in exchange for 35.4% of the equity interest of Yipeng, which was recorded under the equity method (Note 13). The equity in earnings of investee was $146,932 for the three months ended March 31, 2017. |
Taxation
Taxation | 3 Months Ended |
Mar. 31, 2017 | |
Taxation [Abstract] | |
Income Tax Disclosure [Text Block] | Taxation Highpower and its direct and indirect wholly and majority owned 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 was incorporated in Hong Kong, is subject to a corporate income tax rate of 16.5 PRC In accordance with the relevant tax laws and regulations of the PRC, a company registered in the PRC is subject to income taxes within the PRC at the applicable tax rate on taxable income. In China, the companies granted with National High-tech Enterprise (“NHTE”) status enjoy 15 25 15 Three months ended March 31, 2017 2016 (Unaudited) (Unaudited) $ $ Current 463,217 162,621 Deferred 124,548 (127,117) Total income taxes expenses 587,765 35,504 Three months ended March 31, 2017 2016 (Unaudited) (Unaudited) $ $ Income (loss) before tax 3,200,307 (440,625) Provision for income taxes at applicable income tax rate 803,332 (103,599) Effect of preferential tax rate (391,843) (23,670) Non-deductible expenses 16,547 17,620 Change in valuation allowance 159,729 145,153 Effective enterprise income taxes expenses 587,765 35,504 3) Deferred tax assets March 31, December 31, 2017 2016 (Unaudited) $ $ Tax loss carry-forward 4,316,470 4,274,881 Allowance for doubtful receivables 122,980 121,932 Impairment for inventory 116,960 98,276 Difference for sales cut-off 4,174 14,245 Deferred income 132,620 114,224 Property, plant and equipment subsidized by government grant 463,613 468,313 Impairment for property, plant and equipment 57,812 76,248 Total gross deferred tax assets 5,214,629 5,168,119 Valuation allowance (3,848,588) (3,690,358) Total net deferred tax assets 1,366,041 1,477,761 The deferred tax assets arising from net operating losses will expire from 2018 through 2021 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 March 31, 2017 and December 31, 2016. |
Notes payable
Notes payable | 3 Months Ended |
Mar. 31, 2017 | |
Notes payable [Abstract] | |
Notes Payable Disclosure [Text Block] | 8. Notes payable Notes payable 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 $ 38,291,121 30,658,000 |
Short-term loans
Short-term loans | 3 Months Ended |
Mar. 31, 2017 | |
Short-term loans [Abstract] | |
Short-term Debt [Text Block] | 9. Short-term loans As of March 31, 2017 and December 31, 2016, the bank borrowings were for working capital and capital expenditure purposes and were secured by personal guarantees executed by certain directors of the Company, the time deposits with a carrying amount of $ 152,382 151,083 3,631,897 3,622,435 11,877,015 11,854,452 The loans as of March 31, 2017 were primarily obtained from four banks with interest rates ranging from 4.35 5.66 4.35 5.87 259,837 207,108 |
Non-financial institution borro
Non-financial institution borrowings | 3 Months Ended |
Mar. 31, 2017 | |
Short-term loans [Abstract] | |
Non-Financial Institution Borrowings [Text Block] | Non-financial institution borrowings In April 2016, the Company obtained borrowings amount of RMB 20 2,902,505 4 580,501 16 2,322,004 10 1,451,252 60 8,707,515 The above borrowings were used for working capital and capital expenditure purposes, and personally guaranteed by the Company’s Chief Executive Officer, Mr. Dang Yu Pan. The interest rate for the borrowings is 5.66 143,518 |
Earnings (loss) per share
Earnings (loss) per share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings per share [Abstract] | |
Earnings Per Share [Text Block] | Earnings (loss) per share Three months ended March 31, 2017 2016 (Unaudited) (Unaudited) $ $ Numerator: Net income (loss) attributable to the Company 2,535,649 (342,608) Denominator: Weighted-average shares outstanding - Basic 15,119,693 15,101,679 - Dilutive effects of equity incentive awards 179,336 - - Diluted 15,299,029 15,101,679 Net income (loss) per share: - Basic 0.17 (0.02) - Diluted 0.17 (0.02) For the three months ended March 31, 2017, 685,001 1,716,927 |
Defined contribution plan
Defined contribution plan | 3 Months Ended |
Mar. 31, 2017 | |
Defined contribution plan [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 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 contributions mentioned above, the Company has no legal obligation for the benefits beyond the contributions made. The total contributions made, which were expensed as incurred, were $ 504,520 335,558 |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and contingencies [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 13. Commitments and contingencies Investment commitment Pursuant to the terms of the 2016 Equity Purchase Agreement (Note 6), prior to November 5, 2016, provided that Yipeng has been approved to be listed in the catalogue of Industrial Standards of Auto Mobile Power Battery Cell (the “Catalogue”) prior to October 31, 2016, the Company will pay approximately $2.8 million in cash and transfer equipment worth approximately $5.0 million in exchange for an additional 14.6% of the shares of Yipeng as a second closing. The investment commitment was subsequently canceled on May 5, 2017 (Note 16). Contingencies On January 14, 2016, FirsTrust China, Ltd (“FirsTrust”) 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 |
Segment information
Segment information | 3 Months Ended |
Mar. 31, 2017 | |
Segment information [Abstract] | |
Segment Reporting Disclosure [Text Block] | 14. 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 Business; (ii) Ni-MH Batteries and Accessories; and (iii) New Materials. The descriptions of the reportable segments have been extended from Lithium Batteries and Ni-MH Batteries to Lithium Business and Ni-MH Batteries and Accessories, respectively. Lithium Business mainly consists of lithium batteries, power storage system and power source solutions. Ni-MH Batteries and Accessories mainly consists of Ni-MH rechargeable batteries, sized batteries in blister packing as well as chargers and battery packs. Prior to the quarter ended March 31, 2017, the sales of products except for the batteries in the two reporting segments were de minimis. 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 were set out as follows: Three months ended March 31, 2017 2016 (Unaudited) (Unaudited) $ $ Net sales Lithium Business 27,490,494 15,314,945 Ni-MH Batteries and Accessories 12,527,313 12,856,325 New Materials 1,849,041 925,785 Total 41,866,848 29,097,055 Cost of Sales Lithium Business 21,639,869 12,507,331 Ni-MH Batteries and Accessories 9,188,390 9,605,806 New Materials 1,103,755 1,106,879 Total 31,932,014 23,220,016 Gross Profit Lithium Business 5,850,625 2,807,614 Ni-MH Batteries and Accessories 3,338,923 3,250,519 New Materials 745,286 (181,094) Total 9,934,834 5,877,039 March 31, December 31, 2017 2016 (Unaudited) $ $ Total Assets Lithium Business 118,876,152 115,116,508 Ni-MH Batteries and Accessories 45,390,325 37,994,369 New Materials 11,109,849 10,220,873 Total 175,376,326 163,331,750 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 were set out as follows: Three months ended March 31, 2017 2016 (Unaudited) (Unaudited) $ $ Net sales China Mainland 22,161,592 8,529,079 Asia, others 13,695,558 11,980,367 Europe 4,852,730 6,315,779 North America 1,058,132 1,634,146 South America 61,737 464,897 Africa - 24,033 Others 37,099 148,754 41,866,848 29,097,055 March 31, December 31, 2017 2016 (Unaudited) $ $ Accounts receivable China Mainland 25,976,406 29,663,633 Asia, others 10,095,997 10,441,358 Europe 3,191,001 3,875,979 North America 41,890 2,260,840 South America 56 26,610 Africa - 378 Others 18,748 11,971 39,324,098 46,280,769 |
Related party balance and trans
Related party balance and transaction | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 15. Related party balance and transaction Related party balance The outstanding amounts of Yipeng were as follow: March 31, December 31, 2017 2016 (Unaudited) $ $ Accounts receivable 7,394,195 7,125,140 Other receivable 26,305 392,110 Account due from Yipeng 7,420,500 7,517,250 Accounts payable (1) 1,722,398 1,516,557 Other payable 5,805 5,756 Amount due to Yipeng 1,728,203 1,522,313 (1) Accounts payable represented $1.3 million and $1.3 million technical support fee and $0.4 million and $0.2 milion equipment rental fee to Yipeng as of March 31, 2017 and December 31, 2016, respectively. Related party transaction The details of the transactions with Yipeng were as follows: Three months ended March 31,2017 (Unaudited) $ Income: Sales 624,323 Rental income 11,299 Expenses: Equipment rental fees 162,302 |
Subsequent event
Subsequent event | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent event [Abstract] | |
Subsequent Events [Text Block] | 16. Subsequent event On May 5, 2017, the Company entered into an Agreement for Equity Transfer and Capital Increase ("Equity Transfer Agreement") with a third party to sell 29.58 71.0 10.3 60.0 35.4 4.654 The Company has evaluated subsequent events through the issuance of the consolidated financial statements and no other subsequent event is identified that would have required adjustment or disclosure in the consolidated financial statements. |
Summary of significant accoun22
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of significant accounting policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, the instructions to Form 10-Q and Article 8 of Regulation S-X. They do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. 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 year ended December 31, 2016, filed with the SEC on March 28, 2017. 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 March 31, 2017, its consolidated results of operations and cash flows for the three months ended March 31, 2017 and 2016, as applicable, have been made. Operating results for the three-month period ended March 31, 2017 are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2017 or any future periods. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of credit risk No customer accounted for 10% or more of total sales during the three months ended March 31, 2017 and 2016. One supplier accounted for 10.5 14.4 No customer accounted for 10% or more of the accounts receivable as of March 31, 2017 and December 31, 2016. |
Inventory, Policy [Policy Text Block] | Long-term investment For an investee company over which the Company holds less than 20% voting interest, the investments are accounted for under the cost method. For an investee company over which the Company has the ability to exercise significant influence, but does not have a controlling interest, the Company accounted for those using the equity method. Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. As of March 31, 2017, management believes no impairment charge is necessary. |
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 Highpower's other direct and indirect wholly and majority owned subsidiaries in the PRC is the Renminbi ("RMB"). Most of the Company’s oversea sales are priced and settled with US$. At the date a foreign currency transaction is recognized, each asset, liability, revenue, expense, gain, or loss arising from the transaction is measured initially in the functional currency of the recording entity by use of the exchange rate in effect at that date. The increase or decrease in expected functional currency cash flows upon settlement of a transaction resulting from a change in exchange rates between the functional currency and the currency in which the transaction is denominated is recognized as foreign currency transaction gain or loss that is included in earnings for the period in which the exchange rate changes. At each balance sheet date, recorded balances that are denominated in a foreign currency are adjusted to reflect the current exchange rate. The Company’s reporting currency is US$. 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 accumulated other comprehensive income (loss). |
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 value due to the short-term maturity of such instruments. |
Warrant Liabilities Policy [Policy Text Block] | Warrant Liability 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 warrant liability is recognized in the balance sheet at the fair value (level 3). The fair value of these warrants have been determined using the Black-Scholes pricing mode. 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. The Company revalued the warrants utilizing a binomial model as of March 31, 2017 and December 31, 2016, respectively, with no material difference in the value. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently issued accounting pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which was subsequently modified in August 2015 by ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date. This guidance will be effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2017. The core principle of ASU No. 2014-09 is that companies should recognize revenue when the transfer of promised goods or services to customers occurs in an amount that reflects what the company expects to receive. It requires additional disclosures to describe the nature, amount, timing and uncertainty of revenue and cash flows from contracts with customers. In 2016, the FASB issued additional ASUs that clarify the implementation guidance on principal versus agent considerations (ASU 2016-08), on identifying performance obligations and licensing (ASU 2016-10), and on narrow-scope improvements and practical expedients (ASU 2016-12) as well as on the revenue recognition criteria and other technical corrections (ASU 2016-20). During 2016, the Company made significant progress toward its evaluation of the potential changes from adopting the new standard on its future financial reporting and disclosures. The Company has established a cross-functional implementation team on assessment on the five-step model of the new standard to its revenue contracts. The adoption of this guidance is not expected to have a material effect on our result of operations, financial position or liquidity. Management has not yet selected a transition method. The Company is continuing to evaluate the impact of these ASUs primarily to determine the transition method to utilize at adoption and the additional disclosures required. 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 its consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, Statement of Cash Flows (Topic 230). The amendments in this update provide guidance on eight specific cash flow issue. It applies to all entities. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In October 2016, the FASB issued Accounting Standards Update (ASU) 2016-16, Income Taxes (Topic 740). The amendments in this Update is to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory and align the recognition of income tax consequences for intra-entity transfers of assets other than inventory with International Financial Reporting Standards (IFRS). Public business entities should apply the amendments in ASU 2016-16 for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted for any entity in any interim or annual period. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. In November 2016, the FASB issued Accounting Standards Update (ASU) 2016-18, Statement of Cash Flows (Topic 230). The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows. The Company does 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. |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounts receivable, net [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | March 31, December 31, 2017 2016 (Unaudited) $ $ Accounts receivable 42,506,750 49,460,347 Less: allowance for doubtful accounts 3,182,652 3,179,578 39,324,098 46,280,769 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventories [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | March 31, December 31, 2017 2016 (Unaudited) $ $ Raw materials 9,489,822 6,492,755 Work in progress 6,204,685 4,878,856 Finished goods 10,051,640 10,608,180 Packing materials 31,089 21,083 Consumables 236,087 206,459 26,013,323 22,207,333 |
Property, plant and equipment25
Property, plant and equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, plant and equipment, net [Abstract] | |
Property, Plant and Equipment [Table Text Block] | March 31, December 31, 2017 2016 (Unaudited) $ $ Cost Construction in progress 707,475 715,188 Furniture, fixtures and office equipment 4,186,787 4,025,635 Leasehold improvement 6,254,397 5,865,909 Machinery and equipment 28,662,328 27,526,572 Motor vehicles 1,548,735 1,496,628 Buildings 22,045,007 21,797,158 63,404,729 61,427,090 Less: accumulated depreciation 18,653,592 17,922,099 44,751,137 43,504,991 |
Taxation (Tables)
Taxation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 2016 (Unaudited) (Unaudited) $ $ Current 463,217 162,621 Deferred 124,548 (127,117) Total income taxes expenses 587,765 35,504 |
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 March 31, 2017 2016 (Unaudited) (Unaudited) $ $ Income (loss) before tax 3,200,307 (440,625) Provision for income taxes at applicable income tax rate 803,332 (103,599) Effect of preferential tax rate (391,843) (23,670) Non-deductible expenses 16,547 17,620 Change in valuation allowance 159,729 145,153 Effective enterprise income taxes expenses 587,765 35,504 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets and deferred tax liabilities reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purpose and the tax bases used for income tax purpose. The following represents the tax effect of each major type of temporary difference. March 31, December 31, 2017 2016 (Unaudited) $ $ Tax loss carry-forward 4,316,470 4,274,881 Allowance for doubtful receivables 122,980 121,932 Impairment for inventory 116,960 98,276 Difference for sales cut-off 4,174 14,245 Deferred income 132,620 114,224 Property, plant and equipment subsidized by government grant 463,613 468,313 Impairment for property, plant and equipment 57,812 76,248 Total gross deferred tax assets 5,214,629 5,168,119 Valuation allowance (3,848,588) (3,690,358) Total net deferred tax assets 1,366,041 1,477,761 |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 (loss) per common share for the three months ended March 31, 2017 and 2016. Three months ended March 31, 2017 2016 (Unaudited) (Unaudited) $ $ Numerator: Net income (loss) attributable to the Company 2,535,649 (342,608) Denominator: Weighted-average shares outstanding - Basic 15,119,693 15,101,679 - Dilutive effects of equity incentive awards 179,336 - - Diluted 15,299,029 15,101,679 Net income (loss) per share: - Basic 0.17 (0.02) - Diluted 0.17 (0.02) |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 were set out as follows: Three months ended March 31, 2017 2016 (Unaudited) (Unaudited) $ $ Net sales Lithium Business 27,490,494 15,314,945 Ni-MH Batteries and Accessories 12,527,313 12,856,325 New Materials 1,849,041 925,785 Total 41,866,848 29,097,055 Cost of Sales Lithium Business 21,639,869 12,507,331 Ni-MH Batteries and Accessories 9,188,390 9,605,806 New Materials 1,103,755 1,106,879 Total 31,932,014 23,220,016 Gross Profit Lithium Business 5,850,625 2,807,614 Ni-MH Batteries and Accessories 3,338,923 3,250,519 New Materials 745,286 (181,094) Total 9,934,834 5,877,039 March 31, December 31, 2017 2016 (Unaudited) $ $ Total Assets Lithium Business 118,876,152 115,116,508 Ni-MH Batteries and Accessories 45,390,325 37,994,369 New Materials 11,109,849 10,220,873 Total 175,376,326 163,331,750 |
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 were set out as follows: Three months ended March 31, 2017 2016 (Unaudited) (Unaudited) $ $ Net sales China Mainland 22,161,592 8,529,079 Asia, others 13,695,558 11,980,367 Europe 4,852,730 6,315,779 North America 1,058,132 1,634,146 South America 61,737 464,897 Africa - 24,033 Others 37,099 148,754 41,866,848 29,097,055 March 31, December 31, 2017 2016 (Unaudited) $ $ Accounts receivable China Mainland 25,976,406 29,663,633 Asia, others 10,095,997 10,441,358 Europe 3,191,001 3,875,979 North America 41,890 2,260,840 South America 56 26,610 Africa - 378 Others 18,748 11,971 39,324,098 46,280,769 |
Related party balance and tra29
Related party balance and transaction (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Outstandings [Table Text Block] | The outstanding amounts of Yipeng were as follow: March 31, December 31, 2017 2016 (Unaudited) $ $ Accounts receivable 7,394,195 7,125,140 Other receivable 26,305 392,110 Account due from Yipeng 7,420,500 7,517,250 Accounts payable (1) 1,722,398 1,516,557 Other payable 5,805 5,756 Amount due to Yipeng 1,728,203 1,522,313 (1) Accounts payable represented $1.3 million and $1.3 million technical support fee and $0.4 million and $0.2 milion equipment rental fee to Yipeng as of March 31, 2017 and December 31, 2016, respectively. |
Schedule of Related Party Transactions [Table Text Block] | The details of the transactions with Yipeng were as follows: Three months ended March 31,2017 (Unaudited) $ Income: Sales 624,323 Rental income 11,299 Expenses: Equipment rental fees 162,302 |
The Company and basis of pres30
The Company and basis of presentation (Details Textual) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Supplier Concentration Risk [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Concentration Risk, Percentage | 10.50% | 14.40% |
Hong Kong Highpower Technology Company Limited [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Equity Method Investment, Ownership Percentage | 100.00% | |
Ganzhou Highpower Technology Co., Ltd ("GZ Highpower") [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Equity Method Investment, Ownership Percentage | 70.00% |
Accounts receivable, net (Detai
Accounts receivable, net (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts receivable | $ 42,506,750 | $ 49,460,347 |
Less: allowance for doubtful accounts | 3,182,652 | 3,179,578 |
Accounts receivable, net | $ 39,324,098 | $ 46,280,769 |
Inventories (Details)
Inventories (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Raw materials | $ 9,489,822 | $ 6,492,755 |
Work in progress | 6,204,685 | 4,878,856 |
Finished goods | 10,051,640 | 10,608,180 |
Packing materials | 31,089 | 21,083 |
Consumables | 236,087 | 206,459 |
Inventories | $ 26,013,323 | $ 22,207,333 |
Property, plant and equipment33
Property, plant and equipment, net (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Cost | ||
Construction in progress | $ 707,475 | $ 715,188 |
Furniture, fixtures and office equipment | 4,186,787 | 4,025,635 |
Leasehold improvement | 6,254,397 | 5,865,909 |
Machinery and equipment | 28,662,328 | 27,526,572 |
Motor vehicles | 1,548,735 | 1,496,628 |
Buildings | 22,045,007 | 21,797,158 |
Property, plant and equipment, cost | 63,404,729 | 61,427,090 |
Less: accumulated depreciation | 18,653,592 | 17,922,099 |
Property, plant and equipment, net | $ 44,751,137 | $ 43,504,991 |
Property, plant and equipment34
Property, plant and equipment, net (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 1,240,126 | $ 1,220,977 | |
Property, Plant and Equipment, Transfers and Changes | $ 0 | $ 20,892 | $ 229,951 |
Long-term investment (Details T
Long-term investment (Details Textual) ¥ in Millions | 3 Months Ended | ||||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | |
Income (Loss) from Equity Method Investments | $ 146,932 | $ 0 | |||
Yipeng Energy Technology Co. Ltd [Member] | |||||
Equity Method Investments | $ 9,400,000 | ¥ 65 | $ 9,400,000 | ¥ 65 | |
Equity Method Investment, Ownership Percentage | 35.40% | 35.40% | 35.40% | 35.40% |
Taxation (Details)
Taxation (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule Of Taxation [Line Items] | ||
Current | $ 463,217 | $ 162,621 |
Deferred | 124,548 | 127,117 |
Effective enterprise income tax | $ 587,765 | $ 35,504 |
Taxation (Details 1)
Taxation (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule Of Taxation [Line Items] | ||
Income (loss) before tax | $ 3,200,307 | $ (440,625) |
Provision for income taxes at applicable income tax rate | 803,332 | (103,599) |
Effect of preferential tax rate | (391,843) | (23,670) |
Non-deductible expenses | 16,547 | 17,620 |
Change in valuation allowance | 159,729 | 145,153 |
Effective enterprise income tax | $ 587,765 | $ 35,504 |
Taxation (Details 2)
Taxation (Details 2) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule Of Taxation [Line Items] | ||
Tax loss carry-forward | $ 4,316,470 | $ 4,274,881 |
Allowance for doubtful receivables | 122,980 | 121,932 |
Impairment for inventory | 116,960 | 98,276 |
Difference for sales cut-off | 4,174 | 14,245 |
Deferred income | 132,620 | 114,224 |
Property, plant and equipment subsidized by government grant | 463,613 | 468,313 |
Impairment for property, plant and equipment | 57,812 | 76,248 |
Total gross deferred tax assets | 5,214,629 | 5,168,119 |
Valuation allowance | (3,848,588) | (3,690,358) |
Total net deferred tax assets | $ 1,366,041 | $ 1,477,761 |
Taxation (Details Textual)
Taxation (Details Textual) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule Of Taxation [Line Items] | ||
Value Added Tax Percentage Of Revenue | 17.00% | |
Operating Losses Carryforward Expiration Date | 2018 through 2021 | |
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% |
CHINA | National High-tech Enterprise [Member] | ||
Schedule Of Taxation [Line Items] | ||
Income Tax Exemption Percentage | 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 ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | ||
Short-term Bank Loans and Notes Payable | $ 38,291,121 | $ 30,658,000 |
Short-term loans (Details Textu
Short-term loans (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | |||
Pledged Assets Not Separately Reported Property Plant And Equipment | $ 11,877,015 | $ 11,854,452 | |
Interest Expense, Short-term Borrowings, Total | 259,837 | $ 207,108 | |
Bank Time Deposits [Member] | |||
Short-term Debt [Line Items] | |||
Restricted Cash and Cash Equivalents | $ 152,382 | $ 151,083 | |
Minimum [Member] | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | 4.35% | |
Maximum [Member] | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.66% | 5.87% | |
Short-term Debt [Member] | |||
Short-term Debt [Line Items] | |||
Guarantor Obligations, Liquidation Proceeds, Monetary Amount | $ 3,631,897 | $ 3,622,435 |
Non-financial institution bor42
Non-financial institution borrowings (Details Textual) ¥ in Millions | 1 Months Ended | 3 Months Ended | ||||||||||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Jan. 31, 2017USD ($) | Jan. 31, 2017CNY (¥) | Oct. 31, 2016USD ($) | Oct. 31, 2016CNY (¥) | May 31, 2016USD ($) | May 31, 2016CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Apr. 30, 2016CNY (¥) | |
Repayments of Other Short-term Debt | $ 2,327,171 | $ 0 | ||||||||||
Proceeds from Other Short-term Debt | $ 8,726,892 | 0 | ||||||||||
Other Debt Obligations [Member] | ||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.66% | 5.66% | 5.66% | |||||||||
Interest Expense, Debt | $ 143,518 | $ 0 | ||||||||||
Repayments of Other Short-term Debt | $ 2,322,004 | ¥ 16 | $ 580,501 | ¥ 4 | ||||||||
Debt Instrument, Face Amount | $ 2,902,505,000,000 | ¥ 20 | ||||||||||
Proceeds from Other Short-term Debt | $ 8,707,515 | ¥ 60 | $ 1,451,252 | ¥ 10 |
Earnings (loss) per share (Deta
Earnings (loss) per share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net income (loss) attributable to the Company | $ 2,535,649 | $ (342,608) |
Weighted-average shares outstanding | ||
- Basic | 15,119,693 | 15,101,679 |
- Dilutive effects of equity incentive awards | 179,336 | 0 |
- Diluted | 15,299,029 | 15,101,679 |
Net income per share: | ||
- Basic | $ 0.17 | $ (0.02) |
- Diluted | $ 0.17 | $ (0.02) |
Earnings (loss) per share (De44
Earnings (loss) per share (Details Textual) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 685,001 | 1,716,927 |
Defined contribution plan (Deta
Defined contribution plan (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Contribution Plan, Cost Recognized | $ 504,520 | $ 335,558 |
Commitments and contingencies (
Commitments and contingencies (Details Textual) - shares | Feb. 04, 2016 | Mar. 31, 2017 | Jan. 14, 2016 |
Commitments and Contingencies Disclosure [Line Items] | |||
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. On January 24, 2017, the court denied FirsTrust’s motion for judgment on the pleadings. The parties are continuing with pre-trial discovery, as well as settlement discussions. The Company believes that it has meritorious defenses and counterclaims and intends to defend and prosecute them vigorously. | ||
Yipeng Energy Technology Co. Ltd [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Equity Method Investment, Description of Principal Activities | prior to October 31, 2016, the Company will pay approximately $2.8 million in cash and transfer equipment worth approximately $5.0 million in exchange for an additional 14.6% of the shares of Yipeng as a second closing. |
Segment information (Details)
Segment information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 41,866,848 | $ 29,097,055 |
Cost of Sales | 31,932,014 | 23,220,016 |
Gross profit | 9,934,834 | 5,877,039 |
Lithium Batteries [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 27,490,494 | 15,314,945 |
Cost of Sales | 21,639,869 | 12,507,331 |
Gross profit | 5,850,625 | 2,807,614 |
Ni-MH Batteries [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 12,527,313 | 12,856,325 |
Cost of Sales | 9,188,390 | 9,605,806 |
Gross profit | 3,338,923 | 3,250,519 |
New Materials [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,849,041 | 925,785 |
Cost of Sales | 1,103,755 | 1,106,879 |
Gross profit | $ 745,286 | $ (181,094) |
Segment information (Details 1)
Segment information (Details 1) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 175,376,326 | $ 163,331,750 |
Lithium Batteries [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 118,876,152 | 115,116,508 |
Ni-MH Batteries [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 45,390,325 | 37,994,369 |
New Materials [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 11,109,849 | $ 10,220,873 |
Segment information (Details 2)
Segment information (Details 2) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 41,866,848 | $ 29,097,055 |
China Mainland [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 22,161,592 | 8,529,079 |
Asia, others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 13,695,558 | 11,980,367 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 4,852,730 | 6,315,779 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 1,058,132 | 1,634,146 |
South America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 61,737 | 464,897 |
Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 0 | 24,033 |
Others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 37,099 | $ 148,754 |
Segment information (Details 3)
Segment information (Details 3) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | $ 39,324,098 | $ 46,280,769 |
China Mainland [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 25,976,406 | 29,663,633 |
Asia, others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 10,095,997 | 10,441,358 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 3,191,001 | 3,875,979 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 41,890 | 2,260,840 |
South America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 56 | 26,610 |
Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 0 | 378 |
Others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | $ 18,748 | $ 11,971 |
Related party balance and tra51
Related party balance and transaction (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | |
Due from Related Parties, Current | $ 7,420,500 | $ 7,517,250 | |
Due to Related Parties, Current | 1,728,203 | 1,522,313 | |
Accounts Payable [Member] | |||
Due to Related Parties, Current | [1] | 1,722,398 | 1,516,557 |
Other Payable [Member] | |||
Due to Related Parties, Current | 5,805 | 5,756 | |
Accounts Receivable [Member] | |||
Due from Related Parties, Current | 7,394,195 | 7,125,140 | |
Other Receivable [Member] | |||
Due from Related Parties, Current | $ 26,305 | $ 392,110 | |
[1] | Accounts payable represented $1.3 million and $1.3 million technical support fee and $0.4 million and $0.2 milion equipment rental fee to Yipeng as of March 31, 2017 and December 31, 2016, respectively. |
Related party balance and tra52
Related party balance and transaction (Details1) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Income: | |
Sales | $ 624,323 |
Rental income | 11,299 |
Expenses: | |
Equipment rental fees | $ 162,302 |
Related party balance and tra53
Related party balance and transaction (Details Textual) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Technical Support Fee Payable [Member] | ||
Accounts Payable, Related Parties, Current | $ 1.3 | $ 1.3 |
Equipment Rental Fee Payable [Member] | ||
Accounts Payable, Related Parties, Current | $ 0.4 | $ 0.2 |
Subsequent event (Details Textu
Subsequent event (Details Textual) - Yipeng Energy Technology Co. Ltd [Member] - Subsequent Event [Member] ¥ in Millions, $ in Millions | May 05, 2017USD ($) | May 05, 2017CNY (¥) |
Subsequent Event [Line Items] | ||
Percentage of Subsidiary Equity Interest Sold | 29.58% | 29.58% |
Proceeds from Sale of Equity Method Investments | $ 10.3 | ¥ 71 |
Sale of Stock, Consideration Received Per Transaction | ¥ 60 | |
Sale of Stock, Percentage of Ownership before Transaction | 35.40% | 35.40% |
Sale of Stock, Percentage of Ownership after Transaction | 4.654% | 4.654% |