Highpower International (HPJ) 10-Q 11 May 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 11, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
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		15,559,658

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current Assets:
Cash	$ 18,859,355	$ 14,502,171
Restricted cash	32,639,148	25,953,946
Accounts receivable, net	56,240,961	58,252,999
Amount due from a related party	921,862	1,165,838
Notes receivable	67,612	2,606,517
Advances to suppliers	6,511,584	6,050,531
Prepayments and other receivables	5,029,550	4,268,527
Foreign exchange derivatives	661,111	236,436
Inventories	55,347,466	42,946,644
Total Current Assets	176,278,649	155,983,609
Property, plant and equipment, net	48,189,218	46,520,776
Long-term prepayments	4,243,891	3,715,445
Land use rights, net	2,719,885	2,639,631
Other assets	746,938	748,431
Deferred tax assets, net	1,135,550	750,267
Long-term investments	11,209,442	9,906,379
TOTAL ASSETS	244,523,573	220,264,538
Current Liabilities:
Accounts payable	61,149,301	60,368,012
Deferred government grant	799,040	309,638
Short-term loans	24,760,223	10,128,646
Non-financial institution borrowings	11,152,890	10,756,158
Notes payable	58,833,089	54,859,478
Amount due to a related party	780,702	0
Other payables and accrued liabilities	13,339,920	12,243,345
Income taxes payable	4,537,182	3,609,391
Total Current Liabilities	175,352,347	152,274,668
Income taxes payable, noncurrent	0	777,685
TOTAL LIABILITIES	175,352,347	153,052,353
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, 15,509,658 shares issued and outstanding at March 31, 2018 and at December 31, 2017, respectively)	1,551	1,551
Additional paid-in capital	12,951,177	12,709,756
Statutory and other reserves	6,549,815	6,549,815
Retained earnings	43,362,632	44,481,568
Accumulated other comprehensive income	6,306,051	3,469,495
TOTAL EQUITY	69,171,226	67,212,185
TOTAL LIABILITIES AND EQUITY	$ 244,523,573	$ 220,264,538

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
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	15,509,658	15,509,658
Common Stock, shares outstanding	15,509,658	15,509,658

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net sales	$ 49,783,453	$ 41,866,848
Cost of sales	(42,217,126)	(31,932,014)
Gross profit	7,566,327	9,934,834
Research and development expenses	(2,561,837)	(1,813,930)
Selling and distribution expenses	(1,975,096)	(1,638,313)
General and administrative expenses	(4,114,810)	(3,058,562)
Foreign currency transaction loss	(1,014,693)	(313,878)
Total operating expenses	(9,666,436)	(6,824,683)
(Loss) income from operations	(2,100,109)	3,110,151
Changes in fair value of warrant liability	0	(31,552)
Changes in fair value of foreign exchange derivatives	703,715	0
Government grants	329,820	349,515
Other income	23,561	228,578
Equity in earnings of investee	156,250	146,932
Interest expenses	(241,852)	(603,317)
(Loss) income before taxes	(1,128,615)	3,200,307
Income taxes benefit (expense)	9,679	(587,765)
Net (loss) income	(1,118,936)	2,612,542
Less: net income attributable to non-controlling interest	0	76,893
Net (loss) income attributable to the Company	(1,118,936)	2,535,649
Comprehensive income
Net (loss) income	(1,118,936)	2,612,542
Foreign currency translation gain (loss)	2,836,556	(24,001)
Comprehensive income	1,717,620	2,588,541
Less: comprehensive income attributable to non-controlling interest	0	79,551
Comprehensive income attributable to the Company	$ 1,717,620	$ 2,508,990
(Loss) earnings per share of common stock attributable to the Company
- Basic	$ (0.07)	$ 0.17
- Diluted	$ (0.07)	$ 0.17
Weighted average number of common stock outstanding
- Basic	15,509,658	15,119,693
- Diluted	15,509,658	15,299,029

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities
Net (loss) income	$ (1,118,936)	$ 2,612,542
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	1,475,228	1,274,334
Allowance for doubtful accounts	18,524	5,015
Loss on disposal of property, plant and equipment	21,805	3,262
Deferred tax	(356,616)	124,548
Changes in fair value of foreign exchange derivatives	(414,042)	0
Equity in earnings of investee	(156,250)	(146,932)
Share based compensation	241,421	24,401
Changes in fair value of warrant liability	0	31,552
Changes in operating assets and liabilities:
Accounts receivable	3,713,692	7,314,824
Notes receivable	2,622,925	235,222
Advances to suppliers	(236,789)	0
Prepayments and other receivables	(601,315)	(485,520)
Amount due from related parties	285,657	161,693
Amount due to a related party	0	193,240
Inventories	(10,779,233)	(3,623,242)
Accounts payable	(1,377,447)	(5,111,874)
Deferred income	475,783	116,359
Other payables and accrued liabilities	665,379	(1,977,117)
Income taxes payable	19,371	330,735
Net cash flows (used in) provided by operating activities	(5,500,843)	1,083,042
Cash flows from investing activities
Acquisitions of property, plant and equipment	(1,553,979)	(2,873,489)
Prepayment for long-term investment	(317,188)	0
Net cash flows used in investing activities	(1,871,167)	(2,873,489)
Cash flows from financing activities
Proceeds from short-term loans	14,427,164	2,910,418
Repayments of short-term loans	0	(1,381,758)
Proceeds from non-financial institution borrowings	0	8,726,892
Repayments of non-financial institution borrowings	0	(2,327,171)
Proceeds from notes payable	28,429,600	20,467,907
Repayments of notes payable	(26,488,407)	(13,081,781)
Proceeds from exercise of employee options	0	68,519
Net cash flows provided by financing activities	16,368,357	15,383,026
Effect of foreign currency translation on cash and restricted cash	2,046,039	(72,952)
Net increase in cash and restricted cash	11,042,386	13,519,627
Cash and restricted cash - beginning of period	40,456,117	20,538,033
Cash and restricted cash - end of period	51,498,503	34,057,660
Cash paid for:
Income taxes	327,565	132,481
Interest expenses	$ 114,588	$ 583,720

The Company and basis of presen

The Company and basis of presentation	3 Months Ended
	Mar. 31, 2018
Organization and basis of presentation [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. The Company and basis of presentation The consolidated financial statements include the financial statements of Highpower International, Inc. ("Highpower") and its 100 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, 2017, filed with the SEC on April 4, 2018. 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, 2018, its consolidated results of operations for the three months ended March 31, 2018 and cash flows for the three months ended March 31, 2018, as applicable, have been made. Operating results for the three months period ended March 31, 2018 are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2018 or any future periods. No customer accounted for 10 One supplier accounted for 21.2 10.5 No customer accounted for 10 10.1

Summary of significant accounti

Summary of significant accounting policies	3 Months Ended
	Mar. 31, 2018
Summary of significant accounting policies [Abstract]
Significant Accounting Policies [Text Block]	2. Summary of significant accounting policies For an investee over which the Company holds less than 20% voting interest and has no ability to exercise significant influence, the investments are accounted for under the cost method. For an investee 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, 2018 and December 31, 2017, management believes no impairment charge is necessary. 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. 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. ASC Topic 820 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. ASC Topic 820 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. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which was subsequently modified in August 2015 by ASU 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 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). In 2017, the FASB issued Accounting Standards Update (ASU) 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20), which was originally issued in ASU 2014-09. The amendments in this Update require that an entity to initially measure a retained non-controlling interest in a nonfinancial asset at fair value consistent with a how a retained non-controlling interest in a business is measured. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. It also impacts certain other areas, such as the accounting for costs to obtain or fulfill a contract. The standard also requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Management has adopted this standard effective January 1, 2018 using the modified-retrospective approach, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The adoption of ASC 606 did not have a material impact on the Company’s condensed consolidated balance sheet, statement of operations and statement of cash flows for the three months period ended March 31, 2018. See Note 3 for disclosures required by ASC 606 and the updated accounting policy for revenue recognition. On February 25, 2016, the FASB issued 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. 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 February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this Update also require certain disclosures about stranded tax effects. Public business entities should apply the amendments in ASU 2018-02 for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The Company is currently evaluating the impact of adopting ASU 2018-02 on its consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, Income Tax (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. This update adds SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 - the date on which the Tax Act was signed into law. The Company is currently evaluating the impact of adopting ASU 2018-05 on its consolidated financial statements. 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.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer [Text Block]	3. Revenue Recognition The Company adopted ASC 606 using the modified retrospective method as applied to customer contracts that were not completed as of January 1, 2018. As a result, financial information for reporting periods beginning after January 1, 2018 are presented under ASC 606, while comparative financial information has not been adjusted and continues to be reported in accordance with the Company’s historical accounting policy for revenue recognition prior to the adoption of ASC 606. Revenue is recognized when (or as) the Company satisfies performance obligations by transferring a promised goods to a customer. Revenue is measured at the transaction price which is based on the amount of consideration that the Company expects to receive in exchange for transferring the promised goods to the customer. Contracts with customers are comprised of customer purchase orders, invoices and written contracts. Given the nature of our business, customer product orders are fulfilled at a point in time and not over a period of time. The majority of domestic sales contracts transfer control to customers upon receipt of product by customers. The majority of oversea sales contracts transfer control to customers when goods were delivered to the carriers. In most jurisdictions where the Company operates, sales are subject to Value Added Tax (“VAT”). Revenue is presented net of VAT. 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. Three months ended March 31, 2018 Lithium Business Ni-MH Batteries and Consolidated Primary Geographic Markets (Unaudited) (Unaudited) (Unaudited) $ $ $ China Mainland 22,590,952 5,714,811 28,305,763 Asia, others 12,770,712 2,983,684 15,754,396 Europe 905,169 3,632,734 4,537,903 North America 329,822 835,009 1,164,831 Others - 20,560 20,560 Total sales 36,596,655 13,186,798 49,783,453 The Company has elected to apply the practical expedient in paragraph ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. We do not have amounts of contract assets since revenue is recognized as control of goods are transferred. Our contract liabilities consist of advance payments from customers. Our contract liabilities are reported in a net position on a customer-by-customer basis at the end of each reporting period. All contract liabilities are expected to be recognized as revenue within one year and are included in Other payables and accrued liabilities in our Condensed Consolidated Balance Sheet.

Accounts receivable, net

Accounts receivable, net	3 Months Ended
	Mar. 31, 2018
Accounts receivable, net [Abstract]
Accounts Receivable [Text Block]	4. Accounts receivable, net March 31, December 31, 2018 2017 (Unaudited) $ $ Accounts receivable 59,443,695 61,431,785 Less: allowance for doubtful accounts 3,202,734 3,178,786 56,240,961 58,252,999

Inventories

Inventories	3 Months Ended
	Mar. 31, 2018
Inventories [Abstract]
Inventory Disclosure [Text Block]	5. Inventories March 31, December 31, 2018 2017 (Unaudited) $ $ Raw materials 31,539,229 21,428,315 Work in progress 10,503,750 6,931,486 Finished goods 12,960,846 14,284,563 Packing materials 30,817 36,797 Consumables 312,824 265,483 55,347,466 42,946,644

Property, plant and equipment,

Property, plant and equipment, net	3 Months Ended
	Mar. 31, 2018
Property, plant and equipment, net [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	6. Property, plant and equipment, net March 31, December 31, 2018 2017 (Unaudited) $ $ Cost Construction in progress 1,624,402 1,330,643 Furniture, fixtures and office equipment 6,326,512 5,794,983 Leasehold improvement 7,404,622 7,080,409 Machinery and equipment 34,968,872 33,176,416 Motor vehicles 1,651,532 1,498,605 Buildings 20,913,122 20,169,197 72,889,062 69,050,253 Less: accumulated depreciation 24,699,844 22,529,477 48,189,218 46,520,776 The Company recorded depreciation expenses of $ 1,445,700 1,240,126 During the three months ended March 31, 2018, the Company deducted deferred income related to government grants of $nil on the carrying amount of property, plant and equipment. During the year ended December 31, 2017, the Company deducted deferred income related to government grants of $ 263,948 The buildings comprising the Huizhou facilities were pledged as collateral for bank loans. The net carrying amounts of the buildings were $ 9,502,186 9,224,694 The building located in Shenzhen, Guangdong was pledged as collateral for bank loans. The net carrying amount of the buildings was $ 405,105 396,843

Long-term investment

Long-term investment	3 Months Ended
	Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Long Term Investment [Text Block]	7. Long-term investment March 31, 2018 December 31, 2017 (Unaudited) Interest% Interest% $ $ Equity method investment -Ganzhou Highpower Technology Company Limited (“GZ Highpower”) (1) 8,558,347 31.294 % 8,102,520 31.294 % -Shenzhen V-power Innovative Technology Co., Ltd (“V-power”) (2) 780,702 49.000 % - N/A Cost method investment -Huizhou Yipeng Energy Technology Co Ltd. (“Yipeng”) (3) 1,870,393 4.654 % 1,803,859 4.654 % 11,209,442 9,906,379 (1) Investment in GZ Highpower On December 21, 2017, after the completion of the capital increase to GZ Highpower by other shareholders, the Company lost the controlling power over GZ Highpower and deconsolidated GZ Highpower. Thereafter, the investment was recorded under the equity method. The equity in earnings of investee was $ 156,250 (2) Investment in V-power On February 28, 2018, the Company signed an investment agreement (the “Agreement”) with a related company and a group of individuals (the “Founder Team”) with an aggregate amount of RMB 4.9 0.8 49 In addition, the Company agrees to transfer the 15% of original equity interest of V-power to the Founder Team as compensation under voluntary assignment as any of the following requirements met: 1. annual sales revenue higher or equal to RMB30 million before the first capital increase of V-power; 2. valuation of V-power higher or equal to RMB30 million before equity issuance. Since V-power did not commence any operation, there was no profit or loss for the three months ended March 31, 2018. (3) Investment in Yipeng In 2017, after the completion of the capital injection to Yipeng and the equity transfer payment received by the Company from the other shareholder, the Company’s equity ownership in Yipeng decreased from 35.4 4.654 The equity in earnings of investee was $ 146,932

Taxation

Taxation	3 Months Ended
	Mar. 31, 2018
Taxation [Abstract]
Income Tax Disclosure [Text Block]	8. Taxation Highpower and its direct and indirect wholly 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 Tax Reform On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into legislation. The 2017 Tax Act significantly revises the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 34 21 On December 22, 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. As of March 31, 2018, the Company has not completed its accounting for certain tax effects of enactment of the Tax Act; however, the Company has made reasonable estimates of the effects on our existing deferred tax balances and the one-time transition tax. The Company expects to finalize these provisional estimates before the end of 2018 after completing our reviews and analysis, including reviews and analysis of any interpretations issued during this re-measurement period. The one-time transition tax is based on the total post-1986 earnings and profits (“E&P”) for which the Company has previously deferred U.S. income taxes. The Company expects to make adjustments to this provisional estimate based on additional clarifying and interpretative technical guidance to be issued related to the calculation of the one-time transition tax. The Tax Act subjects a U.S. shareholder to tax on Global Intangible Low Taxed Income (GILTI) earned by foreign subsidiaries. The Company has not determined its accounting policy with respect to GILTI and has therefore included the 2018 estimate of current year GILTI as a period cost and included as part of the estimated annual effective tax rate. The 2018 estimated annual effective tax rate also includes the 2018 impact of all other U.S. tax reform provisions that were effective on January 1, 2018. 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, 2018 2017 (Unaudited) (Unaudited) $ $ Current 346,937 463,217 Deferred (356,616) 124,548 Total income taxes (benefit) expense (9,679) 587,765 Three months ended March 31, 2018 2017 (Unaudited) (Unaudited) $ $ (Loss) income before tax (1,128,615) 3,200,307 Provision for income taxes at PRC statutory income tax rate (25%) (282,154) 800,077 Impact of different tax rates in other jurisdictions 58,660 3,255 Effect of PRC preferential tax rate 6,453 (391,843) Other non-deductible expenses 16,576 16,547 Change in valuation allowance of deferred tax assets 190,786 159,729 Effective enterprise income tax (9,679) 587,765 3) Deferred tax assets, net 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. March 31, December 31, 2018 2017 (Unaudited) $ $ Tax loss carry-forward 1,425,204 991,766 Allowance for doubtful receivables 142,521 136,562 Impairment for inventory 269,234 222,289 Difference for sales cut-off 20,576 17,322 Deferred government grant 119,858 46,446 Property, plant and equipment subsidized by government grant 276,510 269,344 Impairment for property, plant and equipment 60,370 58,304 Total gross deferred tax assets 2,314,273 1,742,033 Valuation allowance (1,178,723) (991,766) Total net deferred tax assets 1,135,550 750,267 As of March 31, 2018, the Company had net operating loss carry-forwards in Hong Kong of $ 6,404,130 581,148 1,643,213 2022 The Company has deferred tax assets which consisted of tax loss carry-forwards and other items that can be carried forward to offset future taxable income. Management determined it is more likely than not that part of the deferred tax assets could not be utilized, so a valuation allowance was provided for as of March 31, 2018 and December 31, 2017. The net valuation allowance increased by approximately $ 0.2 0.2

Notes payable

Notes payable	3 Months Ended
	Mar. 31, 2018
Notes payable [Abstract]
Notes Payable Disclosure [Text Block]	9. 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 $ 58,833,089 54,859,478

Short-term loans

Short-term loans	3 Months Ended
	Mar. 31, 2018
Short-term loans [Abstract]
Short-term Debt [Text Block]	10. Short-term loans As of March 31, 2018 and December 31, 2017, short-term loans consisted of bank borrowings for working capital and capital expenditure purposes and were secured by personal guarantees executed by certain directors of the Company, time deposits with a carrying amount of $ 5,941,350 3,982,226 2,719,885 2,639,631 9,907,291 9,621,537 The loans were primarily obtained from two banks with interest rates ranging from 5.00 6.09 5.000 5.8725 111,713 259,837

Non-financial institution borro

Non-financial institution borrowings	3 Months Ended
	Mar. 31, 2018
Short-term loans [Abstract]
Non-Financial Institution Borrowings [Text Block]	11. Non-financial institution borrowings As of March 31, 2018, the Company obtained borrowings from a third party non-financial institution in an amount of $ 1,593,270 9,559,620 5.655 5.66 The interest expense of the above borrowings was $ 162,303 143,518

Lines of credit

Lines of credit	3 Months Ended
	Mar. 31, 2018
Lines of credit [Abstract]
Line of Credit Facilities [Text Block]	12. Lines of credit The Company entered into various credit contracts and revolving lines of credit, which were used for short-term loans and bank acceptance bills. As of March 31, 2018, the total and unused lines of credit were $85.1 million and $14.6 million with maturity dates from April 2018 to July 2019. As of December 31, 2017, the total and unused lines of credit were $79.8 million and $31.3 million with maturity dates from March 2018 to July 2019. These lines of credit were guaranteed by the Company’s Chief Executive Officer, Mr. Dang Yu Pan or Mr. Dang Yu Pan and his wife.

Earnings per share

Earnings per share	3 Months Ended
	Mar. 31, 2018
Earnings per share [Abstract]
Earnings Per Share [Text Block]	13. Earnings per share Three months ended March 31, 2018 2017 (Unaudited) (Unaudited) $ $ Numerator: Net (loss) income attributable to the Company (1,118,936) 2,535,649 Denominator: Weighted-average shares outstanding - Basic 15,509,658 15,119,693 - Dilutive effects of equity incentive awards - 179,336 - Diluted 15,509,658 15,299,029 Net (loss) income per share: - Basic (0.07) 0.17 - Diluted (0.07) 0.17 Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Potential dilutive securities are excluded from the calculation of diluted EPS in loss periods as their effect would be anti-dilutive. Due to the loss for for three months ended March 31, 2018, 955,542 200,000 145,000 540,001

Defined contribution plan

Defined contribution plan	3 Months Ended
	Mar. 31, 2018
Defined contribution plan [Abstract]
Pension and Other Postretirement Benefits Disclosure [Text Block]	14. 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 (“the 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 made related to the Benefits, the Company has no legal obligation. The total contributions made, which were expensed as incurred, were $ 653,957 504,520

Segment information

Segment information	3 Months Ended
	Mar. 31, 2018
Segment information [Abstract]
Segment Reporting Disclosure [Text Block]	15. 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. Three months ended March 31, 2018 2017 (Unaudited) (Unaudited) $ $ Net sales Lithium Business 36,596,655 27,490,494 Ni-MH Batteries and Accessories 13,186,798 12,527,313 New Materials - 1,849,041 Total 49,783,453 41,866,848 Cost of Sales Lithium Business 30,791,339 21,639,869 Ni-MH Batteries and Accessories 11,425,787 9,188,390 New Materials - 1,103,755 Total 42,217,126 31,932,014 Gross Profit Lithium Business 5,805,316 5,850,625 Ni-MH Batteries and Accessories 1,761,011 3,338,923 New Materials - 745,286 Total 7,566,327 9,934,834 March 31, December 31, 2018 2017 (Unaudited) $ $ Total Assets Lithium Business 191,951,616 171,881,450 Ni-MH Batteries and Accessories 52,571,957 48,383,088 Total 244,523,573 220,264,538 Three months ended March 31, 2018 2017 (Unaudited) (Unaudited) $ $ Net sales China Mainland 28,305,763 22,161,592 Asia, others 15,754,396 13,695,558 Europe 4,537,903 4,852,730 North America 1,164,831 1,058,132 South America - 61,737 Others 20,560 37,099 49,783,453 41,866,848 March 31, December 31, 2018 2017 (Unaudited) $ $ Accounts receivable China Mainland 40,629,764 37,636,478 Asia, others 11,819,346 15,294,527 Europe 3,299,588 5,189,859 North America 472,145 94,585 South America - 12,816 Others 20,118 24,734 56,240,961 58,252,999

Related party balance and trans

Related party balance and transaction	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	16. Related party balance and transaction March 31, December 31, 2018 2017 (Unaudited) $ $ Accounts receivable 921,432 632,704 Other receivable 430 533,134 Amount due from a related party- GZ Highpower 921,862 1,165,838 Other payable-investment (1) 780,702 - Amount due to a related party- V-power 780,702 - (1) The Company signed an investment agreement with an aggregate amount of RMB 4.9 0.8 49 Three months ended March 31, 2018 2017 (Unaudited) (Unaudited) $ $ Income: Sales 225,787 624,323 -GZ Highpower 225,787 - -Yipeng - 624,323 Rental income- Yipeng - 11,299 Expenses: Equipment rental fee- Yipeng - 162,302 Repayment: Other receivable- GZ Highpower 550,256 -

Subsequent event

Subsequent event	3 Months Ended
	Mar. 31, 2018
Subsequent event [Abstract]
Subsequent Events [Text Block]	17. Subsequent event The Company has evaluated subsequent events through the issuance of the unaudited condensed consolidated financial statements and no subsequent event is identified that would have required adjustment or disclosure in the consolidated financial statements.

Summary of significant accoun23

Summary of significant accounting policies (Policies)	3 Months Ended
	Mar. 31, 2018
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, 2017, filed with the SEC on April 4, 2018. 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, 2018, its consolidated results of operations for the three months ended March 31, 2018 and cash flows for the three months ended March 31, 2018, as applicable, have been made. Operating results for the three months period ended March 31, 2018 are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2018 or any future periods.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentrations of credit risk No customer accounted for 10 One supplier accounted for 21.2 10.5 No customer accounted for 10 10.1
Investment, Policy [Policy Text Block]	For an investee over which the Company holds less than 20% voting interest and has no ability to exercise significant influence, the investments are accounted for under the cost method. For an investee 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, 2018 and December 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.
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. ASC Topic 820 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. ASC Topic 820 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.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently issued accounting standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which was subsequently modified in August 2015 by ASU 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 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). In 2017, the FASB issued Accounting Standards Update (ASU) 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20), which was originally issued in ASU 2014-09. The amendments in this Update require that an entity to initially measure a retained non-controlling interest in a nonfinancial asset at fair value consistent with a how a retained non-controlling interest in a business is measured. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. It also impacts certain other areas, such as the accounting for costs to obtain or fulfill a contract. The standard also requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Management has adopted this standard effective January 1, 2018 using the modified-retrospective approach, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The adoption of ASC 606 did not have a material impact on the Company’s condensed consolidated balance sheet, statement of operations and statement of cash flows for the three months period ended March 31, 2018. See Note 3 for disclosures required by ASC 606 and the updated accounting policy for revenue recognition. On February 25, 2016, the FASB issued 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. 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 February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this Update also require certain disclosures about stranded tax effects. Public business entities should apply the amendments in ASU 2018-02 for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The Company is currently evaluating the impact of adopting ASU 2018-02 on its consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, Income Tax (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. This update adds SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 - the date on which the Tax Act was signed into law. The Company is currently evaluating the impact of adopting ASU 2018-05 on its consolidated financial statements. 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.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue [Table Text Block]	Three months ended March 31, 2018 Lithium Business Ni-MH Batteries and Consolidated Primary Geographic Markets (Unaudited) (Unaudited) (Unaudited) $ $ $ China Mainland 22,590,952 5,714,811 28,305,763 Asia, others 12,770,712 2,983,684 15,754,396 Europe 905,169 3,632,734 4,537,903 North America 329,822 835,009 1,164,831 Others - 20,560 20,560 Total sales 36,596,655 13,186,798 49,783,453

Accounts receivable, net (Table

Accounts receivable, net (Tables)	3 Months Ended
	Mar. 31, 2018
Accounts receivable, net [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	March 31, December 31, 2018 2017 (Unaudited) $ $ Accounts receivable 59,443,695 61,431,785 Less: allowance for doubtful accounts 3,202,734 3,178,786 56,240,961 58,252,999

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2018
Inventories [Abstract]
Schedule of Inventory, Current [Table Text Block]	March 31, December 31, 2018 2017 (Unaudited) $ $ Raw materials 31,539,229 21,428,315 Work in progress 10,503,750 6,931,486 Finished goods 12,960,846 14,284,563 Packing materials 30,817 36,797 Consumables 312,824 265,483 55,347,466 42,946,644

Property, plant and equipment27

Property, plant and equipment, net (Tables)	3 Months Ended
	Mar. 31, 2018
Property, plant and equipment, net [Abstract]
Property, Plant and Equipment [Table Text Block]	March 31, December 31, 2018 2017 (Unaudited) $ $ Cost Construction in progress 1,624,402 1,330,643 Furniture, fixtures and office equipment 6,326,512 5,794,983 Leasehold improvement 7,404,622 7,080,409 Machinery and equipment 34,968,872 33,176,416 Motor vehicles 1,651,532 1,498,605 Buildings 20,913,122 20,169,197 72,889,062 69,050,253 Less: accumulated depreciation 24,699,844 22,529,477 48,189,218 46,520,776

Long-term investment (Tables)

Long-term investment (Tables)	3 Months Ended
	Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Long Term Investment [Table Text Block]	March 31, 2018 December 31, 2017 (Unaudited) Interest% Interest% $ $ Equity method investment -Ganzhou Highpower Technology Company Limited (“GZ Highpower”) (1) 8,558,347 31.294 % 8,102,520 31.294 % -Shenzhen V-power Innovative Technology Co., Ltd (“V-power”) (2) 780,702 49.000 % - N/A Cost method investment -Huizhou Yipeng Energy Technology Co Ltd. (“Yipeng”) (3) 1,870,393 4.654 % 1,803,859 4.654 % 11,209,442 9,906,379 (1) Investment in GZ Highpower On December 21, 2017, after the completion of the capital increase to GZ Highpower by other shareholders, the Company lost the controlling power over GZ Highpower and deconsolidated GZ Highpower. Thereafter, the investment was recorded under the equity method. The equity in earnings of investee was $ 156,250 (2) Investment in V-power On February 28, 2018, the Company signed an investment agreement (the “Agreement”) with a related company and a group of individuals (the “Founder Team”) with an aggregate amount of RMB 4.9 0.8 49 In addition, the Company agrees to transfer the 15% of original equity interest of V-power to the Founder Team as compensation under voluntary assignment as any of the following requirements met: 1. annual sales revenue higher or equal to RMB30 million before the first capital increase of V-power; 2. valuation of V-power higher or equal to RMB30 million before equity issuance. Since V-power did not commence any operation, there was no profit or loss for the three months ended March 31, 2018. (3) Investment in Yipeng In 2017, after the completion of the capital injection to Yipeng and the equity transfer payment received by the Company from the other shareholder, the Company’s equity ownership in Yipeng decreased from 35.4 4.654 The equity in earnings of investee was $ 146,932

Taxation (Tables)

Taxation (Tables)	3 Months Ended
	Mar. 31, 2018
Taxation [Abstract]
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	The components of the provision for income taxes (benefit) expense are: Three months ended March 31, 2018 2017 (Unaudited) (Unaudited) $ $ Current 346,937 463,217 Deferred (356,616) 124,548 Total income taxes (benefit) expense (9,679) 587,765
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	The reconciliation of income taxes expenses computed at the PRC statutory tax rate to income tax (benefit) expense is as follows: Three months ended March 31, 2018 2017 (Unaudited) (Unaudited) $ $ (Loss) income before tax (1,128,615) 3,200,307 Provision for income taxes at PRC statutory income tax rate (25%) (282,154) 800,077 Impact of different tax rates in other jurisdictions 58,660 3,255 Effect of PRC preferential tax rate 6,453 (391,843) Other non-deductible expenses 16,576 16,547 Change in valuation allowance of deferred tax assets 190,786 159,729 Effective enterprise income tax (9,679) 587,765
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	The following represents the tax effect of each major type of temporary difference. March 31, December 31, 2018 2017 (Unaudited) $ $ Tax loss carry-forward 1,425,204 991,766 Allowance for doubtful receivables 142,521 136,562 Impairment for inventory 269,234 222,289 Difference for sales cut-off 20,576 17,322 Deferred government grant 119,858 46,446 Property, plant and equipment subsidized by government grant 276,510 269,344 Impairment for property, plant and equipment 60,370 58,304 Total gross deferred tax assets 2,314,273 1,742,033 Valuation allowance (1,178,723) (991,766) Total net deferred tax assets 1,135,550 750,267

Earnings per share (Tables)

Earnings per share (Tables)	3 Months Ended
	Mar. 31, 2018
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 three months ended March 31, 2018 and 2017. Three months ended March 31, 2018 2017 (Unaudited) (Unaudited) $ $ Numerator: Net (loss) income attributable to the Company (1,118,936) 2,535,649 Denominator: Weighted-average shares outstanding - Basic 15,509,658 15,119,693 - Dilutive effects of equity incentive awards - 179,336 - Diluted 15,509,658 15,299,029 Net (loss) income per share: - Basic (0.07) 0.17 - Diluted (0.07) 0.17

Segment information (Tables)

Segment information (Tables)	3 Months Ended
	Mar. 31, 2018
Segment information [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Net sales, cost of sales, gross profit and total assets by segments is set out as follows: Three months ended March 31, 2018 2017 (Unaudited) (Unaudited) $ $ Net sales Lithium Business 36,596,655 27,490,494 Ni-MH Batteries and Accessories 13,186,798 12,527,313 New Materials - 1,849,041 Total 49,783,453 41,866,848 Cost of Sales Lithium Business 30,791,339 21,639,869 Ni-MH Batteries and Accessories 11,425,787 9,188,390 New Materials - 1,103,755 Total 42,217,126 31,932,014 Gross Profit Lithium Business 5,805,316 5,850,625 Ni-MH Batteries and Accessories 1,761,011 3,338,923 New Materials - 745,286 Total 7,566,327 9,934,834 March 31, December 31, 2018 2017 (Unaudited) $ $ Total Assets Lithium Business 191,951,616 171,881,450 Ni-MH Batteries and Accessories 52,571,957 48,383,088 Total 244,523,573 220,264,538
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 locations of the Company’s customers is set out as follows: Three months ended March 31, 2018 2017 (Unaudited) (Unaudited) $ $ Net sales China Mainland 28,305,763 22,161,592 Asia, others 15,754,396 13,695,558 Europe 4,537,903 4,852,730 North America 1,164,831 1,058,132 South America - 61,737 Others 20,560 37,099 49,783,453 41,866,848 March 31, December 31, 2018 2017 (Unaudited) $ $ Accounts receivable China Mainland 40,629,764 37,636,478 Asia, others 11,819,346 15,294,527 Europe 3,299,588 5,189,859 North America 472,145 94,585 South America - 12,816 Others 20,118 24,734 56,240,961 58,252,999

Related party balance and tra32

Related party balance and transaction (Tables)	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Summary of Related Party Outstandings [Table Text Block]	March 31, December 31, 2018 2017 (Unaudited) $ $ Accounts receivable 921,432 632,704 Other receivable 430 533,134 Amount due from a related party- GZ Highpower 921,862 1,165,838 Other payable-investment (1) 780,702 - Amount due to a related party- V-power 780,702 - (1) The Company signed an investment agreement with an aggregate amount of RMB 4.9 0.8 49
Schedule of Related Party Transactions [Table Text Block]	Related party transaction Three months ended March 31, 2018 2017 (Unaudited) (Unaudited) $ $ Income: Sales 225,787 624,323 -GZ Highpower 225,787 - -Yipeng - 624,323 Rental income- Yipeng - 11,299 Expenses: Equipment rental fee- Yipeng - 162,302 Repayment: Other receivable- GZ Highpower 550,256 -

The Company and basis of pres33

The Company and basis of presentation (Details Textual)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Accounts Receivable [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Concentration Risk, Percentage	10.00%		10.10%
Supplier Concentration Risk [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Concentration Risk, Percentage	21.20%	10.50%
Hong Kong Highpower Technology Company Limited [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Equity Method Investment, Ownership Percentage	100.00%	10.00%

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue, Net	$ 49,783,453	$ 41,866,848
Lithium Business [Member]
Revenue, Net	36,596,655
Ni-MH Batteries and Accessories [Member]
Revenue, Net	13,186,798
China Mainland [Member]
Revenue, Net	28,305,763	22,161,592
China Mainland [Member] | Lithium Business [Member]
Revenue, Net	22,590,952
China Mainland [Member] | Ni-MH Batteries and Accessories [Member]
Revenue, Net	5,714,811
Asia, others [Member]
Revenue, Net	15,754,396	13,695,558
Asia, others [Member] | Lithium Business [Member]
Revenue, Net	12,770,712
Asia, others [Member] | Ni-MH Batteries and Accessories [Member]
Revenue, Net	2,983,684
Europe [Member]
Revenue, Net	4,537,903	4,852,730
Europe [Member] | Lithium Business [Member]
Revenue, Net	905,169
Europe [Member] | Ni-MH Batteries and Accessories [Member]
Revenue, Net	3,632,734
North America [Member]
Revenue, Net	1,164,831	1,058,132
North America [Member] | Lithium Business [Member]
Revenue, Net	329,822
North America [Member] | Ni-MH Batteries and Accessories [Member]
Revenue, Net	835,009
Other [Member]
Revenue, Net	20,560	$ 37,099
Other [Member] | Lithium Business [Member]
Revenue, Net	0
Other [Member] | Ni-MH Batteries and Accessories [Member]
Revenue, Net	$ 20,560

Accounts receivable, net (Detai

Accounts receivable, net (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Accounts receivable	$ 59,443,695	$ 61,431,785
Less: allowance for doubtful accounts	3,202,734	3,178,786
Accounts receivable, net	$ 56,240,961	$ 58,252,999

Inventories (Details)

Inventories (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Raw materials	$ 31,539,229	$ 21,428,315
Work in progress	10,503,750	6,931,486
Finished goods	12,960,846	14,284,563
Packing materials	30,817	36,797
Consumables	312,824	265,483
Inventories	$ 55,347,466	$ 42,946,644

Property, plant and equipment37

Property, plant and equipment, net (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Cost
Construction in progress	$ 1,624,402	$ 1,330,643
Furniture, fixtures and office equipment	6,326,512	5,794,983
Leasehold improvement	7,404,622	7,080,409
Machinery and equipment	34,968,872	33,176,416
Motor vehicles	1,651,532	1,498,605
Building	20,913,122	20,169,197
Property, plant and equipment, cost	72,889,062	69,050,253
Less: accumulated depreciation	24,699,844	22,529,477
Property, plant and equipment, net	$ 48,189,218	$ 46,520,776

Property, plant and equipment38

Property, plant and equipment, net (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Depreciation	$ 1,445,700	$ 1,240,126
Property, Plant And Equipment, Deductions For Government Grants			$ 263,948
Pledged Assets Not Separately Reported Property Plant And Equipment	9,907,291		9,621,537
Huizhou Facilities [Member]
Property, Plant and Equipment [Line Items]
Pledged Assets Not Separately Reported Property Plant And Equipment	9,502,186		9,224,694
Ganzhou Facilities [Member]
Property, Plant and Equipment [Line Items]
Pledged Assets Not Separately Reported Property Plant And Equipment	$ 405,105		$ 396,843

Long-term investment (Details)

Long-term investment (Details) - USD ($)		Mar. 31, 2018	Dec. 31, 2017
Long-term Investments		$ 11,209,442	$ 9,906,379
Ganzhou Highpower Technology Company Limited [Member]
Equity method investment	[1]	$ 8,558,347	$ 8,102,520
Equity method investment, Ownership Percentage	[1]	31.294%	31.294%
Shenzhen Highpower Technology Company Limited [Member]
Equity method investment	[2]	$ 780,702	$ 0
Equity method investment, Ownership Percentage	[2]	49.00%
Huizhou Yipeng Energy Technology Co Ltd [Member]
Cost method investment	[3]	$ 1,870,393	$ 1,803,859
Cost Method Investments Ownership Percentage		4.654%	4.654%
[1]	Investment in GZ Highpower On December 21, 2017, after the completion of the capital increase to GZ Highpower by other shareholders, the Company lost the controlling power over GZ Highpower and deconsolidated GZ Highpower. Thereafter, the investment was recorded under the equity method. The equity in earnings of investee was $156,250 for the three months ended March 31, 2018.
[2]	Investment in V-power On February 28, 2018, the Company signed an investment agreement (the “Agreement”) with a related company and a group of individuals (the “Founder Team”) with an aggregate amount of RMB4.9 million (approximately $0.8 million) for 49% of the equity interest of V-power, which was recorded under the equity method. Pursuant to the terms of the Agreement, the Company shall complete the capital injection to V-power no later than December 31, 2018. In addition, the Company agrees to transfer the 15% of original equity interest of V-power to the Founder Team as compensation under voluntary assignment as any of the following requirements met: 1. annual sales revenue higher or equal to RMB30 million before the first capital increase of V-power; 2. valuation of V-power higher or equal to RMB30 million before equity issuance. As of March 31, 2018, no capital injection was made by the Company, and the unpaid amount was recorded as amount due to a related party (See Note 16). Since V-power did not commence any operation, there was no profit or loss for the three months ended March 31, 2018.
[3]	Investment in Yipeng In 2017, after the completion of the capital injection to Yipeng and the equity transfer payment received by the Company from the other shareholder, the Company’s equity ownership in Yipeng decreased from 35.4% to 4.654%, and the Company lost the ability to exercises significant influence over Yipeng, discontinued the use of equity mehod and applied the cost methed in accounting. The equity in earnings of investee was $146,932 for the three months ended March 31, 2017.

Long-term investment (Details T

Long-term investment (Details Textual) ¥ in Millions	1 Months Ended	3 Months Ended
	Feb. 28, 2018USD ($)	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Feb. 28, 2018CNY (¥)	Dec. 31, 2017
Income (Loss) from Equity Method Investments		$ 156,250	$ 146,932
Equity Method Investment, Additional Information	In addition, the Company agrees to transfer the 15% of original equity interest of V-power to the Founder Team as compensation under voluntary assignment as any of the following requirements met: 1. annual sales revenue higher or equal to RMB30 million before the first capital increase of V-power; 2. valuation of V-power higher or equal to RMB30 million before equity issuance.
Minimum [Member]
Cost Method Investments Ownership Percentage					35.40%
Maximum [Member]
Cost Method Investments Ownership Percentage					4.654%
Shenzhen V-power Innovative Technology Co Ltd [Member]
Equity Method Investments	$ 800,000			¥ 4.9
Equity Method Investment, Ownership Percentage	49.00%			49.00%

Taxation (Details)

Taxation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule Of Taxation [Line Items]
Current	$ 346,937	$ 463,217
Deferred	(356,616)	124,548
Total income taxes (benefit) expense	$ (9,679)	$ 587,765

Taxation (Details 1)

Taxation (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule Of Taxation [Line Items]
(Loss) income before tax	$ (1,128,615)	$ 3,200,307
Provision for income taxes at PRC statutory income tax rate (25%)	(282,154)	800,077
Impact of different tax rates in other jurisdictions	58,660	3,255
Effect of PRC preferential tax rate	6,453	(391,843)
Other non-deductible expenses	16,576	16,547
Change in valuation allowance of deferred tax assets	190,786	159,729
Total income taxes (benefit) expense	$ (9,679)	$ 587,765

Taxation (Details 2)

Taxation (Details 2) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Schedule Of Taxation [Line Items]
Tax loss carry-forward	$ 1,425,204	$ 991,766
Allowance for doubtful receivables	142,521	136,562
Impairment for inventory	269,234	222,289
Difference for sales cut-off	20,576	17,322
Deferred government grant	119,858	46,446
Property, plant and equipment subsidized by government grant	276,510	269,344
Impairment for property, plant and equipment	60,370	58,304
Total gross deferred tax assets	2,314,273	1,742,033
Valuation allowance	(1,178,723)	(991,766)
Total net deferred tax assets	$ 1,135,550	$ 750,267

Taxation (Details Textual)

Taxation (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2018
Schedule Of Taxation [Line Items]
Value Added Tax Percentage Of Revenue	17.00%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%
Valuation Allowance Deferred Tax Asset Change In Decrease	$ 200,000	$ 200,000
Scenario, Plan [Member]
Schedule Of Taxation [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%
HONG KONG
Schedule Of Taxation [Line Items]
Corporate Income Tax Percentage	16.50%
Operating Loss Carryforwards	$ 6,404,130
CHINA
Schedule Of Taxation [Line Items]
Income Tax Exemption Percentage	15.00%
Operating Loss Carryforwards	$ 1,643,213
Operating Loss Carryforwards, Expiration Year	2,022
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%
UNITED STATES
Schedule Of Taxation [Line Items]
Operating Loss Carryforwards	$ 581,148

Notes payable (Details Textual)

Notes payable (Details Textual) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Short-term Bank Loans and Notes Payable	$ 58,833,089	$ 54,859,478

Short-term loans (Details Textu

Short-term loans (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Short-term Debt [Line Items]
Pledged Assets Not Separately Reported Property Plant And Equipment	$ 9,907,291		$ 9,621,537
Interest Expense, Short-term Borrowings, Total	111,713	$ 259,837
Chief Executive Officer [Member]
Short-term Debt [Line Items]
Time Deposits	5,941,350		3,982,226
Bank Time Deposits [Member]
Short-term Debt [Line Items]
Restricted Cash and Cash Equivalents	$ 2,719,885		$ 2,639,631
Minimum [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.00%		5.00%
Maximum [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.09%		5.8725%

Non-financial institution bor47

Non-financial institution borrowings (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Proceeds from Other Short-term Debt	$ 0	$ 8,726,892
Third Party Nonfinancial Institution [Member]
Debt Instrument, Interest Rate, Effective Percentage	5.655%
Proceeds from Other Short-term Debt	$ 1,593,270
Individual Lender [Member]
Debt Instrument, Interest Rate, Effective Percentage	5.66%
Proceeds from Other Short-term Debt	$ 9,559,620
Other Debt Obligations [Member]
Interest Expense, Debt	$ 162,303	$ 143,518

Lines of credit (Details Textua

Lines of credit (Details Textual) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Long-term Line of Credit	$ 85.1	$ 79.8
Line of Credit Facility, Remaining Borrowing Capacity	$ 14.6	$ 31.3
Line of Credit Facility, Initiation Date	Apr. 1, 2018	Mar. 1, 2018
Line of Credit Facility, Expiration Date	Jul. 31, 2019	Jul. 31, 2019

Earnings per share (Details)

Earnings per share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Numerator:
Net (loss) income attributable to the Company	$ (1,118,936)	$ 2,535,649
Weighted-average shares outstanding
- Basic	15,509,658	15,119,693
- Dilutive effects of equity incentive awards	0	179,336
- Diluted	15,509,658	15,299,029
Net (loss) income per share:
- Basic	$ (0.07)	$ 0.17
- Diluted	$ (0.07)	$ 0.17

Earnings per share (Details Tex

Earnings per share (Details Textual) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	200,000	540,001
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	955,542	145,000

Defined contribution plan (Deta

Defined contribution plan (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Defined Contribution Plan, Cost Recognized	$ 653,957	$ 504,520

Segment information (Details)

Segment information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Net sales	$ 49,783,453	$ 41,866,848
Cost of Sales	42,217,126	31,932,014
Gross Profit	7,566,327	9,934,834
Lithium Batteries [Member]
Segment Reporting Information [Line Items]
Net sales	36,596,655	27,490,494
Cost of Sales	30,791,339	21,639,869
Gross Profit	5,805,316	5,850,625
Ni-MH Batteries [Member]
Segment Reporting Information [Line Items]
Net sales	13,186,798	12,527,313
Cost of Sales	11,425,787	9,188,390
Gross Profit	1,761,011	3,338,923
New Materials [Member]
Segment Reporting Information [Line Items]
Net sales	0	1,849,041
Cost of Sales	0	1,103,755
Gross Profit	$ 0	$ 745,286

Segment information (Details 1)

Segment information (Details 1) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total Assets	$ 244,523,573	$ 220,264,538
Lithium Batteries [Member]
Segment Reporting Information [Line Items]
Total Assets	191,951,616	171,881,450
Ni-MH Batteries [Member]
Segment Reporting Information [Line Items]
Total Assets	$ 52,571,957	$ 48,383,088

Segment information (Details 2)

Segment information (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 49,783,453	$ 41,866,848
China Mainland [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	28,305,763	22,161,592
Asia, others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	15,754,396	13,695,558
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	4,537,903	4,852,730
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	1,164,831	1,058,132
South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	0	61,737
Others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 20,560	$ 37,099

Segment information (Details 3)

Segment information (Details 3) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	$ 56,240,961	$ 58,252,999
China Mainland [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	40,629,764	37,636,478
Asia, others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	11,819,346	15,294,527
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	3,299,588	5,189,859
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	472,145	94,585
South America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	0	12,816
Others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	$ 20,118	$ 24,734

Related party balance and tra56

Related party balance and transaction (Details) - USD ($)		Mar. 31, 2018	Dec. 31, 2017
Accounts receivable		$ 921,432	$ 632,704
Other receivable		430	533,134
Amount due from a related party- GZ Highpower		921,862	1,165,838
Other payable-investment (1)	[1]	780,702	0
Amount due to a related party- V-power		$ 780,702	$ 0
[1]	The Company signed an investment agreement with an aggregate amount of RMB4.9 million (approximately $0.8 million) in investing for 49% of the equity interest of V-power which was set up on March 1, 2018 (See Note 7).

Related party balance and tra57

Related party balance and transaction (Details1) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income:
Sales	$ 225,787	$ 624,323
GZ Highpower [Member]
Income:
Sales	225,787	0
Expenses:
Other receivable	550,256	0
Yipeng [Member]
Income:
Sales	0	624,323
Rental income	0	11,299
Expenses:
Equipment rental fee	$ 0	$ 162,302

Related party balance and tra58

Related party balance and transaction (Details Textual) - Shenzhen V-power Innovative Technology Co Ltd [Member] ¥ in Millions, $ in Millions	Feb. 28, 2018USD ($)	Feb. 28, 2018CNY (¥)
Equity Method Investments	$ 0.8	¥ 4.9
Equity Method Investment, Ownership Percentage	49.00%	49.00%