Highpower International (HPJ) 10-Q 13 Aug 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 13, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Registrant Name	Highpower International, Inc.
Entity Central Index Key	1,368,308
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	HPJ
Entity Common Stock, Shares Outstanding		15,559,658

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current Assets:
Cash	$ 7,280,576	$ 14,502,171
Restricted cash	30,159,389	25,953,946
Accounts receivable, net	61,440,575	58,252,999
Amount due from a related party	432,320	1,165,838
Notes receivable	1,611,947	2,606,517
Advances to suppliers	8,031,483	6,050,531
Prepayments and other receivables	9,401,564	4,268,527
Foreign exchange derivative assets	0	236,436
Inventories	69,200,672	42,946,644
Total Current Assets	187,558,526	155,983,609
Property, plant and equipment, net	48,135,151	46,520,776
Long-term prepayments	3,992,080	3,715,445
Land use rights, net	2,564,161	2,639,631
Other assets	747,186	748,431
Deferred tax assets, net	1,219,521	750,267
Long-term investments	10,790,882	9,906,379
TOTAL ASSETS	255,007,507	220,264,538
Current Liabilities:
Accounts payable	80,534,723	60,368,012
Deferred government grant	758,059	309,638
Short-term loans	25,080,521	10,128,646
Non-financial institution borrowings	9,069,335	10,756,158
Notes payable	51,710,779	54,859,478
Foreign exchange derivative liabilities	689,790	0
Amount due to a related party	423,236	0
Other payables and accrued liabilities	15,338,570	12,243,345
Income taxes payable	3,225,973	3,609,391
Total Current Liabilities	186,830,986	152,274,668
Income taxes payable, noncurrent	0	777,685
TOTAL LIABILITIES	186,830,986	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, 15,559,658 shares issued and outstanding at June 30, 2018 and 15,509,658 at December 31, 2017, respectively)	1,556	1,551
Additional paid-in capital	13,410,368	12,709,756
Statutory and other reserves	6,549,815	6,549,815
Retained earnings	46,076,947	44,481,568
Accumulated other comprehensive income	2,137,835	3,469,495
TOTAL EQUITY	68,176,521	67,212,185
TOTAL LIABILITIES AND EQUITY	$ 255,007,507	$ 220,264,538

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 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	15,559,658	15,509,658
Common Stock, shares outstanding	15,559,658	15,509,658

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net sales	$ 64,923,960	$ 51,699,930	$ 114,707,413	$ 93,566,778
Cost of sales	(53,614,034)	(39,628,164)	(95,831,160)	(71,560,178)
Gross profit	11,309,926	12,071,766	18,876,253	22,006,600
Research and development expenses	(3,592,760)	(2,137,286)	(6,154,597)	(3,951,216)
Selling and distribution expenses	(2,121,650)	(1,722,910)	(4,096,746)	(3,361,223)
General and administrative expenses	(3,910,188)	(3,016,401)	(8,024,998)	(6,074,963)
Foreign currency transaction gain (loss)	1,670,932	(514,624)	656,239	(828,502)
Total operating expenses	(7,953,666)	(7,391,221)	(17,620,102)	(14,215,904)
Income from operations	3,356,260	4,680,545	1,256,151	7,790,696
Changes in fair value of warrant liability	0	31,811	0	259
Changes in fair value of foreign exchange derivative assets (liabilities)	(1,125,140)	0	(421,425)	0
Government grants	988,679	209,297	1,318,499	558,812
Other income	56,581	67,068	80,142	295,646
Equity in earnings (loss) of investees	160,070	(41,607)	316,320	105,325
Gain on dilution in equity method investee	0	491,325	0	491,325
Interest expenses	(312,814)	(380,531)	(554,666)	(983,848)
Income before taxes	3,123,636	5,057,908	1,995,021	8,258,215
Income taxes expenses	(409,321)	(595,708)	(399,642)	(1,183,473)
Net income	2,714,315	4,462,200	1,595,379	7,074,742
Less: net income attributable to non-controlling interest	0	90,963	0	167,856
Net income attributable to the Company	2,714,315	4,371,237	1,595,379	6,906,886
Comprehensive income
Net income	2,714,315	4,462,200	1,595,379	7,074,742
Foreign currency translation (loss) gain	(4,168,216)	1,508,714	(1,331,660)	1,484,713
Comprehensive (loss) income	(1,453,901)	5,970,914	263,719	8,559,455
Less: comprehensive income attributable to non-controlling interest	0	98,795	0	178,346
Comprehensive (loss) income attributable to the Company	$ (1,453,901)	$ 5,872,119	$ 263,719	$ 8,381,109
Earnings per share of common stock attributable to the Company
- Basic	$ 0.17	$ 0.29	$ 0.10	$ 0.45
- Diluted	$ 0.17	$ 0.28	$ 0.10	$ 0.45
Weighted average number of common stock outstanding
- Basic	15,556,361	15,317,101	15,533,139	15,218,820
- Diluted	15,629,413	15,479,357	15,619,771	15,304,773

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net income	$ 1,595,379	$ 7,074,742
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	3,003,872	2,429,982
(Reversal) allowance for doubtful accounts	(472,799)	17,994
Loss on disposal of property, plant and equipment	159,458	25,218
Deferred tax	(498,878)	263,673
Changes in fair value of foreign exchange derivative assets (liabilities)	955,790	0
Equity in earnings of investees	(316,320)	(105,325)
Gain on dilution in equity method investee	0	(491,325)
Share based compensation	488,117	44,815
Changes in fair value of warrant liability	0	(259)
Changes in operating assets and liabilities:
Accounts receivable	(3,877,577)	4,390,991
Notes receivable	986,591	(1,057,366)
Advances to suppliers	(2,154,883)	0
Prepayments and other receivables	(4,921,059)	(3,799,960)
Amount due from a related party	740,408	5,178,499
Amount due to a related party	0	(1,480,335)
Inventories	(27,915,901)	(9,595,161)
Accounts payable	21,683,401	(494,812)
Deferred government grant	469,895	109,892
Other payables and accrued liabilities	3,578,815	(2,145,295)
Income taxes payable	(1,140,753)	(227,668)
Net cash flows (used in) provided by operating activities	(7,636,444)	138,300
Cash flows from investing activities
Acquisitions of property, plant and equipment	(5,681,723)	(5,199,130)
Payment for long-term investment	(328,927)	0
Net cash flows used in investing activities	(6,010,650)	(5,199,130)
Cash flows from financing activities
Proceeds from short-term loans	15,664,587	2,916,017
Repayments of short-term loans	0	(2,841,696)
Proceeds from non-financial institution borrowings	0	10,200,959
Repayments of non-financial institution borrowings	(1,566,318)	(2,331,648)
Proceeds from notes payable	53,584,205	40,861,835
Repayments of notes payable	(55,920,682)	(31,049,819)
Proceeds from exercise of employee options	0	623,806
Net cash flows provided by financing activities	11,761,792	18,379,454
Effect of foreign currency translation on cash and restricted cash	(1,130,850)	1,387,318
Net (decrease) increase in cash and restricted cash	(3,016,152)	14,705,942
Cash and restricted cash - beginning of period	40,456,117	20,538,033
Cash and restricted cash - end of period	37,439,965	35,243,975
Cash paid for:
Income taxes	2,039,273	1,147,467
Interest expenses	1,002,653	948,831
Non-cash transactions
Shares issued for legal case settlement	212,500	0
Offset of deferred income related to government grant and property, plant and equipment	$ 0	$ 85,571

The Company and basis of presen

The Company and basis of presentation	6 Months Ended
	Jun. 30, 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 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 June 30, 2018, its consolidated results of operations for the three and six months ended June 30, 2018 and cash flows for the six months ended June 30, 2018, as applicable, have been made. Operating results for the three and six months period ended June 30, 2018 are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2018 or any future periods. Concentrations of credit risk No customer accounted for 10.0 One supplier accounted for 12.0 13.3 No customer accounted for 10.0 10.1

Summary of significant accounti

Summary of significant accounting policies	6 Months Ended
	Jun. 30, 2018
Summary of significant accounting policies [Abstract]
Significant Accounting Policies [Text Block]	2. Summary of significant accounting policies 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. 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. 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 six months period ended June 30, 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. 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. In July 2018, the FASB issued Accounting Standards Update (ASU) 2018-11, Lease (Topic 842) Targeted Improvements. The amendments in this Update provide entities with an additional (and optional) transition method to adopt the new leases standard and provide lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (Topic 606). The Company is currently evaluating the impact of adopting ASU 2016-02 and ASU 2018-11 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	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer [Text Block]	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 June 30, 2018 Six months ended June 30, 2018 Lithium Ni-MH Consolidated Lithium Ni-MH Consolidated (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ $ $ Primary Geographic Markets China Mainland 24,282,910 8,597,095 32,880,005 46,873,862 14,311,906 61,185,768 Asia, others 22,323,852 2,860,048 25,183,900 35,094,564 5,843,732 40,938,296 Europe 1,161,586 3,687,774 4,849,360 2,066,755 7,320,508 9,387,263 North America 735,508 1,262,735 1,998,243 1,065,330 2,097,744 3,163,074 Others - 12,452 12,452 - 33,012 33,012 Total sales 48,503,856 16,420,104 64,923,960 85,100,511 29,606,902 114,707,413 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 is 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	6 Months Ended
	Jun. 30, 2018
Accounts receivable, net [Abstract]
Accounts Receivable [Text Block]	Accounts receivable, net June 30, December 31, 2018 2017 (Unaudited) $ $ Accounts receivable 64,623,597 61,431,785 Less: allowance for doubtful accounts 3,183,022 3,178,786 61,440,575 58,252,999

Inventories

Inventories	6 Months Ended
	Jun. 30, 2018
Inventories [Abstract]
Inventory Disclosure [Text Block]	5. Inventories June 30, December 31, 2018 2017 (Unaudited) $ $ Raw materials 36,615,871 21,428,315 Work in progress 13,137,127 6,931,486 Finished goods 19,133,423 14,284,563 Packing materials 23,777 36,797 Consumables 290,474 265,483 69,200,672 42,946,644

Property, plant and equipment,

Property, plant and equipment, net	6 Months Ended
	Jun. 30, 2018
Property, plant and equipment, net [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	6. Property, plant and equipment, net June 30, December 31, 2018 2017 (Unaudited) $ $ Cost Construction in progress 2,122,511 1,330,643 Furniture, fixtures and office equipment 6,632,609 5,794,983 Leasehold improvement 7,048,452 7,080,409 Machinery and equipment 35,538,190 33,176,416 Motor vehicles 1,556,477 1,498,605 Buildings 19,840,548 20,169,197 72,738,787 69,050,253 Less: accumulated depreciation 24,603,636 22,529,477 48,135,151 46,520,776 The Company recorded depreciation expenses of $ 2,945,238 2,361,482 1,499,538 1,121,356 During the six months ended June 30, 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 $ 8,955,311 9,224,694 The building located in Shenzhen, Guangdong was pledged as collateral for bank loans. The net carrying amount of the buildings was $ 378,280 396,843

Long-term investments

Long-term investments	6 Months Ended
	Jun. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]
Long-term investments [Text Block]	7. Long-term investments June 30, 2018 December 31, 2017 (Unaudited) $ Interest% $ Interest% Equity method investments -Ganzhou Highpower Technology Company Limited (“GZ Highpower”) (1) 8,294,952 31.294 % 8,102,520 31.294 % -Shenzhen V-power Innovative Technology Co., Ltd (“V-power”) (2) 721,464 49.000 % - N/A Cost method investment -Huizhou Yipeng Energy Technology Co Ltd. (“Yipeng”) (3) 1,774,466 4.654 % 1,803,859 4.654 % 10,790,882 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 $ 179,964 336,214 (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 0.7 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. 2.1 0.3 The equity in loss of investee was $ 19,894 (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 loss of investee was $ 41,607 105,325

Taxation

Taxation	6 Months Ended
	Jun. 30, 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 which was changed from 17 16 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 June 30, 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 currently does not expect to incur GILTI in 2018. The Company has not determined its accounting policy with respect to GILTI and has therefore included the 2018 estimate of current year GILTI, if any, 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 Six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Current 551,583 456,583 898,520 919,800 Deferred (142,262) 139,125 (498,878) 263,673 Total income taxes expenses 409,321 595,708 399,642 1,183,473 Three months ended Six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Income before tax 3,123,636 5,057,908 1,995,021 8,258,215 Provision for income taxes at PRC statutory income tax rate (25%) 780,909 1,264,477 498,755 2,064,554 Impact of different tax rates in other jurisdictions 37,886 3,382 96,546 6,637 Effect of PRC preferential tax rate (272,880) (397,140) (266,427) (788,983) R&D expenses eligible for super deduction (334,892) (442,939) (334,892) (442,939) Other non-deductible expenses 32,175 17,448 48,751 33,995 Change in valuation allowance of deferred tax assets 166,123 150,480 356,909 310,209 Effective enterprise income tax expenses 409,321 595,708 399,642 1,183,473 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. June 30, December 31, 2018 2017 (Unaudited) $ $ Tax loss carry-forward 1,767,265 991,766 Allowance for doubtful receivables 64,294 136,562 Impairment for inventory 296,516 222,289 Difference for sales cut-off 10,489 17,322 Deferred government grant 113,709 46,446 Property, plant and equipment subsidized by government grant 255,070 269,344 Impairment for property, plant and equipment 57,273 58,304 Total gross deferred tax assets 2,564,616 1,742,033 Valuation allowance (1,345,095) (991,766) Total net deferred tax assets 1,219,521 750,267 As of June 30, 2018, the Company had net operating loss carry-forwards in Hong Kong of $ 6,522,195 1,280,635 2,814,462 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 June 30, 2018 and December 31, 2017. The net valuation allowance increased by approximately $ 0.2 0.2 0.4 0.3

Notes payable

Notes payable	6 Months Ended
	Jun. 30, 2018
Notes payable [Abstract]
Notes Payable Disclosure [Text Block]	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 $ 51,710,779 54,859,478

Short-term loans

Short-term loans	6 Months Ended
	Jun. 30, 2018
Short-term loans [Abstract]
Short-term Debt [Text Block]	10. Short-term loans As of June 30, 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 $ 5,636,635 3,982,226 2,564,161 2,639,631 9,333,591 9,621,537 The loans were primarily obtained from two banks with interest rates ranging from 5.0000 6.5102 5.0000 5.8725 118,886 277,319

Non-financial institution borro

Non-financial institution borrowings	6 Months Ended
	Jun. 30, 2018
Short-term loans [Abstract]
Non-Financial Institution Borrowings [Text Block]	Non-financial institution borrowings As of June 30, 2018, the Company obtained borrowings from a third-party individual in an amount of $ 9,069,335 5.66 The interest expense of the above borrowings was $ 296,963 297,753 134,660 154,235

Lines of credit

Lines of credit	6 Months Ended
	Jun. 30, 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 June 30, 2018, the total and unused lines of credit were $ 87.6 22.4 79.8 31.3 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. The Company’s buildings and the land use right were pledged as collateral for these line of credit.

Earnings per share

Earnings per share	6 Months Ended
	Jun. 30, 2018
Earnings per share [Abstract]
Earnings Per Share [Text Block]	13. Earnings per share The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2018 and 2017. Three months ended Six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Numerator: Net income attributable to the Company 2,714,315 4,371,237 1,595,379 6,906,886 Denominator: Weighted-average shares outstanding - Basic 15,556,361 15,317,101 15,533,139 15,218,820 - Dilutive effects of equity incentive awards 73,052 162,256 86,632 85,953 - Diluted 15,629,413 15,479,357 15,619,771 15,304,773 Net income per share: - Basic 0.17 0.29 0.10 0.45 - Diluted 0.17 0.28 0.10 0.45 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.

Defined contribution plan

Defined contribution plan	6 Months Ended
	Jun. 30, 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 $ 1,383,552 1,125,097

Segment information

Segment information	6 Months Ended
	Jun. 30, 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. The CODM evaluates performance based on each reporting segment’s net sales, cost of sales, gross profit and total assets. Net sales, cost of sales, gross profit and total assets by segments is set out as follows: Three months ended Six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Net sales Lithium Business 48,503,856 37,009,048 85,100,511 64,499,542 Ni-MH Batteries and Accessories 16,420,104 11,783,901 29,606,902 24,311,214 New Materials - 2,906,981 - 4,756,022 Total 64,923,960 51,699,930 114,707,413 93,566,778 Cost of Sales Lithium Business 39,755,643 28,310,375 70,546,982 49,950,244 Ni-MH Batteries and Accessories 13,858,391 9,013,125 25,284,178 18,201,515 New Materials - 2,304,664 - 3,408,419 Total 53,614,034 39,628,164 95,831,160 71,560,178 Gross Profit Lithium Business 8,748,213 8,698,673 14,553,529 14,549,298 Ni-MH Batteries and Accessories 2,561,713 2,770,776 4,322,724 6,109,699 New Materials - 602,317 - 1,347,603 Total 11,309,926 12,071,766 18,876,253 22,006,600 June 30, December 31, 2018 2017 (Unaudited) $ $ Total Assets Lithium Business 207,643,314 171,881,450 Ni-MH Batteries and Accessories 47,364,193 48,383,088 Total 255,007,507 220,264,538 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 Six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Net sales China Mainland 32,880,005 32,086,138 61,185,768 54,247,730 Asia, others 25,183,900 12,092,612 40,938,296 25,788,170 Europe 4,849,360 3,612,677 9,387,263 8,465,407 North America 1,998,243 3,604,935 3,163,074 4,663,067 Others 12,452 303,568 33,012 402,404 64,923,960 51,699,930 114,707,413 93,566,778 June 30, December 31, 2018 2017 (Unaudited) $ $ Accounts receivable China Mainland 34,536,671 37,636,478 Asia, others 20,347,914 15,294,527 Europe 5,481,322 5,189,859 North America 1,062,014 94,585 Others 12,654 37,550 61,440,575 58,252,999

Related party balance and trans

Related party balance and transaction	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	16. Related party balance and transaction June 30, December 31, 2018 2017 (Unaudited) $ $ Accounts receivable 431,508 632,704 Other receivable 812 533,134 Amount due from a related party- GZ Highpower 432,320 1,165,838 Other payable-investment (1) 423,236 - Amount due to a related party- V-power 423,236 - (1) The Company signed an investment agreement with an aggregate amount of RMB 4.9 0.7 49 2.1 0.3 Three months ended Six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Income: Sales -GZ Highpower 433,147 - 658,934 - -Yipeng - 1,422,533 - 2,046,856 Rental income- Yipeng - 7,012 - 18,311 Expenses: Equipment rental fee- Yipeng - 162,927 - 325,229 Repayment: Other receivable- GZ Highpower - - 543,447 -

Subsequent event

Subsequent event	6 Months Ended
	Jun. 30, 2018
Subsequent event [Abstract]
Subsequent Events [Text Block]	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)	6 Months Ended
	Jun. 30, 2018
Summary of significant accounting policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	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. 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. 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 six months period ended June 30, 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. 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. In July 2018, the FASB issued Accounting Standards Update (ASU) 2018-11, Lease (Topic 842) Targeted Improvements. The amendments in this Update provide entities with an additional (and optional) transition method to adopt the new leases standard and provide lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (Topic 606). The Company is currently evaluating the impact of adopting ASU 2016-02 and ASU 2018-11 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)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue [Table Text Block]	The following table disaggregates product sales by business segment by geography which provides information as to the major source of revenue. See Note 15 for additional description of our reportable business segments and the products being sold in each segment. Three months ended June 30, 2018 Six months ended June 30, 2018 Lithium Ni-MH Consolidated Lithium Ni-MH Consolidated (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ $ $ Primary Geographic Markets China Mainland 24,282,910 8,597,095 32,880,005 46,873,862 14,311,906 61,185,768 Asia, others 22,323,852 2,860,048 25,183,900 35,094,564 5,843,732 40,938,296 Europe 1,161,586 3,687,774 4,849,360 2,066,755 7,320,508 9,387,263 North America 735,508 1,262,735 1,998,243 1,065,330 2,097,744 3,163,074 Others - 12,452 12,452 - 33,012 33,012 Total sales 48,503,856 16,420,104 64,923,960 85,100,511 29,606,902 114,707,413

Accounts receivable, net (Table

Accounts receivable, net (Tables)	6 Months Ended
	Jun. 30, 2018
Accounts receivable, net [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	June 30, December 31, 2018 2017 (Unaudited) $ $ Accounts receivable 64,623,597 61,431,785 Less: allowance for doubtful accounts 3,183,022 3,178,786 61,440,575 58,252,999

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2018
Inventories [Abstract]
Schedule of Inventory, Current [Table Text Block]	June 30, December 31, 2018 2017 (Unaudited) $ $ Raw materials 36,615,871 21,428,315 Work in progress 13,137,127 6,931,486 Finished goods 19,133,423 14,284,563 Packing materials 23,777 36,797 Consumables 290,474 265,483 69,200,672 42,946,644

Property, plant and equipment27

Property, plant and equipment, net (Tables)	6 Months Ended
	Jun. 30, 2018
Property, plant and equipment, net [Abstract]
Property, Plant and Equipment [Table Text Block]	June 30, December 31, 2018 2017 (Unaudited) $ $ Cost Construction in progress 2,122,511 1,330,643 Furniture, fixtures and office equipment 6,632,609 5,794,983 Leasehold improvement 7,048,452 7,080,409 Machinery and equipment 35,538,190 33,176,416 Motor vehicles 1,556,477 1,498,605 Buildings 19,840,548 20,169,197 72,738,787 69,050,253 Less: accumulated depreciation 24,603,636 22,529,477 48,135,151 46,520,776

Long-term investments (Tables)

Long-term investments (Tables)	6 Months Ended
	Jun. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Long Term Investments [Table Text Block]	June 30, 2018 December 31, 2017 (Unaudited) $ Interest% $ Interest% Equity method investments -Ganzhou Highpower Technology Company Limited (“GZ Highpower”) (1) 8,294,952 31.294 % 8,102,520 31.294 % -Shenzhen V-power Innovative Technology Co., Ltd (“V-power”) (2) 721,464 49.000 % - N/A Cost method investment -Huizhou Yipeng Energy Technology Co Ltd. (“Yipeng”) (3) 1,774,466 4.654 % 1,803,859 4.654 % 10,790,882 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 $ 179,964 336,214 (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 0.7 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. 2.1 0.3 The equity in loss of investee was $ 19,894 (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 loss of investee was $ 41,607 105,325

Taxation (Tables)

Taxation (Tables)	6 Months Ended
	Jun. 30, 2018
Taxation [Abstract]
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	The components of the provision for income taxes expense are: Three months ended Six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Current 551,583 456,583 898,520 919,800 Deferred (142,262) 139,125 (498,878) 263,673 Total income taxes expenses 409,321 595,708 399,642 1,183,473
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 expense is as follows: Three months ended Six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Income before tax 3,123,636 5,057,908 1,995,021 8,258,215 Provision for income taxes at PRC statutory income tax rate (25%) 780,909 1,264,477 498,755 2,064,554 Impact of different tax rates in other jurisdictions 37,886 3,382 96,546 6,637 Effect of PRC preferential tax rate (272,880) (397,140) (266,427) (788,983) R&D expenses eligible for super deduction (334,892) (442,939) (334,892) (442,939) Other non-deductible expenses 32,175 17,448 48,751 33,995 Change in valuation allowance of deferred tax assets 166,123 150,480 356,909 310,209 Effective enterprise income tax expenses 409,321 595,708 399,642 1,183,473
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	The following represents the tax effect of each major type of temporary difference. June 30, December 31, 2018 2017 (Unaudited) $ $ Tax loss carry-forward 1,767,265 991,766 Allowance for doubtful receivables 64,294 136,562 Impairment for inventory 296,516 222,289 Difference for sales cut-off 10,489 17,322 Deferred government grant 113,709 46,446 Property, plant and equipment subsidized by government grant 255,070 269,344 Impairment for property, plant and equipment 57,273 58,304 Total gross deferred tax assets 2,564,616 1,742,033 Valuation allowance (1,345,095) (991,766) Total net deferred tax assets 1,219,521 750,267

Earnings per share (Tables)

Earnings per share (Tables)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2018 and 2017. Three months ended Six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Numerator: Net income attributable to the Company 2,714,315 4,371,237 1,595,379 6,906,886 Denominator: Weighted-average shares outstanding - Basic 15,556,361 15,317,101 15,533,139 15,218,820 - Dilutive effects of equity incentive awards 73,052 162,256 86,632 85,953 - Diluted 15,629,413 15,479,357 15,619,771 15,304,773 Net income per share: - Basic 0.17 0.29 0.10 0.45 - Diluted 0.17 0.28 0.10 0.45

Segment information (Tables)

Segment information (Tables)	6 Months Ended
	Jun. 30, 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 Six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Net sales Lithium Business 48,503,856 37,009,048 85,100,511 64,499,542 Ni-MH Batteries and Accessories 16,420,104 11,783,901 29,606,902 24,311,214 New Materials - 2,906,981 - 4,756,022 Total 64,923,960 51,699,930 114,707,413 93,566,778 Cost of Sales Lithium Business 39,755,643 28,310,375 70,546,982 49,950,244 Ni-MH Batteries and Accessories 13,858,391 9,013,125 25,284,178 18,201,515 New Materials - 2,304,664 - 3,408,419 Total 53,614,034 39,628,164 95,831,160 71,560,178 Gross Profit Lithium Business 8,748,213 8,698,673 14,553,529 14,549,298 Ni-MH Batteries and Accessories 2,561,713 2,770,776 4,322,724 6,109,699 New Materials - 602,317 - 1,347,603 Total 11,309,926 12,071,766 18,876,253 22,006,600 June 30, December 31, 2018 2017 (Unaudited) $ $ Total Assets Lithium Business 207,643,314 171,881,450 Ni-MH Batteries and Accessories 47,364,193 48,383,088 Total 255,007,507 220,264,538
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 Six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Net sales China Mainland 32,880,005 32,086,138 61,185,768 54,247,730 Asia, others 25,183,900 12,092,612 40,938,296 25,788,170 Europe 4,849,360 3,612,677 9,387,263 8,465,407 North America 1,998,243 3,604,935 3,163,074 4,663,067 Others 12,452 303,568 33,012 402,404 64,923,960 51,699,930 114,707,413 93,566,778 June 30, December 31, 2018 2017 (Unaudited) $ $ Accounts receivable China Mainland 34,536,671 37,636,478 Asia, others 20,347,914 15,294,527 Europe 5,481,322 5,189,859 North America 1,062,014 94,585 Others 12,654 37,550 61,440,575 58,252,999

Related party balance and tra32

Related party balance and transaction (Tables)	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Summary of Related Party Outstandings [Table Text Block]	Related party balance June 30, December 31, 2018 2017 (Unaudited) $ $ Accounts receivable 431,508 632,704 Other receivable 812 533,134 Amount due from a related party- GZ Highpower 432,320 1,165,838 Other payable-investment (1) 423,236 - Amount due to a related party- V-power 423,236 - (1) The Company signed an investment agreement with an aggregate amount of RMB 4.9 0.7 49 2.1 0.3
Schedule of Related Party Transactions [Table Text Block]	Related party transaction Three months ended Six months ended 2018 2017 2018 2017 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Income: Sales -GZ Highpower 433,147 - 658,934 - -Yipeng - 1,422,533 - 2,046,856 Rental income- Yipeng - 7,012 - 18,311 Expenses: Equipment rental fee- Yipeng - 162,927 - 325,229 Repayment: Other receivable- GZ Highpower - - 543,447 -

The Company and basis of pres33

The Company and basis of presentation (Details Textual)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Concentration Risk, Percentage	10.00%	10.00%	10.00%	10.00%
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	12.00%	10.00%	13.30%	10.00%
Hong Kong Highpower Technology Company Limited [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Equity Method Investment, Ownership Percentage	100.00%		100.00%

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Net	$ 64,923,960	$ 51,699,930	$ 114,707,413	$ 93,566,778
Lithium Business [Member]
Revenue, Net	48,503,856		85,100,511
Ni-MH Batteries and Accessories [Member]
Revenue, Net	16,420,104		29,606,902
China Mainland [Member]
Revenue, Net	32,880,005	32,086,138	61,185,768	54,247,730
China Mainland [Member] | Lithium Business [Member]
Revenue, Net	24,282,910		46,873,862
China Mainland [Member] | Ni-MH Batteries and Accessories [Member]
Revenue, Net	8,597,095		14,311,906
Asia, others [Member]
Revenue, Net	25,183,900	12,092,612	40,938,296	25,788,170
Asia, others [Member] | Lithium Business [Member]
Revenue, Net	22,323,852		35,094,564
Asia, others [Member] | Ni-MH Batteries and Accessories [Member]
Revenue, Net	2,860,048		5,843,732
Europe [Member]
Revenue, Net	4,849,360	3,612,677	9,387,263	8,465,407
Europe [Member] | Lithium Business [Member]
Revenue, Net	1,161,586		2,066,755
Europe [Member] | Ni-MH Batteries and Accessories [Member]
Revenue, Net	3,687,774		7,320,508
North America [Member]
Revenue, Net	1,998,243	3,604,935	3,163,074	4,663,067
North America [Member] | Lithium Business [Member]
Revenue, Net	735,508		1,065,330
North America [Member] | Ni-MH Batteries and Accessories [Member]
Revenue, Net	1,262,735		2,097,744
Other [Member]
Revenue, Net	12,452	$ 303,568	33,012	$ 402,404
Other [Member] | Lithium Business [Member]
Revenue, Net	0		0
Other [Member] | Ni-MH Batteries and Accessories [Member]
Revenue, Net	$ 12,452		$ 33,012

Accounts receivable, net (Detai

Accounts receivable, net (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Accounts receivable	$ 64,623,597	$ 61,431,785
Less: allowance for doubtful accounts	3,183,022	3,178,786
Accounts receivable, net	$ 61,440,575	$ 58,252,999

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Raw materials	$ 36,615,871	$ 21,428,315
Work in progress	13,137,127	6,931,486
Finished goods	19,133,423	14,284,563
Packing materials	23,777	36,797
Consumables	290,474	265,483
Inventories	$ 69,200,672	$ 42,946,644

Property, plant and equipment37

Property, plant and equipment, net (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Cost
Construction in progress	$ 2,122,511	$ 1,330,643
Furniture, fixtures and office equipment	6,632,609	5,794,983
Leasehold improvement	7,048,452	7,080,409
Machinery and equipment	35,538,190	33,176,416
Motor vehicles	1,556,477	1,498,605
Buildings	19,840,548	20,169,197
Property, plant and equipment, cost	72,738,787	69,050,253
Less: accumulated depreciation	24,603,636	22,529,477
Property, plant and equipment, net	$ 48,135,151	$ 46,520,776

Property, plant and equipment38

Property, plant and equipment, net (Details Textual) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Depreciation	$ 1,499,538	$ 1,121,356	$ 2,945,238	$ 2,361,482
Property, Plant And Equipment, Deductions For Government Grants					$ 263,948
Pledged Assets Not Separately Reported Property Plant And Equipment	9,333,591		9,333,591		9,621,537
Huizhou Facilities [Member]
Property, Plant and Equipment [Line Items]
Pledged Assets Not Separately Reported Property Plant And Equipment	8,955,311		8,955,311		9,224,694
Ganzhou Facilities [Member]
Property, Plant and Equipment [Line Items]
Pledged Assets Not Separately Reported Property Plant And Equipment	$ 378,280		$ 378,280		$ 396,843

Long-term investments (Details)

Long-term investments (Details) - USD ($)		Jun. 30, 2018	Dec. 31, 2017
Long-term Investments		$ 10,790,882	$ 9,906,379
Ganzhou Highpower Technology Company Limited [Member]
Equity method investment	[1]	$ 8,294,952	$ 8,102,520
Equity method investment, Ownership Percentage	[1]	31.294%	31.294%
Shenzhen Highpower Technology Company Limited [Member]
Equity method investment	[2]	$ 721,464	$ 0
Equity method investment, Ownership Percentage	[2]	49.00%
Huizhou Yipeng Energy Technology Co Ltd [Member]
Cost method investment	[3]	$ 1,774,466	$ 1,803,859
Cost Method Investments Ownership Percentage	[3]	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 $179,964 and $336,214 for the three and six months ended June 30, 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 $0.7 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 June 30, 2018, the Company injected RMB2.1million (approximately $0.3 million) to V-power, and the unpaid amount was recorded as amount due to a related party (See Note 16). The equity in loss of investee was $19,894 for the three and six months ended June 30, 2018, respectively.
[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 method and applied the cost method in accounting. The equity in loss of investee was $41,607 for the three months ended June 30, 2017. The equity in earnings of investee was $105,325 for the six months ended June 30, 2017.

Long-term investments (Details

Long-term investments (Details Textual) ¥ in Millions		1 Months Ended	3 Months Ended		6 Months Ended
		Feb. 28, 2018USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018CNY (¥)	Feb. 28, 2018CNY (¥)	Dec. 31, 2017USD ($)
Income (Loss) from Equity Method Investments			$ 160,070	$ (41,607)	$ 316,320	$ 105,325
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		$ 700,000						¥ 4.9
Equity Method Investment, Ownership Percentage		49.00%						49.00%
GZ Highpower [Member]
Equity Method Investments	[1]		$ 8,294,952		$ 8,294,952				$ 8,102,520
Equity Method Investment, Ownership Percentage	[1]		31.294%		31.294%		31.294%		31.294%
Income (Loss) from Equity Method Investments			$ 179,964		$ 336,214
Yipeng Energy Technology Co. Ltd [Member]
Income (Loss) from Equity Method Investments				$ 41,607
V Power [Member]
Income (Loss) from Equity Method Investments			19,894		19,894
Related Party Transaction, Due from (to) Related Party			$ 300,000		$ 300,000		¥ 2.1
[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 $179,964 and $336,214 for the three and six months ended June 30, 2018.

Taxation (Details)

Taxation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Schedule Of Taxation [Line Items]
Current	$ 551,583	$ 456,583	$ 898,520	$ 919,800
Deferred	(142,262)	139,125	(498,878)	263,673
Total income taxes expenses	$ 409,321	$ 595,708	$ 399,642	$ 1,183,473

Taxation (Details 1)

Taxation (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Schedule Of Taxation [Line Items]
Income before tax	$ 3,123,636	$ 5,057,908	$ 1,995,021	$ 8,258,215
Provision for income taxes at PRC statutory income tax rate (25%)	780,909	1,264,477	498,755	2,064,554
Impact of different tax rates in other jurisdictions	37,886	3,382	96,546	6,637
Effect of PRC preferential tax rate	(272,880)	(397,140)	(266,427)	(788,983)
R&D expenses eligible for super deduction	(334,892)	(442,939)	(334,892)	(442,939)
Other non-deductible expenses	32,175	17,448	48,751	33,995
Change in valuation allowance of deferred tax assets	166,123	150,480	356,909	310,209
Total income taxes expenses	$ 409,321	$ 595,708	$ 399,642	$ 1,183,473

Taxation (Details 2)

Taxation (Details 2) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Schedule Of Taxation [Line Items]
Tax loss carry-forward	$ 1,767,265	$ 991,766
Allowance for doubtful receivables	64,294	136,562
Impairment for inventory	296,516	222,289
Difference for sales cut-off	10,489	17,322
Deferred government grant	113,709	46,446
Property, plant and equipment subsidized by government grant	255,070	269,344
Impairment for property, plant and equipment	57,273	58,304
Total gross deferred tax assets	2,564,616	1,742,033
Valuation allowance	(1,345,095)	(991,766)
Total net deferred tax assets	$ 1,219,521	$ 750,267

Taxation (Details Textual)

Taxation (Details Textual) - USD ($)	May 01, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2018
Schedule Of Taxation [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent				34.00%
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount		$ 200,000	$ 200,000	$ 400,000	$ 300,000
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		6,522,195		$ 6,522,195
CHINA
Schedule Of Taxation [Line Items]
Income Tax Exemption Percentage				15.00%
Operating Loss Carryforwards		2,814,462		$ 2,814,462
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		$ 1,280,635		$ 1,280,635
Maximum [Member]
Schedule Of Taxation [Line Items]
Value Added Tax Percentage Of Revenue	17.00%
Minimum [Member]
Schedule Of Taxation [Line Items]
Value Added Tax Percentage Of Revenue	16.00%

Notes payable (Details Textual)

Notes payable (Details Textual) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Short-term Bank Loans and Notes Payable	$ 51,710,779	$ 54,859,478

Short-term loans (Details Textu

Short-term loans (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Short-term Debt [Line Items]
Pledged Assets Not Separately Reported Property Plant And Equipment	$ 9,333,591		$ 9,333,591		$ 9,621,537
Interest Expense, Short-term Borrowings, Total	118,886	$ 277,319	230,599	$ 537,156
Chief Executive Officer [Member]
Short-term Debt [Line Items]
Time Deposits	5,636,635		5,636,635		3,982,226
Bank Time Deposits [Member]
Short-term Debt [Line Items]
Restricted Cash and Cash Equivalents	$ 2,564,161		$ 2,564,161		$ 2,639,631
Minimum [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.00%		5.00%		5.00%
Maximum [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.5102%		6.5102%		5.8725%

Non-financial institution bor47

Non-financial institution borrowings (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Proceeds from Other Short-term Debt			$ 0	$ 10,200,959
Third Party Nonfinancial Institution [Member]
Debt Instrument, Interest Rate, Effective Percentage	5.66%		5.66%
Individual Lender [Member]
Proceeds from Other Short-term Debt			$ 9,069,335
Other Debt Obligations [Member]
Interest Expense, Debt	$ 134,660	$ 154,235	$ 296,963	$ 297,753

Lines of credit (Details Textua

Lines of credit (Details Textual) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Long-term Line of Credit	$ 87.6	$ 79.8
Line of Credit Facility, Remaining Borrowing Capacity	$ 22.4	$ 31.3
Line of Credit Facility, Initiation Date	Jul. 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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net income attributable to the Company	$ 2,714,315	$ 4,371,237	$ 1,595,379	$ 6,906,886
Weighted-average shares outstanding
- Basic	15,556,361	15,317,101	15,533,139	15,218,820
- Dilutive effects of equity incentive awards	73,052	162,256	86,632	85,953
- Diluted	15,629,413	15,479,357	15,619,771	15,304,773
Net income per share:
- Basic	$ 0.17	$ 0.29	$ 0.10	$ 0.45
- Diluted	$ 0.17	$ 0.28	$ 0.10	$ 0.45

Defined contribution plan (Deta

Defined contribution plan (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Defined Contribution Plan, Cost Recognized	$ 729,595	$ 620,577	$ 1,383,552	$ 1,125,097

Segment information (Details)

Segment information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Net sales	$ 64,923,960	$ 51,699,930	$ 114,707,413	$ 93,566,778
Cost of Sales	53,614,034	39,628,164	95,831,160	71,560,178
Gross Profit	11,309,926	12,071,766	18,876,253	22,006,600
Lithium Batteries [Member]
Segment Reporting Information [Line Items]
Net sales	48,503,856	37,009,048	85,100,511	64,499,542
Cost of Sales	39,755,643	28,310,375	70,546,982	49,950,244
Gross Profit	8,748,213	8,698,673	14,553,529	14,549,298
Ni-MH Batteries [Member]
Segment Reporting Information [Line Items]
Net sales	16,420,104	11,783,901	29,606,902	24,311,214
Cost of Sales	13,858,391	9,013,125	25,284,178	18,201,515
Gross Profit	2,561,713	2,770,776	4,322,724	6,109,699
New Materials [Member]
Segment Reporting Information [Line Items]
Net sales	0	2,906,981	0	4,756,022
Cost of Sales	0	2,304,664	0	3,408,419
Gross Profit	$ 0	$ 602,317	$ 0	$ 1,347,603

Segment information (Details 1)

Segment information (Details 1) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total Assets	$ 255,007,507	$ 220,264,538
Lithium Batteries [Member]
Segment Reporting Information [Line Items]
Total Assets	207,643,314	171,881,450
Ni-MH Batteries [Member]
Segment Reporting Information [Line Items]
Total Assets	$ 47,364,193	$ 48,383,088

Segment information (Details 2)

Segment information (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 64,923,960	$ 51,699,930	$ 114,707,413	$ 93,566,778
China Mainland [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	32,880,005	32,086,138	61,185,768	54,247,730
Asia, others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	25,183,900	12,092,612	40,938,296	25,788,170
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	4,849,360	3,612,677	9,387,263	8,465,407
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	1,998,243	3,604,935	3,163,074	4,663,067
Others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 12,452	$ 303,568	$ 33,012	$ 402,404

Segment information (Details 3)

Segment information (Details 3) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	$ 61,440,575	$ 58,252,999
China Mainland [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	34,536,671	37,636,478
Asia, others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	20,347,914	15,294,527
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	5,481,322	5,189,859
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	1,062,014	94,585
Others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	$ 12,654	$ 37,550

Related party balance and tra55

Related party balance and transaction (Details) - USD ($)		Jun. 30, 2018	Dec. 31, 2017
Accounts receivable		$ 431,508	$ 632,704
Other receivable		812	533,134
Amount due from a related party- GZ Highpower		432,320	1,165,838
Other payable-investment (1)	[1]	423,236	0
Amount due to a related party- V-power		$ 423,236	$ 0
[1]	The Company signed an investment agreement with an aggregate amount of RMB4.9 million (approximately $0.7 million) in investing for 49% of the equity interest of V-power which was set up on March 1, 2018. On April 28, 2018, the Company injected RMB2.1million (approximately $0.3 million) to V-power, and the unpaid amount was recorded as amount due to a related party. (See Note 7)

Related party balance and tra56

Related party balance and transaction (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income:
Sales	$ 0	$ 0	$ 0	$ 0
GZ Highpower [Member]
Income:
Sales	433,147	0	658,934	0
Expenses:
Other receivable	0	0	543,447	0
Yipeng [Member]
Income:
Sales	0	1,422,533	0	2,046,856
Rental income	0	7,012	0	18,311
Expenses:
Equipment rental fee	$ 0	$ 162,927	$ 0	$ 325,229

Related party balance and tra57

Related party balance and transaction (Details Textual) ¥ in Millions, $ in Millions	Jun. 30, 2018USD ($)	Jun. 30, 2018CNY (¥)	Feb. 28, 2018USD ($)	Feb. 28, 2018CNY (¥)
Shenzhen V-power Innovative Technology Co Ltd [Member]
Equity Method Investments			$ 0.7	¥ 4.9
Equity Method Investment, Ownership Percentage			49.00%	49.00%
V Power [Member]
Related Party Transaction, Due from (to) Related Party	$ 0.3	¥ 2.1