Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 13, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Highpower International, Inc. | |
Entity Central Index Key | 0001368308 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | HPJ | |
Entity Common Stock, Shares Outstanding | 15,567,953 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash | $ 24,167,300 | $ 24,916,484 |
Restricted cash | 39,562,823 | 44,495,633 |
Accounts receivable, net | 59,037,769 | 77,279,817 |
Amount due from a related party | 61,131 | 477,663 |
Notes receivable | 4,375,399 | 256,712 |
Advances to suppliers | 926,624 | 2,292,843 |
Prepayments and other receivables | 8,282,896 | 10,457,789 |
Inventories | 58,456,282 | 54,790,461 |
Total Current Assets | 194,870,224 | 214,967,402 |
Property, plant and equipment, net | 68,148,472 | 56,523,177 |
Long-term prepayments | 1,949,214 | 2,617,419 |
Land use right, net | 2,476,691 | 2,445,751 |
Other assets | 635,015 | 643,128 |
Deferred tax assets, net | 983,879 | 865,370 |
Long-term investments | 9,768,087 | 9,993,852 |
Right-of-use assets | 5,272,558 | 0 |
TOTAL ASSETS | 284,104,140 | 288,056,099 |
Current Liabilities: | ||
Accounts payable | 68,943,619 | 66,486,690 |
Deferred government grants | 473,111 | 464,206 |
Short-term loans | 17,749,981 | 24,856,744 |
Non-financial institution borrowing | 0 | 8,761,426 |
Notes payable | 75,053,041 | 73,607,284 |
Foreign exchange derivative liabilities | 2,240 | 521,509 |
Amount due to related parties | 9,011,760 | 6,116,851 |
Other payables and accrued liabilities | 23,733,687 | 25,860,703 |
Income taxes payable | 4,246,421 | 4,124,719 |
Lease liabilities, current | 1,866,177 | 0 |
Total Current Liabilities | 201,080,037 | 210,800,132 |
Lease liabilities, non current | 3,550,051 | 0 |
TOTAL LIABILITIES | 204,630,088 | 210,800,132 |
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, 15,567,953 shares issued and outstanding at March 31, 2019 and 15,559,658 at December 31, 2018, respectively) | 1,557 | 1,556 |
Additional paid-in capital | 14,067,883 | 13,863,282 |
Statutory and other reserves | 8,012,052 | 8,012,052 |
Retained earnings | 56,481,633 | 56,173,912 |
Accumulated other comprehensive income (loss) | 910,927 | (794,835) |
TOTAL EQUITY | 79,474,052 | 77,255,967 |
TOTAL LIABILITIES AND EQUITY | $ 284,104,140 | $ 288,056,099 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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 | 15,567,953 | 15,559,658 |
Common Stock, shares outstanding | 15,567,953 | 15,559,658 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net sales | $ 58,113,480 | $ 49,783,453 |
Cost of sales | (45,452,951) | (42,217,126) |
Gross profit | 12,660,529 | 7,566,327 |
Research and development expenses | (2,986,709) | (2,561,837) |
Selling and distribution expenses | (2,792,862) | (1,975,096) |
General and administrative expenses | (4,823,489) | (4,114,810) |
Foreign currency transaction loss | (1,250,895) | (1,014,693) |
Total operating expenses | (11,853,955) | (9,666,436) |
Income (loss) from operations | 806,574 | (2,100,109) |
Changes in fair value of foreign exchange derivatives | 387,100 | 703,715 |
Government grants | 221,435 | 329,820 |
Other income | 66,698 | 23,561 |
Equity in (loss) earnings of investee | (418,204) | 156,250 |
Interest expenses | (470,423) | (241,852) |
Income (loss) before income taxes | 593,180 | (1,128,615) |
Income taxes (expense) benefit | (285,459) | 9,679 |
Net income (loss) | 307,721 | (1,118,936) |
Comprehensive income | ||
Net income (loss) | 307,721 | (1,118,936) |
Foreign currency translation gain | 1,705,762 | 2,836,556 |
Comprehensive income | $ 2,013,483 | $ 1,717,620 |
Earnings (loss) per share of common stock attributable to the Company | ||
- Basic | $ 0.02 | $ (0.07) |
- Diluted | $ 0.02 | $ (0.07) |
Weighted average number of common stock outstanding | ||
- Basic | 15,566,478 | 15,509,658 |
- Diluted | 15,604,907 | 15,509,658 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income (loss) | $ 307,721 | $ (1,118,936) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,729,440 | 1,475,228 |
Bad debt expense | 89,427 | 18,524 |
Loss on disposal of property, plant and equipment | 0 | 21,805 |
Deferred taxes | (102,366) | (356,616) |
Changes in fair value of foreign exchange derivatives | (387,100) | (414,042) |
Equity in loss (earnings) of investee | 418,204 | (156,250) |
Share based compensation | 204,602 | 241,421 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 18,954,393 | 3,713,692 |
Notes receivable | (4,120,877) | 2,622,925 |
Advances to suppliers | 1,412,642 | (236,789) |
Prepayments and other receivables | 2,379,960 | (601,315) |
Amount due from a related party | 426,432 | 285,657 |
Amount due to related parties | 113,794 | 0 |
Inventories | (2,626,489) | (10,779,233) |
Accounts payable | (6,016,313) | (1,377,447) |
Deferred government grants | 0 | 475,783 |
Other payables and accrued liabilities | (2,287,547) | 665,379 |
Income taxes payable | 57,542 | 19,371 |
Net cash flows provided by (used in) operating activities | 10,553,465 | (5,500,843) |
Cash flows from investing activities | ||
Acquisitions of plant and equipment | (4,336,823) | (1,553,979) |
Payment for long-term investment | (313,073) | (317,188) |
Net cash flows used in investing activities | (4,649,896) | (1,871,167) |
Cash flows from financing activities | ||
Proceeds from short-term bank loans | 5,963,296 | 14,427,164 |
Repayments of short-term bank loans | (13,560,014) | 0 |
Proceeds from a related party | 2,981,648 | 0 |
Repayments of non-financial institution borrowing | (8,944,944) | 0 |
Proceeds from notes payable | 30,205,286 | 28,429,600 |
Repayments of notes payable | (30,171,519) | (26,488,407) |
Payment of derivative instruments | (143,089) | 0 |
Net cash flows (used in) provided by financing activities | (13,669,336) | 16,368,357 |
Effect of foreign currency translation on cash | 2,083,773 | 2,046,039 |
Net (decrease) increase in cash and restricted cash | (5,681,994) | 11,042,386 |
Cash and restricted cash- beginning of year | 69,412,117 | 40,456,117 |
Cash and restricted cash- end of year | 63,730,123 | 51,498,503 |
Cash paid for: | ||
Income taxes | 330,283 | 327,565 |
Interest expenses | 863,923 | 114,588 |
Non-cash investing and financing activities: | ||
Purchase of plant and equipment financed by accounts payable | 7,203,680 | 0 |
Reconciliation of cash and restricted cash: | ||
Cash | 24,167,300 | 18,859,355 |
Restricted cash | 39,562,823 | 32,639,148 |
Total cash and restricted cash shown in the condensed consolidated statements of cash flows | $ 63,730,123 | $ 51,498,503 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGE IN EQUITY - USD ($) | Total | Common stock [Member] | Additional paid-in capital [Member] | Statutory and other reserves [Member] | Retained earnings [Member] | Accumulated other comprehensive income [Member] |
Balance at Dec. 31, 2017 | $ 67,212,185 | $ 1,551 | $ 12,709,756 | $ 6,549,815 | $ 44,481,568 | $ 3,469,495 |
Balance (in shares) at Dec. 31, 2017 | 15,509,658 | |||||
Foreign currency translation adjustments | 2,836,556 | $ 0 | 0 | 0 | 0 | 2,836,556 |
Share-based compensation expenses | 241,421 | 0 | 241,421 | 0 | 0 | 0 |
Net income (loss) | (1,118,936) | 0 | 0 | 0 | (1,118,936) | 0 |
Balance at Mar. 31, 2018 | 69,171,226 | $ 1,551 | 12,951,177 | 6,549,815 | 43,362,632 | 6,306,051 |
Balance (in shares) at Mar. 31, 2018 | 15,509,658 | |||||
Balance at Dec. 31, 2018 | 77,255,967 | $ 1,556 | 13,863,282 | 8,012,052 | 56,173,912 | (794,835) |
Balance (in shares) at Dec. 31, 2018 | 15,559,658 | |||||
Exercise of the warrants | 0 | $ 1 | (1) | 0 | 0 | 0 |
Exercise of the warrants (in shares) | 8,295 | |||||
Foreign currency translation adjustments | 1,705,762 | $ 0 | 0 | 0 | 0 | 1,705,762 |
Share-based compensation expenses | 204,602 | 0 | 204,602 | 0 | 0 | 0 |
Net income (loss) | 307,721 | 0 | 0 | 0 | 307,721 | 0 |
Balance at Mar. 31, 2019 | $ 79,474,052 | $ 1,557 | $ 14,067,883 | $ 8,012,052 | $ 56,481,633 | $ 910,927 |
Balance (in shares) at Mar. 31, 2019 | 15,567,953 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization The consolidated financial statements include the financial statements of Highpower International, Inc. ("Highpower") and its 100%-owned subsidiary Hong Kong Highpower Technology Company Limited (“HKHTC”), HKHTC’s wholly-owned subsidiary Shenzhen Highpower Technology Company Limited (“SZ Highpower”), SZ Highpower’s and HKHTC’s jointly owned subsidiaries, Springpower Technology (Shenzhen) Company Limited (“SZ Springpower”) and Icon Energy System Company Limited (“ICON”) and SZ Highpower’s and SZ Springpower’s jointly owned subsidiary Huizhou Highpower Technology Company Limited (“HZ HTC”). Highpower and its direct and indirect wholly owned subsidiaries are collectively referred to as the "Company". |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Summary of significant accounting policies 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, 2018, filed with the SEC on March 28, 2019. 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, 2019, its consolidated results of operations for the three months ended March 31, 2019, cash flows for the three months ended March 31, 2019 and change in equity for the three months ended March 31, 2019, as applicable, have been made. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2019 or any future periods. Concentrations of credit risk One major customer accounted for 10.9% of the total sales for the three months ended March 31, 2019. There was no customer accounted for over 10% or more of the total sales during the three months ended March 31, 2018. One supplier accounted for 12.2% and 21.2% of the total purchase amount during the three months ended March 31, 2019 and 2018, respectively. One customer accounted for 12.6% of the accounts receivable as of March 31, 2019. No customer accounted for 10% or more of the accounts receivable as of December 31, 2018. Recently issued accounting standards On February 25, 2017, 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 (“ROU asset ) representing its right to use the underlying asset for the lease term. We adopted this guidance in the first quarter of 2019 using the modified retrospective approach, electing the package of practical expedients, and the practical expedient to not separate lease and non-lease components for data center operating leases. We also elected the optional transition method that permits adoption of the new standard prospectively, as of the effective date, without adjusting comparative periods presented. Adoption of the standard resulted in the recognition of $5.3 million of ROU assets and $5.4 million of lease liabilities on the consolidated balance sheet at adoption related to office space, data and fulfillment centers, and other corporate assets. See Note 7 for disclosure required by ASC 842. 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 adoption of this guidance did not have a material impact on the Company's consolidated financial condition, results of operations or cash flows. 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 adoption of this guidance did not have a material impact on the Company's consolidated financial condition, results of operations or cash flows. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 3. Revenue Recognition The Company follows the guidance under ASC 606 effective January 1, 2018. The following table disaggregates product sales by business segment and by geography, which provides information as to the major source of revenue. See Note 16 for additional description of the reportable business segments and the products being sold in each segment. Three months ended March 31, 2019 Lithium Business Ni-MH Batteries and Accessories Consolidated (Unaudited) (Unaudited) (Unaudited) $ $ $ Primary Geographic Markets China Mainland 23,064,520 4,906,515 27,971,035 Asia, others 17,011,230 6,059,484 23,070,714 Europe 1,403,314 3,217,017 4,620,331 North America 1,251,103 1,066,423 2,317,526 Others - 133,874 133,874 Total sales 42,730,167 15,383,313 58,113,480 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 (i) contracts that have an original expected length of one year or less; and (ii) contracts where revenue is recognized as invoiced. The Company does not have amounts of contract assets since revenue is recognized as control of goods is transferred. The contract liabilities consist of advance payments from customers. The 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 the condensed consolidated balance sheets. |
Accounts receivable, net
Accounts receivable, net | 3 Months Ended |
Mar. 31, 2019 | |
Accounts Receivable, Net, Current [Abstract] | |
Accounts Receivable [Text Block] | 4. Accounts receivable, net March 31, December 31, 2019 2018 (Unaudited) $ $ Accounts receivable 59,189,232 77,340,837 Less: allowance for doubtful accounts 151,463 61,020 59,037,769 77,279,817 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 5. Inventories March 31, December 31, 2019 2018 (Unaudited) $ $ Raw materials 28,701,009 25,952,099 Work in progress 9,377,147 10,192,772 Finished goods 20,141,273 18,348,119 Packing materials 31,193 14,394 Consumables 205,660 283,077 58,456,282 54,790,461 |
Property, plant and equipment,
Property, plant and equipment, net | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 6. Property, plant and equipment, net March 31, December 31, 2019 2018 (Unaudited) $ $ Cost Construction in progress 11,339,810 6,991,889 Furniture, fixtures and office equipment 7,699,164 7,221,527 Leasehold improvement 7,258,819 7,090,162 Machinery and equipment 48,551,295 40,316,428 Motor vehicles 1,609,150 1,508,398 Buildings 19,534,641 19,166,951 95,992,879 82,295,355 Less: accumulated depreciation 27,844,407 25,772,178 68,148,472 56,523,177 The construction in process represented machines under construction or testing as of March 31, 2019 and December 31, 2018. The Company recorded depreciation expenses of $1,700,934 and $1,445,700 for the three months ended March 31, 2019 and 2018, respectively. During the three months ended March 31, 2019, the Company deducted deferred government grants of $nil on the carrying amount of property, plant and equipment. During the year ended December 31, 2018, the Company deducted deferred government grants of $75,584 in calculating the carrying amount of property, plant and equipment. The buildings comprising the Huizhou facilities were pledged as collateral for bank loans. The net carrying amounts of the buildings were $8,641,385 and $8,536,246 as of March 31, 2019 and December 31, 2018, respectively. The building located in Shenzhen, Guangdong was pledged as collateral for bank loans. The net carrying amount of the building was $354,583 and $353,752 as of March 31, 2019 and December 31, 2018, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 7. Leases The Company has various non-cancelable lease agreements for certain of the warehouses and accommodations with original lease periods expiring between 2019 and 2022. The lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. Certain of the arrangements have free rent periods or escalating rent payment provisions. Leases with an initial term of twelve months or less are not recorded on the condensed consolidated balance sheets. The Company recognizes rental expense on a straight-line basis over the lease term. The following table provides a summary of leases by balance sheet location as of March 31, 2019: Balance Sheet Location March 31, 2019 (Unaudited) $ Assets Operating Right-of-use assets 5,272,558 Total leased assets 5,272,558 Liabilities Operating - current Lease liabilities, current 1,866,177 Operating - non current Lease liabilities, non current 3,550,051 Total lease liabilities 5,416,228 The components of lease expense for the three months ended March 31, 2019 were as follows: Statement of Income Location Three months ended March 31, 2019 (Unaudited) $ Lease Costs Operating lease expense Cost of sales, Selling and distribution expenses, General and administrative expenses, Research and development expenses 757,707 Total net lease costs 757,707 Maturity of lease liabilities under the non-cancelable operating leases as of March 31, 2019 were as follows: Operating (Unaudited) $ Remaining 2019 1,635,280 2020 1,888,266 2021 1,715,654 2022 745,078 Total lease payments 5,984,278 Less: interest 568,050 Present value of lease liabilities 5,416,228 Future minimum rental payments under the non-cancelable operating leases as of December 31, 2018 were as follows: Leases (1) $ 2019 2,288,437 2020 1,790,861 2021 1,621,298 2022 668,792 6,369,388 (1) Amounts are based on ASC 840, Leases that was superseded upon our adoption of ASC 842, Leases on January 1, 2019. The following table provides a summary of the lease terms and discount rates for the three months ended March 31, 2019: Three months ended March 31, 2019 Weighted Average Remaining Lease Term Operating leases 3.00 Weighted Average Discount Rate Operating leases 6.18 % As most of the leases do not provide an implicit rate, the Company use the incremental borrowing rate based on the information available at the lease commencement date to determine the present value of lease payments. Supplemental information related to the leases for the three months ended March 31, 2019 is as follows: Three months ended March 31, 2019 (Unaudited) $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 626,145 |
Long-term investments
Long-term investments | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Long Term Investment [Text Block] | 8. Long-term investments March 31, 2019 December 31, 2018 (Unaudited) $ Interest % $ Interest % Equity method investments -Ganzhou Highpower Technology Company Limited (“GZ Highpower”) (1) 7,490,318 31.294 % 7,683,900 31.294 % -Shenzhen V-power Innovative Technology Co., Ltd (“V-power”) (2) 530,662 49.000 % 595,730 49.000 % Cost method investment -Huizhou Yipeng Energy Technology Co Ltd. 1,747,107 4.654 % 1,714,222 4.654 % 9,768,087 9,993,852 (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 loss of investee was $341,576 $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 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. In addition, the Company agreed 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; and 2. valuation of V-power higher or equal to RMB30 million before equity issuance. As of March 31, 2019, the Company injected RMB4.2 million (approximately $0.6 million) to V-power, and the unpaid amount was recorded as amount due to a related party (See Note 17). The equity in loss of investee was $76,628 and $nil for the three months ended March 31, 2019 and 2018, respectively. |
Taxation
Taxation | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 9. 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% to 16% on May 1, 2018 of the gross sales proceeds received, less any deductible VAT already paid or borne by the taxpayers. Further, when exporting goods, the exporter is entitled to a portion of or all the refund of VAT that it has already paid or incurred. The Company’s PRC subsidiaries are subject to VAT on their revenues. 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% to 21%, imposing a mandatory one-time tax on accumulated earnings of foreign subsidiaries, introducing new tax regimes, and changing how foreign earnings are subject to U.S. tax. 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. 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 evaluated the Global Intangible Low Taxed Income ("GILTI") inclusion on current earnings and profits of greater than 10% The Company completed quantification of the Tax Act impact. The final adjustment is not material. Hong Kong HKHTC, which was incorporated in Hong Kong, is subject to a corporate income tax rate of 16.5%. In accordance with the relevant tax laws and regulations of Hong Kong, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate on taxable income. In March 2018, the Hong Kong Government introduced a two-tiered profit tax rate regime by enacting the Inland Revenue (Amendment) (No.3) Ordinance 2018 (the “Ordinance”). Under the two-tiered profits tax rate regime, the first $2 million of assessable profits of qualifying corporations is taxed at 8.25% and the remaining assessable profits at 16.5%. The Ordinance is effective from the year of assessment 2018-2019. According to the policy, if no election has been made, the whole of the taxpaying entity’s assessable profits will be chargeable to Profits Tax at the rate of 16.5% or 15%, as applicable. Because the preferential tax treatment is not elected by the subject to income tax at a rate of 16.5%. PRC In accordance with the relevant tax laws and regulations of the PRC, a company registered in the PRC is subject to income taxes within the PRC at the applicable tax rate on taxable income. In China, the companies granted with National High-tech Enterprise (“NHTE”) status enjoy 15% income tax rate. This status needs to be renewed every three years. If these subsidiaries fail to renew NHTE status, they will be subject to income tax at a rate of 25% after the expiration of NHTE status. All the PRC subsidiaries received NHTE status and enjoy 15% income tax rate for calendar year 2019 and 2018. The components of the income taxes expense are: Three months ended March 31, 2019 2018 (Unaudited) (Unaudited) $ $ Current 387,825 346,937 Deferred (102,366 ) (356,616 ) Total income taxes expense (benefit) 285,459 (9,679 ) The reconciliation of income taxes expenses computed at the PRC statutory tax rate to income tax expense is as follows: Three months ended March 31, 2019 2018 (Unaudited) (Unaudited) $ $ Income (loss) before tax 593,180 (1,128,615 ) Provision for income taxes at PRC statutory income tax rate (25%) 148,295 (282,154 ) Impact of different tax rates in other jurisdictions 118,621 58,660 Effect of PRC preferential tax rate (190,307 ) 6,453 R&D expenses eligible for super deduction (138,394 ) - Other non-deductible expenses 100,362 16,576 Change in valuation allowance of deferred tax assets 246,882 190,786 Effective enterprise income tax expense (benefit) 285,459 (9,679 ) 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. The following represents the tax effect of each major type of temporary difference. March 31, December 31, 2019 2018 (Unaudited) $ $ Tax loss carry-forward 1,408,109 1,096,956 Allowance for doubtful receivables 22,719 9,153 Impairment for inventory 382,398 382,375 Difference for sales cut-off 25,340 15,526 Deferred government grants 70,967 69,631 Property, plant and equipment subsidized by government grant 246,965 250,563 Impairment for property, plant and equipment 117,384 138,122 Total gross deferred tax assets 2,273,882 1,962,326 Valuation allowance (1,290,003 ) (1,096,956 ) Total net deferred tax assets 983,879 865,370 As of March 31, 2019, the Company had net operating loss carry-forwards in Hong Kong of $7,818,199 without expiration and in the PRC of $787,374, which will expire in 2023. 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, 2019 and December 31, 2018. The net valuation allowance increased by $0.2 million and $0.2 million during the three months ended March 31, 2019 and 2018, respectively. |
Notes payable
Notes payable | 3 Months Ended |
Mar. 31, 2019 | |
Notes Payable [Abstract] | |
Notes Payable Disclosure [Text Block] | 10. 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 one year. The outstanding bank acceptance bills are secured by restricted cash deposited in banks. Outstanding bank acceptance bills were $75,053,041 and $73,607,284 as of March 31, 2019 and December 31, 2018, respectively. |
Short-term loans
Short-term loans | 3 Months Ended |
Mar. 31, 2019 | |
Short-term Debt [Abstract] | |
Short-term Debt [Text Block] | 11. Short-term loans As of March 31, 2019, the bank borrowings were for working capital and capital expenditure purposes and were secured by personal guarantees executed by the Company’s Chief Executive Officer, Mr. Dang Yu Pan, the land use right with a net carrying amount of $2,476,691 and the buildings with a net carrying amount of $8,995,968, respectively. The loans were primarily obtained from three banks with interest rates ranging from 5.6160 6.5253 |
Non-financial institution borro
Non-financial institution borrowing | 3 Months Ended |
Mar. 31, 2019 | |
Short-term Debt [Abstract] | |
Non-Financial Institution Borrowings [Text Block] | 12. Non-financial institution borrowing For the three months ended March 31, 2019, the Company paid back $8,944,944 to the third party non-financial institution. The interest expense of the above borrowing was $4,922 and $162,303 for the three months ended March 31, 2019 and 2018, respectively |
Lines of credit
Lines of credit | 3 Months Ended |
Mar. 31, 2019 | |
Line of Credit Facility [Abstract] | |
Line Of Credit Facilities [Text Block] | 13. 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, 2019, the total and unused lines of credit were $ 109.6 million and $ 33.6 million, respectively, with maturity dates from May 2019 to October 2021. As of December 31, 2018, the total and unused lines of credit were $102.6 million and $23.8 million, respectively, with maturity dates from March 2019 to October 2021. These lines of credit were guaranteed by the Company’s Chief Executive Officer, Mr. Dang Yu Pan. The Company’s buildings and the land use right were pledged as collateral for these line of credit. |
Earnings (loss) per share
Earnings (loss) per share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 14. Earnings (loss) per share The following table sets forth the computation of basic and diluted earnings per common share for the three months ended March 31, 2019 and 2018. Three months ended March 31, 2019 2018 (Unaudited) (Unaudited) $ $ Numerator: Net income (loss) attributable to the Company 307,721 (1,118,936 ) Denominator: Weighted-average shares outstanding - Basic 15,566,478 15,509,658 - Dilutive effects of equity incentive awards 38,429 - - Diluted 15,604,907 15,509,658 Net earnings (loss) per share: - Basic 0.02 (0.07 ) - Diluted 0.02 (0.07 ) 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 | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 15. 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 $983,374 and $653,957 for the three months ended March 31, 2019 and 2018, respectively. |
Segment information
Segment information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 16. 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 two reportable segments, namely (i) Lithium Business and (ii) Ni-MH Batteries and Accessories. 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 March 31, 2019 2018 (Unaudited) (Unaudited) $ $ Net sales Lithium Business 42,730,167 36,596,655 Ni-MH Batteries and Accessories 15,383,313 13,186,798 Total 58,113,480 49,783,453 Cost of Sales Lithium Business 33,628,468 30,791,339 Ni-MH Batteries and Accessories 11,824,483 11,425,787 Total 45,452,951 42,217,126 Gross Profit Lithium Business 9,101,699 5,805,316 Ni-MH Batteries and Accessories 3,558,830 1,761,011 Total 12,660,529 7,566,327 March 31, December 31, 2019 2018 (Unaudited) $ $ Total Assets Lithium Business 221,165,885 231,795,621 Ni-MH Batteries and Accessories 62,938,255 56,260,478 Total 284,104,140 288,056,099 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, 2019 2018 (Unaudited) (Unaudited) $ $ Net sales China Mainland 27,971,035 28,305,763 Asia, others 23,070,714 15,754,396 Europe 4,620,331 4,537,903 North America 2,317,526 1,164,831 Others 133,874 20,560 58,113,480 49,783,453 March 31, December 31, 2019 2018 (Unaudited) $ $ Accounts receivable China Mainland 37,572,057 38,048,651 Asia, others 17,487,874 33,237,051 Europe 3,244,105 5,413,343 North America 696,234 566,769 Others 37,499 14,003 59,037,769 77,279,817 |
Related party balance and trans
Related party balance and transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 17. Related party balance and transaction Related party balance March 31 December 31, 2019 2018 (Unaudited) $ $ Accounts receivable - 476,093 Other receivable 61,131 1,570 Amount due from a related party- GZ Highpower 61,131 477,663 Other payable-investment (1) 104,178 408,867 Loan from Mr. Dang Yu Pan (2) 8,907,582 5,707,984 Amount due to related parties 9,011,760 6,116,851 (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 RMB2.1 million (approximately $0.3 million) to V-power. On January 14, 2019, the Company injected RMB2.1 million (approximately $0.3 million) to V-power and the unpaid amount was recorded as amount due to a related party. (See Note 8) (2) The Company entered into a loan agreement with a maximum amount of RMB60 million (approximately $8.9 million) with Mr. Dang Yu Pan on July 20, 2018. As of March 31, 2019, the Company withdrew an aggregate amount of RMB58.2 million (approximately $8.7 million). The interest rate is 5.65% per annum. The Company accrued interest expense $113,795 for the three months ended March 31, 2019. Related party transaction Three months ended March 31, 2019 2018 (Unaudited) (Unaudited) $ $ GZ Highpower Sales 200,733 225,787 V-Power Payment of investment 313,073 - Dang Yu Pan Loan from Dang Yu Pan 2,981,648 - Interest expense 113,795 |
Subsequent event
Subsequent event | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 18. Subsequent event The Company has evaluated subsequent events through the issuance of the unaudited condensed consolidated financial statements and no other subsequent event is identified that would have required adjustment or disclosure in the consolidated financial statements. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018, filed with the SEC on March 28, 2019. 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, 2019, its consolidated results of operations for the three months ended March 31, 2019, cash flows for the three months ended March 31, 2019 and change in equity for the three months ended March 31, 2019, as applicable, have been made. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the operating results that may be expected for the year ending December 31, 2019 or any future periods. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of credit risk One major customer accounted for 10.9% of the total sales for the three months ended March 31, 2019. There was no customer accounted for over 10% or more of the total sales during the three months ended March 31, 2018. One supplier accounted for 12.2% and 21.2% of the total purchase amount during the three months ended March 31, 2019 and 2018, respectively. One customer accounted for 12.6% of the accounts receivable as of March 31, 2019. No customer accounted for 10% or more of the accounts receivable as of December 31, 2018. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently issued accounting standards On February 25, 2017, 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 (“ROU asset ) representing its right to use the underlying asset for the lease term. We adopted this guidance in the first quarter of 2019 using the modified retrospective approach, electing the package of practical expedients, and the practical expedient to not separate lease and non-lease components for data center operating leases. We also elected the optional transition method that permits adoption of the new standard prospectively, as of the effective date, without adjusting comparative periods presented. Adoption of the standard resulted in the recognition of $5.3 million of ROU assets and $5.4 million of lease liabilities on the consolidated balance sheet at adoption related to office space, data and fulfillment centers, and other corporate assets. See Note 7 for disclosure required by ASC 842. 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 adoption of this guidance did not have a material impact on the Company's consolidated financial condition, results of operations or cash flows. 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 adoption of this guidance did not have a material impact on the Company's consolidated financial condition, results of operations or cash flows. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table disaggregates product sales by business segment and by geography, which provides information as to the major source of revenue. See Note 16 for additional description of the reportable business segments and the products being sold in each segment. Three months ended March 31, 2019 Lithium Business Ni-MH Batteries and Accessories Consolidated (Unaudited) (Unaudited) (Unaudited) $ $ $ Primary Geographic Markets China Mainland 23,064,520 4,906,515 27,971,035 Asia, others 17,011,230 6,059,484 23,070,714 Europe 1,403,314 3,217,017 4,620,331 North America 1,251,103 1,066,423 2,317,526 Others - 133,874 133,874 Total sales 42,730,167 15,383,313 58,113,480 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounts Receivable, Net, Current [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | March 31, December 31, 2019 2018 (Unaudited) $ $ Accounts receivable 59,189,232 77,340,837 Less: allowance for doubtful accounts 151,463 61,020 59,037,769 77,279,817 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | March 31, December 31, 2019 2018 (Unaudited) $ $ Raw materials 28,701,009 25,952,099 Work in progress 9,377,147 10,192,772 Finished goods 20,141,273 18,348,119 Packing materials 31,193 14,394 Consumables 205,660 283,077 58,456,282 54,790,461 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | March 31, December 31, 2019 2018 (Unaudited) $ $ Cost Construction in progress 11,339,810 6,991,889 Furniture, fixtures and office equipment 7,699,164 7,221,527 Leasehold improvement 7,258,819 7,090,162 Machinery and equipment 48,551,295 40,316,428 Motor vehicles 1,609,150 1,508,398 Buildings 19,534,641 19,166,951 95,992,879 82,295,355 Less: accumulated depreciation 27,844,407 25,772,178 68,148,472 56,523,177 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Assets and Liabilities Pertaining To Operating Leases [Table Text Block] | The following table provides a summary of leases by balance sheet location as of March 31, 2019: Balance Sheet Location March 31, 2019 (Unaudited) $ Assets Operating Right-of-use assets 5,272,558 Total leased assets 5,272,558 Liabilities Operating - current Lease liabilities, current 1,866,177 Operating - non current Lease liabilities, non current 3,550,051 Total lease liabilities 5,416,228 |
Lease, Cost [Table Text Block] | The components of lease expense for the three months ended March 31, 2019 were as follows: Statement of Income Location Three months ended March 31, 2019 (Unaudited) $ Lease Costs Operating lease expense Cost of sales, Selling and distribution expenses, General and administrative expenses, Research and development expenses 757,707 Total net lease costs 757,707 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturity of lease liabilities under the non-cancelable operating leases as of March 31, 2019 were as follows: Operating (Unaudited) $ Remaining 2019 1,635,280 2020 1,888,266 2021 1,715,654 2022 745,078 Total lease payments 5,984,278 Less: interest 568,050 Present value of lease liabilities 5,416,228 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum rental payments under the non-cancelable operating leases as of December 31, 2018 were as follows: Leases (1) $ 2019 2,288,437 2020 1,790,861 2021 1,621,298 2022 668,792 6,369,388 (1) Amounts are based on ASC 840, Leases that was superseded upon our adoption of ASC 842, Leases on January 1, 2019. |
Summary Of Weighted Average Lease Term and The Discount Rate [Table Text Block] | The following table provides a summary of the lease terms and discount rates for the three months ended March 31, 2019: Three months ended March 31, 2019 Weighted Average Remaining Lease Term Operating leases 3.00 Weighted Average Discount Rate Operating leases 6.18 % |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental information related to the leases for the three months ended March 31, 2019 is as follows: Three months ended March 31, 2019 (Unaudited) $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 626,145 |
Long-term investments (Tables)
Long-term investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule Of Long Term Investment [Table Text Block] | March 31, 2019 December 31, 2018 (Unaudited) $ Interest % $ Interest % Equity method investments -Ganzhou Highpower Technology Company Limited (“GZ Highpower”) (1) 7,490,318 31.294 % 7,683,900 31.294 % -Shenzhen V-power Innovative Technology Co., Ltd (“V-power”) (2) 530,662 49.000 % 595,730 49.000 % Cost method investment -Huizhou Yipeng Energy Technology Co Ltd. 1,747,107 4.654 % 1,714,222 4.654 % 9,768,087 9,993,852 (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 loss of investee was $341,576 $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 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. In addition, the Company agreed 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; and 2. valuation of V-power higher or equal to RMB30 million before equity issuance. As of March 31, 2019, the Company injected RMB4.2 million (approximately $0.6 million) to V-power, and the unpaid amount was recorded as amount due to a related party (See Note 17). |
Taxation (Tables)
Taxation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the income taxes expense are: Three months ended March 31, 2019 2018 (Unaudited) (Unaudited) $ $ Current 387,825 346,937 Deferred (102,366 ) (356,616 ) Total income taxes expense (benefit) 285,459 (9,679 ) |
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 March 31, 2019 2018 (Unaudited) (Unaudited) $ $ Income (loss) before tax 593,180 (1,128,615 ) Provision for income taxes at PRC statutory income tax rate (25%) 148,295 (282,154 ) Impact of different tax rates in other jurisdictions 118,621 58,660 Effect of PRC preferential tax rate (190,307 ) 6,453 R&D expenses eligible for super deduction (138,394 ) - Other non-deductible expenses 100,362 16,576 Change in valuation allowance of deferred tax assets 246,882 190,786 Effective enterprise income tax expense (benefit) 285,459 (9,679 ) |
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, 2019 2018 (Unaudited) $ $ Tax loss carry-forward 1,408,109 1,096,956 Allowance for doubtful receivables 22,719 9,153 Impairment for inventory 382,398 382,375 Difference for sales cut-off 25,340 15,526 Deferred government grants 70,967 69,631 Property, plant and equipment subsidized by government grant 246,965 250,563 Impairment for property, plant and equipment 117,384 138,122 Total gross deferred tax assets 2,273,882 1,962,326 Valuation allowance (1,290,003 ) (1,096,956 ) Total net deferred tax assets 983,879 865,370 |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and 2018. Three months ended March 31, 2019 2018 (Unaudited) (Unaudited) $ $ Numerator: Net income (loss) attributable to the Company 307,721 (1,118,936 ) Denominator: Weighted-average shares outstanding - Basic 15,566,478 15,509,658 - Dilutive effects of equity incentive awards 38,429 - - Diluted 15,604,907 15,509,658 Net earnings (loss) per share: - Basic 0.02 (0.07 ) - Diluted 0.02 (0.07 ) |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The CODM evaluates performance based on each reporting segment’s net sales, cost of sales, gross profit and total assets. Net sales, cost of sales, gross profit and total assets by segments is set out as follows: Three months ended March 31, 2019 2018 (Unaudited) (Unaudited) $ $ Net sales Lithium Business 42,730,167 36,596,655 Ni-MH Batteries and Accessories 15,383,313 13,186,798 Total 58,113,480 49,783,453 Cost of Sales Lithium Business 33,628,468 30,791,339 Ni-MH Batteries and Accessories 11,824,483 11,425,787 Total 45,452,951 42,217,126 Gross Profit Lithium Business 9,101,699 5,805,316 Ni-MH Batteries and Accessories 3,558,830 1,761,011 Total 12,660,529 7,566,327 March 31, December 31, 2019 2018 (Unaudited) $ $ Total Assets Lithium Business 221,165,885 231,795,621 Ni-MH Batteries and Accessories 62,938,255 56,260,478 Total 284,104,140 288,056,099 |
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, 2019 2018 (Unaudited) (Unaudited) $ $ Net sales China Mainland 27,971,035 28,305,763 Asia, others 23,070,714 15,754,396 Europe 4,620,331 4,537,903 North America 2,317,526 1,164,831 Others 133,874 20,560 58,113,480 49,783,453 March 31, December 31, 2019 2018 (Unaudited) $ $ Accounts receivable China Mainland 37,572,057 38,048,651 Asia, others 17,487,874 33,237,051 Europe 3,244,105 5,413,343 North America 696,234 566,769 Others 37,499 14,003 59,037,769 77,279,817 |
Related party balance and tra_2
Related party balance and transaction (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary Of Related Party Outstandings [Table Text Block] | Related party balance March 31 December 31, 2019 2018 (Unaudited) $ $ Accounts receivable - 476,093 Other receivable 61,131 1,570 Amount due from a related party- GZ Highpower 61,131 477,663 Other payable-investment (1) 104,178 408,867 Loan from Mr. Dang Yu Pan (2) 8,907,582 5,707,984 Amount due to related parties 9,011,760 6,116,851 (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 RMB2.1 million (approximately $0.3 million) to V-power. On January 14, 2019, the Company injected RMB2.1 million (approximately $0.3 million) to V-power and the unpaid amount was recorded as amount due to a related party. (See Note 8) (2) The Company entered into a loan agreement with a maximum amount of RMB60 million (approximately $8.9 million) with Mr. Dang Yu Pan on July 20, 2018. As of March 31, 2019, the Company withdrew an aggregate amount of RMB58.2 million (approximately $8.7 million). The interest rate is 5.65% per annum. The Company accrued interest expense $113,795 for the three months ended March 31, 2019. |
Schedule of Related Party Transactions [Table Text Block] | Related party transaction Three months ended March 31, 2019 2018 (Unaudited) (Unaudited) $ $ GZ Highpower Sales 200,733 225,787 V-Power Payment of investment 313,073 - Dang Yu Pan Loan from Dang Yu Pan 2,981,648 - Interest expense 113,795 |
Summary of significant accoun_3
Summary of significant accounting policies (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Significant Accounting Policies [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 5,272,558 | $ 0 | |
Operating Lease, Liability | $ 5,416,228 | ||
Customer Concentration Risk [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 10.90% | ||
Supplier Concentration Risk [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 12.20% | 21.20% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 12.60% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | $ 58,113,480 | $ 49,783,453 |
Lithium Business [Member] | ||
Revenues | 42,730,167 | |
Ni-MH Batteries and Accessories [Member] | ||
Revenues | 15,383,313 | |
China Mainland [Member] | ||
Revenues | 27,971,035 | 28,305,763 |
China Mainland [Member] | Lithium Business [Member] | ||
Revenues | 23,064,520 | |
China Mainland [Member] | Ni-MH Batteries and Accessories [Member] | ||
Revenues | 4,906,515 | |
Asia, others [Member] | ||
Revenues | 23,070,714 | 15,754,396 |
Asia, others [Member] | Lithium Business [Member] | ||
Revenues | 17,011,230 | |
Asia, others [Member] | Ni-MH Batteries and Accessories [Member] | ||
Revenues | 6,059,484 | |
Europe [Member] | ||
Revenues | 4,620,331 | 4,537,903 |
Europe [Member] | Lithium Business [Member] | ||
Revenues | 1,403,314 | |
Europe [Member] | Ni-MH Batteries and Accessories [Member] | ||
Revenues | 3,217,017 | |
North America [Member] | ||
Revenues | 2,317,526 | 1,164,831 |
North America [Member] | Lithium Business [Member] | ||
Revenues | 1,251,103 | |
North America [Member] | Ni-MH Batteries and Accessories [Member] | ||
Revenues | 1,066,423 | |
Other [Member] | ||
Revenues | 133,874 | $ 20,560 |
Other [Member] | Lithium Business [Member] | ||
Revenues | 0 | |
Other [Member] | Ni-MH Batteries and Accessories [Member] | ||
Revenues | $ 133,874 |
Accounts receivable, net (Detai
Accounts receivable, net (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts receivable | $ 59,189,232 | $ 77,340,837 |
Less: allowance for doubtful accounts | 151,463 | 61,020 |
Accounts receivable, net | $ 59,037,769 | $ 77,279,817 |
Inventories (Details)
Inventories (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Raw materials | $ 28,701,009 | $ 25,952,099 |
Work in progress | 9,377,147 | 10,192,772 |
Finished goods | 20,141,273 | 18,348,119 |
Packing materials | 31,193 | 14,394 |
Consumables | 205,660 | 283,077 |
Inventories | $ 58,456,282 | $ 54,790,461 |
Property, plant and equipment_3
Property, plant and equipment, net (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Cost | ||
Construction in progress | $ 11,339,810 | $ 6,991,889 |
Furniture, fixtures and office equipment | 7,699,164 | 7,221,527 |
Leasehold improvement | 7,258,819 | 7,090,162 |
Machinery and equipment | 48,551,295 | 40,316,428 |
Motor vehicles | 1,609,150 | 1,508,398 |
Buildings | 19,534,641 | 19,166,951 |
Property, plant and equipment, cost | 95,992,879 | 82,295,355 |
Less: accumulated depreciation | 27,844,407 | 25,772,178 |
Property, plant and equipment, net | $ 68,148,472 | $ 56,523,177 |
Property, plant and equipment_4
Property, plant and equipment, net (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 1,700,934 | $ 1,445,700 | |
Property Plant And Equipment Deductions For Government Grants | $ 75,584 | ||
Pledged Assets Not Separately Reported Property Plant And Equipment | 8,995,968 | ||
Huizhou Facilities [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Pledged Assets Not Separately Reported Property Plant And Equipment | 8,641,385 | 8,536,246 | |
Shenzhen Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Pledged Assets Not Separately Reported Property Plant And Equipment | $ 354,583 | $ 353,752 |
Leases (Details)
Leases (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||
Operating | $ 5,272,558 | $ 0 |
Total leased assets | 5,272,558 | |
Liabilities [Abstract] | ||
Operating - current | 1,866,177 | 0 |
Operating - non current | 3,550,051 | $ 0 |
Total lease liabilities | 5,416,228 | |
Right-of-use assets [Member] | ||
Assets [Abstract] | ||
Operating | 5,272,558 | |
Lease liabilities, current [Member] | ||
Liabilities [Abstract] | ||
Operating - current | 1,866,177 | |
Lease liabilities, non current [Member] | ||
Liabilities [Abstract] | ||
Operating - non current | $ 3,550,051 |
Leases (Details 1)
Leases (Details 1) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lease Costs | |
Total net lease costs | $ 757,707 |
Cost of sales Selling and distribution expenses General and administrative expenses Research and development expenses [Member] | |
Lease Costs | |
Operating lease expense | $ 757,707 |
Leases (Details 2)
Leases (Details 2) | Mar. 31, 2019USD ($) |
Remaining 2019 | $ 1,635,280 |
2020 | 1,888,266 |
2021 | 1,715,654 |
2022 | 745,078 |
Total lease payments | 5,984,278 |
Less: interest | 568,050 |
Present value of lease liabilities | $ 5,416,228 |
Leases (Details 3)
Leases (Details 3) | Dec. 31, 2018USD ($) | [1] |
2019 | $ 2,288,437 | |
2020 | 1,790,861 | |
2021 | 1,621,298 | |
2022 | 668,792 | |
Future minimum rental payments | $ 6,369,388 | |
[1] | Amounts are based on ASC 840, Leases that was superseded upon our adoption of ASC 842, Leases on January 1, 2019. |
Leases (Details 4)
Leases (Details 4) | 3 Months Ended |
Mar. 31, 2019 | |
Weighted Average Remaining Lease Term | |
Operating leases | 3 years |
Weighted Average Discount Rate | |
Operating leases | 6.18% |
Leases (Details 5)
Leases (Details 5) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lease, Cost [Abstract] | |
Operating cash flows from operating leases | $ 626,145 |
Long-term investments (Details)
Long-term investments (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | |
Long-term Investments | $ 9,768,087 | $ 9,993,852 | |
Ganzhou Highpower Technology Company Limited [Member] | |||
Equity Method Investments | [1] | $ 7,490,318 | $ 7,683,900 |
Equity Method Investment, Ownership Percentage | [1] | 31.294% | 31.294% |
Shenzhen V-power Innovative Technology Co., Ltd ("V-power") [Member] | |||
Equity Method Investments | [2] | $ 530,662 | $ 595,730 |
Equity Method Investment, Ownership Percentage | [2] | 49.00% | 49.00% |
Huizhou Yipeng Energy Technology Co Ltd [Member] | |||
Cost Method Investments | $ 1,747,107 | $ 1,714,222 | |
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. | ||
[2] | Investment in V-power On February 28, 2018, the Company signed an investment 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. In addition, the Company agreed 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, 2019, the Company injected RMB4.2 million (approximately $0.6 million) to V-power, and the unpaid amount was recorded as amount due to a related party (See Note 17). |
Long-term investments (Details
Long-term investments (Details Textual) ¥ in Millions | 3 Months Ended | 13 Months Ended | ||||||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Feb. 28, 2019 | Mar. 31, 2019CNY (¥) | Jan. 14, 2019USD ($) | Jan. 14, 2019CNY (¥) | Apr. 28, 2018USD ($) | Apr. 28, 2018CNY (¥) | Feb. 28, 2018USD ($) | Feb. 28, 2018CNY (¥) | |
Income (Loss) from Equity Method Investments | $ (418,204) | $ 156,250 | ||||||||
Equity Method Investment, Additional Information | In addition, the Company agreed 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; and 2. valuation of V-power higher or equal to RMB30 million before equity issuance. | |||||||||
Shenzhen V-Power Innovative Technology Co Ltd [Member] | ||||||||||
Equity Method Investments | $ 700,000 | ¥ 4.9 | ||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | ||||||||
V-Power [Member] | ||||||||||
Income (Loss) from Equity Method Investments | (76,628) | 0 | ||||||||
Related Party Transaction, Due from (to) Related Party | 600,000 | ¥ 4.2 | $ 300,000 | ¥ 2.1 | $ 300,000 | ¥ 2.1 | ||||
GZ Highpower [Member] | ||||||||||
Income (Loss) from Equity Method Investments | $ (341,576) | $ 156,250 |
Taxation (Details)
Taxation (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule Of Taxation [Line Items] | ||
Current | $ 387,825 | $ 346,937 |
Deferred | (102,366) | (356,616) |
Total income taxes expense (benefit) | $ 285,459 | $ (9,679) |
Taxation (Details 1)
Taxation (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule Of Taxation [Line Items] | ||
Income (loss) before tax | $ 593,180 | $ (1,128,615) |
Provision for income taxes at PRC statutory income tax rate (25%) | 148,295 | (282,154) |
Impact of different tax rates in other jurisdictions | 118,621 | 58,660 |
Effect of PRC preferential tax rate | (190,307) | 6,453 |
R&D expenses eligible for super deduction | (138,394) | 0 |
Other non-deductible expenses | 100,362 | 16,576 |
Change in valuation allowance of deferred tax assets | 246,882 | 190,786 |
Total income taxes expense (benefit) | $ 285,459 | $ (9,679) |
Taxation (Details 2)
Taxation (Details 2) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule Of Taxation [Line Items] | ||
Tax loss carry-forward | $ 1,408,109 | $ 1,096,956 |
Allowance for doubtful receivables | 22,719 | 9,153 |
Impairment for inventory | 382,398 | 382,375 |
Difference for sales cut-off | 25,340 | 15,526 |
Deferred government grants | 70,967 | 69,631 |
Property, plant and equipment subsidized by government grant | 246,965 | 250,563 |
Impairment for property, plant and equipment | 117,384 | 138,122 |
Total gross deferred tax assets | 2,273,882 | 1,962,326 |
Valuation allowance | (1,290,003) | (1,096,956) |
Total net deferred tax assets | $ 983,879 | $ 865,370 |
Taxation (Details Textual)
Taxation (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 10 Months Ended | 12 Months Ended | |
Dec. 22, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Schedule Of Taxation [Line Items] | |||||
Value Added Tax Percentage Of Revenue | 16.00% | 17.00% | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 34.00% | ||
Valuation Allowance Deferred Tax Asset In Increase | $ 200,000 | $ 200,000 | |||
Low Taxed Income Description | profits of greater than 10% | ||||
Global Intangible Low Taxed Income | $ 7,830,673 | ||||
Amount of Tax Offset by Foreign Tax Credit | $ 245,585 | ||||
Effective Income Tax Rate Reconciliation At Federal Statutory future Income Tax Rate | 10.50% | ||||
Percentage of Reduction in Global Intangible Low Taxed Income | 50.00% | ||||
Description Of The New or Amended Rate Of Federal Statutory Tax | According to the policy, if no election has been made, the whole of the taxpaying entity's assessable profits will be chargeable to Profits Tax at the rate of 16.5% or 15%, as applicable. Because the preferential tax treatment is not elected by the Company, HKHTC is subject to income tax at a rate of 16.5%. | According to the policy, if no election has been made, the whole of the taxpaying entity's assessable profits will be chargeable to Profits Tax at the rate of 16.5% or 15%, as applicable. Because the preferential tax treatment is not elected by the Company, HKHTC is subject to income tax at a rate of 16.5%. | |||
Other Information Pertaining to Income Taxes | HKHTC, which was incorporated in Hong Kong, is subject to a corporate income tax rate of 16.5%. In accordance with the relevant tax laws and regulations of Hong Kong, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate on taxable income. In March 2018, the Hong Kong Government introduced a two-tiered profit tax rate regime by enacting the Inland Revenue (Amendment) (No.3) Ordinance 2018 (the "Ordinance"). Under the two-tiered profits tax rate regime, the first $2 million of assessable profits of qualifying corporations is taxed at 8.25% and the remaining assessable profits at 16.5%. The Ordinance is effective from the year of assessment 2018-2019. According to the policy, if no election has been made, the whole of the taxpaying entity's assessable profits will be chargeable to Profits Tax at the rate of 16.5% or 15%, as applicable. Because the preferential tax treatment is not elected by the Company, HKHTC is subject to income tax at a rate of 16.5%. | HKHTC, which was incorporated in Hong Kong, is subject to a corporate income tax rate of 16.5%. In accordance with the relevant tax laws and regulations of Hong Kong, a company registered in Hong Kong is subject to income taxes within Hong Kong at the applicable tax rate on taxable income. In March 2018, the Hong Kong Government introduced a two-tiered profit tax rate regime by enacting the Inland Revenue (Amendment) (No.3) Ordinance 2018 (the "Ordinance"). Under the two-tiered profits tax rate regime, the first $2 million of assessable profits of qualifying corporations is taxed at 8.25% and the remaining assessable profits at 16.5%. The Ordinance is effective from the year of assessment 2018-2019. According to the policy, if no election has been made, the whole of the taxpaying entity's assessable profits will be chargeable to Profits Tax at the rate of 16.5% or 15%, as applicable. Because the preferential tax treatment is not elected by the Company, HKHTC is subject to income tax at a rate of 16.5%. | |||
HONG KONG | |||||
Schedule Of Taxation [Line Items] | |||||
Corporate Income Tax Percentage | 16.50% | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 8.25% | 8.25% | |||
Operating Loss Carryforwards | $ 7,818,199 | ||||
Effective Income Tax Rate Reconcilation at Federal Statutory Rate On Amount Which Is Over and Above The Amount Assessable At Minimum Leviable Tax Rate | 16.5 | 16.5 | |||
CHINA | |||||
Schedule Of Taxation [Line Items] | |||||
Income Tax Exemption Percentage | 15.00% | 15.00% | |||
Operating Loss Carryforwards | $ 787,374 | ||||
Operating Loss Carryforwards Expiration Year | 2023 | ||||
CHINA | National High-tech Enterprise [Member] | |||||
Schedule Of Taxation [Line Items] | |||||
Income Tax Exemption Percentage | 15.00% | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% |
Notes payable (Details Textual)
Notes payable (Details Textual) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Notes payable [Line Items] | ||
Notes payable | $ 75,053,041 | $ 73,607,284 |
Short-term loans (Details Textu
Short-term loans (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | |||
Pledged Assets Not Separately Reported Property Plant And Equipment | $ 8,995,968 | ||
Interest Expense, Short-term Borrowings | 344,983 | $ 111,713 | |
Pledged Asset Land Use Right | $ 2,476,691 | ||
Minimum [Member] | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.616% | 5.23% | |
Maximum [Member] | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.5253% | 6.5253% |
Non-financial institution bor_2
Non-financial institution borrowing (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest Expense, Debt | $ 4,922 | $ 162,303 |
Repayments of Other Short-term Debt | $ 8,944,944 | $ 0 |
Lines of credit (Details Textua
Lines of credit (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Total Line of Credit | $ 109.6 | $ 102.6 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 33.6 | $ 23.8 |
Line of Credit Facility, Initiation Date | May 31, 2019 | Mar. 31, 2019 |
Line of Credit Facility, Expiration Date | Oct. 31, 2021 | Oct. 31, 2021 |
Earnings (loss) per share (Deta
Earnings (loss) per share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income attributable to the Company | $ 307,721 | $ (1,118,936) |
Weighted-average shares outstanding | ||
- Basic | 15,566,478 | 15,509,658 |
- Dilutive effects of equity incentive awards | 38,429 | 0 |
- Diluted | 15,604,907 | 15,509,658 |
Net income per share: | ||
- Basic | $ 0.02 | $ (0.07) |
- Diluted | $ 0.02 | $ (0.07) |
Defined contribution plan (Deta
Defined contribution plan (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Contribution Plan, Cost | $ 983,374 | $ 653,957 |
Segment information (Details)
Segment information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 58,113,480 | $ 49,783,453 |
Cost of Sales | 45,452,951 | 42,217,126 |
Gross Profit | 12,660,529 | 7,566,327 |
Lithium Batteries [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 42,730,167 | 36,596,655 |
Cost of Sales | 33,628,468 | 30,791,339 |
Gross Profit | 9,101,699 | 5,805,316 |
Ni-MH Batteries and Accessories [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 15,383,313 | 13,186,798 |
Cost of Sales | 11,824,483 | 11,425,787 |
Gross Profit | $ 3,558,830 | $ 1,761,011 |
Segment information (Details 1)
Segment information (Details 1) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 284,104,140 | $ 288,056,099 |
Lithium Batteries [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 221,165,885 | 231,795,621 |
Ni-MH Batteries and Accessories [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 62,938,255 | $ 56,260,478 |
Segment information (Details 2)
Segment information (Details 2) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 58,113,480 | $ 49,783,453 |
China Mainland [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 27,971,035 | 28,305,763 |
Asia, others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 23,070,714 | 15,754,396 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 4,620,331 | 4,537,903 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 2,317,526 | 1,164,831 |
Others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 133,874 | $ 20,560 |
Segment information (Details 3)
Segment information (Details 3) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | $ 59,037,769 | $ 77,279,817 |
China Mainland [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 37,572,057 | 38,048,651 |
Asia, others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 17,487,874 | 33,237,051 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 3,244,105 | 5,413,343 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | 696,234 | 566,769 |
Others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Accounts receivable | $ 37,499 | $ 14,003 |
Related party balance and tra_3
Related party balance and transaction (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | |
Accounts receivable | $ 0 | $ 476,093 | |
Other receivable | 61,131 | 1,570 | |
Amount due from a related party- GZ Highpower | 61,131 | 477,663 | |
Other payable-investment | [1] | 104,178 | 408,867 |
Loan from Mr. Dang Yu Pan | [2] | 8,907,582 | 5,707,984 |
Amount due to related parties | $ 9,011,760 | $ 6,116,851 | |
[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 RMB2.1 million (approximately $0.3 million) to V-power. On January 14, 2019, the Company injected RMB2.1 million (approximately $0.3 million) to V-power and the unpaid amount was recorded as amount due to a related party. (See Note 8) | ||
[2] | The Company entered into a loan agreement with a maximum amount of RMB60 million (approximately $8.9 million) with Mr. Dang Yu Pan on July 20, 2018. As of March 31, 2019, the Company withdrew an aggregate amount of RMB58.2 million (approximately $8.7 million). The interest rate is 5.65% per annum. The Company accrued interest expense $113,795 for the three months ended March 31, 2019. |
Related party balance and tra_4
Related party balance and transaction (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
V-Power [Abstract] | ||
Payment of investment | $ 313,073 | $ 317,188 |
Dang Yu Pan [Abstract] | ||
Loan from Dang Yu Pan | 2,981,648 | 0 |
GZ Highpower [Member] | ||
GZ Highpower [Abstract] | ||
Sales | 200,733 | 225,787 |
V-Power [Member] | ||
V-Power [Abstract] | ||
Payment of investment | 313,073 | 0 |
Dang Yu Pan [Member] | ||
Dang Yu Pan [Abstract] | ||
Loan from Dang Yu Pan | 2,981,648 | $ 0 |
Interest expense | $ 113,795 |
Related party balance and tra_5
Related party balance and transaction (Details Textual) ¥ in Millions | 3 Months Ended | |||||||||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Jan. 14, 2019USD ($) | Jan. 14, 2019CNY (¥) | Jul. 20, 2018USD ($) | Jul. 20, 2018CNY (¥) | Apr. 28, 2018USD ($) | Apr. 28, 2018CNY (¥) | Feb. 28, 2018USD ($) | Feb. 28, 2018CNY (¥) | |
Mr. Dang Yu Pan [Member] | ||||||||||
Interest Expense, Related Party | $ 113,795 | |||||||||
Loan Agreement Amount | $ 8,900,000 | ¥ 60 | ||||||||
Loan From Dang Yu Pan | 8,700,000 | ¥ 58.2 | ||||||||
Shenzhen V-Power Innovative Technology Co Ltd [Member] | ||||||||||
Equity Method Investments | $ 700,000 | ¥ 4.9 | ||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | ||||||||
V-Power [Member] | ||||||||||
Related Party Transaction, Due from (to) Related Party | $ 600,000 | ¥ 4.2 | $ 300,000 | ¥ 2.1 | $ 300,000 | ¥ 2.1 |