Highpower International (HPJ) 10-Q 13 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 13, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity Registrant Name	Highpower International, Inc.
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Trading Symbol	HPJ
Entity Common Stock, Shares Outstanding		15,690,533
Entity Central Index Key	0001368308
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current Assets:
Cash	$ 18,092,242	$ 24,916,484
Restricted cash	29,154,304	44,495,633
Accounts receivable, net	68,999,026	77,279,817
Amount due from a related party	146,119	477,663
Notes receivable	3,664,108	256,712
Advances to suppliers	463,891	2,292,843
Prepayments and other receivables	6,419,803	10,457,789
Inventories	51,980,426	54,790,461
Total Current Assets	178,919,919	214,967,402
Property, plant and equipment, net	65,089,990	56,523,177
Long-term prepayments	2,373,543	2,617,419
Land use right, net	2,406,173	2,445,751
Other assets	770,717	643,128
Deferred tax assets, net	935,443	865,370
Long-term investments	8,387,618	9,993,852
Right-of-use assets	10,213,704	0
TOTAL ASSETS	269,097,107	288,056,099
Current Liabilities:
Accounts payable	64,413,566	66,486,690
Deferred government grants	680,915	464,206
Short-term loans	24,662,933	24,856,744
Non-financial institution borrowing	0	8,761,426
Notes payable	60,168,272	73,607,284
Foreign exchange derivative liabilities	932,378	521,509
Amount due to related parties	101,869	6,116,851
Other payables and accrued liabilities	21,818,077	25,860,703
Income taxes payable	3,394,112	4,124,719
Lease liabilities, current	2,334,110	0
Total Current Liabilities	178,506,232	210,800,132
Long-term payable	359,033
Lease liabilities, non current	8,040,487	0
TOTAL LIABILITIES	186,905,752	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 June 30, 2019 and 15,559,658 at December 31, 2018, respectively)	1,557	1,556
Additional paid-in capital	14,257,469	13,863,282
Statutory and other reserves	8,012,052	8,012,052
Retained earnings	61,169,856	56,173,912
Accumulated other comprehensive loss	(1,249,579)	(794,835)
TOTAL EQUITY	82,191,355	77,255,967
TOTAL LIABILITIES AND EQUITY	$ 269,097,107	$ 288,056,099

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
CONDENSED CONSOLIDATED BALANCE SHEETS
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 (LOSS) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Net sales	$ 75,807,093	$ 64,923,960	$ 133,920,573	$ 114,707,413
Cost of sales	(57,436,018)	(53,614,034)	(102,888,969)	(95,831,160)
Gross profit	18,371,075	11,309,926	31,031,604	18,876,253
Research and development expenses	(4,380,399)	(3,592,760)	(7,367,108)	(6,154,597)
Selling and distribution expenses	(3,279,570)	(2,121,650)	(6,072,432)	(4,096,746)
General and administrative expenses	(5,027,418)	(3,910,188)	(9,850,907)	(8,024,998)
Foreign currency transaction gain (loss)	1,213,623	1,670,932	(37,272)	656,239
Total operating expenses	(11,473,764)	(7,953,666)	(23,327,719)	(17,620,102)
Income from operations	6,897,311	3,356,260	7,703,885	1,256,151
Changes in fair value of foreign exchange derivatives	(996,012)	(1,125,140)	(608,912)	(421,425)
Government grants	729,204	988,679	950,639	1,318,499
Other income	15,550	56,581	82,248	80,142
Equity in (loss) earnings of investees	(1,177,639)	160,070	(1,595,843)	316,320
Interest expenses , net	(38,675)	(312,814)	(509,098)	(554,666)
Income before taxes	5,429,739	3,123,636	6,022,919	1,995,021
Income taxes expenses	(741,516)	(409,321)	(1,026,975)	(399,642)
Net income	4,688,223	2,714,315	4,995,944	1,595,379
Comprehensive income
Net income	4,688,223	2,714,315	4,995,944	1,595,379
Foreign currency translation loss	(2,160,506)	(4,168,216)	(454,744)	(1,331,660)
Comprehensive income (loss)	$ 2,527,717	$ (1,453,901)	$ 4,541,200	$ 263,719
Earnings per share of common stock
- Basic	$ 0.30	$ 0.17	$ 0.32	$ 0.10
- Diluted	$ 0.30	$ 0.17	$ 0.32	$ 0.10
Weighted average number of common stock outstanding
- Basic	15,567,953	15,556,361	15,567,220	15,533,139
- Diluted	15,626,265	15,629,413	15,615,590	15,619,771

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net income	$ 4,995,944	$ 1,595,379
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	3,616,314	3,003,872
Bad debt expense	93,576	(472,799)
Loss on disposal of property, plant and equipment	94,147	159,458
Impairment of plant and equipment	75,783	0
Deferred taxes	(73,794)	(498,878)
Changes in fair value of foreign exchange derivatives	608,912	955,790
Equity in loss (earnings) of investees	1,595,843	(316,320)
Share based compensation	394,188	488,117
Changes in operating assets and liabilities:
Accounts receivable	8,198,062	(3,877,577)
Notes receivable	(3,459,522)	986,591
Advances to suppliers	1,848,529	(2,154,883)
Prepayments and other receivables	4,064,320	(4,921,059)
Amount due from a related party	334,879	740,408
Amount due to related parties	(138,767)	0
Inventories	2,668,278	(27,915,901)
Accounts payable	(7,588,132)	21,683,401
Deferred government grants	221,572	469,895
Other payables and accrued liabilities	(3,379,969)	3,578,815
Income taxes payable	(727,876)	(1,140,753)
Net cash flows provided by (used in) operating activities	13,442,287	(7,636,444)
Cash flows from investing activities
Acquisitions of plant and equipment	(6,700,225)	(5,681,723)
Payment for long-term investment	(310,201)	(328,927)
Net cash flows used in investing activities	(7,010,426)	(6,010,650)
Cash flows from financing activities
Proceeds from short-term bank loans	14,771,485	15,664,587
Repayments of short-term bank loans	(14,882,292)	0
Proceeds from a related party	2,954,297	0
Repayment of loan from a related party	(8,589,619)	0
Repayments of non-financial institution borrowing	(8,862,891)	(1,566,318)
Proceeds from notes payable	58,314,662	53,584,205
Repayments of notes payable	(71,701,335)	(55,920,682)
Payment of derivative instruments	(190,062)	0
Net cash flows (used in) provided by financing activities	(28,185,755)	11,761,792
Effect of foreign currency translation on cash	(411,677)	(1,130,850)
Net decrease in cash and restricted cash	(22,165,571)	(3,016,152)
Cash and restricted cash- beginning of year	69,412,117	40,456,117
Cash and restricted cash- end of year	47,246,546	37,439,965
Cash paid for:
Income taxes	1,960,545	2,039,273
Interest expenses	1,394,561	1,002,653
Non-cash investing and financing activities:
Shares issued for legal case settlement		212,500
Purchase of plant and equipment financed by accounts payable	5,715,931	0
Reconciliation of cash and restricted cash:
Cash	18,092,242	7,280,576
Restricted cash	29,154,304	30,159,389
Total cash and restricted cash shown in the condensed consolidated statements of cash flows	$ 69,412,117	$ 40,456,117

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGE IN EQUITY - USD ($)	Common stock [Member]	Additional paid-in capital [Member]	Statutory and other reserves [Member]	Retained earnings [Member]	Accumulated other comprehensive income [Member]	Total
Balance at Dec. 31, 2017	$ 1,551	$ 12,709,756	$ 6,549,815	$ 44,481,568	$ 3,469,495	$ 67,212,185
Balance (in shares) at Dec. 31, 2017	15,509,658
Foreign currency translation adjustments	$ 0	0	0	0	2,836,556	2,836,556
Share-based compensation expenses	0	241,421	0	0	0	241,421
Net income	0	0	0	(1,118,936)	0	(1,118,936)
Balance at Mar. 31, 2018	$ 1,551	12,951,177	6,549,815	43,362,632	6,306,051	69,171,226
Balance (in shares) at Mar. 31, 2018	15,509,658
Balance at Dec. 31, 2017	$ 1,551	12,709,756	6,549,815	44,481,568	3,469,495	67,212,185
Balance (in shares) at Dec. 31, 2017	15,509,658
Foreign currency translation adjustments						(1,331,660)
Net income						1,595,379
Balance at Jun. 30, 2018	$ 1,556	13,410,368	6,549,815	46,076,947	2,137,835	68,176,521
Balance (in shares) at Jun. 30, 2018	15,559,658
Balance at Mar. 31, 2018	$ 1,551	12,951,177	6,549,815	43,362,632	6,306,051	69,171,226
Balance (in shares) at Mar. 31, 2018	15,509,658
Shares issued for legal case settlement	$ 5	212,495	0	0	0	212,500
Shares issued for legal case settlement (in shares)	50,000
Foreign currency translation adjustments	$ 0	0	0	0	(4,168,216)	(4,168,216)
Share-based compensation expenses	0	246,696	0	0	0	246,696
Net income	0	0	0	2,714,315	0	2,714,315
Balance at Jun. 30, 2018	$ 1,556	13,410,368	6,549,815	46,076,947	2,137,835	68,176,521
Balance (in shares) at Jun. 30, 2018	15,559,658
Balance at Dec. 31, 2018	$ 1,556	13,863,282	8,012,052	56,173,912	(794,835)	77,255,967
Balance (in shares) at Dec. 31, 2018	15,559,658
Exercise of the warrants	$ 1	(1)	0	0	0	0
Exercise of the warrants (in shares)	8,295
Foreign currency translation adjustments	$ 0	0	0	0	1,705,762	1,705,762
Share-based compensation expenses	0	204,602	0	0	0	204,602
Net income	0	0	0	307,721	0	307,721
Balance at Mar. 31, 2019	$ 1,557	14,067,883	8,012,052	56,481,633	910,927	79,474,052
Balance (in shares) at Mar. 31, 2019	15,567,953
Balance at Dec. 31, 2018	$ 1,556	13,863,282	8,012,052	56,173,912	(794,835)	77,255,967
Balance (in shares) at Dec. 31, 2018	15,559,658
Foreign currency translation adjustments						(454,744)
Net income						4,995,944
Balance at Jun. 30, 2019	$ 1,557	14,257,469	8,012,052	61,169,856	(1,249,579)	82,191,355
Balance (in shares) at Jun. 30, 2019	15,567,953
Balance at Mar. 31, 2019	$ 1,557	14,067,883	8,012,052	56,481,633	910,927	79,474,052
Balance (in shares) at Mar. 31, 2019	15,567,953
Foreign currency translation adjustments	$ 0	0	0	0	(2,160,506)	(2,160,506)
Share-based compensation expenses	0	189,586	0	0	0	189,586
Net income	0	0	0	4,688,223	0	4,688,223
Balance at Jun. 30, 2019	$ 1,557	$ 14,257,469	$ 8,012,052	$ 61,169,856	$ (1,249,579)	$ 82,191,355
Balance (in shares) at Jun. 30, 2019	15,567,953

Organization

Organization	6 Months Ended
	Jun. 30, 2019
Organization
Organization	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	6 Months Ended
	Jun. 30, 2019
Summary of significant accounting policies
Summary of significant accounting policies	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 June 30, 2019, its consolidated results of operations for the three and six months ended June 30, 2019, cash flows for the six months ended June 30, 2019 and change in equity for the three and six months ended June 30, 2019, as applicable, have been made. Operating results for the three and six months ended June 30, 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 12.7% and 12.2% of the total sales for the three and six months ended June 30, 2019, respectively. No customer accounted for over 10% or more of the total sales during the three and six months ended June 30, 2018. One supplier accounted for 12.1% and 12.2% of the total purchase amount during the three and six months ended June 30, 2019, respectively. One supplier accounted for 12.0% and 13.3% of the total purchase amount during the three and six months ended June 30, 2018, respectively. One customer accounted for 16.4% of the accounts receivable as of June 30, 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. See Note 7 for disclosure required by ASC 842. 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, 2019
Revenue Recognition
Revenue Recognition	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 June 30, 2019 Six months ended June 30, 2019 Ni-MH Batteries and Ni-MH Batteries and Lithium Business Accessories Consolidated Lithium Business Accessories Consolidated (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ $ $ Primary Geographic Markets China Mainland 26,502,519 3,641,324 30,143,843 49,567,039 8,547,839 58,114,878 Asia, others 33,804,072 1,911,993 35,716,065 50,815,302 7,971,477 58,786,779 Europe 1,501,876 7,487,090 8,988,966 2,905,190 10,704,107 13,609,297 North America 446,867 511,352 958,219 1,697,970 1,577,775 3,275,745 Others — — — — 133,874 133,874 Total sales 62,255,334 13,551,759 75,807,093 104,985,501 28,935,072 133,920,573 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	6 Months Ended
	Jun. 30, 2019
Accounts receivable, net
Accounts receivable, net	4. Accounts receivable, net June 30, December 31, 2019 2018 (Unaudited) $ $ Accounts receivable 69,152,027 77,340,837 Less: allowance for doubtful accounts 153,001 61,020 68,999,026 77,279,817

Inventories

Inventories	6 Months Ended
	Jun. 30, 2019
Inventories
Inventories	5. Inventories June 30, December 31, 2019 2018 (Unaudited) $ $ Raw materials 20,577,090 25,952,099 Work in progress 10,619,229 10,192,772 Finished goods 20,560,649 18,348,119 Packing materials 33,291 14,394 Consumables 190,167 283,077 51,980,426 54,790,461

Property, plant and equipment,

Property, plant and equipment, net	6 Months Ended
	Jun. 30, 2019
Property, plant and equipment, net
Property, plant and equipment, net	6. Property, plant and equipment, net June 30, December 31, 2019 2018 (Unaudited) $ $ Cost Construction in progress 8,615,548 6,991,889 Furniture, fixtures and office equipment 8,011,061 7,221,527 Leasehold improvement 7,707,640 7,090,162 Machinery and equipment 49,048,270 40,316,428 Motor vehicles 1,574,860 1,508,398 Buildings 19,101,682 19,166,951 94,059,061 82,295,355 Less: accumulated depreciation 28,969,071 25,772,178 65,089,990 56,523,177 The construction in process represented buildings and machines under construction or testing as of June 30, 2019 and December 31, 2018. The Company recorded depreciation expenses of $1,858,661 and $1,499,538 for the three months ended June 30, 2019 and 2018, respectively, and $3,559,595 and $2,945,238 for the six months ended June 30, 2019 and 2018, respectively. During the six months ended June 30, 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 loan. The net carrying amounts of the buildings were $8,392,542 and $8,536,246 as of June 30, 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 $340,901 and $353,752 as of June 30, 2019 and December 31, 2018, respectively.

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases
Leases	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 2024. 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 June 30, 2019: Balance Sheet Location June 30, 2019 (Unaudited) $ Assets Operating Right-of-use assets 10,213,704 Total leased assets 10,213,704 Liabilities Operating - current Lease Liabilities, current 2,334,110 Operating - non current Lease liabilities, non current 8,040,487 Total lease liabilities 10,374,597 The components of lease expense for the three and six months ended June 30, 2019 were as follows: Three months ended Six months ended Statement of Income Location June 30, 2019 June 30, 2019 (Unaudited) (Unaudited) $ $ Lease Costs Operating lease expense Cost of sales, Selling and distribution expenses, General and administrative expenses, Research and development expenses 1,521,856 Total net lease costs 1,521,856 Maturity of lease liabilities under the non-cancelable operating leases as of June 30, 2019 were as follows: Operating (Unaudited) $ Remaining 2019 1,281,201 2020 3,189,784 2021 3,361,853 2022 2,596,847 2023 980,182 2024 167,850 Total lease payments 11,577,717 Less: interest 1,203,120 Present value of lease liabilities 10,374,597 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 as of June 30, 2019: June 30, 2019 Weighted Average Remaining Lease Term Operating leases 3.52 years 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 and six months ended June 30, 2019 is as follows: Three months ended Six months ended June 30, 2019 June 30, 2019 (Unaudited) (Unaudited) $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,358,235

Long-term investments

Long-term investments	6 Months Ended
	Jun. 30, 2019
Long-term investments
Long-term investments	8. Long-term investments June 30, 2019 December 31, 2018 (Unaudited) Interest Interest $ % $ % Equity method investments -Ganzhou Highpower Technology Company Limited (“GZ Highpower”) (1) 6,188,223 31.294 % 7,683,900 31.294 % -Shenzhen V-power Innovative Technology Co., Ltd (“V-power”) (2) 491,011 49.000 % 595,730 49.000 % Cost method investment -Huizhou Yipeng Energy Technology Co Ltd. 1,708,384 4.654 % 1,714,222 4.654 % 8,387,618 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 $1,150,032 and $1,491,608 for the three and six months ended June 30, 2019, respectively. The equity in earnings of investee was $179,964 and $336,214 for the three and six months ended June 30, 2018, respectively. (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 June 30, 2019, the requirements have not been met and no such transfer was needed. As of June 30, 2019, the Company has 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 $27,607 and $104,235 for the three and six months ended June 30, 2019, respectively. The equity in loss of investee was $19,894 and $19,894 for the three and six months ended June 30, 2018, respectively.

Taxation

Taxation	6 Months Ended
	Jun. 30, 2019
Taxation
Taxation	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, and changed from 16% to 13% on April 1, 2019 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% owned foreign controlled corporations. The Company has evaluated whether it has additional provision amount resulted by the GILTI inclusion on current earnings and profits of its foreign controlled corporations. The law also provides that corporate taxpayers may benefit from a 50% reduction in the GILTI inclusion, which effectively reduces the 21% U.S. corporate tax rate on the foreign income to an effective rate of 10.5%. The GILTI inclusion further provides for a foreign tax credit in connection with the foreign taxes paid. In 2019, the Company recorded a GILTI inclusion of $8,210,686. However, the total tax of $898,875 is fully offset by the deemed paid foreign tax credit. The Company completed quantification of the Tax Act impact in 2018. 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 Company, HKHTC is 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 expenses are: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Current 712,944 551,583 1,100,769 898,520 Deferred 28,572 (142,262) (73,794) (498,878) Total income taxes expenses 741,516 409,321 1,026,975 399,642 The reconciliation of income taxes expenses computed at the PRC statutory tax rate to income tax expense is as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Income before tax 5,429,739 3,123,636 6,022,919 1,995,021 Provision for income taxes at PRC statutory income tax rate (25%) 1,357,435 780,909 1,505,730 498,755 Impact of different tax rates in other jurisdictions 88,722 37,886 207,343 96,546 Effect of PRC preferential tax rate (494,344) (272,880) (684,651) (266,427) R&D expenses eligible for super deduction (541,876) (334,892) (680,270) (334,892) Other non-deductible expenses 87,610 32,175 187,972 48,751 Change in valuation allowance of deferred tax assets 243,969 166,123 490,851 356,909 Effective enterprise income tax expenses 741,516 409,321 1,026,975 399,642 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. June 30, December 31, 2019 2018 (Unaudited) $ $ Deferred tax assets Tax loss carry-forward 1,604,854 1,096,956 Allowance for doubtful receivables 22,950 9,153 Impairment for inventory 409,863 382,375 Difference for sales cut-off 33,519 15,526 Deferred government grants 102,137 69,631 Property, plant and equipment subsidized by government grant 233,274 250,563 Impairment for property, plant and equipment 122,431 138,122 Total gross deferred tax assets 2,529,028 1,962,326 Valuation allowance (1,403,764) (1,096,956) Total deferred tax assets, net of valuation allowance 1,125,264 865,370 Deferred tax liability PPE, due to difference in depreciation (189,821) — Total deferred tax liability (189,821) — Total net deferred tax assets 935,443 865,370 As of June 30, 2019, the Company had net operating loss carry-forwards in Hong Kong of $8,507,665 without expiration and in the PRC of $1,340,597, which will start to 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 June 30, 2019 and December 31, 2018. The net valuation allowance increased by $0.3 million and $0.4 million during the six months ended June 30, 2019 and 2018, respectively.

Notes payable

Notes payable	6 Months Ended
	Jun. 30, 2019
Notes payable
Notes payable	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 $60,168,272 and $73,607,284 as of June 30, 2019 and December 31, 2018, respectively.

Short-term loans

Short-term loans	6 Months Ended
	Jun. 30, 2019
Short-term loans
Short-term loans	11. Short-term loans As of June 30, 2019, the bank borrowings were for working capital and capital expenditure purposes with maturity of one year 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 $2,406,173 and the buildings with a net carrying amount of $8,733,443, respectively. The loans were primarily obtained from three banks with interest rates ranging from 5.2200% to 6.5253% per annum and 5.2300% to 6.5253% per annum as of June 30, 2019 and December 31, 2018, respectively. The interest expenses were $344,983 and $653,565 for the three and six months ended June 30, 2019, respectively. The interest expenses were $118,886 and $230,599 for the three and six months ended June 30, 2018, respectively.

Non-financial institution borro

Non-financial institution borrowing	6 Months Ended
	Jun. 30, 2019
Non-financial institution borrowings
Non-financial institution borrowing	12. Non-financial institution borrowing For the six months ended June 30, 2019, the Company paid back $8,862,891 to the third party non-financial institution. The interest expense of the above borrowing was $nil and $4,877 for the three and six months ended June 30, 2019. The interest expense of the above borrowing was $134,660 and $296,963 for the three and six months ended June 30, 2018.

Lines of credit

Lines of credit	6 Months Ended
	Jun. 30, 2019
Lines of credit
Lines of credit	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 June 30, 2019, the total and unused lines of credit were $107.2 million and $27.6 million, respectively, with maturity dates from August 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 and his wife. The Company’s buildings and the land use right were pledged as collateral for these lines of credit.

Earnings per share

Earnings per share	6 Months Ended
	Jun. 30, 2019
Earnings per share
Earnings per share	14. 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, 2019 and 2018. Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Numerator: Net income 4,688,223 2,714,315 4,995,944 1,595,379 　 Denominator: Weighted-average shares outstanding - Basic 15,567,953 15,556,361 15,567,220 15,533,139 - Dilutive effects of equity incentive awards 58,312 73,052 48,370 86,632 - Diluted 15,626,265 15,629,413 15,615,590 15,619,771 Net income per share: - Basic 0.30 0.17 0.32 0.10 - Diluted 0.30 0.17 0.32 0.10 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.

Defined contribution plan

Defined contribution plan	6 Months Ended
	Jun. 30, 2019
Defined contribution plan
Defined contribution plan	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 $996,410 and $1,979,784 for the three and six months ended June 30, 2019. The total contributions made, which were expensed as incurred, were $729,595 and $1,383,552 for the three and six months ended June 30, 2018.

Segment information

Segment information	6 Months Ended
	Jun. 30, 2019
Segment information
Segment information	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 June 30, Six months ended June 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Net sales Lithium Business 62,255,334 48,503,856 104,985,501 85,100,511 Ni-MH Batteries and Accessories 13,551,759 16,420,104 28,935,072 29,606,902 Total 75,807,093 64,923,960 133,920,573 114,707,413 Cost of Sales Lithium Business 47,382,082 39,755,643 81,010,550 70,546,982 Ni-MH Batteries and Accessories 10,053,936 13,858,391 21,878,419 25,284,178 Total 57,436,018 53,614,034 102,888,969 95,831,160 Gross Profit Lithium Business 14,873,252 8,748,213 23,974,951 14,553,529 Ni-MH Batteries and Accessories 3,497,823 2,561,713 7,056,653 4,322,724 Total 18,371,075 11,309,926 31,031,604 18,876,253 June 30, December 31, 2019 2018 (Unaudited) $ $ Total Assets Lithium Business 215,321,303 231,795,621 Ni-MH Batteries and Accessories 53,775,804 56,260,478 Total 269,097,107 288,056,099 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 June 30, Six months ended June 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Net sales China Mainland 30,143,843 32,880,005 58,114,878 61,185,768 Asia, others 35,716,065 25,183,900 58,786,779 40,938,296 Europe 8,988,966 4,849,360 13,609,297 9,387,263 North America 958,219 1,998,243 3,275,745 3,163,074 Others — 12,452 133,874 33,012 75,807,093 64,923,960 133,920,573 114,707,413 June 30, December 31, 2019 2018 (Unaudited) $ $ Accounts receivable China Mainland 33,494,645 38,048,651 Asia, others 28,138,970 33,237,051 Europe 6,596,124 5,413,343 North America 769,287 566,769 Others — 14,003 68,999,026 77,279,817

Related party balance and trans

Related party balance and transaction	6 Months Ended
	Jun. 30, 2019
Related party transaction
Related party transaction	17. Related party balance and transaction Related party balance June 30, December 31, 2019 2018 (Unaudited) $ $ Accounts receivable 86,343 476,093 Other receivable 59,776 1,570 Amount due from a related party- GZ Highpower 146,119 477,663 Other payable-investment (1) 101,869 408,867 Loan from Mr. Dang Yu Pan (2) — 5,707,984 Amount due to related parties 101,869 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 $8.7 million) with Mr. Dang Yu Pan on July 20, 2018. As of June 30, 2019, the Company repaid the loans. The interest rate is 5.65% per annum. The Company accrued interest expense $20,135 and $133,930 for the three and six months ended June 30, 2019, respectively. Related party transaction Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ GZ Highpower Sales 239,573 433,147 440,306 658,934 V-Power Payment of investment — — 310,201 — Dang Yu Pan Loan from Dang Yu Pan — — 2,954,297 — Repayment of Loan from Dang Yu Pan 8,589,619 — 8,589,619 — Interest expense 20,135 — 133,930 —

Subsequent event

Subsequent event	6 Months Ended
	Jun. 30, 2019
Subsequent event
Subsequent event	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)	6 Months Ended
	Jun. 30, 2019
Summary of significant accounting policies
Basis of presentation	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 June 30, 2019, its consolidated results of operations for the three and six months ended June 30, 2019, cash flows for the six months ended June 30, 2019 and change in equity for the three and six months ended June 30, 2019, as applicable, have been made. Operating results for the three and six months ended June 30, 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	Concentrations of credit risk One major customer accounted for 12.7% and 12.2% of the total sales for the three and six months ended June 30, 2019, respectively. No customer accounted for over 10% or more of the total sales during the three and six months ended June 30, 2018. One supplier accounted for 12.1% and 12.2% of the total purchase amount during the three and six months ended June 30, 2019, respectively. One supplier accounted for 12.0% and 13.3% of the total purchase amount during the three and six months ended June 30, 2018, respectively. One customer accounted for 16.4% of the accounts receivable as of June 30, 2019. No customer accounted for 10% or more of the accounts receivable as of December 31, 2018.
Recently issued accounting standards	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. See Note 7 for disclosure required by ASC 842. 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, 2019
Revenue Recognition
Schedule of Reportable Business Segments	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 June 30, 2019 Six months ended June 30, 2019 Ni-MH Batteries and Ni-MH Batteries and Lithium Business Accessories Consolidated Lithium Business Accessories Consolidated (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ $ $ Primary Geographic Markets China Mainland 26,502,519 3,641,324 30,143,843 49,567,039 8,547,839 58,114,878 Asia, others 33,804,072 1,911,993 35,716,065 50,815,302 7,971,477 58,786,779 Europe 1,501,876 7,487,090 8,988,966 2,905,190 10,704,107 13,609,297 North America 446,867 511,352 958,219 1,697,970 1,577,775 3,275,745 Others — — — — 133,874 133,874 Total sales 62,255,334 13,551,759 75,807,093 104,985,501 28,935,072 133,920,573

Accounts receivable, net (Table

Accounts receivable, net (Tables)	6 Months Ended
	Jun. 30, 2019
Accounts receivable, net
Schedule of Accounts Receivable	June 30, December 31, 2019 2018 (Unaudited) $ $ Accounts receivable 69,152,027 77,340,837 Less: allowance for doubtful accounts 153,001 61,020 68,999,026 77,279,817

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2019
Inventories
Schedule of Inventory	June 30, December 31, 2019 2018 (Unaudited) $ $ Raw materials 20,577,090 25,952,099 Work in progress 10,619,229 10,192,772 Finished goods 20,560,649 18,348,119 Packing materials 33,291 14,394 Consumables 190,167 283,077 51,980,426 54,790,461

Property, plant and equipment_2

Property, plant and equipment, net (Tables)	6 Months Ended
	Jun. 30, 2019
Property, plant and equipment, net
Schedule of Property Plant and Equipment	June 30, December 31, 2019 2018 (Unaudited) $ $ Cost Construction in progress 8,615,548 6,991,889 Furniture, fixtures and office equipment 8,011,061 7,221,527 Leasehold improvement 7,707,640 7,090,162 Machinery and equipment 49,048,270 40,316,428 Motor vehicles 1,574,860 1,508,398 Buildings 19,101,682 19,166,951 94,059,061 82,295,355 Less: accumulated depreciation 28,969,071 25,772,178 65,089,990 56,523,177

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases
Summary of Leases by Balance Sheet Location	The following table provides a summary of leases by balance sheet location as of June 30, 2019: Balance Sheet Location June 30, 2019 (Unaudited) $ Assets Operating Right-of-use assets 10,213,704 Total leased assets 10,213,704 Liabilities Operating - current Lease Liabilities, current 2,334,110 Operating - non current Lease liabilities, non current 8,040,487 Total lease liabilities 10,374,597
Schedule of Components of Lease Expense	The components of lease expense for the three and six months ended June 30, 2019 were as follows: Three months ended Six months ended Statement of Income Location June 30, 2019 June 30, 2019 (Unaudited) (Unaudited) $ $ Lease Costs Operating lease expense Cost of sales, Selling and distribution expenses, General and administrative expenses, Research and development expenses 1,521,856 Total net lease costs 1,521,856
Schedule of Maturity of Lease Liabilities	Maturity of lease liabilities under the non-cancelable operating leases as of June 30, 2019 were as follows: Operating (Unaudited) $ Remaining 2019 1,281,201 2020 3,189,784 2021 3,361,853 2022 2,596,847 2023 980,182 2024 167,850 Total lease payments 11,577,717 Less: interest 1,203,120 Present value of lease liabilities 10,374,597
Schedule of Future Minimum Rental Payments under Non-cancelable Operating Leases	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
Schedule of Lease Terms and Discount Rates	The following table provides a summary of the lease terms and discount rates as of June 30, 2019: June 30, 2019 Weighted Average Remaining Lease Term Operating leases 3.52 years Weighted Average Discount Rate Operating leases 6.18 %
Schedule of Supplemental Information Related to Leases	Supplemental information related to the leases for the three and six months ended June 30, 2019 is as follows: Three months ended Six months ended June 30, 2019 June 30, 2019 (Unaudited) (Unaudited) $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,358,235

Long-term investments (Tables)

Long-term investments (Tables)	6 Months Ended
	Jun. 30, 2019
Long-term investments
Schedule Of Long Term Investment	June 30, 2019 December 31, 2018 (Unaudited) Interest Interest $ % $ % Equity method investments -Ganzhou Highpower Technology Company Limited (“GZ Highpower”) (1) 6,188,223 31.294 % 7,683,900 31.294 % -Shenzhen V-power Innovative Technology Co., Ltd (“V-power”) (2) 491,011 49.000 % 595,730 49.000 % Cost method investment -Huizhou Yipeng Energy Technology Co Ltd. 1,708,384 4.654 % 1,714,222 4.654 % 8,387,618 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 $1,150,032 and $1,491,608 for the three and six months ended June 30, 2019, respectively. The equity in earnings of investee was $179,964 and $336,214 for the three and six months ended June 30, 2018, respectively. (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 June 30, 2019, the requirements have not been met and no such transfer was needed. As of June 30, 2019, the Company has 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)	6 Months Ended
	Jun. 30, 2019
Taxation
Schedule of Components of Income Taxes Expenses	The components of the income taxes expenses are: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Current 712,944 551,583 1,100,769 898,520 Deferred 28,572 (142,262) (73,794) (498,878) Total income taxes expenses 741,516 409,321 1,026,975 399,642
Schedule of Reconciliation of Income Taxes Expenses Computed at PRC Statutory Tax Rate to Income Tax Expense	The reconciliation of income taxes expenses computed at the PRC statutory tax rate to income tax expense is as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Income before tax 5,429,739 3,123,636 6,022,919 1,995,021 Provision for income taxes at PRC statutory income tax rate (25%) 1,357,435 780,909 1,505,730 498,755 Impact of different tax rates in other jurisdictions 88,722 37,886 207,343 96,546 Effect of PRC preferential tax rate (494,344) (272,880) (684,651) (266,427) R&D expenses eligible for super deduction (541,876) (334,892) (680,270) (334,892) Other non-deductible expenses 87,610 32,175 187,972 48,751 Change in valuation allowance of deferred tax assets 243,969 166,123 490,851 356,909 Effective enterprise income tax expenses 741,516 409,321 1,026,975 399,642
Schedule of Tax Effect of Major Type of Temporary Difference	The following represents the tax effect of each major type of temporary difference. June 30, December 31, 2019 2018 (Unaudited) $ $ Deferred tax assets Tax loss carry-forward 1,604,854 1,096,956 Allowance for doubtful receivables 22,950 9,153 Impairment for inventory 409,863 382,375 Difference for sales cut-off 33,519 15,526 Deferred government grants 102,137 69,631 Property, plant and equipment subsidized by government grant 233,274 250,563 Impairment for property, plant and equipment 122,431 138,122 Total gross deferred tax assets 2,529,028 1,962,326 Valuation allowance (1,403,764) (1,096,956) Total deferred tax assets, net of valuation allowance 1,125,264 865,370 Deferred tax liability PPE, due to difference in depreciation (189,821) — Total deferred tax liability (189,821) — Total net deferred tax assets 935,443 865,370

Earnings per share (Tables)

Earnings per share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings per share
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted earnings per common share for the three and six months ended June 30, 2019 and 2018. Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Numerator: Net income 4,688,223 2,714,315 4,995,944 1,595,379 　 Denominator: Weighted-average shares outstanding - Basic 15,567,953 15,556,361 15,567,220 15,533,139 - Dilutive effects of equity incentive awards 58,312 73,052 48,370 86,632 - Diluted 15,626,265 15,629,413 15,615,590 15,619,771 Net income per share: - Basic 0.30 0.17 0.32 0.10 - Diluted 0.30 0.17 0.32 0.10

Segment information (Tables)

Segment information (Tables)	6 Months Ended
	Jun. 30, 2019
Segment information
Schedule of Segment Reporting Information,by segment	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 June 30, Six months ended June 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Net sales Lithium Business 62,255,334 48,503,856 104,985,501 85,100,511 Ni-MH Batteries and Accessories 13,551,759 16,420,104 28,935,072 29,606,902 Total 75,807,093 64,923,960 133,920,573 114,707,413 Cost of Sales Lithium Business 47,382,082 39,755,643 81,010,550 70,546,982 Ni-MH Batteries and Accessories 10,053,936 13,858,391 21,878,419 25,284,178 Total 57,436,018 53,614,034 102,888,969 95,831,160 Gross Profit Lithium Business 14,873,252 8,748,213 23,974,951 14,553,529 Ni-MH Batteries and Accessories 3,497,823 2,561,713 7,056,653 4,322,724 Total 18,371,075 11,309,926 31,031,604 18,876,253 June 30, December 31, 2019 2018 (Unaudited) $ $ Total Assets Lithium Business 215,321,303 231,795,621 Ni-MH Batteries and Accessories 53,775,804 56,260,478 Total 269,097,107 288,056,099
Schedule of Revenue from External Customers by Geographic Areas	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 June 30, Six months ended June 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ Net sales China Mainland 30,143,843 32,880,005 58,114,878 61,185,768 Asia, others 35,716,065 25,183,900 58,786,779 40,938,296 Europe 8,988,966 4,849,360 13,609,297 9,387,263 North America 958,219 1,998,243 3,275,745 3,163,074 Others — 12,452 133,874 33,012 75,807,093 64,923,960 133,920,573 114,707,413 June 30, December 31, 2019 2018 (Unaudited) $ $ Accounts receivable China Mainland 33,494,645 38,048,651 Asia, others 28,138,970 33,237,051 Europe 6,596,124 5,413,343 North America 769,287 566,769 Others — 14,003 68,999,026 77,279,817

Related party balance and tra_2

Related party balance and transaction (Tables)	6 Months Ended
	Jun. 30, 2019
Related party transaction
Schedule Of Related Party Balance	Related party balance June 30, December 31, 2019 2018 (Unaudited) $ $ Accounts receivable 86,343 476,093 Other receivable 59,776 1,570 Amount due from a related party- GZ Highpower 146,119 477,663 Other payable-investment (1) 101,869 408,867 Loan from Mr. Dang Yu Pan (2) — 5,707,984 Amount due to related parties 101,869 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 $8.7 million) with Mr. Dang Yu Pan on July 20, 2018. As of June 30, 2019, the Company repaid the loans. The interest rate is 5.65% per annum. The Company accrued interest expense $20,135 and $133,930 for the three and six months ended June 30, 2019, respectively.
Schedule of Related Party Transactions	Related party transaction Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ GZ Highpower Sales 239,573 433,147 440,306 658,934 V-Power Payment of investment — — 310,201 — Dang Yu Pan Loan from Dang Yu Pan — — 2,954,297 — Repayment of Loan from Dang Yu Pan 8,589,619 — 8,589,619 — Interest expense 20,135 — 133,930 —

Summary of significant accoun_3

Summary of significant accounting policies - Additional Information (Details) - customer	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Customer Concentration Risk [Member]
Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	12.70%	10.00%	12.20%	10.00%
Number of Customer Accounted More Than Ten Percentege		0		0
Number of Customers Accounted For 12.7% and 12.2%	1		1
Supplier Concentration Risk [Member]
Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	12.10%	12.00%	12.20%	13.30%
Accounts Receivable [Member] | Customer Concentration Risk [Member]
Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			16.40%

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues	$ 75,807,093	$ 64,923,960	$ 133,920,573	$ 114,707,413
Lithium Business [Member]
Revenues	62,255,334	48,503,856	104,985,501	85,100,511
Ni-MH Batteries and Accessories [Member]
Revenues	13,551,759	16,420,104	28,935,072	29,606,902
China Mainland [Member]
Revenues	30,143,843	32,880,005	58,114,878	61,185,768
China Mainland [Member] | Lithium Business [Member]
Revenues	26,502,519		49,567,039
China Mainland [Member] | Ni-MH Batteries and Accessories [Member]
Revenues	3,641,324		8,547,839
Asia, others [Member]
Revenues	35,716,065	25,183,900	58,786,779	40,938,296
Asia, others [Member] | Lithium Business [Member]
Revenues	33,804,072		50,815,302
Asia, others [Member] | Ni-MH Batteries and Accessories [Member]
Revenues	1,911,993		7,971,477
Europe [Member]
Revenues	8,988,966	4,849,360	13,609,297	9,387,263
Europe [Member] | Lithium Business [Member]
Revenues	1,501,876		2,905,190
Europe [Member] | Ni-MH Batteries and Accessories [Member]
Revenues	7,487,090		10,704,107
North America [Member]
Revenues	958,219	1,998,243	3,275,745	3,163,074
North America [Member] | Lithium Business [Member]
Revenues	446,867		1,697,970
North America [Member] | Ni-MH Batteries and Accessories [Member]
Revenues	511,352		1,577,775
Others [Member]
Revenues	0	$ 12,452	133,874	$ 33,012
Others [Member] | Lithium Business [Member]
Revenues	0		0
Others [Member] | Ni-MH Batteries and Accessories [Member]
Revenues	$ 0		$ 133,874

Accounts receivable, net (Detai

Accounts receivable, net (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Accounts receivable, net
Accounts receivable	$ 69,152,027	$ 77,340,837
Less: allowance for doubtful accounts	153,001	61,020
Accounts receivable, net	$ 68,999,026	$ 77,279,817

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Inventories
Raw materials	$ 20,577,090	$ 25,952,099
Work in progress	10,619,229	10,192,772
Finished goods	20,560,649	18,348,119
Packing materials	33,291	14,394
Consumables	190,167	283,077
Inventories	$ 51,980,426	$ 54,790,461

Property, plant and equipment_3

Property, plant and equipment, net (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Cost
Construction in progress	$ 8,615,548	$ 6,991,889
Furniture, fixtures and office equipment	8,011,061	7,221,527
Leasehold improvement	7,707,640	7,090,162
Machinery and equipment	49,048,270	40,316,428
Motor vehicles	1,574,860	1,508,398
Buildings	19,101,682	19,166,951
Property, plant and equipment, cost	94,059,061	82,295,355
Less: accumulated depreciation	28,969,071	25,772,178
Property, plant and equipment, net	$ 65,089,990	$ 56,523,177

Property, plant and equipment_4

Property, plant and equipment, net (Details Textual) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Depreciation	$ 1,858,661	$ 1,499,538	$ 3,559,595,000	$ 2,945,238,000
Property Plant And Equipment Deductions For Government Grants			0		$ 75,584
Pledged Assets Not Separately Reported Property Plant And Equipment	8,733,443		8,733,443
Huizhou Facilities [Member]
Property, Plant and Equipment [Line Items]
Pledged Assets Not Separately Reported Property Plant And Equipment	8,392,542		8,392,542		8,536,246
Shenzhen Building [Member]
Property, Plant and Equipment [Line Items]
Pledged Assets Not Separately Reported Property Plant And Equipment	$ 340,901		$ 340,901		$ 353,752

Leases - Summary of Leases (Det

Leases - Summary of Leases (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Assets
Operating	$ 10,213,704	$ 0
Total leased assets	10,213,704
Liabilities
Operating - current	2,334,110	0
Operating - non current	8,040,487	$ 0
Total lease liabilities	10,374,597
Right-of-use assets [Member]
Assets
Operating	10,213,704
Lease liabilities, current [Member]
Liabilities
Operating - current	2,334,110
Lease liabilities, non current [Member]
Liabilities
Operating - non current	$ 8,040,487

Leases - Lease Expense (Details

Leases - Lease Expense (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Lease Costs
Total net lease costs	$ 764,149	$ 1,521,856
Cost of sales Selling and distribution expenses General and administrative expenses Research and development expenses [Member]
Lease Costs
Operating lease expense	$ 764,149	$ 1,521,856

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details)	Jun. 30, 2019USD ($)
Leases
Remaining 2019	$ 1,281,201
2020	3,189,784
2021	3,361,853
2022	2,596,847
2023	980,182
2024	167,850
Total lease payments	11,577,717
Less: interest	1,203,120
Present value of lease liabilities	$ 10,374,597

Leases - Future Minimum Rental

Leases - Future Minimum Rental Payments under Non-cancelable Operating Leases (Details)	Dec. 31, 2018USD ($)
Leases
2019	$ 2,288,437
2020	1,790,861
2021	1,621,298
2022	668,792
Future minimum rental payments	$ 6,369,388

Leases - Lease terms and Discou

Leases - Lease terms and Discounts Rates (Details)	6 Months Ended
	Jun. 30, 2019
Weighted Average Remaining Lease Term
Operating leases	3 years 6 months 7 days
Weighted Average Discount Rate
Operating leases	6.18%

Leases - Supplemental Informati

Leases - Supplemental Information Related to Leases (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 732,090	$ 1,358,235

Long-term investments (Details)

Long-term investments (Details) - USD ($)		Jun. 30, 2019	Dec. 31, 2018
Long-term Investments		$ 8,387,618	$ 9,993,852
Ganzhou Highpower Technology Company Limited [Member]
Equity Method Investments	[1]	$ 6,188,223	$ 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]	$ 491,011	$ 595,730
Equity Method Investment, Ownership Percentage	[2]	49.00%	49.00%
Huizhou Yipeng Energy Technology Co Ltd [Member]
Cost Method Investments		$ 1,708,384	$ 1,714,222
Cost Method Investments Ownership Percentage		4.654%	4.654%
[1]	Investment in GZ HighpowerOn 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]	(2) Investment in V-powerOn 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 June 30, 2019, the requirements have not been met and no such transfer was needed. As of June 30, 2019, the Company has 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 - Additio

Long-term investments - Additional information (Details) ¥ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2018CNY (¥)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019CNY (¥)	Jun. 30, 2019USD ($)	Jan. 14, 2019CNY (¥)	Jan. 14, 2019USD ($)	Apr. 28, 2018CNY (¥)	Apr. 28, 2018USD ($)	Feb. 28, 2018USD ($)
Income (Loss) from Equity Method Investments		$ (1,177,639)	$ 160,070	$ (1,595,843)	$ 316,320
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	¥ 4.9											$ 700,000
Equity Method Investment, Ownership Percentage	49.00%											49.00%
Equity Method Investment Ownership Percentage transfer	15.00%											15.00%
V-Power [Member]
Annual sales revenue before the first capital increase,maximum | ¥						¥ 30
Annual sales revenuebefore equity issuance,maximum. | ¥						30
Income (Loss) from Equity Method Investments		(27,607)	19,894	104,235	19,894
Related Party Transaction, Due from (to) Related Party						¥ 4.2	$ 600,000	¥ 2.1	$ 300,000	¥ 2.1	$ 300,000
GZ Highpower [Member]
Income (Loss) from Equity Method Investments		$ (1,150,032)	$ 179,964	$ 1,491,608	$ 336,214

Taxation - Components of Income

Taxation - Components of Income Taxes Expenses (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Taxation
Current	$ 712,944	$ 551,583	$ 1,100,769	$ 898,520
Deferred	28,572	(142,262)	(73,794)	(498,878)
Total income taxes expenses	$ 741,516	$ 409,321	$ 1,026,975	$ 399,642

Taxation - Reconciliation (Deta

Taxation - Reconciliation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Taxation
Income before tax	$ 5,429,739	$ 3,123,636	$ 6,022,919	$ 1,995,021
Provision for income taxes at PRC statutory income tax rate (25%)	1,357,435	780,909	1,505,730	498,755
Impact of different tax rates in other jurisdictions	88,722	37,886	207,343	96,546
Effect of PRC preferential tax rate	(494,344)	(272,880)	(684,651)	(266,427)
R&D expenses eligible for super deduction	(541,876)	(334,892)	(680,270)	(334,892)
Other non-deductible expenses	87,610	32,175	187,972	48,751
Change in valuation allowance of deferred tax assets	243,969	166,123	490,851	356,909
Total income taxes expenses	$ 741,516	$ 409,321	$ 1,026,975	$ 399,642

Taxation - Deferred Tax Assets,

Taxation - Deferred Tax Assets, Net (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Deferred tax assets
Tax loss carry-forward	$ 1,604,854	$ 1,096,956
Allowance for doubtful receivables	22,950	9,153
Impairment for inventory	409,863	382,375
Difference for sales cut-off	33,519	15,526
Deferred government grants	102,137	69,631
Property, plant and equipment subsidized by government grant	233,274	250,563
Impairment for property, plant and equipment	122,431	138,122
Total gross deferred tax assets	2,529,028	1,962,326
Valuation allowance	(1,403,764)	(1,096,956)
Total deferred tax assets, net of valuation allowance	1,125,264	865,370
Deferred tax liability
PPE, due to difference in depreciation	(189,821)	0
Total deferred tax liability	(189,821)	0
Total net deferred tax assets	$ 935,443	$ 865,370

Taxation - Additional informati

Taxation - Additional information (Details)	1 Months Ended	3 Months Ended	6 Months Ended		10 Months Ended	12 Months Ended
	Dec. 22, 2017	Mar. 31, 2019	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2017	Dec. 31, 2018
Schedule Of Taxation [Line Items]
Value Added Tax Percentage Of Revenue		16.00%	13.00%	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			$ 300,000	$ 400,000
Low Taxed Income Description			profits of greater than 10%
Global Intangible Low Taxed Income			$ 8,210,686
Amount of Tax Offset by Foreign Tax Credit			$ 898,875
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			$ 8,507,665
Effective Income Tax Rate Reconciliation 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			$ 1,340,597
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)

Notes payable (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Notes payable
Notes payable to bank	$ 60,168,272	$ 73,607,284

Short-term loans (Details)

Short-term loans (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Short-term Debt [Line Items]
Pledged Assets Not Separately Reported Property Plant And Equipment	$ 8,733,443		$ 8,733,443
Interest Expense, Short-term Borrowings	344,983	$ 118,886	653,565	$ 230,599
Pledged Asset Land Use Right	$ 2,406,173		$ 2,406,173
Minimum [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.22%		5.22%		5.23%
Maximum [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.5253%		6.5253%		6.5253%

Non-financial institution bor_2

Non-financial institution borrowing (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Non-financial institution borrowings
Interest Expense, Debt	$ 0	$ 134,660	$ 4,877	$ 296,963
Repayments of Other Short-term Debt			$ 8,862,891	$ 1,566,318

Lines of credit (Details)

Lines of credit (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Lines of credit
Total Line of Credit	$ 107.2	$ 102.6
Line of Credit Facility, Remaining Borrowing Capacity	$ 27.6	$ 23.8
Line of Credit Facility, Initiation Date	Aug. 31, 2019	Mar. 31, 2019
Line of Credit Facility, Expiration Date	Oct. 31, 2021	Oct. 31, 2021

Earnings per share (Details)

Earnings per share (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Numerator:
Net income attributable to the Company	$ 4,688,223	$ 307,721	$ 2,714,315	$ (1,118,936)	$ 4,995,944	$ 1,595,379
Weighted-average shares outstanding
- Basic	15,567,953		15,556,361		15,567,220	15,533,139
- Dilutive effects of equity incentive awards	58,312		73,052		48,370	86,632
- Diluted	15,626,265		15,629,413		15,615,590	15,619,771
Net income per share:
- Basic	$ 0.30		$ 0.17		$ 0.32	$ 0.10
- Diluted	$ 0.30		$ 0.17		$ 0.32	$ 0.10

Defined contribution plan (Deta

Defined contribution plan (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Defined contribution plan
Defined Contribution Plan, Cost	$ 996,410	$ 729,595	$ 1,979,784	$ 1,383,552

Segment information (Details)

Segment information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)segment	Jun. 30, 2018USD ($)
Segment Reporting Information [Line Items]
Net sales	$ 75,807,093	$ 64,923,960	$ 133,920,573	$ 114,707,413
Cost of Sales	57,436,018	53,614,034	102,888,969	95,831,160
Gross Profit	18,371,075	11,309,926	$ 31,031,604	18,876,253
Number of Reportable Segments | segment			2
Lithium Business [Member]
Segment Reporting Information [Line Items]
Net sales	62,255,334	48,503,856	$ 104,985,501	85,100,511
Cost of Sales	47,382,082	39,755,643	81,010,550	70,546,982
Gross Profit	14,873,252	8,748,213	23,974,951	14,553,529
Ni-MH Batteries and Accessories [Member]
Segment Reporting Information [Line Items]
Net sales	13,551,759	16,420,104	28,935,072	29,606,902
Cost of Sales	10,053,936	13,858,391	21,878,419	25,284,178
Gross Profit	$ 3,497,823	$ 2,561,713	$ 7,056,653	$ 4,322,724

Segment information - Total Ass

Segment information - Total Assets (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Total Assets	$ 269,097,107	$ 288,056,099
Lithium Business [Member]
Segment Reporting Information [Line Items]
Total Assets	215,321,303	231,795,621
Ni-MH Batteries and Accessories [Member]
Segment Reporting Information [Line Items]
Total Assets	$ 53,775,804	$ 56,260,478

Segment information - Geographi

Segment information - Geographic information net sales (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 75,807,093	$ 64,923,960	$ 133,920,573	$ 114,707,413
China Mainland [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	30,143,843	32,880,005	58,114,878	61,185,768
Asia, others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	35,716,065	25,183,900	58,786,779	40,938,296
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	8,988,966	4,849,360	13,609,297	9,387,263
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	958,219	1,998,243	3,275,745	3,163,074
Others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 0	$ 12,452	$ 133,874	$ 33,012

Segment information - Geograp_2

Segment information - Geographic information accounts receivable (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	$ 68,999,026	$ 77,279,817
China Mainland [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	33,494,645	38,048,651
Asia, others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	28,138,970	33,237,051
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	6,596,124	5,413,343
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	769,287	566,769
Others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Accounts receivable	$ 0	$ 14,003

Related party balance and tra_3

Related party balance and transaction (Details) - USD ($)		Jun. 30, 2019	Dec. 31, 2018
Related party transaction
Accounts receivable		$ 86,343	$ 476,093
Other receivable		59,776	1,570
Amount due from a related party- GZ Highpower		146,119	477,663
Other payable-investment	[1]	101,869	408,867
Loan from Mr. Dang Yu Pan		0	5,707,984
Amount due to related parties		$ 101,869	$ 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)

Related party balance and tra_4

Related party balance and transaction - Related party transaction (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
V-Power
Payment of investment			$ 310,201	$ 328,927
Dang Yu Pan
Loan from Dang Yu Pan			2,954,297	0
Repayment of Loan from Dang Yu Pan			8,589,619	0
GZ Highpower [Member]
GZ Highpower
Sales	$ 239,573	$ 433,147	440,306	658,934
V-Power [Member]
V-Power
Payment of investment	0	0	310,201	0
Dang Yu Pan Member
Dang Yu Pan
Loan from Dang Yu Pan	0	0	2,954,297	0
Repayment of Loan from Dang Yu Pan	8,589,619	0	8,589,619	0
Interest expense	$ 20,135	$ 0	$ 133,930	$ 0

Related party balance and tra_5

Related party balance and transaction - Additional Information (Details) ¥ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2019CNY (¥)	Jun. 30, 2019USD ($)	Jan. 14, 2019CNY (¥)	Jan. 14, 2019USD ($)	Jul. 20, 2018CNY (¥)	Jul. 20, 2018USD ($)	Apr. 28, 2018CNY (¥)	Apr. 28, 2018USD ($)	Feb. 28, 2018CNY (¥)	Feb. 28, 2018USD ($)
Mr. Dang Yu Pan [Member]
Interest Expense, Related Party	$ 20,135	$ 133,930
Loan Agreement Amount							¥ 60	$ 8,700,000
Debt Instrument, Interest Rate, Stated Percentage			5.65%	5.65%
Shenzhen V-Power Innovative Technology Co Ltd [Member]
Equity Method Investments											¥ 4.9	$ 700,000
Equity Method Investment, Ownership Percentage											49.00%	49.00%
V-Power [Member]
Related Party Transaction, Due from (to) Related Party			¥ 4.2	$ 600,000	¥ 2.1	$ 300,000			¥ 2.1	$ 300,000