Pledged deposits

12 Months Ended

Dec. 31, 2017

Pledged deposits [Text Block]

4. Pledged deposits

Pledged deposits as of September 30, 2016, December 31, 2016 and 2017 consisted of the following:

		September 30,		December 31,		December 31,
		2016		2016		2017
Pledged deposits with banks for:
Bills payable	$	3,305,305	$	3,064,155	$	123,116
Letters of credit		-		-		7,685,213
Others*		1,263,722		1,213,989		1,295,849
	$	4,569,027	$	4,278,144	$	9,104,178

* On July 7, 2016, Shenzhen Huijie Purification System Engineering Co., Ltd (“Shenzhen Huijie”), one of the Company’s contractors, filed a lawsuit against CBAK Power in the Peoples’ Court of Zhuanghe City, Dalian for the failure to pay pursuant to the terms of the contract and entrusted part of the project of the contract to a third party without their prior consent. The plaintiff sought a total amount of $1,295,849 (RMB8,430,792), including construction costs of $1.0 million (RMB6.3 million), interest of $31,469 (RMB0.2 million) and compensation of $0.3 million (RMB1.9 million), which we already accrued for as of September 30, 2016. On September 7, 2016, upon the request of Shenzhen Huijie, the Court froze CBAK Power’s bank deposits totaling $1,295,849 (RMB8,430,792) for a period of one year. Further on September 1, 2017, upon the request of Shenzhen Huijie, the Court froze the bank deposits for another one year until August 31, 2018.