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Pledged deposits

9 Months Ended

Sep. 30, 2018

2.	Pledged deposits

Pledged deposits as of December 31, 2017 and September 30, 2018 consisted of the following:

		December 31,		September 30,
		2017		2018
Pledged deposits with bank for:
Bills payable	$	123,116	$	10,388,445
Letters of credit		7,685,213		7,280,352
Others*		1,295,849		1,227,583
	$	9,104,178	$	18,896,380

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 $1,227,583 (RMB8,430,792), including construction costs of $0.9 million (RMB6.1 million), interest of $29,812 (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 $1,227,583 (RMB8,430,792) for a period of one year. On September 1, 2017, upon the request of Shenzhen Huijie, the Court froze the bank deposits for another one year until August 31, 2018. The Court froze the bank deposits for another one year until August 27, 2019 upon the request of Shenzhen Huijie on August 27, 2018.