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CBAK Energy Technology, Inc. (Parent Company)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

CBAK Energy Technology, Inc. (Parent Company)

24.

CBAK Energy Technology, Inc. (Parent Company)

Under PRC regulations, subsidiaries in PRC ("the PRC subsidiaries") may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC GAAP. In addition, the PRC subsidiaries are required to set aside at least 10% of their after tax net profits each year, if any, to fund the statutory general reserve until the balance of the reserves reaches 50% of their registered capital. The statutory general reserves are not distributable in the form of cash dividends to the Company and can be used to make up cumulative prior year losses, if any, and may be converted into share capital by the issue of new shares to shareholders in proportion to their existing shareholdings, or by increasing the par value of the shares currently held by them, provided that the reserve balance after such issue is not less than 25% of the registered capital. As of December 31, 2017 and 2018, additional transfers of $24,019,489 were required for CBAK Power and CBAK Trading before the statutory general reserve reached 50% of the registered capital of the PRC subsidiaries. As of December 31, 2017 and 2018 there was $1,230,511 appropriation from retained earnings and set aside for statutory general reserves by the PRC subsidiaries. CBAK Trading did not have after tax net profits since its incorporation and therefore no appropriation was made to fund its statutory general reserve as of December 31, 2017 and 2018. CBAK Power had after tax loss of $20,035,942 and $392,959 for the years ended December 31, 2017 and 2018, respectively.

Schedule I of Article 504 of Regulation SX requires the condensed financial information of the registrant (Parent Company) to be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of this test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant's proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party (i.e., lender, regulatory agency, foreign government, etc.).

SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CBAK ENERGY TECHNOLOGY, INC.

PARENT COMPANY STATEMENTS OF OPERATIONS

For the years ended December 31, 2017 and 2018

(Unaudited)

		Year ended December 31, 2017				Year ended December 31, 2018
REVENUE, net		$	-			$	-

OPERATING EXPENSES:
Salaries and consulting expenses			966,592				451,036
General and administrative			302,861				398,101

Total operating expenses			(1,269,453	)			(849,137	)

LOSS FROM OPERATIONS			(1,269,453	)			(849,137	)

OTHER INCOME:			-				-

LOSS ATTRIBUTABLE TO PARENT COMPANY			(1,269,453	)			(849,137	)

EQUITY IN LOSS OF SUBSIDIARIES			(20,197,888	)			(1,094,040	)

NETLOSS ATTRIBUTABLE TO SHAREHOLDERS		$	(21,467,341	)		$	(1,943,177	)

CBAK ENERGY TECHNOLOGY, INC.

PARENT COMPANY BALANCE SHEETS

As of December 31, 2017 and 2018

(Unaudited)

		December 31, 2017				December 31, 2018
ASSETS

Interests in subsidiaries		$	3,744,185			$	1,957,493
Total assets		$	3,744,185			$	1,957,493

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Accrued expenses and other payables		$	1,548,209			$	1,642,171
Total current liabilities			1,548,209				1,642,171

SHAREHOLDERS' EQUITY			2,195,976				315,322
Total liabilities and shareholders' equity		$	3,744,185			$	1,957,493

CBAK ENERGY TECHNOLOGY, INC.

PARENT COMPANY STATEMENTS OF CASH FLOWS

For the years ended December 31, 2017 and 2018

(Unaudited)

		Year ended December 31, 2017				Year ended December 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(21,467,341	)		$	(1,943,177	)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity in loss of subsidiaries			20,197,888				1,094,040
Share based compensation			759,292				221,180
Change in operating assets and liabilities
Accrued expenses and other payable			(27,685	)			93,962
Net cash used in operating activities			(537,846	)			(533,995	)

CASH FLOWS FROM INVESTING ACTIVITIES:
(Increase) decrease in interest in subsidiaries			(9,067,432	)			533,995
Net cash provided by (used in) investing activities			(9,067,432	)			533,995

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock			9,605,278				-
Net cash provided by financing activities			9,605,278				-

CHANGE IN CASH			-				-

CASH, beginning of year			-				-

CASH, end of year		$	-			$	-

The condensed parent company financial statements have been prepared using the equity method to account for its subsidiaries. Refer to the consolidated financial statements and notes presented above for additional information and disclosures with respect to these financial statements.