[1]

The Company received advances from Tianjin New Energy, a related company under the control of Mr. Xiangqian Li, the Company's former CEO, which was unsecured, non-interest bearing and repayable on demand. On November 1, 2016, Mr. Xiangqian Li ceased to be a shareholder but remained as a general manager of Tianjin New Energy. On January 7, 2019, each of Mr. Dawei Li and Mr. Yunfei Li (the Company's CEO) entered into an agreement with CBAK Power and Tianjin New Energy whereby Tianjin New Energy assigned its rights to loans to CBAK Power of approximately $3.5 million (RMB23,980,950) and $1.7million (RMB11,647,890) (collectively $5.2 million, the "Debts") to Mr. Dawei Li and Mr. Yunfei Li, respectively. On January 7, 2019, the Company entered into a Cancellation Agreement (the "Cancellation Agreement") with Mr. Dawei Li and Mr. Yunfei Li (the creditors). Pursuant to the terms of the Cancellation Agreement, Mr. Dawei Li and Mr. Yunfei Li agreed to cancel the Debts in exchange for 3,431,373 and 1,666,667 shares of common stock of the Company, respectively, (collectively, the "Shares") at an exchange price of $1.02 per share. Upon receipt of the Shares, the creditors will release the Company from any claims, demands and other obligations relating to the Debts. The Cancellation Agreement contains customary representations and warranties of the creditors. The creditors do not have registration rights with respect to the Shares.

[2]

Advances from Mr. Xiangqian Li, the Company's former CEO, was unsecured, non-interest bearing and repayable on demand.

[3]

Advances from Mr. Yunfei Li, the Company's CEO, was unsecured, non-interest bearing and repayable on demand.

[4]

The refundable deposits paid by certain shareholders in relation to share purchase (note 1) were unsecured, non-interest bearing and repayable on demand.

[5]

Advances from unrelated third parties were unsecured, non-interest bearing and repayable on demand.