XML 30 R18.htm IDEA: XBRL DOCUMENT
v3.19.2

Loans | 6 Months Ended
--- | ---
Jun. 30, 2019
Loans [Abstract] |
Loans |
12. | Loans
Bank loans: Bank borrowings as of December 31, 2018 and June 30, 2019 consisted of the followings
|  | December 31, |  |  | June 30, |
|  | 2018 |  |  | 2019 |
Current maturities of long-term bank loans |  | $ | 3,659,324 |  |  | $ | 10,998,206 |
Long-term bank borrowings |  |  | 20,614,194 |  |  |  | 9,776,183 |
|  | $ | 24,273,518 |  |  | $ | 20,774,389 |
On June 14, 2016, the Company renewed its banking facilities from Bank of Dandong for loans with a maximum amount of RMB130 million (approximately $18.9 million), including three-year long-term loans and three-year revolving bank acceptance and letters of credit bills for the period from June 13, 2016 to June 12, 2019. The banking facilities were guaranteed by Mr. Yunfei Li ("Mr. Li"), the Company's CEO, and Ms. Qinghui Yuan, Mr. Li's wife, Mr. Xianqian Li, the Company's former CEO, Ms. Xiaoqiu Yu, the wife of the Company's former CEO, Shenzhen BAK Battery Co., Ltd., the Company's former subsidiary ("Shenzhen BAK"). Under the banking facilities, the Company borrowed various three-year term bank loans that totaled RMB126.8 million (approximately $18.5 million), bearing fixed interest at 7.2% per annum. The Company also borrowed various bank acceptance of RMB3.2 million (approximately $0.5 million) under the facilities. The Company repaid the loan and bank acceptance bills on June 12, 2018. In the second quarter of 2018, the Company obtained another banking facilities from Bank of Dandong with bank acceptance bills of RMB5.0 million (approximately $0.7 million) for a term until October 17, 2018. The Company repaid the bank acceptance bills on October 17, 2018. On August 2, 2017, the Company obtained one-year term facilities from China Merchants Bank with a maximum amount of RMB100 million (approximately $14.6 million) including revolving loans, trade finance, notes discount, and acceptance of commercial bills etc. Any amount drawn under the facilities requires security in the form of cash or banking acceptance bills receivable of at least the same amount. Under the facilities, the Company borrowed a series of bank acceptance bills from China Merchants Bank totaled RMB21.3 million (approximately $3.1 million) for a term until October 25, 2018. The facilities expired on August 1, 2018 and the Company repaid the bills on October 25, 2018. On November 9, 2017, the Company obtained banking facilities from China Everbright Bank Dalian Branch with a maximum amount of RMB100 million (approximately $14.6 million) with the term expiring on November 7, 2018. The banking facilities were secured by the 100% equity in CBAK Power held by BAK Asia. Under the facilities, bank deposits of approximately 50% were required to secure against this letter of credit. The Company borrowed a net letter of credit of RMB96.1 million (approximately $14.0 million) to November 7, 2018. The Company repaid the letter of credit on November 7, 2018. On June 4, 2018, the Company obtained banking facilities from China Everbright Bank Dalian Branch with a maximum amount of RMB200 million (approximately $29.1 million) with the term from June 12, 2018 to June 10, 2021, bearing interest at 130% of benchmark rate of the People's Bank of China ("PBOC") for three-year long-term loans, at current rate 6.175% per annum. The loans are repayable in six installments of RMB0.8 million ($0.12 million) on December 10, 2018, RMB24.3 million ($3.54 million) on June 10, 2019, RMB0.8 million ($0.12 million) on December 10, 2019, RMB74.7 million ($10.88 million) on June 10, 2020, RMB0.8 million ($0.12 million) on December 10, 2020 and RMB66.3 million ($9.66 million) on June 10, 2021. The Company repaid the bank loan of RMB0.8 million ($0.12 million) in December 2018 and RMB24.3 million ($3.5 million) in June 2019. Under the facilities, the Company borrowed RMB142.6 million (approximately $20.8 million) as of June 30, 2019. The facilities were secured by the Company's land use rights, buildings, machinery and equipment. Further, in August 2018, the Company borrowed a total of RMB60 million (approximately $8.7 million) in the form of bills payable from China Everbright Bank Dalian Branch for a term until August 14, 2019, which was secured by the Company's cash totaled $8.7 million. The Company discounted these two bills payable of even date to China Everbright Bank at a rate of 4.0%. The Company repaid these bills payable in August 2019. On August 22, 2018, the Company obtained one-year term facilities from China Everbright Bank Dalian Branch with a maximum amount of RMB100 million (approximately $14.6 million) including revolving loans, trade finance, notes discount, and acceptance of commercial bills etc. Any amount drawn under the facilities requires security in the form of cash or banking acceptance bills receivables of at least the same amount. The Company borrowed a series of bank acceptance bills totaled RMB28.8 million (approximately $4.2 million) for a term until March 7, 2019. The Company repaid the bank acceptance bills on March 7, 2019. In November 2018, the Company borrowed a total of RMB100 million (approximately $14.6 million) in the form of bills payable from China Everbright Bank Dalian Branch for a term until November 12, 2019, which was secured by the Company's cash totaled RMB 50 million (approximately $7.3 million) and the 100% equity in CBAK Power held by BAK Asia. The Company discounted the bills payable of even date to China Everbright Bank at a rate of 4.0%. The Company also borrowed a series of acceptance bills from Industrial Bank Co., Ltd. Dalian Branch totaled RMB1.5 million (approximately $0.2 million) for various terms through May 21, 2019, which was secured by bills receivable of RMB1.5 million (approximately $0.2 million). The Company repaid the bank acceptance bills on May 21, 2019. The facilities were also secured by the Company's assets with the following carrying amounts:
|  | December 31, |  |  | June 30, |
|  | 2018 |  |  | 2019 |
Pledged deposits (note 2) |  | $ | 16,014,118 |  |  | $ | 16,021,758 |
Prepaid land use rights (note 9) |  |  | 7,446,117 |  |  |  | 7,378,014 |
Buildings |  |  | 17,501,902 |  |  |  | 17,254,252 |
Machinery and equipment |  |  | 10,206,100 |  |  |  | 8,920,703 |
Bills receivable (note 3) |  |  | 6,353,342 |  |  |  | - |
|  | $ | 57,521,579 |  |  | $ | 49,574,727 |
As of June 30, 2019, the Company had unutilized committed banking facilities of $19.3 million. During the three months ended June 30, 2018 and 2019, interest of $566,242 and $369,250, respectively, was incurred on the Company's bank borrowings. During the six months ended June 30, 2018 and 2019, interest of $1,096,698 and $750,525, respectively, was incurred on the Company's bank borrowings. Other Short-term Loans Other short-term loans as of December 31, 2018 and June 30, 2019 consisted of the following:
|  |  |  | December 31, |  | June 30, |
|  | Note |  | 2018 |  | 2019 |
Advance from related parties |  |  |  |  |  |  |  |
– Tianjin BAK New Energy Research Institute Co., Ltd ("Tianjin New Energy") |  | (a) |  | $ | 11,095,070 |  | $ | - |
– Mr. Xiangqian Li, the Company's Former CEO |  | (b) |  |  | 100,000 |  |  | 100,000 |
– Mr. Yunfei Li |  | (c) |  |  | 116,307 |  |  | 285,721 |
– Mr. Yunfei Li – related to "Third Debt" (see below) |  | (d) |  |  | - |  |  | 2,621,742 |
– Mr. Dawei Li – related to "Third Debt" (see below) |  | (d) |  |  | - |  |  | 1,456,523 |
– Shareholders |  | (e) |  |  | 2,035,381 |  |  | 1,278,862 |
|  |  |  |  | 13,346,758 |  |  | 5,742,848 |
Advances from unrelated third party |  |  |  |  |  |  |  |  |
– Mr. Wenwu Yu |  | (f) |  |  | 146,813 |  |  | 147,084 |
– Ms. Longqian Peng |  | (f) |  |  | 654,230 |  |  | 655,435 |
– Mr. Shulin Yu |  | (g) |  |  | - |  |  | 435,500 |
– Jilin Province Trust Co. Ltd |  | (h) |  |  | - |  |  | 5,767,832 |
– Suzhou Zhengyuanwei Needle Ce Co., Ltd |  | (f) |  |  | - |  |  | 101,957 |
|  |  |  |  | 801,043 |  |  | 7,107,808 |
|  |  |  | $ | 14,147,801 |  | $ | 12,850,656 |
| (a) | 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 $1.7 million (RMB11,647,890) (collectively $5.2 million, the "First Debt") to Mr. Dawei Li and Mr. Yunfei Li, respectively. On January 7, 2019, the Company entered into a cancellation agreement (note 1) 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 First Debt in exchange for 3,431,373 and 1,666,667 shares of common stock of the Company, respectively, 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 First Debt. The cancellation agreement contains customary representations and warranties of the creditors. The creditors do not have registration rights with respect to the shares.
|  | On April 26, 2019, each of Mr. Jun Lang, Ms. Jing Shi and Asia EVK Energy Auto Limited ("Asia EVK") 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 $0.3 million (RMB2,225,082), $0.1 million (RMB 912,204) and $5.2 million (RMB35,406,036) (collectively $5.7 million, the "Second Debt") to Mr. Jun Lang, Ms. Jing Shi and Asia EVK, respectively. On April 26, 2019, the Company entered into a cancellation agreement (note 1) with Mr. Jun Lang, Ms. Jing Shi and Asia EVK (the creditors). Pursuant to the terms of the cancellation agreement, the creditors agreed to cancel the Second Debt in exchange for 300,534, 123,208 and 4,782,163 shares of common stock of the Company, respectively, at an exchange price of $1.1 per share. Upon receipt of the shares, the creditors will release the Company from any claims, demands and other obligations relating to the Second Debt. The cancellation agreement contains customary representations and warranties of the creditors. The creditors do not have registration rights with respect to the shares.
| (b) | Advances from Mr. Xiangqian Li, the Company's former CEO, was unsecured, non-interest bearing and repayable on demand.
| (c) | Advances from Mr. Yunfei Li, the Company's CEO, was unsecured, non-interest bearing and repayable on demand.
| (d) | On June 28, 2019, each of Mr. Dawei Li and Mr. Yunfei Li (the Company's CEO) entered into an agreement with CBAK Power to loans approximately $1.5 million (RMB10,000,000) and $2.6 million (RMB18,000,000) respectively to CBAK Power for a terms of six months (collectively $4.1 million, the "Third Debt"). The loan was unsecured, non-interest bearing and repayable on demand. On July 16, 2019, each of Asia EVK and Mr. Yunfei Li (the Company's CEO) entered into an agreement with CBAK Power and Dalian Zhenghong Architectural Decoration and Installation Engineering Co. Ltd. (the Company's construction contractor) whereby Dalian Zhenghong Architectural Decoration and Installation Engineering Co. Ltd. assigned its rights to construction cost to CBAK Power of approximately $2.9 million (RMB20,000,000) and $0.4 million (RMB2,813,810) (collectively $3.3 million, the "Fourth Debt") to Asia EVK and Mr. Yunfei Li, respectively. On July 26, 2019, the Company entered into a cancellation agreement (note 1) with Mr. Dawei Li, Mr. Yunfei Li and Asia EVK (the creditors). Pursuant to the terms of the cancellation agreement, Mr. Dawei Li, Mr. Yunfei Li and Asia EVK agreed to cancel the Third Debt and Fourth Debt in exchange for 1,384,717, 2,938,067 and 2,769,435 shares of common stock of the Company, respectively, at an exchange price of $1.05 per share. Upon receipt of the shares, the creditors will release the Company from any claims, demands and other obligations relating to the Third Debt and Forth Debt. The cancellation agreement contains customary representations and warranties of the creditors. The creditors do not have registration rights with respect to the shares.
| (e) | The earnest money paid by certain shareholders in relation to share purchase (note 1) were unsecured, non-interest bearing and repayable on demand.
| (f) | Advances from unrelated third parties were unsecured, non-interest bearing and repayable on demand.
| (g) | On June 25, 2019, the Company entered into a loan agreement with Mr. Shulin Yu, an unrelated party, to loan RMB3.million (approximately$0.4 million) for a term of one year, bearing annual interest of 10% which was guaranteed by Mr. Yunfei Li (the Company's CEO) and Mr. Wenwu Wang (the Company's CFO). As of June 30, 2019, the Company borrowed RMB3.0 million (approximately $0.4 million).
| (h) | In January 2019, the Company obtained one-year term facilities from Jilin Province Trust Co. Ltd. with a maximum amount of RMB40.0 million (approximately $5.8 million), which was secured by land use rights and buildings of Eodos Liga Energy Co., Ltd. Under the facilities, the Company borrowed RMB16.4 million ($2.4 million), RMB15.4 million ($2.2 million), RMB6.6 million ($1.0 million) and RMB1.2 million ($0.2 million) on February 1, 2019, February 22, 2019, March 8, 2019 and March 21, 2019 respectively, bearing annual interest from 11.3% to 11.6%.

X
- References No definition available. + Details
Name: | cbat_LoansAbstract
Namespace Prefix: | cbat_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for short-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_ShortTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration