XML 48 R31.htm IDEA: XBRL DOCUMENT

Concentrations and Credit Risk

12 Months Ended

Dec. 31, 2020

Concentrations and Credit Risk [Abstract]

Concentrations and Credit Risk

24.

Concentrations and Credit Risk

(a)

Concentrations

The Company had the following customers that individually comprised 10% or more of net revenue for the years ended December 31, 2019 and 2020 as follows:

	Year ended				Year ended
Sales of finished goods and raw materials	December 31, 2019				December 31, 2020
Customer A	$	7,222,245	32.54	%	$	8,322,504	22.15	%
Customer B		*	*			3,806,110	10.13	%
Customer C		3,308,638	14.91	%		*	*
Zhengzhou BAK Battery Co., Ltd (note a)		3,961,050	17.85	%		12,770,075	33.99	%

Comprised less than 10% of net revenue for the respective period.

The Company had the following customers that individually comprised 10% or more of net accounts receivable (included VAT) as of December 31, 2019 and 2020 as follows:

	December 31, 2019				December 31, 2020
Customer A	$	1,725,293	21.93	%	$	3,148,737	11.23	%
Customer C		1,713,628	21.78	%		*	*
Customer D		902,309	11.47	%		*	*
Customer E		830,821	10.56	%		*	*
Zhengzhou BAK Battery Co., Ltd (note a)		*	*			15,258,164	54.42	%

*	Comprised less than 10% of net accounts receivable for the respective period.

The Company had the following suppliers that individually comprised 10% or more of net purchase for the years ended December 31, 2019 and 2020 as follows:

	Year ended December 31, 2019				Year ended December 31, 2020
Supplier A	$	*	*		$	12,396,483	48.90	%
Supplier B		2,920,966	21.40	%		*	*
Zhengzhou BAK New Energy Vehicle Co., Ltd (note b)		3,812,819	27.93	%		*	*
Shenzhen BAK (note c)		*	*			3,884,309	15.32	%

Comprised less than 10% of net purchase for the respective period.

The Company had the following suppliers that individually comprised 10% or more of accounts payable as of December 31, 2019 and 2020 as follows:

	December 31, 2019				December 31, 2020
Supplier A	$	*	*		$	9,272,478	47.40	%
Supplier C		*	*			2,017,814	10.32	%
Supplier D		1,126,482	10.10	%		*	*

Apart from the above, for the years ended December 31, 2019 and 2020, the Company recorded the following transactions:

	December 31, 2019		December 31, 2020
Purchase of inventories from
BAK Shenzhen (note c)	$	63,950		-

Sales of finished goods and raw materials to
BAK Shenzhen (note c)		526,719		-
Zhengzhou BAK New Energy Technology Co., Ltd (note b)		-		1,562,637

Notes:
a	Mr. Xiangqian Li, the Company's former CEO, is a director of Zhengzhou BAK Battery Co., Ltd. Up to the date of this report, Zhengzhou BAK Battery Co., Ltd. repaid $7,691,611 to the Company.
b	Mr. Xiangqian Li is a director of Zhengzhou BAK New Energy Vehicle Co., Ltd, which has 29% equity interests in Zhengzhou BAK New Energy Technology Co., Ltd. As of December 31, 2019 and 2020, receivable from Zhengzhou BAK New Energy Technology Co., Ltd were nil and $1,759,050, respectively, was included in trade accounts and bills receivable, net, Up to the date of this report, Zhengzhou BAK New Energy Technology Co., Ltd repaid $741,353 to the Company.
c	Mr. Xiangqian Li is a director of Shenzhen BAK and BAK Shenzhen.

(b)

Credit Risk

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and pledged deposits. As of December 31, 2019 and 2020, substantially all of the Company's cash and cash equivalents were held by major financial institutions located in the PRC, which management believes are of high credit quality.

For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses.