XML 50 R33.htm IDEA: XBRL DOCUMENT

CBAK Energy Technology, Inc. (Parent Company)

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

CBAK Energy Technology, Inc. (Parent Company)

26.

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, 2019 and 2020, additional transfers of $56,269,489 and $164,388,965 were required before the statutory general reserve reached 50% of the registered capital of the PRC subsidiaries. As of December 31, 2019 and 2020, there was $1,230,511 appropriation from retained earnings and set aside for statutory general reserves by the PRC subsidiaries. The PRC subsidiaries 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, 2019 and 2020.

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.).

		Year ended December 31, 2019				Year ended December 31, 2020
REVENUE, net		$	-			$	-

OPERATING EXPENSES:
Salaries and consulting expenses			978,942				992,246
General and administrative			439,974				531,449

Total operating expenses			(1,418,916	)			(1,523,695	)

LOSS FROM OPERATIONS			(1,418,916	)			(1,523,695	)

Finance expenses			(120,051	)			(429,741	)
Changes in fair value of warrants liability			-				2,072,000

(LOSS) PROFIT ATTRIBUTABLE TO PARENT COMPANY			(1,538,967	)			118,564

EQUITY IN LOSS OF SUBSIDIARIES			(9,228,556	)			(7,925,462	)

NET LOSS ATTRIBUTABLE TO SHAREHOLDERS		$	(10,767,523	)		$	(7,806,898	)

		December 31, 2019				December 31, 2020
ASSETS

Interests in subsidiaries		$	18,183,266			$	66,797,421
Cash and cash equivalents			-				5,107,486
Total assets		$	18,183,266			$	71,904,907

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Notes payable		$	2,846,736			$	-
Accrued expenses and other payables			1,731,251				1,722,814
Warrants liability			-				17,783,000
Total current liabilities			4,577,987				19,505,814

SHAREHOLDERS' EQUITY			13,605,279				52,399,093
Total liabilities and shareholders' equity		$	18,183,266			$	71,904,907

		Year ended December 31, 2019				Year ended December 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(10,767,523	)		$	(7,806,898	)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity in loss of subsidiaries			9,228,556				7,925,462
Share based compensation			770,113				803,931
Changes in fair value of warrants liability			-				(2,072,000	)
Change in operating assets and liabilities
Accrued expenses and other payable			89,080				(8,437	)
Net cash used in operating activities			(679,774	)			(1,157,942	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease in interest in subsidiaries			(2,070,226	)			(39,083,154	)
Net cash provided by (used in) investing activities			(2,070,226	)			(39,083,154	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares			-				45,348,582
Proceeds from issuance of promissory notes			2,750,000				-
Net cash provided by financing activities			2,750,000				45,348,582

CHANGE IN CASH AND CASH EQUIVALENTS			-				5,107,486

CASH AND CASH EQUIVALENTS, beginning of year			-				-

CASH AND CASH EQUIVALENTS, end of year		$	-			$	5,107,486

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.