XML 39 R23.htm IDEA: XBRL DOCUMENT

Balances and Transactions With Related Parties

12 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

Balances and Transactions With Related Parties

17. Balances and Transactions with Related Parties

The principal related parties with which the Company had transactions during the years presented are as follows:

Name of Entity or Individual		Relationship with the Company
New Era Group Zhejiang New Energy Materials Co., Ltd.		Shareholder of company’s subsidiary
Shenzhen Baijun Technology Co., Ltd		Shareholder of company’s subsidiary
Zhengzhou BAK Battery Co., Ltd		Note a
Zhengzhou BAK New Energy Technology Co., Ltd		Note b
Shenzhen BAK Battery Co., Ltd		Former subsidiary and refer to Note c
Shenzhen BAK Power Battery Co., Ltd		Former subsidiary and refer to Note c
BAK International (Tianjin) Limited		Former subsidiary and refer to Note c
Zhejiang New Era Zhongneng Recycling Technology Co., Ltd.		Note d
Hangzhou Juzhong Daxin Asset Management Co., Ltd		Note e
Mr. Junnan Ye (Note 13)		Former shareholder of Zhejiang Hitrans Lithium Battery Technology Co., Ltd

(a)

Mr. Xiangqian Li, the Company’s former CEO, is a director of Zhengzhou BAK Battery Co., Ltd.

(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.

(c)

Mr. Xiangqian Li is a director of Shenzhen BAK Battery Co., Ltd, Shenzhen BAK Power Battery Co., Ltd and Shenzhen BAK Battery Co., Ltd.

(d)

New Era Group Zhejiang New Energy Materials Co., Ltd. (note 12) is a shareholder of Zhejiang New Era Zhongneng Recycling Technology Co., Ltd., holding 27.08% equity interests.

(e)

Hangzhou Juzhong Daxin Asset Management Co., Ltd. is the trustee of 85% of registered equity interests of Hitrans (note 12)

Related party transactions

The Company entered into the following significant related party transactions:

		For the year ended December 31, 2020				For the year ended December 31, 2021

Purchase of finished goods from Zhengzhou BAK New Energy Technology Co., Ltd		$	-			$	5,522,832
Purchase of finished goods from Shenzhen BAK Power Battery Co., Ltd			3,884,309				-
Sales of finished goods and raw materials to Zhengzhou BAK Battery Co., Ltd			12,770,075				8,339,088
Sales (return) of finished goods and raw materials to Zhengzhou BAK New Energy Technology Co., Ltd			1,562,637				(91,974	)
Sales of finished goods and raw materials to Shenzhen BAK Power Battery Co., Ltd			-				10,032
Interest expense charge by Mr. Junnan Ye			-				135,606

Related party balances

Apart from the above, the Company recorded the following significant related party balances as of December 31, 2020 and December 31, 2021:

Receivables from former subsidiary

		December 31, 2020				December 31, 2021

Receivables from Shenzhen BAK Power Battery Co., Ltd		$	-			$	2,263,955

Balance as of December 31, 2021 consisted of receivable for sales of cathode and precursor to Shenzhen BAK Power Battery Co., Ltd. Up to the date of this report, Shenzhen BAK Power Battery Co., Ltd repaid $1.4 million to the Company.

Amount due from non-controlling interest

		December 31, 2020				December 31, 2021
Shenzhen Baijun Technology Co., Ltd
Current		$	-			$	125,883
Non-current			-				62,941
			-				188,824

In August 2018, Guangdong Hitrans and Shenzhen Baijun entered into a services contract for the provision of consultancy service to assist Guangdong Hitrans to obtain the license for recycling solid wastes with a contract sum of RMB3,000,000 ($465,362). During August and September 2018, RMB1,500,000 ($232,681) was paid to Shenzhen Baijun as deposit. In 2020, Guangdong Hitrans and Shenzhen Baijun entered into supplemental agreement to cancel the services contract and Shenzhen Baijun agreed to refund the deposit paid by four installments from 2021 throughout 2023. The amount due from Shenzhen Baijun is interest fee and RMB300,000 ($45,952) repayable by December 2020, RMB400,000 ($62,048) repayable by December 30, 2021, RMB400,000 ($62,048) repayable by December 30, 2022 and RMB400,000 ($62,049) repayable by December 30, 2023.

Amount due from related party

		December 31, 2020				December 31, 2021

Hangzhou Juzhong Daxin Asset Management Co., Ltd (Note 12)			-				472,061

The above balances are due on demand, interest-free and unsecured.

Other balances due from/ (to) related parties

		December 31, 2020				December 31, 2021

Trade receivable, net – Zhengzhou BAK Battery Co., Ltd (i)		$	15,258,164			$	14,583,061
Trade receivable, net – Zhengzhou BAK New Energy Technology Co., Ltd (ii)		$	1,759,050			$	459,714
Trade payable, net – Zhengzhou BAK Battery Co., Ltd		$	-			$	(572,768	)
Dividend payable to non-controlling interest of Hitrans		$	-			$	1,444,737

(i)	Up to the date of this report, Zhengzhou BAK Battery Co., Ltd. repaid 14,583,061 to the Company.

(ii)	Up to the date of this report, Zhengzhou BAK New Energy Technology Co., Ltd repaid nil to the Company.

Payables to former subsidiaries

Payables to former subsidiaries as of December 31, 2020 and 2021 consisted of the following:

		December 31,				December 31,
		2020				2021
Payables to BAK International (Tianjin) Limited		$	(29,852	)		$	-
Payables to Shenzhen BAK Power Battery Co., Ltd		$	(597,138	)		$	(326,507	)
		$	(626,990	)		$	(326,507	)

Balance as of December 31, 2020 and December 31, 2021 consisted of payables for purchase of inventories from BAK International (Tianjin) Limited and Shenzhen BAK Power Battery Co., Ltd. From time to time, to meet the needs of its customers, the Company purchased products from these former subsidiaries that it did not produce to meet the needs of its customers.

On April 10, 2020, each of Mr. Yunfei Li, Mr. Ping Shen and Asia EVK entered into an agreement with CBAK Power and Shenzhen BAK, whereby Shenzhen BAK assigned its rights to the unpaid inventories cost owed by CBAK Power of approximately $1.0 million (RMB7,000,000), $2.3 million (RMB16,000,000) and $1.0 million (RMB7,300,000) (collectively $4.3 million, the “Sixth Debt”) to Mr. Yunfei Li, Mr. Ping Shen and Asia EVK, respectively (see Note 1).