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Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information

29. Segment Information

 

The Group’s chief operating decision maker has been identified as the Chief Executive Officer (“CEO”) who reviews financial information of operating segments based on US GAAP amounts when making decisions about allocating resources and assessing performance of the Company. 

 

During the year ended December 31, 2021, as a result of the Hitrans acquisition discussed in Note 12, the Group determined that Hitrans met the criteria for separate reportable segment given its financial information is separately reviewed by the Group’s CEO. As a result, the Group determined that for the year ended December 31, 2021, it operated in two operating segments namely CBAK and Hitrans. CBAK’s segment mainly includes the manufacture, commercialization and distribution of a wide variety of standard and customized lithium ion rechargeable batteries for use in a wide array of applications. Hitrans’ segment mainly includes the development and manufacturing of NCM precursor and cathode materials.

 

The Company primarily operates in the PRC and substantially all of the Company’s long-lived assets are located in the PRC.

 

The Company’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, cost of revenues, operating expenses, operating income, finance income (expense), other income and net income. Net revenue, cost of revenues, operating expenses, operating income, finance income (expense), other income (expenses) and net income (loss) by segment for the years ended December 31, 2020 and 2021 were as follows:

 

For the year ended December 31, 2020  CBAT   Corporate
unallocated
(note)		   Consolidated 
Net revenues  $37,566,152   $
-
   $37,566,152 
Cost of revenues   (34,852,132)   
-
    (34,852,132)
Gross profit   2,714,020    
-
    2,714,020 
Total operating expenses   (9,669,828)   (1,523,695)   (11,193,523)
Operating loss   (6,955,808)   (1,523,695)   (8,479,503)
Finance (expenses) income, net   (969,354)   (429,741)   (1,399,095)
Other (expenses) income, net   (40,170)   2,072,000    2,031,830 
Income tax (expense) credit   
-
    
-
    
-
 
Net income (loss)   (7,965,332)   118,564    (7,846,768)
                
As of December 31, 2020               
Identifiable long-lived assets   78,734,459    
-
    78,734,459 
Total assets   142,767,079    
-
    142,767,079 

 

For the year ended December 31, 2021  CBAT   Hitrans   Corporate
unallocated
(note)		   Consolidated 
Net revenues  $34,804,089   $17,865,644   $
-
   $52,669,733 
Cost of revenues   (30,946,417)   (16,612,826)   
-
    (47,559,243)
Gross profit   3,857,672    1,252,818    
-
    5,110,490 
Total operating expenses   (13,132,161)   (979,547)   (2,711,288)   (16,822,996)
Operating (loss) income   (9,274,489)   273,271    (2,711,288)   (11,712,506)
Finance income (expenses), net   286,741    (137,178)   635,317    784,880 
Other income, net   2,641,329    310,395    61,802,000    64,753,724 
Income tax credit   7,713,191    19,855    
-
    7,733,046 
Net income   1,366,772    466,343    59,726,029    61,559,144 
                     
As of December 31, 2021                    
Identifiable long-lived assets   101,506,039    31,638,795    
-
    133,144,834 
Total assets   164,535,145    97,366,372    716,480    262,617,997 

 

Note: The Company does not allocate its assets located and expenses incurred outside China to its reportable segments because these assets and activities are managed at a corporate level.

 

Net revenues by product:

 

The Company’s products can be categorized into high power lithium batteries and materials used in manufacturing of lithium batteries.. For the product sales of high power lithium batteries, the Company manufactured five types of Li-ion rechargeable batteries: aluminum-case cell, battery pack, cylindrical cell, lithium polymer cell and high-power lithium battery cell. The Company’s battery products are sold to packing plants operated by third parties primarily for use in mobile phones and other electronic devices. For the product sales of materials used in manufacturing of lithium batteries, the Company, via its subsidiary, Hitrans, manufactured cathode materials and Precursor for use in manufacturing of cathode. Revenue from these products is as follows:

 

   Year ended
December 31,
2020		   Year ended
December 31,
2021		 
High power lithium batteries used in:        
Electric vehicles  $259,955   $243,837 
Light electric vehicles   39,428    733,382 
Uninterruptable supplies   22,748,627    33,307,073 
Trading of raw materials used in lithium batteries   14,518,142    519,796 
    37,566,152    34,804,088 
           
Materials used in manufacturing of lithium batteries          
Cathode   
-
    8,726,240 
Precursor   
-
    9,139,405 
    
-
    17,865,645 
Total consolidated revenue  $37,566,152   $52,669,733 

 

Net revenues by geographic area:

 

The Company’s operations are located in the PRC. The following table provides an analysis of the Company’s sales by geographical markets based on locations of customers:

  

   Year ended
December 31,
2020		   Year ended
December 31,
2021		 
Mainland China  $35,464,245    43,745,765 
Europe   1,776,000    8,503,338 
Korea   246,453    
-
 
USA   3,592    440 
Others   75,862    420,190 
Total  $37,566,152   $52,669,733 

 

Substantially all of the Company’s long-lived assets are located in the PRC.