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CBAK Energy Technology, Inc. (Parent Company)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

CBAK Energy Technology, Inc. (Parent Company)

30. 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, 2020 and 2021, additional transfers of $164,388,965 and $171,681,915 were required before the statutory general reserve reached 50% of the registered capital of the PRC subsidiaries. As of December 31, 2020 and 2021, 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, 2020 and 2021.

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, 2020				Year ended December 31, 2021
REVENUE, net		$	-			$

OPERATING EXPENSES:
Salaries and consulting expenses			992,246				1,212,239
General and administrative			531,449				1,499,049

Total operating expenses			(1,523,695	)			(2,711,288	)

LOSS FROM OPERATIONS			(1,523,695	)			(2,711,288	)

Finance (expenses) income			(429,741	)			636,425
Changes in fair value of warrants liability			2,072,000				61,802,000

INCOME ATTRIBUTABLE TO PARENT COMPANY			118,564				59,727,137

EQUITY IN (LOSS) INCOME OF SUBSIDIARIES			(7,925,462	)			1,758,915

NET (LOSS) INCOME ATTRIBUTABLE TO SHAREHOLDERS		$	(7,806,898	)		$	61,486,052

		December 31, 2020				December 31, 2021
ASSETS

Interests in subsidiaries		$	66,797,421			$	140,031,308
Cash and cash equivalents			5,107,486				716,480
Total assets		$	71,904,907			$	140,747,788

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accrued expenses and other payables			1,722,814				1,610,229
Warrants liability			17,783,000				5,846,000
Total current liabilities			19,505,814			$	7,456,229

SHAREHOLDERS’ EQUITY			52,399,093				133,291,559
Total liabilities and shareholders’ equity		$	71,904,907			$	140,747,788

		Year ended December 31, 2020				Year ended December 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income		$	(7,806,898	)		$	61,486,052
Adjustments to reconcile net loss to net cash used in operating activities:
Equity in (loss) income of subsidiaries			7,925,462				(1,758,915	)
Share based compensation			803,931				1,047,777
Changes in fair value of warrants liability			(2,072,000	)			(61,802,000	)
Change in operating assets and liabilities
Accrued expenses and other payable			(8,437	)			(112,585	)
Net cash used in operating activities			(1,157,942	)			(1,139,671	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease in interest in subsidiaries			(39,083,154	)			(68,746,346	)
Net cash used in investing activities			(39,083,154	)			(68,746,346	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares			45,348,582				65,495,011
Net cash provided by financing activities			45,348,582				65,495,011

CHANGE IN CASH AND CASH EQUIVALENTS			5,107,486				(4,391,006	)

CASH AND CASH EQUIVALENTS, beginning of year			-				5,107,486

CASH AND CASH EQUIVALENTS, end of year		$	5,107,486			$	716,480

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.