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Balances and Transactions With Related Parties | 3 Months Ended
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Mar. 31, 2022
Related Party Transactions [Abstract] |
Balances and Transactions With Related Parties | 16. 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
Zhengzhou BAK Electronics Co., Ltd |  | Note c
Shenzhen BAK Battery Co., Ltd |  | Former subsidiary and refer to Note d
Shenzhen BAK Power Battery Co., Ltd |  | Former subsidiary and refer to Note d
Hangzhou Juzhong Daxin Asset Management Co., Ltd |  | Note e
| (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) | Shenzhen BAK Power Battery Co., Ltd has 95% equity interests in Zhengzhou BAK Electronics Co., Ltd.
| (d) | Mr. Xiangqian Li is a director of Shenzhen BAK Battery Co., Ltd and Shenzhen BAK Power Battery Co., Ltd
| (e) | Hangzhou Juzhong Daxin Asset Management Co., Ltd. is the trustee of 85% of registered equity interests of Hitrans (note 11)
Related party transactions: The Company entered into the following significant related party transactions:
|  | For the three months ended March 31, |
|  | 2021 |  |  | 2022 |
Purchase of finished goods from Zhengzhou BAK Battery Co., Ltd |  | $ | 1,259,309 |  |  | $ | 5,164,433 |
Sales of finished goods and raw materials to Zhengzhou BAK Battery Co., Ltd |  |  | 108,290 |  |  |  | 25,823,532 |
Sales of finished goods and raw materials to Zhengzhou BAK Electronics Co., Ltd |  |  | 412,353 |  |  |  | - |
Sales of finished goods and raw materials to Shenzhen BAK Power Battery Co., Ltd |  |  | - |  |  |  | 112,468 |
Related party balances: Apart from the above, the Company recorded the following significant related party balances as of December 31, 2021 and March 31, 2022: Receivables from former subsidiary
|  | December 31, 2021 |  |  | March 31, 2022 |
Receivables from Shenzhen BAK Power Battery Co., Ltd |  | $ | 2,263,955 |  |  | $ | 1,134,585 |
Balance as of December 31, 2021 and March 31, 2022 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 $0.5 million to the Company. Amount due from non-controlling interest
|  | December 31, 2021 |  |  | March 31, 2022 |
Shenzhen Baijun Technology Co., Ltd |  |  |  |  |  |
Current |  | $ | 125,883 |  |  | $ | 126,161 |
Non-current |  |  | 62,941 |  |  |  | 63,081 |
|  | $ | 188,824 |  |  | $ | 189,242 |
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 parties
|  | December 31, 2021 |  |  | March 31, 2022 |
Hangzhou Juzhong Daxin Asset Management Co., Ltd (Note 11) |  | $ | 472,061 |  |  | $ | 473,104 |
The above balances are due on demand, interest-free and unsecured. Other balances due from/ (to) related parties
|  | December 31, 2021 |  |  | March 31, 2022 |
Trade receivable, net – Zhengzhou BAK Battery Co., Ltd. (i) |  | $ | 14,583,061 |  |  | $ | 12,963,529 |
Trade receivable, net – Zhengzhou BAK New Energy Technology Co., Ltd. (ii) |  | $ | 459,714 |  |  | $ | 173,471 |
Trade payable, net – Zhengzhou BAK Battery Co., Ltd |  | $ | (572,768 | ) |  | $ | (3,057,449 | )
Dividend payable to non-controlling interest of Hitrans |  | $ | (1,444,737 | ) |  | $ | (1,446,583 | )
| (i) | Up to the date of this report, Zhengzhou BAK Battery Co., Ltd. repaid $12.5 million to the Company.
| (ii) | Up to the date of this report, Zhengzhou BAK New Energy Technology Co., Ltd repaid $173,471 to the Company.
Payables to former subsidiaries Payables to former subsidiaries as of December 31, 2021 and March 31, 2022 consisted of the following:
|  | December 31, 2021 |  |  | March 31, 2022 |
Payables to Shenzhen BAK Power Battery Co., Ltd |  |  | (326,507 | ) |  |  | (325,624 | )
|  | $ | (326,507 | ) |  |  | (325,624 | )
Balance as of December 31, 2021 and March 31, 2022 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.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI https://asc.fasb.org/topic&trid=2122745 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 6 -URI https://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864 + Details
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