XML 39 R23.htm IDEA: XBRL DOCUMENT
v3.23.1

Balances and Transactions With Related Parties | 12 Months Ended
--- | ---
Dec. 31, 2022
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
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 and Shenzhen BAK Power 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. was 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, 2021 |  |  | For the year ended December 31, 2022 |
Purchase of batteries from Zhengzhou BAK Battery Co., Ltd |  | $ | 5,522,832 |  |  | $ | 26,819,454 |
Sales of cathode raw materials to Zhengzhou BAK Battery Co., Ltd |  |  | 8,339,088 |  |  |  | 53,236,804 |
Sales return of batteries to Zhengzhou BAK New Energy Technology Co., Ltd |  |  | (91,974 | ) |  |  | - |
Sales of cathode raw materials to Shenzhen BAK Power Battery Co., Ltd |  |  | 10,032 |  |  |  | 8,681,496 |
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, 2021 and December 31, 2022: Receivables from former subsidiary
|  | December 31, 2021 |  |  | December 31, 2022 |
Receivables from Shenzhen BAK Power Battery Co., Ltd |  | $ | 2,263,955 |  |  | $ | 5,518,052 |
Balance as of December 31, 2021 and 2022 represented trade receivable for sales of cathode raw materials to Shenzhen BAK Power Battery Co., Ltd. Up to the date of this report, Shenzhen BAK Power Battery Co., Ltd repaid $4.5 million to the Company. Amount due from non-controlling interest
|  | December 31, 2021 |  |  | December 31, 2022 |
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. Hitrans assessed the recoverability of the amount due from Shenzhen Baijun and considered the recoverability is low and written off the whole amount due from Shenzhen Baijun as of December 31, 2022. Amount due from related party
|  | December 31, 2021 |  |  | December 31, 2022 |
Hangzhou Juzhong Daxin Asset Management Co., Ltd (Note 12) |  |  | 472,061 |  |  |  | - |
The above balances are due on demand, interest-free and unsecured. The Company assessed the recoverability of the amount due from Juzhong Daxin and considered the recoverability is low and written off the whole amount due from Juzhong Daxin as of December 31, 2022. Other balances due from/ (to) related parties
|  | December 31, 2021 |  |  | December 31, 2022 |
Trade receivable, net – Zhengzhou BAK Battery Co., Ltd (i) |  | $ | 14,583,061 |  |  | $ | 9,156,383 |
Trade receivable, net – Zhengzhou BAK New Energy Technology Co., Ltd (ii) |  | $ | 459,714 |  |  | $ | - |
Bills receivable – Issued by Zhengzhou BAK Battery Co., Ltd (iii) |  | $ | 1,861,280 |  |  | $ | 2,941,683 |
Trade payable, net – Zhengzhou BAK Battery Co., Ltd |  | $ | (572,768 | ) |  | $ | (5,629,343 | )
Dividend payable to non-controlling interest of Hitrans (note 16) |  | $ | 1,444,737 |  |  | $ | 1,290,942 |
(i) | Representing trade receivables from sales of cathode raw materials to Zhengzhou BAK Battery Co., Ltd. Up to the date of this report, Zhengzhou BAK Battery Co., Ltd. repaid $5.1 million to the Company.
(ii) | Representing trade payables on purchase of batteries from Zhengzhou BAK Battery Co., Ltd.
(iii) | Representing bills receivable issued by Zhengzhou BAK Battery Co., Ltd. The Company endorsed the bills receivable to suppliers for settling trade payables subsequent to December 31, 2022.
Payables to a former subsidiary Payables to a former subsidiary as of December 31, 2021 and 2022 consisted of the following:
|  | December 31, |  |  | December 31, |
|  | 2021 |  |  | 2022 |
Payables to Shenzhen BAK Power Battery Co., Ltd |  | $ | (326,507 | ) |  | $ | (358,067 | )
Balance as of December 31, 2021 and December 31, 2022 consisted of payables for purchase of inventories from Shenzhen BAK Power Battery Co., Ltd.

X
- References No definition available. + Details
Name: | us-gaap_RelatedPartyTransactionsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_RelatedPartyTransactionsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration