XML 52 R36.htm IDEA: XBRL DOCUMENT

CBAK Energy Technology, Inc. (Parent Company)

12 Months Ended

Dec. 31, 2022

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, 2021 and 2022, additional transfers of $171,681,915 and $166,414,198 were required before the statutory general reserve reached 50% of the registered capital of the PRC subsidiaries. As of December 31, 2021 and 2022, 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, 2021 and 2022.

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, 2021				Year ended December 31, 2022
REVENUE, net		$	-			$

OPERATING EXPENSES:
Salaries and consulting expenses			1,212,239				227,588
General and administrative			1,499,049				889,167

Total operating expenses			(2,711,288	)			(1,116,755	)

LOSS FROM OPERATIONS			(2,711,288	)			(1,116,757	)

Finance (expenses) income			636,425				-
Changes in fair value of warrants liability			61,802,000				5,710,000

INCOME ATTRIBUTABLE TO PARENT COMPANY			59,727,137				4,593,243

EQUITY IN INCOME (LOSS) OF SUBSIDIARIES			1,758,915				(14,041,689	)

NET INCOME (LOSS) ATTRIBUTABLE TO SHAREHOLDERS		$	61,486,052			$	(9,448,446	)

		December 31, 2021				December 31, 2022
ASSETS

Interests in subsidiaries		$	140,031,308			$	119,120,917
Cash and cash equivalents			716,480				118,559
Total assets		$	140,747,788			$	119,239,476

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accrued expenses and other payables			1,610,229				1,608,102
Warrants liability			5,846,000				136,000
Total current liabilities			7,456,229				1,744,102

SHAREHOLDERS’ EQUITY			133,291,559				117,495,374
Total liabilities and shareholders’ equity		$	140,747,788			$	119,239,476

		Year ended December 31, 2021				Year ended December 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$	61,486,052			$	(9,448,446	)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity in income (loss) of subsidiaries			(1,758,915	)			(14,041,689	)
Share based compensation			1,047,777				64,193
Changes in fair value of warrants liability			(61,802,000	)			(5,710,000	)
Change in operating assets and liabilities
Accrued expenses and other payable			(112,585	)			(2,127	)
Net cash used in operating activities			(1,139,671	)			(29,138,069	)

CASH FLOWS FROM INVESTING ACTIVITIES:
(Decrease) increase in interest in subsidiaries			(68,746,346	)			28,540,148
Net cash used in investing activities			(68,746,346	)			28,540,148

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

CHANGE IN CASH AND CASH EQUIVALENTS			(4,391,006	)			(597,921	)

CASH AND CASH EQUIVALENTS, beginning of year			5,107,486				716,480

CASH AND CASH EQUIVALENTS, end of year		$	716,480			$	118,559

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.