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v3.23.1

Balances and Transactions With Related Parties | 3 Months Ended
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Mar. 31, 2023
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
Zhengzhou BAK Battery Co., Ltd |  | Note a
Shenzhen BAK Battery Co., Ltd |  | Former subsidiary and refer to Note b
Shenzhen BAK Power Battery Co., Ltd |  | Former subsidiary and refer to Note b
| (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 Shenzhen BAK Battery Co., Ltd and Shenzhen BAK Power Battery Co., Ltd
Related party transactions: The Company entered into the following significant related party transactions:
|  | For the three months ended March 31, |
|  | 2022 |  |  | 2023 |
Purchase of batteries from Zhengzhou BAK Battery Co., Ltd |  | $ | 5,164,433 |  |  | $ | 3,161,173 |
Sales of cathode raw materials to Zhengzhou BAK Battery Co., Ltd |  |  | 25,823,532 |  |  |  | 9,323,839 |
Sales of cathode 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, 2022 and March 31, 2023: Receivables from a former subsidiary, net
|  | December 31, 2022 |  |  | March 31, 2023 |
Receivables from Shenzhen BAK Power Battery Co., Ltd |  | $ | 5,518,052 |  |  | $ | 1,834,983 |
Less: Allowance for credit losses |  |  | - |  |  |  | (16,714 | )
|  | $ | 5,518,052 |  |  |  | 1,818,269 |
An analysis of the allowance for credit losses are as follows:
Balance as at December 31, 2022 |  | $ | - |
Adoption of ASC Topic 326 |  |  | - |
Balance as at January 1, 2023 |  |  | - |
Current period provision, net |  |  | 16,779 |
Foreign exchange adjustment |  |  | (65 | )
Balance as at March 31, 2023 |  | $ | 16,714 |
Balance as of December 31, 2022 and March 31, 2023 consisted of receivable for sales of cathode materials to Shenzhen BAK Power Battery Co., Ltd. Up to the date of this report, Shenzhen BAK Power Battery Co., Ltd repaid $1.8 million to the Company. Other balances due from/ (to) related parties
|  | December 31, 2022 |  |  | March 31, 2023 |
Trade receivable, net – Zhengzhou BAK Battery Co., Ltd. (i) |  | $ | 9,156,383 |  |  | $ | 14,251,802 |
Bills receivable – Issued by Zhengzhou BAK Battery Co., Ltd (ii) |  | $ | 2,941,683 |  |  | $ | 2,246,742 |
Trade payable, net – Zhengzhou BAK Battery Co., Ltd (iii) |  | $ | 5,629,343 |  |  | $ | 3,307,343 |
Dividend payable to non-controlling interest of Hitrans (note 14) |  | $ | 1,290,942 |  |  | $ | 1,298,497 |
| (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 $5.2 million to the Company.
| (ii) | Representing bills receivable issued by Zhengzhou BAK Battery Co., Ltd. The Company endorsed the bills receivable as of December 31, 2022 to suppliers for settling trade payables subsequent to December 31, 2022. Bills receivable as of March 31, 2023 were pledged to bank as security for issuance of bills payable (note 12).
| (iii) | Representing trade payables on purchase of batteries from Zhengzhou BAK Battery Co., Ltd.
Payables to a former subsidiary Payables to a former subsidiary as of December 31, 2022 and March 31, 2023 consisted of the following:
|  | December 31, 2022 |  |  | March 31, 2023 |
Payables to Shenzhen BAK Power Battery Co., Ltd |  | $ | (358,067 | ) |  | $ | (355,913 | )
Balance as of December 31, 2022 and March 31, 2023 consisted of payables for purchase of inventories from Shenzhen BAK Power Battery Co., Ltd.

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