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Balances and Transactions With Related Parties | 6 Months Ended
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Jun. 30, 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:
|  | Three months ended June 30, |  |  | Six months ended June 30, |
|  | 2022 |  |  | 2023 |  |  | 2022 |  |  | 2023 |
Purchase of batteries from Zhengzhou BAK Battery Co., Ltd |  | $ | 9,955,251 |  |  | $ | 341,751 |  |  | $ | 15,119,684 |  |  | $ | 3,502,924 |
Sales of cathode raw materials to Zhengzhou BAK Battery Co., Ltd |  | $ | 20,786,249 |  |  | $ | 7,669,547 |  |  | $ | 46,609,781 |  |  | $ | 16,993,386 |
Sales of cathode raw materials to Shenzhen BAK Power Battery Co., Ltd |  | $ | 4,616,479 |  |  | $ | - |  |  | $ | 4,728,947 |  |  | $ | - |
Related party balances: Apart from the above, the Company recorded the following significant related party balances as of December 31, 2022 and June 30, 2023: Receivables from former subsidiary, net
|  | December 31, 2022 |  |  | June 30, 2023 |
Receivables from Shenzhen BAK Power Battery Co., Ltd |  | $ | 5,518,052 |  |  | $ | 323,973 |
Less: Allowance for credit losses |  |  | - |  |  |  | - |
|  | $ | 5,518,052 |  |  |  | 323,973 |
Balance as of December 31, 2022 and June 30, 2023 consisted of receivable for sales of cathode materials to Shenzhen BAK Power Battery Co., Ltd. Other balances due from/ (to) related parties
|  | December 31, 2022 |  |  | June 30, 2023 |
Trade receivable, net – Zhengzhou BAK Battery Co., Ltd. (i) |  | $ | 9,156,383 |  |  | $ | 15,054,609 |
Bills receivable – Issued by Zhengzhou BAK Battery Co., Ltd. (ii) |  | $ | 2,941,683 |  |  | $ | 1,805,975 |
Trade payable, net – Zhengzhou BAK Battery Co., Ltd (iii) |  | $ | 5,629,343 |  |  | $ | 653,610 |
Dividend payable to non-controlling interest of Hitrans (note 15) |  | $ | 1,290,942 |  |  | $ | 1,229,613 |
| (i) | Representing trade receivable 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 $1.3 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 payable subsequent to December 31, 2022. Bills receivable as of June 30, 2023 were pledged to bank as security for issuance of bills payable (note 13).
| (iii) | Representing trade payable on purchase of batteries from Zhengzhou BAK Battery Co., Ltd.
Payables to former subsidiaries Payables to former subsidiaries as of December 31, 2022 and June 30, 2023 consisted of the following:
|  | December 31, 2022 |  |  | June 30, 2023 |
Payables to Shenzhen BAK Power Battery Co., Ltd |  | $ | (358,067 | ) |  | $ | (387,263 | )
Balance as of December 31, 2022 and June 30, 2023 consisted of payables for purchase of inventories from Shenzhen BAK Power Battery Co., Ltd.

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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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-5 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-6 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 235 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481062/946-235-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 235 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481062/946-235-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 850 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483326/850-10-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 220 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-07(2)(g)(3)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 220 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-07(2)(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 220 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-07(2)(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 850 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//850/tableOfContent Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 850 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483326/850-10-50-6 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 850 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483326/850-10-50-1 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 850 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147483326/850-10-50-1 + Details
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