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Segment Information (Tables)

6 Months Ended

Jun. 30, 2023

Segment Information [Abstract]

Schedule of Operating Decision Maker Evaluates Performance based on Each Reporting Segment

The Company’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, cost of revenues, operating expenses, operating income, finance income (expense), other income and net income. Net revenue, cost of revenues, operating expenses, operating income, finance income (expense), other income and net income by segment for the three and six months ended June 30, 2022 and 2023 were as follows:

For the three months ended June 30, 2022		CBAT				Hitrans				Corporate unallocated (note)				Consolidated
Net revenues		$	25,715,415			$	30,634,245			$	-			$	56,349,660
Cost of revenues			(22,879,128	)			(27,935,224	)			-				(50,814,352	)
Gross profit			2,836,287				2,699,021				-				5,535,308
Total operating expenses			(3,160,096	)			(1,892,508	)			(338,215	)			(5,390,819	)
Operating (loss) income			(323,809	)			806,513				(338,215	)			144,489
Finance income (expenses), net			82,956				(96,857	)			(606,589	)			(620,490	)
Other (expenses) income, net			(723,820	)			264,874				2,131,000				1,672,054
Income tax expenses			-				(179,788	)			-				(179,788	)
Net (loss) income			(964,673	)			794,742				1,186,196				1,016,265

For the three months ended June 30, 2023		CBAT				Hitrans				Corporate unallocated (note)				Consolidated
Net revenues		$	22,232,003			$	20,188,867			$	-			$	42,420,870
Cost of revenues			(18,806,856	)			(19,729,372	)			-				(38,536,228	)
Gross profit			3,425,147				459,495				-				3,884,642
Total operating expenses			(4,835,859	)			(2,355,472	)			(466,361	)			(7,657,692	)
Operating (loss) income			(1,410,712	)			(1,895,977	)			(466,361	)			(3,773,050	)
Finance income (expenses), net			153,678				98,904				(110	)			252,472
Other income (expenses), net			130,810				107,230				36,000				274,040
Income tax credit			-				307,311				-				307,311
Net (loss) income			(1,126,224	)			(1,382,532	)			(430,471	)			(2,939,227	)

For the six months ended June 30, 2022		CBAT				Hitrans				Corporate unallocated (note)				Consolidated
Net revenues		$	40,736,101			$	95,809,857			$	-			$	136,545,958
Cost of revenues			(36,916,890	)			(88,777,406	)			-				(125,694,296	)
Gross profit			3,819,211				7,032,451				-				10,851,662
Total operating expenses			(6,268,832	)			(5,030,255	)			(743,347	)			(12,042,434	)
Operating (loss) income			(2,449,621	)			2,002,196				(743,347	)			(1,190,772	)
Finance income (expenses), net			190,826				(199,565	)			(606,737	)			(615,476	)
Other (expenses) income, net			(220,664	)			46,922				3,763,000				3,589,258
Income tax expenses			-				(86,242	)			-				(86,242	)
Net (loss) income			(2,479,459	)			1,763,311				2,412,916				1,696,768

For the six months ended June 30, 2023		CBAT				Hitrans				Corporate unallocated (note)				Consolidated
Net revenues		$	51,835,386			$	32,982,185			$	-			$	84,817,571
Cost of revenues			(45,196,881	)			(32,830,304	)			-				(78,027,185	)
Gross profit			6,638,505				151,881				-				6,790,386
Total operating expenses			(8,063,805	)			(4,785,884	)			(594,637	)			(13,444,326	)
Operating (loss) income			(1,425,300	)			(4,634,003	)			(594,637	)			(6,653,940	)
Finance income (expenses), net			186,660				71,285				(162	)			257,783
Other (expenses) income, net			221,340				199,913				121,000				542,253
Income tax expenses			-				710,195				-				710,195
Net (loss) income			(1,017,300	)			(3,652,610	)			(473,799	)			(5,143,709	)

As of June 30, 2023
Identifiable long-lived assets			95,839,741				31,906,282				-				127,746,023
Total assets			169,751,833				82,409,230				13,349				252,174,412

Note: The Company does not allocate its assets located and expenses incurred outside China to its reportable segments because these assets and activities are managed at a corporate level.

Schedule of Revenue from these Products

The Company’s products can be categorized into high power lithium batteries and materials used in manufacturing of lithium batteries. For the product sales of high power lithium batteries, the Company manufactured five types of Li-ion rechargeable batteries: aluminum-case cell, battery pack, cylindrical cell, lithium polymer cell and high-power lithium battery cell. The Company’s battery products are sold to packing plants operated by third parties primarily for use in mobile phones and other electronic devices. For the product sales of materials used in manufacturing of lithium batteries, the Company, via its subsidiary, Hitrans, manufactured cathode materials and Precursor for use in manufacturing of cathode. Revenue from these products is as follows:

		Three months ended June 30,								Six months ended June 30,
		2022				2023				2022				2023
High power lithium batteries used in:
Electric vehicles		$	(6	)		$	135,731			$	303			$	1,955,979
Light electric vehicles			671,444				1,147,902				760,208				3,115,959
Uninterruptable supplies			25,043,977				20,948,370				39,975,590				46,763,448
			25,715,415				22,232,003				40,736,101				51,835,386

Materials used in manufacturing of lithium batteries
Cathode			26,523,780				10,070,627				54,886,657				20,691,700
Precursor			4,110,465				10,118,240				40,923,200				12,290,485
			30,634,245				20,188,867				95,809,857				32,982,185
Total consolidated revenue		$	56,349,660			$	42,420,870			$	136,545,958			$	84,817,571

Schedule of Operations are Located in the PRC

The Company’s operations are located in the PRC. The following table provides an analysis of the Company’s sales by geographical markets based on locations of customers:

		Three months ended June 30,								Six months ended June 30,
		2022				2023				2022				2023
Mainland China		$	42,620,429			$	31,338,415			$	114,616,442			$	55,885,152
Europe			13,740,194				10,642,516				21,875,100				27,901,804
Others			(10,963	)			439,939				54,416				1,030,615
Total		$	56,349,660			$	42,420,870			$	136,545,958			$	84,817,571