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Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Information [Abstract]  
Segment Information

30. Segment Information

 

The Company’s chief operating decision maker has been identified as the Chief Executive Officer (“CEO”) who reviews financial information of operating segments based on US GAAP amounts when making decisions about allocating resources and assessing performance of the Company. 

 

As a result of the Hitrans acquisition discussed in Note 12, the Company determined that Hitrans met the criteria for separate reportable segment given its financial information is separately reviewed by the Company’s CEO. As a result, the Company determined that for the year ended December 31, 2022 and 2023, it operated in two operating segments namely CBAK and Hitrans. CBAK’s segment mainly includes the manufacture, commercialization and distribution of a wide variety of standard and customized lithium ion rechargeable batteries for use in a wide array of applications. Hitrans’ segment mainly includes the development and manufacturing of NCM precursor and cathode materials.

 

The Company primarily operates in the PRC and substantially all of the Company’s long-lived assets are located in the PRC.

 

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 (expenses) and net income (loss) by segment for the years ended December 31, 2022 and 2023 were as follows:

 

For the year ended December 31, 2022  CBAT   Hitrans   Corporate
unallocated
(note)		   Consolidated 
Net revenues  $94,715,189   $154,010,296   $
-
   $248,725,485 
Cost of revenues   (86,333,047)   (144,297,114)   
-
    (230,630,161)
Gross profit   8,382,142    9,713,182    
 
    18,095,324 
Total operating expenses   (13,489,453)   (14,993,719)   (1,116,755)   (29,599,927)
Operating (loss) income   (5,107,311)   (5,280,537)   (1,116,755)   (11,504,603)
Finance income (expenses), net   929,756    (438,387)   (309)   491,060 
Other income, net   (3,590,693)   (3,661,782)   5,710,000    (1,542,475)
Income tax credit   
-
    1,228,207    
-
    1,228,207 
Net income   (7,768,248)   (8,152,499)   4,592,936    (11,327,811)

  

For the year ended December 31, 2023  CBAT   Hitrans   Corporate
unallocated
(note)		   Consolidated 
Net revenues  $132,993,518   $71,444,847   $
-
   $204,438,365 
Cost of revenues   (101,413,350)   (71,300,692)   
-
    (172,714,042)
Gross profit   31,580,168    144,155    
-
    31,724,323 
Total operating expenses   (20,861,844)   (17,159,677)   (954,614)   (38,976,135)
Operating income (loss)   10,718,324    (17,015,522)   (954,614)   (7,251,812)
Finance income (expenses), net   337,243    95,816    (159)   432,900 
Other income (expenses), net   2,906,648    (2,276,918)   136,000    765,730 
Income tax expenses   
-
    (2,486,145)   
-
    (2,486,145)
Net income (loss)   13,962,215    (21,682,769)   (818,773)   (8,539,327)
                     
As of December 31, 2023                    
Identifiable long-lived assets   100,815,622    42,249,656    
-
    143,065,278 
Total assets   196,166,083    84,950,872    38,305    281,155,260 

 

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.

 

Net revenues by product:

 

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 two types of Li-ion rechargeable batteries: battery pack and high-power cylindrical 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:

 

   Year ended
December 31,
2022		   Year ended
December 31,
2023		 
High power lithium batteries used in:        
Electric vehicles  $4,694,694   $2,883,385 
Light electric vehicles   6,415,277    5,607,435 
Residential energy supply & uninterruptable supplies   83,603,046    124,502,698 
Trading of raw materials used in lithium batteries   2,172    - 
    94,715,189    132,993,518 
           
Materials used in manufacturing of lithium batteries          
Cathode   75,331,144    39,845,626 
Precursor   78,679,152    31,599,221 
    154,010,296    71,444,847 
Total consolidated revenue  $248,725,485   $204,438,365 

 

Net revenues by geographic area:

 

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:

  

   Year ended
December 31,
2022		   Year ended
December 31,
2023		 
Mainland China  $198,114,578   $119,307,085 
Europe   50,378,076    78,575,290 
USA   36,525    5,216 
Others   196,306    6,550,774 
Total  $248,725,485   $204,438,365 

 

Substantially all of the Company’s long-lived assets are located in the PRC.