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Balances and Transactions with Related Parties | 3 Months Ended
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Mar. 31, 2024
Balances and Transactions with Related Parties [Abstract] |
Balances and Transactions With Related Parties |
| 18. | Balances and Transactions With Related Parties
The principal related parties with which the Company had transactions during the periods 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 (“SZ BAK”) |  | Former subsidiary and refer to Note b
Shenzhen BAK Power Battery Co., Ltd (“BAK SZ”) |  | Former subsidiary and refer to Note b
Zhejiang Shengyang Renewable Resources Technology Co., Ltd. |  | Note c
Fuzhou BAK Battery Co., Ltd |  | Note d
(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
(c) | On September 27, 2023, Hitrans entered into an Equity Transfer Contract (the “Equity Transfer Contract”) with Mr. Shengyang Xu, pursuant to which Hitrans will initially acquire a 26% equity interest in Zhejiang Shengyang Renewable Resources Technology Co., Ltd. (“Zhejiang Shengyang”) from Mr. Xu, an individual who currently holds 97% of Zhejiang Shengyang, for a price of RMB28.6 million (approximately $3.9 million) (the “Initial Acquisition”). Neither Mr. Xu, nor Zhejiang Shengyang is related to the Company.
(d) | Zhengzhou BAK Battery Co., Ltd has 51% equity interest in Fuzhou BAK Battery Co., Ltd. Zhengzhou BAK Battery Co., Ltd is a wholly owned subsidiary of BAK SZ.
Related party transactions: The Company entered into the following significant related party transactions:
|  | For the three months ended March 31, |
|  | 2023 |  |  | 2024 |
Purchase of batteries from Zhengzhou BAK Battery Co., Ltd |  | $ | 3,161,173 |  |  | $ | 2,572,553 |
Purchase of materials from Zhejiang Shengyang Renewable Resources Technology Co., Ltd |  |  | 2,702,824 |  |  |  | 1,546,870 |
Sales of batteries to Fuzhou BAK Battery Co., Ltd |  |  | - |  |  |  | 76,279 |
Sales of cathode raw materials to Zhengzhou BAK Battery Co., Ltd |  |  | 9,323,839 |  |  |  | 4,985,896 |
Sales of cathode raw materials to Zhengzhou BAK Electronics Co., Ltd. |  |  | - |  |  |  | 97,002 |
Related party balances: Apart from the above, the Company recorded the following significant related party balances as of December 31, 2023 and March 31, 2024: Receivables from a former subsidiary, net
|  | December 31, 2023 |  |  | March 31, 2024 |
Receivables from Shenzhen BAK Power Battery Co., Ltd |  | $ | 74,946 |  |  | $ | 36,273 |
Less: Allowance for credit losses |  |  | - |  |  |  | (326 | )
|  | $ | 74,946 |  |  | $ | 35,947 |
An analysis of the allowance for credit losses are as follows:
Balance as at January 1, 2024 |  | $ | - |
Current period provision, net |  |  | 328 |
Foreign exchange adjustment |  |  | (2 | )
Balance as at March 31, 2024 |  | $ | 326 |
Balance as of December 31, 2023 and March 31, 2024 consisted of receivable for sales of cathode materials to Shenzhen BAK Power Battery Co., Ltd. Other balances due from/ (to) related parties
|  | December 31, 2023 |  |  | March 31, 2024 |
Trade receivable, net – Zhengzhou BAK Battery Co., Ltd. (i) |  | $ | 12,441,715 |  |  | $ | 7,570,334 |
Trade receivable, net – Zhengzhou BAK Electronics Co., Ltd. (ii) |  | $ | 226,143 |  |  | $ | 87,762 |
Bills receivable – Issued by Zhengzhou BAK Electronics Co., Ltd (ii) |  | $ | 47,767 |  |  | $ | 78,998 |
Trade payable, net – Zhengzhou BAK Battery Co., Ltd (iii) |  | $ | 803,685 |  |  | $ | 1,588,488 |
Trade payable, net – Zhejiang Shengyang Renewable Resources Technology Co., Ltd (iv) |  | $ | 3,489,324 |  |  | $ | 3,651,854 |
Deposit paid for acquisition of long-term investments – Shenzhen BAK Power Battery Co., Ltd (note 14) |  | $ | 7,101,492 |  |  | $ | 11,883,163 |
Dividend payable to non-controlling interest of Hitrans (note 17) |  | $ | 1,256,745 |  |  | $ | 1,216,179 |
(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 $2.8 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, 2023 to suppliers for settling trade payables subsequent to December 31, 2023. Bills receivable as of March 31, 2024 were pledged to bank as security for issuance of bills payable (note 15).
(iii) | Representing trade payables on purchase of batteries from Zhengzhou BAK Battery Co., Ltd.
(iv) | Representing trade payables on purchase of cathode raw materials from Zhejiang Shengyang Renewable Resources Technology Co., Ltd.
Payables to a former subsidiary Payables to a former subsidiary as of December 31, 2023 and March 31, 2024 consisted of the following:
|  | December 31, 2023 |  |  | March 31, 2024 |
Payables to Shenzhen BAK Power Battery Co., Ltd |  | $ | (411,111 | ) |  | $ | (416,491 | )
Balance as of December 31, 2023 and March 31, 2024 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/1943274/2147477968/946-235-50-2 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/1943274/2147477968/946-235-50-2 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/1943274/2147479134/946-220-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/1943274/2147479134/946-220-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/1943274/2147479134/946-220-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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