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Concentrations and Credit Risk
 3 Months Ended
Mar. 31, 2024
Concentrations and Credit Risk [Abstract]  
Concentrations and Credit Risk
29.Concentrations and Credit Risk

 

(a) Concentrations

 

The Company had the following customers that individually comprised 10% or more of net revenue for the three months ended March 31, 2023 and 2024 as follows:

  

   Three months ended March 31, 
Sales of finished goods and raw materials  2023   2024 
Customer A  $13,947,344    32.90%   30,141,709    51.2%
Zhengzhou BAK Battery Co., Ltd (note 18)   9,323,839    21.99%   *    * 

 

* Comprised less than 10% of net revenue for the respective period.

 

The Company had the following customers that individually comprised 10% or more of net trade receivable (included VAT) as of December 31, 2023 and March 31, 2024 as follows:

 

   December 31, 2023   March 31, 2024 
Customer A  $
*
    
*
   $5,830,595    23.1%
Customer B   7,239,247    27.7%   *    * 
Zhengzhou BAK Battery Co., Ltd (note 18)   12,441,715    47.5%   7,570,334    30.0%

 

* Comprised less than 10% of net accounts receivable for the respective period.

 

The Company had the following suppliers that individually comprised 10% or more of net purchase for the three months ended March 31, 2023 and 2024 as follows:

 

   Three months ended March 31, 
   2023   2024 
Supplier A  $5,532,709    15.4%  $
*
    
*
 
Supplier B   6,580,232    18.3%   3,242,455    10.1%

 

* Comprised less than 10% of net purchase for the respective period.

 

The Company had the following suppliers that individually comprised 10% or more of trade payable as of December 31, 2023 and March 31, 2024 as follows:

 

   December 31, 2023   March 31, 2024 
Supplier B  $2,689,740    10.1%  $3,794,051    12.1%
Zhejiang Shengyang Renewable Resources Technology Co., Ltd. (note 18)   3,489,324    13.0%   3,651,854    11.6%

  

(b) Credit Risk

 

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and pledged deposits. As of December 31, 2023 and March 31, 2024, substantially all of the Company’s cash and cash equivalents were held by major financial institutions and online payment platforms located in the PRC, which management believes are of high credit quality. The Company has not experienced any losses on cash and cash equivalents to date. The Company does not require collateral or other securities to support financial instruments that are subject to credit risk.

 

For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses.