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Long-Term Investments, Net | 9 Months Ended
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Sep. 30, 2024
Long-Term Investments, Net [Abstract] |
Long-term investments, net |
| 9. | Long-term investments, net
Long-term investments as of December 31, 2023 and September 30, 2024 consisted of the following:
|  | December 31, 2023 |  |  | September 30, 2024 |
Investments in equity method investees |  | $ | 1,926,611 |  |  | $ | 1,690,957 |
Investments in non-marketable equity |  |  | 638,394 |  |  |  | 645,580 |
|  | $ | 2,565,005 |  |  | $ | 2,336,537 |
The following is the carrying value of the long-term investments:
|  | December 31, 2023 |  |  | September 30, 2024 |
|  | Carrying Amount |  |  | Economic Interest |  |  | Carrying Amount |  |  | Economic Interest |
Investments in equity method investees |  |  |  |  |  |  |  |  |  |  |  |
Guangxi Guiwu CBAK New Energy Technology Co., Ltd (a) |  | $ | 254,475 |  |  |  | 20 | % |  | $ | - |  |  |  | - |
Zhejiang Shengyang Renewable Resources Technology Co., Ltd. (b) |  |  | 1,672,136 |  |  |  | 26 | % |  |  | 1,690,957 |  |  |  | 26 | %
|  | $ | 1,926,611 |  |  |  |  |  |  | $ | 1,690,957 |  |  |  |  |
Investments in non-marketable equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hunan DJY Technology Co., Ltd |  | $ | 638,394 |  |  |  |  |  |  | $ | 645,580 |  |  |  |  |
Nanjing CBAK Education For Industry Technology Co., Ltd |  |  | - |  |  |  |  |  |  |  | - |  |  |  |  |
|  | $ | 638,394 |  |  |  |  |  |  | $ | 645,580 |  |  |  |  |
(a) Investments in Guangxi Guiwu CBAK New Energy Technology Co., Ltd
Balance as of January 1, 2023 |  | $ | 289,473 |
Loss from investment |  |  | (27,428 | )
Foreign exchange adjustment |  |  | (7,570 | )
Balance as of December 31, 2023 |  |  | 254,475 |
Proceeds from disposal of investment |  |  | (278,064 | )
Profit from disposal |  |  | 26,967 |
Foreign exchange adjustment |  |  | (3,378 | )
Balance as of September 30, 2024 |  | $ | - |
In August 2022, Nanjing CBAK, along with two unrelated third parties of the Company, Guangxi Guiwu Recycle Resources Company Limited (“Guangxi Guiwu”) and Mr. Weidong Xu, an unrelated third party entered into an investment agreement to jointly set up a new company - Guangxi Guiwu CBAK New Energy Technology Co., Ltd (“Guangxi Guiwu CBAK”) in which each party holding 20%, 60% and 20% equity interests and voting rights, respectively. Guangxi Guiwu engages in the business of recycling power batteries. The Company applies the equity method of accounting to account for the equity investments in common stock, over which it has significant influence but does not own a majority equity interest or otherwise control. Pursuant to the Company’s articles of association and relevant PRC regulations, each party was required to contribute the capital on or before December 31, 2023. On April 19, 2024, NJ CABK entered into an equity transfer agreement with Chilwee Group Co., Ltd to disposal its equity interest in Guangxi Guiwu at consideration of RMB2 million (approximately $0.3 million). NJ CBAK recorded a gain on disposal of $26,967 for the nine months ended September 30, 2024. (b) Investments in Zhejiang Shengyang Renewable Resources Technology Co., Ltd.
Balance as of January 1, 2023 |  | $ | - |
Investments made |  |  | 4,044,175 |
Impairment loss |  |  | (2,366,080 | )
Foreign exchange adjustment |  |  | (5,959 | )
Balance as of December 31, 2023 |  |  | 1,672,136 |
Loss from investment |  |  | - |
Foreign exchange adjustment |  |  | 18,821 |
Balance as of September 30, 2024 |  | $ | 1,690,957 |
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”). Hitrans shall pay the Initial Acquisition price in two (2) installments as follows: (i) 50% of the price due within five business days following the execution of the Equity Transfer Contract and satisfaction of other conditions precedent set forth in the same; and (ii) the remaining 50% of the price due within five business days following Mr. Xu successful transfer to Hitrans of the 26% equity interest in Zhejiang Shengyang. Within fifteen business days after Hitrans has paid 50% of the price, or RMB14.3 million, the parties shall complete the registration of equity change with the local governmental authorities. Zhejiang Shengyang is a material supplier of Hitrans since June 2020. On November 6, 2023, Hitrans completed the registration of 26% equity interest of Zhejiang Shengyang. The Company recorded an impairment loss of $2.4 million (RMB16.7 million) from the investment to Zhejinag Shengyang for the year ended December 31, 2023. No income or loss was shared from the investment to Zhejiang Shengyang for the three and nine months ended September 30, 2024. And within three months following the Initial Acquisition, Mr. Xu, an related third party shall transfer an additional 44% equity interest in Zhejiang Shengyang to Hitrans at the same price per share as that of the Initial Acquisition (the “Follow-on Acquisition”). The parties shall enter into another agreement to detail the terms of the Follow-on Acquisition. As of the date of this report, the Follow-on Acquisition was not completed. The management team of Hitrans is currently in negotiations with Mr. Xu regarding a potential postponement of the payment and equity transfer. Investments in non-marketable equity
|  | December 31, 2023 |  |  | September 30, 2024 |
Cost |  | $ | 1,268,124 |  |  | $ | 1,282,398 |
Impairment |  |  | (629,730 | ) |  |  | (636,818 | )
Carrying amount |  | $ | 638,394 |  |  | $ | 645,580 |
On April 21, 2021, CBAK Power, along with Shenzhen BAK Power Battery Co., Ltd (BAK Shenzhen), Shenzhen Asian Plastics Technology Co., Ltd (SZ Asian Plastics) and Xiaoxia Liu (collectively the “Investors”), entered into an investment agreement with Junxiu Li, Hunan Xintao New Energy Technology Partnership, Xingyu Zhu, and Jiangsu Saideli Pharmaceutical Machinery Manufacturing Co., Ltd for an investment in Hunan DJY Technology Co., Ltd (“DJY”), a privately held company. CBAK Power has paid $1.40 million (RMB9,000,000) to acquire 9.74% of the equity interests of DJY. CBAK Power along with other three new investors have appointed one director on behalf of the Investors to the Board of Directors of DJY. DJY is unrelated third party of the Company engaging in in research and development, production and sales of products and services to lithium battery positive cathode materials producers, including the raw materials, fine ceramics, equipment and industrial engineering. On April 2023, DJY board declared dividend of $0.8 million (approximately RMB6 million). The dividend were distributed in May 2023 and based on the paid up capital of each shareholders, the dividend income shared by CBAK Power was $84K (approximately RMB0.6 million) which was included in other income (expense) for the three and nine months ended September 30, 2023. No dividend was declared in 2024. On November 28, 2022, Nanjing CBAK along with Shenzhen Education for Industry Investment Co., Ltd. and Wenyuan Liu, an individual investor, set up Nanjing CBAK Education For Industry Technology Co., Ltd (“CBAK Education”) with a registered capital of RMB5 million (approximately $0.7 million), in which each party holding 10%, 60% and 30% equity interests of CBAK Education, respectively. The investment is for training skillful workforce for Nanjing CBAK. CBAK Education commenced its operation in 2023, nil capital contribution was made by Nanjing CBAK as of the report date. Non-marketable equity securities are investments in privately held companies without readily determinable market value. The Company measures investments in non-marketable equity securities without a readily determinable fair value using a measurement alternative that measures these securities at the cost method minus impairment, if any, plus or minus changes resulting from observable price changes on a non-recurring basis. The fair value of non-marketable equity securities that have been remeasured due to impairment are classified within Level 3. The Company adjusts the carrying value of non-marketable equity securities which have been remeasured during the period and recognize resulting gains or losses as a component of other operating income (expense), net. The Company recognized nil impairment loss for the three and nine months period ended September 30, 2023 and 2024.

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