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Balances and Transactions with Related Parties
 12 Months Ended
Dec. 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 years 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
Zhengzhou BAK Electronics Co., Ltd   Note e
Zhengzhou BAK New Energy Vehicle Co., Ltd   Note f

 

(a)Mr. Xiangqian Li, the Company’s former CEO, is a director of Zhengzhou BAK Battery Co., Ltd. Zhengzhou BAK Battery Co., Ltd is a wholly owned subsidiary of BAK SZ.

 

(b)Mr. Xiangqian Li, the Company’s former CEO, is a director of Shenzhen BAK Battery Co., Ltd and Shenzhen BAK Power Battery Co., Ltd. On September 27, 2023, Nanjing CBAK New Energy Technology Co., Ltd. (“Nanjing CBAK”) entered into an Equity Transfer Agreement (the “Equity Transfer Agreement”) with Shenzhen BAK Battery Co., Ltd. (“SZ BAK”), under which SZ BAK shall sell a five percent (5%) equity interest in Shenzhen BAK Power Battery Co., Ltd. (“BAK SZ”) to Nanjing CBAK for a purchase price of RMB260 million (approximately $35.7 million) (note 14).

 

(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.

 

(e)Mr. Xiangqian Li, the Company’s former CEO, is a director of BAK SZ, which has 95% equity interests in Zhengzhou BAK Electronics Co., Ltd.

 

(f) Shenzhen BAK Battery Co., Ltd was the former shareholder of Zhengzhou BAK New Energy Vehicle Co., Ltd to April 10, 2023.

Related party transactions

 

The Company entered into the following significant related party transactions:

 

   For the
year ended
December 31,
2023		   For the
year ended
December 31,
2024		 
Purchase of batteries from Zhengzhou BAK Battery Co., Ltd  $10,999,732   $7,049,867 
Purchase of batteries from Fuzhou BAK Battery Co., Ltd   -    69,133 
Purchase of materials from Zhejiang Shengyang   12,725,193    4,352,197 
Purchase of materials from Zhejiang Shengyang in relation to non-operating agency-based service   -    1,794,581 
Sales of cathode raw materials to Zhengzhou BAK Battery Co., Ltd   27,872,002    18,661,537 
Sales of cathode raw materials to BAK SZ   66,560    31,783 
Sales of cathode raw materials to Zhengzhou BAK Electronics Co., Ltd   590,834    388,430 
Sales of batteries to Fuzhou BAK Battery Co., Ltd   105,010    76,090 
Sales of batteries to Zhengzhou BAK Battery Co., Ltd   -    12,232 

 

Related party balances

 

Apart from the above, the Company recorded the following significant related party balances as of December 31, 2023 and 2024:

 

Receivables from former subsidiary

 

   December 31,
2023		   December 31,
2024		 
Receivables from BAK SZ  $74,946   $12,399 

 

Balance as of December 31, 2023 and 2024 represented trade receivable for sales of cathode raw materials to BAK SZ.

 

Other balances due from/ (to) related parties

 

   December 31,
2023		   December 31,
2024		 
Trade receivable, net – Zhengzhou BAK Battery Co., Ltd (i)  $12,441,715   $5,970,184 
Trade receivable, net – Zhengzhou BAK Electronics Co., Ltd. (ii)  $226,143   $135,012 
Bills receivable – Issued by Zhengzhou BAK Battery Co., Ltd (iii)  $-   $459,905 
Prepayment to supplier – Zhengzhou BAK Battery Co., Ltd (iv)  $-   $3,738,228 
Prepayment to supplier – Zhengzhou BAK New Energy Vehicle Co., Ltd  (v)  $
   
   $205,496 
Trade payable, net – Zhengzhou BAK Battery Co., Ltd (vi)  $803,685   $66,084 
Trade payable, net – Zhejiang Shengyang (vii)  $3,489,324   $1,486,765 
Payable for non-operating agency-based service – Zhejiang Shengyang (viii)  $-   $1,338,794 
Deposit paid for acquisition of long-term investments – BAK SZ (note 14)  $7,101,492   $15,864,318 
Dividend payable to non-controlling interest of Hitrans (note 17)  $1,256,745   $1,221,915 

 

(i) Representing trade receivable 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 $4.5 million to the Company.
   
(ii) Representing trade receivables from sales of cathode raw materials to Zhengzhou BAK Electronics Co., Ltd. Up to the date of this report, Zhengzhou BAK Electronics Co., Ltd repaid $107,064 to the Company.

 

(iii) Representing bills receivable issued by Zhengzhou BAK Battery Co., Ltd.as of December 31, 2024 were pledged to bank as security for issuance of bills payable (note 16).
(iv) Representing the prepayments to Zhengzhou BAK Battery Co., Ltd for purchase of batteries. The balance was not utilized up to the date of this report.

 

(v) Representing the prepayments for purchase of raw materials for manufacturing. The contract was cancelled and up to the date of this report, the prepayment was refunded to the Company.

 

(vi) Representing trade payables on purchase of batteries. Up to the date of this report, the Company settled nil to Zhengzhou BAK Battery Co., Ltd.

 

(vii) Representing trade payables on purchase of materials for manufacturing from Zhejiang Shengyang. Up to the date of this report, the Company settled in full to Zhejiang Shengyang.

 

(viii) Representing payables on purchase of materials from Zhejiang Shengyang in relation to non-operating agency-based service. Up to the date of this report, the Company settled $0.7 million to Zhejiang Shengyang.

 

Payables to a former subsidiary

 

Payables to a former subsidiary as of December 31, 2023 and 2024 consisted of the following:

 

   December 31,
   December 31,
 
   2023   2024 
Payables to Shenzhen BAK Power Battery Co., Ltd  $(411,111)  $(419,849)

 

Balance as of December 31, 2023 and 2024 consisted of payables for purchase of inventories from Shenzhen BAK Power Battery Co., Ltd.