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Segment Information
 12 Months Ended
Dec. 31, 2024
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. 

 

The Company determined that for the year ended December 31, 2023 and 2024, 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 (loss), 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, 2023 and 2024 were as follows:

 

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)

  

For the year ended December 31, 2024  CBAT   Hitrans   Corporate
unallocated
(note)		   Consolidated 
Net revenues  $136,588,803   $40,025,806   $-   $176,614,609 
Cost of revenues   (93,535,812)   (41,303,552)   -    (134,839,364)
Gross profit (loss)   43,052,991    (1,277,746)   -    41,775,245 
Total operating expenses   (22,848,626)   (8,539,324)   (1,599,146)   (32,987,096)
Operating income (loss)   20,204,365    (9,817,070)   (1,599,146)   8,788,149 
Finance income (expenses), net   1,275,246    7,954    (110)   1,283,090 
Other income (expenses), net   (490,229)   1,562,753    -    1,072,524 
Income tax expenses   (1,558,613)   -    -    (1,558,613)
Net income (loss)   19,430,769    (8,246,363)   (1,599,256)   9,585,150 
                     
As of December 31, 2024                    
Identifiable long-lived assets   98,429,723    44,280,749    -    142,710,472 
Total assets   211,880,435    90,295,480    42,229    302,218,144 

 

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 high-power cylindrical lithium battery cell and battery packs. The Company’s battery products are sold to end users in electric vehicles, light electric vehicles and energy storage sectors. 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,
2023		   Year ended
December 31,
2024		 
High power lithium batteries used in:          
Electric vehicles  $2,883,385   $1,681,651 
Light electric vehicles   5,607,435    10,319,176 
Residential energy supply & uninterruptable supplies   124,502,698    124,587,976 
    132,993,518    136,588,803 
           
Materials used in manufacturing of lithium batteries          
Cathode   39,845,626    34,228,998 
Precursor   31,599,221    5,796,808 
    71,444,847    40,025,806 
Total consolidated revenue  $204,438,365   $176,614,609 

  

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,
2023		   Year ended
December 31,
2024		 
Mainland China  $119,307,085   $98,925,752 
Europe   78,575,290    65,746,989 
Others   6,555,990    11,941,868 
Total  $204,438,365   $176,614,609 

 

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