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CBAK Energy Technology, Inc. (Parent Company)

12 Months Ended

Dec. 31, 2024

CBAK Energy Technology, Inc. (Parent Company) [Abstarct]

CBAK Energy Technology, Inc. (Parent Company)

31.

CBAK Energy Technology, Inc. (Parent Company)

Under PRC regulations, subsidiaries in PRC (“the PRC subsidiaries”) may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC GAAP. In addition, the PRC subsidiaries are required to set aside at least 10% of their after tax net profits each year, if any, to fund the statutory general reserve until the balance of the reserves reaches 50% of their registered capital. The statutory general reserves are not distributable in the form of cash dividends to the Company and can be used to make up cumulative prior year losses, if any, and may be converted into share capital by the issue of new shares to shareholders in proportion to their existing shareholdings, or by increasing the par value of the shares currently held by them, provided that the reserve balance after such issue is not less than 25% of the registered capital. As of December 31, 2023 and 2024, additional transfers of $219,322,375 and $215,827,099 were required before the statutory general reserve reached 50% of the registered capital of the PRC subsidiaries. As of December 31, 2023 and 2024 there was $1,230,511 appropriation from retained earnings and set aside for statutory general reserves by the PRC subsidiaries.

Schedule I of Article 504 of Regulation SX requires the condensed financial information of the registrant (Parent Company) to be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of this test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party (i.e., lender, regulatory agency, foreign government, etc.).

		Year ended December 31, 2023				Year ended December 31, 2024
REVENUE, net		$	-			$	-

OPERATING EXPENSES:
Salaries and consulting expenses			1,386,099				522,236
General and administrative			794,262				1,076,909

Total operating expenses			(2,180,361	)			(1,599,145	)

LOSS FROM OPERATIONS			(2,180,361	)			(1,599,145	)

Changes in fair value of warrants liability			136,000				-

LOSS ATTRIBUTABLE TO PARENT COMPANY			(2,044,361	)			(1,599,145	)

EQUITY IN (LOSS) INCOME OF SUBSIDIARIES			(404,696	)			13,389,177

NET (LOSS) INCOME ATTRIBUTABLE TO SHAREHOLDERS		$	(2,449,057	)		$	11,790,032

		December 31, 2023				December 31, 2024
ASSETS

Interests in subsidiaries		$	114,257,553			$	123,176,663
Cash and cash equivalents			26,922				30,956
Total assets		$	114,284,475			$	123,207,619

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accrued expenses and other payables			1,586,745				1,534,576
Total current liabilities			1,586,745				1,534,576

SHAREHOLDERS’ EQUITY			112,697,730				121,673,043
Total liabilities and shareholders’ equity		$	114,284,475			$	123,207,619

		Year ended December 31, 2023				Year ended December 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income		$	(2,449,057	)		$	11,790,032
Adjustments to reconcile net loss to net cash used in operating activities:
Equity in loss (income) of subsidiaries			404,696				(13,389,177	)
Share based compensation			1,225,747				376,648
Changes in fair value of warrants liability			(136,000	)			-
Change in operating assets and liabilities
Accrued expenses and other payable			(21,357	)			(52,169	)
Net cash used in operating activities			(975,971	)			(1,274,666	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in interest in subsidiaries			884,334				1,278,700
Net cash used in investing activities			884,334				1,278,700

CHANGE IN CASH AND CASH EQUIVALENTS			(91,637	)			4,034

CASH AND CASH EQUIVALENTS, beginning of year			118,559				26,922

CASH AND CASH EQUIVALENTS, end of year		$	26,922			$	30,956

The condensed parent company financial statements have been prepared using the equity method to account for its subsidiaries. Refer to the consolidated financial statements and notes presented above for additional information and disclosures with respect to these financial statements.