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Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Information [Abstract]  
Segment Information
28. 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 three and nine months ended September 30 2024 and 2025, 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 (expenses) and net income (loss). Net revenue, cost of revenues, operating expenses, operating income, finance income (expense), other income (expenses) and net income (loss) by segment for the three and nine months ended September 30, 2024 and 2025 were as follows:

 

For the three months ended September 30, 2024  CBAT   Hitrans   Corporate
unallocated
(note)		   Consolidated 
Net revenues  $33,461,793   $11,166,448   $
-
   $44,628,241 
Cost of revenues   (25,796,784)   (11,876,900)   
-
    (37,673,684)
Gross profit (loss)   7,665,009    (710,452)   
-
    6,954,557 
Total operating expenses   (5,778,378)   (1,887,142)   (116,910)   (7,782,430)
Operating income (loss)   1,886,631    (2,597,594)   (116,910)   (827,873)
Finance income (expense), net   28,366    (68,718)   2    (40,350)
Other (expenses) income, net   459,628    62,343    
-
    521,971 
Income tax expenses   (339,287)   
-
    
-
    (339,287)
Net income (loss)   2,035,338    (2,603,969)   (116,908)   (685,539)
For the three months ended September 30, 2025  CBAT   Hitrans   Corporate
unallocated
(note)		   Consolidated 
Net revenues  $33,708,106   $27,215,454   $
-
   $60,923,560 
Cost of revenues   (29,292,821)   (26,755,016)   
-
    (56,047,837)
Gross profit (loss)   4,415,285    460,438    
-
    4,875,723 
Total operating expenses   (6,166,204)   (2,408,928)   (334,264)   (8,909,396)
Operating loss   (1,750,919)   (1,948,490)   (334,264)   (4,033,673)
Finance expense, net   (3,280)   (216,100)   (388)   (219,768)
Other (expenses) income, net   6,102,229    49,907    
-
    6,152,136 
Income tax credit   183,853    
-
    
-
    183,853 
Net income (loss)   4,531,883    (2,114,683)   (334,652)   2,082,548 

 

For the nine months ended September 30, 2024  CBAT   Hitrans   Corporate
unallocated
(note)		   Consolidated 
Net revenues  $113,897,786   $37,345,932   $
-
   $151,243,718 
Cost of revenues   (74,856,962)   (37,923,126)   
-
    (112,780,088)
Gross profit   39,040,824    (577,194)   
-
    38,463,630 
Total operating expenses   (16,541,643)   (5,001,025)   (1,538,372)   (23,081,040)
Operating income (loss)   22,499,181    (5,578,219)   (1,538,372)   15,382,590 
Finance income (expenses), net   659,542    (1,397)   (111)   658,034 
Other income, net   640,485    417,811    
-
    1,058,296 
Income tax expenses   (2,188,800)   
-
    
-
    (2,188,800)
Net income (loss)   21,610,408    (5,161,805)   (1,538,483)   14,910,120 

  

For the nine months ended September 30, 2025  CBAT   Hitrans   Corporate
unallocated
(note)		   Consolidated 
Net revenues  $75,161,581   $61,225,213   $
-
   $136,386,794 
Cost of revenues   (62,614,561)   (59,632,367)   
-
    (122,246,928)
Gross profit   12,547,020    1,592,846    
-
    14,139,866 
Total operating expenses   (16,422,911)   (6,948,143)   (1,195,080)   (24,566,134)
Operating income (loss)   (3,875,891)   (5,355,297)   (1,195,080)   (10,426,268)
Finance income (expenses), net   216,375    (553,159)   (1,167)   (337,951)
Other income, net   6,273,073    978,461    
-
    7,251,534 
Income tax credit   183,853    
-
    
-
    183,853 
Net income (loss)   2,797,410    (4,929,995)   (1,196,247)   (3,328,832)
                     
As of September 30, 2025                    
Identifiable long-lived assets   139,597,000    47,973,058    
-
    187,570,058 
Total assets   250,358,227    113,394,735    110,102    363,863,064 

 

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:

 

   Three months ended
September 30,		   Nine months ended
September 30,		 
   2024   2025   2024   2025 
High power lithium batteries used in:                
Electric vehicles  $333,216   $57,283   $1,012,655   $736,929 
Light electric vehicles   4,913,644    18,172,629    8,249,437    23,444,127 
Residential energy supply & uninterruptable supplies   28,214,933    15,478,194    104,635,694    50,980,525 
    33,461,793    33,708,106    113,897,786    75,161,581 
                     
Materials used in manufacturing of lithium batteries                    
Cathode   9,342,507    26,055,220    26,776,945    54,609,286 
Precursor   1,823,941    1,160,234    10,568,987    6,615,927 
    11,166,448    27,215,454    37,345,932    61,225,213 
Total consolidated revenue  $44,628,241   $60,923,560   $151,243,718   $136,386,794 

 

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:

 

   Three months ended
September 30,		   Nine months ended
September 30,		 
   2024   2025   2024   2025 
Mainland China  $27,712,677   $40,247,942   $75,886,271   $104,233,354 
Europe   11,779,738    312,578    65,883,182    5,080,734 
India   4,688,740    6,286,051    6,754,435    10,488,647 
Africa   
-
    10,439,863    
-
    10,440,955 
Others   447,086    3,637,126    2,719,830    6,143,104 
Total  $44,628,241   $60,923,560   $151,243,718   $136,386,794 

 

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