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RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended
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Dec. 31, 2021
RELATED PARTY TRANSACTIONS [Abstract] |
Related Party Transactions and Balances | The table below sets forth the major related parties and their relationships with the Company:
Name of related parties: |  | Relationship with the Company
Mr. Peter Wang |  | Chairman, Chief Executive Officer, and principal shareholder of the Company
Mr. Yeung Heung Yeung |  | A principal shareholder of the Company, director of CAG Cayman and former director of CEG
Ms. Yan Yinjing |  | Immediate family of Mr. David Ming He, the former acting Chief Financial Officer of Cenntro until November 2020
Mr. Zhong Wei |  | Chief Technology Officer of the Company
Ms. Xu Cheng |  | Immediate family of Mr. Chris Xiongjian Chen, former Chief Operating Officer of CAG Cayman
CAG Cayman |  | Mr. Peter Wang is a principal shareholder
Devirra Corporation Limited and its subsidiaries (Collectively referred to the “Devirra Group”) |  | Entities controlled by CAG Cayman
Cenntro Holding Limited |  | Ultimately controlled by Mr. Peter Wang
Zhejiang Zhongchai Machinery Co., Ltd (“Zhejiang Zhongchai”) |  | Ultimately controlled by Mr. Peter Wang
Zhejiang RAP |  | An entity significantly influenced by Hangzhou Ronda Tech Co., Limited
Jiangsu Rongyuan |  | An entity significantly influenced by Hangzhou Ronda Tech Co., Limited
Hangzhou Hezhe Energy Technology Co., Ltd |  | An entity significantly influenced by Hangzhou Ronda Tech Co., Limited
Zhuhai Hengzhong Industrial Investment Fund (Limited Partner) (“Zhuhai Hengzhong”) |  | Mr. Peter Wang served as General Partner
Shenzhen Yuanzheng Investment Development Co. Ltd (“Shenzhen Yuanzheng“) |  | Controlled by Mr. Yeung Heung Yeung
Bendon Limited |  | Controlled by Mr. Justin Davis-Rice, a director of CEGL
Shanghai Hengyu Enterprise Management Consulting Co., Ltd (“Shanghai Hengyu”) |  | Ultimately controlled by Mr. Peter Wang
Related party transactions During the years ended December 31, 2021, 2020 and 2019, the Company had the following material related party transactions.
|  | For the Years Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Interest income from a related party |  |  |  |  |  |  |  |  |
Zhejiang RAP |  | $ | 23,114 |  |  | $ | 69,523 |  |  | $ | 53,093 |
Purchase of raw materials from related parties |  |  |  |  |  |  |  |  |  |  |
Devirra Group |  |  | - |  |  |  | - |  |  |  | 1,002,086 |
Zhejiang Zhongchai |  |  | - |  |  |  | - |  |  |  | 393,277 |
Jiangsu Rongyuan |  |  | 24,799 |  |  |  | - |  |  |  | 560,120 |
Hangzhou Hezhe Energy Technology Co., Ltd |  |  | 1,219,621 |  |  |  | - |  |  | - |
Consulting service provided by a related party |  |  |  |  |  |  |  |  |  |  |
Shanghai Hengyu |  |  | 29,919 |  |  |  | 107,905 |  |  |  | 121,596 |
Interest expense on loans provided by related parties |  |  |  |  |  |  |  |  |  |  |
Mr. Yeung Heung Yeung |  |  | 132,000 |  |  |  | 96,559 |  |  |  | - |
Mr. Zhong Wei |  |  | 6,039 |  |  |  | 109,726 |  |  |  | 71,019 |
Others |  |  | 40,005 |  |  |  | 72,483 |  |  |  | 52,466 |
Reclassification of loan payable from due to a related party to other current liabilities |  |  |  |  |  |  |  |  |  |  |
Yan Yinjing(1) |  |  | - |  |  |  | 143,153 |  |  |  | - |
(1) | Yan Yinjing is the immediate family of Mr. David Ming He, former acting Chief Financial Officer of Cenntro until November 2020. Therefore, the loan payable to Ms. Yan Yinjing has been reclassified to accrued expense and other current liabilities as of December 31, 2020.
Amounts due from Related Parties – current The following table presents amounts due from related parties as of December 31, 2021 and 2020.
|  | As of December 31, |
|  | 2021 |  |  | 2020 |
Hangzhou Hezhe(1) |  |  | 817,640 |  |  |  | - |
Zhejiang Zhongchai (2) |  |  | 412,797 |  |  |  | 464,066 |
Shanghai Hengyu |  |  | 2,197 |  |  |  | - |
Jiangsu Rongyuan(3) |  |  | 166,911 |  |  |  | 241,046 |
Devirra Group(4) |  |  | - |  |  | $ | 637,078 |
Total |  |  | 1,399,545 |  |  |  | 1,342,190 |
Less: provision for receivable from a related party (2) |  |  | (166,911 | ) |  |  | (241,046 | )
Amounts due from related parties, net |  | $ | 1,232,634 |  |  | $ | 1,101,144 |
| (1) | The balance mainly represents the prepayment for raw material to the related party.
| (2) | The balances mainly represent accounts receivable relating to the sale of industrial equipment of $340,770 and advances to Zhejiang Zhongchai for daily operational purposes of $72,027 as of December 31, 2021.
| (3) | The balances mainly represent advances to related parties for daily operational purposes. The business conditions of Jiangsu Rongyuan deteriorated and, as a result, the Company recognized provision for receivables of nil, $227,807 and $206,187 for the years ended December 31, 2021, 2020 and 2019, respectively. For the year ended December 31, 2020, the Company wrote off the balance of provision that it recognized in 2019. The Company reversed the provision of $78,931 for the year ended December 31, 2021 due to the repayment from the related party.
| (4) | The balance represented the advances to related parties for daily operational purposes, which was due on demand. For the year ended December 31, 2021, $210,297 was collected and remaining $426,781 was forgiven.
Amounts due from Related Parties – non-current
|  | As of December 31, |
|  | 2021 |  |  | 2020 |
Bendon Limited (1) |  | $ | 4,834,973 |  |  | $ | - |
Total |  |  | 4,834,973 |  |  |  | - |
Less: provision for receivable from a related party |  |  | - |  |  |  | - |
Amounts due from related parties -noncurrent |  | $ | 4,834,973 |  |  | $ | - |
| (1) | The balance represents a 5-year loan in the aggregate principal amount of $4,787,300 (New Zealand Dollar 7,000,000) to the related party, bearing interest of 2.5% annually and maturing in August 2026.
Amounts due to Related Parties The following table presents amounts due to related parties as of December 31, 2021 and 2020.
|  | As of December 31, |
|  | 2021 |  |  | 2020 |
CAG Cayman (1) |  | $ | 13,945,823 |  |  | $ | 226,549 |
Mr. Yeung Heung Yeung (2) |  |  | 1,328,559 |  |  |  | 1,196,559 |
Shenzhen Yuanzheng (2) |  |  | 416,509 |  |  |  | 370,906 |
Zhejiang RAP (3) |  |  | 40,034 |  |  |  | 215,054 |
Jiangsu Rongyuan (4) |  |  | 25,103 |  |  |  | - |
Mr. Zhong Wei (2) |  |  | - |  |  |  | 923,751 |
Cenntro Holding Limited (5) |  |  | - |  |  |  | 1,951 |
Mr. Peter Wang (2) |  |  | - |  |  |  | 81,496 |
Zhuhai Hengzhong (5) |  |  | - |  |  |  | 210,774 |
Ms. Xu Cheng (2) |  |  | - |  |  |  | 21,737 |
Total |  | $ | 15,756,028 |  |  | $ | 3,248,777 |
(1) | CAG Cayman was the parent company of Cenntro before the closing of the Combination. The balance represented (i) operating funds from CAG Cayman with no interest of $15,823 and (ii) a reduction of capital from Cenntro by CAG Cayman of $13,930,000 prior to the closing of the Combination. The payment by Cenntro of $13,930,000 was made to CAG Cayman in February 2022.
(2) | The balance represented the interest-bearing loan provided by related parties to the Company. The weighted average annual interest rates for the loans were 12% and 17.31% as of December 31, 2021 and 2020, respectively. The balance is due on demand.
(3) | As of December 31, 2021, the balances represented the net balance of equity investment payable of $373,631 and interest-bearing loan and interest receivable from Zhejiang RAP of $333,597, which is due on demand.
(4) | The balance represented the payable for purchase of raw material from this related party.
(5) | The balance represented the advance funds from related parties for daily operational purposes. The funds are interests-free, and repayable upon demand.

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- Definition Tabular disclosure of related party transactions. Examples of related party transactions include, but are not limited to, transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners and (d) affiliates. + References No definition available. + Details
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