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COMMITMENTS AND CONTIGENCIES (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
SCHEDULE OF MATURITIES OPERATING COMMITMENTS LEASE LIABILITIES

The total future minimum lease payments of property management fee and short-term lease under the non-cancellable operating lease with respect to the office as of December 31, 2025 are payable as follows:

   

   Lease Commitment 
Within 1 year   - 
2-5 years   176,981 
Total  $176,981 
SCHEDULE OF CURRENT LEGAL PROCEEDINGS

All the legal proceedings were recorded in the accounts of liabilities held for sale and losses from discontinued operations.

  

No.  Plaintiff  Defendant  Cause of Action 

Status on

December 31, 2025

  Recorded in Account Payable (USD) as of December 31, 2025  

Recorded in Accrued legal expenses

(USD) as of

December 31, 2025

   Status of Subsequent Updates to the Filing Date  Name of the Court
1  Wang Zhangang  Zibo, PRC, Ganzhou, PRC  Labor disputes  Case applying for preservation   -    4,004   No change  Zhangdian District Labor Dispute Arbitration Committee
2  Shenzhen Haiying Science & Technology Co., Ltd.  Huizhou, PRC, Ganzhou, PRC  Contractual Dispute  Case applying for preservation   38,599    6,834   No change  Shenzhen Futian District People’s Court
3  Suzhou Industrial Park Deyanfu Mechanical Equipment Co., Ltd.  Huizhou, PRC  Contractual Dispute  Case applying for preservation   -    1,144   No change  Suzhou Industrial Park People’s Court
4  Ganzhou Dari Mechanical and Electrical Equipment Co., Ltd.  Ganzhou, PRC  Contractual Dispute  Case applying for preservation   11,118    -   No change  Ganzhou Economic and Technological Development Zone People’s Court
5  Ganzhou Dari Mechanical and Electrical Equipment Co., Ltd.  Huizhou, PRC  Contractual Dispute  Case applying for preservation   3,281    5,587   No change  Jiangxi Province Ganzhou Economic and Technological Development Zone People’s Court
6  Shenzhen Kaifu Mechanical and Electrical Equipment Co., Ltd.  Ganzhou, PRC  Contractual Dispute  Case applying for preservation   20,592    1,416   No change  Longgang District People’s Court
7  Shenzhen Yuqiang New Materials Co., Ltd., Zhongshan Branch  Ganzhou, PRC  Contractual Dispute  Case applying for preservation   11,232    808   No change  Zhongshan City Second People’s Court
8  Deng Yongbo  Huizhou, PRC  Labor disputes  Case applying for preservation   11,680    23,116   No change  Huizhou Huicheng District Labor and Personnel Dispute Arbitration Committee
9  Shenzhen Kuayue Express Co., Ltd.  Yilon Energy, Huizhou, PRC  Contractual Dispute  Case applying for preservation   11,008    3,950   No change  Shenzhen Bao’an District People’s Court
10  Shenzhen Jintongda Machinery Co., Ltd.  Ganzhou, PRC  Contractual Dispute  Case applying for preservation   46,710    12,572   No change  Ganzhou Economic and Technological Development Zone People’s Court
11  Shenzhen Haizhuolian Mechanical and Electrical Equipment Co., Ltd., Ganzhou Branch  Ganzhou, PRC  Contractual Dispute  Judgment effected   -    5,720   No change  Ganzhou Economic and Technological Development Zone People’s Court
12  Shenzhen Fengshengyuan Technology Co., Ltd.  Huizhou, PRC  Contractual Dispute  Case applying for preservation   14,648    -   No change  Guangzhou Intermediate People’s Court
13  Shandong Chuangying Flooring Engineering Co., Ltd.  Zibo, PRC, Huizhou, PRC  Contractual Dispute  Case applying for preservation   1,715    1,137   No change  Zibo Zhangdian District People’s Court Fengshui Tribunal
14  Amphenol Automotive Connection Systems Changzhou Co., Ltd.  Huizhou, PRC  Contractual Dispute  Case applying for preservation   11,559    937   No change  Changzhou Xinbei District People’s Court
15  Lanzhou Electric Motor Co., Ltd. Companies(i)  Ganzhou, PRC  Contractual Dispute  Case applying for preservation   2,868,396    675,985   No change  Lanzhou New District People’s Court
16  Shenzhen Lingyueda Technology Co., Ltd.  Huizhou, PRC  Contractual Dispute  Case applying for preservation   14,550    660   No change  Shenzhen Guangming District People’s Court
17  Suzhou Qinglizi New Energy Technology Co., Ltd.  Ganzhou, PRC, Huizhou, PRC  Contractual Dispute  Case applying for preservation   10,084    884   No change  Taicang District People’s Court
18  Yutong Bus Co., Ltd.(ii)  Huizhou, PRC & Elong Power (Ganzhou)  Contractual Dispute  Case applying for preservation   -    449,466   No change  Zhengzhou Guancheng District People’s Court

 

 

No.  Plaintiff  Defendant  Cause of Action 

Status on

December 31, 2025

  Recorded in Account Payable (USD) as of December 31, 2025  

Recorded in Accrued legal expenses

(USD) as of

December 31, 2025

   Status of Subsequent Updates to the Filing Date  Name of the Court
19  Lanjun Hardware & Electrical Co., Ltd.  Huizhou, PRC  Contractual Dispute  Case applying for preservation   2,602    -   No change  Ganzhou Economic and Technological Development Zone People’s Court
20  Xianning Fengdan Public Transport Holding Co., Ltd.(iii)  Ganzhou, PRC, Huizhou, PRC  Contractual Dispute  Judgment effected   -    928,194   No change  Xianning Xianning District People’s Court
21  Ganzhou Gert Machinery Co., Ltd.  Ganzhou, PRC  Contractual Dispute  Case applying for preservation   5,054    483   No change  Ganzhou Economic and Technological Development Zone People’s Court
22  Connet (Changzhou) Intelligent Technology Co., Ltd.  Huizhou, PRC  Contractual Dispute  Case applying for preservation   -    -   No change  Ganzhou Economic and Technological Development Zone People’s Court
23  Xiamen Kinglong Travel Vehicle Co., Ltd., Lin Zhengbin, Tongcheng Zhilian (Shenzhen) Technology Co., Ltd.  Huizhou, PRC  Contractual Dispute  Case applying for preservation   -    40,039   No change  Shenzhen Intermediate People’s Court
24  Chery Wanda Guizhou Bus Co., Ltd.(iv)  Huizhou, PRC  Contractual Dispute  Case applying for preservation   -    825,065   No change  Guiyang Huaxi District People’s Court
25  Shenzhen Yanxiangda Technology Co., Ltd.  Huizhou, PRC  Contractual Dispute  Case applying for preservation   46,454    -   No change  Pingshan District Court, Shenzhen
26  Liu Yongjian  Ganzhou, PRC, Huizhou, PRC  Labor disputes  Case applying for preservation   408    3,522   No change  Ganzhou Economic and Technological Development Zone Labor Arbitration Committee
27  Connet (Changzhou) Intelligent Technology Co., Ltd.  Huizhou, PRC  Contractual Dispute  Case applying for preservation   4,886    223   No change  Ganzhou Economic and Technological Development Zone People’s Court
            Total amount:  $3,134,576    2,991,746       

 

The Company is subject to legal proceedings and regulatory actions in the ordinary course of business, such as disputes with customers and suppliers. As of this report date of the consolidated financial statements, the Company is ongoing with various lawsuits and the estimate aggregate amount related to such litigations are approximately $6.12 million (RMB42.8 million), which comprises the following: Amounts due to suppliers recorded in accounts payable totaling $3.13 million (RMB21.9 million); Accrued legal expenses recognized pursuant to court judgments amounting to $2.99 million (RMB20.9 million). For the years ended December 31, 2025, 2024 and 2023, all the legal proceedings were recorded in the accounts of liabilities held for sale and losses from discontinued operations.

 

i) In April 2024, a customer of our company filed a lawsuit against Ganzhou, PRC in Gansu Province, requesting the termination of their battery purchase contract and the return of 126 undelivered battery packs (valued at $3.2 million, RMB22.7 million). According to the court judgment obtained, Ganzhou, PRC is required to return the $3.2 million (RMB22.7 million) it has already received and pay liquidated damages. Based on this judgment, the company has assessed the relevant facts and legal obligations and recognized a provision of $0.6 million (RMB2.1 million).
   
ii)

In December 2024, a customer of the Company filed a lawsuit against Huizhou, PRC in Henan Province, seeking reimbursement of battery repair costs. According to the court judgment obtained, Huizhou, PRC is required to pay the customer $0.4 million (RMB3.1 million) for battery replacement and other related expenses. Based on this judgment, the Company has carefully assessed the relevant facts and legal obligations and has recognized a provision of $0.4 million (RMB3.1 million) in liabilities.

   
iii) In 2021, a user of the Company’s product filed a lawsuit in Xianning, Hubei Province against a Company’s customer (first defendant) and the Company (the second defendant). The Company accrued $0.9 million (RMB6.4 million) lawsuit compensation charge as of the date the consolidated financial statements are issued.
   
iv) In 2022, a customer of the Company filed a lawsuit against Huizhou, PRC and Ganzhou, PRC in Guizhou Province, seeking payment for the costs associated with replacing a vehicle’s power battery. According to the court judgment obtained, Huizhou, PRC and Ganzhou, PRC must jointly pay the customer a total of $0.8 million (RMB5.7 million) for the vehicle’s power battery replacement and related expenses. Based on this effective judgment and management’s assessment of the relevant facts and legal obligations, the Company has recognized a provision of RMB5.7 million in its financial statements.