v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 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 months ended March 31, 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 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 three months ended March 31, 2024 and 2025 were as follows:

 

For the three months ended March 31, 2024  CBAT   Hitrans   Corporate
unallocated
(note)		   Consolidated 
Net revenues  $44,837,869   $13,984,563   $
-
   $58,822,432 
Cost of revenues   (26,379,347)   (13,662,038)   
-
    (40,041,385)
Gross profit   18,458,522    322,525    
-
    18,781,047 
Total operating expenses   (5,979,471)   (1,422,456)   (1,116,137)   (8,518,064)
Operating income (loss)   12,479,051    (1,099,931)   (1,116,137)   10,262,983 
Finance income (expenses), net   11,721    (1,997)   (61)   9,663 
Other income, net   240,443    108,171    
-
    348,614 
Income tax expenses   (1,048,786)   
-
    
-
    (1,048,786)
Net income (loss)   11,682,429    (993,757)   (1,116,198)   9,572,474 

 

For the three months ended March 31, 2025  CBAT   Hitrans   Corporate
unallocated
(note)		   Consolidated 
Net revenues  $20,363,338   $14,575,563   $
-
   $34,938,901 
Cost of revenues   (15,643,236)   (14,493,931)   
-
    (30,137,167)
Gross profit   4,720,102    81,632    
-
    4,801,734 
Total operating expenses   (4,829,636)   (2,200,311)   (635,806)   
(7, 665,753
)
Operating loss   (109,534)   (2,118,679)   (635,806)   (2,864,019)
Finance income (expenses), net   223,119    (178,000)   1    45,120 
Other income, net   223,276    544,641    
-
    767,917 
Income tax expenses   
-
    
-
    
-
    
-
 
Net income (loss)   336,861    (1,752,038)   (635,805)   (2,050,982)
                     
As of March 31, 2025                    
Identifiable long-lived assets   103,679,699    46,363,192    
-
    150,042,891 
Total assets   208,847,927    102,574,484    42,230    311,464,641 

 

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:

 

   For the three months ended
March 31,		 
   2024   2025 
High power lithium batteries used in:        
Electric vehicles  $480,181   $537,507 
Light electric vehicles   1,510,292    2,844,874 
Residential energy supply & uninterruptable supplies   42,847,396    16,980,957 
    44,837,869    20,363,338 
           
Materials used in manufacturing of lithium batteries          
Cathode   9,186,193    11,261,199 
Precursor   4,798,370    3,314,364 
    13,984,563    14,575,563 
Total revenue  $58,822,432   $34,938,901 

  

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:

  

   For the three months ended
March 31,		 
   2024   2025 
Mainland China  $23,690,763   $32,117,416 
Europe   32,893,914    75,246 
Others   2,237,755    2,746,239 
Total  $58,822,432   $34,938,901 

 

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