| Balances and Transactions With Related Parties |
| 16. |
Balances and Transactions with Related Parties |
The principal related parties with which the
Company had transactions during the years presented are as follows:
| Name of Entity or Individual | | Relationship with the Company | | New Era Group Zhejiang New Energy Materials Co., Ltd. | | Shareholder of Company’s subsidiary | | Shenzhen Bak New Material Technology Co., Ltd | | Note a | | Zhengzhou BAK Battery Co., Ltd (“Zhenghzhou BAK”) | | Note b, d | | Shenzhen BAK Battery Co., Ltd (“SZ BAK”) | | Former subsidiary and refer to Note c, d | | Shenzhen BAK Power Battery Co., Ltd (“BAK SZ”) | | Former subsidiary and refer to Note c, d | | Zhejiang Shengyang Renewable Resources Technology Co., Ltd. (“Zhejiang Shengyang”) | | Note f | | Fuzhou BAK Battery Co., Ltd (“Fuzhou Bak”) | | Note e, g | | Zhengzhou BAK Electronics Co., Ltd | | Note e, h | | Zhengzhou BAK New Energy Vehicle Co., Ltd | | Note i | | Shenzhen BAK Medical Technology Co., Ltd (“SZ BAK Medical”) | | Note e, j |
| (a) | Ms. Xiuzhu Li, one of the major shareholders of CBAK effective from December 3, 2025, is the major shareholder of Shenzhen BAK New Material Technology Co., Ltd, holding 46.32% equity interest. |
| (b) | Mr. Xiangqian Li, the Company’s former CEO, is a director of Zhengzhou BAK and Zhengzhou BAK is a wholly owned subsidiary of BAK SZ. |
| (c) | Mr. Xiangqian Li, the Company’s former CEO, is a director of SZ BAK and BAK SZ. SZ BAK and BAK SZ were the former subsidiaries of the Company. SZ BAK has 29.14% equity interests in BAK SZ. Mr. Xiangqian Li is the major shareholder of SZ BAK, he owned 51% equity interest in SZ BAK. |
| (d) | An immediate family member of Ms. Xiuzhu Li has major interests and
is the director of these entities. |
| (e) | An immediate family member of Ms. Xiuzhu Li has major interests in serval entities set forth in the above table. |
| (f) | Hitrans has 26% equity interest in Zhejiang Shengyang (note 10). |
| (g) | Zhengzhou BAK has 51% equity interest in Fuzhou BAK. |
| (h) | BAK SZ has 100% equity interests in Zhengzhou BAK Electronics Co., Ltd. |
| (j) | SZ BAK was the former shareholder of Zhengzhou BAK New Energy Vehicle Co., Ltd to April 10, 2023. | | | | | (j) | SZ BAK Medical is a wholly owned subsidiary of SZ BAK. | Related party transactions
The Company entered into the following significant related party transactions:
| | |
For the three months ended March 31, | |
| | |
2025 | | |
2026 | |
| Purchase of batteries from Zhengzhou BAK | |
$ | 4,132 | | |
$ | 5,292,077 | |
| Purchase (purchase return) of batteries from Fuzhou BAK | |
| 3,369 | | |
| (152,143 | ) |
| Purchase of materials from Zhejiang Shengyang | |
| 2,055,686 | | |
| 538,894 | |
| Sub-contracting services provided by Fuzhou BAK | |
| - | | |
| 432,762 | |
| Purchase of materials from SZ BAK Medical | |
| - | | |
| 310,813 | |
| Sales of cathode raw materials to Zhengzhou BAK | |
| 1,150,068 | | |
| 8,139,436 | |
| Sales of cathode raw materials to BAK SZ | |
| 4,620 | | |
| 2,172 | |
| Sales of cathode raw materials to Zhengzhou BAK Electronics Co., Ltd | |
| 176,512 | | |
| 278,381 | |
| Sales of cathode raw materials to Zhengzhou BAK in relation to non-operating agency-based service | |
| 2,168,931 | | |
| - | |
| Sales of cathode raw materials to Zhengzhou BAK Electronics Co., Ltd in relation to non-operating agency-based service | |
| 125,680 | | |
| - | |
| Sales of cathode raw materials to BAK SZ in relation to non-operating agency-based service | |
| 4,748 | | |
| - | |
Related party balances
Apart from the above, the Company recorded the
following significant related party balances as of December 31, 2025 and March 31, 2026:
Receivables from former subsidiary
| | |
December 31,
2025 | | |
March 31,
2026 | |
| Receivables from BAK SZ | |
$ | 4,389 | | |
$ | 2,459 | |
Balance as of December 31, 2025 and March 31,
2026 represented trade receivable for sales of cathode raw materials to BAK SZ.
Other balances due from/ (to) related parties
| | |
December 31,
2025 | | |
March 31,
2026 | |
| Trade receivable, net – Zhengzhou BAK (i) | |
$ | 4,836,152 | | |
$ | 8,468,034 | |
| Trade receivable, net – Zhengzhou BAK Electronics Co., Ltd. (i) | |
$ | 237,446 | | |
$ | 314,160 | |
| Trade payable, net – Zhengzhou BAK (ii) | |
$ | 4,453,603 | | |
$ | 7,189,235 | |
| Trade payable, net – Zhejiang Shengyang (iii) | |
$ | 1,136,860 | | |
$ | 823,876 | |
| Trade payable, net - Shenzhen BAK New Material Technology Co., Ltd (iii) | |
$ | 164,887 | | |
$ | 167,367 | |
| Trade payable, net – SZ BAK Medical (iii) | |
$ | 428,572 | | |
$ | 611,973 | |
| Deposit paid for acquisition of long-term investments – BAK SZ (note 12) | |
$ | 16,503,014 | | |
$ | 16,751,291 | |
| Dividend payable to non-controlling interest of Hitrans (note 15) | |
$ | 1,271,109 | | |
$ | 1,290,232 | |
| (i) | Representing trade receivable from sales of cathode raw materials. | | | | | (ii) | Representing trade payables on purchase of batteries. |
| (iii) | Representing trade payables on purchase of materials for manufacturing | Payables to a former subsidiary
Payables to a former subsidiary as of December
31, 2025 and March 31, 2026 consisted of the following:
| | |
December 31, | | |
March 31, | |
| | |
2025 | | |
2026 | |
| Payables to BAK SZ | |
$ | 407,506 | | |
$ | 402,708 | |
Balance as of December 31, 2025 and March 31,
2026 consisted of payables for purchase of inventories.
|