v3.26.1
Concentrations and Credit Risk
 3 Months Ended
Mar. 31, 2026
Concentrations and Credit Risk [Abstract]  
Concentrations and Credit Risk
27. Concentrations and Credit Risk

 

(a) Concentrations

 

The Company had the following customers that individually comprised 10% or more of net revenue for the three months ended March 31, 2025 and 2026 as follows:

 

   Three months ended March 31, 
Sales of finished goods and raw materials  2025   2026 
Customer A  $10,731,179    30.7%   *    * 
Zhenghzhou BAK (note 16)   *    *    8,139,436    11.7%

 

* Comprised less than 10% of net revenue for the respective period.

 

The Company had the following customers that individually comprised 10% or more of net trade receivable (included VAT) as of December 31, 2025 and March 31, 2026 as follows:

 

    December 31,
2025		     Marh 31,
2026		  
Customer A   $ 3,932,534       14.1 %   $
*
      
*
  
Zhengzhou BAK (note 16)     4,836,152       17.4 %     8,468,034       25.5 %

 

* Comprised less than 10% of net accounts receivable for the respective period.

The Company had the following suppliers that individually comprised 10% or more of net purchase for the three months ended March 31, 2025 and 2026 as follows:

 

   Three months ended March 31, 
   2025   2026 
Supplier A  $3,619,451    11.2%  $13,542,101    16.9%
Supplier B   *    *     9,994,299    12.5%

 

* Comprised less than 10% of net purchase for the respective period.

  

The Company had the following suppliers that individually comprised 10% or more of trade payable as of December 31, 2025 and March 31, 2026 as follows:

 

    December 31,
2025		     March 31,
2026		  
Supplier A   $ *       *     $  13,005,167       15.1 % 
Supplier B     *       *       9,999,850       11.6 %
Supplier C     7,202,042       12.0 %     *       *  

 

(b) Credit Risk

 

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and pledged deposits. As of December 31, 2025 and March 31, 2026 substantially all of the Company’s cash and cash equivalents were held by major financial institutions and online payment platforms located in the PRC, which management believes are of high credit quality. The Company has not experienced any losses on cash and cash equivalents to date. The Company does not require collateral or other securities to support financial instruments that are subject to credit risk.

 

For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses.