v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
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, 2025 and 2026, 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 (expense) and net income (loss). Net revenue, cost of revenues, operating expenses, operating income (loss), finance income (expense), other income (expenses) and net income (loss) by segment for the three months ended March 31, 2025 and 2026 were as follows:

 

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)   (7,655,753)
Operating income (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)
For the three months ended March 31, 2026  CBAT   Hitrans   Corporate
unallocated
(note)		   Consolidated 
Net revenues  $37,519,841   $32,098,151   $
-
   $69,617,992 
Cost of revenues   (39,575,695)   (29,002,429)   
-
    (68,578,124)
Gross (loss) profit   (2,055,854)   3,095,722    
-
    1,039,868 
Total operating expenses   (7,432,286)   (2,530,647)   (777,518)   (10,740,451)
Operating (loss) income   (9,488,140)   565,075    (777,518)   (9,700,583)
Finance expenses, net   (267,520)   (147,749)   (826)   (416,095)
Other income, net   5,274    1,156,540    
-
    1,161,814 
Income tax expenses   
-
    (7,426)   
-
    (7,426)
Net (loss) income   (9,750,386)   1,566,440    (778,344)   (8,962,290)
As of March 31, 2026                    
Identifiable long-lived assets   178,291,548    54,927,212    86,744    233,305,504 
Total assets   355,326,434    135,564,774    114,336    491,005,544 

 

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, 		 
    2025     2026  
High power lithium batteries used in:                
Electric vehicles   $ 537,507     $ 1,538  
Light electric vehicles     2,844,874       15,407,700  
Residential energy supply & uninterruptable supplies     16,980,957       22,110,603  
      20,363,338       37,519,841  
Materials used in manufacturing of lithium batteries                
Cathode     11,261,199       32,076,278  
Precursor     3,314,364       21,873  
      14,575,563       32,098,151  
Total consolidated revenue   $ 34,938,901     $ 69,617,992  

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,		  
    2025     2026  
Mainland China   $ 32,117,416     $ 50,956,348  
Europe     75,246       4,754,646  
India     1,806,299       6,106,951  
Africa     -       5,660,703  
Others     939,940       2,139,344  
Total   $ 34,938,901     $ 69,617,992  

 

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