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001-32898
CBAK ENERGY TECHNOLOGY, INC.
NV
88-0442833
BAK Industrial Park
Meigui Street
Huayuankou Economic Zone
Dalian City
CN
116450
(86)(411)
Common Stock, $0.001 par value
CBAT
NASDAQ
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<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in"><span style="font-size: 10pt"><b>1.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Principal Activities, Basis of Presentation and Organization </b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBAK Energy Technology, Inc. (formerly known as
China BAK Battery, Inc.) (“CBAK” or the “Company”) is a corporation formed in the State of Nevada on October 4,
1999 as Medina Copy, Inc. The Company changed its name to Medina Coffee, Inc. on October 6, 1999 and subsequently changed its name to
China BAK Battery, Inc. on February 14, 2005. CBAK and its subsidiaries (hereinafter, collectively referred to as the “Company”)
are principally engaged in the manufacture, commercialization and distribution of a wide variety of standard and customized lithium-ion
(known as “Li-ion” or “Li-ion cell”) high power rechargeable batteries. Prior to the disposal of BAK International
Limited (“BAK International”) and its subsidiaries (see below), the batteries produced by the Company were for use in cellular
telephones, as well as various other portable electronic applications, including high-power handset telephones, laptop computers, power
tools, digital cameras, video camcorders, MP3 players, electric bicycles, hybrid/electric vehicles, and general industrial applications.
After the disposal of BAK International and its subsidiaries on June 30, 2014, the Company focus on the manufacture, commercialization
and distribution of high power lithium-ion rechargeable batteries for use in cordless power tools, light electric vehicles, hybrid electric
vehicles, electric cars, electric busses, uninterruptable power supplies and other high power applications.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The shares of the Company traded in the over-the-counter
market through the Over-the-Counter Bulletin Board from 2005 until May 31, 2006, when the Company obtained approval to list its common
stock on The NASDAQ Global Market, and trading commenced that same date under the symbol “CBAK”.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 10, 2017, the Company filed Articles
of Merger with the Secretary of State of Nevada to effectuate a merger between the Company and the Company’s newly formed, wholly
owned subsidiary, CBAK Merger Sub, Inc. (the “Merger Sub”). According to the Articles of Merger, effective January 16, 2017,
the Merger Sub merged with and into the Company with the Company being the surviving entity (the “Merger”). As permitted by
Chapter 92A.180 of Nevada Revised Statutes, the sole purpose of the Merger was to effect a change of the Company’s name.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective November 30, 2018, the trading symbol
for common stock of the Company was changed from CBAK to CBAT. Effective at the opening of business on June 21, 2019, the Company’s
common stock started trading on the Nasdaq Capital Market.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Basis of Presentation and Organization</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 6, 2004, BAK International, a non-operating
holding company that had substantially the same shareholders as Shenzhen BAK Battery Co., Ltd (“SZ BAK”), entered into a share
swap transaction with the shareholders of SZ BAK for the purpose of the subsequent reverse acquisition of the Company. The share swap
transaction between BAK International and the shareholders of SZ BAK was accounted for as a reverse acquisition of SZ BAK with no adjustment
to the historical basis of the assets and liabilities of SZ BAK.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 20, 2005, the Company completed a share
swap transaction with the shareholders of BAK International. The share swap transaction, also referred to as the “reverse acquisition”
of the Company, was consummated under Nevada law pursuant to the terms of a Securities Exchange Agreement entered by and among CBAK, BAK
International and the shareholders of BAK International on January 20, 2005. The share swap transaction has been accounted for as a capital-raising
transaction of the Company whereby the historical financial statements and operations of SZ BAK are consolidated using historical carrying
amounts.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Also on January 20, 2005, immediately prior to
consummating the share swap transaction, BAK International executed a private placement of its common stock with unrelated investors whereby
it issued an aggregate of 1,720,087 shares of common stock for gross proceeds of $17,000,000. In conjunction with this financing, Mr.
Xiangqian Li, the Chairman and Chief Executive Officer of the Company (“Mr. Li”) until March 1, 2016, agreed to place 435,910
shares of the Company’s common stock owned by him into an escrow account pursuant to an Escrow Agreement dated January 20, 2005
(the “Escrow Agreement”). Pursuant to the Escrow Agreement, 50% of the escrowed shares were to be released to the investors
in the private placement if audited net income of the Company for the fiscal year ended September 30, 2005 was not at least $12,000,000,
and the remaining 50% was to be released to investors in the private placement if audited net income of the Company for the fiscal year
ended September 30, 2006 was not at least $27,000,000. If the audited net income of the Company for the fiscal years ended September 30,
2005 and 2006 reached the above-mentioned targets, the 435,910 shares would be released to Mr. Li in the amount of 50% upon reaching the
2005 target and the remaining 50% upon reaching the 2006 target. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under accounting principles generally accepted
in the United States of America (“US GAAP”), escrow agreements such as the one established by Mr. Li generally constitute
compensation if, following attainment of a performance threshold, shares are returned to a company officer. The Company determined that
without consideration of the compensation charge, the performance thresholds for the year ended September 30, 2005 would be achieved.
However, after consideration of a related compensation charge, the Company determined that such thresholds would not have been achieved.
The Company also determined that, even without consideration of a compensation charge, the performance thresholds for the year ended September
30, 2006 would not be achieved.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While the 217,955 escrow shares relating to the
2005 performance threshold were previously released to Mr. Li, Mr. Li executed a further undertaking on August 21, 2006 to return those
shares to the escrow agent for the distribution to the relevant investors. However, such shares were not returned to the escrow agent,
but, pursuant to a Delivery of Make Good Shares, Settlement and Release Agreement between the Company, BAK International and Mr. Li entered
into on October 22, 2007 (the “Li Settlement Agreement”), such shares were ultimately delivered to the Company as described
below. Because the Company failed to satisfy the performance threshold for the fiscal year ended September 30, 2006, the remaining 217,955
escrow shares relating to the fiscal year 2006 performance threshold were released to the relevant investors. As Mr. Li has not retained
any of the shares placed into escrow, and as the investors party to the Escrow Agreement are only shareholders of the Company and do not
have and are not expected to have any other relationship to the Company, the Company has not recorded a compensation charge for the years
ended September 30, 2005 and 2006.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the time the escrow shares relating to the
2006 performance threshold were transferred to the investors in fiscal year 2007, the Company should have recognized a credit to donated
shares and a debit to additional paid-in capital, both of which are elements of shareholders’ equity. This entry is not material
because total ordinary shares issued and outstanding, total shareholders’ equity and total assets do not change; nor is there any
impact on income or earnings per share. Therefore, previously filed consolidated financial statements for the fiscal year ended September
30, 2007 will not be restated. This share transfer has been reflected in these financial statements by reclassifying the balances of certain
items as of October 1, 2007. The balances of donated shares and additional paid-in capital as of October 1, 2007 were credited and debited
by $7,955,358 respectively, as set out in the consolidated statements of changes in shareholders’ equity.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In November 2007, Mr. Li delivered the 217,955
shares related to the 2005 performance threshold to BAK International pursuant to the Li Settlement Agreement; BAK International in turn
delivered the shares to the Company. Such shares (other than those issued to investors pursuant to the 2008 Settlement Agreements, as
described below) are now held by the Company. Upon receipt of these shares, the Company and BAK International released all claims and
causes of action against Mr. Li regarding the shares, and Mr. Li released all claims and causes of action against the Company and BAK
International regarding the shares. Under the terms of the Li Settlement Agreement, the Company commenced negotiations with the investors
who participated in the Company’s January 2005 private placement in order to achieve a complete settlement of BAK International’s
obligations (and the Company’s obligations to the extent it has any) under the applicable agreements with such investors. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Beginning on March 13, 2008, the Company entered
into settlement agreements (the “2008 Settlement Agreements”) with certain investors in the January 2005 private placement.
Since the other investors have never submitted any claims regarding this matter, the Company did not reach any settlement with them.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the 2008 Settlement Agreements, the
Company and the settling investors have agreed, without any admission of liability, to a settlement and mutual release from all claims
relating to the January 2005 private placement, including all claims relating to the escrow shares related to the 2005 performance threshold
that had been placed into escrow by Mr. Li, as well as all claims, including claims for liquidated damages relating to registration rights
granted in connection with the January 2005 private placement. Under the 2008 Settlement Agreement, the Company has made settlement payments
to each of the settling investors of the number of shares of the Company’s common stock equivalent to 50% of the number of the escrow
shares related to the 2005 performance threshold these investors had claimed; aggregate settlement payments as of June 30, 2015amounted
to 73,749 shares. Share payments to date have been made in reliance upon the exemptions from registration provided by Section 4(2) and/or
other applicable provisions of the Securities Act of 1933, as amended. In accordance with the 2008 Settlement Agreements, the Company
filed a registration statement covering the resale of such shares which was declared effective by the SEC on June 26, 2008. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Li Settlement Agreement, the 2008
Settlement Agreements and upon the release of the 217,955 escrow shares relating to the fiscal year 2006 performance threshold to the
relevant investors, neither Mr. Li or the Company have any obligations to the investors who participated in the Company’s January
2005 private placement relating to the escrow shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2026, the Company had not received
any claim from the other investors who have not been covered by the “2008 Settlement Agreements” in the January 2005 private
placement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As the Company has transferred the 217,955 shares
related to the 2006 performance threshold to the relevant investors in fiscal year 2007 and the Company also have transferred 73,749 shares
relating to the 2005 performance threshold to the investors who had entered the “2008 Settlement Agreements” with us in fiscal
year 2008, pursuant to “Li Settlement Agreement” and “2008 Settlement Agreements”, neither Mr. Li nor the Company
had any remaining obligations to those related investors who participated in the Company’s January 2005 private placement relating
to the escrow shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 14, 2013, Dalian BAK Trading Co., Ltd
was established as a wholly owned subsidiary of China BAK Asia Holding Limited (“BAK Asia”) with a registered capital of $500,000.
Pursuant to CBAK Trading’s articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital
to CBAK Trading on or before August 14, 2015. On March 7, 2017, the name of Dalian BAK Trading Co., Ltd was changed to Dalian CBAK Trading
Co., Ltd (“CBAK Trading”). On August 5, 2019, CBAK Trading’s registered capital was increased to $5,000,000. Pursuant
to CBAK Trading’s amendment articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital
to CBAK Trading on or before August 1, 2033. On December 12, 2023, CBAK Trading changed its name to Dalian CBAK New Energy Co., Ltd (“CBAK
New Energy”). The Company has contributed $2,435,000 to CBAK New Energy in cash as of March 31, 2026. CBAK New Energy principally
engaged in investment holding.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 27, 2013, Dalian BAK Power Battery
Co., Ltd was established as a wholly owned subsidiary of BAK Asia with a registered capital of $30,000,000. Pursuant to CBAK Power’s
articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital to CBAK Power on or before December
27, 2015. On March 7, 2017, the name of Dalian BAK Power Battery Co., Ltd was changed to Dalian CBAK Power Battery Co., Ltd (“CBAK
Power”). On July 10, 2018, CBAK Power’s registered capital was increased to $50,000,000. On October 29, 2019, CBAK Power’s
registered capital was further increased to $60,000,000. Pursuant to CBAK Power’s amendment articles of association and relevant
PRC regulations, BAK Asia was required to contribute the capital to CBAK Power on or before December 31, 2021. The Company has made full
contribution to CBAK Power through injection of a series of patents and cash. CBAK Power principal engaged in development and manufacture
of high-power lithium batteries. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 4, 2018, CBAK New Energy (Suzhou) Co.,
Ltd (“CBAK Suzhou”) was established as a 90% owned subsidiary of CBAK Power with a registered capital of RMB10,000,000 (approximately
$1.5 million). The remaining 10% equity interest was held by certain employees of CBAK Suzhou. Pursuant to CBAK Suzhou’s articles
of association, each shareholder is entitled to the right of the profit distribution or responsible for the loss according to its proportion
to the capital contribution. Pursuant to CBAK Suzhou’s articles of association and relevant PRC regulations, CBAK Power was required
to contribute the capital to CBAK Suzhou on or before December 31, 2019. Up to the date of this report, the Company has contributed RMB9.0
million (approximately $1.3 million), and the other shareholders have contributed RMB1.0 million (approximately $0.1 million) to CBAK
Suzhou through injection of a series of cash. In April 14, 2023, CBAK Power and Nanjing BFD Energy Technology Co., Ltd (“Nanjing
BFD”) entered into shares transfer agreement to transfer the 90% shares of CBAK Suzhou owned by CBAK Power to Nanjing BFD, no gain
or loss was incurred for the transfer. CBAK Suzhou is dormant as of March 31, 2026 and under the dissolve process.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 21, 2019, Dalian CBAK Energy Technology
Co., Ltd (“CBAK Energy”) was established as a wholly owned subsidiary of BAK Asia with a registered capital of $50,000,000.
Pursuant to CBAK Energy’s articles of association and relevant PRC regulations, BAK Asia was required to contribute the capital
to CBAK Energy on or before November 20, 2022, the Company has extended the paid up time to January 31, 2054. The Company has contributed
$23,519,880 to CBAK Energy as of March 31, 2026. CBAK Energy is dormant as of the date of the report.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 14, 2020, the Company acquired BAK Asia
Investments Limited (“BAK Investments”), a company incorporated under Hong Kong laws, from Mr. Xiangqian Li, the Company’s
former CEO, for a cash consideration of HK$1.00. BAK Asia Investments Limited is a holding company without any other business operations.
BAK Investments principally engaged in investment holding.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 31, 2020, BAK Investments formed a wholly
owned subsidiary CBAK New Energy (Nanjing) Co., Ltd. (“CBAK Nanjing”) in China with a registered capital of $100 million.
Pursuant to CBAK Nanjing’s articles of association and relevant PRC regulations, BAK Investments was required to contribute the
capital to CBAK Nanjing on or before July 29, 2040. The Company has contributed $55,289,915 to CBAK Nanjing as of March 31, 2026. CBAK
Nanjing principally engaged in investment holding.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 6, 2020, Nanjing CBAK New Energy Technology
Co., Ltd. (“Nanjing CBAK”) was established as a wholly owned subsidiary of CBAK Nanjing with a registered capital of RMB700
million (approximately $101.3 million). Pursuant to Nanjing CBAK’s articles of association and relevant PRC regulations, CBAK Nanjing
was required to contribute the capital to Nanjing CBAK on or before August 5, 2040. The Company has contributed RMB352.5 million (approximately
$51.0 million) to Nanjing CBAK as of March 31, 2026. Nanjing CBAK principally engaged in development and manufacture of larger-sized cylindrical
lithium batteries.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 9, 2020, Nanjing Daxin New Energy
Automobile Industry Co., Ltd (“Nanjing Daxin”) was established as a wholly owned subsidiary of CBAK Nanjing with a register
capital of RMB50 million (approximately $7.2 million). Up to the date of this report, the Company has contributed RMB37 million (approximately
$5.4 million) to Nanjing Daxin. On March 6, 2023, Nanjing Daxin changed its name to Nanjing BFD Energy Technology Co., Ltd (“Nanjing
BFD”). The Company has paid in full to Nanjing BFD through injection of a series of cash. Nanjing BFD principally engaged in development
and manufacture of sodium-ion batteries and dedicated batteries pack integration operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 21, 2021, CBAK Power, along with Shenzhen
BAK Power Battery Co., Ltd (“BAK SZ”), Shenzhen Asian Plastics Technology Co., Ltd (“SZ Asian Plastics”) and Xiaoxia
Liu, entered into an investment agreement with Junxiu Li, Hunan Xintao New Energy Technology Partnership, Xingyu Zhu, and Jiangsu Saideli
Pharmaceutical Machinery Manufacturing Co., Ltd for an investment in Hunan DJY Technology Co., Ltd (“DJY”). CBAK Power has
paid approximately $1.3 million (RMB9 million) to acquire 9.74% of the equity interests of DJY. CBAK Power has appointed one director
to the Board of Directors of DJY. DJY engaged in researching and manufacturing of raw materials and equipment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 20, 2021, CBAK Power entered into a framework
agreement relating to CBAK Power’s investment in Zhejiang Hitrans Lithium Battery Technology Co., Ltd (“Hitrans”, formerly
known as Zhejiang Meidu Hitrans Lithium Battery Technology Co., Ltd), pursuant to which CBAK Power agreed to acquire 81.56% of registered
equity interests (representing 75.57% of paid-up capital) of Hitrans (the “Acquisition”). The Acquisition was completed on
November 26, 2021 (Note 11). After the completion of the Acquisition, Hitrans became an 81.56% registered equity interests (representing
75.57% of paid-up capital) owned subsidiary of the Company. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 8, 2022, Hitrans held its second shareholder
meeting in 2022 to pass a resolution to increase the registered capital of Hitrans from RMB40 million to RMB44 million (approximately
$6.4 million) and to accept an investment of RMB22 million (approximately $3.2 million) from Shaoxing Haiji Enterprise Management &
Consulting Partnership (“Shaoxing Haiji”) and an investment of RMB18 million (approximately $2.6 million) from Mr. Haijun
Wu (collectively “Management Shareholder”). Under the resolution, 10% of the investment injection (RMB4 million or $0.6 million)
will be contributed towards Hitrans’s registered capital and the remaining 90% (RMB36 million or $5.2 million) will be treated as
additional paid-in capital contribution of Hitrans. 25% of the investments from the Management Shareholder were required to be in place
before August 15, 2022, 25% of the investments were required to be in place before December 31, 2022 and the 50% balance (RMB20 million)
were required to be received June 30, 2024. As of December 31, 2025 and March 31, 2026, RMB10 million (approximately $1.4 million), representing
25% of the investments were received. Shaoxing Haiji and Mr. Haijun Wu are currently in negotiations with other shareholders of Hitrans
to extend the payment due date for the remaining unpaid 25% and 50% of the Management Shareholder Investments to May 31, 2029.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 8, 2022, CBAK Power entered into equity
interest transfer agreements with five individuals to dispose of an aggregate 6.82% of Hitrans equity interests for a total consideration
of RMB30 million (approximately $4.3 million). The transaction was completed on December 30, 2022. CBAK Power’s equity interest
in Hitrans was 67.33% (representing 69.12% of paid-up capital) after the disposal.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 26, 2024, CBAK New Energy entered into
an agreement with CBAK Power to acquire the same 67.33% equity interest in Hitrans. The registration of this equity transfer with the
local government was also completed on the same date. As a result of this transaction, CBAK New Energy has become the controlling shareholder
of Hitrans, while CBAK Power no longer holds any equity interest in Hitrans. In November 2025, CBAK New Energy entered into an equity
transfer agreement with New Era Group Zhejiang New Energy Materials Co., Ltd to acquire an additional 6.1364% equity interests in Hitrans
for a total consideration of RMB21.1 million (approximately $2.9 million). Upon the completion of this transaction and as of March 31,
2026, CBAK New Energy’s equity interests in Hitrans was 73.46% (representing 79.64% of paid-up capital).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 28, 2021, Hitrans Holdings, was established
as a wholly owned subsidiary of CBAK, under the laws of the Cayman Islands, formerly named as “CBAK Energy Technology, Inc.,”
and was renamed as “Hitrans Holdings Co., Ltd.” (“Hitrans Holdings”) on February 29, 2024. Hitrans Holdings does
not have any significant operations as of the date of this report.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 9, 2021, Shaoxing Haisheng International
Trading Co., Ltd. (“Haisheng”) was established as a wholly owned subsidiary of Hitrans with a registered capital of RMB5 million
(approximately $0.8 million). Pursuant to Haisheng’s articles of association and relevant PRC regulations, Hitrans was required
to contribute the capital to Haisheng on or before May 31, 2025. Hitrans has made full contribution to Haisheng through injection of a
series of cash. Haisheng principally engaged in the business of cathode materials trading.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 7, 2023, Hong Kong Nacell Holdings Company
Limited was established as a wholly owned subsidiary of Hitrans Holdings, incorporated under the laws of Hong Kong, was renamed as “Hong
Kong Hitrans Holdings Company Limited” (“Hong Kong Hitrans”) on March 22, 2024. Hong Kong Hitrans does not have any
significant operations as of the date of this report.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 12, 2023, CBAK Energy Lithium Holdings
was established as a wholly owned subsidiary of CBAK, incorporated under the laws of the Cayman Islands was renamed as “CBAK Energy
Lithium Holdings Co. Ltd” on February 29, 2024. CBAK Energy Lithium Holdings does not have any significant operations as of the
date of this report.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 25, 2023, CBAK New Energy (Shangqiu) Co.,
Ltd (“CBAK Shangqiu”) was established as a wholly owned subsidiary of CBAK Power with a registered capital of RMB50 million
(approximately $6.9 million). Pursuant to CBAK Shangqiu’s articles of association and relevant PRC regulations, CBAK Power was required
to contribute the capital to Shangqiu on or before July 24, 2043. CBAK Power has contributed RMB18.0 million (approximately $2.6 million)
to Shangqiu as of March 31, 2026. CBAK Shangqiu principally engaged in manufacture and sales of lithium-ion batteries.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 26, 2024, CBAK Energy Investments
Holdings (“CBAK Energy Investments”) was established as a wholly owned subsidiary of CBAK, under the laws of the Cayman Islands.
CBAK Energy Investments does not have any significant operations as of the date of this report.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 29, 2024, Shenzhen CBAK Sodium Battery
New Energy Co., Ltd (“CBAK Shenzhen”) was established as a wholly owned subsidiary of BAK Investments with a registered capital
of $2 million. Pursuant to CBAK Shenzhen’s articles of association and relevant PRC regulations, BAK Investments was required to
contribute the capital to CBAK Shenzhen on or before October 17, 2029. BAK Investments made <span style="-sec-ix-hidden: hidden-fact-57">nil</span> contribution as of March 31, 2026.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 9, 2025, Anhui Yuanchuang New Energy
Materials Co., Ltd.(“Yuanchuang”) was established as a wholly owned subsidiary of Hitrans with a registered capital of RMB50
million (approximately $6.8 million). Pursuant to its articles of association and relevant PRC regulations, Hitrans was required to contribute
the capital on or before January 2, 2030. Hitrans has made full contribution to Yuanchuang. Yuanchuang is designated to engage in the
business of manufacturing and marketing of Nickel Cobalt Manganese (“NCM”) cathode materials for application in NCM lithium-ion
batteries.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 30, 2025, the Company established a subsidiary
in Malaysia, CBAK ENERGY Lithium Battery Malaysia SDN. BHD. (“CBAK Malaysia”). CBAK Malaysia will focus on the manufacturing
and sales of cylindrical lithium cells, targeting overseas markets outside of China. CBAK Malaysia does not have operations as of the
date of this report.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBAK Energy C.A. Inc. (“CBAK Energy California”)
was incorporated on November 17, 2025 under the laws of the State of California, the United States as a wholly owned subsidiary of CBAK
Energy Technology, Inc. CBAK Energy California does not have any significant operations as of the date of this report. CBAK Energy California
was set up to develop the United States market.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Shaoxing Hailan New Materials Co., Ltd (“Hailan New Materials”)
was established on February 9, 2026 as a wholly owned subsidiary of Hitrans with a registered capital of RMB44 million (approximately
$<span style="-sec-ix-hidden: hidden-fact-59">6.4</span> million). Pursuant to its articles of association and relevant PRC regulations, Hitrans was required to contribute on or before February
8, 2031. Hitrans made <span style="-sec-ix-hidden: hidden-fact-58">nil</span> contribution as of March 31, 2026. Shaoxing Hailan was set up for investment holding (note 30).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s condensed consolidated financial
statements have been prepared under US GAAP.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of financial statements in conformity
with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting periods. Actual results could differ from those estimates. This basis of accounting differs in certain material respects
from that used for the preparation of the books of account of the Company and its subsidiaries, which are prepared in accordance with
the accounting principles and the relevant financial regulations applicable to enterprises with limited liability established in the PRC
or Hong Kong. The accompanying condensed consolidated financial statements reflect necessary adjustments not recorded in the books of
account of the Company’s subsidiaries to present them in conformity with US GAAP. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 8, 2020, the Company entered into
a securities purchase agreement with certain institutional investors, pursuant to which the Company issued in a registered direct offering,
an aggregate of 9,489,800 shares of common stock of the Company at a per share purchase price of $5.18, and warrants to purchase an aggregate
of 3,795,920 shares of common stock of the Company at an exercise price of $6.46 per share exercisable for 36 months from the date of
issuance, for gross proceeds of approximately $49.16 million, before deducting fees to the placement agent and other estimated offering
expenses of $3.81 million payable by the Company. In addition, the placement agent for this transaction also received warrants (“Placement
Agent Warrants”) for the purchase of up to 379,592 shares of the Company’s common stock at an exercise price of $6.475 per
share exercisable for 36 months after 6 months from the issuance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 8, 2021, the Company entered into
another securities purchase agreement with the same investors, pursuant to which the Company issued in a registered direct offering, an
aggregate of 8,939,976 shares of common stock of the Company at a per share purchase price of $7.83. In addition, the Company issued to
the investors (i) in a concurrent private placement, the Series A-1 warrants to purchase a total of 4,469,988 shares of common stock,
at a per share exercise price of $7.67 and exercisable for 42 months from the date of issuance; (ii) in the registered direct offering,
the Series B warrants to purchase a total of 4,469,988 shares of common stock, at a per share exercise price of $7.83 and exercisable
for 90 days from the date of issuance; and (iii) in the registered direct offering, the Series A-2 warrants to purchase up to 2,234,992
shares of common stock, at a per share exercise price of $7.67 and exercisable for 45 months from the date of issuance. The Company received
gross proceeds of approximately $70 million from the registered direct offering and the concurrent private placement, before deducting
fees to the placement agent and other estimated offering expenses of $5.0 million payable by the Company. In addition, the placement agent
for this transaction also received warrants (“Placement Agent Warrants”) for the purchase of up to 446,999 shares of the Company’s
common stock at an exercise price of $9.204 per share exercisable for 36 months after 6 months from the issuance.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 10, 2021, the Company entered into that
Amendment No. 1 to the Series B Warrant (the “Series B Warrant Amendment”) with each of the holders of the Company’s
outstanding Series B warrants. Pursuant to the Series B Warrant Amendment, the term of the Series B warrants was extended from May 11,
2021 to August 31, 2021.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of August 31, 2021, the Company had not received
any notices from the investors to exercise Series B warrants. As of March 31, 2026, all of the warrants were expired.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 20, 2025, the Company authorized a stock
repurchase program (the “Stock Repurchase Program”) under which the Company may repurchase up to $20 million of shares of
its common stock. The Stock Repurchase Program will end on May 20, 2026. Repurchases under the Stock Repurchase Program may be made from
time to time through open market purchases, privately negotiated transactions or such other manners as will comply with applicable laws
and regulations. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and
regulatory requirements, market conditions and other corporate liquidity requirements and priorities. The Stock Repurchase Program does
not obligate the Company to purchase any particular number of shares and there is no guarantee as to the exact number of shares that will
be repurchased by the Company. The Stock Repurchase Program may be suspended, modified or terminated by the Company at any time and for
any reason, without prior notice. The Company completed the shares repurchase and the repurchased shares were retired on August 13, 2025.
The total cost for the repurchase was $1.5 million, with an average share price of $1.14 per unit.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2026, the Company had $45.0 million bank loans and
approximately $330.8 million of other current liabilities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is currently expanding its product
lines and manufacturing capacity in its Dalian, Nanjing, Zhejiang and Anhui plant which requires more funding to finance the expansion.
The Company plans to raise additional funds through banks borrowings and equity financing in the future to meet its daily cash demands,
if required. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Outbreaks of viruses or other health epidemics
and outbreaks</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.05pt; text-align: justify; text-indent: -9.8pt"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company business has been and may continue
to be adversely affected by the outbreak of a widespread health epidemic, such as COVID-19 avian flu or African swine flu. The Company’s
manufacturing facilities in Dalian, Nanjing and Shaoxing did not produce at full capacity when restrictive measures were in force during
2022, which negatively affected our operational and financial results. China began to modify its zero-COVID policy at the end of 2022,
and most of the travel restrictions and quarantine requirements were lifted in December 2022.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The extent of the impact of the outbreaks of viruses
or other health epidemics that will continue to have on the Company’s business is highly uncertain and difficult to predict and
quantify, as the actions that the Company, other businesses and governments may take to contain the spread of possible health epidemics
and outbreak continue to evolve. Because of the significant uncertainties surrounding, the extent of the future business interruption
and the related financial impact cannot be reasonably estimated at this time. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of issuance of the Company’s
condensed financial statements, the extent to which the possible health epidemics and outbreaks may in the future materially impact the
Company’s financial condition, liquidity or results of operations is uncertain. The Company is monitoring and assessing the evolving
situation closely and evaluating its potential exposure.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Going Concern</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 21.2pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying condensed consolidated financial
statements have been prepared assuming the Company will continue as a going concern. The Company has a working capital deficiency, an
accumulated deficit from recurring net losses and significant short-term debt obligations maturing in less than one year as of March 31,
2026. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s plan
for continuing as a going concern includes improving its profitability and obtaining additional debt financing, loans from existing shareholders
for additional funding to meet its operating needs. There can be no assurance that the Company will be successful in the plans described
above or in attracting equity or alternative financing on acceptable terms, or at all. These condensed consolidated financial statements
do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that
might be necessary should the Company be unable to continue as a going concern.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Revenue Recognition</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company recognizes revenues when its customer
obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for
those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s)
with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction
price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenues from product sales are recognized when
the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer.
The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that
it would have recognized is one year or less or the amount is immaterial.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenues from product sales are recorded net of
reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Product revenue reserves, which are classified
as a reduction in product revenues, are generally characterized in the categories: discounts and returns. These reserves are based on
estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount
is payable to the Company’s customer.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Contract liabilities</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s contract liabilities consist
of deferred revenue associated with batteries development, services contracts and deposits received from customers allocated to the performance
obligations that are unsatisfied. Changes in contract liability balances were not materially impacted by business acquisition, change
in estimate of transaction price or any other factors during any of the years presented. The table below presents the activity of the
deferred batteries development and sales of batteries revenue during the three months ended March 31, 2025 and 2026, respectively:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">For the three
months ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Balance at beginning of year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,831,774</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">15,841,985</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Development fees collected/ deposits received</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,723,692</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-55">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Development and sales of batteries revenue recognized</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,338,383</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-56">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Exchange realignment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">24,130</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">226,538</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Balance at end of period</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">6,241,213</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">16,068,523</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Recently Adopted Accounting Standards</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In July 2025, the FASB issued ASU 2025-05, Financial
Instruments – Credit Losses (Topic 326), that provides a practical expedient in developing forecasts as part of estimating expected
credit losses. The amendment permits the Company to elect a practical expedient that assumes that current conditions as of the balance
sheet date do not change for the remaining life of the asset. The ASU is effective for annual and interim periods beginning after December
15, 2025. Early adoption is permitted and is effective on a prospective basis. The Company adopted ASU2023-09 beginning January 1, 2026.
The adoption did not have material impact on the Company’s condensed consolidated financial statement presentations and disclosures.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Recently Issued But Not Yet Adopted Accounting
Pronouncements</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In November 2024, the FASB issued ASU 2024-03,
Disaggregation of Income Statement Expenses (DISE), which requires additional disclosure of the nature of expenses included in the income
statement in response to longstanding requests from investors for more information about an entity’s expenses. The new standard
requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as
well as disclosures about selling expenses. The guidance will be effective for annual reporting periods beginning after December 15, 2026
and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective
application. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have
on the Company’s condensed consolidated financial statement presentation and disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In November 2025, the FASB issued ASU 2025-09,
Derivatives and Hedging – Hedge Accounting Improvements (Topic 815), which amends certain aspects of the hedge accounting guidance
to better align financial reporting with the economics of an entity’s risk management activities. The ASU is effective for annual
and interim periods beginning after December 13, 2026. Early adoption is permitted and is effective on a prospective basis. The Company
is currently evaluating the impact that the adoption of this guidance on the Company’s condensed consolidated financial statement
presentations and disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In December 2025, the FASB issued ASU 2025-10,
Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, to improve generally accepted accounting
principles by establishing authoritative guidance on the accounting for government grants received by business entities. The amendments
establish the accounting for a government grant received by a business entity, including guidance for a grant related to an asset and
to income. The guidance is effective for fiscal years beginning after December 15, 2028, with early adoption permitted, and it can be
applied using (a) a modified prospective approach; (b) a modified retrospective approach or (c) a retrospective approach. The Company
is currently evaluating the impact that the adoption of this guidance on the Company’s condensed consolidated financial statement
presentations and disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other accounting standards that have been issued
or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a
material impact on the Company’s condensed consolidated financial statements upon adoption. </p>
1999-10-04
1720087
17000000
435910
0.50
12000000
0.50
27000000
If the audited net income of the Company for the fiscal years ended September 30,
2005 and 2006 reached the above-mentioned targets, the 435,910 shares would be released to Mr. Li in the amount of 50% upon reaching the
2005 target and the remaining 50% upon reaching the 2006 target.
217955
217955
7955358
217955
0.50
73749
217955
217955
73749
500000
5000000
2435000
30000000
50000000
60000000
0.90
10000000
1500000
0.10
9000000
1300000
1000000
100000
0.90
50000000
23519880
1
100000000
55289915
700000000
101300000
352500000
51000000
50000000
7200000
37000000
5400000
1300000
9000000
0.0974
0.8156
0.7557
0.8156
0.7557
40000000
44000000
6400000
22000000
3200000
18000000
2600000
0.10
4000000
600000
0.90
36000000
5200000
0.25
0.25
0.50
20000000
10000000
1400000
0.25
0.25
0.50
2029-05-31
0.0682
30000000
4300000
0.6733
0.6912
0.6733
0.061364
21.1
2900000
0.7346
0.7964
5000000
800000
50000000
6900000
18000000
2600000
2000000
50000000
6800000
0.44
6400000
9489800
5.18
3795920
6.46
49160000
3810000
379592
6.475
8939976
7.83
4469988
7.67
4469988
7.83
2234992
7.67
70000000
5000000
446999
9.204
20000000
1500000
1.14
45000000
330800000
P1Y
The table below presents the activity of the
deferred batteries development and sales of batteries revenue during the three months ended March 31, 2025 and 2026, respectively:<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">For the three
months ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Balance at beginning of year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,831,774</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">15,841,985</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Development fees collected/ deposits received</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,723,692</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-55">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Development and sales of batteries revenue recognized</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,338,383</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-56">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Exchange realignment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">24,130</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">226,538</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Balance at end of period</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">6,241,213</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">16,068,523</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
4831774
15841985
2723692
-1338383
24130
226538
6241213
16068523
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>2.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Pledged deposits</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pledged deposits as of December 31, 2025 and March
31, 2026 consisted of pledged deposits with banks for bills payable (note 13) and collateral for commodity contracts (note 19).</p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>3.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Trade and Bills Receivable, net</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Trade and bills receivable as of December 31,
2025 and March 31, 2026:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Trade receivable</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">28,884,493</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">34,365,447</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Less: Allowance for credit losses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,062,148</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,127,894</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,822,345</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">33,237,553</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Bills receivable</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,583,053</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,261,599</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">38,405,398</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">46,499,152</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Included in trade and bills receivables are retention
receivables of $51,392 and $40,694 as of December 31, 2025 and March 31, 2026. Retention receivables are interest-free and recoverable
either at the end of the retention period of three to five years since the sales of the EV batteries or 200,000 km since the sales of
the motor vehicles (whichever comes first).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An analysis of the allowance for the credit losses
are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Balance as at January 1, 2026</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,062,148</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Current period provision, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49,665</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-align: left">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,081</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt">Balance as at March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,127,894</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Trade and bills receivable as of December 31,
2025 and March 31, 2026:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Trade receivable</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">28,884,493</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">34,365,447</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Less: Allowance for credit losses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,062,148</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,127,894</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,822,345</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">33,237,553</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Bills receivable</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,583,053</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">13,261,599</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">38,405,398</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">46,499,152</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
28884493
34365447
1062148
1127894
27822345
33237553
10583053
13261599
38405398
46499152
51392
40694
Retention receivables are interest-free and recoverable
either at the end of the retention period of three to five years since the sales of the EV batteries or 200,000 km since the sales of
the motor vehicles (whichever comes first).
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An analysis of the allowance for the credit losses
are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Balance as at January 1, 2026</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,062,148</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Current period provision, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">49,665</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt; text-align: left">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">16,081</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt">Balance as at March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,127,894</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
1062148
49665
-16081
1127894
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>4.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Inventories</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Inventories as of December 31, 2025 and March
31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Raw materials</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11,897,761</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">15,364,191</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Work in progress</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,055,586</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,410,581</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Finished goods</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">26,648,940</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">36,898,963</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">50,602,287</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">75,673,735</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended March 31, 2025 and 2026 write-downs of
obsolete inventories to lower of cost or net realizable value of $934,424 and $2,592,622, respectively, were charged to cost of revenues.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Inventories as of December 31, 2025 and March
31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Raw materials</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11,897,761</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">15,364,191</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Work in progress</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,055,586</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,410,581</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Finished goods</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">26,648,940</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">36,898,963</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">50,602,287</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">75,673,735</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
11897761
15364191
12055586
23410581
26648940
36898963
50602287
75673735
934424
2592622
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>5.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Prepayments and Other Receivables</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prepayments and other receivables as of December
31, 2025 and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">VAT recoverable</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">10,495,495</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">10,413,659</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Prepayments to suppliers</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,873,852</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">953,557</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Deposits</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">120,779</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">110,398</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Staff advances</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">191,657</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">401,856</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Prepaid operating expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">850,680</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">636,998</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Interest receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">124,101</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">172,163</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Receivables from customers for non-operating agency-based service</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,529,183</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,768,099</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Derivatives assets (note 19)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-60">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">416,535</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Other receivables</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,439</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,743</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,189,186</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,881,008</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Less: Allowance for credit losses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(18,271</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(17,592</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">15,170,915</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">16,863,416</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An analysis of the allowance for credit losses
are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Balance as at January 1, 2026</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">18,271</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Current period provision, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt">(848</span></td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-size: 10pt">169</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt">Balance as at March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">17,592</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prepayments and other receivables as of December
31, 2025 and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">VAT recoverable</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">10,495,495</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">10,413,659</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Prepayments to suppliers</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,873,852</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">953,557</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Deposits</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">120,779</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">110,398</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Staff advances</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">191,657</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">401,856</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Prepaid operating expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">850,680</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">636,998</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Interest receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">124,101</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">172,163</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Receivables from customers for non-operating agency-based service</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,529,183</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,768,099</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Derivatives assets (note 19)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-60">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">416,535</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Other receivables</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,439</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,743</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,189,186</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,881,008</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Less: Allowance for credit losses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(18,271</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(17,592</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">15,170,915</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">16,863,416</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
10495495
10413659
1873852
953557
120779
110398
191657
401856
850680
636998
124101
172163
1529183
3768099
416535
3439
7743
15189186
16881008
18271
17592
15170915
16863416
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An analysis of the allowance for credit losses
are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Balance as at January 1, 2026</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">18,271</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Current period provision, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt">(848</span></td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-size: 10pt">169</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt">Balance as at March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">17,592</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
18271
-848
169
17592
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>6.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Property, Plant and Equipment, net</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property, plant and equipment as of December 31,
2025 and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%">Buildings</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">89,341,079</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">90,526,337</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Leasehold improvements</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,790,749</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,092,972</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Machinery and equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">144,739,898</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">155,981,969</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Office equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,529,257</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,643,593</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Motor vehicles</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">868,261</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">892,295</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">246,269,244</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">260,137,166</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Impairment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(17,375,954</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(17,218,817</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(49,834,489</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(54,697,005</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Carrying amount</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">179,058,801</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">188,221,344</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended March 31, 2025 and 2026, the Company
incurred depreciation expense of $2,068,756 and $3,480,831 respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the course of the Company’s strategic
review of its operations, the Company assessed the recoverability of the carrying value of the Company’s property, plant and equipment.
The impairment charge, if any, represented the excess of carrying amounts of the Company’s property, plant and equipment over the
estimated discounted cash flows expected to be generated by the Company’s production facilities. The Company believes that there
was no impairment during the three months ended March 31, 2025 and 2026.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property, plant and equipment as of December 31,
2025 and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%">Buildings</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">89,341,079</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">90,526,337</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Leasehold improvements</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,790,749</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">10,092,972</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Machinery and equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">144,739,898</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">155,981,969</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Office equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,529,257</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,643,593</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Motor vehicles</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">868,261</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">892,295</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">246,269,244</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">260,137,166</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Impairment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(17,375,954</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(17,218,817</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(49,834,489</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(54,697,005</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Carrying amount</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">179,058,801</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">188,221,344</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
89341079
90526337
8790749
10092972
144739898
155981969
2529257
2643593
868261
892295
246269244
260137166
17375954
17218817
49834489
54697005
179058801
188221344
2068756
3480831
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>7.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Construction in Progress</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Construction in progress as of December 31, 2025
and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Construction in progress</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">19,914,272</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">14,723,373</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Prepayment for acquisition of property, plant and equipment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,132,149</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,966,416</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Carrying amount</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">32,046,421</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">29,689,789</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Construction in progress as of December 31, 2025
and March 31, 2026 mainly comprised capital expenditures for the construction of the facilities and production lines of CBAK Power, Nanjing
CBAK, Hitrans and Anhui.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the three months ended March 31, 2025 and
2026, the Company capitalized interest of $91,289 and <span style="-sec-ix-hidden: hidden-fact-61">nil</span> respectively, to the cost of construction in progress. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Construction in progress as of December 31, 2025
and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Construction in progress</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">19,914,272</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">14,723,373</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Prepayment for acquisition of property, plant and equipment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,132,149</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,966,416</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Carrying amount</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">32,046,421</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">29,689,789</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
19914272
14723373
12132149
14966416
32046421
29689789
91289
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>8.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Long-term investments, net</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Long-term investments as of December 31, 2025 and March 31, 2026, consisted
of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Investments in equity method investees</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,839,890</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,867,569</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Investments in non-marketable equity</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">645,690</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">655,404</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,485,580</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,522,973</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following is the carrying value of the long-term investments:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31, 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31, 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Carrying<br/> Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Economic Interest</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Economic Interest</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="text-decoration:underline">Investments in equity method investees</span></td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; width: 52%; text-align: left">Zhejiang Shengyang Renewable Resources Technology Co., Ltd. (a)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,839,890</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">26</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,867,569</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">26</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; ">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline; text-align: left">Investments in non-marketable equity (b)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Hunan DJY Technology Co., Ltd</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">645,690</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">655,404</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(a)</span></td> <td><span style="font-size: 10pt"><span style="text-decoration:underline">Investments in Zhejiang Shengyang Renewable Resources Technology Co., Ltd.</span></span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Balance as of January 1, 2025</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,625,793</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Income from investment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">145,097</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">69,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td>Balance as of December 31, 2025</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,839,890</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Income from investment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-62">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,679</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Balance as of March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,867,569</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In September 27, 2023, Hitrans, entered into an
Equity Transfer Contract (the “Equity Transfer Contract”) with Mr. Shengyang Xu, pursuant to which Hitrans will initially
acquire a 26% equity interest in Zhejiang Shengyang Renewable Resources Technology Co., Ltd. (“Zhejiang Shengyang”) from Mr.
Xu, an individual who currently holds 97% of Zhejiang Shengyang, for a price of RMB28.6 million (approximately $3.9 million) (the “Initial
Acquisition”). Hitrans shall pay the Initial Acquisition price in two (2) installments as follows: (i) 50% of the price due within
five business days following the execution of the Equity Transfer Contract and satisfaction of other conditions precedent set forth in
the same; and (ii) the remaining 50% of the price due within five business days following Mr. Xu successful transfer to Hitrans of the
26% equity interest in Zhejiang Shengyang. Within fifteen business days after Hitrans has paid 50% of the price, or RMB14.3 million, the
parties shall complete the registration of equity change with the local governmental authorities. Zhejiang Shengyang is a material supplier
of Hitrans since June 2020. On November 6, 2023, Hitrans completed the registration of 26% equity interest of Zhejiang Shengyang.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company recorded share of income of $55,125
and <span style="-sec-ix-hidden: hidden-fact-63">nil</span> from the investment in Zhejiang Shengyang for the three months ended March 31, 2025 and 2026, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">And within three months following the Initial
Acquisition, Mr. Xu shall transfer an additional 44% equity interest in Zhejiang Shengyang to Hitrans at the same price per share as that
of the Initial Acquisition (the “Follow-on Acquisition”). The parties shall enter into another agreement to detail the terms
of the Follow-on Acquisition. As of the date of this report, the Follow-on Acquisition was not completed. The management team of Hitrans
is currently in negotiations with Mr. Xu regarding a potential postponement of the payment and equity transfer.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%; border-spacing: 0px;"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left">(c)</td><td style="text-align: justify"><span style="text-decoration:underline">Investments in non-marketable equity</span></td>
</tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%">Cost</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,282,618</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,301,914</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt">Impairment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(636,928</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(646,510</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Carrying amount</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">645,690</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">655,404</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 21, 2021, CBAK Power, along with Shenzhen
BAK Power Battery Co., Ltd (BAK SZ), Shenzhen Asian Plastics Technology Co., Ltd (SZ Asian Plastics) and Xiaoxia Liu (collectively the
“Investors”), entered into an investment agreement with Junxiu Li, Hunan Xintao New Energy Technology Partnership, Xingyu
Zhu, and Jiangsu Saideli Pharmaceutical Machinery Manufacturing Co., Ltd for an investment in Hunan DJY Technology Co., Ltd (“DJY”),
a privately held company. CBAK Power has paid $1.40 million (RMB9 million) to acquire 9.74% of the equity interests of DJY.
CBAK Power along with other three new investors has appointed one director on behalf of the Investors to the Board of Directors of DJY.
DJY is unrelated third party of the Company engaging in in research and development, production and sales of products and services to
lithium battery positive cathode materials producers, including the raw materials, fine ceramics, equipment and industrial engineering.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 28, 2022, Nanjing CBAK along with
Shenzhen Education for Industry Investment Co., Ltd. and Wenyuan Liu, an individual investor, set up Nanjing CBAK Education For Industry
Technology Co., Ltd (“CBAK Education”) with a registered capital of RMB5 million (approximately $0.7 million), in which each
party holding 10%, 60% and 30% equity interests of CBAK Education, respectively. The investment is for training skillful workforce for
Nanjing CBAK. CBAK Education commenced its operation in 2023, <span style="-sec-ix-hidden: hidden-fact-64">nil</span> capital contribution was made by Nanjing CBAK as of the report
date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Non-marketable equity securities are investments
in privately held companies without readily determinable market value. The Company measures investments in non-marketable equity securities
without a readily determinable fair value using a measurement alternative that measures these securities at the cost method minus impairment,
if any, plus or minus changes resulting from observable price changes on a non-recurring basis. The fair value of non-marketable equity
securities that have been remeasured due to impairment are classified within Level 3. The Company adjusts the carrying value of non-marketable
equity securities which have been remeasured during the period and recognize resulting gains or losses as a component of other operating
income (expense), net. <span style="-sec-ix-hidden: hidden-fact-65"><span style="-sec-ix-hidden: hidden-fact-66">No</span></span> impairment was recorded on the non-marketable equity securities for the three months ended March 31, 2025 and
2026.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Long-term investments as of December 31, 2025 and March 31, 2026, consisted
of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Investments in equity method investees</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,839,890</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,867,569</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Investments in non-marketable equity</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">645,690</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">655,404</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,485,580</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,522,973</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
1839890
1867569
645690
655404
2485580
2522973
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following is the carrying value of the long-term investments:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31, 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31, 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Carrying<br/> Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Economic Interest</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Carrying Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Economic Interest</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="text-decoration:underline">Investments in equity method investees</span></td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; width: 52%; text-align: left">Zhejiang Shengyang Renewable Resources Technology Co., Ltd. (a)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,839,890</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">26</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,867,569</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">26</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; ">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline; text-align: left">Investments in non-marketable equity (b)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Hunan DJY Technology Co., Ltd</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">645,690</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">655,404</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(a)</span></td> <td><span style="font-size: 10pt"><span style="text-decoration:underline">Investments in Zhejiang Shengyang Renewable Resources Technology Co., Ltd.</span></span></td></tr> </table>
1839890
0.26
1867569
0.26
645690
655404
<span style="font-size: 10pt"><span style="text-decoration:underline">Investments in Zhejiang Shengyang Renewable Resources Technology Co., Ltd.</span></span><table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Balance as of January 1, 2025</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,625,793</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Income from investment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">145,097</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">69,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td>Balance as of December 31, 2025</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,839,890</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Income from investment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-62">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,679</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Balance as of March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,867,569</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
1625793
-145097
-69000
1839890
-27679
1867569
0.26
0.97
28600000
3900000
0.50
0.50
0.26
0.50
14300000
0.26
55125
0.44
<span style="text-decoration:underline">Investments in non-marketable equity</span><table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%">Cost</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,282,618</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,301,914</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt">Impairment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(636,928</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(646,510</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Carrying amount</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">645,690</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">655,404</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
1282618
1301914
636928
646510
645690
655404
1400000
9000000
0.0974
5000000
700000
0.10
0.60
0.30
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>9.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Lease</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(a)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Prepaid land use rights</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">Prepaid land</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">lease <br/> payments</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Balance as of January 1, 2025</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11,075,973</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Addition for the year</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,099,537</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Amortization charge for the year</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(331,189</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">464,543</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Balance as of December 31, 2025</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,308,864</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Amortization charge for the period</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(87,931</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">185,002</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt">Balance as of March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">12,405,935</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August 2014 and November 2021, the Company
acquired land use rights to build a factory of the Company in Dalian and Zhejiang, PRC.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Yuanchuang acquired a land use right on May 13,
2025 to build a factory in Anhui, PRC for cathode materials manufacturing.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Lump sum payments were made upfront to acquire
the leased land from the owners with lease periods of 36 to 50 years, and no ongoing payments will be made under the terms of these land
leases.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Amortization expenses of the prepaid land use
rights were $78,305 and $87,931 for the three months ended March 31, 2025 and 2026 respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-hidden: hidden-fact-83"><span style="-sec-ix-hidden: hidden-fact-84">No</span></span> impairment loss was made to the carrying amounts
of the prepaid land use right for the three months ended March 31, 2025 and 2026. </p><table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: top">
<td style="width: 0.25in"><span style="font-size: 10pt">(b)</span></td>
<td style="text-align: justify"><span style="font-size: 10pt">Operating lease </span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 6, 2021, Nanjing CBAK entered into
a lease agreement for warehouse space in Nanjing with a three year term, commencing on April 15, 2021 and expiring on April 14, 2024.
The monthly rental payment is approximately RMB97,743 ($14,146) per month. The lease was renewed for one year with a monthly rental
of RMB86,913 (approximately $11,907) to May 14, 2025 and further extend for three years with a monthly rental of RMB94,156 (approximately
$12,983) from May 14, 2025 to May 14, 2028.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 1, 2021, Hitrans entered into a lease
agreement with liquid gas supplier for a five year term for supplying liquid nitrogen and oxygen, commencing on July 1, 2021. The monthly
rental payment is approximately RMB5,310 ($773) per month.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 9, 2021, Hitrans entered into a lease
agreement for extra staff quarters spaces in Zhejiang with a three year term, commencing on December 10, 2021 and expiring on December
9, 2024. The monthly rental payment is approximately RMB10,400 ($1,514) per month for the first year, RMB10,608 ($1,544) and RMB 10,820
($1,575) per month from the second year and third year, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 1, 2022, Hitrans entered into a lease
agreement for extra staff quarters spaces in Zhejiang with a five year term, commencing on March 1, 2022 and expiring on February 28,
2027. The monthly rental payment is approximately RMB15,840 ($2,306) per month for the first year, with 2% increase per year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 20, 2022, CBAK Power entered into a
lease agreement for staff quarters spaces in Dalian with a three year term, commencing on October 20, 2022 and expiring on October 19,
2025. The monthly rental payment is RMB61,905 ($9,012) per month.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 20, 2022, Hitrans entered into a lease
agreement for extra staff quarters spaces in Zhejiang with a five year term commencing on December 20, 2022 and expiring on December 19,
2027. The monthly rental payment is RMB52,000 ($7,570) per month for the first year, with 2% increase per year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 20, 2023, Hitrans entered into another
lease agreement for extra staff quarters spaces in Zhejiang with a three year term commencing on May 1, 2023 and expiring on April 30,
2026. The monthly rental payment is RMB28,000 ($3,860) per month. On July 1, 2024, Hitrans entered into an amendment to early terminate
the lease and entered into a new lease for a period of two years from July 1, 2024 to June 30, 2026. The monthly rental payment is RMB14,000
($1,995) per month.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nanjing CBAK entered into a lease agreement for
office and factory spaces in Nanjing for a period of one year, commencing on August 1, 2023 and expiring on July 31, 2024. The monthly
rental payment is approximately RMB160,743 ($22,649) per month. The lease was renewed for three years to August 31, 2027 with the same
monthly rental.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBAK Shangqiu entered into a lease agreement for
staff quarters spaces in Shangqiu with a six-year term commencing on October 1, 2023 and expiring on September 30, 2029. The monthly rental
payment is approximately RMB11,400 ($1,584) per month. On January 1, 2025, CBAK Shangqiu entered into an amendment to reduce the leased
space and shorten the lease term to December 31, 2025. The new monthly rental is RMB7,717 ($1,003) per month.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBAK Shangqiu entered into a lease agreement for
manufacturing and factory spaces in Shangqiu with a term of six years, commencing on January 1, 2024 to December 31, 2029. The monthly
rental payment is RMB265,487 ($36,769) per month. The landlord unconditionally forgave the accrued annual rent due to unsatisfied performance
from the leasing spaces. The Company recognized the forgiveness as gains in 2025.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 1, 2024, Hitrans entered into a lease
agreement with liquid gas supplier for forty-five months for supplying liquid nitrogen until December 11, 2027. The monthly rental payment
is approximately RMB19,309 ($2,674) per month.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 26, 2024, Hitrans entered into a lease
agreement with liquid gas supplier for a five-year term for supplying liquid argon to April 25, 2029. The monthly rental payment is approximately
RMB1,062 ($146) per month.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nanjing CBAK entered into a lease agreement for
staff quarters spaces in Nanjing from March 1, 2024 to February 28, 2026. The monthly rental is RMB22,155 ($3,081) per month. On March
1, 2025, the month rental was reduced to RMB19,936 ($2,740) per month. </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBAK Shangqiu entered into a lease agreement for
staff quarters spaces in Shangqiu from May 16, 2024 to December 31, 2029 for a quarter rental of RMB19,404 ($2,765).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nanjing CBAK entered into another lease for staff
quarters spaces in Nanjing from June 1, 2024 to May 31, 2025. The monthly rental payment is RMB39,633 ($5,511) per month.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">BAK Asia entered into a lease for office in Hong
Kong from June 16, 2025 to June 30, 2028. The monthly rental payment was HKD10,000 ($1,290) per month.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBAK Energy California entered into a lease for
office in California from January 1, 2026 to January 31, 2028. The monthly rental was $2,716 for the first calendar year and will be $2,798
from the second year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Operating lease expenses for the three months
ended March 31, 2025 and 2026 for the capitation agreement was as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31, <br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31, <br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Operating lease cost – straight line</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">308,290</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">321,463</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(c)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Company as lessee - <span style="-sec-ix-hidden: hidden-fact-81"><span style="-sec-ix-hidden: hidden-fact-82">Finance lease</span></span></span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 33pt"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Property, plant and equipment, at cost</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,924,746</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,988,614</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Accumulated depreciation</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,569,405</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,975,677</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Impairment</td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,355,341</td><td style="text-align: left">)</td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,012,937</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Property, plant and equipment, net under finance lease</td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-67">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-68">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Finance lease liabilities, current</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,307,170</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,124,717</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Finance lease liabilities, non-current</td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-69">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">97,281</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Total finance lease liabilities</td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,307,170</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,221,998</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 33pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The components of finance lease expenses for the three months ended
March 31, 2025 and 2026 were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">For the three months<br/>
ended March
31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td>Finance lease cost:</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Depreciation of assets</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-70"> -</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-71">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Interest of lease liabilities</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-72">-</div></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">7,917</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Total lease expenses</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-73">-</div></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">7,917</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following is a schedule, by years, of maturities of lease liabilities
as of March 31, 2026:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: center; font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">Operating<br/>
leases</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="text-align: center; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: center; font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">Finance<br/>
leases</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%">Remainder of 2026</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,210,390</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,848,718</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">2027</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">951,285</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">389,610</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2028</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">569,173</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-76">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">2029</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">471,140</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-77">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2030</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">460,854</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-78">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-79">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-80">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Total undiscounted cash flows</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,662,842</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,238,328</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Less: imputed interest</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(255,007</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(16,330</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Present value of lease liabilities</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,407,835</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,221,998</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Lease term and discount rate:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31, <br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold">Weighted-average remaining lease term (years)</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Land use rights</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">36.3</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">36.0</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.13</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.90</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Finance lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.92</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.85</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Weighted-average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Land use rights</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-74; font-size: 10pt">Nil</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-75; font-size: 10pt">Nil</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.19</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.30</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Finance lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.98</td><td style="text-align: left">%</td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p>
<p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Supplemental cash flow information related to leases where the Company
was the lessee for the three months ended March 31, 2025 and 2026 was as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">For the three
months ended<br/>
March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 2.5pt">Operating cash outflows from operating assets</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">137,184</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">212,219</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<span style="font-size: 10pt">Prepaid land use rights</span><table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">Prepaid land</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">lease <br/> payments</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Balance as of January 1, 2025</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11,075,973</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Addition for the year</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,099,537</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Amortization charge for the year</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(331,189</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">464,543</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Balance as of December 31, 2025</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,308,864</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Amortization charge for the period</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(87,931</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">185,002</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt">Balance as of March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">12,405,935</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
11075973
1099537
331189
464543
12308864
87931
185002
12405935
P36Y
P50Y
78305
87931
P3Y
2024-04-14
97743
14146
P1Y
86913
11907
94156
12983
P5Y
5310
773
P3Y
2024-12-09
10400
1514
10608
1544
10820
1575
P5Y
2027-02-28
15840
2306
0.02
P3Y
2025-10-19
61905
9012
P5Y
2027-12-19
52000
7570
0.02
P3Y
28000
3860
P2Y
14000
1995
160743
22649
P3Y
2029-09-30
11400
1584
7717
1003
P6Y
265487
36769
19309
2674
Hitrans entered into a lease
agreement with liquid gas supplier for a five-year term for supplying liquid argon to April 25, 2029.
1062
146
22155
3081
19936
2740
19404
2765
39633
5511
10000
1290
2716
2798
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Operating lease expenses for the three months
ended March 31, 2025 and 2026 for the capitation agreement was as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31, <br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31, <br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Operating lease cost – straight line</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">308,290</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">321,463</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table><span style="font-size: 10pt">Company as lessee - <span style="-sec-ix-hidden: hidden-fact-81"><span style="-sec-ix-hidden: hidden-fact-82">Finance lease</span></span></span><table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Property, plant and equipment, at cost</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,924,746</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">6,988,614</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Accumulated depreciation</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,569,405</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,975,677</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Impairment</td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,355,341</td><td style="text-align: left">)</td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(4,012,937</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Property, plant and equipment, net under finance lease</td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-67">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-68">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Finance lease liabilities, current</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,307,170</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,124,717</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Finance lease liabilities, non-current</td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-69">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">97,281</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Total finance lease liabilities</td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,307,170</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,221,998</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 33pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The components of finance lease expenses for the three months ended
March 31, 2025 and 2026 were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">For the three months<br/>
ended March
31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td>Finance lease cost:</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Depreciation of assets</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-70"> -</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-71">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Interest of lease liabilities</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-72">-</div></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">7,917</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Total lease expenses</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-73">-</div></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">7,917</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Lease term and discount rate:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31, <br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold">Weighted-average remaining lease term (years)</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Land use rights</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">36.3</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">36.0</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.13</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.90</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Finance lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.92</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.85</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Weighted-average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Land use rights</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-74; font-size: 10pt">Nil</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-75; font-size: 10pt">Nil</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Operating lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.19</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.30</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Finance lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.98</td><td style="text-align: left">%</td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p>
<p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Supplemental cash flow information related to leases where the Company
was the lessee for the three months ended March 31, 2025 and 2026 was as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">For the three
months ended<br/>
March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 2.5pt">Operating cash outflows from operating assets</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">137,184</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">212,219</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
308290
321463
4924746
6988614
2569405
2975677
-2355341
-4012937
1307170
2124717
97281
1307170
2221998
7917
7917
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following is a schedule, by years, of maturities of lease liabilities
as of March 31, 2026:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="text-align: center; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: center; font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">Operating<br/>
leases</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="text-align: center; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: center; font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">Finance<br/>
leases</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%">Remainder of 2026</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,210,390</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,848,718</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">2027</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">951,285</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">389,610</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2028</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">569,173</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-76">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">2029</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">471,140</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-77">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2030</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">460,854</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-78">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-79">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-80">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Total undiscounted cash flows</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,662,842</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,238,328</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Less: imputed interest</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(255,007</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(16,330</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt">Present value of lease liabilities</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3,407,835</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,221,998</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
1210390
1848718
951285
389610
569173
471140
460854
3662842
2238328
255007
16330
3407835
2221998
P36Y3M18D
P36Y
P3Y1M17D
P2Y10M24D
P0Y11M1D
P0Y10M6D
0.0419
0.043
0.008
0.0098
137184
212219
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>10.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Intangible Assets, net</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Intangible assets as of December 31, 2025 and
March 31, 2026 consisted of the followings:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>December 31,<br/>
2025</i></b></span></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>March 31,<br/>
2026</i></b></span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 75%"><span style="font-size: 10pt">Computer software at cost</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">175,861</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 9%; text-align: right"><span style="font-size: 10pt">178,506</span></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">Sewage discharge permit</span></td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">1,735,057</span></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">1,761,160</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">1,910,918</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">1,939,666</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">Accumulated amortization</span></td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">(1,839,264</span></td>
<td><span style="font-size: 10pt">)</span></td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">(1,871,357</span></td>
<td><span style="font-size: 10pt">)</span></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt">71,654</span></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt">68,309</span></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Amortization expenses were $116,117 and $4,413
for the three months ended March 31, 2025 and 2026, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total future amortization expenses for finite-lived
intangible assets were estimated as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; text-align: justify"><span style="font-size: 10pt">Remainder of 2026</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 8%; text-align: right"><span style="font-size: 10pt">12,673</span></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><span style="font-size: 10pt">2027</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">10,996</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><span style="font-size: 10pt">2028</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">9,355</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><span style="font-size: 10pt">2029</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">8,941</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><span style="font-size: 10pt">2030</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">8,941</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><span style="font-size: 10pt">Thereafter</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">17,403</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; text-align: justify"><span style="font-size: 10pt">Total</span></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt">68,309</span></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-hidden: hidden-fact-85"><span style="-sec-ix-hidden: hidden-fact-86">No</span></span> impairment loss was made to the carrying amounts
of the intangible assets for the three months ended March 31, 2025 and 2026.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Intangible assets as of December 31, 2025 and
March 31, 2026 consisted of the followings:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>December 31,<br/>
2025</i></b></span></td>
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>March 31,<br/>
2026</i></b></span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 75%"><span style="font-size: 10pt">Computer software at cost</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">175,861</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 9%; text-align: right"><span style="font-size: 10pt">178,506</span></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">Sewage discharge permit</span></td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">1,735,057</span></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">1,761,160</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">1,910,918</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">1,939,666</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">Accumulated amortization</span></td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">(1,839,264</span></td>
<td><span style="font-size: 10pt">)</span></td>
<td> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">(1,871,357</span></td>
<td><span style="font-size: 10pt">)</span></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt">71,654</span></td>
<td> </td>
<td> </td>
<td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt">68,309</span></td>
<td> </td></tr>
</table>
175861
178506
1735057
1761160
1910918
1939666
1839264
1871357
71654
68309
116117
4413
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total future amortization expenses for finite-lived
intangible assets were estimated as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 89%; text-align: justify"><span style="font-size: 10pt">Remainder of 2026</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 8%; text-align: right"><span style="font-size: 10pt">12,673</span></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><span style="font-size: 10pt">2027</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">10,996</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><span style="font-size: 10pt">2028</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">9,355</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><span style="font-size: 10pt">2029</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">8,941</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"><span style="font-size: 10pt">2030</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">8,941</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><span style="font-size: 10pt">Thereafter</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">17,403</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; text-align: justify"><span style="font-size: 10pt">Total</span></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt">68,309</span></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
12673
10996
9355
8941
8941
17403
68309
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>11.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Acquisition of subsidiaries</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 20, 2021, CBAK Power entered into a framework
agreement relating to CBAK Power’s investment in Hitrans, pursuant to which CBAK Power acquires 81.56% of registered equity interests
(or representing 75.57% of paid-up capital) of Hitrans (the “Acquisition Agreement”). The transfer of 81.56% registered equity
interests (representing 75.57% of paid-up capital) of Zhejiang Hitrans to CBAK Power has been registered with the local government and
acquisition was completed on November 26, 2021.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the closing of the Acquisition, CBAK Power
became the largest shareholder of Hitrans holding 81.56% of the Company’s registered equity interests (representing 75.57% of paid-up
capital of the Company). As required by applicable Chinese laws, CBAK Power and Management Shareholders are obliged to make capital contributions
of RMB11.1 million ($1.7 million) and RMB0.4 million ($0.06 million), respectively, for the unpaid portion of Hitrans’s registered
capital in accordance with the articles of association of Hitrans. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company completed the valuations necessary
to assess the fair values of the tangible and intangible assets acquired and liabilities assumed, resulting from which the amount of goodwill
was determined and recognized as of the respective acquisition date. The following table summarizes the estimated aggregate fair values
of the assets acquired and liabilities assumed as of the closing date, November 26, 2021.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left">Cash and bank</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">7,323,654</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Debts product</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,144</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Trade and bills receivable, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,759,688</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td>Inventories</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,616,922</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Prepayments and other receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,384,029</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Income tax recoverable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">47,138</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Amount due from trustee</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,788,931</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Property, plant and equipment, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">21,190,890</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Construction in progress</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,502,757</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Intangible assets, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,957,187</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Prepaid land use rights, noncurrent</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,276,898</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Leased assets, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">48,394</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Deferred tax assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,715,998</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Short term bank loan</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(8,802,402</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Other short term loans – CBAK Power</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(20,597,522</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Trade accounts and bills payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(38,044,776</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Accrued expenses and other payables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(7,439,338</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Deferred government grants</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(290,794</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Land appreciation tax</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(464,162</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Deferred tax liabilities</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(333,824</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left">Net assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29,642,812</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-style: italic; text-align: left; padding-bottom: 1.5pt">Less: Waiver of dividend payable</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,250,181</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Total net assets acquired</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,892,993</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Non-controlling interest (24.43%)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(7,547,158</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Goodwill</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,606,518</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 2.5pt">Total identifiable net assets</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">24,952,353</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The components of the consideration transferred to effect the Acquisition
are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">RMB</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">USD</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; width: 76%; text-align: left">Cash consideration for 60% registered equity interest (representing 54.39% of paid-up capital) of Hitrans from Meidu Graphene</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">118,000,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">18,547,918</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Cash consideration for 21.56% registered equity interest (representing 21.18% of paid-up capital) of Hitrans from Hitrans management</td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">40,744,376</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,404,435</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left">Total Purchase Consideration</td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">158,744,376</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">24,952,353</td><td style="text-align: left"> </td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The transaction resulted in a purchase price allocation
of $1,606,518 to goodwill, representing the financial, strategic and operational value of the transaction to the Company. Goodwill is
attributed to the premium that the Company paid to obtain the value of the business of Hitrans and the synergies expected from the combined
operations of Hitrans and the Company, the assembled workforce and their knowledge and experience in provision of raw materials used in
manufacturing of lithium batteries. The total amount of the goodwill acquired is not deductible for tax purposes and was fully impaired
as of December 31, 2023.</p>
0.8156
0.7557
0.8156
0.7557
0.8156
0.7557
11100000
1700000
400000
60000.00
The following table summarizes the estimated aggregate fair values
of the assets acquired and liabilities assumed as of the closing date, November 26, 2021.<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: left">Cash and bank</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">7,323,654</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Debts product</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,144</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Trade and bills receivable, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,759,688</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td>Inventories</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,616,922</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Prepayments and other receivables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,384,029</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Income tax recoverable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">47,138</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Amount due from trustee</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,788,931</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Property, plant and equipment, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">21,190,890</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Construction in progress</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,502,757</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Intangible assets, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,957,187</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Prepaid land use rights, noncurrent</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,276,898</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Leased assets, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">48,394</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Deferred tax assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,715,998</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Short term bank loan</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(8,802,402</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Other short term loans – CBAK Power</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(20,597,522</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Trade accounts and bills payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(38,044,776</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Accrued expenses and other payables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(7,439,338</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Deferred government grants</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(290,794</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Land appreciation tax</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(464,162</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Deferred tax liabilities</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(333,824</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left">Net assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29,642,812</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-style: italic; text-align: left; padding-bottom: 1.5pt">Less: Waiver of dividend payable</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,250,181</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Total net assets acquired</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">30,892,993</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Non-controlling interest (24.43%)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(7,547,158</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Goodwill</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,606,518</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 2.5pt">Total identifiable net assets</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">24,952,353</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
7323654
3144
37759688
13616922
1384029
47138
11788931
21190890
2502757
1957187
6276898
48394
1715998
8802402
20597522
38044776
7439338
290794
464162
333824
29642812
-1250181
30892993
0.2443
7547158
1606518
24952353
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The components of the consideration transferred to effect the Acquisition
are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">RMB</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">USD</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -0.125in; padding-left: 0.125in; width: 76%; text-align: left">Cash consideration for 60% registered equity interest (representing 54.39% of paid-up capital) of Hitrans from Meidu Graphene</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">118,000,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">18,547,918</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Cash consideration for 21.56% registered equity interest (representing 21.18% of paid-up capital) of Hitrans from Hitrans management</td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">40,744,376</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">6,404,435</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left">Total Purchase Consideration</td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">158,744,376</td><td style="text-align: left"> </td><td> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">24,952,353</td><td style="text-align: left"> </td></tr>
</table>
0.60
0.60
0.5439
0.5439
118000000
18547918
0.2156
0.2156
0.2118
0.2118
40744376
6404435
158744376
24952353
1606518
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>12.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Deposit paid for acquisition of long-term investments</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Deposit paid for acquisition of long-term investments
as of December 31, 2025 and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 2.5pt">Investments in non-marketable equity</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">16,503,014</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">16,751,291</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 27, 2023, Nanjing CBAK New Energy
Technology Co., Ltd. (“Nanjing CBAK”) entered into an Equity Transfer Agreement (the “Equity Transfer Agreement”)
with Shenzhen BAK Battery Co., Ltd. (“SZ BAK”), under which SZ BAK shall sell a five percent (5%) equity interest in Shenzhen
BAK Power Battery Co., Ltd. (“BAK SZ”) to Nanjing CBAK for a purchase price of RMB260 million (approximately $35.7 million)
(the “Target Equity”). Pursuant to the terms of the Equity Transfer Agreement, Nanjing CBAK will pay the Target Equity in
three (3) installments as follows: (i) RMB40 million (approximately $5.5 million) due prior to December 31, 2024; (ii) RMB90 million (approximately
$12.4 million) due prior to September 30, 2024, and (iii) the remaining Target Equity balance of RMB130 million (approximately $17.8 million)
due following SZ BAK’s successful transfer to Nanjing CBAK of the five percent (5%) equity interest in BAK SZ. Upon Nanjing CBAK
having paid RMB130 million of the Target Equity, the parties shall work together to complete the registration of equity change with the
local governmental authorities. The Equity Transfer Agreement may be terminated in writing through negotiation by all parties and the
deposit paid was refundable on demand. The equity transfer process take longer than expected. Nanjing CBAK and SZ BAK have entered into
supplemental agreement on March 7, 2025 to extend the transaction period. The Company has contributed RMB115.8 million (approximately
$16.8 million) as of March 31, 2026 and up to the date of this report.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">SZ BAK and BAK SZ were the Company’s former
subsidiary up to June 30, 2014. Mr. Xiangqian Li, the Company’s former CEO, is the director of SZ BAK and BAK SZ.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company will measure the investments in BAK
SZ as non-marketable equity securities without a readily determinable fair value using a measurement alternative that measures these securities
at the cost method minus impairment, if any, plus or minus changes resulting from observable price changes on a non-recurring basis upon
the completion. The fair value of non-marketable equity securities that have been remeasured due to impairment are classified within Level
3.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Deposit paid for acquisition of long-term investments
as of December 31, 2025 and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 2.5pt">Investments in non-marketable equity</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">16,503,014</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">16,751,291</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
16503014
16751291
0.05
260000000
35700000
40000000
5500000
90000000
12400000
130000000
17800000
0.05
130000000
115800000
16800000
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>13.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Trade and Bills Payable</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Trade and bills payable as of December 31, 2025
and March 31, 2026 consisted of the followings:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Trade payable</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">60,046,427</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">86,325,946</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Bills payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">– Bank acceptance bills</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">91,161,622</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">114,525,647</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt">– Letter of credit</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,137,696</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,169,856</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">153,345,745</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">203,021,449</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All the bills payable are of trading nature and will mature within
one year from the issue date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The bills payable were secured by:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%; border-spacing: 0px;"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">(i)</span></td><td style="text-align: justify"><span style="font-size: 10pt">the Company’s pledged
deposits (Note 2);</span></td>
</tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%; border-spacing: 0px;"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">(ii)</span></td><td style="text-align: justify"><span style="font-size: 10pt">$1.4 million and $6.7 million
of the Company’s bills receivable as of December 31, 2025 and March 31, 2026 (Note 3).</span></td>
</tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%; border-spacing: 0px;"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">(iii)</span></td><td style="text-align: justify"><span style="font-size: 10pt">the Company’s buildings
(Note 6) and prepaid land use rights (Note 9)</span></td>
</tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Trade and bills payable as of December 31, 2025
and March 31, 2026 consisted of the followings:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Trade payable</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">60,046,427</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">86,325,946</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Bills payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">– Bank acceptance bills</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">91,161,622</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">114,525,647</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt">– Letter of credit</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,137,696</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,169,856</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">153,345,745</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">203,021,449</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
60046427
86325946
91161622
114525647
2137696
2169856
153345745
203021449
1400000
6700000
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>14.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Loans</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Bank loans</span>:</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bank borrowings as of December 31, 2025 and March
31, 2026 consisted of the followings:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Short-term bank borrowings</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">28,532,938</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">37,386,698</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Long-term bank borrowings</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,118,628</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,652,360</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">32,651,566</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">45,039,058</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January 2023, Hitrans renewed the banking facilities with Shaoxing
Branch of Bank of Communications Co., Ltd with a maximum amount of RMB160.0 million (approximately $22.1 million) with the term from January
2023 to December 2027. On January 22, 2025, Hitrans and Bank of Communications entered into a new banking facility for another five years
from January 22, 2025 to January 22, 2030 for a maximum guarantee of loan amount to RMB155.8 million (approximately $21.5 million). The
facility was secured by Hitrans’s land use rights and buildings. On October 24, 2025, Hitrans and Bank of Communications renewed
the facility to a maximum guarantee of loan amount to RMB162.0 million (approximately $23.1 million). Under the facility, Hitrans borrowed
RMB155.2 million (approximately $22.4 million) as of March 31, 2026, bearing interest at 2.45% to 3.0% per annum expiring through April
2026 to March 2027.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 9, 2024, Hitrans and China Zheshang Bank
Co., Ltd Shangyu Branch entered into a short-term loan agreement for one year from April 9, 2024 to April 7, 2025 for a maximum loan amount
to RMB5.5 million (approximately $0.8 million) bearing interest rate at 4.05% per annum. Hitrans borrowed RMB5.5 million (approximately
$0.8 million) on the same date. Hitrans early repaid the loan on January 24, 2025.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 29, 2024, Hitrans and Zhejiang Shangyu
Rural Commercial Bank entered into a short-term credit-guaranteed loan agreement for RMB15 million (approximately $2.0 million) with the
term of one year from September 29, 2024 to September 26, 2025 bearing 4.00% interest rate. Hitrans borrowed RMB15 million (approximately
$2.1 million) on the same date. Hitrans repaid the loan on September 26, 2025.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 31, 2024, Hitrans and China Everbright
Bank Co., Ltd Shaoxing Branch entered into a short-term loan agreement for RMB10 million (approximately $1.4 million) with the term of
one year from December 31, 2024 to December 30, 2025 bearing 2.9% interest rate. Hitrans borrowed RMB10 million (approximately $1.4 million)
on the same date. Hitrans repaid the loan on December 30, 2025.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 17, 2025, Hitrans entered into a long-term Maximum Pledge
Agreement with Zhejiang Shangyu Rural Commercial Bank, for the period from January 17, 2025 to September 25, 2027, with a maximum facility
amount of RMB76.56 million (approximately $10.54 million). The facility was secured by the land use right and buildings of Hitrans. Hitrans
has borrowed RMB52.9 million (approximately $7.7 million) as of March 31, 2026, bearing interest rate at 2.41% - 2.96% per annum expiring
through June 2027 to September 2027.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 20, 2025, Nanjing CBAK entered into
an unsecured revolving loan agreement with Bank of Ningbo Co., Ltd. Gaochun Branch with a maximum amount of RMB10 million (approximately
$1.4 million) bearing interest at 2.8% per annum (LPR interest rate -30 bp), with a one-year loan period ending on January 20, 2026.
Nanjing CBAK borrowed RMB10 million (approximately $1.4 million) under this loan agreement on January 20, 2025. Nanjing CBAK early repaid
the loan on September 20, 2025.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 19, 2025, Nanjing CBAK obtained a RMB30 million facility
(approximately $4.2 million) from Jiangsu Gaochun Rural Commercial Bank, with the term from February 19, 2025 to September 23, 2027. The
facility was guaranteed by 100% equity in CBAK Nanjing held by BAK Investment. Nanjing CBAK borrowed RMB29 million (approximately $4.2
million) as of March 31, 2026, bearing interest rate at 2.26% to 2.78% per annum, repayable through May 2026 to March 2027.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 25, 2025, Hitrans entered into a
short-term factoring loan agreement with China Construction Bank Co., Ltd for a maximum amount of RMB10 million (approximately $1.4 million)
for a period of one year from February 28, 2025 to February 27, 2026, bearing interest of 3.7% per annum. Hitrans borrowed RMB10 million
(approximately $1.4 million) on the same date. Hitrans repaid the factoring loan in February 2026.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Hitrans entered into another short-term factoring loan agreement with
China Construction Bank Co., Ltd for a maximum amount of RMB10 million (approximately $1.4 million) for a period of one year from November
28, 2025 to November 27, 2026, bearing interest of 3.1% per annum. Hitrans borrowed RMB10 million (approximately $1.4 million) on the
same date. Hitrans borrowed another RMB9.3 million (approximately $1.3 million), bearing interest of 3.0% per annum for one year from
March 5, 2026 to March 5, 2027.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 28, 2025, Nanjing CBAK entered into a
short-term loan agreement with Agricultural Bank of China Co., Limited for RMB12 million (approximately $1.7 million) from June 28, 2025
to June 26, 2026, bearing interest 2.60% per annum. Nanjing CBAK borrowed RMB12 million (approximately $1.7 million) on the same date.
Nanjing CBAK early repaid the loan on July 18, 2025.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 30, 2025, CBAK Power obtained a banking
facility from China Guangfa Bank Co., Ltd with a maximum amount of RMB100 million (approximately $14 million) for a term to June 12,
2026 for short-term borrowings and issuance of acceptance bills to settle materials suppliers, guaranteed by Power’s buildings
and pledged deposits. CBAK Power borrowed HKD10 million (approximately $1.4 million) from the above facility, bearing interest at 2.65%
per annum, repayable on August 14, 2026. CBAK Power early repaid the loan on November 14, 2025.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBAK Power has borrowed a series of acceptance
bills totaling RMB51.5 million (approximately $7.45 million) for various terms expiring through April to September 2026, which was secured
by CBAK Power’s buildings and pledged deposit of RMB45.9 million (approximately $6.6 million) (note 2).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 30, 2025, Hitrans entered into a short-term loan agreement
with Industrial Bank Co., Ltd for RMB10 million (approximately $1.5 million) for a period of one year from July 31, 2025 to July 30, 2026
bearing interest of 3% per annum. Hitrans borrowed RMB10 million (approximately $1.4 million) on July 31, 2025.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 13, 2025, CBAK Power obtained a banking facility from China
Construction Bank for RMB78.0 million (approximately $11.3 million) for a period to August 13, 2035. On August 29, 2025, CBAK Power drawn
RMB10 million (approximately $1.4 million) from the facility for a period of one year, bearing interest of 2.2% per annum, repayable on
August 21, 2026. On February 11, 2026, CBAK Power drawn RMB15 million (approximately $2.2 million) from the facility for a period of one
year, bearing interest of 2.2% per annum, repayable on February 11, 2027.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 17, 2025, Nanjing BFD entered into a short-term loan agreement
with Bank of China Co., Limited for RMB10 million (approximately $1.4 million) from December 17, 2025 to December 16, 2026, bearing interest
2.30% per annum. The loan was guaranteed by CBAK Nanjing. Nanjing BFD borrowed RMB10 million (approximately $1.4 million) on the same
date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 27, 2026, Nanjing CBAK obtained a bank loan from Ningbo Bank
Co., Ltd Nanjing Gaochun Branch for RMB10 million (approximately $1.4 million), for the period from March 27, 2026 to November 3, 2026,
bearing interest of 3.0% per annum. The loan did not require any security or guarantee from Nanjing CBAK.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBAK Power borrowed a series of acceptance bills from China Zheshang
Bank Co., Ltd. Shenyang Branch totaling RMB60.3 million (approximately $8.7 million) for various terms expiring through April to September
2026, which was secured by CBAK Power’s pledged deposits of RMB32.8 million (approximately $4.8 million) (note 2), and CBAK Power’s pledged
bills receivable of RMB11.2 million (approximately $1.6 million) (note 3).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nanjing CBAK borrowed a series of acceptance bills from China Zheshang
Bank Co., Ltd. Shenyang Branch totaling RMB69.5 million (approximately $10.1 million) for various terms expiring through April to August
2026, which was secured by Nanjing CBAK’s pledged deposit of RMB62.4 million (approximately $9.0 million) (note 2), and Nanjing CBAK’s
pledged bills receivable of RMB7.4 million (approximately $1.1 million) (note 3).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Hitrans borrowed a series of acceptance bills
from China Zheshang Bank Co., Ltd totaling RMB36.7 million (approximately $5.3 million) for various terms expiring through April to June
2026, which was secured by Hitrans’s pledged deposit of RMB36.7 million (approximately $5.3 million) (note 2).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nanjing CBAK borrowed a series of acceptance
bills from Bank of Nanjing totaling RMB89.0 million (approximately $12.9 million) for various terms expiring through April to September
2026, which was secured by Nanjing CBAK’s pledged deposit of RMB79.0 million (approximately $11.4 million) (note 2) and the balance
guaranteed by 100% equity of CBAK Nanjing held by BAK Investment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nanjing CBAK borrowed a series of acceptance
bills from Bank of Ningbo totaling RMB10.2 million (approximately $1.5 million) for various terms expiring in July 2026, which was secured
by Nanjing CBAK’s pledged deposit of RMB10.2 million (approximately $1.5 million) (note 2).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Hitrans borrowed a series of acceptance bills
from Bank of Communications Co., Ltd. Shangyu Branch totaling RMB67.9 million (approximately $9.8 million) expiring through May to August
2026, which was secured by Hitrans’s pledged deposit of RMB67.9 million (approximately $9.8 million) (note 2).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Hitrans borrowed a series of acceptance bills
from Zhejiang Shangyu Rural Commercial Bank Co., Ltd totaling RMB80.0 million (approximately $11.6 million) expiring through May to September
2026, which was secured by Hitrans’s pledged deposit of RMB80.0 million (approximately $11.6 million) (note 2).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBAK Power borrowed a series of acceptance bills
from Industrial and Commercial Bank of China totaling RMB71.9 million (approximately $10.4 million) expiring through April to September
2026, which was secured by CBAK Power’s pledged deposit of RMB72.0 million (approximately $10.4 million) (note 2).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBAK Power borrowed a series of acceptance bills from China Construction
Bank Co., Ltd totaling RMB100.0 million (approximately $14.5 million) expiring through June to August 2026.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Hitrans borrowed a series of acceptance bills
from Industrial Bank totaling RMB2.1 million (approximately $0.3 million) expiring in July 2026, which was secured by Hitrans’s
pledged deposit of RMB2.1 million (approximately $0.3 million) (note 2).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nanjing CBAK borrowed a series of acceptance
bills from Agricultural Bank of China totaling RMB29.7 million (approximately $4.3 million) expiring through June to September 2026,
which was secured by Nanjing CBAK’s pledged deposit of RMB9.7 million (approximately $1.4 million) (note 2) and the balance guaranteed
by 100% equity in CBAK Naning held by BAK Investment.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nanjing CBAK obtained serval letter of credit
from Bank of Ningbo totaled RMB15.0 million (approximately $2.2 million) for settlement of materials purchase for a period of one year
expiring through September to November 2026, which was secured by Nanjing CBAK’s pledged deposit of RMB15.0 million (approximately
$2.2 million) (note 2). </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Hitrans borrowed a series of acceptance bill from Bank of Ningbo of
RMB20 million (approximately $2.9 million) expiring through June to August 2026, which was secured by Hitran’s bills receivables
of RMB20 million (approximately $2.9 million) (note 3).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Haisheng borrowed a series of acceptance bills from China Zheshang
Bank Co., Ltd totaling RMB57.3 million (approximately $8.3 million) for various terms expiring through July to September 2026, which was
secured by Haisheng’s pledged deposit of RMB57.3 million (approximately $8.3 million) (note 2).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Hitrans borrowed a series of acceptance bills
from China CITIC Bank Shaoxing Branch totaling RMB32 million (approximately $4.6 million) for various terms expiring through August to
September 2026, which was secured by Hitrans’s pledged deposits of RMB32 million (approximately $4.6 million) (note 2).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Haisheng borrowed a series of acceptance bills from China CITIC Bank
Shaoxing Branch totaling RMB13.9 million (approximately $2.0 million) for various terms expiring through July to September 2026, which
was secured by Haisheng’s pledged deposits of RMB6.4 million (approximately $0.9 million) (note 2) and bills receivables of RMB7.5
million (approximately $1.1 million) (note 3).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The facilities were also secured by the Company’s
assets with the following carrying amounts:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="white-space: nowrap; font-weight: bold; font-style: italic"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="white-space: nowrap; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Pledged deposits (note 2)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">67,376,113</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">88,130,092</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Bills receivables (note 3)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,449,358</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,690,322</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Right-of-use assets (note 9a)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,019,028</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,283,270</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Buildings (note 6)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">43,200,786</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">45,180,265</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">117,045,285</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">151,283,949</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2026, the Company had $25.0 million unutilized committed
banking facilities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended March 31, 2025
and 2026, interest of $246,501 and $252,420 were incurred on the Company’s bank borrowings, respectively. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Other short-term loans</span>:</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other short-term loans as of December 31, 2025
and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">Note</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td>Advance from related parties</td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left">– Mr. Xiangqian Li, the Company’s Former CEO</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: center">(a)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">100,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">100,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">– Mr. Yunfei Li, the Company’s Former CEO</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center; padding-bottom: 1.5pt">(b)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">157,236</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">156,593</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">257,236</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">256,593</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Advances from unrelated third party</td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">– Mr. Wenwu Yu</td><td> </td>
<td style="text-align: center">(c)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,401</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,422</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">– Ms. Longqian Peng</td><td> </td>
<td style="text-align: center">(c)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,262</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,371</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">– Suzhou Zhengyuanwei Needle Ce Co., Ltd</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center; padding-bottom: 1.5pt">(d)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">71,257</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">72,329</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">79,920</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">81,122</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">337,156</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">337,715</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(a)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Advances from Mr. Xiangqian Li, the Company’s former CEO, was unsecured, non-interest bearing and repayable on demand.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(b)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Advances from Mr. Yunfei Li, the Company’s former CEO, was unsecured, non-interest bearing and repayable on demand.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(c)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Advances from unrelated third parties were unsecured, non-interest bearing and repayable on demand.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(d)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">In 2019, the Company entered into a short term loan agreement with
Suzhou Zhengyuanwei Needle Ce Co., Ltd, an unrelated party to loan RMB0.6 million (approximately $0.1 million), bearing annual interest
rate of 12%. As of March 31, 2026, loan amount of RMB0.5 million ($72,329) remained outstanding.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended March 31, 2025
and 2026, interest of $2,062 and <span style="-sec-ix-hidden: hidden-fact-87">nil</span> were incurred on the Company’s borrowings from unrelated parties, respectively. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Bank borrowings as of December 31, 2025 and March
31, 2026 consisted of the followings:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Short-term bank borrowings</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">28,532,938</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">37,386,698</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Long-term bank borrowings</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,118,628</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,652,360</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">32,651,566</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">45,039,058</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
28532938
37386698
4118628
7652360
32651566
45039058
160000000
22100000
155800000
21500000
162000000
23100000
155200000
22400000
0.0245
0.03
5500000
800000
0.0405
5500000
800000
15000000
2000000
P1Y
0.04
15000000
2100000
10000000
1400000
P1Y
0.029
10000000
1400000
76560000
10540000
52900000
7700000
0.0241
0.0296
10000000
1400000
0.028
10000000
1400000
30000000
4200000
1
29000000
4200000
0.0226
0.0278
10000000
1400000
P1Y
0.037
10000000
1400000
10000000
1400000
P1Y
0.031
10000000
1400000
9300000
1.3
0.03
12000000
1700000
0.026
12000000
1700000
100000000
14000000
10000000
1400000
0.0265
51500000
7450000
45900000
6600000
10000000
1500000
P1Y
0.03
10000000
1400000
78000000
11300000
10000000
1400000
P1Y
0.022
15000000
2200000
P1Y
0.022
10000000
1400000
0.023
10000000
1400000
1400000
0.03
60300000
8700000
32.8
4.8
11.2
1.6
69500000
10100000
62400000
9000000
7.4
1.1
36700000
5300000
36.7
5.3
89000000
12900000
79000000
11400000
1
10200000
1.5
10200000
1.5
67900000
9800000
67900000
9800000
80000000
11600000
80000000
11600000
71900000
10400000
72000000
10400000
100000000
14500000
2100000
300000
2100000
300000
29700000
4300000
9700000
1400000
1
15000000
2200000
P1Y
15
2200000
20000000
2900000
20000000
2900000
57300000
8300000
57300000
8.3
32000000
4600000
32
4.6
13.9
2000000
6400000
0.009
7.5
1.1
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The facilities were also secured by the Company’s
assets with the following carrying amounts:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="white-space: nowrap; font-weight: bold; font-style: italic"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="white-space: nowrap; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Pledged deposits (note 2)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">67,376,113</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">88,130,092</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Bills receivables (note 3)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,449,358</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,690,322</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Right-of-use assets (note 9a)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,019,028</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11,283,270</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Buildings (note 6)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">43,200,786</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">45,180,265</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">117,045,285</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">151,283,949</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
67376113
88130092
1449358
6690322
5019028
11283270
43200786
45180265
117045285
151283949
25000000
246501
252420
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other short-term loans as of December 31, 2025
and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap"> </td>
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">Note</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td>Advance from related parties</td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left">– Mr. Xiangqian Li, the Company’s Former CEO</td><td style="width: 1%"> </td>
<td style="width: 11%; text-align: center">(a)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">100,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">100,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">– Mr. Yunfei Li, the Company’s Former CEO</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center; padding-bottom: 1.5pt">(b)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">157,236</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">156,593</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">257,236</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">256,593</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Advances from unrelated third party</td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">– Mr. Wenwu Yu</td><td> </td>
<td style="text-align: center">(c)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,401</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,422</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">– Ms. Longqian Peng</td><td> </td>
<td style="text-align: center">(c)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,262</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,371</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">– Suzhou Zhengyuanwei Needle Ce Co., Ltd</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center; padding-bottom: 1.5pt">(d)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">71,257</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">72,329</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: center; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">79,920</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">81,122</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">337,156</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">337,715</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(a)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Advances from Mr. Xiangqian Li, the Company’s former CEO, was unsecured, non-interest bearing and repayable on demand.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(b)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Advances from Mr. Yunfei Li, the Company’s former CEO, was unsecured, non-interest bearing and repayable on demand.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(c)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Advances from unrelated third parties were unsecured, non-interest bearing and repayable on demand.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(d)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">In 2019, the Company entered into a short term loan agreement with
Suzhou Zhengyuanwei Needle Ce Co., Ltd, an unrelated party to loan RMB0.6 million (approximately $0.1 million), bearing annual interest
rate of 12%. As of March 31, 2026, loan amount of RMB0.5 million ($72,329) remained outstanding.</span></td></tr> </table>
100000
100000
157236
156593
257236
256593
1401
1422
7262
7371
71257
72329
79920
81122
337156
337715
600000
100000
0.12
500000
72329
2062
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in"><span style="font-size: 10pt"><b>15.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Accrued Expenses and Other Payables</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accrued expenses and other payables as of December
31, 2025 and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Construction costs payable</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">14,311,903</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11,597,122</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Equipment purchase payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">51,082,600</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,297,177</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Liquidated damages*</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,210,119</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,210,119</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Accrued staff costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,633,536</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,500,859</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Customer deposits</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,816,577</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">18,471,053</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Deferred revenue</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,841,985</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,068,523</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Accrued expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,161,542</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,714,389</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Interest payables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">82,157</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">83,242</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Other tax payables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,318,816</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,099,884</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Dividend payable to non-controlling interest to Hitrans</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,271,109</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,290,232</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Payables to suppliers for non-operating agency-based service</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,632,714</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,402,034</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Derivatives liabilities (note 19)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">728,423</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,287,144</td><td style="text-align: left"></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Other payable</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">560,467</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">651,230</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">113,651,948</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">122,673,008</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">*</span></td> <td style="text-align: justify"><span style="font-size: 10pt">On August 15, 2006, the SEC declared effective a post-effective amendment that the Company had filed on August 4, 2006, terminating the effectiveness of a resale registration statement on Form SB-2 that had been filed pursuant to a registration rights agreement with certain shareholders to register the resale of shares held by those shareholders. The Company subsequently filed Form S-1 for these shareholders. On December 8, 2006, the Company filed its Annual Report on Form 10-K for the year ended September 30, 2006 (the “2006 Form 10-K”). After the filing of the 2006 Form 10-K, the Company’s previously filed registration statement on Form S-1 was no longer available for resale by the selling shareholders whose shares were included in such Form S-1. Under the registration rights agreement, those selling shareholders became eligible for liquidated damages from the Company relating to the above two events totaling approximately $1,051,000. As of December 31, 2025 and March 31, 2026, <span style="-sec-ix-hidden: hidden-fact-88"><span style="-sec-ix-hidden: hidden-fact-89">no</span></span> liquidated damages relating to both events have been paid.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 9, 2007, the Company completed a
private placement for the gross proceeds to the Company of $13,650,000 by selling 3,500,000 shares of common stock at the price of $3.90
per share. Roth Capital Partners, LLC acted as the Company’s exclusive financial advisor and placement agent in connection with
the private placement and received a cash fee of $819,000. The Company may have become liable for liquidated damages to certain shareholders
whose shares were included in a resale registration statement on Form S-3 that the Company filed pursuant to a registration rights agreement
that the Company entered into with such shareholders in November 2007. Under the registration rights agreement, among other things, if
a registration statement filed pursuant thereto was not declared effective by the SEC by the 100th calendar day after the closing of
the Company’s private placement on November 9, 2007, or the “Effectiveness Deadline”, then the Company would be liable
to pay partial liquidated damages to each such investor of (a) 1.5% of the aggregate purchase price paid by such investor for the shares
it purchased on the one month anniversary of the Effectiveness Deadline; (b) an additional 1.5% of the aggregate purchase price paid
by such investor every thirtieth day thereafter (pro-rated for periods totaling less than thirty days) until the earliest of the effectiveness
of the registration statement, the ten-month anniversary of the Effectiveness Deadline and the time that the Company is no longer required
to keep such resale registration statement effective because either such shareholders have sold all of their shares or such shareholders
may sell their shares pursuant to Rule 144 without volume limitations; and (c) 0.5% of the aggregate purchase price paid by such investor
for the shares it purchased in the Company’s November 2007 private placement on each of the following dates: the ten-month anniversary
of the Effectiveness Deadline and every thirtieth day thereafter (prorated for periods totaling less than thirty days), until the earlier
of the effectiveness of the registration statement and the time that the Company no longer is required to keep such resale registration
statement effective because either such shareholders have sold all of their shares or such shareholders may sell their shares pursuant
to Rule 144 without volume limitations. Such liquidated damages would bear interest at the rate of 1% per month (prorated for partial
months) until paid in full. </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 21, 2007, pursuant to the registration
rights agreement, the Company filed a registration statement on Form S-3, which was declared effective by the SEC on May 7, 2008. As
a result, the Company estimated liquidated damages amounting to $561,174 for the November 2007 registration rights agreement. As of December
31, 2025 and March 31, 2026, the Company had settled the liquidated damages with all the investors and the remaining provision of approximately
$159,000 was included in other payables and accruals.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accrued expenses and other payables as of December
31, 2025 and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Construction costs payable</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">14,311,903</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">11,597,122</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Equipment purchase payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">51,082,600</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">50,297,177</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Liquidated damages*</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,210,119</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,210,119</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Accrued staff costs</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,633,536</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,500,859</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Customer deposits</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12,816,577</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">18,471,053</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Deferred revenue</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,841,985</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,068,523</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Accrued expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,161,542</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,714,389</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Interest payables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">82,157</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">83,242</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Other tax payables</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,318,816</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,099,884</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Dividend payable to non-controlling interest to Hitrans</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,271,109</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,290,232</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Payables to suppliers for non-operating agency-based service</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,632,714</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,402,034</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Derivatives liabilities (note 19)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">728,423</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,287,144</td><td style="text-align: left"></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Other payable</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">560,467</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">651,230</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">113,651,948</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">122,673,008</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">*</span></td> <td style="text-align: justify"><span style="font-size: 10pt">On August 15, 2006, the SEC declared effective a post-effective amendment that the Company had filed on August 4, 2006, terminating the effectiveness of a resale registration statement on Form SB-2 that had been filed pursuant to a registration rights agreement with certain shareholders to register the resale of shares held by those shareholders. The Company subsequently filed Form S-1 for these shareholders. On December 8, 2006, the Company filed its Annual Report on Form 10-K for the year ended September 30, 2006 (the “2006 Form 10-K”). After the filing of the 2006 Form 10-K, the Company’s previously filed registration statement on Form S-1 was no longer available for resale by the selling shareholders whose shares were included in such Form S-1. Under the registration rights agreement, those selling shareholders became eligible for liquidated damages from the Company relating to the above two events totaling approximately $1,051,000. As of December 31, 2025 and March 31, 2026, <span style="-sec-ix-hidden: hidden-fact-88"><span style="-sec-ix-hidden: hidden-fact-89">no</span></span> liquidated damages relating to both events have been paid.</span></td></tr> </table>
14311903
11597122
51082600
50297177
1210119
1210119
8633536
9500859
12816577
18471053
15841985
16068523
3161542
3714389
82157
83242
1318816
1099884
1271109
1290232
2632714
6402034
728423
2287144
560467
651230
113651948
122673008
1051000
13650000
3500000
3.9
819000
(a) 1.5% of the aggregate purchase price paid by such investor for the shares
it purchased on the one month anniversary of the Effectiveness Deadline; (b) an additional 1.5% of the aggregate purchase price paid
by such investor every thirtieth day thereafter (pro-rated for periods totaling less than thirty days) until the earliest of the effectiveness
of the registration statement, the ten-month anniversary of the Effectiveness Deadline and the time that the Company is no longer required
to keep such resale registration statement effective because either such shareholders have sold all of their shares or such shareholders
may sell their shares pursuant to Rule 144 without volume limitations; and (c) 0.5% of the aggregate purchase price paid by such investor
for the shares it purchased in the Company’s November 2007 private placement on each of the following dates: the ten-month anniversary
of the Effectiveness Deadline and every thirtieth day thereafter (prorated for periods totaling less than thirty days), until the earlier
of the effectiveness of the registration statement and the time that the Company no longer is required to keep such resale registration
statement effective because either such shareholders have sold all of their shares or such shareholders may sell their shares pursuant
to Rule 144 without volume limitations. Such liquidated damages would bear interest at the rate of 1% per month (prorated for partial
months) until paid in full.
561174
159000
159000
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>16.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Balances and Transactions with Related Parties</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The principal related parties with which the
Company had transactions during the years presented are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; width: 54%"><span style="font-size: 10pt"><b>Name of Entity or Individual</b></span></td> <td style="width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 45%; text-align: center"><span style="font-size: 10pt"><b>Relationship with the Company</b></span></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><span style="font-size: 10pt">New Era Group Zhejiang New Energy Materials Co., Ltd.</span></td> <td> </td> <td><span style="font-size: 10pt">Shareholder of Company’s subsidiary</span></td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt">Shenzhen Bak New Material Technology Co., Ltd</span></td> <td> </td> <td><span style="font-size: 10pt">Note a</span></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Zhengzhou BAK Battery Co., Ltd (“Zhenghzhou BAK”)</span></td> <td> </td> <td><span style="font-size: 10pt">Note b, d</span></td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt">Shenzhen BAK Battery Co., Ltd (“SZ BAK”)</span></td> <td> </td> <td><span style="font-size: 10pt">Former subsidiary and refer to Note c, d</span></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Shenzhen BAK Power Battery Co., Ltd (“BAK SZ”)</span></td> <td> </td> <td><span style="font-size: 10pt">Former subsidiary and refer to Note c, d</span></td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Zhejiang Shengyang Renewable Resources Technology Co., Ltd. (“Zhejiang Shengyang”)</span></td> <td> </td> <td style="text-align: left; vertical-align: top"><span style="font-size: 10pt">Note f</span></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Fuzhou BAK Battery Co., Ltd (“Fuzhou Bak”)</span></td> <td> </td> <td><span style="font-size: 10pt">Note e, g</span></td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt">Zhengzhou BAK Electronics Co., Ltd</span></td> <td> </td> <td><span style="font-size: 10pt">Note e, h</span></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Zhengzhou BAK New Energy Vehicle Co., Ltd</span></td> <td> </td> <td><span style="font-size: 10pt">Note i</span></td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt">Shenzhen BAK Medical Technology Co., Ltd (“SZ BAK Medical”)</span></td> <td> </td> <td><span style="font-size: 10pt">Note e, j</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(a)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">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.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(b)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">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.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(c)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">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.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(d)</span></td> <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An immediate family member of Ms. Xiuzhu Li has major interests and
is the director of these entities.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(e)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">An immediate family member of Ms. Xiuzhu Li has major interests in serval entities set forth in the above table.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(f)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Hitrans has 26% equity interest in Zhejiang Shengyang (note 10).</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(g)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Zhengzhou BAK has 51% equity interest in Fuzhou BAK. </span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(h)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">BAK SZ has 100% equity interests in Zhengzhou BAK Electronics Co., Ltd.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(j)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">SZ BAK was the former shareholder of Zhengzhou BAK New Energy Vehicle Co., Ltd to April 10, 2023. </span></td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td><span style="font-size: 10pt">(j)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">SZ BAK Medical is a wholly owned subsidiary of SZ BAK.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><span style="text-decoration:underline">Related party transactions</span></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company entered into the following significant related party transactions:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -9pt"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">For the three months ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -9pt; padding-left: 9pt">Purchase of batteries from Zhengzhou BAK</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,132</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,292,077</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Purchase (purchase return) of batteries from Fuzhou BAK</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,369</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(152,143</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Purchase of materials from Zhejiang Shengyang</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,055,686</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">538,894</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sub-contracting services provided by Fuzhou BAK</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-90">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">432,762</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Purchase of materials from SZ BAK Medical</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-91">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">310,813</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales of cathode raw materials to Zhengzhou BAK</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,150,068</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,139,436</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales of cathode raw materials to BAK SZ</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,620</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,172</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales of cathode raw materials to Zhengzhou BAK Electronics Co., Ltd</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">176,512</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">278,381</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales of cathode raw materials to Zhengzhou BAK in relation to non-operating agency-based service</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,168,931</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-92">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales of cathode raw materials to Zhengzhou BAK Electronics Co., Ltd in relation to non-operating agency-based service</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">125,680</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-93">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales of cathode raw materials to BAK SZ in relation to non-operating agency-based service</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,748</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-94">-</div></td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -9pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><span style="text-decoration:underline">Related party balances</span></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Apart from the above, the Company recorded the
following significant related party balances as of December 31, 2025 and March 31, 2026:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Receivables from former subsidiary</span></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">December 31, <br/> 2025</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">March 31,<br/> 2026</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 2.5pt">Receivables from BAK SZ</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">4,389</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">2,459</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Balance as of December 31, 2025 and March 31,
2026 represented trade receivable for sales of cathode raw materials to BAK SZ.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Other balances due from/ (to) related parties</span></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 2.5pt">Trade receivable, net – Zhengzhou BAK (i)</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">4,836,152</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">8,468,034</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 2.5pt">Trade receivable, net – Zhengzhou BAK Electronics Co., Ltd. (i)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">237,446</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">314,160</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Trade payable, net – Zhengzhou BAK (ii)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,453,603</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">7,189,235</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 2.5pt">Trade payable, net – Zhejiang Shengyang (iii)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,136,860</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">823,876</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Trade payable, net - Shenzhen BAK New Material Technology Co., Ltd (iii)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">164,887</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">167,367</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 2.5pt">Trade payable, net – SZ BAK Medical (iii)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">428,572</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">611,973</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Deposit paid for acquisition of long-term investments – BAK SZ (note 12)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">16,503,014</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">16,751,291</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 2.5pt">Dividend payable to non-controlling interest of Hitrans (note 15)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,271,109</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,290,232</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(i)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Representing trade receivable from sales of cathode raw materials. </span></td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td><span style="font-size: 10pt">(ii)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Representing trade payables on purchase of batteries. </span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(iii)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Representing trade payables on purchase of materials for manufacturing </span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Payables to a former subsidiary</span></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payables to a former subsidiary as of December
31, 2025 and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 2.5pt">Payables to BAK SZ</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">407,506</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">402,708</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Balance as of December 31, 2025 and March 31,
2026 consisted of payables for purchase of inventories.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The principal related parties with which the
Company had transactions during the years presented are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; width: 54%"><span style="font-size: 10pt"><b>Name of Entity or Individual</b></span></td> <td style="width: 1%"> </td> <td style="border-bottom: black 1.5pt solid; width: 45%; text-align: center"><span style="font-size: 10pt"><b>Relationship with the Company</b></span></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><span style="font-size: 10pt">New Era Group Zhejiang New Energy Materials Co., Ltd.</span></td> <td> </td> <td><span style="font-size: 10pt">Shareholder of Company’s subsidiary</span></td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt">Shenzhen Bak New Material Technology Co., Ltd</span></td> <td> </td> <td><span style="font-size: 10pt">Note a</span></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Zhengzhou BAK Battery Co., Ltd (“Zhenghzhou BAK”)</span></td> <td> </td> <td><span style="font-size: 10pt">Note b, d</span></td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt">Shenzhen BAK Battery Co., Ltd (“SZ BAK”)</span></td> <td> </td> <td><span style="font-size: 10pt">Former subsidiary and refer to Note c, d</span></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Shenzhen BAK Power Battery Co., Ltd (“BAK SZ”)</span></td> <td> </td> <td><span style="font-size: 10pt">Former subsidiary and refer to Note c, d</span></td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Zhejiang Shengyang Renewable Resources Technology Co., Ltd. (“Zhejiang Shengyang”)</span></td> <td> </td> <td style="text-align: left; vertical-align: top"><span style="font-size: 10pt">Note f</span></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Fuzhou BAK Battery Co., Ltd (“Fuzhou Bak”)</span></td> <td> </td> <td><span style="font-size: 10pt">Note e, g</span></td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt">Zhengzhou BAK Electronics Co., Ltd</span></td> <td> </td> <td><span style="font-size: 10pt">Note e, h</span></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><span style="font-size: 10pt">Zhengzhou BAK New Energy Vehicle Co., Ltd</span></td> <td> </td> <td><span style="font-size: 10pt">Note i</span></td></tr> <tr style="vertical-align: bottom"> <td><span style="font-size: 10pt">Shenzhen BAK Medical Technology Co., Ltd (“SZ BAK Medical”)</span></td> <td> </td> <td><span style="font-size: 10pt">Note e, j</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(a)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">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.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(b)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">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.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(c)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">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.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(d)</span></td> <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An immediate family member of Ms. Xiuzhu Li has major interests and
is the director of these entities.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(e)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">An immediate family member of Ms. Xiuzhu Li has major interests in serval entities set forth in the above table.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.45pt; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(f)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Hitrans has 26% equity interest in Zhejiang Shengyang (note 10).</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(g)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Zhengzhou BAK has 51% equity interest in Fuzhou BAK. </span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(h)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">BAK SZ has 100% equity interests in Zhengzhou BAK Electronics Co., Ltd.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(j)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">SZ BAK was the former shareholder of Zhengzhou BAK New Energy Vehicle Co., Ltd to April 10, 2023. </span></td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td><span style="font-size: 10pt">(j)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">SZ BAK Medical is a wholly owned subsidiary of SZ BAK.</span></td></tr> </table>
Shareholder of Company’s subsidiary
Note a
Note b, d
Former subsidiary and refer to Note c, d
Former subsidiary and refer to Note c, d
Note f
Note e, g
Note e, h
Note i
Note e, j
0.4632
0.2914
0.51
0.26
0.51
1
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company entered into the following significant related party transactions:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -9pt"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">For the three months ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -9pt; padding-left: 9pt">Purchase of batteries from Zhengzhou BAK</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,132</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,292,077</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Purchase (purchase return) of batteries from Fuzhou BAK</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,369</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(152,143</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Purchase of materials from Zhejiang Shengyang</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,055,686</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">538,894</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sub-contracting services provided by Fuzhou BAK</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-90">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">432,762</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Purchase of materials from SZ BAK Medical</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-91">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">310,813</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales of cathode raw materials to Zhengzhou BAK</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,150,068</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,139,436</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales of cathode raw materials to BAK SZ</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,620</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,172</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales of cathode raw materials to Zhengzhou BAK Electronics Co., Ltd</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">176,512</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">278,381</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales of cathode raw materials to Zhengzhou BAK in relation to non-operating agency-based service</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,168,931</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-92">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales of cathode raw materials to Zhengzhou BAK Electronics Co., Ltd in relation to non-operating agency-based service</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">125,680</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-93">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales of cathode raw materials to BAK SZ in relation to non-operating agency-based service</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,748</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-94">-</div></td><td style="text-align: left"> </td></tr>
</table>
4132
5292077
3369
-152143
2055686
538894
432762
310813
1150068
8139436
4620
2172
176512
278381
2168931
125680
4748
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Receivables from former subsidiary</span></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">December 31, <br/> 2025</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">March 31,<br/> 2026</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 2.5pt">Receivables from BAK SZ</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">4,389</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">2,459</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
4389
2459
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Other balances due from/ (to) related parties</span></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 2.5pt">Trade receivable, net – Zhengzhou BAK (i)</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">4,836,152</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">8,468,034</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 2.5pt">Trade receivable, net – Zhengzhou BAK Electronics Co., Ltd. (i)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">237,446</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">314,160</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Trade payable, net – Zhengzhou BAK (ii)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,453,603</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">7,189,235</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 2.5pt">Trade payable, net – Zhejiang Shengyang (iii)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,136,860</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">823,876</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Trade payable, net - Shenzhen BAK New Material Technology Co., Ltd (iii)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">164,887</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">167,367</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 2.5pt">Trade payable, net – SZ BAK Medical (iii)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">428,572</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">611,973</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Deposit paid for acquisition of long-term investments – BAK SZ (note 12)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">16,503,014</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">16,751,291</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 2.5pt">Dividend payable to non-controlling interest of Hitrans (note 15)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,271,109</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,290,232</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(i)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Representing trade receivable from sales of cathode raw materials. </span></td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: top"> <td><span style="font-size: 10pt">(ii)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Representing trade payables on purchase of batteries. </span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">(iii)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Representing trade payables on purchase of materials for manufacturing </span></td></tr> </table>
4836152
8468034
237446
314160
4453603
7189235
1136860
823876
164887
167367
428572
611973
16503014
16751291
1271109
1290232
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payables to a former subsidiary as of December
31, 2025 and March 31, 2026 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 2.5pt">Payables to BAK SZ</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">407,506</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">402,708</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
-407506
-402708
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>17.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Deferred Government Grants</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-hidden: hidden-fact-95">Deferred government</span> grants as of December 31,
2025 and March 31, 2026 consist of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Total government grants</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">10,774,034</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">10,789,296</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Less: Current portion</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(578,606</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(587,312</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Non-current portion</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,195,428</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,201,984</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Government grants that are received in advance
are deferred and recognized in the consolidated statements of operations over the period necessary to match them with the costs that
they are intended to compensate. Government grants in relation to the achievement of stages of research and development projects are
recognized in the consolidated statements of operations when amounts have been received and all attached conditions have been met. Non-refundable
grants received without any further obligations or conditions attached are recognized immediately in the consolidated statements of operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 17, 2014, the Company received a subsidy
of RMB46,150,000 pursuant to an agreement with the Management Committee dated July 2, 2013 for costs of land use rights and to be used
to construct the new manufacturing site in Dalian. Part of the facilities had been completed and was operated in July 2015 and the Company
has initiated amortization on a straight-line basis over the estimated useful lives of the depreciable facilities constructed thereon.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 23, 2020, BAK Asia, the Company wholly-owned
Hong Kong subsidiary, entered into a framework investment agreement with Jiangsu Gaochun Economic Development Zone Development Group
Company (“Gaochun EDZ”), pursuant to which the Company intended to develop certain lithium battery projects that aim to have
a production capacity of 8Gwh. Gaochun EDZ agreed to provide various support to facilitates the development and operation of the projects.
Since 2020, the Company accumulatively received RMB61.0 million (approximately $8.7 million) subsidy from Gaochun EDZ and government
to facilitate the construction works and equipment in Nanjing. The Company recognized RMB10 million ($1.6 million) as other income after
moving the Company facilities to Nanjing in 2020. For the remaining subsidy, the Company has initiated amortization on a straight-line
basis over the estimated useful lives of the depreciable facilities constructed thereon.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 12, 2024, Hitrans received RMB11.42
million ($1.6 million) from Development and Reform Bureau of Shangyu District, Shaoxing for the purpose to facilitate the development
of new production line. Hitrans received additional RMB20.3 million ($2.8 million) on March 26, 2025 from Development and Reform Bureau
of Shangyu District, Shaoxing for the same nature. The Company will recognize the subsidies as income or offsets them against the related
expenditures when there are no present or future obligations for the subsidized projects.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Government grants were recognized in the consolidated statements of
operations as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center; white-space: nowrap"> </td><td style="padding-bottom: 1.5pt; text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">For the three months<br/>
ended March 31,</td><td style="padding-bottom: 1.5pt; text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; white-space: nowrap"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%">Cost of revenues</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">126,183</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">132,501</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Research and development expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,300</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,766</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">General and administrative expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,062</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,265</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Other income (expenses), net</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">143,963</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,044,683</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">283,508</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,191,215</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-hidden: hidden-fact-95">Deferred government</span> grants as of December 31,
2025 and March 31, 2026 consist of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">December 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">March 31,</td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Total government grants</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">10,774,034</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">10,789,296</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Less: Current portion</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(578,606</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(587,312</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt">Non-current portion</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,195,428</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">10,201,984</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
10774034
10789296
578606
587312
10195428
10201984
46150000
61000000
8700000
10000000
1600000
11420000
1600000
20300000
2800000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Government grants were recognized in the consolidated statements of
operations as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center; white-space: nowrap"> </td><td style="padding-bottom: 1.5pt; text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">For the three months<br/>
ended March 31,</td><td style="padding-bottom: 1.5pt; text-align: center; white-space: nowrap; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; white-space: nowrap"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="text-align: center; white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%">Cost of revenues</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">126,183</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">132,501</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Research and development expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,300</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,766</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">General and administrative expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,062</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,265</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Other income (expenses), net</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">143,963</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,044,683</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">283,508</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,191,215</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
126183
132501
9300
9766
4062
4265
143963
1044683
283508
1191215
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>18.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Product Warranty Provisions</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company maintains a policy of providing after
sales support for certain of its new EV and LEV battery products introduced since October 1, 2015 by way of a warranty program. The limited
cover covers a period of six to twenty four months for battery cells, a period of twelve to twenty seven months for battery modules for
light electric vehicles (LEV) such as electric bicycles, and a period of three years to eight years (or 120,000 or 200,000 km if reached
sooner) for battery modules for electric vehicles (EV). The Company accrues an estimate of its exposure to warranty claims based on both
current and historical product sales data and warranty costs incurred. The Company assesses the adequacy of its recorded warranty liability
at least annually and adjusts the amounts as necessary. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Warranty expense is recorded as a component of
sales and marketing expenses. Accrued warranty activity consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Balance at beginning of year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">444,114</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">785,689</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Warranty costs incurred</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(54,579</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(425,958</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Provision for the year/ period</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">370,557</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">524,527</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">25,597</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,021</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Balance at end of year/ period</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">785,689</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">896,279</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Less: Current portion</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(339,136</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(482,978</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Non-current portion</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">446,553</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">413,301</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Warranty expense is recorded as a component of
sales and marketing expenses. Accrued warranty activity consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Balance at beginning of year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">444,114</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">785,689</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Warranty costs incurred</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(54,579</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(425,958</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Provision for the year/ period</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">370,557</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">524,527</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Foreign exchange adjustment</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">25,597</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,021</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Balance at end of year/ period</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">785,689</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">896,279</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Less: Current portion</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(339,136</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(482,978</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Non-current portion</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">446,553</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">413,301</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
444114
785689
54579
425958
370557
524527
25597
12021
785689
896279
339136
482978
446553
413301
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in"><span style="font-size: 10pt"><b>19.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Financial derivatives</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company uses a variety of derivative financial
instruments and physical contracts to manage its exposure to foreign currency and commodity price fluctuations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Foreign currency forward and option contracts</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company enters into non-designated hedges under the authoritative
guidance for derivatives and hedging to manage the exposure of foreign exchange rate fluctuations. The Company adjusts its non-designated
hedges quarterly. The nominal value of approximately $42.2 million and $53.2 million contracts with maturities of three to twelve months
were held as of December 31, 2025 and March 31, 2026, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Commodity contracts</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company entered into commodity contracts
to manage the exposure of raw materials price fluctuations, resulting in recognized gain of <span style="-sec-ix-hidden: hidden-fact-100">nil</span> and $197,849 for the three months ended
March 31, 2025 and 2026, respectively. The change in fair value of the commodity contracts of <span style="-sec-ix-hidden: hidden-fact-101">nil</span> and $416,276 were recorded in Derivatives
assets as of December 31, 2025 and March 31, 2026, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2026, the Company held $548,271
(note 2) cash collateral to secure commodity contracts with a total nominal value of approximately $3.7 million. The commodity contracts
are set to mature within two to six months from March 31, 2026. The Company did <span style="-sec-ix-hidden: hidden-fact-102">not</span> hold any outstanding commodity contracts as of December
31, 2025.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of the financial derivatives as
of December 31, 2025 and March 31, 2026 were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">December 31, <br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">March 31, <br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-weight: bold; text-align: left">Derivatives not designed as hedging instruments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">Derivatives assets – Commodity contracts, prepayments and other receivables (note 5)</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-96">-</div></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">416,535</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">Derivatives liabilities - Foreign exchange contracts, accrued expenses and other payables (note 15)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">728,423</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">2,287,144</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The gain (loss) related to the Company’s
derivative instruments for the three months period ended March 31, 2025 and 2026 were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">For the three months <br/> ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Foreign currency forward and option contracts</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-97">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(1,520,380</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Commodity contract</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-98">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">614,125</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-99">-</div></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(906,255</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Refer to note 22 for detailed disclosures regarding
fair value measurements.</p>
42200000
53.2
three
twelve
197849
416276
548271
3700000
two
six
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of the financial derivatives as
of December 31, 2025 and March 31, 2026 were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">December 31, <br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">March 31, <br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-weight: bold; text-align: left">Derivatives not designed as hedging instruments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">Derivatives assets – Commodity contracts, prepayments and other receivables (note 5)</td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-96">-</div></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">416,535</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">Derivatives liabilities - Foreign exchange contracts, accrued expenses and other payables (note 15)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">728,423</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">2,287,144</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
416535
728423
2287144
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The gain (loss) related to the Company’s
derivative instruments for the three months period ended March 31, 2025 and 2026 were as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">For the three months <br/> ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Foreign currency forward and option contracts</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-97">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(1,520,380</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Commodity contract</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-98">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">614,125</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-99">-</div></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(906,255</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
-1520380
614125
-906255
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><span style="font-size: 10pt"><b>20.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: top">
<td style="width: 24px"> </td>
<td style="width: 24px"><span style="font-size: 10pt"><i>(a)</i></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><i>Income taxes in the consolidated statements of comprehensive loss(income)</i></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s provision for income taxes
expenses consisted of:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">For the three months<br/>
ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">PRC income tax</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"></td><td style="width: 1%; text-align: left"></td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Current income tax expenses, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-103">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt">7,426</span></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Deferred income tax expenses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-104">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-105; font-size: 10pt">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"></td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-106">-</div></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">7,426</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>United States Tax</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBAK is a Nevada corporation that is subject
to U.S. federal tax and state tax. On December 31, 2017 the U.S. government enacted comprehensive tax legislation commonly referred to
as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including,
but not limited to, (1) reducing the U.S. federal corporate income tax rate from 35 percent to 21 percent; (2) requiring companies to
pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal corporate
income taxes on dividends from foreign subsidiaries; (4) providing modification to subpart F provisions and new taxes on certain foreign
earnings such as Global Intangible Low-Taxed Income (GILTI). Except for the one-time transition tax, most of these provisions go into
effect starting January 1, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Global Intangible Low-taxed Income (GILTI)
is a new provision introduced by the Tax Cuts and Jobs Act. U.S. shareholders, who are domestic corporations, of controlled foreign corporations
(CFCs) are eligible for up to an 80% deemed paid foreign tax credit (FTC) and a 50% deduction of the current year inclusion with the
full amount of the Section 78 gross-up subject to limitation. This new provision is effective for tax years of foreign corporations beginning
after December 31, 2017. The Company has evaluated whether it has additional provision amount resulted by the GILTI inclusion on current
earnings and profits of its foreign controlled corporations. The Company has made an accounting policy choice of treating taxes due on
future U.S. inclusions in taxable amount related to GILTI as a current period expense when incurred. As of December 31, 2025 and March
31, 2026, the Company does not have any aggregated positive tested income; and as such, does not have additional provision amount recorded
for GILTI tax.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBAK Energy California is subject to US federal income tax at a statutory
rate of 21% and California state franchise tax at a flat rate of 8.84%.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="-sec-ix-hidden: hidden-fact-110"><span style="-sec-ix-hidden: hidden-fact-111">No</span></span> provision for income taxes in the United States
has been made as CBAK and CBAK Energy California had no taxable income for the three months ended March 31, 2025 and 2026.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Hong Kong Tax</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s subsidiaries in Hong Kong
are subject to Hong Kong profits tax rate of 16.5% and did not have any assessable profits arising in or derived from Hong Kong for the
three months ended March 31, 2025 and 2026, accordingly no provision for Hong Kong profits tax was made in these periods.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>PRC Tax</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The CIT Law in China applies an income tax rate
of 25% to all enterprises but grants preferential tax treatment to High-New Technology Enterprises. CBAK Power was regarded as a “High-new
technology enterprise” pursuant to a certificate jointly issued by the relevant Dalian Government authorities. Under the preferential
tax treatment, CBAK Power was entitled to enjoy a tax rate of 15% for the years from 2024 to 2026 provided that the qualifying conditions
as a High-new technology enterprise were met. Hitrans was regarded as a “High-new technology enterprise” pursuant to a certificate
jointly issued by the relevant Zhejiang Government authorities. Under the preferential tax treatment, Hitrans was entitled to enjoy a
tax rate of 15% for the years from 2024 to 2026 provided that the qualifying conditions as a High-new technology enterprise were met.
Nanjing CBAK was regarded as a “High-new technology enterprise” pursuant to a certificate jointly issued by the relevant
Nanjing Government authorities. Under the preferential tax treatment, Nanjing CBAK and Nanjing BFD were entitled to enjoy a tax rate
of 15% for the years from 2023 to 2025 provided that the qualifying conditions as a High-new technology enterprise were met.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Malaysia Tax</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBAK Malaysia is subject to income tax laws of
Malaysia at the statutory rate of 24%. CBAK Malaysia was newly incorporated on April 30, 2025 and did not have any operations as
of the date of this report. There was no assessable profits arising in or derived from Malaysia for the three months ended March 31,
2026.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A reconciliation of the provision for income
taxes determined at the statutory income tax rate to the Company’s income taxes is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">For the three months<br/> ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Loss before income taxes</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(2,050,982</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(8,954,864</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">United States federal corporate income tax rate</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">21</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">21</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Income tax expenses (credit) computed at United States statutory corporate income tax rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(430,706</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,880,521</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Reconciling items:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Rate differential for PRC earnings</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(55,525</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(326,166</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Tax effect of entity at preferential tax rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">35,016</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">751,259</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Non-deductible (income) expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">133,519</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">162,574</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td>Share based payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,684</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">93</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Utilization of tax loss</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(593,482</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(366,080</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Valuation allowance on deferred tax assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">905,494</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,666,267</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Decrease in opening deferred tax assets resulting from a decrease in applicable tax rate</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-107">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-108"> </div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">Income tax expenses</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-109">-</div></td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">7,426</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: top">
<td style="width: 0.25in"> </td>
<td style="width: 0.25in"><span style="font-size: 10pt"><i>(b)</i></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><i>Deferred tax assets and deferred tax liabilities</i></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The tax effects of temporary differences that
give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2025 and March 31, 2026 are presented
below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31, <br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Deferred tax assets</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Trade receivable</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">662,239</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">676,546</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td>Inventories</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">927,350</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">654,451</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Property, plant and equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,868,073</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,706,650</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Non-marketable equity securities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">95,539</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">96,976</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Equity method investment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">335,398</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">340,444</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Intangible assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">151,340</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">152,025</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Accrued expenses, payroll and others</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">865,885</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">996,679</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Provision for product warranty</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">117,854</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">137,622</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Net operating loss carried forward</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">18,761,298</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,079,128</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Valuation allowance</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(23,659,551</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(24,714,584</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Deferred tax assets, non-current</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">125,425</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">125,937</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left">Deferred tax liabilities, non-current</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">Long-lived assets arising from acquisitions</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">125,425</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">125,937</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2026, the Company’s U.S. entity had net operating
loss carry forwards of $3,812,589. As of March 31, 2026, the Company’s PRC subsidiaries had net operating loss carry forwards of
$71,013,718, which will expire in various years through 2025 to 2034. Management believes it is more likely than not that the Company
will not realize these potential tax benefits as these operations will not generate any operating profits in the foreseeable future. As
a result, a valuation allowance was provided against the full amount of the potential tax benefits.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to the PRC Tax Administration and Collection
Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or its
withholding agent. The statute of limitations extends to five years under special circumstances, which are not clearly defined. In the
case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The impact of an uncertain income tax positions
on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant
tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest
and penalties on income taxes will be classified as a component of the provisions for income taxes.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s provision for income taxes
expenses consisted of:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">For the three months<br/>
ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">PRC income tax</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"></td><td style="width: 1%; text-align: left"></td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Current income tax expenses, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-103">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="font-size: 10pt">7,426</span></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Deferred income tax expenses</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-104">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-105; font-size: 10pt">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"></td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-106">-</div></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">7,426</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
7426
7426
0.35
0.21
0.80
0.50
0.21
0.0884
0.165
0.165
0.25
0.15
0.15
0.15
0.24
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A reconciliation of the provision for income
taxes determined at the statutory income tax rate to the Company’s income taxes is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">For the three months<br/> ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Loss before income taxes</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(2,050,982</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(8,954,864</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">United States federal corporate income tax rate</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">21</td><td style="padding-bottom: 1.5pt; text-align: left">%</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">21</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Income tax expenses (credit) computed at United States statutory corporate income tax rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(430,706</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,880,521</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Reconciling items:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Rate differential for PRC earnings</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(55,525</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(326,166</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Tax effect of entity at preferential tax rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">35,016</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">751,259</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Non-deductible (income) expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">133,519</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">162,574</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td>Share based payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,684</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">93</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Utilization of tax loss</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(593,482</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(366,080</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Valuation allowance on deferred tax assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">905,494</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,666,267</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Decrease in opening deferred tax assets resulting from a decrease in applicable tax rate</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-107">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-108"> </div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">Income tax expenses</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-109">-</div></td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">7,426</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
-2050982
-8954864
0.21
0.21
-430706
-1880521
-55525
-326166
35016
751259
133519
162574
5684
93
-593482
-366080
905494
1666267
7426
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The tax effects of temporary differences that
give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2025 and March 31, 2026 are presented
below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">December 31, <br/> 2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br/> 2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Deferred tax assets</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Trade receivable</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">662,239</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">676,546</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td>Inventories</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">927,350</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">654,451</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Property, plant and equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,868,073</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,706,650</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Non-marketable equity securities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">95,539</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">96,976</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Equity method investment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">335,398</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">340,444</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Intangible assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">151,340</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">152,025</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Accrued expenses, payroll and others</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">865,885</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">996,679</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Provision for product warranty</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">117,854</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">137,622</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Net operating loss carried forward</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">18,761,298</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,079,128</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Valuation allowance</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(23,659,551</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(24,714,584</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Deferred tax assets, non-current</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">125,425</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">125,937</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left">Deferred tax liabilities, non-current</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">Long-lived assets arising from acquisitions</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">125,425</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">125,937</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
662239
676546
927350
654451
1868073
1706650
95539
96976
335398
340444
151340
152025
865885
996679
117854
137622
18761298
20079128
23659551
24714584
125425
125937
125425
125937
3812589
71013718
According to the PRC Tax Administration and Collection
Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or its
withholding agent. The statute of limitations extends to five years under special circumstances, which are not clearly defined. In the
case of a related party transaction, the statute of limitations is ten years.
0.50
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>21.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Statutory reserves</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As stipulated by the relevant laws and regulations
in the PRC, company established in the PRC (the “PRC subsidiary”) is required to maintain a statutory reserve made out of
profit for the year based on the PRC subsidiary’ statutory financial statements which are prepared in accordance with the accounting
principles generally accepted in the PRC. The amount and allocation basis are decided by the director of the PRC subsidiary annually
and is not to be less than 10% of the profit for the year of the PRC subsidiary. The aggregate amount allocated to the reserves will
be limited to 50% of registered capital for certain subsidiaries. Statutory reserve can be used for expanding the capital base of the
PRC subsidiary by means of capitalization issue.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, as a result of the relevant PRC
laws and regulations which impose restriction on distribution or transfer of assets out of the PRC statutory reserve, $3,042,602 representing
the PRC statutory reserve of the subsidiary as of December 31, 2025 and March 31, 2026, are also considered under restriction for distribution.</p>
0.10
0.50
3042602
3042602
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>22.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Fair Value of Financial Instruments</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ASC Topic 820, Fair Value Measurement and
Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price)
in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the
measurement date. This topic also establishes a fair value hierarchy, which requires classification based on observable and unobservable
inputs when measuring fair value. Certain current assets and current liabilities are financial instruments. Management believes their
carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments
and their expected realization and, if applicable, their current interest rates are equivalent to interest rates currently available.
The three levels of valuation hierarchy are defined as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"> </td>
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">●</span></td>
<td style="text-align: justify"><span style="font-size: 10pt">Level 1 inputs to the valuation methodology are quoted prices (unadjusted)
for identical assets or liabilities in active markets.</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"> </td>
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">●</span></td>
<td style="text-align: justify"><span style="font-size: 10pt">Level 2 inputs to the valuation methodology include quoted prices for
similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or
indirectly, for substantially the full term of the financial instruments.</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"> </td>
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">●</span></td>
<td style="text-align: justify"><span style="font-size: 10pt">Level 3 inputs to the valuation methodology are unobservable and significant
to the fair value measurement.</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of commodity contracts was determined
by quoted market prices in active markets within level 1 (Note 19).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of foreign currency option was
determined using the Black-Scholes model, with level 2 inputs (Note 19).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of share options was determined
using the Binomial Model, with level 3 inputs (Note 24).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The carrying amounts of financial assets and
liabilities, such as cash and cash equivalents, pledged deposits, trade accounts and bills receivable, other receivables, balances with
former subsidiaries, notes payable, other short-term loans, short-term and long-term bank loans and other payables approximate their
fair values because of the short maturity of these instruments or the rate of interest of these instruments approximate the market rate
of interest.</p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>23.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Employee Benefit Plan</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Full time employees of the Company in the PRC
participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing
fund and other welfare benefits are provided to the employees. The Company accrues for these benefits based on certain percentages of
the employees’ salaries, up to a maximum amount specified by the local government. The total employee benefits expensed as incurred
were $787,754 (RMB5,729,888) and $2,078,873 (RMB14,400,144) for the three months ended March 31, 2025 and 2026, respectively.</p>
787754
5729888
2078873
14400144
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>24.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Share-based Compensation</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Restricted Shares and Restricted Share Units</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Restricted shares granted on June 30, 2015</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 12, 2015, the Board of Director approved
the CBAK Energy Technology, Inc. 2015 Equity Incentive Plan (the “2015 Plan”) for Employees, Directors and Consultants of
the Company and its Affiliates. The maximum aggregate number of Shares that may be issued under the Plan is ten million (10,000,000)
Shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 30, 2015, pursuant to the 2015 Plan,
the Compensation Committee of the Company’s Board of Directors granted an aggregate of 690,000 restricted shares of the Company’s
common stock, par value $0.001, to certain employees, officers and directors of the Company with a fair value of $3.24 per share on June
30, 2015. In accordance with the vesting schedule of the grant, the restricted shares will vest in twelve equal quarterly installments
on the last day of each fiscal quarter beginning on June 30, 2015 (i.e. last vesting period: quarter ended March 31, 2018). The Company
recognizes the share-based compensation expenses on a graded-vesting method.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All the restricted shares granted in respect
of the restricted shares granted on June 30, 2015 have been vested on March 31, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2026, there was <span style="-sec-ix-hidden: hidden-fact-130">no</span> unrecognized
stock-based compensation associated with the above restricted shares. As of March 31, 2026, 1,667 vested shares were to be issued.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Restricted shares granted on April 19, 2016</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 19, 2016, pursuant to the Company’s
2015 Plan, the Compensation Committee of the Board of Directors of the Company granted an aggregate of 500,000 restricted shares of the
Company’s common stock, par value $0.001, to certain employees, officers and directors of the Company, of which 220,000 restricted
shares were granted to the Company’s executive officers and directors. There are three types of vesting schedules. First, if the
number of restricted shares granted is below 3,000, the shares will vest annually in 2 equal installments over a two-year period with
the first vesting on June 30, 2017. Second, if the number of restricted shares granted is larger than or equal to 3,000 and is below
10,000, the shares will vest annually in 3 equal installments over a three year period with the first vesting on June 30, 2017. Third,
if the number of restricted shares granted is above or equal to 10,000, the shares will vest semi-annually in 6 equal installments over
a three year period with the first vesting on December 31, 2016. The fair value of these restricted shares was $2.68 per share on April
19, 2016. The Company recognizes the share-based compensation expenses over the vesting period (or the requisite service period) on a
graded-vesting method.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All the restricted shares granted in respect
of the restricted shares granted on April 16, 2016 had been vested on June 30, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2026, there was <span style="-sec-ix-hidden: hidden-fact-131">no</span> unrecognized
stock-based compensation associated with the above restricted shares and 4,167 vested shares were to be issued.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Employees Stock Ownership Program on November
29, 2021</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 29, 2021, pursuant to the Company’s
2015 Plan, the Compensation Committee granted options to obtain an aggregate of 2,750,002 share units of the Company’s common stock
to certain employees, officers and directors of the Company, of which options to obtain 350,000 share units were given to the Company’s
executive officers and directors with an option exercise price of $1.96 based on fair market value. The vesting of shares each year is
subject to certain financial performance indicators. The shares will be vested semi-annually in 10 equal installments over a five year
period with the first vesting on May 30, 2022. The options will expire on the 70-month anniversary of the grant date. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of the stock options granted to
directors of the Company is estimated on the date of the grant using the Binomial Model. The fair value of the options was calculated
using the following assumptions: estimated life of six months to five years, volatility of 106.41%, risk free interest rate of 1.26%,
and dividend yield of 0%. The fair value of 350,000 stock options to directors of the Company was $479,599 at the grant date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of the stock options granted to
certain employees and officers of the Company is estimated on the date of the grant using the Binomial Model. The fair value of the options
was calculated using the following assumptions: estimated life of six months to five years, volatility of 106.41%, risk-free interest
rate of 1.26% and dividend yield of 0%. The fair value of 2,400,002 stock options to certain employees and officers of the Company was
$2,805,624 at the grant date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2026, the granting period of
the options were expired, there was no unrecognized stock-based compensation associated with the above options granted.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Restricted share units granted and stock ownership
program on April 11, 2023</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 11, 2023, pursuant to the Company’s
2015 Plan, the Compensation Committee granted an aggregate of 894,000 restricted share units and 2,124,000 options to certain employees,
officers and directors of the Company, of which 230,000 restricted share units and 460,000 options were granted to the Company’s
executive officers and directors. The restricted share units will vest semi-annually on June 30, 2023 and December 31, 2023. The fair
value of these restricted shares units was $0.95 per share on April 11, 2023. The Company recognizes the share-based compensation expenses
over the vesting period (or the requisite service period) on a graded-vesting method. The option exercise price was $0.9780. The shares
will be vested semi-annually in 4 equal installments over a 2 year period with the first vesting on June 30, 2024. The options will expire
on the 70-month anniversary of the grant date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of the stock options granted to
directors and certain employees and officers of the Company is estimated on the date of the grant using the Binomial Model. The fair
value of the options was calculated using the following assumptions: estimate life of 5.83 years, volatility of 106.59%, risk free interest
rate of 3.51% and dividend yield of 0%. The fair value of options of the Company was $838,190 at the grant date. The Company recorded
$20,249 and <span style="-sec-ix-hidden: hidden-fact-128">nil</span> as share-based compensation expenses in respect of the stock options granted on April 11, 2023 for the three months ended
March 31, 2025 and 2026, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All the restricted share units granted on April
11, 2023 had been vested on December 31, 2024. There was no unrecognized stock-based compensation associated with the above option granted. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-decoration:underline">Restricted share units granted and stock ownership
program on August 22, 2023</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 22, 2023, pursuant to the Company’s
2015 Plan, the Compensation Committee granted an aggregate of 40,000 restricted share units and 160,000 options to employees of the Company.
The restricted share units will vest semi-annually on October 15, 2023 and April 15, 2024. The fair value of these restricted shares units
was $0.88 per share on August 22, 2023. The Company recognizes the share-based compensation expenses over the vesting period (or the requisite
service period) on a graded-vesting method. The option exercise price was $0.8681. The shares will be vested semi-annually in 4 equal
instalments over a two year period with the first vesting on February 15, 2025. The options will expire on the 70-month anniversary of
the grant date.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of the stock options granted to
directors and certain employees and officers of the Company is estimated on the date of the grant using the Binomial Model. The fair
value of the options was calculated using the following assumptions: estimate life of 5.83 years, volatility of 106.34%, risk free interest
rate of 4.47% and dividend yield of 0%. The fair value of options of the Company was $56,521 at the grant date. For the three months
ended March 31, 2025 and 2026, the Company recorded $6,817 and $443, respectively, as share-based compensation expenses in respect of
the stock options granted on August 22, 2023.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2026, there was unrecognized
stock-based compensation $1,565 associated with the above options granted.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stock option activity under the Company’s
stock-based compensation plans is shown below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of<br/> Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Average<br/> Exercise Price<br/> per Share</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Aggregate<br/> Intrinsic<br/> Value*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted <br/> Average<br/> Remaining<br/> Contractual<br/> Term in<br/> Years</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%">Outstanding at January 1, 2026</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">80,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">0.96</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-112">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">0.6</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Exercisable at January 1, 2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,066,458</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.24</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-113"> -</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.5</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-114">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-115">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-116">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-117">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-118">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-119">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-120">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-121">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt">Forfeited</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-122">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-123">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-124">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-125">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Outstanding at March 31, 2026</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">40,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">0.87</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-126">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">0.4</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt">Exercisable at March 31, 2026</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,106,458</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1.23</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-127">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2.3</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">*</span></td> <td style="text-align: justify"><span style="font-size: 10pt">The intrinsic value of the stock options at March 31, 2026 is the amount
by which the market value of the Company’s common stock of $0.83 as of March 31, 2026 exceeds the average exercise price of the
option. As of March 31, 2026, the intrinsic value of the outstanding and exercisable stock options was <span style="-sec-ix-hidden: hidden-fact-129">nil</span>.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As the Company itself is an investment holding
company which is not expected to generate operating profits to realize the tax benefits arising from its net operating loss carried forward,
no income tax benefits were recognized for such stock-based compensation cost under the stock option plan for the three months ended
March 31, 2025 and 2026.</p>
10000000
690000
0.001
3.24
1667
500000
0.001
220000
3000
3000
10000
10000
2.68
4167
2750002
350000
1.96
1.0641
0.0126
0
350000
479599
1.0641
0.0126
0
2400002
2805624
894000
2124000
230000
460000
0.95
0.978
P2Y
P5Y9M29D
1.0659
0.0351
0
838190
20249
40000
160000
0.88
0.8681
P5Y9M29D
1.0634
0.0447
0
56521
6817
443
1565
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stock option activity under the Company’s
stock-based compensation plans is shown below:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of<br/> Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Average<br/> Exercise Price<br/> per Share</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Aggregate<br/> Intrinsic<br/> Value*</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted <br/> Average<br/> Remaining<br/> Contractual<br/> Term in<br/> Years</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 52%">Outstanding at January 1, 2026</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">80,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">0.96</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-112">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">0.6</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Exercisable at January 1, 2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,066,458</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.24</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-113"> -</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.5</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-114">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-115">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-116">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-117">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-118">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-119">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-120">-</div></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-121">-</div></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt">Forfeited</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-122">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-123">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-124">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-125">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Outstanding at March 31, 2026</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">40,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">0.87</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-126">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">0.4</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; "> <td style="padding-bottom: 1.5pt">Exercisable at March 31, 2026</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,106,458</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1.23</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-127">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2.3</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">*</span></td> <td style="text-align: justify"><span style="font-size: 10pt">The intrinsic value of the stock options at March 31, 2026 is the amount
by which the market value of the Company’s common stock of $0.83 as of March 31, 2026 exceeds the average exercise price of the
option. As of March 31, 2026, the intrinsic value of the outstanding and exercisable stock options was <span style="-sec-ix-hidden: hidden-fact-129">nil</span>.</span></td></tr> </table>
80000
0.96
P0Y7M6D
2066458
1.24
P2Y6M
40000
0.87
P0Y4M24D
2106458
1.23
P2Y3M18D
0.83
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>25.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Income (Loss) Per Share</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic EPS is computed by dividing net income
by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similar to basic net income per share
except that the denominator is increased to include the number of additional common shares that would have been outstanding if all the
potential common shares pertaining to warrants, stock options, and similar instruments had been issued and if the additional common shares
were dilutive. Diluted earnings per share are based on the assumption that all dilutive convertible shares and stock options and warrants
were converted or exercised. Dilution is computed by applying the treasury stock method for the outstanding unvested restricted stock,
options and warrants, and the if-converted method for the outstanding convertible instruments. Under the treasury stock method, options
and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later) and as if funds obtained
thereby were used to purchase common stock at the average market price during the period. Under the if-converted method, outstanding
convertible instruments are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if
later).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is the calculation of income (loss)
per share:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">For the three months <br/> ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -9pt; padding-left: 9pt">Net loss</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(2,050,982</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(8,962,290</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Less: Net loss (income) attributable to non-controlling interests</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">471,748</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(325,082</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">Net loss income attributable to shareholders of CBAK Energy Technology, Inc.</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(1,579,234</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(9,287,372</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Weighted average shares outstanding -basic (note)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">89,938,690</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">89,247,119</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Dilutive unvested shares unit</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-132">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-133">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">Weighted average shares outstanding–- diluted</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">89,938,690</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">89,247,119</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Loss per share</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">- Basic</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.02</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.10</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">- Diluted</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.02</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.10</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 48px; text-align: justify"><span style="font-size: 10pt">Note:</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Including 5,384 vested restricted shares granted pursuant to the 2015 Plan that were not yet issued</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the three months ended March 31, 2025 and
2026, all the unvested options were anti-dilutive and excluded from shares used in the diluted computation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is the calculation of income (loss)
per share:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">For the three months <br/> ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -9pt; padding-left: 9pt">Net loss</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(2,050,982</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(8,962,290</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Less: Net loss (income) attributable to non-controlling interests</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">471,748</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(325,082</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">Net loss income attributable to shareholders of CBAK Energy Technology, Inc.</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(1,579,234</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(9,287,372</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Weighted average shares outstanding -basic (note)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">89,938,690</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">89,247,119</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Dilutive unvested shares unit</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-132">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-133">-</div></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">Weighted average shares outstanding–- diluted</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">89,938,690</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">89,247,119</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-indent: -9pt; padding-left: 9pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: -9pt; padding-left: 9pt">Loss per share</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">- Basic</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.02</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.10</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 9pt">- Diluted</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.02</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.10</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 48px; text-align: justify"><span style="font-size: 10pt">Note:</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Including 5,384 vested restricted shares granted pursuant to the 2015 Plan that were not yet issued</span></td></tr> </table>
-2050982
-8962290
-471748
325082
-1579234
-9287372
89938690
89247119
89938690
89247119
-0.02
-0.1
-0.02
-0.1
5384
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>26.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Commitments and Contingencies</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: top">
<td style="width: 0.25in"><span style="font-size: 10pt"><i>(i)</i></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><i>Capital Commitments</i></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2025 and March 31, 2026, the
Company had the following contracted capital commitments: </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b><i>December 31,<br/>
2025</i></b></span></td>
<td style="white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td style="white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b><i>March 31,<br/>
2026</i></b></span></td>
<td style="white-space: nowrap; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 74%"><span style="font-size: 10pt">For construction of buildings</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">733,869</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">744,910</span></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">For purchases of equipment</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">26,187,817</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">27,874,523</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">Capital injection</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">257,370,802</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">264,966,575</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">284,292,488</span></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">293,586,008</span></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: top">
<td style="width: 24px"><span style="font-size: 10pt"><i>(ii)</i></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><i>Litigation</i></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During its normal course of business, the Company
may become involved in various lawsuits and legal proceedings. However, litigation is subject to inherent uncertainties, and an adverse
result may arise from time to time that could affect its operations. Other than the legal proceedings set forth below, the Company is
currently not aware of any such legal proceedings or claims that the Company believes will have an adverse effect on the Company’s
operations, financial condition or operating results.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In December 2020, CBAK Power received notice
from Court of Dalian Economic and Technology Development Zone that Haoneng filed another lawsuit against CBAK Power for failure to pay
pursuant to the terms of the purchase contract. Haoneng sought a total amount of $1.5 million (RMB10,257,030), including equipment cost
of $1.3 million (RMB9,072,000) and interest amount of $0.2 million (RMB1,185,030). In August 2021, CBAK Power and Haoneng reached an
agreement that the term of the purchase contract will be extended to December 31, 2024 under which CBAK Power and its related parties
shall execute the purchase of equipment in an amount not lower than $2.4 million (RMB15,120,000) from Haoneng, or CBAK Power has to pay
15% of the amount equal to RMB 15,120,000 ($2.2 million) net of the purchased amount to Haoneng. Haoneng withdrew the filed lawsuit after
the agreement. As of March 31, 2026, the equipment was not received by CBAK Power, CBAK Power has included the equipment cost of $2.2
million (RMB15,120,000) under capital commitments. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2025 and March 31, 2026, the
Company had the following contracted capital commitments: </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: center"> </td>
<td style="white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b><i>December 31,<br/>
2025</i></b></span></td>
<td style="white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td style="white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b><i>March 31,<br/>
2026</i></b></span></td>
<td style="white-space: nowrap; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 74%"><span style="font-size: 10pt">For construction of buildings</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">733,869</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">744,910</span></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">For purchases of equipment</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">26,187,817</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">27,874,523</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">Capital injection</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">257,370,802</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">264,966,575</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">284,292,488</span></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">293,586,008</span></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
733869
744910
26187817
27874523
257370802
264966575
284292488
293586008
1500000
10257030
1300000
9072000
200000
1185030
2400000
15120000
0.15
15120000
2200000
2200000
15120000
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px; text-align: justify"><span style="font-size: 10pt"><b>27.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Concentrations and Credit Risk</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: top">
<td style="width: 24px"><span style="font-size: 10pt"><i>(a)</i></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><i>Concentrations</i></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="14" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">Three months ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold">Sales of finished goods and raw materials</td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Customer A</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">10,731,179</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">30.7</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><span style="font-size: 10pt">*</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><span style="font-size: 10pt">*</span></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Zhenghzhou BAK (note 16)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-134; font-size: 10pt">*</span></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-135; font-size: 10pt">*</span></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,139,436</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11.7</td><td style="text-align: left">%</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">*</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Comprised less than 10% of net revenue for the respective period.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center; white-space: nowrap"> </td>
<td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b><i>December 31, <br/>
2025</i></b></span></td>
<td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b><i>Marh 31,<br/>
2026</i></b></span></td>
<td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 52%"><span style="font-size: 10pt">Customer A</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 9%; text-align: right"><span style="font-size: 10pt">3,932,534</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><span style="font-size: 10pt">14.1</span></td>
<td style="width: 1%"><span style="font-size: 10pt">%</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-136">*</div></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-137">*</div></td>
<td style="width: 1%"><span style="font-size: 10pt"> </span></td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">Zhengzhou BAK (note 16)</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">4,836,152</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">17.4</span></td>
<td><span style="font-size: 10pt">%</span></td>
<td> </td>
<td> </td>
<td style="text-align: right">8,468,034</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">25.5</td>
<td><span style="font-size: 10pt">%</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">*</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Comprised less than 10% of net accounts receivable for the respective period.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">Three months ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Supplier A</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,619,451</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">11.2</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">13,542,101</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">16.9</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Supplier B</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-138; font-size: 10pt">*</span></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-139; font-size: 10pt">* </span></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,994,299</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12.5</td><td style="text-align: left">%</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">*</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Comprised less than 10% of net purchase for the respective period.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>December 31, <br/>
2025</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>March 31, <br/>
2026</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 53%; padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Supplier A</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 8%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-140; font-size: 10pt">*</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-141; font-size: 10pt">*</span></td>
<td style="width: 1%"><span style="font-size: 10pt"> </span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$ </span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">13,005,167</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><span style="font-size: 10pt">15.1</span></td>
<td style="width: 2%"><span style="font-size: 10pt">% </span></td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Supplier B</span></td>
<td> </td>
<td> </td>
<td style="text-align: right">*</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">*</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">9,999,850</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">11.6</span></td>
<td><span style="font-size: 10pt">%</span></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Supplier C</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">7,202,042</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">12.0</span></td>
<td><span style="font-size: 10pt">%</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-142; font-size: 10pt">*</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-143; font-size: 10pt">*</span></td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: top">
<td style="width: 24px"><span style="font-size: 10pt"><i>(b)</i></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><i>Credit Risk</i></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="14" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">Three months ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; font-weight: bold">Sales of finished goods and raw materials</td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Customer A</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">10,731,179</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">30.7</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><span style="font-size: 10pt">*</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right"><span style="font-size: 10pt">*</span></td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Zhenghzhou BAK (note 16)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-134; font-size: 10pt">*</span></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-135; font-size: 10pt">*</span></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8,139,436</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">11.7</td><td style="text-align: left">%</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">*</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Comprised less than 10% of net revenue for the respective period.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center; white-space: nowrap"> </td>
<td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b><i>December 31, <br/>
2025</i></b></span></td>
<td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b><i>Marh 31,<br/>
2026</i></b></span></td>
<td style="text-align: center; white-space: nowrap; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 52%"><span style="font-size: 10pt">Customer A</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 9%; text-align: right"><span style="font-size: 10pt">3,932,534</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><span style="font-size: 10pt">14.1</span></td>
<td style="width: 1%"><span style="font-size: 10pt">%</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-136">*</div></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-137">*</div></td>
<td style="width: 1%"><span style="font-size: 10pt"> </span></td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">Zhengzhou BAK (note 16)</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">4,836,152</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">17.4</span></td>
<td><span style="font-size: 10pt">%</span></td>
<td> </td>
<td> </td>
<td style="text-align: right">8,468,034</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">25.5</td>
<td><span style="font-size: 10pt">%</span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">*</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Comprised less than 10% of net accounts receivable for the respective period.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td>
<td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">Three months ended March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic; text-align: center">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Supplier A</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,619,451</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">11.2</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">13,542,101</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">16.9</td><td style="width: 1%; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Supplier B</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-138; font-size: 10pt">*</span></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-139; font-size: 10pt">* </span></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,994,299</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">12.5</td><td style="text-align: left">%</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">*</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Comprised less than 10% of net purchase for the respective period.</span></td></tr> </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>December 31, <br/>
2025</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>March 31, <br/>
2026</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 53%; padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Supplier A</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 8%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-140; font-size: 10pt">*</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-141; font-size: 10pt">*</span></td>
<td style="width: 1%"><span style="font-size: 10pt"> </span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$ </span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">13,005,167</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><span style="font-size: 10pt">15.1</span></td>
<td style="width: 2%"><span style="font-size: 10pt">% </span></td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Supplier B</span></td>
<td> </td>
<td> </td>
<td style="text-align: right">*</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">*</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">9,999,850</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">11.6</span></td>
<td><span style="font-size: 10pt">%</span></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 9pt; text-indent: -9pt"><span style="font-size: 10pt">Supplier C</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">7,202,042</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">12.0</span></td>
<td><span style="font-size: 10pt">%</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-142; font-size: 10pt">*</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-143; font-size: 10pt">*</span></td>
<td> </td></tr>
</table>
10731179
0.307
8139436
0.117
3932534
0.141
4836152
0.174
8468034
0.255
3619451
0.112
13542101
0.169
9994299
0.125
13005167
0.151
9999850
0.116
7202042
0.12
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px; text-align: justify"><span style="font-size: 10pt"><b>28.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Segment Information</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s chief operating decision
maker has been identified as the <span style="-sec-ix-hidden: hidden-fact-159">Chief Executive Officer</span> (“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. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company primarily operates in the PRC and
substantially all of the Company’s long-lived assets are located in the PRC.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic">For the three months ended March 31, 2025</td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">CBAT</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">Hitrans</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">Corporate<br/> unallocated<br/> (note)</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">Consolidated</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Net revenues</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">20,363,338</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">14,575,563</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-144">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">34,938,901</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td>Cost of revenues</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(15,643,236</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(14,493,931</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-145">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(30,137,167</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Gross profit</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,720,102</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">81,632</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-146">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,801,734</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Total operating expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(4,829,636</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,200,311</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(635,806</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(7,655,753</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Operating income (loss)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(109,534</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,118,679</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(635,806</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,864,019</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Finance income (expenses), net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">223,119</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(178,000</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">45,120</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Other income, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">223,276</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">544,641</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-147">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">767,917</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Income tax expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-148">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-149">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-150">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-151">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Net income (loss)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">336,861</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,752,038</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(635,805</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,050,982</td><td style="text-align: left">)</td></tr>
</table><table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">For the three months ended March 31, 2026</td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">CBAT</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Hitrans</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Corporate<br/> unallocated<br/> (note)</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Consolidated</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Net revenues</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">37,519,841</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">32,098,151</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-152">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">69,617,992</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td>Cost of revenues</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(39,575,695</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(29,002,429</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-153">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(68,578,124</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Gross (loss) profit</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,055,854</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,095,722</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-154">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,039,868</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Total operating expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(7,432,286</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2,530,647</span></td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(777,518</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(10,740,451</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Operating (loss) income</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(9,488,140</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">565,075</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(777,518</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(9,700,583</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Finance expenses, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(267,520</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(147,749</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(826</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(416,095</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Other income, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,274</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,156,540</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-155">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,161,814</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Income tax expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-156">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(7,426</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-157">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(7,426</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Net (loss) income</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(9,750,386</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,566,440</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(778,344</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(8,962,290</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td>As of March 31, 2026</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Identifiable long-lived assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">178,291,548</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">54,927,212</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">86,744</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">233,305,504</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Total assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">355,326,434</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">135,564,774</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">114,336</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">491,005,544</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Net revenues by product:</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>For the three months<br/>
ended March 31, </i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>2025</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>2026</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">High power lithium batteries used in:</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 74%"><span style="font-size: 10pt">Electric vehicles</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">537,507</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">1,538</span></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; ">
<td><span style="font-size: 10pt">Light electric vehicles</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">2,844,874</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">15,407,700</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">Residential energy supply & uninterruptable supplies</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">16,980,957</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">22,110,603</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">20,363,338</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">37,519,841</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><span style="font-size: 10pt">Materials used in manufacturing of lithium batteries</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; ">
<td><span style="font-size: 10pt">Cathode</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">11,261,199</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">32,076,278</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">Precursor</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">3,314,364</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">21,873</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">14,575,563</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">32,098,151</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"><span style="font-size: 10pt">Total consolidated revenue</span></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">34,938,901</span></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">69,617,992</span></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Net revenues by geographic area:</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b><i>For the three months
<br/>
ended March 31,</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>2025</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>2026</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 74%"><span style="font-size: 10pt">Mainland China</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">32,117,416</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">50,956,348</span></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">Europe</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">75,246</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">4,754,646</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><span style="font-size: 10pt">India</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">1,806,299</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">6,106,951</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">Africa</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-158; font-size: 10pt">-</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">5,660,703</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">Others</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">939,940</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">2,139,344</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt"><span style="font-size: 10pt">Total</span></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">34,938,901</span></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">69,617,992</span></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Substantially all of the Company’s long-lived
assets are located in the PRC.</p>
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.
2
2
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:<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic">For the three months ended March 31, 2025</td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">CBAT</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">Hitrans</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">Corporate<br/> unallocated<br/> (note)</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="white-space: nowrap; font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; font-style: italic; text-align: center">Consolidated</td><td style="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Net revenues</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">20,363,338</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">14,575,563</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-144">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">34,938,901</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td>Cost of revenues</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(15,643,236</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(14,493,931</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-145">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(30,137,167</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Gross profit</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,720,102</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">81,632</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-146">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,801,734</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Total operating expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(4,829,636</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,200,311</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(635,806</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(7,655,753</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Operating income (loss)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(109,534</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,118,679</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(635,806</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,864,019</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Finance income (expenses), net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">223,119</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(178,000</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">45,120</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Other income, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">223,276</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">544,641</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-147">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">767,917</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Income tax expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-148">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-149">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-150">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-151">-</div></td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Net income (loss)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">336,861</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,752,038</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(635,805</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,050,982</td><td style="text-align: left">)</td></tr>
</table><table cellpadding="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; font-style: italic; border-bottom: Black 1.5pt solid">For the three months ended March 31, 2026</td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">CBAT</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Hitrans</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Corporate<br/> unallocated<br/> (note)</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td><td style="font-weight: bold; font-style: italic; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; font-style: italic; text-align: center; border-bottom: Black 1.5pt solid">Consolidated</td><td style="padding-bottom: 1.5pt; font-weight: bold; font-style: italic"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Net revenues</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">37,519,841</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">32,098,151</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-152">-</div></td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">69,617,992</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td>Cost of revenues</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(39,575,695</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(29,002,429</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-153">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(68,578,124</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Gross (loss) profit</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(2,055,854</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,095,722</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-154">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,039,868</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Total operating expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(7,432,286</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2,530,647</span></td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(777,518</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(10,740,451</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Operating (loss) income</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(9,488,140</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">565,075</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(777,518</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(9,700,583</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Finance expenses, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(267,520</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(147,749</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(826</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(416,095</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Other income, net</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5,274</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,156,540</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-155">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,161,814</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Income tax expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-156">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(7,426</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-157">-</div></td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(7,426</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Net (loss) income</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(9,750,386</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,566,440</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(778,344</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(8,962,290</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td>As of March 31, 2026</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Identifiable long-lived assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">178,291,548</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">54,927,212</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">86,744</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">233,305,504</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Total assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">355,326,434</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">135,564,774</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">114,336</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">491,005,544</td><td style="text-align: left"> </td></tr>
</table>
20363338
14575563
34938901
-15643236
-14493931
-30137167
4720102
81632
4801734
-4829636
-2200311
-635806
-7655753
-109534
-2118679
-635806
-2864019
223119
-178000
1
45120
223276
544641
767917
336861
-1752038
-635805
-2050982
37519841
32098151
69617992
-39575695
-29002429
-68578124
-2055854
3095722
1039868
-7432286
-2530647
-777518
-10740451
-9488140
565075
-777518
-9700583
-267520
-147749
-826
-416095
5274
1156540
1161814
-7426
-7426
-9750386
1566440
-778344
-8962290
178291548
54927212
86744
233305504
355326434
135564774
114336
491005544
Revenue from these products is as follows:<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>For the three months<br/>
ended March 31, </i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>2025</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>2026</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">High power lithium batteries used in:</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 74%"><span style="font-size: 10pt">Electric vehicles</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">537,507</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">1,538</span></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; ">
<td><span style="font-size: 10pt">Light electric vehicles</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">2,844,874</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">15,407,700</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">Residential energy supply & uninterruptable supplies</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">16,980,957</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">22,110,603</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">20,363,338</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">37,519,841</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td><span style="font-size: 10pt">Materials used in manufacturing of lithium batteries</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; ">
<td><span style="font-size: 10pt">Cathode</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">11,261,199</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">32,076,278</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">Precursor</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">3,314,364</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">21,873</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">14,575,563</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">32,098,151</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt"><span style="font-size: 10pt">Total consolidated revenue</span></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">34,938,901</span></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">69,617,992</span></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
537507
1538
2844874
15407700
16980957
22110603
20363338
37519841
11261199
32076278
3314364
21873
14575563
32098151
34938901
69617992
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse; border-spacing: 0px;">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; white-space: nowrap; text-align: center"><span style="font-size: 10pt"><b><i>For the three months
<br/>
ended March 31,</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>2025</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b><i>2026</i></b></span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 74%"><span style="font-size: 10pt">Mainland China</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">32,117,416</span></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><span style="font-size: 10pt">$</span></td>
<td style="width: 10%; text-align: right"><span style="font-size: 10pt">50,956,348</span></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">Europe</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">75,246</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">4,754,646</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><span style="font-size: 10pt">India</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">1,806,299</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">6,106,951</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><span style="font-size: 10pt">Africa</span></td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-158; font-size: 10pt">-</span></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><span style="font-size: 10pt">5,660,703</span></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">Others</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">939,940</span></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt">2,139,344</span></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 2.5pt"><span style="font-size: 10pt">Total</span></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">34,938,901</span></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 4pt double"><span style="font-size: 10pt">$</span></td>
<td style="border-bottom: Black 4pt double; text-align: right"><span style="font-size: 10pt">69,617,992</span></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
32117416
50956348
75246
4754646
1806299
6106951
5660703
939940
2139344
34938901
69617992
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in"><span style="font-size: 10pt"><b>29.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Restricted Net Assets</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s ability to pay dividends
is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations
permit payments of dividends by the Company’s subsidiaries incorporated in PRC only out of their retained earnings, if any, as
determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements
prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the PRC Regulations on Enterprises
with Foreign Investment, a foreign invested enterprise established in the PRC is required to provide certain statutory reserve funds,
namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profits as
reported in the enterprise’s PRC statutory financial statements. A foreign invested enterprise is required to allocate at least 10%
of its annual after-tax profits to the general reserve fund until such reserve fund has reached 50% of its registered capital based
on the enterprise’s PRC statutory financial statements. Appropriations to the enterprise expansion fund and staff welfare and bonus
fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserved funds can only
be used for specific purposes and are not distributable as cash dividends.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, in accordance with the Company
Law of the PRC, a domestic enterprise is required to provide statutory surplus fund at least 10% of its annual after-tax profits
until such statutory surplus fund has reached 50% of its registered capital based on the enterprise’s PRC statutory financial
statements. A domestic enterprise is also required to provide discretionary surplus fund, at the discretion of the board of directors,
from the net profits reported in the enterprise’s PRC statutory financial statements. The aforementioned reserve funds can only
be used for specific purposes and are not distributable as cash dividends.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of these PRC laws and regulations
that require annual appropriations of 10% of after-tax profits to be set aside prior to payment of dividends as general reserve
fund or statutory surplus fund, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net
assets to the Company. The balance of statutory reserves were $3,042,602 as of December 31, 2025 and March 31, 2026, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Amounts restricted include paid-in capital, additional
paid-in capital and statutory reserve funds, less accumulated deficit, totaling approximately $349,527,050 and $354,324,132 as of
December 31, 2025 and March 31, 2026, respectively.</p>
0.10
0.50
0.10
0.50
0.10
3042602
3042602
349527050
354324132
<table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt"><b>30.</b></span></td>
<td style="text-align: justify"><span style="font-size: 10pt"><b>Subsequent events</b></span></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 8, 2026, Shaoxing Hailan entered into a
Reorganization Investment Agreement with Ningxia Sinochem Lithium Battery Material Co., Ltd. (“Ningxia Lithium”) and Ninggxia
Sinochem Lithium Battery Materials Co., Ltd Assets Manager (“Assets Manager”). Ningxia Sinochem served as a sub-contractor
for Hitrans, primarily providing processing services of NCM materials for Hitrans. Due to its financial difficulties, Ningxia Sinochem
is currently undergoing a court-administered bankruptcy reorganization. On March 20, 2026, the Zhongwei Intermediate People's Court ruled
to approve the reorganization plan of Ningxia Sinochem. Pursuant to the approved reorganization plan and through a public bidding process,
Shaoxing Hailan obtained the qualification as the reorganization investor for Ningxia Lithium for a total consideration of RMB110 million
(approximately $15.9 million). As of the report date, Shaoxing Hailan has paid RMB10 million (approximate $1.55 million) to the Assets
Manager. The transaction has not yet been completed, and the completion is subject to various uncertainties and conditions, and there
can be no assurance that the transaction will be ultimately completed.</p>
110000000
15900000
10000000
1.55
false
false
false
false
3918-5985
6000000
http://fasb.org/us-gaap/2026#FinanceLeaseLiabilityCurrent
http://fasb.org/us-gaap/2026#FinanceLeaseLiabilityCurrent
http://fasb.org/us-gaap/2026#GovernmentAssistanceLiabilityCurrent
http://fasb.org/srt/2026#ExecutiveOfficerMember
0001117171
false
Q1
--12-31