Trade and Bills Receivable, Net

12 Months Ended

Dec. 31, 2023

Trade and Bills Receivable, Net [Abstract]

Trade and Bills Receivable, net

4. Trade and Bills Receivable, net

Trade and bills receivable as of December 31, 2022 and 2023:

	December 31,			December 31,
	2022			2023
Trade receivable	$	23,422,733		$	29,368,296
Less: Allowance for credit losses		(2,274,513	)		(3,198,249	)
		21,148,220			26,170,047
Bills receivable		6,265,355			2,483,000
	$	27,413,575		$	28,653,047

Included in trade and bills receivables are retention receivables of $1,066,146 and $65,162 as of December 31, 2022 and 2023. 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).

An analysis of the allowance for the credit losses are as follows:

Balance as at December 31, 2022	$	2,274,513
Adoption of ASC Topic 326		-
Balance as at January 1, 2023		2,274,513
Current period provision, net		1,012,404
Reversal – recoveries by cash		(10,250	)
Written-off		(14,661	)
Foreign exchange adjustment		(63,757	)
Balance as at December 31, 2023	$	3,198,249