CBAK Energy Technology, Inc. (Parent Company)

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

CBAK Energy Technology, Inc. (Parent Company)

31. CBAK Energy Technology, Inc. (Parent Company)

Under PRC regulations, subsidiaries in PRC (“the PRC subsidiaries”) may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC GAAP. In addition, the PRC subsidiaries are required to set aside at least 10% of their after tax net profits each year, if any, to fund the statutory general reserve until the balance of the reserves reaches 50% of their registered capital. The statutory general reserves are not distributable in the form of cash dividends to the Company and can be used to make up cumulative prior year losses, if any, and may be converted into share capital by the issue of new shares to shareholders in proportion to their existing shareholdings, or by increasing the par value of the shares currently held by them, provided that the reserve balance after such issue is not less than 25% of the registered capital. As of December 31, 2022 and 2023, additional transfers of $166,414,198 and $219,322,375 were required before the statutory general reserve reached 50% of the registered capital of the PRC subsidiaries. As of December 31, 2022 and 2023 there was $1,230,511 appropriation from retained earnings and set aside for statutory general reserves by the PRC subsidiaries. The PRC subsidiaries did not have after tax net profits since its incorporation and therefore no appropriation was made to fund its statutory general reserve as of December 31, 2022 and 2023.

Schedule I of Article 504 of Regulation SX requires the condensed financial information of the registrant (Parent Company) to be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of this test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party (i.e., lender, regulatory agency, foreign government, etc.). 

	Year ended December 31, 2022			Year ended December 31, 2023
REVENUE, net	$	-		$	-
OPERATING EXPENSES:
Salaries and consulting expenses		227,588			1,386,099
General and administrative		889,169			794,262
Total operating expenses		(1,116,757	)		(2,180,361	)
LOSS FROM OPERATIONS		(1,116,757	)		(2,180,361	)
Changes in fair value of warrants liability		5,710,000			136,000
INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY		4,593,243			(2,044,361	)
EQUITY IN LOSS OF SUBSIDIARIES		(14,041,689	)		(609,897	)
NET LOSS ATTRIBUTABLE TO SHAREHOLDERS	$	(9,448,446	)	$	(2,654,258	)

	December 31, 2022		December 31, 2023
ASSETS
Interests in subsidiaries	$	119,120,917	$	114,257,553
Cash and cash equivalents		118,559		26,922
Total assets	$	119,239,476	$	114,284,475
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accrued expenses and other payables		1,608,102		1,586,745
Warrants liability		136,000		-
Total current liabilities		1,744,102		1,586,745
SHAREHOLDERS’ EQUITY		117,495,374		112,697,730
Total liabilities and shareholders’ equity	$	119,239,476	$	114,284,475

	Year ended December 31, 2022			Year ended December 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(9,448,446	)	$	(2,449,057	)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity in loss of subsidiaries		(14,041,689	)		(815,098	)
Share based compensation		64,193			1,225,747
Changes in fair value of warrants liability		(5,710,000	)		(136,000	)
Change in operating assets and liabilities
Accrued expenses and other payable		(2,127	)		(21,357	)
Net cash used in operating activities		(29,138,069	)		(2,195,765	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in interest in subsidiaries		28,540,148			2,104,128
Net cash used in investing activities		28,540,148			2,104,128
CHANGE IN CASH AND CASH EQUIVALENTS		(597,921	)		(91,637	)
CASH AND CASH EQUIVALENTS, beginning of year		716,480			118,559
CASH AND CASH EQUIVALENTS, end of year	$	118,559		$	26,922

The condensed parent company financial statements have been prepared using the equity method to account for its subsidiaries. Refer to the consolidated financial statements and notes presented above for additional information and disclosures with respect to these financial statements.