CBAK Energy Technology, Inc. Segments Disclosure

30.	Segment Information

 

The Company’s chief operating decision maker has been identified as the Chief Executive Officer (“CEO”) who reviews financial information of operating segments based on US GAAP amounts when making decisions about allocating resources and assessing performance of the Company. 

 

The Company determined that for the years ended December 31, 2024 and 2025, it operated in two operating segments namely CBAK and Hitrans. CBAK’s segment mainly includes the manufacture, commercialization and distribution of a wide variety of standard and customized lithium-ion rechargeable batteries for use in a wide array of applications. Hitrans’ segment mainly includes the development and manufacturing of NCM precursor and cathode materials.

 

The Company primarily operates in the PRC and substantially all of the Company’s long-lived assets are located in the PRC.

  

The Company’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, cost of revenues, operating expenses, operating income (loss), finance income (expense), other income (expense) and net income (loss). Net revenue, cost of revenues, operating expenses, operating income (loss), finance income (expense), other income (expenses) and net income (loss) by segment for the years ended December 31, 2024 and 2025 were as follows:

 

For the year ended December 31, 2024		CBAT				Hitrans				Corporate unallocated (note)				Consolidated
Net revenues		$	136,588,803			$	40,025,806			$	-			$	176,614,609
Cost of revenues			(93,535,812	)			(41,303,552	)			-				(134,839,364	)
Gross profit (loss)			43,052,991				(1,277,746	)			-				41,775,245
Total operating expenses			(22,848,626	)			(8,539,324	)			(1,599,146	)			(32,987,096	)
Operating income (loss)			20,204,365				(9,817,070	)			(1,599,146	)			8,788,149
Finance income (expenses), net			1,275,246				7,954				(110	)			1,283,090
Other income (expenses), net			(490,229	)			1,562,753				-				1,072,524
Income tax expenses			(1,558,613	)			-				-				(1,558,613	)
Net income (loss)			19,430,769				(8,246,363	)			(1,599,256	)			9,585,150

 

For the year ended December 31, 2025		CBAT				Hitrans				Corporate unallocated (note)				Consolidated
Net revenues		$	105,982,389			$	89,206,917			$	-			$	195,189,306
Cost of revenues			(92,257,111	)			(84,509,607	)			-				(176,766,718	)
Gross profit			13,725,278				4,697,310				-				18,422,588
Total operating expenses			(24,208,471	)			(11,055,459	)			(1,599,901	)			(36,863,831	)
Operating loss			(10,483,193	)			(6,358,149	)			(1,599,901	)			(18,441,243	)
Finance income (expenses), net			60,979				(732,875	)			(1,448	)			(673,344	)
Other income (expenses), net			6,729,459				1,248,507				-				7,977,966
Income tax credit			184,686				-				-				184,686
Net loss			(3,508,069	)			(5,842,517	)			(1,601,349	)			(10,951,935	)
As of December 31, 2025
Identifiable long-lived assets			174,672,705				51,881,626				-				226,554,331
Total assets			306,247,018				119,783,830				150,788				426,181,636

 

Note: The Company does not allocate its assets located and expenses incurred outside China to its reportable segments because these assets and activities are managed at a corporate level.

 

Net revenues by product:

 

The Company’s products can be categorized into high power lithium batteries and materials used in manufacturing of lithium batteries. For the product sales of high power lithium batteries, the Company manufactured high-power cylindrical lithium battery cell and battery packs. The Company’s battery products are sold to end users in electric vehicles, light electric vehicles and energy storage sectors. For the product sales of materials used in manufacturing of lithium batteries, the Company, via its subsidiary, Hitrans, manufactured cathode materials and Precursor for use in manufacturing of cathode. Revenue from these products is as follows:

		Year ended December 31, 2024				Year ended December 31, 2025
High power lithium batteries used in:
Electric vehicles		$	1,681,651			$	796,173
Light electric vehicles			10,319,176				36,363,411
Residential energy supply & uninterruptable supplies			124,587,976				68,822,805
			136,588,803				105,982,389
Materials used in manufacturing of lithium batteries
Cathode			34,228,998				82,483,022
Precursor			5,796,808				6,723,895
			40,025,806				89,206,917
Total consolidated revenue		$	176,614,609			$	195,189,306

  

Net revenues by geographic area:

 

The Company’s operations are located in the PRC. The following table provides an analysis of the Company’s sales by geographical markets based on locations of customers:

  

		Year ended December 31, 2024				Year ended December 31, 2025
Mainland China		$	98,925,752			$	147,280,627
Europe			65,746,989				7,526,077
India			8,051,905				16,551,510
Africa			-				17,037,599
Others			3,889,963				6,793,493
Total		$	176,614,609			$	195,189,306

 

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