NOTE 23. SEGMENT INFORMATION
The Company’s business includes the design, development, manufacturing, sales and leasing of battery components and systems primarily for electric commercial vehicles and ESS. The Chief Executive Officer (“CEO”), as the CODM, organizes our company for a single operating and reportable segment. The CODM uses geographic revenues and operating income to allocate operating and capital resources and assesses performance of each segment by comparing actual gross profit and actual geographic revenues results to historical results and previously forecasted financial information.
The measure of segment revenue, operating income is reported on the statement of operation as the total consolidated revenue and operating income. The segment assets is reported on the balance sheet as total consolidated assets.
Long-lived assets, classified by major geographic regions are as follows:
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| | December 31, |
| Geographic regions | | 2025 | | 2024 |
| | Amount | | % | | Amount | | % |
| PRC | | $ | 345,148 | | | 66 | % | | $ | 290,512 | | | 59 | % |
| Asia & Pacific | | 345,148 | | | 66 | % | | 290,512 | | | 59 | % |
| Germany | | 15,291 | | | 3 | % | | 14,846 | | | 3 | % |
| United Kingdom | | 20 | | | 0 | % | | 25 | | | 0 | % |
| Europe | | 15,311 | | | 3 | % | | 14,871 | | | 3 | % |
| United States | | 159,168 | | | 31 | % | | 184,177 | | | 38 | % |
| Total | | $ | 519,627 | | | 100 | % | | $ | 489,560 | | | 100 | % |
Revenues, classified by major geographic regions in which the Company's customers are located are as follows:
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| Geographic regions | | Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| | Amount | | % | | Amount | | % | | Amount | | % |
| PRC | | $ | 138,945 | | | 33 | % | | $ | 127,138 | | | 33 | % | | $ | 156,480 | | | 51 | % |
| India | | 34,568 | | | 8 | % | | 48,767 | | | 13 | % | | 60,606 | | | 20 | % |
| Other Asia & Pacific countries | | 2,754 | | | 1 | % | | 1,791 | | | — | % | | 2,047 | | | 1 | % |
| Asia & Pacific | | 176,267 | | | 42 | % | | 177,696 | | | 46 | % | | 219,133 | | | 72 | % |
| Italy | | 92,941 | | | 22 | % | | 150,809 | | | 40 | % | | 56,592 | | | 18 | % |
| France | | 78,192 | | | 18 | % | | 12,764 | | | 3 | % | | 7,816 | | | 3 | % |
| Other European countries | | 40,811 | | | 9 | % | | 24,145 | | | 7 | % | | 19,950 | | | 6 | % |
| Europe | | 211,944 | | | 49 | % | | 187,718 | | | 50 | % | | 84,358 | | | 27 | % |
| United States | | 39,305 | | | 9 | % | | 14,387 | | | 4 | % | | 3,126 | | | 1 | % |
| Total | | $ | 427,516 | | | 100 | % | | $ | 379,801 | | | 100 | % | | $ | 306,617 | | | 100 | % |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.