LONG-TERM INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2026

Equity method investments consisted of the following:

	June 30, 2026		December 31, 2025
	(Unaudited)
Hangzhou Entropy Yu Equity Investment Partnership (Limited Partnership) (“Entropy Yu”) ⁽¹⁾	$	2,225,640	$	2,159,481
Able 2rent GmbH (DEU) ⁽²⁾		-		108,332
Less: impairment ⁽²⁾		-		(108,332	)
Total equity method investment, net		2,225,640		2,159,481
Less: equity method investment, net, held for discontinued operations		-		-
Equity method investment, net, held for continuing operations	$	2,225,640	$	2,159,481

(1)

On September 25, 2022, the Company invested RMB15,400,000 (approximately $2,269,679) in Entropy Yu to acquire 99.355% of the partnership entity’s equity interest. The Company accounts for the investment under the equity method because the Company controls 50% of voting interests in partnership matters and material matters must be agreed upon by all partners. The Company has the ability to exercise significant influence over Entropy Yu.

(2)

On March 22, 2022, CAE invested EUR100,000 (approximately $114,170) in Able 2rent GmbH (DEU) to acquire 50% of its equity interest. As of December 31, 2025, the Company recognized full impairment of Able 2rent GmbH (DEU). The impairment was primarily due to a sustained decline in the investee’s operating performance and the lack of sufficient, reliable financial and operational information to support the recoverability of the carrying amount. Due to the liquidation of CAE during the first half of 2026, there was no remaining carrying value of this investment as of June 30, 2026.

Equity Investment without Readily Determinable Fair Value

Equity investments without readily determinable fair values, net consisted of the following:

	June 30, 2026		December 31, 2025
	(Unaudited)
HW Electro Co., Ltd. ⁽¹⁾	$	1,000,000	$	1,000,000
EEE Truck Solutions Group Inc. ⁽²⁾		693,780		693,780
Total equity investment without readily determinable fair values, net		1,693,780		1,693,780
Less: equity investment without readily determinable fair values, net, held for discontinued operations		-		-
Equity investment without readily determinable fair values, net, held for continuing operations	$	1,693,780	$	1,693,780

(1)	The Company owned approximately 3% of equity interest in HW Electro Co., Ltd. (“HWE”) at initial investment cost of $1,000,000.

(2)

In 2025, the Company acquired certain investment in a private company through a nonmonetary transaction by transferring the ownership of eight vehicles produced by the Company in the normal business with an aggregate market value of $693,780. Upon the completion of the transaction, the Company obtained 12% of equity interest in EEE Truck Solutions Group Inc. (the “EEE”), with no significant influence which leads the transaction to be in the scope of ASC 321 and the investment was recorded as an equity investment without readily determinable fair value, with initial cost based on the fair value of the vehicles transferred which is in accordance with ASC 606-10-32-21 through 24 based on the selling price of the goods promised to the customer due to the lack of fair value of the equity interests in EEE acquired.