INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

SCHEDULE OF INCOME TAX (BENEFITS)

Composition of income tax benefits for the periods presented are as follow:

	June 30, 2024		June 30, 2023
	US$’000		US$’000
	(Unaudited)		(Unaudited)
Current income tax expenses (benefits)		-		-
Deferred income tax expenses (benefits)		-		-
Income tax expenses		-		-

SCHEDULE OF RECONCILIATIONS OF INCOME TAX EXPENSES (BENEFITS)

Reconciliations of the income tax expenses (benefits) computed by applying the PRC statutory income tax rate of 25% to the Company’s income tax expenses of the period presented are as follows:

	June 30, 2024			June 30, 2023
	US$’000			US$’000
	(Unaudited)			(Unaudited)
Loss before income tax expenses		(31,523	)		(57,591	)
Income tax benefits computed at the PRC statutory income tax rate of 25%		(7,881	)		(14,398	)
Use of NOL		(98	)		-
Effect of additional deduction for qualified R&D expenses		(269	)		(779	)
Effect of changes in asset value		332			584
Non-deductible expenses		48			84
Changes in valuation allowance and others		7,868			14,509
Income tax expenses		-			-

SCHEDULE OF DEFERRED TAX ASSETS (LIABILITIES)

The Company’s deferred tax assets (liabilities) consisted of the following components:

	June 30, 2024			December 31, 2023
	US$’000			US$’000
	(Unaudited)
Deferred tax assets
Net operating loss carryforwards		144,150			140,835
Accrued warranty		61			51
Accrued expenses		12,521			11,095
Investment loss		695			695
Inventory impairment		3,091			3,029
Fixed assets impairment provision		949			973
Bad debts		(4	)		80
Accrued payroll		11,936			13,088
Subtotal		173,399			169,846
Fair value change of fixed assets		(9,804	)		(10,321	)
Fair value change of intangible assets		(3,626	)		(3,763	)
Total deferred tax liabilities		(13,430	)		(14,084	)
Net deferred tax assets		159,969			155,762
Less: valuation allowance		(159,969	)		(155,762	)
Deferred tax assets, net of valuation allowance		-			-