| Bank Borrowings |
9. Bank Borrowings
Bank borrowings are working capital loans from
banks in China. Short-term bank borrowings as of December 31, 2025 consisted of the following:
| Lender | | Company | | Rate | | | Issuance Date | | Expiration Date | | Amount-
RMB | | | Amount-
US$ | | | Jiangsu Yangzhou Rural Commercial Bank | | Jiangsu Huadong | | | 2.46 | % | | 2025/1/14 | | 2026/1/12* | | | 10,000,000 | | | | 1,429,981 | | | Bank of China | | Jiangsu Huadong | | | 2.40 | % | | 2025/3/5 | | 2026/5/4** | | | 4,950,000 | | | | 707,841 | | | Bank of Communications | | Jiangsu Huadong | | | 2.25 | % | | 2025/6/18 | | 2026/6/18** | | | 1,000,000 | | | | 142,998 | | | Bank of Communications | | Jiangsu Huadong | | | 2.25 | % | | 2025/6/24 | | 2026/6/24** | | | 4,000,000 | | | | 571,992 | | | China Everbright Bank | | Jiangsu Huadong | | | 2.25 | % | | 2025/5/22 | | 2026/11/22 | | | 4,900,000 | | | | 700,691 | | | CITIC Bank | | Yangzhou Huada | | | 2.30 | % | | 2025/9/26 | | 2026/9/26 | | | 10,000,000 | | | | 1,429,980 | | | Bank of Communications | | Yangzhou Huada | | | 2.50 | % | | 2025/3/20 | | 2026/3/18** | | | 3,000,000 | | | | 428,994 | | | China Minsheng Bank | | Yangzhou Huada | | | 2.20 | % | | 2025/6/30 | | 2026/6/30 | | | 5,000,000 | | | | 714,990 | | | China Zhe Shang Bank | | Yangzhou Huada | | | 2.11 | % | | 2025/6/24 | | 2026/6/24** | | | 5,000,000 | | | | 714,990 | | | China Zhe Shang Bank | | Yangzhou Huada | | | 2.11 | % | | 2025/9/19 | | 2026/9/19 | | | 5,000,000 | | | | 714,990 | | | Agricultural Bank of China | | Jiangsu Yada | | | 2.35 | % | | 2025/4/14 | | 2026/4/10** | | | 10,000,000 | | | | 1,429,983 | | | Total | | | | | | | | | | | | | 62,850,000 | | | | 8,987,430 | |
| * | These loans were repaid upon maturity. |
| ** | These loans were repaid in full prior to their contractual maturity
dates. |
Short-term bank borrowings as of December 31, 2024 consisted of the
following:
| Lender | | Company | | Rate | | | Issuance
Date | | Expiration Date | | Amount-
RMB | | | Amount-
US$ | | | Jiangsu Yangzhou Rural Commercial Bank | | Jiangsu Huadong | | | 3.30 | % | | 2024/2/1 | | 2025/1/31 | | | 5,000,000 | | | | 684,997 | | | Bank of China | | Jiangsu Huadong | | | 2.42 | % | | 2024/3/11 | | 2025/3/10 | | | 5,000,000 | | | | 684,997 | | | Bank of Communications | | Jiangsu Huadong | | | 2.55 | % | | 2024/4/23 | | 2025/4/23 | | | 9,000,000 | | | | 1,232,995 | | | Bank of Jiangsu | | Jiangsu Huadong | | | 2.60 | % | | 2024/12/23 | | 2025/12/15 | | | 10,000,000 | | | | 1,369,994 | | | CITIC Bank | | Yangzhou Huada | | | 2.70 | % | | 2024/9/26 | | 2025/9/25 | | | 5,000,000 | | | | 684,997 | | | CITIC Bank | | Yangzhou Huada | | | 2.70 | % | | 2024/9/30 | | 2025/9/25 | | | 5,000,000 | | | | 684,997 | | | Industrial and Commercial Bank of China | | Jiangsu Yada | | | 3.45 | % | | 2024/2/22 | | 2025/2/21 | | | 9,000,000 | | | | 1,232,995 | | | Agricultural Bank of China | | Jiangsu Yada | | | 2.70 | % | | 2024/10/24 | | 2025/10/23 | | | 10,000,000 | | | | 1,369,994 | | | Total | | | | | | | | | | | | | 58,000,000 | | | | 7,945,966 | |
Interest expense was $241,523, $247,615 and $250,781
for the years ended December 31, 2025, 2024 and 2023, respectively.
The Company’s short-term bank borrowings
are pledged by the Company’s assets and guaranteed by the Company’s major shareholders Yongjun Liu, Yin Liu, Kai Liu and its
subsidiary Jiangsu Yada.
The carrying values of the Company’s pledged
assets to secure short-term borrowings by the Company are as follows:
| | |
December 31,
2025 | | |
December 31,
2024 | |
| | |
US$ | | |
US$ | |
| Buildings, net | |
| 1,622,619 | | |
| 1,062,792 | |
|