BANK LOANS

6 Months Ended

Jun. 30, 2026

Debt Disclosure [Abstract]

12. BANK LOANS

Long-term line of credit

In September 2024, the Company’s subsidiary, Tianjin Lobo entered into a line of credit agreement of $410,998 (RMB3,000,000) with a financing company at an annual interest rate of 8.89%. The Company pays principal and interest monthly, and the credit agreement expires on August 31, 2027. $163,140 and $151,429 of the principal is classified as short-term, and $14,990 and $95,441 of the principal is classified as long-term as of June 30, 2026 and December 31, 2025.

Short-term line of credit

In 2025, the Company’s subsidiaries, Jiangsu Lobo and Tianjin Lobo entered into one-year line of credit agreements and have drawn a total of $2,817,062 (RMB19,700,000) with multiple banks in PRC at annual interest rates between 2.7% and 3.45%. The Company pays interest monthly or quarterly, and pays principal when each tranche of the borrowings expires between April and December of 2026. All of the principal of $2,817,062 are classified as short-term as of December 31, 2025. In April.2026, $728,608 (RMB5,000,000) of the 2025 Short-term line of credit was due and paid off.

In 2026, the Company’s subsidiaries, Jiangsu Lobo and Tianjin Lobo entered into one-year line of credit agreements and have drawn a total of $2,185,824 (RMB15,000,000) with multiple banks in PRC at annual interest rate of 2.8%. The Company pays interest monthly, and pays principal when each tranche of the borrowings expires between January and March of 2027.

Short-term and long-term loans consisted of the following as of June 30, 2026 and December 31, 2025:

		As of June 30,				As of December 31,
		2026				2025
Short-term loans		$	4,377,238			$	2,817,062
Current portion, Long-term loans			163,140				151,429
Total Short-term			4,540,378				2,968,491
Non-current portion, Long-term loans			14,990				95,441
Total		$	4,555,368			$	3,063,932

Short-term loans consisted of the following as of June 30, 2026:

SCHEDULE OF SHORT TERM LOAN

Bank Name		Amount-RMB				Amount - USD				Issuance Date		Expiration Date		Interest
Bank of Nanjing Co., Ltd., Wuxi Branch			4,000,000				589,528			2025/9/25		2026/9/23			3.10	%
China Construction Bank Corporation, Tianjin Wuqing Sub-branch			5,000,000				736,909			2025/7/8		2026/7/8			3.45	%
Industrial and Commercial Bank of China Limited, Wuxi Xishan Sub-branch			2,200,000				324,240			2025/12/30		2026/12/30			2.70	%
Agricultural Bank of China Limited, Wuxi Liangxi Sub-branch			3,500,000				515,836			2025/12/27		2026/10/25			3.05	%
Bank of China Limited, Tianjin Wuqing Sub-branch			10,000,000				1,473,816			2026/1/5		2027/1/5			2.80	%
Bank of China Limited, Wuxi Huishan Sub-branch			5,000,000				736,909			2026/3/30		2027/3/17			2.80	%
Total			29,700,000				4,377,238

The following is a maturity analysis of long-term loans as of June 30, 2026:

SCHEDULE OF MATURITY ANALYSIS

		RMB				USD
Twelve months period ended June 30,
2027			1,106,919				163,140
2028			101,710				14,990
Total long-term loans			1,208,629			$	178,130

For the six months ended June 30, 2026 and 2025, the Company recorded interest expenses of $73,972 and $27,833, respectively.