XML 31 R18.htm IDEA: XBRL DOCUMENT
v3.21.2

Bank Borrowings | 6 Months Ended | 12 Months Ended
--- | --- | ---
Jun. 30, 2021 | Dec. 31, 2020
Bank Borrowings [Abstract] |  |
BANK BORROWINGS | 8. BANK BORROWINGS The Group entered into loan agreements and bank facilities with Chinese banks and a German bank. The original terms of the loans from Chinese banks range from 6 to 12 months and the interest rates range from 5.00% to 6.00% per annum. As of June 30, 2021, the balance of the loans from Chinese bank was $16,572. The bank facility agreement with the German bank includes a $13.0 million (EUR11 million) 8-year maturity term loan and a $4.7 million (EUR4 million) revolving facility (“German Bank Facility Agreement”). The interest rate of the 8-year maturity term loan is EURIBOR plus a margin rate determined by the financial leverage ratio of the Group. The $4.7 million (EUR4 million) revolving facility at 6% annual interest, needs to be renewed every year (60 days in advance). During the six months ended June 30, 2021, the Group drew down the 8-year maturity term loan at the amount of $9,886. The German Bank Facility Agreement contains financial covenants on the equity ratio, leverage ratio and profit distribution, and also it has acceleration clauses about the occurrence of failure to comply with the financial covenants. As of June 30, 2021, the Group’s Germany subsidiary was not in compliance with the financial covenants. The Company obtained a waiver for the covenant violation through September 30, 2021, and subsequently cured the default in August 2020 by capital injection. The Group is and expects to be able to remain fully in compliance with the covenants. Changes in bank borrowings were are as follows:
|  | Three months ended June 30, |  | Six months ended June 30,
|  | 2020 |  | 2021 |  | 2020 |  | 2021
Beginning balance |  | $ | 5,649 |  | $ | 13,156 |  |  | $ | 11,922 |  |  | $ | 12,184 |
Proceeds from bank borrowings |  |  | 3,714 |  |  | 13,158 |  |  |  | 9,473 |  |  |  | 26,603 |
Repayments of principal |  |  | — |  |  | — |  |  |  | (11,894 | ) |  |  | (12,265 | )
Exchange difference |  |  | 22 |  |  | (144 | ) |  |  | (89 | ) |  |  | (64 | )
Ending balance |  | $ | 9,412 |  | $ | 26,458 |  |  | $ | 9,412 |  |  | $ | 26,458 |
|  | December 31, 2020 |  | June 30, 2021
Current |  | $ | 12,184 |  | $ | 16,572
Non-current |  |  | — |  |  | 9,886
Total |  | $ | 12,184 |  | $ | 26,458
Certain assets of the Group had been pledged to secure the above banking facilities granted to the Group. The aggregate carrying amount of the assets pledged by the Group as of December 31, 2020 and June 30, 2021 are as follows:
|  | December 31, 2020 |  | June 30, 2021
Buildings |  | $ | 22,732 |  | $ | 31,877
Machinery and equipment |  |  | 19,297 |  |  | 17,835
Land use rights |  |  | 2,789 |  |  | 4,466
Total |  | $ | 44,818 |  | $ | 54,178
In addition, the Group’s related parties Ochem Chemical Co., Ltd (“Ochem”) and Ochemate Material Technologies Co., Ltd (“Ochemate”) provided $20,874 and $21,838 of guarantees to secure certain bank facilities granted to the Group as of December 31, 2020 and June 30, 2021, respectively. | 11. BANK BORROWINGS The Group entered into various loan agreements, i.e. banking facilities, with certain Chinese banks. The original terms of the loans range from 2 to 12 months and the interest rates range from 4.68% to 5.66% per annum. Changes in bank borrowings for the years ended December 31, 2019 and 2020 are as follows:
|  | December 31, 2019 |  | December 31, 2020
Beginning balance as of January 1 |  | $ | 66,267 |  |  | $ | 11,922 |
Proceeds from bank borrowings |  |  | 17,735 |  |  |  | 17,308 |
Repayments of principal during the year |  |  | (71,674 | ) |  |  | (17,815 | )
Exchange difference |  |  | (406 | ) |  |  | 769 |
Ending balance as of December 31 |  | $ | 11,922 |  |  | $ | 12,184 |
Including: |  |  |  |  |  |  |  |
Current |  | $ | 11,922 |  |  | $ | 12,184 |
Total |  | $ | 11,922 |  |  | $ | 12,184 |
Certain assets of the Group had been pledged to secure the above banking facilities granted to the Group. The aggregate carrying amount of the assets pledged by the Group as of December 31, 2019 and 2020 are as follows:
|  | December 31, 2019 |  | December 31, 2020
Buildings |  | $ | 22,414 |  | $ | 22,732
Machinery and equipment |  |  | 20,936 |  |  | 19,297
Land use rights |  |  | 2,672 |  |  | 2,789
Total |  | $ | 46,022 |  | $ | 44,818
In addition, the Group’s related parties Ochem Chemical Co., Ltd (“Ochem”) and Ochemate Material Technologies Co., Ltd (“Ochemate”) provided $32,607 and $20,874 of guarantees to secure certain bank facilities granted to the Group as of December 31, 2019 and 2020, respectively.

X
- References No definition available. + Details
Name: | thcb_BankBorrowingsAbstract
Namespace Prefix: | thcb_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | thcb_BankBorrowingsTextBlock
Namespace Prefix: | thcb_
Data Type: | dtr:textBlockItemType
Balance Type: | na
Period Type: | duration