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Loans | 9 Months Ended
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Sep. 30, 2020
Loans [Abstract] |
Loans |
12. | Loans
Bank loans: Bank borrowings as of December 31, 2019 and September 30, 2020 consisted of the followings
|  | December 31, |  |  | September 30, |
|  | 2019 |  |  | 2020 |
Short-term bank loan |  | $ | 5,730,289 |  |  | $ | 5,876,289 |
Current maturities of long-term bank loans |  |  | 10,844,463 |  |  |  | 20,721,649 |
Long-term bank borrowings |  |  | 9,519,029 |  |  |  | - |
|  | $ | 26,093,781 |  |  | $ | 26,597,938 |
On June 4, 2018, the Company obtained banking facilities from China Everbright Bank Dalian Branch with a maximum amount of RMB200 million (approximately $29.5 million) with the term from June 12, 2018 to June 10, 2021, bearing interest at 130% of benchmark rate of the People's Bank of China ("PBOC") for three-year long-term loans, at current rate 6.175% per annum. The loans are repayable in six installments of RMB0.8 million ($0.12 million) on December 10, 2018, RMB24.3 million ($3.58 million) on June 10, 2019, RMB0.8 million ($0.12 million) on December 10, 2019, RMB74.7 million ($11.0 million) on June 10, 2020, RMB0.8 million ($0.12 million) on December 10, 2020 and RMB66.3 million ($9.8 million) on June 10, 2021. Under the facilities, the Company borrowed RMB140.7 million (approximately $20.7 million) as of September 30, 2020. The facilities were secured by the Company's land use rights, buildings, machinery and equipment. The Company repaid the bank loan of RMB0.8 million ($0.12 million), RMB24.3 million ($3.58 million), RMB0.8 million ($0.12 million) and RMB1.09 million ($0.16 million) in December 2018, June 2019, December 2019 and June 2020 respectively. On June 28, 2020, the Company entered into a supplemental agreement with China Everbright Bank Dalian Branch to change the repayment schedule. According to the modification agreement, the remaining RMB141.8 million (approximately $20.88 million) loans are repayable in eight instalments consisting of RMB1.09 million ($0.16 million) on June 10, 2020, RMB 1 million ($0.15 million) on December 10, 2020, RMB2 million ($0.29 million) on January 10, 2021, RMB2 million ($0.29 million) on February 10, 2021, RMB2 million ($0.29 million) on March 10, 2021, RMB2 million ($0.29 million) on April 10, 2021, RMB2 million ($0.29 million) on May 10, 2021, and RMB129.7 million ($19.1 million) on June 10, 2021, respectively. In August 2018, the Company borrowed a total of RMB60 million (approximately $8.8 million) in the form of bills payable from China Everbright Bank Dalian Branch for a term until August 14, 2019, which was secured by the Company's cash totaled $8.8 million. The Company discounted these two bills payable of even date to China Everbright Bank at a rate of 4.0%. The Company repaid these bills payable in August 2019. On August 22, 2018, the Company obtained one-year term facilities from China Everbright Bank Dalian Branch with a maximum amount of RMB100 million (approximately $14.7 million) including revolving loans, trade finance, notes discount, and acceptance of commercial bills etc. Any amount drawn under the facilities requires security in the form of cash or banking acceptance bills receivables of at least the same amount. The Company borrowed a series of bank acceptance bills totaled RMB28.8 million (approximately $4.24 million) for a term until March 7, 2019. The Company repaid the bank acceptance bills on March 7, 2019. In November 2018, the Company borrowed a total of RMB100 million (approximately $14.7 million) in the form of bills payable from China Everbright Bank Dalian Branch for a term until November 12, 2019, which was secured by the Company's cash totaled RMB50 million (approximately $7.4 million) and the 100% equity in CBAK Power held by BAK Asia. The Company discounted the bills payable of even date to China Everbright Bank at a rate of 4.0%. The Company repaid the bills payable in November 2019. The Company also borrowed a series of acceptance bills from Industrial Bank Co., Ltd. Dalian Branch totaled RMB1.5 million (approximately $0.2 million) for various terms through May 21, 2019, which was secured by bills receivable of RMB1.5 million (approximately $0.2 million). The Company repaid the bank acceptance bills on May 21, 2019. On October 15, 2019, the Company borrowed a total of RMB28 million (approximately $4.12 million) in the form of bills payable from China Everbright Bank Dalian Branch for a term until October 15, 2020, which was secured by the Company's cash totaled RMB28 million (approximately $4.12 million). The Company discounted the bills payable of even date to China Everbright Bank at a rate of 3.3%. The Company repaid the bills on October 15, 2020. In December 2019, the Company obtained banking facilities from China Everbright Bank Dalian Friendship Branch totaled RMB39.9 million (approximately $5.9 million) for a term until November 6, 2020, bearing interest at 5.655% per annum. The facility was secured by 100% equity in CBAK Power held by BAK Asia and buildings of Hubei BAK Real Estate Co., Ltd., which Mr. Yunfei Li ("Mr. Li"), the Company's CEO holding 15% equity interest. Under the facilities, the Company borrowed RMB39.9 million (approximately $5.9 million) on December 30, 2019. In May to September 2020, the Company borrowed a series of acceptance bills from China Merchants Bank totaled RMB16.1 million (approximately $2.4 million) for various terms through November 2020 to March 2021, which was secured by the Company's cash totaled RMB16.1 million (approximately $2.4 million). The facilities were also secured by the Company's assets with the following carrying amounts:
|  | December 31, |  |  | September 30, |
|  | 2019 |  |  | 2020 |
Pledged deposits (note 2) |  | $ | 4,021,255 |  |  | $ | 6,488,306 |
Right-of-use assets (note 9) |  |  | 7,194,195 |  |  |  | 7,253,386 |
Buildings |  |  | 17,683,961 |  |  |  | 16,855,060 |
Machinery and equipment |  |  | 7,196,810 |  |  |  | 6,563,940 |
|  | $ | 36,096,221 |  |  | $ | 37,160,692 |
As of September 30, 2020, the Company had unutilized committed facilities from banks and Jilin Province Trust Co., Ltd (see "Other Short-term Loans" below) totaled $7.1 million. During the three months ended September 30, 2019 and 2020, interest of $485,179 and $402,268, respectively, was incurred on the Company's bank borrowings. During the nine months ended September 30, 2019 and 2020, interest of $1,633,731 and $1,190,629, respectively, was incurred on the Company's bank borrowings. Other Short-term Loans Other short-term loans as of December 31, 2019 and September 30, 2020 consisted of the following:
|  |  |  | December 31, |  |  | September 30, |
|  | Note |  | 2019 |  |  | 2020 |
Advance from related parties |  |  |  |  |  |  |  |
– Mr. Xiangqian Li, the Company's Former CEO |  | (a) |  |  | 100,000 |  |  |  | 100,000 |
– Mr. Yunfei Li |  | (b) |  |  | 212,470 |  |  |  | 218,943 |
– Shareholders |  | (c) |  |  | 86,679 |  |  |  | 88,888 |
|  |  |  |  | 399,149 |  |  |  | 407,831 |
Advances from unrelated third party |  |  |  |  |  |  |  |  |  |
– Mr. Wenwu Yu |  | (d) |  |  | 30,135 |  |  |  | 30,903 |
– Mr. Longqian Peng |  | (d) |  |  | 646,273 |  |  |  | 662,739 |
– Mr. Shulin Yu. |  | (e) |  |  | 517,018 |  |  |  | 530,191 |
– Jilin Province Trust Co. Ltd |  | (f) |  |  | 5,687,204 |  |  |  | 3,564,065 |
– Suzhou Zhengyuanwei Needle Ce Co., Ltd |  | (g) |  |  | 71,808 |  |  |  | 73,638 |
|  |  |  |  | 6,952,438 |  |  |  | 4,861,536 |
|  |  |  | $ | 7,351,587 |  |  | $ | 5,269,367 |
| (a) | Advances from Mr. Xiangqian Li, the Company's former CEO, was unsecured, non-interest bearing and repayable on demand.
| (b) | Advances from Mr. Yunfei Li, the Company's CEO, was unsecured, non-interest bearing and repayable on demand.
| (c) | The earnest money paid by certain shareholders in relation to share purchase (note 1) were unsecured, non-interest bearing and repayable on demand. In 2019, according to the investment agreements and agreed by the investors, the Company returned earnest money of $949,317 (approximately RMB6.7 million) to these investors.
|  | On October 14, 2019, the Company entered into a cancellation agreement with Mr. Shangdong Liu, Ms. Lijuan Wang and Mr. Ping Shen (the creditors). Pursuant to the terms of the cancellation agreement, Mr. Shangdong Liu, Ms. Lijuan Wang and Mr. Ping Shen agreed to convert the earnest money in exchange for 528,053, 528,053 and 528,053 shares of common stock of the Company, respectively, at an exchange price of $0.6 per share. Upon receipt of the shares, the creditors released the Company from any claims, demands and other obligations relating to the earnest money. The cancellation agreement contains customary representations and warranties of the creditors. The creditors do not have registration rights with respect to the shares. As of September 30, 2020, earnest money of $88,888 remained outstanding.
| (d) | Advances from unrelated third parties were unsecured, non-interest bearing and repayable on demand.
| (e) | On June 25, 2019, the Company entered into a loan agreement with Mr. Shulin Yu, an unrelated party, to loan RMB3.6 million (approximately $0.5 million) for a term of one year, bearing annual interest of 10% which was guaranteed by Mr. Yunfei Li (the Company's CEO) and Mr. Wenwu Wang (the Company's former CFO). On June 22, 2020, the Company and Mr. Shulin Yu entered into a supplemental agreement to extend the loan for one year to June 24, 2021. As of September 30, 2020, the Company borrowed RMB3.6 million (approximately $0.5 million).
| (f) | In January 2019, the Company obtained one-year term facilities from Jilin Province Trust Co. Ltd. with a maximum amount of RMB40.0 million (approximately $5.9 million), which was secured by land use rights and buildings of Eodos Liga Energy Co., Ltd. Under the facilities, the Company borrowed a total of RMB39.6 million ($5.7 million) in 2019, bearing annual interest from 11.3% to 11.6%. The Company fully repaid the loan principal and accrued interest in March 2020. In March 2020, the Company obtained additional one-year term facilities from Jilin Province Trust Co. Ltd with a maximum amount of RMB40.0 million (approximately $5.9 million), which was secured by land use rights and buildings of Eodos Liga Energy Co., Ltd. Under the facilities, the Company borrowed RMB24.2 million ($3.6 million) on March 13, 2020, bearing annual interest of 13.5%.
| (g) | In 2019, the Company entered into a short term loan agreement with Suzhou Zhengyuanwei Needle Ce Co., Ltd, an unrelated party to loan RMB0.6 million (approximately $0.1 million), bearing annual interest rate of 12%. As of September 30, 2020, loan amount of RMB0.5 million ($73,638) remained outstanding.

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