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v3.22.1

Loans | 12 Months Ended
--- | ---
Dec. 31, 2021
Debt Disclosure [Abstract] |
Loans | 15. Loans Bank loans: Bank borrowings as of December 31, 2020 and 2021 consisted of the followings:
|  | December 31, |  |  | December 31, |
|  | 2020 |  |  | 2021 |
Current maturities of long-term bank loans |  | $ | 13,739,546 |  |  | $ | - |
Short-term bank borrowings |  |  | - |  |  |  | 8,811,820 |
|  | $ | 13,739,546 |  |  | $ | 8,811,820 |
On June 4, 2018, the Company obtained banking facilities from China Everbright Bank Dalian Branch with a maximum amount of RMB200 million (approximately $30.63 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 facilities were secured by the Company’s land use rights, buildings, machinery and equipment. According to the original repayment schedule, the loans are repayable in six installments of RMB0.8 million ($0.12 million) on December 10, 2018, RMB24.3 million ($3.72 million) on June 10, 2019, RMB0.8 million ($0.12 million) on December 10, 2019, RMB74.7 million ($11.44 million) on June 10, 2020, RMB0.8 million ($0.12 million) on December 10, 2020 and RMB66.3 million ($10.16 million) on June 10, 2021. The Company repaid the bank loan of RMB0.8 million ($0.12 million), RMB24.3 million ($3.72 million) and RMB0.8 million ($0.12 million) in December 2018, June 2019 and December 2019, 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 $21.72 million) loans are repayable in eight instalments consisting of RMB1.09 million ($0.17 million) on June 10, 2020, RMB1 million ($0.15 million) on December 10, 2020, RMB2 million ($0.31 million) on January 10, 2021, RMB2 million ($0.31 million) on February 10, 2021, RMB2 million ($0.31 million) on March 10, 2021, RMB2 million ($0.31 million) on April 10, 2021, RMB2 million ($0.31 million) on May 10, 2021, and RMB129.7 million ($19.9 million) on June 10, 2021, respectively. As of December 31, 2021, the Company repaid all the bank loan. 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 $6.1 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 repaid the bank loan of RMB39.9 million (approximately $6.1 million) in December 2020. On November 16, 2021, the Company obtained banking facilities from Shaoxing Branch of Bank of Communications Co., Ltd with a maximum amount of RMB120.7 million (approximately $19.0 million) with the term from November 18, 2021 to November 18, 2026. The facility was secured by the Company’s land use rights and buildings. Under the facility, the Company has borrowed RMB 56.0 million (approximately $8.8 million) for a term until November 16, 2022, bearing interest at 4.35% per annum. On February 28, 2022, the Company borrowed RMB7.1 million loans (approximately $1.1 million) with the term from February 28, 2022 to February 28, 2023 from the above facilities. The Company borrowed a series of acceptance bills from Shaoxing Branch of Bank of Communications Co., Ltd totaled RMB53.5 million (approximately $8.4 million) for various terms through January to June 2022, which was secured by the Company’s cash totaled RMB26.6 million (approximately $4.1 million) (Note 3) and bills receivables totaled RMB26.9 million (approximately $4.3 million) (Note 4). The Company borrowed a series of acceptance bills from Shaoxing Branch of Bank of Communications Co., Ltd totaled RMB20.2 million (approximately $3.2 million) for various terms through May 2022, which was secured by the Company’s cash totaled RMB10.1 million (approximately $1.6 million) (Note 3) and the Company’s land use rights and buildings. In October to December 2020, the Company borrowed a series of acceptance bills from China Merchants Bank totaled RMB13.5 million (approximately $2.07 million) for various terms through April to June 2021, which was secured by the Company’s cash totaled RMB13.5 million (approximately $2.07 million). The Company repaid the bills through April to June 2021. The Company borrowed a series of acceptance bills from Agricultural Bank of China totaled RMB17.9 million (approximately $2.8 million) for various terms through January to June 2022, which was secured by the Company’s cash totaled RMB17.9 million (approximately $2.8 million) (Note 3). The Company borrowed a series of acceptance bills from China Zheshang Bank Co. Ltd Shenyang Branch totaled RMB57.4 million (approximately $9.0 million) for various terms through January to June 2022, which was secured by the Company’s cash totaled RMB56.1 million (approximately $8.8 million) (Note 3) and the Company’s bills receivable totaled RMB1.3 million (approximately $0.2 million) (Note 4). On April 19, 2021, the Company obtained five-year acceptance bills facilities from Bank of Ningbo Co., Ltd with a maximum amount of RMB84.4 million (approximately $13.2 million). Any amount drawn under the facilities requires security in the form of cash or bank acceptance bills receivable of at least the same amount. Under the facilities, as of December 31, 2021, the Company borrowed a total of RMB10 million (approximately $1.6 million) from Bank of Ningbo Co., Ltd in the form of bills payable for a various term expiring from January to February 2022, which was secured by the Company’s cash totaled RMB10 million (approximately $1.6 million) (Note 3). On January 17, 2022, the Company obtained a one-year term facility from Agricultural Bank of China with a maximum amount of RMB10 million (approximately $1.6 million) bearing interest at 105% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 3.85% per annum. The facility was guaranteed by the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. The Company borrowed RMB10 million (approximately $1.6 million) up to the date of this report. On February 9, 2022, the Company obtained a one-year term facility from Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB10 million (approximately $1.6 million) bearing interest at 124% of benchmark rate of the People’s Bank of China (“PBOC”) for short-term loans, which is 4.94% per annum. The facility was guaranteed by the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. The Company borrowed RMB10 million (approximately $1.6 million) up to the date of this report. On March 8, 2022, the Company obtained a one-year term facility from China Zheshang Bank Co., Ltd. Shangyu Branch with a maximum amount of RMB10 million (approximately $1.6 million) bearing interest at 5.5% per annum. The facility was guaranteed by 100% equity in CBAK Power held by BAK Asia and the Company’s CEO, Mr. Yunfei Li. The Company borrowed RMB10 million (approximately $1.6 million) up to the date of this report. The facilities were also secured by the Company’s assets with the following carrying amounts:
|  | December 31, |  |  | December 31, |
|  | 2020 |  |  | 2021 |
Pledged deposits (note 3) |  | $ | 8,791,499 |  |  | $ | 18,996,749 |
Bills receivables (note 4) |  |  | - |  |  |  | 4,446,553 |
Right-of-use assets (note 10) |  |  | 7,500,780 |  |  |  | 6,286,473 |
Buildings |  |  | 16,721,178 |  |  |  | 8,565,837 |
Machinery and equipment |  |  | 4,926,886 |  |  |  | - |
|  | $ | 37,940,343 |  |  | $ | 38,295,612 |
As of December 31, 2021, the Company had unutilized committed banking facilities totaled $8.6 million. During the years ended December 31, 2020 and 2021, interest of $1,710,183 and $339,935 were incurred on the Company’s bank borrowings, respectively. Other short-term loans: Other short-term loans as of December 31, 2020 and 2021 consisted of the following:
|  |  |  |  | December 31, |  |  | December 31, |
|  | Note |  |  | 2020 |  |  | 2021 |
Advance from related parties |  |  |  |  |  |  |  |  |
– Mr. Xiangqian Li, the Company’s Former CEO |  |  | (a) |  |  | $ | 100,000 |  |  | $ | 100,000 |
– Mr. Yunfei Li |  |  | (b) |  |  |  | 278,739 |  |  |  | 153,300 |
– Shareholders |  |  | (c) |  |  |  | 92,446 |  |  |  | 94,971 |
– Mr. Junnan Ye (Note 12) |  |  |  |  |  |  | - |  |  |  | 3,933,848 |
|  |  |  |  |  |  | 471,185 |  |  |  | 4,282,119 |
Advances from unrelated third party |  |  |  |  |  |  |  |  |  |  |  |
– Mr. Wenwu Yu |  |  | (d) |  |  |  | 16,823 |  |  |  | 17,282 |
– Ms. Longqian Peng |  |  | (d) |  |  |  | 689,275 |  |  |  | 301,044 |
– Suzhou Zhengyuanwei Needle Ce Co., Ltd |  |  | (e) |  |  |  | 76,586 |  |  |  | 78,677 |
|  |  |  |  |  |  | 782,684 |  |  |  | 397,003 |
|  |  |  |  |  | $ | 1,253,869 |  |  | $ | 4,679,122 |
| (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 partial earnest money of $966,579 (approximately RMB6.7 million) to these investors. On October 14, 2019, the Company entered into a cancellation agreement with Mr. Shangdong Liu, Mr. Shibin Mao, Ms. Lijuan Wang and Mr. Ping Shen (the creditors). Pursuant to the terms of the cancellation agreement, Mr. Shangdong Liu, Mr. Shibin Mao, Ms. Lijuan Wang and Mr. Ping Shen agreed to cancel and convert the Fifth Debt (note 1) and the Unpaid Earnest Money in exchange for 528,053, 3,536,068, 2,267,798 and 2,267,798 shares of common stock of the Company, respectively, at an exchange price of $0.6 per share. Upon receipt of the shares, the creditors will release the Company from any claims, demands and other obligations relating to the Fifth Debt and the Unpaid Earnest Money. As of December 31, 2021, earnest money of $94,971 remained outstanding.
| (d) | Advances from unrelated third parties were unsecured, non-interest bearing and repayable on demand.
| (e) | 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 December 31, 2021, loan amount of RMB0.5 million ($78,677) remained outstanding.
During the years ended December 31, 2020 and 2021, interest of $587,620 and $145,034 were incurred on the Company’s borrowings from unrelated parties, respectively.

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