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Loans
 12 Months Ended
Dec. 31, 2022
Long-Term Investments, Net [Abstract]  
Loans

15. Loans

 

Bank loans:

 

Bank borrowings as of December 31, 2021 and 2022 consisted of the followings:

 

   December 31,   December 31, 
   2021   2022 
Short-term bank borrowings  $8,811,820   $14,907,875 

 

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) bearing interest at 130% of benchmark rate of the People’s Bank of China (“PBOC”) for three-year long-term loans with the term from June 12, 2018 to June 10, 2021, 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 June 30, 2021, the Company repaid all the bank loan.

 

On November 16, 2021, the Company obtained banking facilities from Shaoxing Branch of Bank of Communications Co., Ltd with a maximum amount of RMB120.1 million (approximately $16.9 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 a total of RMB56.0 million (approximately $8.8 million) and RMB59.0 million (approximately $8.5 million) as of December 31, 2021 and 2022, respectively, for varying terms ending between November 16, 2022 and May 16, 2023, bearing interest at 4.15% - 4.35% per annum. The Company repaid RMB45 million (approximately $6.5 million) in March 2023 and borrowed RMB60 million (approximately $8.7 million) under the same facility for a term until February 15, 2024 to March 17, 2024, bearing annual interest rate at 3.65%.

 

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.

 

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). The Company repaid the bills in January to February 2022.

 

On March 21, 2022, the Company renewed the above acceptance bills facilities from Bank of Ningbo Co., Ltd with a maximum amount of RMB71.6 million ($10.4 million) with other terms remain the same. Under the facilities, as of December 31, 2022, the Company borrowed a total of RMB15.9 million (approximately $2.3 million) in the form of bills payable for various terms expiring from January to June 2023, which was secured by the Company’s cash totaling RMB15.9 million (approximately $2.3 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 $1.4 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 and secured by an unrelated third party, Jiangsu Credits Financing Guarantee Co., Ltd. The Company borrowed RMB10 million (approximately $1.4 million) on January 20, 2022 for a term until January 16, 2023. The Company early repaid RMB10 million (approximately $1.4 million) on January 5, 2023. On January 5, 2023,  the Company obtained a one-year term loan of RMB10 million (approximately $1.4 million) for a period of one year to January 4, 2023, bearing interest at 120% of benchmark rate of the PBOC for short-term loans, , which is 3.85% per annum, while other terms and guarantee remain the same. The Company borrowed RMB10 million (approximately $1.4 million) on January 6, 2023.

 

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 $1.4 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 100% equity in CBAK Nanjing held by BAK Investment and the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. The Company borrowed RMB10 million (approximately $1.4 million) on February 17, 2022 for a term until January 28, 2023. The Company subsequently repaid RMB10 million (approximately $1.4 million) on January 16, 2023. On January 14, 2023 , the Company obtained a one-year loan of RMB10 million (approximately $1.4 million) bearing interest at 129% of benchmark rate of PBOC for short-term loans, which is 4.70% per annum. The Company borrowed RMB10 million (approximately $1.4 million) on January 17, 2023 for a term until January 13, 2024.

 

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 $1.4 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 $1.45 million) on the same date. On May 17, 2022, the Company early repaid the loan principal and related loan interests.

 

On April 28, 2022, the Company obtained a three-year term facility from Industrial and Commercial Bank of China Nanjing Gaochun branch, with a maximum amount of RMB12 million (approximately $1.7 million) with the term from April 21, 2022 to April 21, 2025. The facilities were guaranteed by the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Under the facility, the Company borrowed RMB10 million (approximately $1.4 million) on April 29, 2022, bearing interest at 3.95% per annum for a term until April 29, 2023.

 

On June 22, 2022, the Company obtained another one-year term facility from China Zheshang Bank Co., Ltd. Shangyu Branch with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 4.5% 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 $1.4 million) on the same date for a term until June 21, 2023. On November 10, 2022, the Company early repaid the loan principal and the related loan interests.

 

On September 25, 2022, the Company entered into another one-year term facility with Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB9 million (approximately $1.3 million) bearing interest rate at 4.81% per annum. The facility was guaranteed by 100% equity in CBAK Nanjing held by BAK Investment and the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. The Company borrowed RMB9 million (approximately $1.3 million) on September 27, 2022 for a term until September 24, 2023.

 

On November 8, 2022, the Company entered into a short-term loan agreement with China CITIC Bank Shaoxing Branch to August 9, 2023 with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest rate at 4.35% per annum. The Company has repaid RMB5 million (approximately $0.7 million) and RMB0.2 million (approximately $0.1 million) on November 16, 2022 and December 27, 2022, respectively. Subsequent to the repayment, the Company entered into another short-term loan agreement with China CITIC Bank Shaoxing Branch for a one-year short-term loan agreement with a maximum amount of RMB0.2 million (approximately $0.1 million) for December 27, 2022 to December 27, 2023, bearing interest rate at 4.20% per annum.

 

On December 9, 2022, the Company obtained a RMB5 million (approximately $0.7 million) letter of credit from China CITIC Bank for a period to October 30, 2024 for settlement of Hitrans purchase. The Company had not utilized the letter of credit as of December 31, 2022.

 

The Company borrowed a series of acceptance bills from Agricultural Bank of China totaling RMB28.4 million (approximately $4.1 million) for various terms through January to March 2023, which was secured by the Company’s cash totaling RMB28.4 million (approximately $4.1 million) (Note 3).

 

The Company borrowed a series of acceptance bills from China Zheshang Bank Co. Ltd Shenyang Branch totaling RMB72.4 million (approximately $10.5 million) for various terms ending through January to June 2023, which was secured by the Company’s cash totaling RMB53.4 million (approximately $7.7 million) (Note 3) and the Company’s bills receivable totals RMB22.2 million (approximately $3.2 million) (Note 4).

 

The Company borrowed a series of acceptance bills from Shaoxing Branch of Bank of Communications Co., Ltd totaling RMB21.9 million (approximately $3.2 million) for various terms ending through March to May 2023, which was secured by the Company’s cash totaling RMB12.2 million (approximately $1.8 million) (Note 3) and the Company’s land use rights and buildings.

 

The Company borrowed a series of acceptance bills from China Merchants Bank Dalian Branch totaling RMB96.4 million (approximately $14.0 million) for various terms through January to June 2023, which was secured by the Company’s cash totaling RMB96.4 million (approximately $14.0 million) (Note 3).

 

The Company borrowed a series of acceptance bills from Jiangsu Gaochun Rural Commercial Bank totaling RMB6.7 million (approximately $0.9 million) for various terms through January to June 2023, which was secured by the Company’s cash totaling RMB6.7 million (approximately $0.9 million) (Note 3).

 

The facilities were also secured by the Company’s assets with the following carrying amounts:

 

   December 31,   December 31, 
   2021   2022 
Pledged deposits (note 3)  $18,996,749   $30,836,864 
Bills receivables (note 4)   4,446,553    3,383,130 
Right-of-use assets (note 10)   6,286,473    5,598,716 
Buildings   8,565,837    4,419,749 
   $38,295,612   $44,238,459 

 

As of December 31, 2022, the Company had unutilized committed banking facilities totaled $6.8 million.

 

During the years ended December 31, 2021 and 2022, interest of $339,935 and $646,013 were incurred on the Company’s bank borrowings, respectively.

 

Other short-term loans:

 

Other short-term loans as of December 31, 2021 and 2022 consisted of the following:

 

      December 31,   December 31, 
   Note  2021   2022 
Advance from related parties             
– Mr. Xiangqian Li, the Company’s Former CEO  (a)  $100,000   $100,000 
– Mr. Yunfei Li  (b)   153,300    223,927 
– Shareholders  (c)   94,971    
-
 
– Mr. Junnan Ye (Note 12)      3,933,848    
-
 
       4,282,119    323,927 
Advances from unrelated third party             
– Mr. Wenwu Yu  (d)   17,282    15,896 
– Ms. Longqian Peng  (d)   301,044    276,905 
– Suzhou Zhengyuanwei Needle Ce Co., Ltd  (e)   78,677    72,368 
       397,003    365,169 
      $4,679,122   $689,096 

 

(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.

 

(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, 2022, loan amount of RMB0.5 million ($72,368) remained outstanding.

 

During the years ended December 31, 2022, Ms. Xiangyu Pei, the Company’s Interim CFO advances RMB10 million (approximately $1.4 million) to the Company. The loan was unsecured, non-interest bearing and repayable on demand. The Company fully repaid in November 2022.

 

During the years ended December 31, 2021 and 2022, interest of $145,034 and $9,044 were incurred on the Company’s borrowings from unrelated parties, respectively.