XML 32 R21.htm IDEA: XBRL DOCUMENT v3.23.3
Loans
 9 Months Ended
Sep. 30, 2023
Loans [Abstract]  
Loans

15. Loans 

 

Bank loans:

 

Bank borrowings as of December 31, 2022 and September 30, 2023 consisted of the followings:

 

   December 31,   September 30, 
   2022   2023 
Short-term bank borrowings  $14,907,875   $33,190,571 

 

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 $16.6 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 RMB59.0 million (approximately $8.5 million) as of December 31, 2022.

 

In January 2023, the Company renewed the banking facilities with Shaoxing Branch of Bank of Communications Co., Ltd with a maximum amount of RMB160.0 million (approximately $22.1 million) with the term from January 2023 to December 2027. The facility was secured by the Company’s land use rights and buildings. Under the facility, the Company has borrowed RMB148.5 million (approximately $20.4 million) as of September 30, 2023, bearing interest at 3.65% per annum expiring through February to May 2024.

 

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 $11.6 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 $1.4 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 totaling RMB10 million (approximately $1.4 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 ($9.9 million) with other terms remain the same. Under the facilities, as of December 31, 2022 and September 30, 2023, the Company borrowed a total of RMB15.9 million (approximately $2.3 million) and RMB43.4 million (approximately $6.0 million), respectively, in the form of bills payable for various terms expiring from October 2023 to February 2024, which was secured by the Company’s cash totaling RMB15.9 million (approximately $2.3 million) and RMB43.4 million (approximately $6.0 million) (Note 2), respectively.

 

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 repaid RMB10 million (approximately $1.4 million) early on January 5, 2023. On January 6, 2023, the Company borrowed a one-year term loan of RMB10 million (approximately $1.4 million) for a period of one year to January 4, 2024, 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.

 

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 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 repaid RMB10 million (approximately $1.4 million) on January 16, 2023. On January 17, 2023, the Company borrowed 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 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 $1.4 million) on the same date. On May 17, 2022, the Company repaid the loan principal and related loan interests early.

 

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 facility was 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 $1.5 million) on April 29, 2022, bearing interest at 3.95% per annum for a term until April 29, 2023. The Company repaid RMB10 million (approximately $1.4 million) on April 19, 2023. On April 20, 2023, the Company borrowed another one-year loan of RMB10 million (approximately $1.4 million) bearing interest at 102.5% of benchmark rate of PBOC for short-term loans, which is 3.90% per annum for a term until April 19, 2024.

 

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 repaid the loan principal and the related loan interests early.

 

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. The Company repaid the loan on September 24, 2023.

 

The Company entered into another one-year term facility with Jiangsu Gaochun Rural Commercial Bank with a maximum amount of RMB9 million (approximately $1.2 million) bearing interest rate at 4.6% per annum for a period from September 24, 2023 to August 31, 2024. 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 $1.2 million) on September 27, 2023 for a term until September August 31, 2024.

 

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 borrowed RMB10 million (approximately $1.4 million) on the same date. The Company has repaid RMB5 million (approximately $0.7 million), RMB0.2 million (approximately $0.1 million) and RMB4.8, million (approximately $0.7 million) on November 16, 2022, December 27, 2022 and August 9, 2023, respectively. 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. The Company entered into another loan agreement with China CITIC Bank Shaoxing Branch for a short-term loan of RMB4.8 million (approximately $0.7 million) from August 10, 2023 to May 2, 2024, bearing interest rate at 4.3% 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 utilized RMB1.5 million (approximately $0.2 million) letter of credit at an interest rate of 2.7% for a period of one year to January 5, 2024.

 

On January 7, 2023, the Company obtained a two-year term facility from Postal Savings Bank of China, Nanjing Gaochun Branch with a maximum amount of RMB10 million (approximately $1.4 million) for a period from January 7, 2023 to January 6, 2025. The facility was guaranteed by the Company’s CEO, Mr. Yunfei Li, Mr. Yunfei Li’s wife Ms. Qinghui Yuan and CBAK New Energy (Nanjing) Co., Ltd. The Company borrowed RMB5 million (approximately $0.7 million) on January 12, 2023 for a term of one year until January 11, 2024, bearing interest at 3.65% per annum. The Company repaid the above early on June 15, 2023. On June 27, 2023, the Company entered into another loan agreement for one year from June 27, 2023 to June 26, 2024 under the two-year term facility for a maximum loan amount of RMB10 million (approximately $1.4 million) bearing interest rate at 3.85% pr annum. The Company borrowed RMB10 million (approximately $1.4 million) on the same date. The loan was guaranteed by the Company’s CEO, Mr. Yunfei Li, Mr. Yunfei Li’s wife Ms. Qinghui Yuan and CBAK New Energy (Nanjing) Co., Ltd.

  

On March 29, 2023, the Company and Bank of China Limited entered into a short-term loan agreement for one year from March 29, 2023 to March 28, 2024 for a maximum loan amount to RMB5 million (approximately $0.7 million) bearing interest rate at 3.65% per annum. The Company borrowed RMB5 million (approximately $0.7 million) on the same date. The loan was secured by the Company’s buildings in Dalian.

 

On April 19, 2023, the Company and Bank of Nanjing Gaochun Branch entered into a short-term loan agreement for one year from April 10, 2023 to April 9, 2024 for RMB10 million (approximately $1.4 million) bearing interest rate at 3.7% per annum. The Company borrowed RMB10 million (approximately $1.4 million) on April 23, 2023. The loan was guaranteed by the Company’s CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan.

 

On June 9, 2023, the Company and China Zheshang Bank Co., Ltd Shangyu Branch entered into a short-term loan agreement for one year from June 9, 2023 to June 7, 2024 for a maximum loan amount to RMB4 million (approximately $0.6 million) bearing interest rate at 4.55% per annum. The Company borrowed RMB4 million (approximately $0.6 million) on the same date.

 

On July 31, 2023, the Company obtained a three-year term facility from Bank of China Gaochun Branch, with a maximum amount of RMB10 million (approximately $1.4 million) with the term from July 31, 2023 to July 30, 2026. The facility was 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 July 31, 2023, bearing interest rate at 3.95% per annum.

 

On August 3, 2023, the Company and Bank of China entered into a short term loan agreement for one year from August 3, 2023 to August 2, 2024 for a maximum amount of RMB10 million (approximately $1.4 million) bearing interest rate at 3.55% per annum. The Company borrowed RMB10 million (approximately $1.4 million) on the same date. The loan was secured by the Company’s buildings in Dalian.

 

The Company borrowed a series of acceptance bills from Agricultural Bank of China totaling RMB5.3 million (approximately $0.7 million) for various terms expiring in October 2023 to December 2023, which was secured by the Company’s cash totaling RMB5.3 million (approximately $0.7 million) (Note 2).

 

The Company borrowed a series of acceptance bills from China Zheshang Bank Co. Ltd Shenyang Branch totaling RMB83.5 million (approximately $11.5 million) for various terms through January to March 2024, which was secured by the Company’s cash totaling RMB83.5 million (approximately $11.5 million) (Note 2).

 

The Company borrowed a series of acceptance bills from China Zheshang Bank Co. Ltd Shangyu Branch totaling RMB83.0 million (approximately $11.4 million) for various terms through January to March 2024, which was secured by the Company’s cash totaling RMB51.8 million (approximately $7.1 million) (Note 2) and the Company’s bills receivable totaling RMB28.2 million (approximately $3.9 million) (Note 3).

 

The Company borrowed a series of acceptance bills from Shaoxing Branch of Bank of Communications Co., Ltd totaling RMB7.0 million (approximately $0.9 million) for various terms ending through October 2023, which was secured by the Company’s cash totaling RMB3.5 million (approximately $0.5 million) (Note 2) and the Company’s land use rights and buildings in Zhejiang.

 

The Company borrowed a series of acceptance bills from China Merchants Bank Dalian Branch totaling RMB25.8 million (approximately $3.5 million) for various terms through October to December 2023, which was secured by the Company’s cash totaling RMB25.8 million (approximately $3.5 million) (Note 2).

 

The Company borrowed a series of acceptance bills from Bank of China Limited totaling RMB35.2 million (approximately $4.8 million) for various terms through September to December 2023, which was secured by the Company’s cash totaling RMB35.2 million (approximately $4.8 million) (Note 2).

 

The Company borrowed a series of acceptance bills from Jiangsu Gaochun Rural Commercial Bank totaling RM24.8 million (approximately $3.4 million) for various terms through March 2024, which was secured by the Company’s cash totaling RMB24.8 million (approximately $3.4 million) (Note 2).

  

The Company borrowed a series of acceptance bills from China CITIC Bank totaling RMB44.1 million (approximately $6.1 million) for various terms through October 2023 to March 2024, which was secured by the Company’s cash totaling RMB35.8 million (approximately $4.9 million) (Note 2) and the Company’s bills receivable totaling RMB8.5 million (approximately $1.2 million) (Note 3).

  

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

 

   December 31,   September 30, 
   2022   2023 
Pledged deposits (note 2)  $30,836,864   $42,511,872 
Bills receivables (note 3)   3,383,130    5,270,949 
Right-of-use assets (note 9)   5,598,716    5,197,787 
Buildings   4,419,749    5,812,573 
   $44,238,459   $58,793,181 

 

As of September 30, 2023, the Company had unutilized committed banking facilities totaled $8.2 million.

 

During the three months ended September 30, 2022 and 2023, interest of $183,291 and $231,575 were incurred on the Company’s bank borrowings, respectively.

 

During the nine months ended September 30, 2022 and 2023, interest of $469,402 and $631,933 were incurred on the Company’s bank borrowings, respectively.

 

Other short-term loans:

 

Other short-term loans as of December 31, 2022 and September 30, 2023 consisted of the following:

 

       December 31,   September 30, 
   Note   2022   2023 
Advance from related parties            
– Mr. Xiangqian Li, the Company’s Former CEO  (a)   $100,000   $100,000 
– Mr. Yunfei Li  (b)    223,927    161,503 
        323,927    261,503 
Advances from unrelated third party              
– Mr. Wenwu Yu  (c)    15,896    1,351 
– Ms. Longqian Peng  (c)    276,905    7,003 
– Suzhou Zhengyuanwei Needle Ce Co., Ltd  (d)    72,368    68,724 
        365,169    77,078 
       $689,096   $338,581 

 

(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)Advances from unrelated third parties were unsecured, non-interest bearing and repayable on demand.

 

(d)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, 2023, loan amount of RMB0.5 million ($0.1 million) remained outstanding.

 

During the three months ended September 30, 2022 and 2023, interest of $2,238 and $2,118 were incurred on the Company’s borrowings from unrelated parties, respectively.

 

During the nine months ended September 30, 2022 and 2023, interest of $6,896 and $6,475 were incurred on the Company’s borrowings from unrelated parties, respectively.