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Loans
 9 Months Ended
Sep. 30, 2025
Loans [Abstract]  
Loans
15. Loans

 

Bank loans:

 

Bank borrowings as of December 31, 2024 and September 30, 2025 consisted of the followings:

 

   December 31,   September 30, 
   2024   2025 
Short-term bank borrowings  $26,087,350   $29,569,757 
Long-term bank borrowings   
-
    4,760,768 
   $26,087,350   $34,330,525 

 

In January 2023, Hitrans 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. On January 22, 2025, Hitrans and Bank of Communications entered into a new banking facilities for another five years from January 22, 2025 to January 22, 2030 for a maximum guarantee of loan amount to RMB155.8 million (approximately $21.5 million). The facility was secured by Hitrans’s land use rights and buildings. Under the facility, Hitrans borrowed RMB159.9 million (approximately $21.9 million) and RMB147.7 million (approximately $20.7 million ) as of December 31, 2024 and September 30, 2025, respectively, bearing interest at 2.5% to 3.45% per annum expiring through January to June 2026.

 

On January 17, 2022, Nanjing CBAK 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 former 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. Nanjing CBAK borrowed RMB10 million (approximately $1.4 million) on January 20, 2022 for a term until January 16, 2023. Nanjing CBAK repaid RMB10 million (approximately $1.4 million) early on January 5, 2023. On January 6, 2023, Nanjing CBAK 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. Nanjing CBAK repaid the loan on January 4, 2024.

 

On February 9, 2022, NJ CBAK 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 former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Nanjing CBAK borrowed RMB10 million (approximately $1.4 million) on February 17, 2022 for a term until January 28, 2023. Nanjing CBAK repaid RMB10 million (approximately $1.4 million) on January 16, 2023. On January 17, 2023, Nanjing CBAK 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. Nanjing CBAK repaid the loan on January 13, 2024.

 

On April 28, 2022, Nanjing CBAK 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 former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Under the facility, Nanjing CBAK 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. Nanjing CBAK repaid RMB10 million (approximately $1.4 million) on April 19, 2023. On April 20, 2023, Nanjing CBAK 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. Nanjing CBAK repaid the loan on April 19, 2024. 

 

Nanjing CBAK 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 27, 2023 to August 31, 2024. The facility was guaranteed by 100% equity in CBAK Nanjing held by BAK Investment and the Company’s former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. NJ CBAK borrowed RMB9 million (approximately $1.3 million ) on September 27, 2023 for a term until August 31, 2024. Nanjing CBAK repaid the loan on August 31, 2024.  

 

Hitrans entered into a 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. Hitrans repaid the loan on May 2, 2024. 

 

On January 7, 2023, Nanjing CBAK 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 former CEO, Mr. Yunfei Li, Mr. Yunfei Li’s wife Ms. Qinghui Yuan and CBAK Nanjing. Nanjing CBAK 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. Nanjing CBAK repaid the above early on June 15, 2023. On June 27, 2023, Nanjing CBAK 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 3.65 % pr annum. Nanjing CBAK borrowed RMB10 million (approximately $1.4 million) on the same date. The loan was guaranteed by the Company’s former CEO, Mr. Yunfei Li, Mr. Yunfei Li’s wife Ms. Qinghui Yuan and CBAK Nanjing. Nanjing CBAK repaid the loan on June 26, 2024.

On March 28, 2024, CBAK New Energy 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. CBAK New Energy borrowed RMB5 million (approximately $0.7 million) on the same date. The loan was secured by CBAK Power’s buildings in Dalian. CBAK New Energy repaid RMB5 million (approximately $0.7 million) on March 27, 2024. On March 28, 2024, CBAK New Energy borrowed another one-year loan of RMB5 million (approximately $0.7 million) bearing interest rate at 3.45% per annum. CBAK New Energy early repaid the loan on August 21, 2024. 

 

On April 19, 2023, Nanjing CBAK 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. Nanjing CBAK borrowed RMB10 million (approximately $1.4 million) on April 23, 2023. The loan was guaranteed by the Company’s former CEO, Mr. Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Nanjing CBAK repaid the loan on April 9, 2024.

 

On July 31, 2023, Nanjing CBAK 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 former CEO, Mr, Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Under the facility, Nanjing CBAK borrowed RMB10 million (approximately $1.4 million) on July 31, 2023, bearing interest rate at 3.15% per annum. Nanjing CBAK repaid the loan on July 22, 2024.

 

On August 3, 2023, CBAK Energy 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. CBAK Energy borrowed RMB10 million (approximately $1.4 million) on September 27, 2023. The loan was secured by CBAK Power’s buildings in Dalian. CBAK Energy repaid the loan on August 2, 2024.

 

On January 24, 2024, Hitrans entered into a short-term credit-guaranteed loan agreement with Zhejiang Shangyu Rural Commercial Bank for one year to January 17, 2025 with an amount of RMB5 million (approximately $0.7 million) bearing interest at 4.1% per annum. Hitrans borrowed RMB5 million (approximately $0.7 million) on the same date. Hitrans early repaid the loan on September 27, 2024. 

 

On March 26, 2024, Hitrans entered into a short-term credit-guaranteed loan agreement with Zhejiang Shangyu Rural Commercial Bank for one year to March 25, 2025 with an amount of RMB5 million (approximately $0.7 million) bearing interest at 4.1% per annum. Hitrans borrowed RMB5 million (approximately $0.7 million) on the same date. Hitrans early repaid the loan on September 27, 2024. 

 

On April 9, 2024, Hitrans and China Zheshang Bank Co., Ltd Shangyu Branch entered into a short-term loan agreement for one year from April 9, 2024 to April 7, 2025 for a maximum loan amount to RMB5.5 million (approximately $0.8 million) bearing interest rate at 4.05% per annum. Hitrans borrowed RMB5.5 million (approximately $0.8 million) on the same date. Hitrans early repaid the loan on January 24, 2025. 

 

On June 24, 2024, CBAK Nanjing and Bank of China entered into a short-term loan agreement, with a maximum amount of RMB10 million (approximately $1.4 million) with the term from June 24, 2024 to June 20, 2025.The loan was guaranteed by the Company’s former CEO, Mr, Yunfei Li and Mr. Yunfei Li’s wife Ms. Qinghui Yuan. Under the facility, CBAK Nanjing borrowed RMB10 million (approximately $1.4 million) on June 24, 2024, bearing interest rate at 3.0% per annum. CBAK Nanjing early repaid the loan on August 23, 2024.

 

On September 29, 2024, Hitrans and Zhejiang Shangyu Rural Commercial Bank entered into a short-term credit-guaranteed loan agreement for RMB15 million (approximately $2.0 million) with the term of one year from September 29, 2024 to September 26, 2025 bearing 4.00% interest rate. Hitrans borrowed RMB15 million (approximately $2.1 million) on the same date. Hitrans repaid the loan on September 26, 2025.

On December 31, 2024, Hitrans and China Everbright Bank Co., Ltd Shaoxing Branch entered into a short-term loan agreement for RMB10 million (approximately $1.4 million) with the term of one year from December 31, 2024 to December 30, 2025 bearing 2.9% interest rate. Hitrans borrowed RMB10 million (approximately $1.4 million)  on the same date.

 

On January 17, 2025, Hitrans entered into a long-term Maximum Pledge Agreement with Zhejiang Shangyu Rural Commercial Bank, for the period from January 17, 2025 to September 25, 2027, with a maximum facility amount of RMB76.56 million (approximately $10.54 million). The facility was secured by the land use right and buildings of Hitrans. Hitrans has borrowed RMB43.9 million (approximately $6.2 million)  as of September 30, 2025, bearing interest rate at 2.85%-3.6% per annum, of which RMB10 million (approximately $1.4 million) repayable on January 16, 2026, RMB30 million (approximately $4.2 million) repayable on September 25, 2027 and the remaining RMB3.9 million (approximately $0.5 million) repayable on June 20, 2027.

 

On January 20, 2025, Nanjing CBAK entered into an unsecured revolving loan agreement with Bank of Ningbo Co., Ltd. Gaochun Branch with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 2.8% per annum (LPR interest rate -30 bp), with a one-year loan period ending on January 20, 2026. Nanjing CBAK borrowed RMB10 million (approximately $1.4 million) under this loan agreement on January 20, 2025. Nanjing CBAK early repaid the loan on September 20, 2025.

 

On February 19, 2025, Nanjing CBAK obtained a RMB30 million facility (approximately $4.1 million) from Jiangsu Gaochun Rural Commercial Bank, with the term from February 19, 2025 to September 23, 2027. The facility was guaranteed by 100% equity in CBAK Nanjing held by BAK Investment. Nanjing CBAK borrowed RMB3 million (approximately $0.4 million ) as of September 30, 2025, bearing interest rate at 2.98% per annum, repayable on May 19, 2026.

 

On February 25, 2025, Hitrans entered into a short-term factoring loan agreement with China Construction Bank Co., Ltd for a maximum amount of RMB10 million (approximately $1.4 million) for a period of one year from February 28, 2025 to February 27, 2026, bearing interest of 3.7% per annum. Hitrans borrowed RMB10 million (approximately $1.4 million)  on the same date.

 

On June 28, 2025, Nanjing CBAK entered into a short-term loan agreement with Agricultural Bank of China Co., Limited for RMB12 million (approximately $1.7 million) from June 28, 2025 to June 26, 2026, bearing interest 2.60% per annum. Nanjing CBAK borrowed RMB12 million (approximately $1.7 million) on the same date. Nanjing CBAK early repaid the loan on July 18, 2025.

 

On June 30, 2025, CBAK Power obtained a banking facility from China Guangfa Bank Co., Ltd with a maximum amount of RMB100 million (approximately $14 million) for a term to June 12, 2026 for short-term borrowings and issuance of acceptance bills to settle materials suppliers, guaranteed by Power’s buildings and pledged deposits. CBAK Power borrowed HKD 10 million (approximately $1.4 million)  from the above facility as of September 30, 2025, bearing interest at 2.65% per annum, repayable on August 14, 2026. CBAK Power has borrowed a series of bills $103.0 million (approximately $14.5 million) for various terms expiring through January to March 2026, which was secured by CBAK Power’s buildings and pledged deposit of RMB20.6 million (approximately $2.9 million) (note 2).

 

On July 30, 2025, Hitrans entered into a short-term loan agreement with Industrial Bank Co., Ltd for RMB10 million (approximately $1.4 million) for a period of one year bearing interest of 3% per annum. Hitrans borrowed RMB10 million (approximately $1.4 million)  on July 31, 2025.

 

On August 21, 2025, CBAK Power entered into a short-term loan agreement with China Construction Bank for RMB10 million (approximately $1.4 million) for a period of one year, bearing interest of 2.2% per annum. CBAK Power borrowed RMB10 million (approximately $1.4 million) on August 29, 2025 and repayable on August 21, 2026.

 

CBAK Power and Nanjing CBAK obtained banking facilities from China Zheshang Bank Co., Ltd. Shenyang Branch with a maximum amount of RMB690 million (approximately $96.3 million) with the term to March 16, 2026. CBAK Power and Nanjing CBAK borrowed a series of acceptance bills totaling RMB108.3 million (approximately $15.2 million) for various terms expiring through October 2025 to March 2026, which was secured by the CBAK Power’s and Nanjing CBAK’s pledged deposit of RMB104.9 million (approximately $14.7 million) (note 2) and CBAK Power’s and Nanjing CBAK’s bills receivables of RMB7.2 million (approximately $1.0 million) (note 4).

Hitrans renewed the banking facilities from China Zheshang Bank Co., Ltd. Shangyu Branch with a maximum amount of RMB150 million (approximately $20.9 million) with the term to May 28, 2026. Hitrans borrowed a series of acceptance bills totaling RMB93.9 million (approximately $13.2 million) for various terms expiring through October 2025 to March 2026, which was secured by Hitrans’s pledged deposit of RMB93.9 million (approximately $13.2 million) (note 2). 

 

Nanjing CBAK borrowed a series of acceptance bills from Bank of Nanjing totaling RMB40.5 million (approximately $5.7 million) for various terms expiring through October 2025 to March 2026, which was secured by Nanjing CBAK’s pledged deposit of RMB30.7 million (approximately $4.3 million) (note 2) and the balance guaranteed by 100% equity in CBAK Nanjing held by BAK Investment.

 

Nanjing CBAK borrowed a series of acceptance bills from Bank of Ningbo totaling RMB24.5 million (approximately $3.4 million) for various terms expiring through October 2025 to March 2026, which was secured by Nanjing CBAK’s pledged deposit of RMB24.5 million (approximately $3.4 million) (note 2).

 

Hitrans borrowed a series of acceptance bills from Bank of Communications Co., Ltd. Shangyu Branch totaling RMB43.2 million (approximately $6.1 million) expiring through October 2025 to February 2026, which was secured by Hitrans’s pledged deposit of RMB43.2 million (approximately $6.1 million) (note 2).

 

Hitrans borrowed a series of acceptance bills from China CITIC Bank Co., Ltd totaling RMB3.2 million (approximately $0.5 million) expiring in November 2025, which was secured by Hitrans’s pledged deposit of RMB1.4 million (approximately $0.2 million) (note 2) and bills receivables of RMB1.8 million (approximately $0.2 million) (note 4).

 

Hitrans borrowed a series of acceptance bills from Zhejiang Shangyu Rural Commercial Bank Co., Ltd totaling RMB20.0 million (approximately $2.8 million) expiring through October 2025 to March 2026, which was secured by Hitrans’s pledged deposit of RMB20.0 million (approximately $2.8 million) (note 2).

 

CBAK Power borrowed a series of acceptance bills from Industrial and Commercial Bank of China totaling RMB10.9 million (approximately $1.5 million) expiring through January to March 2026, which was secured by CBAK Power’s pledged deposit of RMB10.9 million (approximately $1.5 million) (note 2).

 

Hitrans borrowed a series of acceptance bills from Industrial Bank totaling RMB16.0 million (approximately $2.3 million) expiring in March 2026, which was secured by Hitrans’s pledged deposit of RMB11.0 million (approximately $1.5 million) (note 2).

 

Nanjing CBAK borrowed a series of acceptance bills from Agricultural Bank of China totaling RMB26.5 million (approximately $3.7 million) expiring through January to March 2026, which was secured by Nanjing CBAK’s pledged deposit of RMB7.8 million (approximately $1.1 million) (note 2) and the balance guaranteed by 100% equity in CBAK Naning held by BAK Investment.

 

Nanjing CBAK obtained a letter of credit from Bank of Ningbo of RMB5 million (approximately $0.7 million) for settlement of materials purchase bearing interest rate at 1.15% per for a period of one year from to September 18, 2026, which was secured by Nanjing CBAK’s pledged deposit of RMB5 million (approximately $0.7 million) (note 2).

 

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

 

   December 31,   September 30, 
   2024   2025 
Pledged deposits (note 2)  $54,061,642   $52,502,061 
Short-term deposits (note 3)   2,000,000    
-
 
Bills receivables (note 4)   1,395,874    1,264,074 
Right-of-use assets (note 10)   4,982,972    12,214,974 
Buildings (note 7)   3,818,112    28,358,067 
Construction-in-progress (note 8)   
-
    19,286,425 
   $66,258,600   $113,625,601 

As of September 30, 2025, the Company had $20.2 unutilized committed banking facilities.

 

During the three months ended September 30, 2024 and 2025, interest of $274,114 and $298,852 were incurred on the Company’s bank borrowings, respectively.  

 

During the nine months ended September 30, 2024 and 2025, interest of $901,850 and $822,104 were incurred on the Company’s bank borrowings, respectively.  

 

Other short-term loans:

 

Other short-term loans as of December 31, 2024 and September 30, 2025 consisted of the following:

 

      December 31,   September 30, 
   Note  2024   2025 
Advance from related parties           
– Mr. Xiangqian Li, the Company’s Former CEO  (a)  $100,000   $100,000 
– Mr. Yunfei Li, the Company’s Former CEO  (b)   158,889    157,857 
       258,889    257,857 
Advances from unrelated third party             
– Mr. Wenwu Yu  (c)   1,347    1,380 
– Ms. Longqian Peng  (c)   6,980    7,156 
– Suzhou Zhengyuanwei Needle Ce Co., Ltd  (d)   68,499    70,219 
       76,826    78,755 
      $335,715   $336,612 

 

(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 former 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, 2025, loan amount of RMB0.5 million ($0.1 million) remained outstanding.

 

During the three months ended September 30, 2024 and 2025, interest of $2,140 and $2,142 were incurred on the Company’s borrowings from unrelated parties, respectively.  

 

During the nine months ended September 30, 2024 and 2025, interest of $6,349 and $6,301 were incurred on the Company’s borrowings from unrelated parties, respectively.