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LOANS | 3 Months Ended
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Sep. 30, 2024
Debt Disclosure [Abstract] |
LOANS | NOTE 13 – LOANS Short-term loans Short-term loans from third parties During the year ended June 30, 2024, the Company entered into loan agreements with two third parties. These short-term loans from third parties are mainly used for short-term funding to support the Company’s working capital needs. These loans bear interest or no interest and have terms of no more than three months. As of June 30, 2024, the outstanding balance of short-term loans from third parties amounted to US$1,025,930. One of the loans amounting to US$524,464 was fully repaid by the Company during the three months ended September 30, 2024, and the other loan amounted to US$527,450 was extended for another four months with a new maturity date of December 31, 2024. The Company recorded interest expenses from continuing operations of US$139,890 and nil for the three months ended September 30, 2024 and 2023, respectively. Short-term bank loans Short-term bank loans consisted of the following: SCHEDULE OF SHORT TERM BANK LOANS
Lender |  | September 30, 2024 |  |  | Maturity Date |  | Int. Rate/Year |
Jiangnan Rural Commercial Bank(a) |  | $ | 427,662 |  |  | 2025/5/21 |  |  | 4.65 | %
Bank of Jiangsu |  |  | 419,964 |  |  | 2025/1/20 |  |  | 4.00 | %
Bank of China(b) |  |  | 420,535 |  |  | 2024/6/26 |  |  | 4.90 | %
United Overseas Bank(c) |  |  | 9,533,450 |  |  | October 2024- March 2025 |  |  | 4.20 | %
Industrial and Commercial Bank of China |  |  | 427,662 |  |  | 2025/06/20 |  |  | 3.75 | %
Bank of China(d) |  |  | 427,662 |  |  | 2025/2/7 |  |  | 3.45 | %
Chongqing Rural Commercial Bank(e) |  |  | 1,354,264 |  |  | 2025/3/18 |  |  | 4.30 | %
Industrial and Commercial Bank of China(f) |  |  | 712,771 |  |  | 2025/9/20 |  |  | 3.10 | %
Total short-term bank loans |  | $ | 13,723,970 |  |  |  |  |  |  |
The loans outstanding were guaranteed by the following properties, entities or individuals:
a. | Guaranteed by Mr. Liu Fengming, the former CEO of the Company, Beijing Kanghuayuan Technology, one of the shareholders of the Company and pledged by the patent rights of the Company.
b. | Guaranteed by Mr. Liu Fengming, the former CEO of the Company, and his wife, Ms. Jie Liang. Upon the maturity of the loan, the bank offered the Company an extension, however, the Company failed to sign the extension agreement due to an administrative issue. As of the date of this report, the Company has not received any notice from the bank for repayment, and it expects to continue using this bank facility.
c. | Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family member of Ms. Wang Xiaohui, Chongqing Huajian, Chongqing Yufan and Chongqing Yiyao Electromechanical Co., Ltd. In addition, Chongqing Huajian and Chongqing Yufan also pledged their properties as collateral to guarantee the Company’s loans from United Overseas Bank. As of the date of this report, the Company borrowed additional loans of approximately US$2.5 million under this loan agreement.
d. | Guaranteed by Ms. Wang Xiaohui and her family member, as well as the other subsidiary of the Company, Chongqing Wintus. In addition, Chongqing Huajian and another third party pledged their properties to guarantee the Company’s loan from Bank of China.
e. | Guaranteed by Ms. Wang Xiaohui, one of the shareholders of the Company, her family members, and Chongqing Huajian. The loan is also guaranteed by other subsidiaries of the Company, Wulong Wintus Silk Co., Ltd (“Wulong Wintus”), Chongqing Hongsheng Silk Co., Ltd and Chongqing Liangping Wintus Textile Ltd (“Liangping Wintus”). In addition, Chongqing Huajian pledged its properties to guarantee the Company’s loan from Chongqing Rural Commercial Bank.
f. | The loan is guaranteed by Chongqing Wintus, a subsidiary of the Company. In addition, the Company’s properties with net book values of US$623,712 were pledged as collateral to secure this loan.
Lender |  | June 30, 2024 |  |  | Maturity Date |  | Int. Rate/Year |
Jiangnan Rural Commercial Bank(a) |  | $ | 412,800 |  |  | 2025/5/21 |  |  | 4.65 | %
Bank of Jiangsu |  |  | 405,369 |  |  | 2025/1/20 |  |  | 4.00 | %
Bank of China(b) |  |  | 405,920 |  |  | 2024/6/26 |  |  | 4.90 | %
United Overseas Bank(c) |  |  | 9,536,508 |  |  | July 2024 - December 2024 |  |  | 4.20 | %
Industrial and Commercial Bank of China |  |  | 412,800 |  |  | 2025/06/20 |  |  | 3.75 | %
Industrial and Commercial Bank of China(d) |  |  | 619,199 |  |  | 2024/9/22 |  |  | 3.45 | %
Bank of China(e) |  |  | 412,800 |  |  | 2025/2/7 |  |  | 3.45 | %
Chongqing Rural Commercial Bank(f) |  |  | 1,307,199 |  |  | 2025/3/18 |  |  | 4.30 | %
Total short-term bank loans |  | $ | 13,512,595 |  |  |  |  |  |  |
The loans outstanding were guaranteed by the following properties, entities or individuals:
a. | Guaranteed by Mr. Liu Fengming, the former CEO of the Company, Beijing Kanghuayuan Technology, one of the shareholders of the Company and pledged by the patent rights of the Company.
b. | Guaranteed by Mr. Liu Fengming, the former CEO of the Company, and his wife, Ms. Jie Liang. Upon the maturity of the loan, the bank offered the Company an extension, however, the Company failed to sign the extension agreement due to an administrative issue. As of the date of this report, the Company has not received any notice from the bank for repayment, and it expects to continue using this bank facility.
c. | Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family member of Ms. Wang Xiaohui, Chongqing Huajian, Chongqing Yufan and Chongqing Yiyao Electromechanical Co., Ltd. In addition, Chongqing Huajian and Chongqing Yufan also pledged their properties as collateral to guarantee the Company’s loans from United Overseas Bank. As of the date of this report, the Company borrowed additional loans of approximately US$4.2 million under this loan agreement.
d. | Guaranteed by the other subsidiary of the Company, Chongqing Wintus. In addition, the Company’s properties with net book values of US$605,195 were pledged as collateral to secure this loan as of June 30, 2024. The loan was fully repaid upon maturity.
e. | Guaranteed by Ms. Wang Xiaohui and her family member, as well as the other subsidiary of the Company, Chongqing Wintus. In addition, Chongqing Huajian and another third party pledged their properties to guarantee the Company’s loan from Bank of China.
f. | Guaranteed by Ms. Wang Xiaohui, one of the shareholders of the Company, her family members, and Chongqing Huajian. The loan is also guaranteed by other subsidiaries of the Company, Wulong Wintus Silk Co., Ltd (“Wulong Wintus”), Chongqing Hongsheng Silk Co., Ltd and Chongqing Liangping Wintus Textile Ltd (“Liangping Wintus”). In addition, Chongqing Huajian pledged its properties to guarantee the Company’s loan from Chongqing Rural Commercial Bank.
Long-term loans Long-term bank loans consisted of the following: SCHEDULE OF LONG TERM BANK LOANS
Lender |  | September 30, 2024 |  |  | Maturity Date |  | Int. Rate/Year |
Chongqing Rural Commercial Bank(a) |  | $ | 641,494 |  |  | 2026/9/2 |  |  | 3.35 | %
Bank of Chongqing(b) |  |  | 1,126,177 |  |  | 2026/7/3 |  |  | 4.00 | %
Total long-term bank loans |  | $ | 1,767,671 |  |  |  |  |  |  |
Long-term bank loans-current |  | $ | 14,255 |  |  |  |  |  |  |
Long-term bank loans-non-current |  | $ | 1,753,416 |  |  |  |  |  |  |
The loans outstanding were guaranteed by the following properties, entities or individuals:
a. | Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company. The loan is also guaranteed by other subsidiaries of the Company, Chongqing Wintus and Wulong Wintus. In addition, Liangping Wintus’s properties with net book values of US$557,560 were pledged as collateral to secure this loan.
b. | Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family members of Ms. Wang Xiaohui. In addition, the Company’s properties with net book values of US$1,483,124 were pledged as collateral to secure this loan.
Lender |  | June 30, 2024 |  |  | Maturity Date |  | Int. Rate/Year |
Chongqing Rural Commercial Bank(a) |  | $ | 619,199 |  |  | 2024/9/7 |  |  | 4.85 | %
Bank of Chongqing(b) |  |  | 1,093,919 |  |  | 2026/7/3 |  |  | 4.00 | %
Total long-term bank loans |  | $ | 1,713,118 |  |  |  |  |  |  |
Long-term bank loans-current |  | $ | 632,959 |  |  |  |  |  |  |
Long-term bank loans-non-current |  | $ | 1,080,159 |  |  |  |  |  |  |
The loans outstanding were guaranteed by the following properties, entities or individuals:
a. | Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family member of Ms. Wang Xiaohui. The loan is also guaranteed by other subsidiaries of the Company, Chongqing Wintus and Wulong Wintus. In addition, Liangping Wintus’s properties with net book values of US$545,597 were pledged as collateral to secure this loan as of June 30, 2024. The loan was fully repaid upon maturity.
b. | Guaranteed by Ms. Wang Xiaohui and Mr. Chi Keung Yan, two of the shareholders of the Company, and the family members of Ms. Wang Xiaohui. In addition, the Company’s properties with net book values of US$1,451,298 were pledged as collateral to secure this loan as of June 30, 2024.
The future maturities of long-term bank loans as of September 30, 2024 were as follows: SCHEDULE OF MATURITIES OF LONG -TERM BANK LOANS
Twelve months ending September 30, |  |  |
2025 |  | $ | 14,255 |
2026 |  |  | 1,753,416 |
Total long-term bank loans |  | $ | 1,767,671 |
The Company recorded interest expenses from continuing operations of US$150,580 and US$114,136 for the three months ended September 30, 2024 and 2023, respectively. The annual weighted average interest rates from continuing operations were 3.89% and 4.37% for the three months ended September 30, 2024 and 2023, respectively. Interest expenses from discontinued operations were both nil for the three months ended September 30, 2024 and 2023, respectively.

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