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Loans Payable

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

(8) Loans Payable

Short-term bank loans

On December 11, 2020, the Company entered into a working capital loan agreement with the ICBC, with a balance of $ $6,389,908 and $6,435,348 as of March 31, 2021 and December 31, 2020, respectively. The working capital loan was secured by the Land use right of Dongfang Paper as collateral for the benefit of the bank. The loan bears a fixed interest rate of 4.785% per annum. The loan will be due and repaid at various installments by December 7, 2021.

As of March 31, 2021, there were guaranteed short-term borrowings of $6,389,908 and unsecured bank loans of $nil. As of December 31, 2020, there were guaranteed short-term borrowings of $6,435,348 and unsecured bank loans of $nil.

The average short-term borrowing rates for the three months ended March 31, 2021 and 2020 were approximately 4.79%.

Long-term loans from credit union

As of March 31, 2021 and December 31, 2020, loans payable to Rural Credit Union of Xushui District, amounted to $9,526,274 and $9,594,017, respectively.

		March 31,				December 31,
		2021				2020
Rural Credit Union of Xushui District Loan 1		$	1,308,721			$	1,318,028
Rural Credit Union of Xushui District Loan 2			3,804,423				3,831,476
Rural Credit Union of Xushui District Loan 3			2,434,830				2,452,145
Rural Credit Union of Xushui District Loan 4			1,978,300				1,992,368
Total			9,526,274				9,594,017
Less: Current portion of long-term loans from credit union			(4,960,967	)			(4,996,245	)
Long-term loans from credit union		$	4,565,307			$	4,597,772

As of Mar 31, 2021, the Company’s long-term debt repayments for the next coming years were as follows:

						Amount
Fiscal year
Remainder of 2021						$	4,960,967
2022							1,673,946
2023							2,891,361
Total							9,526,274

On April 16, 2014, the Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 5 years, which was originally due in various installments from June 21, 2014 to November 18, 2018. The loan is guaranteed by an independent third party. Interest payment is due quarterly and bears the rate of 0.64% per month. On November 6, 2018, the loan was renewed for additional 5 years and will be due and payable in various installments from December 21, 2018 to November 5, 2023. As of March 31, 2021 and December 31, 2020, total outstanding loan balance was $1,308,721 and $1,318,028, respectively, Out of the total outstanding loan balance, current portion amounted were $213,048 and $214,563 as of March 31, 2021 and December 31, 2020, respectively, which are presented as current liabilities in the consolidated balance sheet and the remaining balance of $1,095,673 and $11,103,465 are presented as non-current liabilities in the consolidated balance sheet as of March 31, 2021 and December 31, 2020, respectively.

On July 15, 2013, the Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 5 years, which was originally due and payable in various installments from December 21, 2013 to July 26, 2018. On June 21, 2018, the loan was extended for additional 5 years and will be due and payable in various installments from December 21, 2018 to June 20, 2023. The loan is secured by certain of the Company’s manufacturing equipment with net book value of $1,882,319 and $2,349,796 as of March 31, 2021 and December 31, 2020, respectively. Interest payment is due quarterly and bears a fixed rate of 0.64% per month. As of March 31, 2021 and December 31, 2020, the total outstanding loan balance was $3,804,423 and $3,831,476, respectively. Out of the total outstanding loan balance, current portion amounted were $334,789 and $337,169 as of March 31, 2021 and December 31, 2020 respectively, which are presented as current liabilities in the consolidated balance sheet and the remaining balance of $3,469,633 and $3,494,307 are presented as non-current liabilities in the consolidated balance sheet as of March 31, 2021 and December 31, 2020, respectively.

On April 17, 2019, the Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 2 years, which was due and payable in various installments from August 21, 2019 to April 16, 2021. The loan is secured by Hebei Tengsheng with its land use right as collateral for the benefit of the credit union. Interest payment is due quarterly and bears a fixed rate of 0.6% per month. As of March 31, 2021 and December 31, 2020, the total outstanding loan balance was $2,434,830 and $2,452,145, respectively. Out of the total outstanding loan balance, current portion amounted were $2,434,830 and $2,452,145 as of March 31, 2021 and December 31, 2020, respectively, which are presented as current liabilities in the consolidated balance sheet as of March 31, 2021 and December 31, 2020, respectively.

On December 12, 2019, the Company entered into a loan agreement with the Rural Credit Union of Xushui District for a term of 2 years, which is due and payable in various installments from June 21, 2020 to December 11, 2021. The loan is secured by Hebei Tengsheng with its land use right as collateral for the benefit of the credit union. Interest payment is due monthly and bears a fixed rate of 7.56% per annum. As of March 31, 2021 and December 31, 2020, the total outstanding loan balance was $1,978,300 and $1,992,368, respectively. Out of the total outstanding loan balance, current portion amounted were $1,978,300 and $1,992,368 as of March 31, 2021 and December 31, 2020, respectively, which are presented as current liabilities in the consolidated balance sheet as of March 31, 2021 and December 31, 2020, respectively.

Total interest expenses for the short-term bank loans and long-term loans for the three months ended March 31, 2021 and 2020 were $258,483 and $244,718, respectively.