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Loans Payable
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Loans Payable

(8) Loans Payable

 

Short-term bank loans

 

   September 30,   December 31, 
   2021   2020 
Industrial and Commercial Bank of China (“ICBC”)  $6,320,350   $6,435,348 
           
Total short-term bank loans  $6,320,350   $6,435,348 

 

On December 11, 2020, the Company entered into a working capital loan agreement with the ICBC, with a balance of $6,320,350 and $6,435,348 as of September 30, 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 September 30, 2021, there were guaranteed short-term borrowings of $6,320,350 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 and nine months ended September 30, 2021 and 2020 were approximately 4.79%.

 

Long-term loans from credit union

 

As of September 30, 2021 and December 31, 2020, loans payable to Rural Credit Union of Xushui District, amounted to $9,652,450 and $9,594,017, respectively.

 

   September 30,   December 31, 
   2021   2020 
Rural Credit Union of Xushui District Loan 1  $1,326,055   $1,318,028 
Rural Credit Union of Xushui District Loan 2   3,854,813    3,831,476 
Rural Credit Union of Xushui District Loan 3   2,467,080    2,452,145 
Rural Credit Union of Xushui District Loan 4   2,004,502    1,992,368 
Total   9,652,450    9,594,017 
Less: Current portion of long-term loans from credit union   (5,134,610)   (4,996,245)
Long-term loans from credit union  $4,517,840   $4,597,772 

 

As of September 30, 2021, the Company’s long-term debt repayments for the next coming years were as follows:

 

Fiscal year  Amount 
Remainder of 2021  $5,134,610 
2022   3,901,070 
2023   616,770 
Total   9,652,450 

 

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 September 30, 2021 and December 31, 2020, total outstanding loan balance was $1,326,055 and $1,318,028, respectively. Out of the total outstanding loan balance, current portion amounted were $246,708 and $214,563 as of September 30, 2021 and December 31, 2020, respectively, which are presented as current liabilities in the consolidated balance sheet and the remaining balance of $1,079,347 and $11,103,465 are presented as non-current liabilities in the consolidated balance sheet as of September 30, 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 $1,313,720 and $2,349,796 as of September 30, 2021 and December 31, 2020, respectively. Interest payment is due quarterly and bears a fixed rate of 0.64% per month. As of September 30, 2021 and December 31, 2020, the total outstanding loan balance was $3,854,813 and $3,831,476, respectively. Out of the total outstanding loan balance, current portion amounted were $416,320 and $337,169 as of September 30, 2021 and December 31, 2020 respectively, which are presented as current liabilities in the consolidated balance sheet and the remaining balance of $3,438,493 and $3,494,307 are presented as non-current liabilities in the consolidated balance sheet as of September 30, 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. On March 22, 2021, the loan was renewed for additional one year and the repayments will be due on April 16, 2022. As of September 30, 2021 and December 31, 2020, the total outstanding loan balance was $2,467,080 and $2,452,145, respectively. Out of the total outstanding loan balance, current portion amounted were $2,467,080 and $2,452,145 as of September 30, 2021 and December 31, 2020, respectively, which are presented as current liabilities in the consolidated balance sheet as of September 30, 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. On March 22, 2021, the loan was extended and the repayments will be due on August 18, 2022. As of September 30, 2021 and December 31, 2020, the total outstanding loan balance was $2,004,502 and $1,992,368, respectively. Out of the total outstanding loan balance, current portion amounted were $2,004,502 and $1,992,368 as of September 30, 2021 and December 31, 2020, respectively, which are presented as current liabilities in the consolidated balance sheet as of September 30, 2021 and December 31, 2020, respectively.

 

Total interest expenses for the short-term bank loans and long-term loans for the three months ended September 30, 2021 and 2020 were $264,644 and $251,266, respectively. Total interest expenses for the short-term bank loans and long-term loans for the nine months ended September 30, 2021 and 2020 were $788,094 and $737,420, respectively.