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Loans Payable
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Loans Payable

(8) Loans Payable

 

Short-term bank loans

 

   December 31,   December 31, 
   2021   2020 
Industrial and Commercial Bank of China (“ICBC”) Loan 1  $
-
   $6,435,348 
Industrial and Commercial Bank of China (“ICBC”) Loan 2   5,958,561    
-
 
           
Total short-term bank loans  $5,958,561   $6,435,348 

 

On December 11, 2020, the Company entered into a working capital loan agreement with the ICBC, with a balance of $6,435,348 as of December 31, 2020. 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 was fully repaid in November 2021.

 

On November 25, 2021, the Company entered into a working capital loan agreement with the ICBC, with a balance of $5,958,561 as of December 31, 2021. The working capital loan was secured by the Land use right of Dongfang Paper as collateral for the benefit of the bank and guaranteed by Mr. liu. The loan bears a fixed interest rate of 4.785% per annum. The loan will be due and repaid at various installments by November 17, 2022.

 

As of December 31, 2020, there were guaranteed short-term borrowings of $5,958,561 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 years ended December 31, 2021, and 2020 were approximately 4.73% and 4.79%, respectively.

 

Long-term loans from credit union

 

As of December 31, 2020, and 2019, loans payable to Rural Credit Union of Xushui County, amounted to $9,818,530 and $9,594,017, respectively.

 

   December 31,   December 31, 
   2021   2020 
Rural Credit Union of Xushui District Loan 1  $1,348,871   $1,318,028 
Rural Credit Union of Xushui District Loan 2   3,921,139    3,831,476 
Rural Credit Union of Xushui District Loan 3   2,509,528    2,452,145 
Rural Credit Union of Xushui District Loan 4   2,038,992    1,992,368 
Total   9,818,530    9,594,017 
Less: Current portion of long-term loans from credit union   (6,838,465)   (4,996,245)
Long-term loans from credit union  $2,980,065   $4,597,772 

 

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

 

   Amount 
Fiscal year    
2022  $6,838,465 
2023 and after   2,980,065 
Total   9,818,530 

 

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 December 31, 2021, and 2020, total outstanding loan balance was $1,348,871 and $1,318,028, respectively, Out of the total outstanding loan balance, current portion amounted were $329,376 and $214,563 as of December 31, 2021, and 2020, respectively, which are presented as current liabilities in the consolidated balance sheet and the remaining balance of $1,019,495 and $1,103,465 are presented as non-current liabilities in the consolidated balance sheet as of December 31, 2021, and 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 $1,130,333 and $2,349,796 as of December 31, 2021, and 2020, respectively. Interest payment is due quarterly and bears a fixed rate of 0.64% per month. As of December 31, 2021, and 2020, the total outstanding loan balance was $3,921,139 and $3,831,476, respectively. Out of the total outstanding loan balance, current portion amounted were $1,960,569 and $337,169 as of December 31, 2021, and 2020 respectively, which are presented as current liabilities in the consolidated balance sheet and the remaining balance of $1,960,570 and $3,494,307 are presented as non-current liabilities in the consolidated balance sheet as of December 31, 2021, and 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 was renewed on March 22, 2021 and December 24, 2021 and extended for additional 3 years in total, which will be due on April 16, 2024 according to the new schedule. 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 December 31, 2021, and 2020, the total outstanding loan balance was $2,509,528 and $2,452,145, respectively, which are presented as current liabilities in the consolidated balance sheet as of December 31, 2021, and 2020.

 

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 was renewed on March 22, 2021 and December 24, 2021 and extended for additional 3 years in total, which will be due on December 11, 2024 according to the new schedule. 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 December 31, 2021, and 2020, the total outstanding loan balance was $2,038,992 and $1,992,368, respectively, which are presented as current liabilities in the consolidated balance sheet as of December 31, 2021, and 2020.

 

Total interest expenses for the short-term bank loans and long-term loans for the years ended December 31, 2021, and 2020 were $1,052,904 and $998,429, respectively.