XML 30 R14.htm IDEA: XBRL DOCUMENT v3.23.1
Loans Payable
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Loans Payable

(7) Loans Payable

 

Short-term bank loans

 

   March 31,   December 31, 
   2023   2022 
Industrial and Commercial Bank of China (“ICBC”) Loan 1  $5,091,899   $5,023,978 
ICBC Loan 2   291,049    287,167 
ICBC Loan 3   145,524    143,583 
China Construction Bank Loan   145,524    143,583 
Total short-term bank loans  $5,673,996   $5,598,311 

 

On November 10, 2022, the Company entered into a working capital loan agreement with the ICBC, with a balance of $5,091,899 and $5,023,978 as of March 31, 2023 and December 31, 2022, respectively. 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 by November 13, 2023.

 

On November 30, 2022, the Company entered into a working capital loan agreement with the ICBC, with a balance of $291,049 and $287,167 as of March 31, 2023 and December 31, 2022, respectively. The loan bears an interest rate of 4.25% per annum. The loan will be due by May 29, 2023.

 

On November 30, 2022, the Company entered into a working capital loan agreement with the ICBC, with a balance of $145,524 and $143,583 as of March 31, 2023 and December 31, 2022, respectively. The loan bears an interest rate of 4.25% per annum. The loan will be due by May 29, 2023.

 

On July 29, 2022, the Company entered into a working capital loan agreement with the China Construction Bank, with a balance of $145,524 and $143,583 as of March 31, 2023 and December 31, 2022, respectively. The loan bears a fixed interest rate of 3.95% per annum. The loan will be due by July 29, 2023.

 

As of March 31, 2023, there were guaranteed short-term borrowings of $5,091,899 and unsecured bank loans of $582,097. As of December 31, 2022, there were guaranteed short-term borrowings of $5,023,978 and unsecured bank loans of $574,333.

 

The average short-term borrowing rates for the three months ended March 31, 2023 and 2022 were approximately 4.72% and 4.79%.

 

Long-term loans

 

As of March 31, 2023 and December 31, 2022, long-term loans were $11,778,745 and $9,040,002, respectively.

 

   March 31,   December 31, 
   2023   2022 
Rural Credit Union of Xushui District Loan 1  $1,251,510   $1,234,816 
Rural Credit Union of Xushui District Loan 2   3,638,111    3,589,582 
Rural Credit Union of Xushui District Loan 3   2,328,390    2,297,332 
Rural Credit Union of Xushui District Loan 4   1,891,817    1,866,582 
Rural Credit Union of Xushui District Loan 5   2,619,439    
-
 
Yujiangna   49,478    51,690 
Total   11,778,745    9,040,002 
Less: Current portion of long-term loans   (5,265,073)   (4,835,884)
Long-term loans  $6,513,672   $4,204,118 

 

As of March 31, 2023, the Company’s long-term debt repayments for the next coming years were as follows:

 

   Amount 
Fiscal year    
Remainder of 2023  $5,265,073 
2024   6,487,478 
2025 & after   26,194 
Total   11,778,745 

 

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 duein various installments from June 21, 2014 to November 18, 2018. The loan is guaranteed by an independent third party. Interest payment is duequarterly and bore a rate of 7.68% per annum. Effective from November 15, 2022, the interest rate is reduced to 7% per annum. 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, 2023 and December 31, 2022, total outstanding loan balance was $1,251,510 and$1,234,816, respectively, which are presented as current liabilities in the consolidated balance sheet.

 

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 $93,136 and $280,466 as of March 31, 2023 and December 31, 2022, respectively. Interest payment is due quarterly and bore arate of 7.68% per annum. Effective from November 15, 2022, the interest rate is reduced to 7% per annum. As of March 31, 2023 and December 31, 2022, the total outstanding loan balance was $3,638,111 and $3,589,582, respectively, which are presented as current liabilities in the consolidated balance sheet.

 

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 Tengsheng Paper with its land use right as collateral for the benefit of the credit union. Interest payment is due quarterly and bore a rate of 7.68% per annum. Effective from November 15, 2022, the interest rate is reduced to 7% per annum. As of March 31, 2023 and December 31, 2022, the total outstanding loan balance was $2,328,390 and $2,297,332, respectively, which are presented as non-current liabilities in the consolidated balance sheet as of March 31, 2023 and December 31, 2022, 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 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 Tengsheng Paper with its land use right as collateral for the benefit of the credit union. Interest payment is due monthly and bore a rate of 7.56% per annum. Effective from November 15, 2022, the interest rate is reduced to 7% per annum. As of March 31, 2023 and December 31, 2022, the total outstanding loan balance was $1,891,817 and $1,866,582, respectively, which are presented as non-current liabilities in the consolidated balance sheet as of March 31, 2023 and December 31, 2022, respectively.

 

On February 26, 2023, 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 August 21, 2023 to February 24, 2025. The loan is secured by Dongfang Paper with its land use right as collateral for the benefit of the credit union. Interest payment is due monthly and bore a rate of 7% per annum. As of March 31, 2023, the total outstanding loan balance was $2,619,439. Out of the total outstanding loan balance, current portion amounted was $363,811, which is presented as current liabilities in the consolidated balance sheet and the remaining balance of $2,255,628 is presented as non-current liabilities in the consolidated balance sheet as of March 31, 2023.

 

On July 1, 2022, the Company entered into a loan agreement with Jiangna Yu, a customer of the Company, pursuant to which the Company borrowed RMB 400,000 from Jiangna Yu for a term of five years. The loan is payable in monthly installment of RMB10,667 from July 2022 to July 2027. As of March 31, 2023 and December 31, 2022, the total outstanding loan balance was $49,478 and$51,690, respectively. Out of the total outstanding loan balance, current portion amounted were $11,642 and $11,486, which are presented as current liabilities and the remaining balance of $37,836 and $40,204 are presented as non-current liabilities in the consolidated balance sheet as of March 31, 2023 and December 31, 2022, respectively.

 

Total interest expenses for the short-term bank loans and long-term loans for the three months ended March 31, 2023 and 2022 were $244,679 and $257,306, respectively.