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Financing Receivables, net
 12 Months Ended
Dec. 31, 2024
Financing Receivables, net  
Financing Receivables, net

Note 6 – Financing Receivables, net

 

Starting in June 2022, the Group provided factoring financing service. The financing receivables secured by pledged accounts receivable with stated-owned entities and reputable companies, which have a carrying value of $43,612,371 as of December 31, 2024 and are in excess of the financing provided. The term of the financing receivables is generally within 12 months with annual interest of 6.5%, and renewed upon maturity with annual interest of 4.8%. The interest and principal of financing are due upon maturity. The principal and interest receivable of the financing amounted to $40,072,336 and $5,301,903 as of December 31, 2024 and 2023, respectively. For the years ended December 31, 2024, 2023 and 2022, the Group recognized net financing interest income of $1,840,722, $2,180,970 and $1,400,227, respectively.

 

Financing receivables consisted of the following: 

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Financing receivables

 

$45,374,239

 

 

$44,783,011

 

Allowance for credit losses

 

 

(2,268,712)

 

 

(2,239,151)

Financing receivables, net

 

$43,105,527

 

 

$42,543,860

 

 

The movement of allowance for credit losses are as follows: 

 

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Balance at beginning of year

 

$2,239,151

 

 

$-

 

Change of allowance for credit losses

 

 

92,036

 

 

 

2,245,159

 

Translation adjustments

 

 

(62,475)

 

 

(6,008)

Balance at end of year

 

$2,268,712

 

 

$2,239,151