11. BORROWINGS FROM A FINANCIAL INSTITUTION

 

      Interest   March 31,   March 31, 
Bank name  Maturity date  rate   2024   2023 
WeBank*  09/11/2025   12.24%  $213,684   $
 
SDIC Taikang Trust Co. Ltd  Fully Repaid on
August 31, 2023
   13.04%   
    8,813 
Total          $213,684   $8,813 
Borrowing from a financial institution, current          $142,456   $8,813 
Borrowing from a financial institution, non-current          $71,228   $
 

 

*On September 11, 2023, the Company entered into a loan agreement (the “Loan Agreement”) with WeBank for a total amount of $249,297. Pursuant to the Loan Agreement, the borrowing bears an interest rate of 12.24% per annum with monthly repayments consist of principal and interest for two years. As of March 31, 2024, the current portion of the loan principal balance to be repaid within the next twelve months was amounted to $142,456, while the noncurrent portion of the loan principal to be repaid after March 31, 2025, was amounted to $71,228.

 

The total interest expense for the years ended March 31, 2024 and 2023 was $17,630 and $0, respectively. 

Historical Timeline

Fiscal YearFiled
2024Jun 27, 2024Showing above
2023Jul 13, 2023
2022Jul 15, 2022
2021Jul 8, 2021

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.