13. Bank Loans

 

The outstanding balances on short-term and long-term bank loans consisted of the following:

 

      Interest   As of December 31, 
Lender  Maturities  rate   2025   2024 
Jingshan City branch of Postal Saving Bank of China  Due in January 2025   3.85%  $
-
   $1,367,283 
Jingshan City branch of Postal Saving Bank of China  Due in January 2026   3.63%   914,759    
-
 
Jingshan City branch of Agricultural Bank of China  Due in March 2026   3.3%   1,136,835    
-
 
Hubei Jingshan Rural Commercial Bank Co. Ltd.  Due in March 2026   3.2%   700,690    
-
 
Jingmen Branch of Bank of China  Due in June 2026   3.0%   1,143,985    
-
 
Hubei Jingshan Rural Commercial Bank Co. Ltd.  Due in June 2026   4.0%   428,994    410,998 
Hubei Bank Jingshan Branch.  Due in December 2026   3.0%   1,000,987    
-
 
Hubei Jingshan Rural Commercial Bank Co. Ltd.  Due in August 2026   4.58%   285,996    273,999 
Chajiaduo supply chain Hubei co., Ltd  Due in February 2026   
-
    71,499    
-
 
Mr. Wei Jin  Due in December 2025   12%   71,499    
-
 
Bank overdraft           785    221 
Total          $5,756,029   $2,052,501 

 

The loan from the Jingshan City branch of Postal Savings Bank of China was obtained to support general working capital, with a comprehensive guarantee provided by Mr. Bin Zhou, the Company’s CEO, and Hubei Bryce Technology Co., Ltd., which is under the company’s control.

 

The loan from the Jingshan City branch of Agricultural Bank of China was obtained to support general working capital, with a comprehensive guarantee provided by an unrelated third party, Jingshan Chengxin Financing Guarantee Co., Ltd.

 

The loan from the Hubei Jingshan Rural Commercial Bank Co. Ltd. was obtained to support general working capital, with certain buildings and land use rights of Hubei Ruishengchang Industrial Co., Ltd. in the amount of RMB3.6 million (equivalent to $505,689) pledged as collateral, as well as comprehensive guarantee provided by Mr. Bin Zhou, Mr. Bin Zhang, senior management of the Company, Mr. Ge Wei, a third-party individual, Hubei Bryce Technology Co., Ltd. and Hubei Ruishengchang Industrial Co., Ltd., which is under control of Mr. Ge Wei.

 

The loan from Jingmen Branch of Bank of China was obtained to support general working capital, with no guarantee requirement for this loan.

 

The loan from Hubei Bank Jingshan Branch was obtained to support general working capital, with a comprehensive guarantee provided by Mr. Bin Zhang, his wife Ms. Shunhui Gao, and Hubei Bryce Technology Co., Ltd., which is under the company’s control.

 

The loan from Chajiaduo Supply Chain Hubei Co., Ltd. was obtained to support general working capital, with no guarantee requirement.

 

The loan from Mr. Wei Jin was obtained to support general working capital, with no guarantee requirement. This loan was subsequently fully repaid in March 2026.

 

Interest expense for the years ended December 31, 2025 and 2024 was $155,538 and $70,542, respectively.

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2016Oct 31, 2017
2015Apr 14, 2016

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.