| BANK LOANS |
14.
BANK LOANS
Bank
loans represent the amounts due to various banks. As of December 31, 2024 and June 30, 2024, short-term and long-term bank loans consisted
of the following:
Summary
of short-term bank loans
| | | Annual
Interest | | | | | | As of
December 31, | | | As of
June 30, | | | | | Rate | | | Maturities | | | 2024 | | | 2024 | | | Short-term loans: | | | | | | | | | | | | | | ICBC (3) | | | 3.45 | % | | | August 30, 2024 | | | | - | | | | 688,023 | | | Xiamen International Bank (1) | | | 4.50 | % | | | October 8, 2024 | | | | - | | | | 784,346 | | | Industrial Bank Co., Ltd. (1) | | | 4.60 | % | | | December 26, 2024 | | | | - | | | | 1,100,837 | | | Xiamen Bank (1) | | | 3.50 | % | | | June 16, 2025 | | | | 520,598 | | | | 550,418 | | | Bank of China Ltd. (2) | | | 4.05 | % | | | May 16, 2025 | | | | 794,597 | | | | 853,148 | | | Xiamen International Bank (1) | | | 4.50 | % | | | February 28, 2025 | | | | 260,299 | | | | 275,210 | | | ICBC (3) | | | 3.35 | % | | | August 26, 2025 | | | | 684,997 | | | | - | | | Xiamen International Bank (1) | | | 4.50 | % | | | September 30, 2025 | | | | 739,797 | | | | | | | Bank of Communications(4) | | | 3.65 | % | | | September 9, 2025 | | | | 410,998 | | | | | | | Industrial Bank Co., Ltd. (1) | | | 3.50 | % | | | December 11, 2025 | | | | 1,095,996 | | | | - | | | Total | | | | | | | | | | $ | 4,507,282 | | | $ | 4,251,982 | | | Current portion of long-term loans: | | | | | | | | | | | | | | | | | | Bank of China Ltd. (5) | | | 4.35 | % | | | May 5, 2027 | | | $ | 32,880 | | | $ | 33,026 | | | Bank of China Ltd. (5) | | | 4.35 | % | | | December 3, 2026 | | | | 191,799 | | | | 192,646 | | | Bank of China Ltd. (5） | | | 4.35 | % | | | December 31, 2026 | | | | 189,059 | | | | 189,894 | | | | | | | | | | | | | $ | 413,738 | | | $ | 415,566 | |
Summary
of long-term bank loans
| | | Annual
Interest | | | | | | As of
December 31, | | | As of
June 30, | | | | | Rate | | | Maturities | | | 2024 | | | 2024 | | | Non-current portion of long-term loans: | | | | | | | | | | | | | | | | | | Bank of China Ltd. (5) | | | 4.35 | % | | | May 5, 2027 | | | $ | 115,080 | | | $ | 132,100 | | | Bank of China Ltd. (5) | | | 4.35 | % | | | December 31, 2026 | | | | 614,442 | | | | 712,104 | | | Bank of China Ltd. (5) | | | 4.35 | % | | | December 3, 2026 | | | | 575,398 | | | | 674,263 | | | Total | | | | | | | | | | $ | 1,304,920 | | | $ | 1,518,467 | |
The
weighted average interest rate on short-term bank loans outstanding as of December 31, 2024 and June 30, 2024 was 4.01% and 4.14%,
respectively. The effective interest rate for bank loans was approximately 4.23% and 4.74% for the six months ended December 31, 2023
and 2022, respectively.
| (1) | Loans from Xiamen Bank, Industrial Bank Co., Ltd., and Xiamen International Bank were personally guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company, and his spouse. |
| (2) | Loans from Bank of China were jointly guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company, and Pop Culture. The loan was also pledged by a property of Guangzhou Shuzhi. |
| (3) | The loan from ICBC was guaranteed by Pop Culture and Guangzhou Financing Re-guarantee Co., LTD. |
| (4) | The loan from Bank of Communications was granted a credit period from September 9, 2024 till September 9, 2027. |
| (5) | Loans from Bank of China were jointly guaranteed by Mr. Zhuoqin Huang, the chief executive officer of the Company, Guangzhou Shuzhi, and Pop Culture. |
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