| BORROWINGS |
10.
BORROWINGS
As
of September 30, 2024 and March 31, 2025, the bank borrowings were for working capital and capital expenditures. Borrowings consisted
of the following:
| Creditor | | Interest
rate | | | Borrowing
date | | Maturity
date | | As of
September 30,
2024 | | | As of
March 31,
2025 | | | | | | | | | | | | | | | (Unaudited) | | | Bank of Jiangsu (1) | | | 5.80 | % | | 1/25/2024 | | 1/25/2025 | | | 113,999 | | | | - | | | Bank of Jiangsu (2) | | | 3.30 | % | | 8/30/2024 | | 8/27/2025 | | | 997,492 | | | | 964,626 | | | Bank of Jiangsu (3) | | | 3.80 | % | | 12/19/2023 | | 12/15/2024 | | | 569,995 | | | | - | | | Bank of Jiangsu (3) | | | 3.30 | % | | 12/15/2024 | | 9/3/2025 | | | - | | | | 551,215 | | | Bank of Nanjing (4) | | | 3.50 | % | | 9/11/2024 | | 9/9/2025 | | | 712,494 | | | | 689,018 | | | Agricultural Bank of China (5) | | | 3.20 | % | | 6/26/2024 | | 6/16/2025 | | | 1,424,989 | | | | 1,378,037 | | | Agricultural Bank of China (6) | | | 3.05 | % | | 12/29/2023 | | 12/21/2024 | | | 1,367,989 | | | | - | | | Total short-term borrowings | | | | | | | | | | $ | 5,186,958 | | | $ | 3,582,896 | | | Bank of Jiangnan (7) | | | 4.80 | % | | 6/25/2022 | | 6/30/2025 | | | 634,120 | | | | 1,413,866 | | | Total long-term borrowings, current | | | | | | | | | | $ | 634,120 | | | $ | 1,413,866 | | | Bank of Jiangnan (7) | | | 4.80 | % | | 6/25/2022 | | 6/21/2030 | | | 3,925,844 | | | | 2,995,853 | | | Bank of Jiangnan (7) | | | 4.80 | % | | 11/15/2023 | | 6/21/2030 | | | 1,823,985 | | | | 1,763,887 | | | Bank of Jiangnan (7) | | | 4.80 | % | | 7/18/2024 | | 6/21/2030 | | | 984,667 | | | | 952,223 | | | Bank of Jiangnan (7) | | | 4.80 | % | | 2/6/2024 | | 6/21/2030 | | | 726,744 | | | | 702,799 | | | Total long-term borrowings, non-current | | | | | | | | | | $ | 7,461,240 | | | $ | 6,414,762 | | | Total borrowings | | | | | | | | | | $ | 13,282,318 | | | $ | 11,411,524 | |
| (1) | On
December 14, 2022, Changzhou EZGO obtained a revolving line of credit of RMB800,000 ($109,649) from Bank of Jiangsu with three years
term from December 14, 2022 to December 14, 2025. On January 25, 2024, Changzhou EZGO withdrew RMB800,000 ($113,999) from this line of
credit, with an effective annual interest rate of 5.80% and a term of 12 months, which was fully repaid as matured. |
| (2) | On
August 30, 2024, Changzhou EZGO obtained a non-revolving loan of RMB7,000,000 ($997,492) from Bank of Jiangsu, with an effective annual
interest rate of 3.30% and a term of 12 months, which was guaranteed by Jiangsu Jiangnan Technology Financing Guarantee Co., Ltd. |
| (3) | On
December 19, 2023, Changzhou Higgs obtained a non-revolving loan of RMB4,000,000 ($569,995) from Bank of Jiangsu, with an effective annual
interest rate of 3.80% and a term of 12 months, which was guaranteed by Feng Xiao, the legal representative of Changzhou Higgs. On December
9, 2024, this loan was granted a term extension, with the annual interest rate maintained at 3.30% and the maturity date set to September
3, 2025. |
| (4) | On
September 11, 2024, Changzhou EZGO entered a non-revolving loan facility of RMB5,000,000 ($712,494) with Bank of Nanjing, with an effective
annual interest rate of 3.50% and a term of 12 months, which was guaranteed by Jianhui Ye, the Chief Executive Officer of the Company,
Jiangsu New Energy and Jiangsu Jiangnan Technology Financing Guarantee Co., Ltd. |
| (5) | On
June 26, 2024, Changzhou EZGO obtained a non-revolving loan of RMB10,000,000 ($1,424,989) from Agricultural Bank of China, with an effective
annual interest rate of 3.20% and a term of 12 months, which was guaranteed by Jianhui Ye. The loan was fully repaid in advance on April
23, 2025. |
| (6) | On
December 29, 2023, Jiangsu Supply Chain obtained a non-revolving loan of RMB9,600,000 ($1,367,989) from Agricultural Bank of China, with
an effective annual interest rate of 3.05% and a term of 12 months. The loan was secured by the $1,500,000 certificate of deposit held
by EZGO HK, which was fully repaid by the Company upon maturity. |
| (7) | On June 25, 2023, Jiangsu New Energy obtained a 7-year loan facility
of up to RMB56,810,000 ($8,095,360) from Bank of Jiangnan with an effective annual interest rate of 4.80%, specified for expenditures
on the construction of Changzhou manufacturing plant built for the production of two-wheeler e-bicycles, intelligent unmanned patrol vehicles
and graphene batteries, which will mature on June 21, 2030. As of September 30, 2024 and March 31, 2025, Jiangsu New Energy withdrew a
total of RMB56,810,000 ($8,095,360) from this loan facility, respectively. The loan facility was guaranteed by Shuang Wu, the Legal Representative
of Jiangsu New Energy, and also pledged by the land use right of Jiangsu New Energy. The following is the principal repayment schedule
for the long-term loan from Bank of Jiangnan as of March 31, 2025: |
| Repayment date | |
Repayment
amount | |
| 6/30/2025 | |
$ | 613,227 | |
| 12/31/2025 | |
| 800,639 | |
| 6/30/2026 | |
| 800,639 | |
| 12/31/2026 | |
| 802,017 | |
| 6/30/2027 | |
| 802,017 | |
| 12/31/2027 | |
| 802,017 | |
| 6/30/2028 | |
| 802,017 | |
| 12/31/2028 | |
| 802,017 | |
| 6/30/2029 | |
| 802,017 | |
| 12/31/2029 | |
| 802,021 | |
For
the six months ended March 31, 2024 and 2025, the Company recorded interest expenses of $30,121 and $73,001, respectively. For the six
months ended March 31, 2024 and 2025, $142,079 and $179,787 of interest expense from the long-term borrowings from Bank of Jiangnan was
capitalized in the construction of Changzhou manufacturing plant respectively. of interest expense from the long-term borrowings from
Bank of Jiangnan was capitalized in the construction of Changzhou manufacturing plant respectively.
|