| LOANS RECEIVABLE |
NOTE 7 – LOANS RECEIVABLE
At June 30, 2025 and December 31, 2024, loans receivable consisted
of the following.
| | |
June 30,
2025 | | |
December 31,
2024 | |
| | |
(Unaudited) | | |
| |
| Guangxi Beihengda Mining Co., Ltd. (1) | |
$ | 5,165,001 | | |
$ | 5,068,979 | |
| Beijing Liansheng Innovation Technology Co., Ltd (2) | |
| 279,189 | | |
| 273,999 | |
| Guangzhou Ruilide Information System Co., Ltd (3) | |
| 279,189 | | |
| - | |
| Total loans receivable | |
| 5,723,379 | | |
| 5,342,978 | |
| Less: current portion | |
| 558,378 | | |
| 958,996 | |
| Loan receivable - non current | |
$ | 5,165,001 | | |
$ | 4,383,982 | |
| (1) | On January 21, 2022, March 28, 2022 and June 14, 2022, the Company
made three loans of RMB30,000,000 ($4,187,839), RMB3,000,000 ($418,784) and RMB7,000,000 ($977,162) to a third party, which were restricted
for its operating activities, carrying interest at 12%. The RMB30,000,000 loan was extended for three years to January 21, 2028. The RMB7,000,000
loan was extended for three years to June 14, 2028. The RMB3,000,000 loan was repaid in August 2022 with interest of RMB120,000 ($16,751).
The change in the carrying value of these outstanding loans from $5,068,979 in 2024 to $5,165,001 in 2025 was due mainly to currency translation.
Pursuant to a mining right pledge agreement dated August 5, 2022 between HiTek, as representative of the Lenders, and the Borrower, these
three loans are secured by the Borrower’s coal mining permit issued by Bobai County Natural Resources Bureau, which grants the Borrower
a 20-year mining right for a building granite mine in Daguang Village, Shuiming Town, Bobai County, Guangxi Province, for production of
1.306 million cubic meters per year. |
| (2) | On
January 17, 2024, the Company provided a loan of RMB2,000,000 ($279,189) with 1.0% per month interest to Beijing Liansheng Innovation
Technology Co., Ltd for six months, maturing on July 16, 2024. The loan was restricted for its operating activities and was extended
for one year to January 16, 2026. |
| (3) | On
April 29, 2025, the Company provided a loan of RMB3,000,000 ($418,784) with 1.0% per month interest to Guangzhou Ruilide Information
System Co., Ltd for two months, maturing on June 28, 2025. The loan was restricted for its operating activities. The RMB1,000,000 ($139,595)
loan was repaid as of June 30, 2025, a repayment of RMB500,000 ($69,797) on July 1, 2025. The remaining RMB1,500,000 ($209,392) loan
was extended for four months to October 29, 2025. |
Interest income for the six months ended June 30, 2025 and 2024 was
$313,590 and $554,700, respectively.
|