| SHORT-TERM BORROWINGS |
NOTE 10 — SHORT-TERM BORROWINGS
Short-term borrowings consisted of the following as of June 30, 2025 and 2024:
|
|
|
2025
|
|
2024
|
|
Short-term borrowings from financial institutions
|
|
$
|
13,233,171 |
|
$
|
8,944,298 |
|
Short-term loans from third-party individuals
|
|
|
816,629 |
|
|
804,987 |
|
Total
|
|
$
|
14,049,800 |
|
$
|
9,749,285 |
Short-term borrowings from financial institutions consisted of the following as of June 30, 2025:
| Bank Name | | Amount – RMB | | Amount – USD | | Issuance
Date | | Expiration
Date | | Interest | | Pledged
by assets
listed
below | | Agricultural Bank of China | | 3,500,000 | | $ | 488,581 | | 7/24/2024 | | 7/23/2025 | | 3.45 | % | | No | | Agricultural Bank of China | | 3,500,000 | | | 488,581 | | 6/20/2025 | | 6/18/2026 | | 3.00 | % | | No | | Huishang Bank | | 5,000,000 | | | 697,973 | | 3/6/2025 | | 3/6/2026 | | 3.00 | % | | No | | China Construction Bank Wuhu Branch | | 5,000,000 | | | 697,973 | | 8/08/2024 | | 8/08/2025 | | 4.00 | % | | No | | Citic Bank Wuhu Branch | | 5,000,000 | | | 697,973 | | 3/17/2025 | | 3/17/2026 | | 3.25 | % | | No | | Wuhu Yangzi Rural Commercial Bank | | 5,000,000 | | | 697,973 | | 1/25/2025 | | 1/13/2026 | | 4.25 | % | | No | | Shanghai Pudong Development Bank Wuhu Branch | | 8,000,000 | | | 1,116,758 | | 9/04/2024 | | 9/04/2025 | | 3.60 | % | | No | | Wuhu Jinsheng Rural Commercial Bank | | 9,990,000 | | | 1,394,550 | | 7/05/2024 | | 7/04/2025 | | 4.00 | % | | Yes | | Ping An Bank Co.,Ltd. Wuhu Branch | | 5,000,000 | | | 697,973 | | 4/29/2025 | | 4/29/2026 | | 4.50 | % | | No | | Everbright Bank Wuhu Branch | | 5,000,000 | | | 697,973 | | 1/07/2025 | | 1/05/2026 | | 3.10 | % | | No | | Bank of Communications Wanzhi Branch | | 5,000,000 | | | 697,973 | | 12/09/2024 | | 12/08/2025 | | 3.85 | % | | Yes | | Bank Name | | Amount – RMB | | Amount – USD | | Issuance
Date | | Expiration
Date | | Interest | | Pledged
by assets
listed
below | | Bank of Communications Wanzhi Branch | | | 7,000,000 | | | 977,162 | | 1/03/2025 | | 1/02/2026 | | 3.85 | % | | Yes | | Bank of Communications Wanzhi Branch | | | 3,000,000 | | | 418,784 | | 1/09/2025 | | 1/05/2026 | | 3.85 | % | | Yes | | Huaxia Bank Wuhu Yijiang Branch | | | 5,000,000 | | | 697,973 | | 6/30/2025 | | 6/30/2026 | | 3.30 | % | | No | | Bank of China | | | 10,000,000 | | | 1,395,947 | | 7/26/2024 | | 7/25/2025 | | 3.35 | % | | Yes | | Industrial and Commercial Bank of China | | | 5,000,000 | | | 697,973 | | 1/23/2025 | | 1/22/2026 | | 3.20 | % | | No | | China Trust Commercial Bank | | | 2,807,143 | | | 391,862 | | 5/27/2025 | | 5/26/2026 | | 8 | % | | Yes | | China Trust Commercial Bank | | | 2,000,000 | | | 279,189 | | 5/29/2025 | | 5/28/2026 | | 8 | % | | Yes | | Total | | RMB | 94,797,143 | | $ | 13,233,171 | | | | | | | | | |
Short-term borrowings from financial institutions consisted of the following as of June 30, 2024:
| Bank Name | | Amount – RMB | | Amount – USD | | Issuance
Date | | Expiration
Date | | Interest | | Pledged
by assets
listed
below | | Agricultural Bank of China | | | 3,500,000 | | $ | 481,616 | | 6/27/2024 | | 6/25/2025 | | 3.45% | | No | | Huishang Bank | | | 4,000,000 | | | 550,419 | | 3/6/2024 | | 3/6/2025 | | 3.45% | | No | | Huishang Bank | | | 1,600,000 | | | 220,167 | | 5/11/2024 | | 5/11/2025 | | 3.45% | | No | | Citic Bank Wuhu Branch | | | 2,000,000 | | | 275,209 | | 7/25/2023 | | 7/24/2024 | | 4.50% | | No | | Wuhu Yangzi Rural Commercial Bank | | | 5,000,000 | | | 688,023 | | 2/5/2024 | | 2/4/2025 | | 4.50% | | No | | Jiangsu Jiangyin Rural Commercial Bank | | | 10,000,000 | | | 1,376,046 | | 7/26/2023 | | 7/25/2024 | | 4.50% | | Yes | | Wuhu Jinsheng Rural Commercial Bank | | | 10,000,000 | | | 1,376,046 | | 7/11/2023 | | 7/04/2024 | | 4.25% | | Yes | | Ping An Bank Co.,Ltd. Wuhu Branch | | | 2,500,000 | | | 344,011 | | 1/2/2024 | | 1/2/2025 | | 6.80% | | No | | Everbright Bank Wuhu Branch | | | 5,000,000 | | | 688,023 | | 1/24/2024 | | 1/23/2025 | | 3.45% | | No | | Bank of Communications Wanzhi Branch | | | 5,000,000 | | | 688,023 | | 12/8/2023 | | 12/7/2024 | | 3.85% | | Yes | | Bank of Communications Wanzhi Branch | | | 10,000,000 | | | 1,376,046 | | 1/9/2024 | | 1/8/2025 | | 2.90% | | Yes | | Huaxia Bank Wuhu Yijiang Branch | | | 4,000,000 | | | 550,418 | | 1/9/2024 | | 1/8/2025 | | 3.45% | | No | | China Trust Commercial Bank | | | 2,400,000 | | | 330,251 | | 12/19/2023 | | 12/18/2025 | | 6.80% | | Yes | | Total | | RMB | 65,000,000 | | $ | 8,944,298 | | | | | | | | |
For the fiscal years ended June 30, 2025, 2024 and 2023, interest expense on short-term borrowings from financial institutions amounted to $413,354, $381,505 and $364,771, respectively.
Short-term borrowings from four third-party individuals are unsecured and subject to annual interest rate of 3.5%. The interest expenses for the fiscal years ended June 30, 2025, 2024 and 2023 amounted to $29,444, $30,570, and 39,724 respectively.
The Company’s short-term bank borrowings are pledged by the assets listed below, and guaranteed by the Company’s major shareholder, his immediate family members, related-party companies and third-party companies.
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As of June 30,
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| |
|
2025
|
|
2024
|
|
Land use right, net
|
|
$
|
729,879 |
|
$
|
737,261 |
|
Property and equipment, net
|
|
|
3,421,585 |
|
|
3,711,153 |
|
Inventory
|
|
|
2,358,111 |
|
|
2,089,711 |
|
Total
|
|
$
|
6,509,575 |
|
$
|
6,538,125 |
|