On September 27, 2022, Microvast Power Systems Co., Ltd. (“MPS”), one of the Company’s subsidiaries, entered into a $111.5 million (RMB800 million) loan facilities agreement with a group of lenders led by a bank in China (the “2022 Facility Agreement”). The interest rate is prime plus 115 basis points where prime is based on the Loan Prime Rate published by the National Inter-bank Funding Center of China and is payable on a quarterly basis. The loan facilities can only be used for the manufacturing capacity expansion at the Company’s facility located in Huzhou, China. The 2022 Facility Agreement contains certain customary restrictive covenants, including but not limited to disposal of assets and dividend distribution without the consent of the lender, and certain customary events of default.


Repayment Date						Repayment Amount
April 14, 2026						$6.8 million (RMB46.9 million)
April 15, 2026						$8.2 million (RMB56.3 million)
April 20, 2026						$6.8 million (RMB46.7 million)
December 10, 2026						$21.7 million (RMB149.9 million)

Capitalized interest, which was recorded in construction in progress, was $162 thousand and $278 thousand for the three months ended March 31, 2026 and 2025, respectively.

In June 2025, MPS entered into a long-term loan agreement with a Chinese bank for a facility of RMB100 million to be used for working capital. The maturity period for this loan is two years with an interest rate of 2.70%. The interest expense under this long-term loan agreement for the three months ended March 31, 2026 and 2025 was $97 thousand and nil, respectively. As of March 31, 2026, MPS had outstanding borrowings of $14.1 million under this agreement with the following repayment schedule:


Repayment Date						Repayment Amount
June 19, 2026						$362 thousand (RMB2.5 million)
December 19, 2026						$362 thousand (RMB2.5 million)
June 19, 2027						$13.4 million (RMB92.5 million)

In March 2026, MPS entered into a long-term loan agreement and bank facility with a Chinese bank for RMB100 million to be used for working capital purposes and to refinance a portion of the loans with higher interest rates. The maturity period for this loan is two years with an interest rate of 2.80%. As of March 31, 2026, MPS had outstanding borrowings of $14.5 million under this agreement with the following repayment schedule:


Repayment Date						Repayment Amount
September 18, 2026						$145 thousand (RMB1.0 million)
March 18, 2027						$145 thousand (RMB1.0 million)
September 18, 2027						$145 thousand (RMB1.0 million)
March 18, 2028						$14.1 million (RMB97.0 million)

The Company's PRC subsidiaries have also entered into short-term loan agreements and bank facilities with certain banks in China. The original terms of these loans are with a maximum maturity of 12 months and the interest rates range from 2.40% to 4.85% per annum. The amount of interest expense was $428 thousand and $390 thousand for the three months ended March 31, 2026 and 2025, respectively.


	Three Months Ended March 31,
	2026		2025
Beginning balance	$	106,279	$	111,728
Proceeds from bank borrowings	51,721		28,187
Repayments of principal	(20,804)		(13,062)
Exchange difference	1,573		690
Ending balance	$	138,769	$	127,543

Certain assets of the Company have been pledged to secure the above bank facilities granted to the Company. The aggregate carrying amount of the assets pledged by MPS as of March 31, 2026 and December 31, 2025 is as follows (in thousands):