v3.26.1
Accrued Expenses and Other Payables
 12 Months Ended
Dec. 31, 2025
Accrued Expenses and Other Payables [Abstract]  
ACCRUED EXPENSES AND OTHER PAYABLES

NOTE 11 — ACCRUED EXPENSES AND OTHER PAYABLES

 

Accrued expenses and other payables consisted of the following:

 

   As of December 31, 
   2025   2024 
   US$   US$ 
Salary and welfare payable   247,113    285,195 
VAT and other taxes payables   112,917    114,114 
Interest payable   22,029    21,398 
Contract liabilities   162,120    219,933 
Other accrued expenses*   233,409    54,072 
Total   777,588    694,712 

 

*Other accrued expenses included the return liabilities and warranty liabilities in relation to the revenue generated.

 

Failed sale and leaseback

 

In 2021 and 2022, the Company engaged in three sale and leaseback transactions involving the 2-year leasing of four pieces of machinery. These agreements provided the Company with an option to buy the machinery at the lease’s conclusion for RMB100, a price significantly below market value. Upon reviewing the value of the assets at the end of the lease term and comparing it to the nominal purchase price, management determined that it was highly likely the Company would exercise this purchase option. As a result, these transactions do not meet the criteria for sale and leaseback transactions and are instead treated as financing arrangements by the Company.

  

For the years ended December 31, 2025, 2024 and 2023, the interest related to the failed sale and leaseback was nil, nil and $9,371, respectively. There were no financing liabilities as of December 31, 2025 and 2024, respectively. All financing liabilities were fully paid off as of December 31, 2024.