Bank loans:

Bank borrowings as of December 31, 2025 and March 31, 2026 consisted of the followings:

In January 2023, Hitrans renewed the banking facilities with Shaoxing Branch of Bank of Communications Co., Ltd with a maximum amount of RMB160.0 million (approximately $22.1 million) with the term from January 2023 to December 2027. On January 22, 2025, Hitrans and Bank of Communications entered into a new banking facility for another five years from January 22, 2025 to January 22, 2030 for a maximum guarantee of loan amount to RMB155.8 million (approximately $21.5 million). The facility was secured by Hitrans’s land use rights and buildings. On October 24, 2025, Hitrans and Bank of Communications renewed the facility to a maximum guarantee of loan amount to RMB162.0 million (approximately $23.1 million). Under the facility, Hitrans borrowed RMB155.2 million (approximately $22.4 million) as of March 31, 2026, bearing interest at 2.45% to 3.0% per annum expiring through April 2026 to March 2027.

On April 9, 2024, Hitrans and China Zheshang Bank Co., Ltd Shangyu Branch entered into a short-term loan agreement for one year from April 9, 2024 to April 7, 2025 for a maximum loan amount to RMB5.5 million (approximately $0.8 million) bearing interest rate at 4.05% per annum. Hitrans borrowed RMB5.5 million (approximately $0.8 million) on the same date. Hitrans early repaid the loan on January 24, 2025.

On September 29, 2024, Hitrans and Zhejiang Shangyu Rural Commercial Bank entered into a short-term credit-guaranteed loan agreement for RMB15 million (approximately $2.0 million) with the term of one year from September 29, 2024 to September 26, 2025 bearing 4.00% interest rate. Hitrans borrowed RMB15 million (approximately $2.1 million) on the same date. Hitrans repaid the loan on September 26, 2025.

On December 31, 2024, Hitrans and China Everbright Bank Co., Ltd Shaoxing Branch entered into a short-term loan agreement for RMB10 million (approximately $1.4 million) with the term of one year from December 31, 2024 to December 30, 2025 bearing 2.9% interest rate. Hitrans borrowed RMB10 million (approximately $1.4 million) on the same date. Hitrans repaid the loan on December 30, 2025.

On January 17, 2025, Hitrans entered into a long-term Maximum Pledge Agreement with Zhejiang Shangyu Rural Commercial Bank, for the period from January 17, 2025 to September 25, 2027, with a maximum facility amount of RMB76.56 million (approximately $10.54 million). The facility was secured by the land use right and buildings of Hitrans. Hitrans has borrowed RMB52.9 million (approximately $7.7 million) as of March 31, 2026, bearing interest rate at 2.41% - 2.96% per annum expiring through June 2027 to September 2027.

On January 20, 2025, Nanjing CBAK entered into an unsecured revolving loan agreement with Bank of Ningbo Co., Ltd. Gaochun Branch with a maximum amount of RMB10 million (approximately $1.4 million) bearing interest at 2.8% per annum (LPR interest rate -30 bp), with a one-year loan period ending on January 20, 2026. Nanjing CBAK borrowed RMB10 million (approximately $1.4 million) under this loan agreement on January 20, 2025. Nanjing CBAK early repaid the loan on September 20, 2025.

On February 19, 2025, Nanjing CBAK obtained a RMB30 million facility (approximately $4.2 million) from Jiangsu Gaochun Rural Commercial Bank, with the term from February 19, 2025 to September 23, 2027. The facility was guaranteed by 100% equity in CBAK Nanjing held by BAK Investment. Nanjing CBAK borrowed RMB29 million (approximately $4.2 million) as of March 31, 2026, bearing interest rate at 2.26% to 2.78% per annum, repayable through May 2026 to March 2027.

On February 25, 2025, Hitrans entered into a short-term factoring loan agreement with China Construction Bank Co., Ltd for a maximum amount of RMB10 million (approximately $1.4 million) for a period of one year from February 28, 2025 to February 27, 2026, bearing interest of 3.7% per annum. Hitrans borrowed RMB10 million (approximately $1.4 million) on the same date. Hitrans repaid the factoring loan in February 2026.

Hitrans entered into another short-term factoring loan agreement with China Construction Bank Co., Ltd for a maximum amount of RMB10 million (approximately $1.4 million) for a period of one year from November 28, 2025 to November 27, 2026, bearing interest of 3.1% per annum. Hitrans borrowed RMB10 million (approximately $1.4 million) on the same date. Hitrans borrowed another RMB9.3 million (approximately $1.3 million), bearing interest of 3.0% per annum for one year from March 5, 2026 to March 5, 2027.

On June 28, 2025, Nanjing CBAK entered into a short-term loan agreement with Agricultural Bank of China Co., Limited for RMB12 million (approximately $1.7 million) from June 28, 2025 to June 26, 2026, bearing interest 2.60% per annum. Nanjing CBAK borrowed RMB12 million (approximately $1.7 million) on the same date. Nanjing CBAK early repaid the loan on July 18, 2025.

On June 30, 2025, CBAK Power obtained a banking facility from China Guangfa Bank Co., Ltd with a maximum amount of RMB100 million (approximately $14 million) for a term to June 12, 2026 for short-term borrowings and issuance of acceptance bills to settle materials suppliers, guaranteed by Power’s buildings and pledged deposits. CBAK Power borrowed HKD10 million (approximately $1.4 million) from the above facility, bearing interest at 2.65% per annum, repayable on August 14, 2026. CBAK Power early repaid the loan on November 14, 2025.

CBAK Power has borrowed a series of acceptance bills totaling RMB51.5 million (approximately $7.45 million) for various terms expiring through April to September 2026, which was secured by CBAK Power’s buildings and pledged deposit of RMB45.9 million (approximately $6.6 million) (note 2).

On July 30, 2025, Hitrans entered into a short-term loan agreement with Industrial Bank Co., Ltd for RMB10 million (approximately $1.5 million) for a period of one year from July 31, 2025 to July 30, 2026 bearing interest of 3% per annum. Hitrans borrowed RMB10 million (approximately $1.4 million) on July 31, 2025.

On August 13, 2025, CBAK Power obtained a banking facility from China Construction Bank for RMB78.0 million (approximately $11.3 million) for a period to August 13, 2035. On August 29, 2025, CBAK Power drawn RMB10 million (approximately $1.4 million) from the facility for a period of one year, bearing interest of 2.2% per annum, repayable on August 21, 2026. On February 11, 2026, CBAK Power drawn RMB15 million (approximately $2.2 million) from the facility for a period of one year, bearing interest of 2.2% per annum, repayable on February 11, 2027.

On December 17, 2025, Nanjing BFD entered into a short-term loan agreement with Bank of China Co., Limited for RMB10 million (approximately $1.4 million) from December 17, 2025 to December 16, 2026, bearing interest 2.30% per annum. The loan was guaranteed by CBAK Nanjing. Nanjing BFD borrowed RMB10 million (approximately $1.4 million) on the same date.

On March 27, 2026, Nanjing CBAK obtained a bank loan from Ningbo Bank Co., Ltd Nanjing Gaochun Branch for RMB10 million (approximately $1.4 million), for the period from March 27, 2026 to November 3, 2026, bearing interest of 3.0% per annum. The loan did not require any security or guarantee from Nanjing CBAK.

CBAK Power borrowed a series of acceptance bills from China Zheshang Bank Co., Ltd. Shenyang Branch totaling RMB60.3 million (approximately $8.7 million) for various terms expiring through April to September 2026, which was secured by CBAK Power’s pledged deposits of RMB32.8 million (approximately $4.8 million) (note 2), and CBAK Power’s pledged bills receivable of RMB11.2 million (approximately $1.6 million) (note 3).

Nanjing CBAK borrowed a series of acceptance bills from China Zheshang Bank Co., Ltd. Shenyang Branch totaling RMB69.5 million (approximately $10.1 million) for various terms expiring through April to August 2026, which was secured by Nanjing CBAK’s pledged deposit of RMB62.4 million (approximately $9.0 million) (note 2), and Nanjing CBAK’s pledged bills receivable of RMB7.4 million (approximately $1.1 million) (note 3).

Hitrans borrowed a series of acceptance bills from China Zheshang Bank Co., Ltd totaling RMB36.7 million (approximately $5.3 million) for various terms expiring through April to June 2026, which was secured by Hitrans’s pledged deposit of RMB36.7 million (approximately $5.3 million) (note 2).

Nanjing CBAK borrowed a series of acceptance bills from Bank of Nanjing totaling RMB89.0 million (approximately $12.9 million) for various terms expiring through April to September 2026, which was secured by Nanjing CBAK’s pledged deposit of RMB79.0 million (approximately $11.4 million) (note 2) and the balance guaranteed by 100% equity of CBAK Nanjing held by BAK Investment.

Nanjing CBAK borrowed a series of acceptance bills from Bank of Ningbo totaling RMB10.2 million (approximately $1.5 million) for various terms expiring in July 2026, which was secured by Nanjing CBAK’s pledged deposit of RMB10.2 million (approximately $1.5 million) (note 2).

Hitrans borrowed a series of acceptance bills from Bank of Communications Co., Ltd. Shangyu Branch totaling RMB67.9 million (approximately $9.8 million) expiring through May to August 2026, which was secured by Hitrans’s pledged deposit of RMB67.9 million (approximately $9.8 million) (note 2).

Hitrans borrowed a series of acceptance bills from Zhejiang Shangyu Rural Commercial Bank Co., Ltd totaling RMB80.0 million (approximately $11.6 million) expiring through May to September 2026, which was secured by Hitrans’s pledged deposit of RMB80.0 million (approximately $11.6 million) (note 2).

CBAK Power borrowed a series of acceptance bills from Industrial and Commercial Bank of China totaling RMB71.9 million (approximately $10.4 million) expiring through April to September 2026, which was secured by CBAK Power’s pledged deposit of RMB72.0 million (approximately $10.4 million) (note 2).

CBAK Power borrowed a series of acceptance bills from China Construction Bank Co., Ltd totaling RMB100.0 million (approximately $14.5 million) expiring through June to August 2026.

Hitrans borrowed a series of acceptance bills from Industrial Bank totaling RMB2.1 million (approximately $0.3 million) expiring in July 2026, which was secured by Hitrans’s pledged deposit of RMB2.1 million (approximately $0.3 million) (note 2).

Nanjing CBAK borrowed a series of acceptance bills from Agricultural Bank of China totaling RMB29.7 million (approximately $4.3 million) expiring through June to September 2026, which was secured by Nanjing CBAK’s pledged deposit of RMB9.7 million (approximately $1.4 million) (note 2) and the balance guaranteed by 100% equity in CBAK Naning held by BAK Investment.

Nanjing CBAK obtained serval letter of credit from Bank of Ningbo totaled RMB15.0 million (approximately $2.2 million) for settlement of materials purchase for a period of one year expiring through September to November 2026, which was secured by Nanjing CBAK’s pledged deposit of RMB15.0 million (approximately $2.2 million) (note 2). 

Hitrans borrowed a series of acceptance bill from Bank of Ningbo of RMB20 million (approximately $2.9 million) expiring through June to August 2026, which was secured by Hitran’s bills receivables of RMB20 million (approximately $2.9 million) (note 3).

Haisheng borrowed a series of acceptance bills from China Zheshang Bank Co., Ltd totaling RMB57.3 million (approximately $8.3 million) for various terms expiring through July to September 2026, which was secured by Haisheng’s pledged deposit of RMB57.3 million (approximately $8.3 million) (note 2).

Hitrans borrowed a series of acceptance bills from China CITIC Bank Shaoxing Branch totaling RMB32 million (approximately $4.6 million) for various terms expiring through August to September 2026, which was secured by Hitrans’s pledged deposits of RMB32 million (approximately $4.6 million) (note 2).

Haisheng borrowed a series of acceptance bills from China CITIC Bank Shaoxing Branch totaling RMB13.9 million (approximately $2.0 million) for various terms expiring through July to September 2026, which was secured by Haisheng’s pledged deposits of RMB6.4 million (approximately $0.9 million) (note 2) and bills receivables of RMB7.5 million (approximately $1.1 million) (note 3).

The facilities were also secured by the Company’s assets with the following carrying amounts:

As of March 31, 2026, the Company had $25.0 million unutilized committed banking facilities.

During the three months ended March 31, 2025 and 2026, interest of $246,501 and $252,420 were incurred on the Company’s bank borrowings, respectively.  

Other short-term loans:

Other short-term loans as of December 31, 2025 and March 31, 2026 consisted of the following:

During the three months ended March 31, 2025 and 2026, interest of $2,062 and nil were incurred on the Company’s borrowings from unrelated parties, respectively.