Related Party Transactions |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 7 – RELATED PARTY TRANSACTIONS
On June 25, 2026, the Company borrowed RMB 1,000,000 (approximately US$146,823) from Chairperson Li for working capital purposes. The loan bears interest at an annual rate of 3.0% and is payable within one year with the maturity date of June 24, 2027, pursuant to the terms of the loan agreement. This borrowing was in addition to amounts previously advanced by Chairman Li to the Company. As of June 30, 2026 and December 31, 2025, the total amounts owed to Chairperson Li were $1,644,857 and $1,435,136, respectively, and were recorded as “Borrowings from related parties” on the accompanying condensed consolidated balance sheets.
On July 8, 2019, the Company entered into a loan agreement with Chairperson Li, pursuant to which the Company borrowed RMB 4,770,000 (approximately $700,000). The loan bore interest at an annual rate of 4.35% and was originally due within one year of the date of the loan agreement. The maturity date has subsequently been extended annually on substantially identical terms and is currently due on July 9, 2027. On June 20, 2025, the Company borrowed RMB 1,750,000 (approximately US$257,000) from Chairperson Li. No interest was charged if the loan was repaid in full by December 31, 2025. On January 1, 2026, the loan began to accrue interest at a rate of 3.30% and is payable within one year of the loan agreement. The loan has been extended to June 20, 2027 with all other original terms unchanged.
Total interest expense related to the three loans described above for the three months ended June 30, 2026 and 2025 were $9,306 and $6,771, respectively, and $18,391 and $13,558 for the six months ended June 30, 2026 and 2025, respectively. Executive compensation payable to the Chairperson Li, which is included in “Other payables” in the accompanying condensed consolidated balance sheets, totaled $1,883,506 and $1,875,506 as of June 30, 2026 and December 31, 2025, respectively.
As of June 30, 2026, the outstanding balance of interest-free borrowings from Chairperson Li. was RMB 2.58 million ($378,344). These borrowings have no contractual maturity and are payable on demand, providing a source of short-term liquidity for the company.
In June 2025, Chunming Dong, the husband of Chairperson Li, advanced RMB 1,000,000 ($142,272) to the Company for working capital purposes. The advance was interest free through December 31, 2025 and began accruing interest at an annual rate of 3.3% on January 1, 2026. Total interest related to the advance for the three months ended June 30, 2026 and 2025 was $1,206 and , respectively, and $2,394 and $0 for the six months ended June 30, 2026 and 2025, respectively. The loan has been extended to June 20, 2027 with all other original terms unchanged. |