LEASES AS LESSEE

6 Months Ended

Jun. 30, 2026

12. LEASES AS LESSEE

The Company has operating leases mainly for certain plants and financing leases for certain machinery and equipment as a lessee. There are 16 operating lease agreements existed for the six months ended June 30, 2026.

The depreciable life of assets and leasehold improvements is limited by the expected lease term unless there is a transfer of title or purchase option that is reasonably certain of being exercised.

Supplemental balance sheet information related to operating lease was as follows:


	As of
	December 31, 2025		June 30, 2026
	$US		$US
			(Unaudited)
Operating lease right-of-use assets		3,574,775		3,309,694

Operating lease liabilities – current		726,152		726,186
Operating lease liabilities – non-current		2,876,209		2,592,046
Total operating lease liabilities		3,602,361		3,318,232

	For the six months ended June 30,
	2025			2026
	(Unaudited)
Weighted discount rate for the operating lease		3.74	%		3.56	%
Weighted average remaining lease term		31 months			100 months

For the six months ended June 30, 2025 and 2026, the lease expense was as follows:

Schedule of Lease expense
	For the six months ended June 30,
	2025		2026
	$US		$US
	(Unaudited)
Operating leases expense		213,488		432,162
Short-term lease expense		23,328		24,436
Finance lease cost		38,495		—
Interest		20,667		—
Total		295,978		456,598

Because most of the leases do not provide an implicit rate of return, the Company used the incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments.

The following is a schedule of future minimum payments under the Company’s operating leases as of June 30, 2026:

Schedule of future minimum payments
For the year ending December 31,	Amount
	$US
Remainder of 2026		398,603
2027		653,774
2028		426,883
2029		258,324
2030		254,824
2031 and thereafter		1,894,426
Total lease payments		3,886,834
Less: imputed interest		(568,602	)
Total operating lease liabilities, net of interest		3,318,232