| Short-term bank loans |
Note 12. Short-term bank loans Short-term bank loans consisted of the following: | | | As of
June 30,
2026 | | | As of
December 31,
2025 | | | Fujian Rural Commercial Bank | | $ | 368,454 | | | $ | 357,495 | | | Industrial and Commercial Bank of China | | | 4,391,978 | | | | 4,261,344 | | | China Merchants Bank | | | 2,208,658 | | | | — | | | Total short-term bank loans | | $ | 6,969,090 | | | $ | 4,618,839 | | As of June 30, 2026, bank loans of $4,391,978 are secured by land-use rights and buildings owned by Ewatt and guaranteed by Wenzao Huang, Baohua Xu, Yunjun Huang and Zhaoxia Chen. A bank loan of $368,454 is secured by personal guarantees of Wenzao Huang, Baohua Xu, Jinliang Xu, Xiaolong Chen and Yunjun Huang. All the guarantors, except Baohua Xu, are shareholders of the company, of whom Wenzao Huang and Yunjun Huang are also directors. Baohua Xu is the spouse of Wenzao Huang. The interest is paid on a monthly basis and the principal is repaid in full at maturity. Short-term loans as of June 30, 2026 consisted of following: | As of June 30, 2026 short-term bank loans | | Loan
commencement
date | | Loan
maturity
date | | Loan
amount
in RMB | | | Loan
amount
in USD | | | Effective
interest
rate | | | Industrial and Commercial Bank of China | | July 28, 2025 | | July 10, 2026 | | | 6,780,000 | | | $ | 999,248 | | | | 1.30 | % | | Industrial and Commercial Bank of China | | July 28, 2025 | | July 14, 2026 | | | 6,170,000 | | | | 909,345 | | | | 1.30 | % | | Industrial and Commercial Bank of China | | July 28, 2025 | | July 16, 2026 | | | 7,050,000 | | | | 1,039,041 | | | | 1.30 | % | | Industrial and Commercial Bank of China | | April 1, 2026 | | March 12, 2027 | | | 7,000,000 | | | | 1,031,675 | | | | 1.30 | % | | Industrial and Commercial Bank of China | | April 8, 2026 | | April 7, 2027 | | | 2,800,000 | | | | 412,669 | | | | 1.30 | % | | Fujian Rural Commercial Bank | | August 29, 2025 | | August 29, 2026 | | | 2,500,000 | | | | 368,454 | | | | 4.95 | % | | China Merchants Bank | | February 11, 2026 | | February 10, 2027 | | | 4,073,940 | | | | 600,424 | | | | 2.80 | % | | China Merchants Bank | | February 13, 2026 | | February 12, 2027 | | | 1,254,032 | | | | 184,821 | | | | 2.80 | % | | China Merchants Bank | | March 20, 2026 | | March 19, 2027 | | | 5,228,000 | | | | 770,512 | | | | 1.70 | % | | China Merchants Bank | | March 31, 2026 | | March 30, 2027 | | | 2,100,000 | | | | 309,502 | | | | 1.70 | % | | China Merchants Bank | | April 14, 2026 | | April 13, 2027 | | | 1,250,000 | | | | 184,227 | | | | 1.70 | % | | China Merchants Bank | | April 23, 2026 | | April 22, 2027 | | | 1,080,000 | | | | 159,172 | | | | 1.70 | % | | Total short-term bank loans as of June 30, 2026 | | | | | | | 47,285,972 | | | $ | 6,969,090 | | | | | | Short-term loans as of December 31, 2025 consisted of following: | For the year ended December 31, 2025 short-term bank loans | | Loan
commencement
date | | Loan
maturity
date | | Loan
amount
in RMB | | | Loan
amount
in USD | | | Effective
interest
rate | | | Industrial and Commercial Bank of China | | July 28, 2025 | | July 10, 2026 | | | 6,780,000 | | | $ | 969,527 | | | | 1.30 | % | | Industrial and Commercial Bank of China | | July 28, 2025 | | July 14, 2026 | | | 6,170,000 | | | | 882,298 | | | | 1.30 | % | | Industrial and Commercial Bank of China | | July 28, 2025 | | July 16, 2026 | | | 7,050,000 | | | | 1,008,137 | | | | 1.30 | % | | Industrial and Commercial Bank of China | | May 21, 2025 | | May 7, 2026 | | | 7,000,000 | | | | 1,000,987 | | | | 3.85 | % | | Industrial and Commercial Bank of China | | February 28, 2025 | | February 6, 2026 | | | 2,800,000 | | | | 400,395 | | | | 3.85 | % | | Fujian Rural Commercial Bank | | August 29, 2025 | | August 29, 2026 | | | 2,500,000 | | | | 357,495 | | | | 4.95 | % | | Total short-term bank loans as of December 31, 2025 | | | | | | | 32,300,000 | | | $ | 4,618,839 | | | | | |
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