| SHORT TERM BANK LOANS |
10. SHORT TERM BANK LOANS
Bank loans represent the amounts due to various
banks. As of December 31, 2025 and June 30, 2025, bank loans consisted of the following:
| | | Annual
| | | | | | As of | | | | | Interest
Rate | | | Maturities | | | December 31,
2025 | | | June 30, 2025 | | | Short-term loans: | | | | | | | | | | | | | | | | | | Industrial Bank, Xiamen (1) | | | 3.85 | % | | | September 18, 2025 | | | | - | | | | 418,784 | | | ICBC, Xiamen (3) | | | 3.35 | % | | | August 5, 2025 | | | | - | | | | 418,784 | | | Bank of China, Xiamen (6) | | | 2.90 | % | | | August 28, 2025 | | | | - | | | | 418,784 | | | Industrial Bank, Xiamen (2) | | | 3.50 | % | | | January 22, 2026 | | | | 428,994 | | | | 418,784 | | | Rural Commercial Bank, Xiamen (4) | | | 5.65 | % | | | March 7, 2026 | | | | 427,565 | | | | 417,388 | | | Huaxia Bank, Xiamen (5) | | | 3.10 | % | | | March 25, 2026 | | | | 714,991 | | | | 697,972 | | | Xiamen International Bank (7) | | | 4.00 | % | | | June 5, 2026 | | | | 560,610 | | | | 552,795 | | | ICBC, Xiamen (8) | | | 3.00 | % | | | July 31, 2026 | | | | 428,994 | | | | - | | | Bank of China, Xiamen (9) | | | 2.90 | % | | | February 27, 2026 | | | | 428,994 | | | | - | | | Industrial Bank, Xiamen (10) | | | 3.30 | % | | | September 16, 2026 | | | | 428,994 | | | | - | | | Total | | | | | | | | | | $ | 3,419,142 | | | $ | 3,343,291 | |
The average annual interest rate of the short-term
bank loans was 3.48% and 4.15% for the six months ended December 31, 2025 and 2024, respectively. The Company was in compliance with
their financial covenants as of December 31, 2025. For the six months ended December 31, 2025, interest expense related to bank loans
amounted to $58,515.
| 1) | Loans from Industrial Bank, Xiamen was unsecured. The effective date was September 19, 2024. | | | | | 2) | Loans from Industrial Bank, Xiamen was unsecured. The effective date was January 23, 2025. |
| 3) | Loans from ICBC, Xiamen was unsecured. The effective date was August 5, 2024. | | | | | 4) | Loans from Rural Commercial Bank, Xiamen, was personally guaranteed by Mr. Guohua Huang, the chief executive officer of the Company. The effective date was March 7, 2025. | | | | | 5) | Loans from Huaxia Bank, Xiamen was unsecured. The effective date was March 26, 2025. | | | | | 6) | Loans from Bank of China, Xiamen was personally guaranteed by Mr. Guohua Huang, the chief executive officer of the Company. The effective date was February 28, 2025. | | | | | 7) | Loans from Xiamen International Bank was personally guaranteed by Mr. Guohua Huang, the chief executive officer of the Company. The effective date was June 12, 2025. | | | | | 8) | Loan from ICBC, Xiamen was secured by the property of Mr. Guohua Huang, the chief executive officer of the Company. The effective date was July 31, 2025. | | | | | 9) | Loan from Bank of China, Xiamen was personally guaranteed by Mr. Guohua Huang, the chief executive officer of the Company. The effective date was August 27, 2025. | | | | | 10) | Loan from Industrial Bank, Xiamen was personally guaranteed by Mr. Guohua Huang, the chief executive officer of the Company, and Xiamen Yipin Yishang Information Technology Co., Ltd. The effective date was September 17, 2025. |
|