| Prepayments |
Note 4 – Prepayments
Prepayments consist of the following:
| | |
December 31,
2025 | | |
December 31,
2024 | |
| Prepayments | |
| | | |
| | |
| Prepayment – fuel expenses1 | |
$ | 18,967,434 | | |
$ | 7,455,660 | |
| Prepayment – subcontractor costs | |
| 2,460,682 | | |
| 189,842 | |
| Prepayment – material purchase2 | |
| 4,930,883 | | |
| - | |
| Prepayment – insurance expenses | |
| 153,270 | | |
| 114,978 | |
| Prepayment -highway bridge expenses | |
| 911,075 | | |
| - | |
| Prepayment – others | |
| 24,403 | | |
| 26,076 | |
| Total prepayments | |
$ | 27,447,747 | | |
$ | 7,786,556 | |
| 1. | Due to significant volatility in fuel prices in the market, the Company
has sought to optimize its overall cost structure by purchasing fuel when prices are relatively low for future consumption. This strategy
is intended to mitigate the risk of excessive operating costs resulting from substantial increases in fuel prices. Prepaid fuel expenses
primarily represent advance payments made to five fuel suppliers. In addition, in anticipation of substantial growth in its operations
in the coming years, the Company has increased its prepaid fuel balances to support expected future fuel requirements. |
| 2. | As of December 31, 2025, the Company had entered into two material
purchase agreements with Tline Supply Chain Management Co., Ltd. and Anji Nengqi Technology Co., Ltd. for total consideration of $640,940
and $4,289,943, respectively. Subsequent to year-end and as of the date of this report, both agreements were cancelled, and the related
prepaid amounts were fully refunded to the Company. |
|