Loans and Line of Credit

3 Months Ended

Mar. 31, 2025

Bank Loans and Line of Credit

Bank Loans and Line of Credit

Note 16. Loans and Line of Credit

Our bank loans and credit facilities typically have a term of 12 months or less and are included in “Short-term loans” in our condensed consolidated balance sheets. The following table represents Short-term bank loans as of March 31, 2025 and December 31, 2024 (in thousands, except interest rate data):

			Loan	Interest					March 31,		December 31,
Subsidiary	Bank		Detail	Rate		Start Date	Due Date		2025		2024
Tongmei	Bank of China (1)	$	689	2.7	%	January-25	January-26	$	689	$	-
			579	2.7	%	March-25	March-26		579		-
	Bank of China (3)		1,426	2.4	%	September-24	September-25		1,380		1,370
			1,370	2.4	%	November-24	November-25		1,380		1,370
			685	2.7	%	November-24	November-25		689		685
			2,480	2.5	%	February-25	February-26		2,480		-
	Bank of Communications (1)		1,376	3.0	%	May-24	May-25		1,380		1,370
			2,480	3.0	%	June-24	May-25		2,480		2,466
	China Merchants Bank (1)		1,386	3.5	%	January-24	January-25		-		1,370
			692	3.5	%	February-24	February-25		-		685
			692	3.5	%	April-24	April-25		-		685
			3,155	2.9	%	January-25	January-26		3,155		-
			978	2.9	%	March-25	March-26		978		-
	Bank of Beijing (2)		3,600	3.0	%	March-24	February-25		-		3,565
			3,580	3.0	%	June-24	June-25		3,585		3,565
			2,204	2.7	%	March-25	March-26		2,204		-
	Industrial Bank (1)		2,851	3.9	%	September-24	September-25		2,800		2,740
			2,679	3.9	%	October-24	October-25		2,689		2,679
			1,440	3.2	%	November-24	November-25		1,447		1,440
	Industrial Bank (4)		1,380	3.8	%	March-25	March-26		1,380		-
	NingBo Bank (1)		1,647	4.3	%	January-24	January-25		-		1,630
			1,258	4.3	%	May-24	March-25		-		1,255
			1,822	3.9	%	November-24	November-25		1,832		1,822
			550	3.9	%	December-24	December-25		551		550
			1,584	3.9	%	January-25	January-26		1,584		-
			689	3.9	%	March-25	March-26		689		-
	Industrial and Commercial Bank of China (1)		2,851	3.3	%	September-24	September-25		2,750		2,740
	China Citic Bank (1)		2,752	2.9	%	June-24	June-25		2,755		2,740
			2,851	2.9	%	July-24	July-25		2,755		2,740
			1,426	2.9	%	September-24	September-25		1,380		1,370
	Agricultural Bank of China (1)		1,235	2.6	%	November-24	November-25		1,240		1,235
			137	2.6	%	December-24	December-25		138		137
BoYu	Industrial and Commercial Bank of China (1)		1,426	2.8	%	September-24	September-25		1,380		1,370
	Bank of China (1)		1,145	2.3	%	September-24	September-25		1,102		1,096
			274	2.4	%	December-24	December-25		276		274
	Industrial Bank (1)		1,370	2.7	%	November-24	November-25		1,380		1,370
	Bank of Communications (1)		274	3.0	%	May-24	May-25		276		274
	NanJing Bank (1)		1,370	2.8	%	December-24	December-25		1,380		1,370
	Loan Balance							$	50,763	$	45,963

Collateral for the above bank loans and line of credit

(1) Not collateralized.

(2) AXT time deposit.

(3) Baoding Tongmei’s land use rights and its building located at its facility in Dingxing, China. In addition, the loan attracts a guarantee fee amounting to 1.0% of the loan amount.

(4) Chaoyang JinMei’s land use rights and its building located at its facility in Kazuo, China.

Long-term Loans

On January 30, 2024, the Company secured a new line of credit amounting to $9.7 million, structured as a five-year bank loan. The credit facility bears interest at a rate of 6.5% per annum on the amount drawn from the line of credit. The credit facility is collateralized by the real estate properties owned by ChaoYang Tongmei. In January 2024, the Company borrowed $5.8 million against the credit facility. The intended use of the credit facility is for construction projects. As of March 31, 2025, $5.0 million is included in “Other long-term liabilities” and $0.6 million is included in “Short-term loans” in our condensed consolidated balance sheets.

In December 2023, one of our consolidated subsidiaries, ChaoYang XinMei secured a loan of approximately $2.1 million from an unrelated financing company. According to the agreement, ChaoYang XinMei temporarily transferred ownership of its production line and related equipment to the financing company, while retaining the right to use the property for production. At the end of the 30-month contractual period, ChaoYang XinMei holds the option to repurchase the production line and related equipment for $14.00. As of March 31, 2025, $0.3 million associated with this financing arrangement is included in “Other long-term liabilities” and $1.1 million is included in “Short-term loans” in our condensed consolidated balance sheets.
​

In February 2025, the Company secured a fourteen-month unsecured bank loan totaling $2.7 million at an interest rate of 3.2%. As of March 31, 2025, $2.6 million is included in “Other long-term liabilities” and $0.1 million is included in “Short-term loans” in our condensed consolidated balance sheets.

As of March 31, 2025, the maturities of our long-term loan liabilities in five years (including current portion) are as follows (in thousands):

Maturity of long-term loans
2025	$	1,102
2026		3,995
2027		964
2028		1,240
2029		2,360

In summary, short-term loans of $52.5 million included under “Short-term loans” in our condensed consolidated balance sheet at March 31, 2025, consisted of $50.8 million of short-term bank loans and $1.7 million of the current portion of long-term debt. Long-term loans of $7.9 million included under “Other long-term liabilities” in our condensed consolidated balance sheet at March 31, 2025 consisted of $5.0 million in a five-year bank loan, $0.3 million in a loan secured by ChaoYang XinMei and $2.6 million in a fourteen-month bank loan.