BORROWINGS

6 Months Ended

12 Months Ended

Jun. 30, 2024

Dec. 31, 2023

Debt Disclosure [Abstract]

BORROWINGS

10. BORROWINGS

As of December 31, 2023 and June 30, 2024, the bank borrowings were for working capital and capital expenditure purposes.

	As of
	December 31, 2023		June 30, 2024
			(Unaudited)
Current portion:
Short-term bank borrowings
Bank of Jiaxing (1)	$	2,726,197	$	2,662,649
Long-term bank borrowings, current portion
Bank of Jiaxing (1)		596,335		925,070
Subtotal	$	3,322,532	$	3,587,719
Non-current portion:
Long-term bank borrowings
Bank of Jiaxing (1)e	$	2,429,465	$	2,028,822
Subtotal	$	2,429,465	$	2,028,822
Total	$	5,751,997	$	5,616,541

(1) During the six months ended June 30, 2023 and 2024, the Company continuously entered into certain bank borrowings for the purpose of obtaining financing. The bank borrowings were joint secured by Mr. Ming-Chao Huang and Ms. Shu-Hui Cai, the shareholders of the Company, and pledged by the Company’s property, plant and equipment amounting to US$4,239,550 and US$4,026,313 as of December 31, 2023 and June 30, 2024, respectively.   The interest expenses were US$104,287 and US$137,496 for the six months ended June 30, 2023 and 2024, respectively. The weighted average interest rates of bank borrowings outstanding were 4.6% and 4.3% per annum as of December 31, 2023 and June 30, 2024, respectively. The maturity dates of the bank borrowings were from December 2023 to December 2027.

As of June 30, 2024 the Company’s long-term bank borrowings will be due according to the following schedule:

	Amount
For the fiscal years ended December 31,	(Unaudited)
Remainder of 2024	$	581,058
2025		688,023
2026		894,430
2027 and thereafter		790,381
Total long-term bank borrowings	$	2,953,892

MKDWELL TECH INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except share and per share data)

11. BORROWINGS

As of December 31, 2022 and 2023, the bank borrowings were for working capital and capital expenditure purposes.

	As of December 31,
	2022		2023
Current portion:
Short-term bank borrowings
Bank of Jiaxing (1)	$	1,348,373	$	2,726,197
Long-term bank borrowings, current portion
Bank of Jiaxing (1)		289,973		596,335
Subtotal	$	1,638,346	$	3,322,532
Non-current portion:
Long-term bank borrowings
Bank of Jiaxing (1)	$	2,282,645	$	2,429,465
Subtotal	$	2,282,645	$	2,429,465
Total	$	3,920,991	$	5,751,997

(1)

During the years ended December 31, 2022 and 2023, the Company continuously entered into certain bank borrowings for the purpose of obtaining financing. The bank borrowings were jointly secured by Mr. Ming-Chao Huang and Ms. Shu-Hui Cai, the shareholders of the Company, and pledged by the Company’s property, plant and equipment and real estate properties for lease. The net asset value of property, plant and equipment and real estate properties for lease pledged were US$4,522,250 and US$4,239,550 as of December 31, 2022 and 2023, respectively.

The interest expenses were US$211,117 and US$214,627 for the years ended December 31, 2022 and 2023, respectively. The weighted average interest rates of bank borrowings outstanding were 4.4% and 4.6% per annum as of December 31, 2022 and 2023, respectively. The maturity dates of the bank borrowings were from April 2024 to December 2027.

As of December 31, 2023, the Company’s long-term bank borrowings will be due according to the following schedule:

For the fiscal years ended December 31,	Amount
2024	$	596,335
2025		704,444
2026		915,777
2027		809,244
2028 and thereafter		-
Total long-term bank borrowings	$	3,025,800

MKDWELL TECH INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except share and per share data)