Prepayments and Other Receivables

6 Months Ended

Jun. 30, 2021

Prepayments And Other Receivables And Recoverable From Loan Guarantee [Abstract]

Prepayments and Other Receivables

5. Prepayments and Other Receivables

Prepayments and other receivables as of December 31, 2020 and June 30, 2021 consisted of the following:

	December 31,			June 30,
	2020			2021
Value added tax recoverable	$	4,524,475		$	5,221,575
Loan receivables		1,358,637			-
Prepayments to suppliers		424,311			902,942
Deposits		17,385			123,319
Staff advances		67,867			124,473
Prepaid operating expenses		529,401			1,034,922
Others		524,468			1,004,212
		7,446,544			8,411,443
Less: Allowance for doubtful accounts		(7,000	)		(7,000	)
	$	7,439,544		$	8,404,443

Nanjing CBAK entered into a loan agreement with Shen Zhen Asian Plastics Technology Co., Ltd (SZ Asian Plastics), to loan SZ Asian Plastics a total amount of $1.4 million (RMB8,870,000) for a period of 6 months from December 1, 2020 to May 31, 2021. The loan was unsecured and bearing fixed interest at 6% per annum. The Company’s shareholder Mr. Jiping Zhao, holding 2.39% equity interest in the Company, at the same time held 79.13% equity interests in SZ Asian Plastics. In March 2021, SZ Asian Plastics has fully repaid the loan principal.