Bank Loans

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

BANK LOANS

NOTE 8 –BANK LOANS

Bank loans of $5,098,796 represented amount due to one financial institution in Hong Kong that are repayable in a term of 30 years, with 360 monthly installments and interest is charged at the annual rate of 2.5% below its best lending rate.

Revolving credit line of $4,558,749 is expected to be repaid in the next twelve months and interest is charged at the rate of 3.2625% per annum over the Hong Kong Dollar Best Lending Rate.

At 31 December 2019, the banking facilities of the Company were secured by:

● Personal guarantee by the directors of the Company's subsidiary;

● Legal charge and rental assignment over the leasehold land and buildings owned by its related companies which are controlled by the major shareholder of the Company, Mr. Chan Tin Chi; and

● Hong Kong Mortgage Corporation Limited.

At December 31, 2019 and 2018, bank loans consisted of the following:

	December 31, 2019			December 31, 2018
Mortgage loan	$	5,098,796		$	-
Line of revolving loan		4,558,749			-
Short-term bank loans		1,195,297			2,182,960
Long-term bank loans		-			244,910
Total bank loans		10,852,842			2,427,870
Less: Total bank loans – discontinued operations		(1,195,297	)		(2,427,870	)
Total bank loans – continuing operations	$	9,657,545		$	-
Reclassifying as:
Current portion	$	4,676,184		$	-
Long-term portion (more than 12 months)		4,981,361			-
Total bank loans	$	9,657,545		$	-

Interest related to the bank loans, which was $322,201 and $242,703 for the years ended December 31, 2019 and 2018, respectively, is included in interest expense on the accompanying combined and consolidated statements of operations.