Bank Loans

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

BANK LOANS

NOTE 5 – BANK LOANS

Bank loans of $5,083,817 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 $5,999,845 is expected to be repaid in the next twelve months and interest is charged at the rate of 1.7468% - 1.8726 per annum over the Hong Kong Dollar Best Lending Rate.

At September 30, 2020, 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 September 30, 2020 and December 31, 2019, bank loans consisted of the following:

	September 30, 2020		December 31, 2019
	(Unaudited)		(Audited)
Mortgage loan	$	5,083,817	$	5,098,796
Line of revolving loan		5,999,845		4,558,749
Short-term bank loans		-		1,195,297
Total bank loans		11,083,662		10,852,842
Less: Total bank loans – discontinued operations		-		(1,195,297	)
Total bank loans – continuing operations	$	11,083,662	$	9,657,545
Reclassifying as:
Current portion	$	6,124,233	$	4,676,184
Long-term portion (more than 12 months)		4,959,429		4,981,361
Total bank loans	$	11,083,662	$	9,657,545

Interest related to the bank loans from continuing operations was $0 and $149,474 for the three months ended September 30, 2020 and 2019, respectively.

Interest related to the bank loans from continuing operations was $144,225 and $240,289 for the nine months ended September 30, 2020 and 2019, respectively.

Interest related to the bank loans from discontinued operations was $0 and $35,605 for the three months ended September 30, 2020 and 2019, respectively.

Interest related to the bank loans from discontinued operations was $0 and $116,597 for nine months ended September 30, 2020 and 2019, respectively.

All interests are included in interest expense on the accompanying condensed consolidated statements of operations.