Bank Loans

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

BANK LOANS

NOTE 8 – BANK LOANS

Bank loans of $5,064,142 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 $6,322,417 is expected to be repaid in the next twelve months and interest is charged at the rate of 1.63% per annum over the Hong Kong Dollar Best Lending Rate.

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

	December 31, 2020		December 31, 2019
Mortgage loan	$	5,064,142	$	5,098,796
Line of revolving loan		6,322,417		4,558,749
Short-term bank loans		-		1,195,297
Total bank loans		11,386,559		10,852,842
Less: Total bank loans – discontinued operations		-		(1,195,297	)
Total bank loans – continuing operations	$	11,386,559	$	9,657,545
Reclassifying as:
Current portion	$	6,446,139	$	4,676,184
Long-term portion (more than 12 months)		4,940,420		4,981,361
Total bank loans	$	11,386,559	$	9,657,545

Interest related to the bank loans from continuing operations was $263,369 and $322,201 for the years ended December 31, 2020 and 2019, respectively.

Interest related to the bank loans from discontinued operations was $0 and $147,631 for the years ended December 31, 2020 and 2019, respectively.

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