Bank Loans

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

BANK LOANS

NOTE 4 – BANK LOANS

Bank loans of $4,893,661 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 $6,425,437 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 March 31, 2021, 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 March 31, 2021 and December 31, 2020, bank loans consisted of the following:

	March 31, 2021		December 31, 2020
Mortgage loan	$	4,893,661	$	5,064,142
Line of revolving loan		6,425,437		6,322,417
Total bank loans	$	11,319,098	$	11,386,559
Reclassifying as:
Current portion	$	6,425,437	$	6,446,139
Long-term portion (more than 12 months)		4,893,661		4,940,420
Total bank loans	$	11,319,098	$	11,386,559

Interest related to the bank loans was $55,750 and $95,831 for the three months ended March 31, 2021 and 20 respectively. All interests are included in interest expense on the accompanying condensed consolidated statements of operations.