Bank Loans

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

BANK LOANS

NOTE 4 – BANK LOANS

At September 30, 2021, the Company had bank loans of $4,957,676 due to a financial institution in Hong Kong, which 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 $5,567,564 is expected to be repaid in the next twelve months and interest is charged at the rate of 1.56% per annum over the Hong Kong Dollar Best Lending Rate.

At September 30, 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 September 30, 2021 and December 31, 2020, bank loans consisted of the following:

	September 30, 2021		December 31, 2020
Mortgage loan	$	4,949,892	$	5,064,142
Line of revolving loan		5,567,564		6,322,417
Total bank loans	$	10,517,456	$	11,386,559
Reclassifying as:
Current portion	$	5,691,225	$	6,446,139
Long-term portion (more than 12 months)		4,826,231		4,940,420
Total bank loans	$	10,517,456	$	11,386,559

Interest related to the bank loans was $58,524 and $0 for the three months ended September 30, 2021 and 2020, respectively.

Interest related to the bank loans was $168,631 110,107 and $144,225 for the nine months ended September 30, 2021 and 2020, respectively.

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