Bank Loans

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

BANK LOANS

NOTE 6 – BANK LOANS

Bank loans of $4,913,557 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 $5,493,475 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, 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 December 31, 2021 and 2020, bank loans consisted of the following:

	December 31, 2021		December 31, 2020
Mortgage loan	$	5,493,475	$	5,064,142
Line of revolving loan		4,913,557		6,322,417
Short-term bank loans		-		-
Total bank loans		10,407,032		11,386,559
Reclassifying as:
Current portion	$	5,584,788	$	6,446,139
Long-term portion (more than 12 months)		4,822,244		4,940,420
Total bank loans	$	10,407,032	$	11,386,559

Interest related to the bank loans was $206,747 and $263,369 for the years ended December 31, 2021 and 2020, respectively.

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