Bank Loans

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

BANK LOANS

NOTE 6 – BANK LOANS

Bank loans of $4,877,322 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 $5,406,332 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, 2022, 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, 2022 and December 31, 2021, bank loans consisted of the following:

	March 31, 2022		December 31, 2021
Mortgage loan	$	5,406,332	$	5,493,475
Line of revolving loan		4,877,322		4,913,557
Total bank loans	$	10,283,654	$	10,407,032
Reclassifying as:
Current portion	$	5,497,669	$	5,584,788
Long-term portion (more than 12 months)		4,785,985		4,822,244
Total bank loans	$	10,283,654	$	10,407,032

Interest related to the bank loans was $90,830 and $78,250 for the three months ended March 31, 2022 and 2021, respectively.

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