Bank Loans

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

BANK LOANS

NOTE 6 – BANK LOANS

Bank loans of $4,845,394 represented the amount due to one financial institution in Hong Kong that is repayable in a term of 30 years, with 360 monthly installments and interest charged at the annual rate of 2.5% lower than its best lending rate.

Another loan of $666,702 is due to one financial institution in Hong Kong and is repayable in a term of 10 years, with 120 monthly installments and interest charged at the annual rate of 2.75% of its best lending rate.

We have a revolving credit line of $5,331,504 that 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.

As of June 30, 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.

As of June 30, 2022 and December 31, 2021, bank loans consisted of the following:

	June 30, 2022		December 31, 2021
Mortgage loan	$	4,845,394	$	5,493,475
Line of revolving loan		5,331,504		4,913,557
100% Guarantee bank loan		666,702		-
Total bank loans	$	10,843,600	$	10,407,032
Reclassifying as:
Current portion	$	5,428,151	$	5,584,788
Long-term portion (more than 12 months)		5,415,449		4,822,244
Total bank loans	$	10,843,600	$	10,407,032

Interest related to the bank loans was $44,403 and $31,857 for the three months ended June 30, 2022 and 2021, respectively.

Interest related to the bank loans was $86,394 and $110,107 for the six months ended June 30, 2022 and 2021, respectively.

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