Bank Loans

9 Months Ended

Sep. 30, 2022

Bank Loans [Abstract]

BANK LOANS

NOTE 6 – BANK LOANS

Bank loans of $4,809,065 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 $670,377 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 $5,265,610 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 September 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 September 30, 2022 and December 31, 2021, bank loans consisted of the following:

	September 30, 2022		December 31, 2021
Mortgage loan	$	4,809,065	$	5,493,475
Line of revolving loan		5,265,610		4,913,557
100% Guarantee bank loan		670,377		-
Total bank loans	$	10,745,052	$	10,407,032
Reclassifying as:
Current portion	$	5,362,061	$	5,584,788
Long-term portion (more than 12 months)		5,382,991		4,822,244
Total bank loans	$	10,745,052	$	10,407,032

Interest related to the bank loans was $69,621 and $58,524 for the three months ended September 30, 2022 and 2021, respectively.

Interest related to the bank loans was $156,015 and $168,631 for the nine months ended September 30, 2022 and 2021, respectively.

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