NOTE 4 BANK LOANS

Bank loans represent amounts due to various banks and are generally due on demand or within one year. These loans can be renewed with the banks. Bank loans consisted of the following at June 30, 2015 and December 31, 2014:

Bank	June 30, 2015		December 31, 2014
Nanjing Bank	$	14,103,540	$	17,357,412
Industrial and Commercial Bank of China		13,056,000		11,375,000
HSBC		5,077,764		6,766,960
Bank of Communications		3,264,000		13,021,612
China Minsheng Banking		3,264,000		3,250,000
China Citic Bank		1,468,800		-
Pin An Bank		683,363		3,867,605
Shanghai Pudong Development Bank		-		3,250,000
Bank of China		-		1,328,361
	$	40,917,467	$	60,216,950

In June 2014, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $8.16 million (RMB50 million). These loans are guaranteed by Mr. Kang and Jiangsu Ever-Glory International Group Corp. (“Jiangsu Ever-Glory”), an entity controlled by Mr. Kang, the Company’s Chairman and Chief Executive Officer. These loans are also collateralized by the Company’s property and equipment. As of June 30, 2015, Goldenway had borrowed $3.26 million (RMB20 million) under this line of credit with an annual interest rate of 6.1% and due in September 2015. At June 30, 2015, approximately $4.9 million was unused and available under this line of credit.

In July 2014, Ever-Glory Apparel entered into a line of credit agreement for approximately $9.79 million (RMB60 million) with Nanjing Bank and guaranteed by Jiangsu Ever-Glory, Mr. Kang and Goldenway. As of June 30, 2015, Ever-Glory Apparel had borrowed $6.53 million (RMB40 million) from Nanjing Bank with annual interest rates ranging from 5.5% to 6.4% and due on various dates from August to December 2015. Ever-Glory Apparel had also borrowed $1.86 million from Nanjing Bank with annual interest rates ranging from 1.7% to 2.1% and due on various dates from July to August 2015, and collateralized by approximately $2.45 million of accounts receivable from wholesale customers. At June 30, 2015, approximately $1.4 million was unused and available under this line of credit.

In July 2014, LA GO GO entered into a revolving line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $3.26 million (RMB20 million). The line of credit is guaranteed by Mr. Kang and Goldenway. As of June 30, 2015, LA GO GO had borrowed $2.45 million (RMB15 million) under this line of credit with an annual interest rates ranging from 5.9% to 6.2% and due on various dates from August 2015 to January 2016. At June 30, 2015, approximately $0.81 million (RMB5 million) was unused and available under this line of credit.

In January 2014, Goldenway entered into a line of credit agreement with Industrial and Commercial Bank of China, which allows the Company to borrow up to approximately $9.79 million (RMB60 million). These loans are collateralized by the Company’s property and equipment. As of June 30, 2015, Goldenway had borrowed $6.53 million (RMB40 million) under this line of credit with an annual interest rates ranging from 5.5% - 5.8% and due on various dates from November 2015 to February 2016. At June 30, 2015, approximately $3.26 million was unused and available under this line of credit.

In January 2014, Ever-Glory Apparel entered into a line of credit agreement for approximately $6.53 million (RMB40 million) with Industrial and Commercial Bank of China and guaranteed by Goldenway. As of June 30, 2015, Ever-Glory Apparel had borrowed $6.53 million (RMB 40 million) under this line of credit with an annual interest rates ranging from 5.1% - 5.4% and due on various dates from October to December 2015.

In July 2011, Ever-Glory Apparel and Perfect Dream collectively entered into a secured banking facility agreement for a combined revolving import facility, letter of credit, invoice financing facilities and a credit line for treasury products of up to $7.0 million with the Nanjing Branch of HSBC (China) Company Limited (“HSBC”). This agreement is guaranteed by the Company and Mr. Kang. As of June 30, 2015, Ever-Glory Apparel had borrowed $5.08 million from HSBC with an annual interest rate of 5.88%, due in August 2015, and collateralized by approximately $6.68 million of accounts receivable from wholesale customers. These bank loans are to be repaid upon receipt of payments from customers. As of June 30, 2015, approximately $1.92 million was unused and available.

In July 2013, LA GO GO entered into a line of credit agreement for approximately $5.39 million (RMB33 million) with the Bank of Communications and guaranteed by Jiangsu Ever-Glory, Ever-Glory Apparel and Mr. Kang. As of June 30, 2015, LA GO GO had borrowed $3.26 million (RMB20 million) from the Bank of Communications with annual interest rates ranging from 5.3% to 6.6% and due on various dates from August 2015 to June 2016. At June 30, 2015, approximately $2.13 million was unused and available under this line of credit.

As of June 30, 2015, LA GO GO had borrowed $3.26 million (RMB 20 million) from China Minsheng Bank, with annual interest rate of 6.3% and due in August 2015. This loan is guaranteed by Ever-Glory Apparel and Mr. Kang.

In December 2014, LA GO GO entered into a line of credit agreement for approximately $5.88 million (RMB36 million) with the China Citic Bank and guaranteed by Jiangsu Ever-Glory, Ever-Glory Apparel and Mr. Kang. As of June 30, 2015, LA GO GO had borrowed $1.47 million (RMB 9.0 million) from the China Citic Bank with annual interest rate of 5.88% and due in December 2015. At June 30, 2015, approximately $4.41 million was unused and available under this line of credit.

As of June 30, 2015, Ever-Glory Apparel had borrowed $0.68 million from Ping An Bank, with annual interest rate of 5.4% and due in July 2015, and collateralized by approximately $0.89 million of accounts receivable from wholesale customers.

In November 2013, Ever-Glory Apparel entered into a line of credit agreement for approximately $5.70 million (RMB35 million) with the Bank of China and guaranteed by Jiangsu Ever-Glory and Mr. Kang. At June 30, 2015, approximately $5.70 million was unused and available under this line of credit.

In November 2014, Goldenway entered into a line of credit agreement with Shanghai Pudong Development Bank, which allows the Company to borrow up to approximately $3.26 million (RMB20 million). These loans are guaranteed by Ever-Glory Apparel and Jiangsu Ever-Glory. These loans are also collateralized by Jiangsu Ever-Glory’s property and equipment. At June 30, 2015, approximately $3.26 million was unused and available under this line of credit.

All loans have been repaid before or at maturity date.

Total interest expense on bank loans amounted to $716,441, $1,492,287, $774,693, $1,481,808 for the three and six months ended June 30, 2015 and 2014, respectively.