Bank Loans

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

BANK LOANS

NOTE 7 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. Short term bank loans consisted of the following as of December 31, 2018, and 2017.

	December 31, 2018		December 31, 2017
Bank	(In thousands of U.S. Dollars)
Industrial and Commercial Bank of China	$	14,540	$	21,504
Nanjing Bank		5,089		9,216
China Minsheng Bank		2,908		3,072
Bank of Communications		2,893		1,536
Shanghai Pudong Development Bank		2,613		-
China Everbright Bank Shanghai Pudong Development Bank		1,454		-
HSBC		-		2,402
	$	29,497	$	37,730

In December 2016, Goldenway entered into a line of credit agreement with Industrial and Commercial Bank of China, which allows the Company to borrow up to approximately $8.7 million (RMB60.0 million). These loans are collateralized by the Company’s property and equipment. As of December 31, 2018, Goldenway had borrowed $2.9 million (RMB20.0 million) from Industrial and Commercial Bank of China with an annual interest rate 3.92% and due on November 2019. As of December 31, 2018, approximately $5.8 million was unused and available under this line of credit.  

In November 2018, Ever-Glory Apparel entered into a line of credit agreement for approximately $14.6 million (RMB100.0 million) with Industrial and Commercial Bank of China and collateralized by assets of Jiangsu Ever-Glory’s equity investee, Nanjing Knitting, under a collateral agreement executed among Ever-Glory Apparel, Nanjing Knitting and the bank. As of December 31, 2018, Ever-Glory Apparel had borrowed $11.6 million (RMB 80.0 million) under this line of credit with annual interest rates ranging from 4.57% to 4.7% and due on July 2019. As of December 31, 2018, approximately $3.0 million was unused and available under this line of credit.

In August 2018, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $7.3 million (RMB50.0 million). These loans are guaranteed by 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 December 31, 2018, approximately $7.3 million was unused and available under this line of credit.

In August 2018, Ever-Glory Apparel entered into a line of credit agreement for approximately $8.7 million (RMB60.0 million) with Nanjing Bank and guaranteed by Jiangsu Ever-Glory, Mr. Kang and Goldenway. As of December 31, 2018, Ever-Glory Apparel had borrowed $2.9 million (RMB20.0 million) from Nanjing Bank with an annual interest rates 4.41% and due on various dates from January to March 2019. As of December 31, 2018, approximately $5.8 million was unused and available under this line of credit.

In May 2018, LA GO GO entered into a revolving line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $2.9 million (RMB20.0 million). The line of credit is guaranteed by Mr. Kang and Goldenway. As of December 31, 2018, LA GO GO had borrowed $2.2 million (RMB15.0 million) under this line of credit with an annual interest rate of 5.22% and due in June 2019. As of December 31, 2018, approximately $0.7 million was unused and available under this line of credit.

In June 2018, LA GO GO entered into a line of credit agreement for approximately $2.9 million (RMB20.0 million) with China Minsheng Bank and guaranteed by Ever-Glory Apparel and Mr. Kang. As of December 31, 2018, LA GO GO had borrowed $2.9 million (RMB20.0 million) from China Minsheng Bank with an annual interest rate of 4.79% and due in June 2019.  

In November 2018, LA GO GO entered into a line of credit agreement for approximately $2.9 million (RMB20.0 million) with the Bank of Communications and guaranteed by Jiangsu Ever-Glory, Ever-Glory Apparel and Jiangsu LAGOGO. As of December 31, 2018, LA GO GO had borrowed $2.9 million (RMB20.0 million) from the Bank of Communications with an annual interest rate 4.57% and due on variable dates from January to November 2019.

In July 2018, Ever-Glory Apparel entered into a line of credit agreement for approximately $2.9 million (RMB20.0 million) with the Shanghai Pudong Development Bank and guaranteed by Goldenway. As of December 31, 2018, Ever-Glory Apparel had borrowed $2.6 million (RMB18.0 million) from the Bank of Communications with an annual interest rate 4.57% and due on date November 2019. As of September 30, 2018, approximately $0.3 million was unused and available under this line of credit.

In July 2017, Ever-Glory Apparel entered into a line of credit agreement for approximately $5.8 million (RMB40.0 million) with China Everbright Bank and guaranteed by Goldenway and Mr. Kang. These loans are also collateralized by Jiangsu Ever-Glory’s property. As of December 31, 2018, Ever-Glory Apparel had borrowed $1.5 million (RMB10.0 million) from the Bank of Communications with an annual interest rate 4.57% and due on date April 2019. As of December 31, 2018, approximately $4.3 million was unused and available under this line of credit.

All bank loans are used to fund our daily operations. All loans have been repaid before or at maturity date.

Total interest expense on bank loans amounted to $1.99 million and $1.65 million for the year ended December 31, 2018 and 2017, respectively.

The annual average interest rate of bank loans was 4.59% and 4.92% for the year ended December 31, 2018 and 2017, respectively.