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Bank Loans
3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
BANK LOANS

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. Short term bank loans consisted of the following as of March 31, 2020 and December 31, 2019.

 

   March 31,
2020
   December 31,
2019
 
Bank  (In thousands of
U.S. Dollars)
 
Industrial and Commercial Bank of China  $19,754   $18,629 
Nanjing Bank   3,528    6,449 
China Minsheng Bank   2,822    2,866 
Bank of Communications   -    1,426 
HSBC   -    561 
   $26,104   $29,931 

 

In December 2019, Goldenway entered into a line of credit agreement with Industrial and Commercial Bank of China, which allows the Company to borrow up to approximately $5.6 million (RMB40.0 million). These loans are collateralized by the Company's property and equipment. As of March 31, 2020, Goldenway had borrowed $5.6 million (RMB40.0 million) from Industrial and Commercial Bank of China with an annual interest rate 4.57% and due on August 2020.

 

In November 2018, Ever-Glory Apparel entered into a line of credit agreement for approximately $14.1 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 March 31, 2020, Ever-Glory Apparel had borrowed $14.1 million (RMB 100.0 million) under this line of credit with annual interest rates ranging from 3.92% to 4.7% and due on from May 2020 to March 2021.

  

In August 2018, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $7.1 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 March 31, 2020, approximately $7.1 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 $8.5 million (RMB60.0 million) with Nanjing Bank and guaranteed by Jiangsu Ever-Glory, Mr. Kang and Goldenway. As of March 31, 2020, Ever-Glory Apparel had borrowed $1.4 million (RMB10.0 million) from Nanjing Bank with an annual interest rate 5.0% and due on June 2020. As of March 31, 2020, approximately $7.1 million was unused and available under this line of credit.

 

In June 2019, LA GO GO entered into a revolving line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $2.8 million (RMB20.0 million). The line of credit is guaranteed by Mr. Kang and Goldenway. As of March 31, 2020, LA GO GO had borrowed $2.1 million (RMB15.0 million) under this line of credit with an annual interest rate of 5.22% and due in June 2020. As of March 31, 2020, 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 $2.8 million (RMB20.0 million) with China Minsheng Bank and guaranteed by Ever-Glory Apparel and Mr. Kang. As of March 31, 2020, LA GO GO had borrowed $2.8 million (RMB20.0 million) from China Minsheng Bank with an annual interest rate of 5.0% and due in November 2020.  

  

In September 2019, LA GO GO entered into a line of credit agreement for approximately $2.8 million (RMB20.0 million) with the Bank of Communications and guaranteed by Jiangsu Ever-Glory, Ever-Glory Apparel and Jiangsu LAGOGO. As of March 31, 2020, approximately $2.8 million was unused and available under this line of credit.

 

In September 2019, Ever-Glory Apparel entered into a line of credit agreement for approximately $5.6 million (RMB40.0 million) with the Shanghai Pudong Development Bank and guaranteed by Goldenway. As of March 31, 2020, approximately $5.6 million was unused and available under this line of credit.

 

In August 2019, Ever-Glory Apparel and Goldenway 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 $2.5 million with the Nanjing Branch of HSBC (China) Company Limited ("HSBC"). This agreement is guaranteed by the Company and Mr. Kang. As of March 31, 2020, approximately $2.5 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 $0.3 million and $0.4 million for the three months ended March 31, 2020 and 2019, respectively.