Bank Loans

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

BANK LOANS

NOTE 8 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, 2021, and 2020.

	December 31, 2021		December 31, 2020
Bank	(In thousands of U.S. Dollars)
Shanghai Pudong Development Bank	$	39,200	$	42,157
Industrial and Commercial Bank of China		21,952		21,462
Nanjing Bank		7,840		2,300
	$	68,992	$	65,919

From March 2020 to July 2020, Ever-Glory Apparel entered into a certificate of three-year time deposit of $29.8million (RMB190.0 million) with the Shanghai Pudong Development Bank with annual interest rates ranging from 3.75% to 3.99%. From July to November 2021, Ever-Glory Apparel pledged the certificate of three-year time deposit to the Shanghai Pudong Development Bank and Ever-Glory Apparel had borrowed $29.8 million (RMB 190.0 million) under this line of certificate with an annual interest rate from 2.60% to 2.90% and due between June to November 2022.

In December 2020, Goldenway entered into a certificate of three-year time deposit of $17.2 million (RMB110.0 million) with the Shanghai Pudong Development Bank with an annual interest rate of 3.85%. From February to July 2021, Goldenway pledged the certificate of three-year time deposit to the Shanghai Pudong Development Bank and Goldenway had borrowed $9.4 million (RMB 60.0 million) under this line of certificate with an annual interest rate from 2.90% to3.40% and due between February to June 2022.

In April 2020, Goldenway entered into a line of credit agreement with Industrial and Commercial Bank of China, which allows the Company to borrow up to approximately $6.3 million (RMB40.0 million). These loans are collateralized by the Company’s property and equipment. As of December 31, 2021, Goldenway had borrowed $6.3 million (RMB40.0 million) from Industrial and Commercial Bank of China with an annual interest rate 4.57% and due in August 2022.

In July 2019, Ever-Glory Apparel entered into a line of credit agreement for approximately $15.7 million (RMB100.0 million) with Industrial and Commercial Bank of China, which is collateralized by assets of Jiangsu LA GO GO, Tianjin LA GO GO and Jiangsu Ever-Glory, under a collateral agreement executed among Ever-Glory Apparel, Jiangsu LA GO GO , Tianjin LA GO GO, Jiangsu Ever-Glory and the bank. As of December 31, 2021, Ever-Glory Apparel had borrowed $15.7 million (RMB 100.0 million) under this line of credit with annual interest rates ranging from 3.92% to 4.35% and due between January to October 2022.

In April 2020, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $7.1 million (RMB45.0 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, 2021, approximately $7.1 million was unused and available under this line of credit.

In June 2021, Goldenway entered into a margin contract with Nanjing Bank. Goldenway had borrowed $4.7 million (RMB 30.0 million) under this contract for $0.9 million (RMB 6.0 million) was restricted with an annual interest rate 3.36% and due in June 2022. In September 2021, Goldenway entered into another margin contract with Nanjing Bank. Goldenway had borrowed $3.1 million (RMB 20.0 million) under this contract for $0.6 million (RMB 4.0 million) was restricted with an annual interest rate 3.44% and due in September 2022.

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 $2.39 million and $2.34 million for the years ended December 31, 2021 and 2020, respectively.

The annual average interest rate of bank loans was 3.38% and 3.60% for the years ended December 31, 2021 and 2020, respectively.