Bank Loans

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

BANK LOANS

NOTE 6 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, 2022 and December 31, 2021.

	March 31, 2022		December 31, 2021
Bank	(In thousands of U.S. Dollars)
Shanghai Pudong Development Bank	$	40,950	$	39,200
Industrial and Commercial Bank of China		20,475		21,952
Nanjing Bank		7,875		7,840
	$	69,300	$	68,992

From March 2020 to July 2020, Ever-Glory Apparel entered into a certificate of three-year time deposit of $29.9 million (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 $29.9 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 $17.3 million (RMB110.0 million) with the Shanghai Pudong Development Bank with an annual interest rate of 3.85%. From July 2021 to February 2022, Goldenway pledged the certificate of three-year time deposit to the Shanghai Pudong Development Bank and Goldenway had borrowed $11.0 million (RMB 70.0 million) under this line of certificate with annual interest rate from 2.60% to 2.90%, due between June 2022 and February 2023.

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 March 31, 2022, 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 August 2019, Ever-Glory Apparel entered into a line of credit agreement for approximately $15.8 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 International Group Corp. (“Jiangsu Ever-Glory”), an entity controlled by Mr. Kang, the Company’s Chairman and Chief Executive Officer, 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 March 31, 2022, Ever-Glory Apparel had borrowed $14.2 million (RMB 90.0 million) under this line of credit with annual interest rates ranging from 3.92% to 4.35% and due between May to October 2022.As of March 31, 2022, approximately $1.6 (RMB 10.0 million) million was unused and available under this line of credit.

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). In May 2021,Goldenway pledged $1.6 million (RMB10.0 million) to Nanjing Bank, and the maximum amount available from this line of credit increased to $8.7 million (RMB55.0 million).These loans are collateralized by the Company’s property and equipment and guaranteed by Jiangsu Ever-Glory. In June 2021, Goldenway borrowed $4.7 million (RMB 30.0 million) with an annual interest rate 3.36% and due in June 2022. In September 2021, Goldenway borrowed $3.2 million (RMB 20.0 million) with an annual interest rate 3.44% and due in September 2022. As of March 31, 2022, approximately $0.8 million (RMB 5.0 million) was unused and available under this line of credit. 

All bank loans are used to fund our daily operations. There were no loans in default as of March 31, 2022.

Total interest expense on bank loans amounted to $0.6 million and $0.5 million for the three months ended March 31, 2022 and 2021, respectively.