Bank Loans |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 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 September 30, 2022 and December 31, 2021.
From March 2020 to July 2020, Ever-Glory Apparel entered into a certificate of three-year time deposit of approximately $26.8 million (RMB190.0 million) with the Shanghai Pudong Development Bank with annual interest rates ranging from 3.75% to 3.99%. As of September 30, 2022, Ever-Glory Apparel pledged the certificate of three-year time deposit to the Shanghai Pudong Development Bank, and Ever-Glory Apparel had borrowed approximately $23.9 million (RMB 170.0 million) under this line of certificate with an annual interest rate from 1.50% to 2.65% and due between October 2022 to July 2023.
In December 2020, Goldenway entered into a certificate of three-year time deposit of approximately $15.5 million (RMB110.0 million) with the Shanghai Pudong Development Bank with an annual interest rate of 3.85%. As of September 30,2022, Goldenway pledged the certificate of three-year time deposit to the Shanghai Pudong Development Bank, and Goldenway had borrowed approximately $15.5 million (RMB110.0 million) under this line of certificate with annual interest rate from 1.85% to 2.60%, due between February to April 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 $5.6 million (RMB40.0 million). These loans are collateralized by the Company’s property and equipment. As of September 30, 2022, Goldenway had borrowed approximately $5.6 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 $14.1 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 September 30, 2022, Ever-Glory Apparel had borrowed approximately $14.1 million (RMB 100.0 million) under this line of credit with annual interest rates ranging from 4.15% to 4.35% and due between October 2022 to June 2023.
In April 2020, Goldenway entered into a line of credit agreement with Nanjing Bank, which allows the Company to borrow up to approximately $6.3 million (RMB45.0 million). In September 2022, Goldenway pledged $0.3 million (RMB2.0 million) to Nanjing Bank. These loans are collateralized by the Company’s property and equipment and guaranteed by Jiangsu Ever-Glory. In September 2022, Goldenway borrowed approximately $1.4 million (RMB 10.0 million) with an annual interest rate 1.79% and due in August 2023. As of September 30, 2022, approximately $5.2 million (RMB 37.0 million) was unused and available under this line of credit.
In July 2022, Catch-Luck entered into a line of credit agreement with Bank of China, which allows the Company to borrow up to approximately $1.4 million (RMB10.0 million). These loans are guaranteed by the Company’s credit. In July 2022, Goldenway borrowed approximately $1.4 million (RMB 10.0 million) with an annual interest rate 3.65% and due in July 2023.
In August 2022, Goldenway entered into a line of credit agreement with Bank of China, which allows the Company to borrow up to approximately $1.4 million (RMB10.0 million). These loans are guaranteed by the Company’s credit. In August 2022, Goldenway borrowed approximately $1.4 million (RMB 10.0 million) with an annual interest rate 3.65% and due in August 2023.
All bank loans are used to fund our daily operations. There were no loans in default as of September 30, 2022.
Total interest expense on bank loans amounted to approximately $1.5 million and $1.9 million for the nine months ended September 30, 2022 and 2021, respectively, and approximately $0.6 million and $1.2 million for the three months ended September 30, 2022 and 2021, respectively. |
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