BANK LOANS |
NOTE 9 – BANK LOANS
Short-term bank loans
Short-term bank loans represent the amounts
due to various banks that are due within one year. These loans can be renewed with the banks upon maturities. At September 30,
2019 and December 31, 2018, short-term bank loans consisted of the following:
|
|
September 30, 2019 |
|
|
December 31, 2018 |
|
Loan from Fujian Haixia Bank, due on November 14, 2019 with annual interest rate of 4.2870% at September 30, 2019, collateralized by Hong Long's 5 fishing vessels and 7 real estate properties of Ping Lin and Ying Liu |
|
$ |
714,000 |
|
|
$ |
714,000 |
|
Loan from Fujian Haixia Bank, due on November 4, 2019 with annual interest rate of 6.9600% at September 30, 2019, collateralized by Hong Long's 5 fishing vessels and 7 real estate properties of Ping Lin and Ying Liu, the debt ratio of borrower should not be higher than or equal to 100% |
|
|
4,241,542 |
|
|
|
4,371,139 |
|
|
|
$ |
4,955,542 |
|
|
$ |
5,085,139 |
|
Long-term bank loans
Long-term bank loans represent the amounts
due to various banks lasting over one year. Usually, the long-term bank loans cannot be renewed with these banks upon maturities.
At September 30, 2019 and December 31, 2018, long-term bank loans consisted of the following:
|
|
September 30, 2019 |
|
|
December 31, 2018 |
|
Loan from The Export-Import Bank of China, due on various dates until August 28, 2020 with annual interest rate of 4.750% at September 30, 2019, guaranteed by Hong Long, Xinrong Zhuo and Ping Lin. |
|
$ |
7,776,160 |
|
|
$ |
- |
|
Loan from The Export-Import Bank of China, due on various dates until January 30, 2023 with annual interest rate of 4.900% at September 30, 2019 and December 31, 2018, guaranteed by Xinrong Zhuo and Ping Lin and collateralized by 2 fishing vessels and collateralized by two related parties' investments in equity interest of one PRC local banks. |
|
|
7,069,236 |
|
|
|
9,470,801 |
|
Loan from China Development Bank, due on various dates until November 27, 2023 with annual interest rate of 5.145% at September 30, 2019 and December 31, 2018, guaranteed by Xinrong Zhuo, Honghong Zhuo, Mr. and Mrs. Zhiyan Lin and 17 fishing vessels, the debt ratio of borrower should not be higher than 80% |
|
|
6,079,543 |
|
|
|
6,920,970 |
|
Loan from The Export-Import Bank of China, due on various dates until March 28, 2025 with annual interest rate of 4.949% at September 30, 2019 and December 31, 2018, guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by 20 fishing vessels. |
|
|
65,036,972 |
|
|
|
- |
|
Loan from The Export-Import Bank of China, due on various dates until September 30, 2020 with annual interest rate of 4.750% at September 30, 2019, guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by equity investment of 67 million shares of Honglong in Xiamen International Bank. |
|
|
16,259,243 |
|
|
|
- |
|
Loan from The Export-Import Bank of China, due on various dates until August 21, 2026 with annual interest rate of 4.700% at September 30, 2019, guaranteed by Pin Lin, Xinrong Zhuo and Yaohua Zhuo, 15 fishing vessels, the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. |
|
|
62,350,663 |
|
|
|
- |
|
Loan from China Development Bank, due on various dates until July 30, 2026 with annual interest rate of 5.390% at September 30, 2019, guaranteed by Xinrong Zhuo, 11 fishing vessels and 6 Honglong's fishing vessels, real estate of Mingguang Wanhao Property co., LTD., totaled area 22,123.50m2, the debt ratio of borrower should not be higher than 80% |
|
|
12,229,778 |
|
|
|
14,424,758 |
|
Total long-term bank loans |
|
$ |
176,801,595 |
|
|
$ |
30,816,529 |
|
Less: current portion |
|
|
(51,676,116 |
) |
|
|
(8,487,295 |
) |
Long-term bank loans, non-current portion |
|
$ |
125,125,479 |
|
|
$ |
22,329,234 |
|
The future maturities of long-term bank loans
are as follows:
Due in twelve-month periods ending September 30, |
|
Principal |
|
2020 |
|
$ |
51,676,116 |
|
2021 |
|
|
24,106,095 |
|
2022 |
|
|
23,540,556 |
|
2023 |
|
|
25,661,327 |
|
2024 |
|
|
24,247,480 |
|
Thereafter |
|
|
27,570,021 |
|
|
|
$ |
176,801,595 |
|
Less: current portion |
|
|
(51,676,116 |
) |
Long-term liability |
|
$ |
125,125,479 |
|
The weighted average interest rate for
short-term bank loans was approximately 6.6% and 5.4% for the nine months ended September 30, 2019 and 2018, respectively.
The weighted average interest rate for
long-term bank loans was approximately 4.9% and 5.1% for the nine months ended September 30, 2019 and 2018, respectively.
For the three months ended September 30, 2019
and 2018, interest expense related to bank loans amounted to $2,328,884 and $629,890, respectively, of which, $213,514 and $367,917
was capitalized to construction-in-progress, respectively. For the nine months ended September 30, 2019 and 2018, interest expense
related to bank loans amounted to $4,012,965 and $1,488,332, respectively, of which, $321,333 and $568,790 was capitalized to construction-in-progress,
respectively.
|