| BANK LOANS |
NOTE 11 – 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 June 30, 2016 and December 31, 2015, short-term bank loans consisted of the following:
| |
|
June 30,
2016 |
|
|
December 31, 2015 |
|
| Loan from China Development Bank, due on February 11, 2016 with variable annual interest rate based on London Interbank Offered Rate (“LIBOR”)(1) plus 245 basis points (3.395% at December 31, 2015), guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke and repaid on due date |
|
$ |
- |
|
|
$ |
7,000,000 |
|
| |
|
|
|
|
|
|
|
|
| Loan from China Development Bank, due on November 25, 2016 with variable annual interest rate based on LIBOR(1) plus 230 basis points (2.941% at June 30, 2016 and December 31, 2015), secured by the Company’s restricted cash which is a deposit with the lender of approximately $0.8 million (RMB 5.12 million) and collateralized by a related party’s land use right |
|
|
4,000,000 |
|
|
|
4,000,000 |
|
| |
|
|
|
|
|
|
|
|
| Loan from China Development Bank, due on December 9, 2016 with variable annual interest rate based on LIBOR(1) plus 230 basis points (3.049% at June 30, 2016 and December 31, 2015), secured by the Company’s restricted cash which is a deposit with the lender of approximately $0.8 million (RMB 5.12 million) and collateralized by a related party’s land use right |
|
|
4,000,000 |
|
|
|
4,000,000 |
|
| |
|
|
|
|
|
|
|
|
| Loan from Fujian Haixia Bank, due on September 7, 2016 with annual interest rate of 7.360% at June 30, 2016 and December 31, 2015, collateralized by Pingtan Fishing's 17 fishing vessels |
|
|
4,515,760 |
|
|
|
4,621,998 |
|
| |
|
|
|
|
|
|
|
|
| Loan from Fujian Haixia Bank, due on September 20, 2016 with annual interest rate of 1.621% at June 30, 2016 and December 31, 2015, collateralized by Pingtan Fishing’s 17 fishing vessels |
|
|
2,349,440 |
|
|
|
2,349,440 |
|
| |
|
|
|
|
|
|
|
|
Loan from China Development Bank, due on March 21, 2017 with variable annual interest rate based on LIBOR(1) plus 230 basis points (3.211% at June 30, 2016), secured by the Company’s restricted cash which is a deposit with the lender of approximately $0.6 million (RMB 4 million) and collateralized by a related party’s land use right |
|
|
3,000,000 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
Loan from China Development Bank, due on April 18, 2017 with variable annual interest rate based on LIBOR(1) plus 230 basis points (3.204% at June 30, 2016), secured by the Company’s restricted cash which is a deposit with the lender of approximately $0.6 million (RMB 4 million) and collateralized by a related party’s land use right |
|
|
3,000,000 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
Loan from China Development Bank, due on April 18, 2017 with variable annual interest rate based on LIBOR(1) plus 230 basis points (3.257% at June 30, 2016), secured by the Company’s restricted cash which is a deposit with the lender of approximately $0.3 million (RMB 2 million) and collateralized by a related party’s land use right |
|
|
1,500,000 |
|
|
|
- |
|
| |
|
$ |
22,365,200 |
|
|
$ |
21,971,438 |
|
|
(1) |
Represents six-month LIBOR rate on the loan commencement date. |
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 June 30, 2016 and December 31, 2015, long-term bank loans consisted of the following:
| |
|
June 30,
2016 |
|
|
December 31, 2015 |
|
| Loan from The
Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 4.750% at June 30, 2016 and December 31, 2015, collateralized by Hong Long's investment in equity interest of a China local bank |
|
$ |
8,835,837 |
|
|
$ |
11,832,314 |
|
| |
|
|
|
|
|
|
|
|
| Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 4.750% at June 30, 2016 and December 31, 2015, collateralized by Fujian International Trading and Transportation Co., Ltd.'s investment in equity interest of a China local bank |
|
|
1,731,041 |
|
|
|
2,310,999 |
|
| |
|
|
|
|
|
|
|
|
| Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 4.750% at June 30, 2016 and December 31, 2015, guaranteed by Hong Long |
|
|
7,330,584 |
|
|
|
9,937,295 |
|
| |
|
|
|
|
|
|
|
|
| Loan from The Export-Import Bank of China, due on various dates until January 30, 2023 with annual interest rate of 4.900% at June 30, 2016, guaranteed by Huanghai Ship Construction Co., Ltd, Xinrong Zhuo and Ping Lin and collateralized by 2 fishing vessels under construction |
|
|
18,815,667 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Loan from China Development Bank, due on various dates until November 27, 2023 with annual interest rate of 5.145% at June 30, 2016 and December 31, 2015, guaranteed by Xinrong Zhuo, Honghong Zhuo, Mr. and Mrs. Zhiyan Lin and 6 fishing vessels |
|
|
10,386,248 |
|
|
|
11,169,827 |
|
| Total long-term bank loans |
|
$ |
47,099,377 |
|
|
$ |
35,250,435 |
|
| Less: current portion |
|
|
(15,157,901 |
) |
|
|
(12,679,680 |
) |
| Long-term bank loans, non-current portion |
|
$ |
31,941,476 |
|
|
$ |
22,570,755 |
|
The future maturities of long-term bank loans are as follows:
| Due in twelve-month periods ending June 30, |
|
Principal |
|
| 2017 |
|
$ |
15,157,901 |
|
| 2018 |
|
|
12,072,132 |
|
| 2019 |
|
|
5,870,488 |
|
| 2020 |
|
|
6,021,013 |
|
| 2021 |
|
|
2,257,880 |
|
| Thereafter |
|
|
5,719,963 |
|
| |
|
$ |
47,099,377 |
|
| Less: current portion |
|
|
(15,157,901 |
) |
| Long-term liability |
|
$ |
31,941,476 |
|
The weighted average interest rate for short-term bank loans was approximately 4.8% and 2.8% for the six months ended June 30, 2016 and 2015, respectively.
The weighted average interest rate for long-term bank loans was approximately 5.3% and 6.0% for the six months ended June 30, 2016 and 2015, respectively.
For the three months ended June 30, 2016 and 2015, interest expense related to bank loans amounted to $699,084 and $1,085,551, respectively, of which, $303,226 and $0 was capitalized to construction-in-progress, respectively. For the six months ended June 30, 2016 and 2015, interest expense related to bank loans amounted to $1,334,829 and $2,039,195, respectively, of which, $416,705 and $0 was capitalized to construction-in-progress, respectively.
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