| BANK LOANS |
NOTE
10 – 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, 2019 and December 31, 2018, short-term bank loans consisted of the following:
| |
|
June 30,
2019 |
|
|
December 31,
2018 |
|
| Loan from Fujian Haixia Bank, due on November
14, 2019 with annual interest rate of 4.2870% at June 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 June 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% |
|
|
4,363,827 |
|
|
|
4,371,139 |
|
| |
|
$ |
5,077,827 |
|
|
$ |
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 June 30, 2019 and December 31, 2018, long-term bank loans consisted of the following:
| |
|
June 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 June 30, 2019, guaranteed by Hong Long,
Xinrong Zhuo and Ping Lin. |
|
$ |
8,727,654 |
|
|
$ |
- |
|
| 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, 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. |
|
|
7,273,045 |
|
|
|
9,470,801 |
|
| Loan from China Development Bank, due on various dates
until November 27, 2023 with annual interest rate of 5.145% at June 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% |
|
|
6,254,818 |
|
|
|
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 June 30, 2019 and December 31, 2018, guaranteed
by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by 20 fishing vessels. |
|
|
72,730,446 |
|
|
|
- |
|
| Loan from The Export-Import Bank of China, due on
various dates until September 30, 2020 with annual interest rate of 4.750% at June 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.
. |
|
|
17,455,307 |
|
|
|
- |
|
| Loan
from China Development Bank, due on various dates until July 30, 2026 with annual interest rate of 5.390% at June 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% |
|
|
12,582,367 |
|
|
|
14,424,758 |
|
| Total long-term bank loans |
|
$ |
125,023,637 |
|
|
$ |
30,816,529 |
|
| Less: current portion |
|
|
(22,182,786 |
) |
|
|
(8,487,295 |
) |
| Long-term bank loans, non-current
portion |
|
$ |
102,840,851 |
|
|
$ |
22,329,234 |
|
The
future maturities of long-term bank loans are as follows:
| Due in twelve-month periods ending June 30, |
|
Principal |
|
| 2020 |
|
$ |
22,182,786 |
|
| 2021 |
|
|
38,910,789 |
|
| 2022 |
|
|
15,055,202 |
|
| 2023 |
|
|
16,509,811 |
|
| 2024 |
|
|
15,782,507 |
|
| Thereafter |
|
|
16,582,542 |
|
| |
|
$ |
125,023,637 |
|
| Less: current portion |
|
|
(22,182,786 |
) |
| Long-term liability |
|
$ |
102,840,851 |
|
Long-term
bank loans (continued)
The
weighted average interest rate for short-term bank loans was approximately 6.6% and 5.3% for the six months ended June 30, 2019
and 2018, respectively.
The
weighted average interest rate for long-term bank loans was approximately 5.0% and 5.1% for the six months ended June 30, 2019
and 2018, respectively.
For
the three months ended June 30, 2019 and 2018, interest expense related to bank loans amounted to $1,684,081 and $396,183, respectively,
of which, $163,934 and $200,873 was capitalized to construction-in-progress, respectively. For the six months ended June 30, 2019
and 2018, interest expense related to bank loans amounted to $2,235,066 and $858,442, respectively, of which, $185,753 and $200,873
was capitalized to construction-in-progress, respectively.
|