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 maturity. The Company is in compliance with
all debt covenants. At September 30, 2021 and December 31, 2020, short-term bank loans consisted of the following:
|
|
September 30, 2021 |
|
|
December 31, 2020 |
|
|
|
(Unaudited) |
|
|
|
|
Loan from The Export-Import Bank of China, due on January 21, 2021 with annual interest rate of 3.88% at December 31, 2020, guaranteed by Pin Lin, Xinrong Zhuo and Hong Long, pledged deposits provided by Hong Long amounted to RMB 42 million, the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. |
|
$ |
- |
|
|
$ |
41,686,462 |
|
Loan from Fujian Haixia Bank, due on October 29, 2021 with annual interest rate of 6.09% at September 30, 2021 and December 31, 2020, collateralized by Hong Long’s 5 fishing vessels, the Company’s 1 fishing vessel 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%. |
|
|
10,793,475 |
|
|
|
10,728,134 |
|
Loan from Fujian Haixia Bank, due on January 19, 2022 with annual interest rate of 6.09% at September 30, 2021, guaranteed by Pin Lin, Xinrong Zhuo, Longxiong Zhuo, Longjie Zhuo, Longhao Zhuo and Hong Long, collateralized by three land use rights of old city reconstruction plots west of Baima Road, Gulou District, east of Liuhe Road, north of Daoshan Road, the debt ratio of borrower should not be higher than or equal to 80%. |
|
|
29,296,574 |
|
|
|
- |
|
Loan from Fujian Haixia Bank, due on January 20, 2022 with annual interest rate of 6.09% at September 30, 2021, guaranteed by Pin Lin, Xinrong Zhuo, Longxiong Zhuo, Longjie Zhuo, Longhao Zhuo and Hong Long, collateralized by three land use rights of old city reconstruction plots west of Baima Road, Gulou District, east of Liuhe Road, north of Daoshan Road, the debt ratio of borrower should not be higher than or equal to 80%. |
|
|
15,419,250 |
|
|
|
- |
|
|
|
$ |
55,509,299 |
|
|
$ |
52,414,596 |
|
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. The Company
is in compliance with all long-term bank loan covenants. At September 30, 2021 and December 31, 2020, long-term bank loans consisted of
the following:
|
|
September 30,
2021 |
|
|
December 31, 2020 |
|
|
|
(Unaudited) |
|
|
|
|
Loan from The Export-Import Bank of China, due on various dates until January 30, 2023 with annual interest rate of 4.90% at September 30, 2021 and December 31, 2020, 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. |
|
$ |
2,312,887 |
|
|
$ |
2,298,886 |
|
Loan from China Development Bank, due on various dates until November 27, 2023 with annual interest rate of 5.15% at September 30, 2021 and December 31, 2020, 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%. |
|
|
3,546,427 |
|
|
|
4,291,254 |
|
Loan from The Export-Import Bank of China, due on various dates until March 28, 2025 with annual interest rate of 4.95% at September 30, 2021 and December 31, 2020, guaranteed by Hong Long, Xinrong Zhuo, Ping Lin and collateralized by 20 fishing vessels. |
|
|
46,257,748 |
|
|
|
58,238,440 |
|
Loan from The Export-Import Bank of China, due on various dates until August 21, 2026 with annual interest rate of 4.70% at September 30, 2021 and December 31, 2020, 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. |
|
|
48,570,636 |
|
|
|
57,931,922 |
|
Loan from The Export-Import Bank of China, due on various dates until October 21, 2025 with annual interest rate of 4.70% at September 30, 2021 and December 31, 2020, guaranteed by Pin Lin, Xinrong Zhuo, Yaohua Zhuo and Hong Long, 15 fishing vessels and 1 transport vessel, the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. |
|
|
45,101,304 |
|
|
|
49,809,192 |
|
Loan from China Development Bank, due on various dates until July 30, 2026 with annual interest rate of 5.39% at September 30, 2021 and December 31, 2020, guaranteed by Xinrong Zhuo, 11 fishing vessels and 6 Hong Long’s fishing vessels, real estate of Mingguang Wanhao Property co., LTD., totalled area 22,123.50m2, the debt ratio of borrower should not be higher than 80%. |
|
|
9,482,838 |
|
|
|
10,383,301 |
|
Loan from The Export-Import Bank of China, due on various dates until April 21, 2028 with annual interest rate of 4.65% at September 30, 2021 and December 31, 2020, guaranteed by Pin Lin, Xinrong Zhuo, Yaohua Zhuo, Hong Long and Huanghai Shipbuilding Co., Ltd., the Land Use Right of B2 plot in central business district on the north shore of Minjiang river, 1 vessel. |
|
|
20,045,024 |
|
|
|
19,923,677 |
|
Loan from The Export-Import Bank of China, due on various dates until December 21, 2028 with annual interest rate of 4.65% at September 30, 2021 and December 31, 2020, guaranteed by Pin Lin, Xinrong Zhuo, Yaohua Zhuo, Hong Long and Huanghai Shipbuilding Co., Ltd., the Land Use Right of B2 plot in central business district on the north shore of Minjiang river, 1 vessel. |
|
|
21,586,949 |
|
|
|
21,456,268 |
|
Loan from The Export-Import Bank of China, due on various dates until January 15, 2023 with annual interest rate of 4.00% at September 30, 2021, guaranteed by Pin Lin, Xinrong Zhuo and Hong Long, and collateralized by two related parties’ investments in equity interest of one PRC local banks. |
|
|
25,006,939 |
|
|
|
- |
|
Loan from The Export-Import Bank of China, due on various dates until August 21, 2022 with annual interest rate of 2.20% at September 30, 2021 and December 31, 2020, guaranteed by Hong Long, Xinrong Zhuo and Pin Lin. |
|
|
20,450,317 |
|
|
|
21,000,000 |
|
Loan from The Export-Import Bank of China, due on various dates until February 21, 2023 with annual interest rate of 2.20% at September 30, 2021, guaranteed by Hong Long, Xinrong Zhuo and Pin Lin and collateralized by two related parties’ investments in equity interest of one PRC local banks and the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. |
|
|
10,875,630 |
|
|
|
- |
|
Loan from The Export-Import Bank of China, due on various dates until June 21, 2028 with annual interest rate of 2.20% at September 30, 2021, guaranteed by Lin Lin, Xinrong Zhuo, Yaohua Zhuo, Hong Long and Huanghai Shipbuilding Co., Ltd., the Land Use Right of B2 plot in central business district on the north shore of Minjiang river. |
|
|
21,741,142 |
|
|
|
- |
|
Loan from The Export-Import Bank of China, due on various dates until July 1, 2023 with annual interest rate of 2.20% at September 30, 2021, guaranteed by Pin Lin, Xinrong Zhuo and Hong Long, pledged deposits provided by Hong Long amounted to RMB 42 million, the Land Use Right of B2 plot in central business district on the north shore of Minjiang river and Fuzhou Honglong Marine Aquatic Products Co., Ltd. and 67 million and 16 million shares of Xiamen International Bank Co., Ltd. owned by Hong Long and Fujian International Trade and Transportation Co., Ltd., respectively. |
|
|
9,589,808 |
|
|
|
- |
|
Loan from Bank of Communications, due on various dates until June 27, 2025 with annual interest rate of 4.65% at September 30, 2021 and December 31, 2020, guaranteed by Xinrong Zhuo, Huanghai Shipbuilding Co., Ltd. and Fujian Jingfu Ocean Fishery Development Co., Ltd. |
|
|
36,235,237 |
|
|
|
39,770,725 |
|
Total long-term bank loans |
|
$ |
320,802,886 |
|
|
$ |
285,103,665 |
|
Less: current
portion |
|
|
(70,676,635 |
) |
|
|
(39,987,577 |
) |
Long-term bank
loans, non-current portion |
|
$ |
250,126,251 |
|
|
$ |
245,116,088 |
|
The future maturities of long-term bank loans are as follows:
Due in twelve-month periods ending September 30, |
|
Principal |
|
2022 |
|
$ |
70,676,635 |
|
2023 |
|
|
107,035,617 |
|
2024 |
|
|
64,491,011 |
|
2025 |
|
|
56,087,520 |
|
2026 |
|
|
16,498,597 |
|
Thereafter |
|
|
6,013,506 |
|
|
|
$ |
320,802,886 |
|
Less: current portion |
|
|
(70,676,635 |
) |
Long-term liability |
|
$ |
250,126,251 |
|
The weighted average interest rate for short-term
bank loans was approximately 6.0% and 4.0% for the nine months ended September 30, 2021 and 2020, respectively.
The weighted average interest rate for long-term
bank loans was approximately 4.3% and 4.8% for the nine months ended September 30, 2021 and 2020, respectively.
For the three months ended September 30, 2021
and 2020, interest expense related to bank loans amounted to $4,055,798 and $4,220,271, respectively, of which, nil and $183,747 was capitalized
to construction-in-progress, respectively. For the nine months ended September 30, 2021 and 2020, interest expense related to bank loans
amounted to $11,720,712 and $11,064,621, respectively, of which nil and $1,192,672 was capitalized to construction-in-progress, respectively.
|