Quarterly report pursuant to Section 13 or 15(d)

BANK LOANS

v2.4.0.8
BANK LOANS
9 Months Ended
Sep. 30, 2014
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]
NOTE 12 – 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 bank upon maturity. At September 30, 2014 and December 31, 2013, short-term bank loans consisted of the following:
  
 
 
September 30,
 
December 31,
 
 
 
2014
 
2013
 
 
 
 
 
(As Restated)
 
Loan from China Development Bank, due on October 17, 2014 with annual interest rate of 2.770% at September 30, 2014, guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke and repaid on due date
 
$
4,482,960
 
$
-
 
Loan from China Development Bank, due on November 3, 2014 with annual interest rate of 2.773% at September 30, 2014, guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke and repaid on due date
 
 
1,513,990
 
 
-
 
Loan from China Development Bank, due on November 14, 2014 with annual interest rate of 2.774% at September 30, 2014, guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke
 
 
3,881,430
 
 
-
 
Loan from China Development Bank, due on December 7, 2014 with annual interest rate of 2.771% at September 30, 2014, guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke
 
 
5,974,741
 
 
-
 
Loan from China Development Bank, due on December 14, 2014 with annual interest rate of 2.776% at September 30, 2014, guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke
 
 
5,105,000
 
 
-
 
Loan from China Development Bank, due on December 31, 2014 with annual interest rate of 2.777% at September 30, 2014, guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke
 
 
5,547,930
 
 
 
 
Loan from China Development Bank, due on July 22, 2015 with annual interest rate of 3.137% at September 30, 2014, guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke
 
 
5,000,000
 
 
 
 
Loan from China Development Bank, due on March 8, 2015 with annual interest rate of 2.777% at September 30, 2014, guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke
 
 
3,185,980
 
 
 
 
Loan from Industrial and Commercial Bank of China, due on October 15, 2014 with annual interest rate of 3.050% at September 30, 2014, guaranteed by Xinrong Zhuo and repaid on due date
 
 
188,995
 
 
 
 
Loan from Industrial and Commercial Bank of China, due on October 15, 2014 with annual interest rate of 3.050% at September 30, 2014, guaranteed by Xinrong Zhuo and repaid on due date
 
 
1,189,997
 
 
 
 
Loan from Fujian Haixia Bank, due on March 22, 2014 with annual interest rate of 8.400% at December 31, 2013, guaranteed by Xinrong Zhuo and repaid on due date
 
 
-
 
 
4,955,647
 
Loan from Fujian Haixia Bank, due on May 9, 2014 with annual interest rate of 9.000% at December 31, 2013, guaranteed by Xinrong Zhuo and repaid on due date
 
 
-
 
 
1,651,883
 
Loan from Fujian Haixia Bank, due on April 23, 2014 with annual interest rate of 9.000% at December 31, 2013, guaranteed by Xinrong Zhuo and repaid on due date
 
 
-
 
 
2,477,823
 
 
 
$
36,071,023
 
$
9,085,353
 
  
Long-term bank loans
 
Long-term bank loan represents an amount due to a bank lasting over one year. Usually, the long-term bank loan cannot be renewed with the bank upon maturity. At September 30, 2014 and December 31, 2013, long-term bank loans consisted of the following:
 
 
 
September 30,
 
December 31,
 
 
 
2014
 
2013
 
 
 
 
 
(As Restated)
 
Loan from China Minsheng Bank, due on various dates until March 16, 2015 with annual interest rate of 7.660% at September 30, 2014 and December 31, 2013, collateralized by Pingtan Fishing's and Hong Long's fishing vessels and guaranteed by Xinrong Zhuo
 
$
5,996,685
 
$
9,143,169
 
Loan from China Minsheng Bank, due on various dates until March 16, 2015 with annual interest rate of 7.372% at September 30, 2014 and December 31, 2013, collateralized by Pingtan Fishing's and Hong Long's fishing vessels and guaranteed by Xinrong Zhuo
 
 
1,462,606
 
 
2,230,041
 
Loan from China Minsheng Bank, due on various dates until March 16, 2015 with annual interest rate of 7.372% at September 30, 2014 and December 31, 2013, collateralized by Pingtan Fishing's and Hong Long's fishing vessels and guaranteed by Xinrong Zhuo
 
 
2,267,039
 
 
3,456,564
 
Loan from Fujian Haixia Bank, due on various dates until March 22, 2015 with annual interest rate of 9.310% at September 30, 2014 and December 31, 2013, guaranteed by Xinrong Zhuo
 
 
2,437,677
 
 
3,303,764
 
Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 6.400% at September 30, 2014 and December 31, 2013, collateralized by Hong Long's investment in equity interest of a China local bank
 
 
19,322,651
 
 
19,640,881
 
Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 6.400% at September 30, 2014 and December 31, 2013, collateralized by Hong Long's investment in equity interest of a China local bank
 
 
706,926
 
 
718,569
 
Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 6.400% at September 30, 2014 and December 31, 2013, collateralized by Fujian International Trading and Transportation Co., Ltd.'s investment in equity interest of a China local bank
 
 
3,721,520
 
 
3,782,810
 
Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 6.400% at September 30, 2014 and December 31, 2013, guaranteed by Hong Long
 
 
15,601,131
 
 
15,858,070
 
Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 6.400% at September 30, 2014 and December 31, 2013, collateralized by Fujian International Trading and Transportation Co., Ltd.'s investment in equity interest of a China local bank
 
 
455,033
 
 
462,527
 
Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 6.400% at September 30, 2014 and December 31, 2013, collateralized by Hong Long's investment in equity interest of a China local bank
 
$
1,235,090
 
$
1,255,431
 
 
 
 
 
 
September 30,
 
December 31,
 
 
 
2014
 
2013
 
 
 
 
 
 
(As Restated)
 
Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 6.400% at September 30, 2014 and December 31, 2013, collateralized by Hong Long's investment in equity interest of a China local bank
 
$
2,616,440
 
$
2,659,531
 
Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 6.400% at September 30, 2014 and December 31, 2013, collateralized by Pingtan Fishing's investment in equity interest of a China local bank
 
 
2,291,416
 
 
2,329,153
 
Loan from China Development Bank, due on various dates until November 27, 2023 with annual interest rate of 6.8775% at September 30, 2014 and December 31, 2013, guaranteed by Xinrong Zhuo, Honghong Zhuo, Mr. and Mrs. Zhiyan Lin and 14 fishing vessels under construction
 
 
9,750,707
 
 
9,911,294
 
Loan from China Development Bank, due on various dates until January 14, 2024 with annual interest rate of 6.8775% at September 30, 2014 and December 31, 2013, guaranteed by Xinrong Zhuo, Honghong Zhuo, Mr. and Mrs. Zhiyan Lin and 14 fishing vessels under construction
 
 
3,250,236
 
 
-
 
Loan from China Development Bank, due on various dates until March 16, 2024 with annual interest rate of 6.8775% at September 30, 2014 and December 31, 2013, guaranteed by Xinrong Zhuo, Honghong Zhuo, Mr. and Mrs. Zhiyan Lin and 14 fishing vessels under construction
 
 
487,534
 
 
-
 
Total long-term bank loans
 
$
71,602,691
 
$
74,751,804
 
Less: current portion
 
 
(26,895,700)
 
 
(20,252,077)
 
Long-term bank loans, non-current portion
 
$
44,706,991
 
$
54,499,727
 
 
The future maturities of long-term bank loans are as follows:
 
 
Due in twelve-month periods ending September 30,
 
Principal
 
2015
 
$
26,895,700
 
2016
 
 
13,147,203
 
2017
 
 
14,609,809
 
2018
 
 
8,499,366
 
2019
 
 
1,462,606
 
Thereafter
 
 
6,988,007
 
 
 
$
71,602,691
 
Less: current portion
 
 
(26,895,700)
 
Long-term liability
 
$
44,706,991
 
  
The weighted average interest rate for short-term bank loans was approximately 1.6% and 4.0%, for the nine months ended September 30, 2014 and 2013, respectively.
 
The weighted average interest rate for long-term bank loans was approximately 5.2% and 7.3%, respectively, for the nine months ended September 30, 2014 and 2013, respectively.
 
For the three months ended September 30, 2014 and 2013, interest expense related to bank loans amounted to approximately $1,315,000 and $1,049,000, respectively, of which, approximately $635,000 and $118,000 was capitalized to construction-in-progress, respectively.
 
For the nine months ended September 30, 2014 and 2013, interest expense related to bank loans amounted to approximately $4,317,000 and $2,445,000, respectively, of which, approximately $1,228,000 and $829,000 was capitalized to construction-in-progress, respectively.