Annual report pursuant to Section 13 and 15(d)

Bank Loans

v3.3.1.900
Bank Loans
12 Months Ended
Dec. 31, 2015
Bank Loans [Abstract]  
BANK LOANS

NOTE 13 – 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 December 31, 2015 and 2014, short-term bank loans consisted of the following:

 

    December 31, 2015     December 31, 2014  
Loan from China Development Bank, due on July 22, 2015 with variable annual interest rate based on LIBOR(1) plus 245 basis points (3.1374% at December 31, 2014), guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke and repaid on due date   $ -     $ 5,000,000  
                 
Loan from China Development Bank, due on March 9, 2015 with variable annual interest rate based on LIBOR(1) plus 245 basis points (2.777% at December 31, 2014), guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke and repaid on due date     -       3,185,980  
                 
Loan from China Development Bank, due on November 24, 2015 with variable annual interest rate based on LIBOR(1) plus 245 basis points (2.777% at December 31, 2014), guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke and repaid on due date     -       9,500,000  
                 
Loan from China Development Bank, due on December 22, 2015 with variable annual interest rate based on LIBOR(1) plus 245 basis points (2.800% at December 31, 2014), guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke and repaid on due date     -       5,000,000  
                 
Loan from China Development Bank, due on December 29, 2015 with variable annual interest rate based on LIBOR(1) plus 245 basis points (2.8074% at December 31, 2014), guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke and repaid on August 24, 2015     -       5,000,000  
                 
Loan from Industrial and Commercial Bank of China, due on January 23, 2015 with annual interest rate of 2.200% at December 31, 2014, guaranteed  by Xinrong Zhuo and repaid on due date     -       1,640,693  
                 
Loan from Industrial and Commercial Bank of China, due on February 17, 2015 with annual interest rate of 2.000% at December 31, 2014, guaranteed by Xinrong Zhuo and repaid on due date     -       1,027,217  
                 
Loan from China Development Bank, due on February 11, 2016 with variable annual interest rate based on LIBOR(1) plus 245 basis points (3.395% at December 31, 2015), guaranteed by Xinrong Zhuo, Honghong Zhuo, Zhiyan Lin and Shuhui Ke     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 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 third party’s land use right     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 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 third party’s land use right     4,000,000       -  
                 
Loan from Fujian Haixia Bank, due on September 7, 2016 with annual interest rate of 7.360% at December 31, 2015, collateralized by Pingtan Fishing's 17 fishing vessels     4,621,998       -  
                 
Loan from Fujian Haixia Bank, due on September 20, 2016 with annual interest rate of 1.621% at December 31, 2015, collateralized by Pingtan Fishing’s 17 fishing vessels     2,349,440       -  
                 
    $ 21,971,438     $ 30,353,890  

 

(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 December 31, 2015 and 2014, long-term bank loans consisted of the following:

 

    December 31, 
2015
    December 31, 2014  
Loan from China Minsheng Bank, due on various dates until March 16, 2015 with annual interest rate of 7.741% at December 31, 2014, collateralized by Pingtan Fishing's and Hong Long's fishing vessels and guaranteed by Xinrong Zhuo and repaid on various scheduled due dates   $ -     $ 4,874,969  
                 
 Loan from Fujian Haixia Bank, due on various dates until March 22, 2015 with annual interest rate of 8.400% at December 31, 2014, guaranteed by Xinrong Zhuo and repaid on various scheduled due dates     -       1,629,062  
                 
 Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 4.750% and 6.400% at December 31, 2015 and 2014, respectively, collateralized by Hong Long's investment in equity interest of a China local bank     14,312,786       20,265,537  
                 
 Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 4.750% and 6.400% at December 31, 2015 and 2014, respectively, collateralized by Fujian International Trading and Transportation Co., Ltd.'s investment in equity interest of a China local bank     2,310,999       3,453,612  
                 
 Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 4.750% and 6.400% at December 31, 2015 and 2014, respectively, guaranteed by Hong Long     7,456,823       12,413,456  
                 
 Loan from The Export-Import Bank of China, due on various dates until December 10, 2017 with annual interest rate of 6.400% at December 31, 2014, collateralized by Pingtan Fishing's investment in equity interest of a China local bank and repaid in the third quarter of 2015     -       1,906,003  
                 
 Loan from China Development Bank, due on various dates until November 27, 2023 with annual interest rate of 5.145% and 6.8775% at December 31, 2015 and 2014, respectively, guaranteed by Xinrong Zhuo, Honghong Zhuo, Mr. and Mrs. Zhiyan Lin and 6 fishing vessels     11,169,827       12,951,048  
Total long-term bank loans   $ 35,250,435     $ 57,493,687  
Less: current portion     (12,679,680 )     (18,868,616 )
                 
Long-term bank loans, non-current portion   $ 22,570,755     $ 38,625,071  

  

The future maturities of long-term bank loans are as follows:

 

Due in year ending December 31,   Principal  
2016   $ 12,679,680  
2017     13,865,993  
2018     1,386,599  
2019     1,463,633  
2020     1,540,666  
Thereafter     4,313,864  
    $ 35,250,435  
Less: current portion     (12,679,680 )
Long-term liability   $ 22,570,755  

 

The weighted average interest rate for short-term bank loans was approximately 3.2%, 3.6% and 8.7%for the years ended December 31, 2015, 2014 and 2013, respectively.

 

The weighted average interest rate for long-term bank loans was approximately 5.7%, 6.8% and 6.8% for the years ended December 31, 2015, 2014 and 2013, respectively.

 

For the years ended December 31, 2015, 2014 and 2013, interest expense related to bank loans amounted to $3,630,200, $5,652,572 and $4,396,285, respectively, of which, $0, $836,902 and $1,094,589 was capitalized to construction-in-progress, respectively.