v3.25.1
SHORT-TERM AND LONG-TERM BANK LOANS
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
SHORT-TERM AND LONG-TERM BANK LOANS

NOTE 10 – SHORT-TERM AND LONG-TERM BANK LOANS

 

Short-term and long-term bank loans consist of the following:

  

Credit agreement
entered date		  Provider  Facilities  Interest
rate		  Limits   Utilized as of
December 31,		  
                2024   2023   2022  
September 27, 2021 

The Bank of East Asia, Limited (“BEA”)

  Non-revolving term loan under SME Financing Guarantee Scheme (“SME Scheme”)  Prime Rate -2.50%  $775,845                 
      - Short-term loan portion          $108,430   $102,736 $ 99,640  
      - Long-term loan portion           447,086    552,518   653,185  
                               
August 1, 2022  BEA  General banking facilities      641,109                 
      (i) Invoice financing loan  Higher of HIBOR +2.5% or Prime rate -1%        

-

    

-

   99,020  
      (ii) Revolving loan  Higher of HIBOR +3% or Prime rate -0.5%        

-

    

-

   256,443  
      (iii) Bank overdraft  Higher of HIBOR +3% or Prime rate        -    -    -  
July 4, 2023  BEA  General banking facilities      642,797                 
      (i) Invoice financing loan  Higher of HIBOR +2.5% or Prime rate -1%        

-

    175,430    -  
      (ii) Revolving loan  Higher of HIBOR +3% or Prime rate -0.5%        

-

    257,119    -  
      (iii) Bank overdraft  Higher of HIBOR +3% or Prime rate        

-

    

11,861

    -  
July 8, 2024  BEA  General banking facilities      

646,538

                 
      (i) Invoice financing loan  Higher of HIBOR +2.5% or Prime rate -1%        

62,794

    

-

     -  
      (ii) Revolving loan  Higher of HIBOR +3% or Prime rate -0.5%        

258,615

    

-

     -  
      (iii) Bank overdraft  Higher of HIBOR +3% or Prime rate        138,954    

-

     -  
July 10, 2023  Shanghai Commercial Bank (“SHCB”)  Revolving Loan  “HKD) Prime Rate -0.75% USD) Prime Rate -1.75%”   642,797    

-

    601,916    -  
September 4, 2024 

SHCB

 

Revolving Loan

 

“HKD) Prime Rate -0.75% USD) Prime Rate -1.75%”

   

1,939,613

    

1,321,523

    

-

    -  
June 2, 2023  Mercedes-Benz Financial Services Hong Kong Ltd.  Obligation from finance lease for motor vehicle  2.680%   57,414                 
      - Short-term loan portion           11,125    10,319    -  
      - Long-term loan portion           24,489    35,408    -  

 

On July 8, 2024, the new credit agreement offers from BEA replaced the credit agreement offers from BEA entered on July 4, 2023.

 

On September 4, 2024, the new credit agreement offers from SHCB replaced the credit agreements offers from SHCB entered on July 10, 2023, January 24, 2024, and March 5, 2024.

 

 

NOTE 10 – SHORT-TERM AND LONG-TERM BANK LOANS (CONTINUED)

 

As of December 31, 2024 and 2023, invoice financing and certain revolving loans were secured by the personal deposit from a director of the Company and a related party, and limited personal guarantee provided by a director and a related party. The amounts due are based on scheduled repayment dates set out in the banking facilities letters or loan agreements. All the Company’s invoice financing and certain revolving loans carried variable interest at the higher of 1-month Hong Kong Interbank Offered Rate (the “HIBOR”) plus 2.5% to 3% per annum or the Prime Rate less 0.5% to 1% per annum.

 

During the year ended December 31, 2024, new revolving loans were granted and were secured by cash deposit from WLHK and continuing guarantee provided by a director. The amounts due are based on scheduled repayment dates set out in the banking facilities letters or loan agreements. The revolving loans carried interest at 0.75% per annum below Prime or 1.75% per annum below USD Prime.

 

As of December 31, 2024 and 2023, the non-revolving term loan under SME Scheme was issued by the HKMC Insurance Limited under the SME Scheme and secured by personal guarantee provided by a director and a related party for HK$6 million (equivalent to $775,845). The amounts due are based on scheduled repayment dates set out in the banking facilities letters. The bank loan carrying by 2.5% per annum below the prime lending rate for Hong Kong Dollars quoted by HKMC Insurance Limited.

 

The effective interest rate of the years 2024 and 2023 for the Company’s short-term and long-term bank loans ranged from 3.125% to 8.23% per annum. Except the balance of $447,086 (2023: $552,518) of the non-revolving term loan under SME Scheme are repayable more than one year, all the Company’s short-term and long-term bank loans are repayable on demand or repayable within one year.

 

Interest expense on the short-term and long-term bank loans totaled $118,241 and $58,410 during the years ended December 31, 2024 and 2023, respectively.

 

As of December 31, 2024 and 2023 the Company was granted the general banking facilities stated above with the following pledges:

 

- Personal guarantee limited to HK$5 million (equivalent to $646,538) provided by Pui Lung Ho, a director of the Company and Sau Lee Shirley Kam, who is a family member of a director of the Company; and
   
- Pledged deposit amounted approximately to HK$3 million (equivalent to approximately $387,923) by Pui Lung Ho, a director of the Company or Sau Lee Shirley Kam, who is a family member of a director of the Company to BEA since August 1, 2022.
   
- An additional pledged deposit amounted to HK$15 million (equivalent to $1,939,613) provided by the Company to SHCB since September 4, 2024.