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Loans Receivable, Net
 12 Months Ended
Dec. 31, 2023
Loans Receivable, Net [Abstract]  
LOANS RECEIVABLE, NET

NOTE 8 — LOANS RECEIVABLE, NET

 

The Company’s loans receivable, net was as follows:

 

   As of December 31, 
   2023   2022 
         
Residential mortgage loans  $1,605,531   $1,589,871 
Less: allowance for expected credit losses   (1,229)   
—
 
Loans receivable, net  $1,604,302   $1,589,871 
           
Classifying as:          
Current portion  $549,461   $517,479 
Non-current portion   1,054,841    1,072,392 
Loans receivable, net  $1,604,302   $1,589,871 

 

The interest rates on loans issued ranged between 9.00% and 10.50% (2022: 9.00% to 10.00%) per annum for the year ended December 31, 2023. Mortgage loans are secured by collateral in the pledge of the underlying residential properties owned by the borrowers. As of December 31, 2023, the net carrying amount of the loans receivable was $1,604,302, which included an interest receivable of $40,100.

 

Mortgage loans are made to either business or individual customers in Hong Kong for a period of 1 to 25 years, which are fully collateralized and closely monitored for counterparty creditworthiness, with such collateral having a fair value in excess of the carrying amount of the loans as of December 31, 2023 and 2022.

 

The following table presents the activity in the allowance for expected credit losses:

 

   As of December 31, 
   2023   2022 
Balance at beginning of year  $
—
   $76,799 
Allowance for expected credit losses   1,225    
—
 
Written-off   
—
    (76,799)
Foreign translation adjustment   4    
—
 
Balance at end of year  $1,229   $
—
 

 

Estimated allowance for expected credit losses is determined on quarterly basis, in accordance with the CECL model, for general credit risk of the overall portfolio, which is relied on an assessment of specific evidence indicating doubtful collection, historical loss experience, loan balance aging and prevailing economic conditions. If there is an unexpected deterioration of a customer’s financial condition or an unexpected change in economic conditions, including macroeconomic events, the Company will assess the need to adjust the allowance for expected credit losses. Any such resulting adjustments would affect earnings in the period that adjustments are made.

 

For the years ended December 31, 2023 and 2022, the Company has assessed the probable loss and made an allowance for expected credit losses of $1,225 and nil on loans receivable, respectively.