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Long Term Bank Loans
 12 Months Ended
Dec. 31, 2018
Long Term Bank Loans [Abstract]  
LONG TERM BANK LOANS

NOTE 12 – LONG TERM BANK LOANS

 

   December 31,
2018		   December 31,
2017		 
Long-term bank loan - Industrial and Commercial Bank of China (“ICBC”) (1)  $-   $7,411,564 
Long-term bank loan - Changjiang Li Autonomous County Rural Credit Cooperative Association (“CCCA”) (2)   8,578,600    - 
Subtotal   8,578,600    7,411,564 
Less: current maturities of long-term loan   (436,200)   (4,460,524)
Long-term loan-noncurrent portion  $8,142,400   $2,951,040 

 

(1) In September 2013, REIT Changjiang entered into a line of credit agreement with ICBC, which allowed REIT Changjiang to borrow up to approximately $13.8 million (RMB 96 million) from ICBC for six years. The loan is used in the construction of REIT Changjiang’s manufacturing plant. The loan bears a variable interest rate based on the prevailing interest rate for a 6-year loan set by the People’s Bank of China at the time of borrowing, plus 29 basis points, adjusted every six months. During the year ended December 31, 2017, the Company repaid approximately $3.1 million (RMB 20.7 million). The remaining balance of approximately $7.4 million (RMB 48.2 million) was repaid in full as of December 31, 2018.

 

(2)

In June 2018, REIT Changjiang entered into a loan agreement with CCCA to borrow approximately $8.7 million (RMB $60 million) for expansion of its production facilities. The loan has a term of six years from June 19, 2018 to June 19, 2024 with a fixed interest rate of 7% per annum.

 

REIT Changjiang has pledged its land use right of 306,000 square meters and construction in progress on this land, as well as certain production lines as collateral. RETO and Beijing REIT also pledged their shares in REIT Changjiang of 15.683% and 84.317%, respectively, as collateral to secure the loan. The loan is guaranteed by the CEO and principal shareholders of the Company. During the year ended December 31, 2018, the Company repaid approximately $0.1 million (RMB 1.0 million).

 

For the years ended December 31, 2018, 2017 and 2016, total interest on the Company’s long-term bank loans amounted to $552,804, $585,158 and $795,025, respectively.

 

As of December 31, 2018, the repayment schedule of the Company’s remaining long-term bank loan is as follows:

 

    Repayment in RMB     Repayment in USD  
June 19, 2019    $ 1,000,000      $ 145,400  
December 19, 2019     2,000,000       290,800  
June 19, 2020     2,000,000       290,800  
December 19, 2020     6,000,000       872,400  
June 19, 2021     6,000,000       872,400  
December 19, 2021     7,000,000       1,017,800  
June 19, 2022     7,000,000       1,017,800  
December 19, 2022     7,000,000       1,017,800  
June 19, 2023     7,000,000       1,017,800  
December 19, 2023     7,000,000       1,017,800  
June 19, 2024     7,000,000       1,017,800  
Total   $  59,000,000     $  8,578,600