Note 13 - Short-term Bank Loan

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Short-term Debt [Text Block]

13. Short-term bank loan and credit facility

As of

December 31, 2017,

the Company had a revolving credit facility of

RMB5.0

million (approximately

US$0.73

million) for short-term working capital loans granted by a major financial institution in China, which was originally available to the Company for

one

year until

August 15, 2018

and was extended to

January 12, 2019.

Under the revolving credit facility, the Company borrowed

RMB3.0

million (approximately

US$0.44

million), which will mature on

January 12, 2019

and

RMB2.0

million (approximately

US$0.29

million), which was repaid on

October 19, 2018.

On

September 30, 2018,

the Company borrowed another

RMB3.0

million (approximately

US$0.44

million) short-term working capital loan from the same financial institution, of which

RMB1.5

million (approximately

US$0.22

million) will mature on

July 29, 2019

and the remaining

RMB1.5

million (approximately

US$0.22

million) will mature on

September 29, 2019.

Collateral for the above discussed revolving credit facility and short-term bank loans was an unlimited guarantee from Mr. Handong Cheng (Chairman and Chief Executive Officer of the Company) and his spouse.

The interest rate of these short-term bank loans was

5.655%

per annum as of

September 30, 2018

and

December 31, 2017,

which is

30%

over the benchmark rate of the People’s Bank of China (the “PBOC”).