Note 13 - Short-term Bank Loan and Credit Facility

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Short-term Debt [Text Block]

13. Short-term bank loan and credit facility

As of

December 31, 2018,

the Company had a revolving credit facility of

RMB5.0

million (approximately

US$0.7

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

January 2, 2020.

Under the revolving credit facility, the Company borrowed

RMB3.0

million (approximately

US$0.44

million) short-term loan, which was repaid on

January 14, 2019.

As of

December 31, 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.

Short-term loans outstanding as of

December 31, 2017

was borrowed under the same revolving credit facility, which consisted of a

RMB3.0

million (approximately

US$0.5

million) short-term loan which was repaid on

July 13, 2018

and a

RMB2.0

million (approximately

US$0.3

million) short-term loan which was repaid on

October 19, 2018.

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

US$25,500

term deposit, which will mature on

September 21, 2019.

Interest rate of the short-term working capital loans borrowed was

5.22%

or

5.655%

per annum for the years ended

December 31, 2018

and

2017,

which is

20%

or

30%

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