Note 6 – Bank and Other Borrowings

 

As of December 31, 2025 and 2024, the bank and other borrowings consisted of the following:

 

      Principal   Maturity  Fixed Interest   As of December 31, 
Initiation date  Loan No.  Amount   date  Rate   2025   2024 
May 13, 2020  #1  $500,000   April 13, 2050   3.75%  $      -   $- 
May 17, 2022  #2  $25,050   August 1,2025   5.50%   -    5,022 
September 9, 2022  #3  $150,000   September 9, 2025   6.75%   -    40,438 
August 1, 2023  #4  $87,199   July 1, 2031   6.50%   -    66,413 
November 13, 2023  #5  $120,000   November 13, 2026   9.25%   -    80,505 
Total loans payable                   -    192,378 
Current portion                   -    (94,007)
Non-current portion                  $-   $98,371 

 

Notes:

 

(1) Loan #1 is guaranteed by Cheung Chi Ping (“Mr. Cheung”), director of the Company, and Chrome I and secured by all intangible and tangible personal property of Mr. Cheung.
(2) Loan #2 is secured by the land of the golf course of the Company.
(3) Loan #3 is secured by the buildings of the golf clubs of the Company.
(4) Loan #4 is secured by the golf course of the Company and repayable in eight years
(5) Loan #5 is secured by the land and building of the golf clubs of the Company.

 

During the years ended December 31, 2025 and 2024, the Company recognized interest expenses of $4,491 and $25,550, respectively.

 

 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 28, 2025

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.