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Short-term Bank Loans

9 Months Ended

Jun. 30, 2015

Short-term Bank Loans [Text Block]

9.	Short-term Bank Loans

As of September 30, 2014 and June 30, 2015, the Company had short term bank borrowings of $4,887,426 and $12,905,724, respectively.

On August 13, 2014, the Company borrowed $4,839,645 (RMB30 million) from Bank of Dandong for a period from August 19, 2014 to August 18, 2015, bearing interest at 7.8% per annum. The loan was guaranteed by Mr. Xiangqian Li, the Company’s CEO and Shenzhen BAK, a former subsidiary of the Company. On August 18, 2015, the Company repaid the bank loan and borrowed a new loan of $4,839,645 (RMB30 million) under the banking facilities letter dated June 22, 2015 from Bank of Dandong for a period from August 18, 2015 to June 22, 2015, bearing interest at 7.84% per annum.

On June 22, 2015, the Company entered into a banking facilities letter with Bank of Dandong to provide a maximum loan amount of $19,358,585 (RMB120,000,000) up to June 2016. The banking facilities were guaranteed by Mr. Xiangqian Li, the Company’s CEO and his wife, Ms. Xiaoqiu Yu, and Shenzhen BAK, a former subsidiary of the Company. The facilities were also secured by the Company’s assets with the following carrying amount:

			September 30,			June 30,
			2014			2015
	Prepaid land use rights (note 8)	$	-		$	8,904,324
	Buildings		-			7,232,594
	Machinery and equipment		-			3,522,249
	Construction in progress		-			14,675,149
			-			34,334,316

The Company borrowed another loan of $8,066,077 (RMB50 million) from Bank of Dandong for a period from June 25, 2015 to June 22, 2016, bearing interest at 7.84% per annum. As of June 30, 2015, the Company had $12,905,724 outstanding on the banking facilities, and $6,452,861 available for borrowing.

During the three months ended June 30, 2014 and 2015, interest of $1,101,889 and $103,023, respectively, was incurred on the Company's bank borrowings.

During the nine months ended June 30, 2014 and 2015, interest of $5,693,738 and $294,064, respectively, was incurred on the Company's bank borrowings.