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19. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

19. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

As of December 31, 2014, the Company leased a real property adjacent to Factory No. 1, with the related production facility, channels and ducts, other production equipment and the buildings located on the property, under capital lease. The future minimum lease payments required under capital lease, together with the present value of such payments, are included in the table show below.

The Company has leased nine pieces of land under non-cancelable operating leases, which are fixed in rentals and expired through December 2021, December 2030, December 2031, December 2032, December 2040, February 2059, August 2059 and June 2060, respectively. The Company accounts for the leases as operating leases.

The Company has no purchase commitment as of December 31, 2014.

The following table sets forth the Company’s contractual obligations as of December 31, 2014:

	Capital Lease Obligations			Operating Lease Obligations		Property Management Fees		Exploration Project Expenditure
Payable within:
the next 12 months	$	306,758		$	985,865	$	101,958	$	326,860
the next 13 to 24 months		306,758			1,004,970		101,958		-
the next 25 to 36 months		306,758			1,027,958		101,958		-
the next 37 to 48 months		306,758			1,048,933		-		-
the next 49 to 60 months		306,758			1,074,029		-		-
thereafter		3,374,339			20,890,533		-		-
Total	$	4,908,129			26,032,288	$	305,874	$	326,860
Less: Amount representing interest		(1,876,506	)
Present value of net minimum lease payments	$	3,031,623

Rental expenses related to operating leases of the Company amounted to $978,047 and $951,465 were charged to the income statements for the years ended December 31, 2014 and 2013, respectively.