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20. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

20. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

As of March 31, 2015, the Company has 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 ten pieces of land under non-cancelable operating leases, which are fixed in rentals and expired through December 2021, December 2023, 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 March 31, 2015.

The following table sets forth the Company’s contractual obligations as of March 31, 2015:

	Capital Lease Obligations			Operating Lease Obligations		Property Management Fees
Payable within:
the next 12 months	$	305,594		$	1,003,889	$	101,571
the next 13 to 24 months		305,594			1,025,194		101,571
the next 25 to 36 months		305,594			1,047,330		101,571
the next 37 to 48 months		305,594			1,070,651		-
the next 49 to 60 months		305,594			1,094,894		-
thereafter		3,361,539			20,422,528		-
Total	$	4,889,509		$	25,664,486	$	304,713
Less: Amount representing interest		(1,818,764	)
Present value of net minimum lease payments	$	3,070,745

Rental expenses related to operating leases of the Company amounted to $265,297 and $245,250, which were charged to the income statements for the three-month ended March 31, 2015 and 2014, respectively.