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19. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

19. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

As of September 30, 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 ten pieces of land under non-cancelable operating leases, which are fixed in rentals and expired through December 2021, December 2022, 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 following table sets forth the Company’s contractual obligations as of September 30, 2015:


		Capital Lease Obligations			Operating Lease Obligations				Property Management Fees
Payable within:
the next 12 months	$	295,064		$		973,452		$		98,071
the next 13 to 24 months		295,064			995,561				98,071
the next 25 to 36 months		295,064			1,015,738				24,518
the next 37 to 48 months		295,064			1,039,879				-
the next 49 to 60 months		295,064			1,062,035				-
thereafter		2,950,646			19,059,308				-
Total	$	4,425,966		$	24,145,973		$		220,660
Less: Amount representing interest		(1,661,647)	))
Present value of net minimum lease payments	$	2,764,319

Rental expenses related to operating leases of the Company amounted to $267,281 and $244,097, which were charged to the income statements for the three-month ended September 30, 2015 and 2014, respectively. Rental expenses related to operating leases of the Company amounted to $810,983 and $733,138, which were charged to the income statements for the nine-month ended September 30, 2015 and 2014, respectively.