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19. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

19. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

As of June 30, 2016, the Company has leased 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 a capital lease. The future minimum lease payments required under the capital lease, together with the present value of such payments, are included in the table show below.

The Company has leased ten parcels of land under non-cancelable operating leases, which are fixed rentals and expire through December 2021, December 2022, December 2023, December 2030, December 2031, December 2032, December 2040, February 2059, August 2059 and June 2060, respectively.

The following table sets forth the Company’s contractual obligations as of June 30, 2016:

	Capital Lease Obligations			Operating Lease Obligations		Property Management Fees		Capital Expenditure
Payable within:
the next 12 months	$	283,052		$	952,146	$	94,079	$	596,263
the next 13 to 24 months		283,052			974,385		47,039		-
the next 25 to 36 months		283,052			994,513		-		-
the next 37 to 48 months		283,052			1,018,798		-		-
the next 49 to 60 months		283,052			1,040,909		-		-
thereafter		2,547,463			17,306,076		-		-
Total	$	3,962,723		$	22,286,827	$	141,118	$	596,263
Less: Amount representing interest		(1,459,919	)
Present value of net minimum lease payments	$	2,502,804

Rental expenses related to operating leases of the Company amounted to $264,240 and $251,741, which were charged to the condensed consolidated statements of income for the three months ended June 30, 2016 and 2015, respectively. Rental expenses related to operating leases of the Company amounted to $524,624 and $517,038, which were charged to the condensed consolidated statements of income for the six months ended June 30, 2016 and 2015, respectively.