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19. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS
 9 Months Ended
Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
19. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

As of September 30, 2016, the Company 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 September 30, 2016:

 

 

    Capital Lease Obligations       Operating Lease Obligations     Property Management Fees    

 

 

Capital Expenditure

Payable within:                         
the next 12 months $ 281,081     $ 948,380   $ 93,424   $ 267,154
the next 13 to 24 months   281,081          967,599     23,356     -
the next 25 to 36 months   281,081       990,595     -     -
the next 37 to 48 months   281,081       1,011,702     -     -
the next 49 to 60 months   281,081       1,036,821     -     -
thereafter   2,529,726       17,119,230     -     -
Total $ 3,935,131     $ 22,074,327   $ 116,780   $ 267,154
Less: Amount representing interest    (1,408,095) )                  
Present value of net minimum lease payments $  2,527,036                    
                                           

 

 

Rental expenses related to operating leases of the Company amounted to $259,196 and $267,281, which were charged to the condensed consolidated statements of income for the three months ended September 30, 2016 and 2015, respectively. Rental expenses related to operating leases of the Company amounted to $783,820 and $810,983, which were charged to the income statements for the nine months ended September 30, 2016 and 2015, respectively.