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19. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

19. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

As of December 31, 2016, 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 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 nine parcel 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 December 31, 2016:

	Capital Lease Obligations			Operating Lease Obligations		Property Management Fees			Capital Expenditure
Payable within:
the next 12 months	$	270,570		$	912,915	$	89,930	$	48,434
the next 13 to 24 months		270,570			931,415		89,930		-
the next 25 to 36 months		270,570			953,551		—		-
the next 37 to 48 months		270,570			973,869		—		-
the next 49 to 60 months		270,570			998,047		—		-
thereafter		2,435,124			16,479,046		—		-
Total	$	3,787,974		$	21,248,843	$	179,860	$	48,434
Less: Amount representing interest		(1,315,337	)
Present value of net minimum lease payments	$	2,472,637

Rental expenses related to operating leases of the Company amounted to $1,043,615 and $1,072,767 were charged to the consolidated statements of income for the years ended December 31, 2016 and 2015, respectively.