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17. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS
 3 Months Ended
Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]  
17. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

As of March 31, 2017, 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 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 parcels of land under non-cancelable operating leases, which are fixed rentals and expire through December 2021, December 2023, December 2030, December 2031, December 2032, December 2040, February 2059, August 2059 and June 2060, respectively.

 

The Company has no purchase commitments as of March 31, 2017.

 

The following table sets forth the Company’s contractual obligations as of March 31, 2017:

 

    Capital Lease Obligations     Operating Lease Obligations     Property Management Fees  
Payable within:                   
  the next 12 months $ 272,052     $ 932,376     $ 90,423  
  the next 13 to 24 months     272,052       953,137       -  
  the next 25 to 36 months     272,052       974,719       -  
the next 37 to 48 months     272,052       997,450       -  
the next 49 to 60 months     272,052       858,660       -  
  thereafter     2,448,472       16,324,845       -  
Total   $ 3,808,732     $ 21,041,187     $ 90,423  
Less: Amount representing interest     (1,280,870 )                
Present value of net minimum lease payments   $ 2,527,862                  

 

Rental expenses related to operating leases of the Company amounted to $255,120 and $260,383, which were charged to the condensed consolidated statements of income for the three months ended March 31, 2017 and 2016, respectively.