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17. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

17. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

As of June 30, 2017, 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 shown 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 following table sets forth the Company’s contractual obligations as of June 30, 2017:

	Capital Lease Obligations			Operating Lease Obligations		Property Management Fees
Payable within:
the next 12 months	$	277,064		$	953,773	$	46,044
the next 13 to 24 months		277,064			973,475		—
the next 25 to 36 months		277,064			997,246		—
the next 37 to 48 months		277,064			1,018,890		—
the next 49 to 60 months		277,064			879,430		—
thereafter		2,216,512			16,060,555		—
Total	$	3,601,832		$	20,883,369	$	46,044
Less: Amount representing interest		(1,262,027	)
Present value of net minimum lease payments	$	2,339,805

Rental expenses related to operating leases of the Company amounted to $256,447 and $264,240, which were charged to the condensed consolidated statements of income for the three months ended June 30, 2017 and 2016, respectively. Rental expenses related to operating leases of the Company amounted to $511,566 and $524,624, which were charged to the condensed consolidated statements of income for the six months ended June 30, 2017 and 2016, respectively.