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18. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

18. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

As of September 30, 2017, 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 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 September 30, 2017:

		Capital Lease Obligations		Operating Lease Obligations			Property Management Fees
Payable within:
the next 12 months	$	282,808	$		973,544	$		23,499
the next 13 to 24 months		282,808		996,682			-
the next 25 to 36 months		282,808		1,017,918			-
the next 37 to 48 months		282,808		1,043,191			-
the next 49 to 60 months		282,808		897,662			-
thereafter		2,262,459		16,326,743			-
Total	$	3,676,499	$	21,255,740		$	23,499
Less: Amount representing interest		(1,248,157)
Present value of net minimum lease payments	$	2,428,342

Rental expenses related to operating leases of the Company amounted to $264,113 and $259,196, which were charged to the condensed consolidated statements of income for the three months ended September 30, 2017 and 2016, respectively. Rental expenses related to operating leases of the Company amounted to $775,680 and $783,820, which were charged to the income statements for the nine months ended September 30, 2017 and 2016, respectively.