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19. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

19. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

As of December 31, 2017, 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 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, 2017:

	Capital Lease Obligations			Operating Lease Obligations		Property Management Fees
Payable within:
the next 12 months	$	287,256		$	988,859	$	95,476
the next 13 to 24 months		287,256			1,012,360		95,476
the next 25 to 36 months		287,256			1,033,929		95,476
the next 37 to 48 months		287,256			1,059,600		95,476
the next 49 to 60 months		287,256			911,781		95,476
thereafter		2,298,049			16,583,556		—
Total	$	3,734,329		$	21,590,085	$	477,380
Less: Amount representing interest		(1,227,128	)
Present value of net minimum lease payments	$	2,507,201

Rental expenses related to operating leases of the Company amounted to $1,044,611 and $1,043,615 were charged to the consolidated statements of income for the years ended December 31, 2017 and 2016, respectively.