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18. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

18. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

As of March 31, 2018, 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, 2018.

The following table sets forth the Company’s contractual obligations as of March 31, 2018:

	Capital Lease Obligations			Operating Lease Obligations		Property Management Fees		Capital Expenditure
Payable within:
the next 12 months	$	298,499		$	1,045,795	$	99,213	$	167,016
the next 13 to 24 months		298,499			1,069,473		99,213		—
the next 25 to 36 months		298,499			1,094,416		99,213		—
the next 37 to 48 months		298,499			942,133		99,213		—
the next 49 to 60 months		298,499			960,539		99,213		—
thereafter		2,387,996			16,951,287		—		—
Total		3,880,491		$	22,063,643	$	496,065	$	167,016
Less: Amount representing interest		(1,231,488	)
Present value of net minimum lease payments	$	2,649,003

Rental expenses related to operating leases of the Company amounted to $281,613 and $255,120, which were charged to the condensed consolidated statements of income for the three months ended March 31, 2018 and 2017, respectively.