21. COMMITMENTS

Lease Commitment

On November 20, 2017, Xi’an TCH entered into a lease for its office with a term from December 1, 2017 through November 30, 2020. The monthly rent is RMB 36,536 ($5,600) with quarterly payment in advance.

On August 2, 2018, the Company entered into a lease for its office use in Beijing with a term from August 4, 2018 through August 3, 2020. The monthly rent is RMB 22,000 ($3,340) with quarterly payment in advance.

At September 30, 2018, the future annual rental payment is as follows:

September 30, 2019	$	107,240
September 30, 2020		103,580
November 30, 2020		11,200

For the nine and three months ended September 30, 2018, the rental expense of the Company was $56,643 and $23,043, respectively. For the nine and three months ended September 30, 2017, the rental expense of Xi’an TCH was $188,910 and $70,497, respectively.

Construction Commitment

Refer to Note 1 for additional details related to lease commitments with Tianyu (and its subsidiaries Xuzhou Tian’an and Xuzhou Huayu), Note 8 for commitments on construction in progress.