XML 76 R65.htm IDEA: XBRL DOCUMENT v2.4.0.8
Loans Payable (Details Textual)
 0 Months Ended 12 Months Ended 1 Months Ended 0 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Jul. 15, 2013
Dec. 31, 2013
USD ($)
Dec. 31, 2012
USD ($)
Dec. 31, 2011
USD ($)
Mar. 31, 2011
Rural Credit Union of Xushui County [Member]
Dec. 31, 2013
Rural Credit Union of Xushui County [Member]
USD ($)
Dec. 31, 2012
Rural Credit Union of Xushui County [Member]
USD ($)
Jun. 16, 2013
Sale-leaseback arrangement [Member]
USD ($)
Jun. 16, 2013
Sale-leaseback arrangement [Member]
CNY
Dec. 31, 2013
Term Loan [Member]
Rural Credit Union of Xushui County [Member]
USD ($)
Dec. 31, 2012
Term Loan [Member]
Rural Credit Union of Xushui County [Member]
USD ($)
Jun. 10, 2011
New term loan agreement [Member]
Rural Credit Union of Xushui County [Member]
Dec. 31, 2013
New term loan agreement [Member]
Rural Credit Union of Xushui County [Member]
USD ($)
Dec. 31, 2012
New term loan agreement [Member]
Rural Credit Union of Xushui County [Member]
USD ($)
Sep. 02, 2013
Industrial & Commercial Bank of China [Member]
USD ($)
Sep. 02, 2013
Industrial & Commercial Bank of China [Member]
June 15, 2014 [Member]
USD ($)
Sep. 02, 2013
Industrial & Commercial Bank of China [Member]
August 15, 2014 [Member]
USD ($)
Dec. 31, 2012
Industrial & Commercial Bank of China [Member]
Factoring Facility [Member]
USD ($)
Dec. 31, 2013
Industrial & Commercial Bank of China [Member]
Factoring Facility [Member]
USD ($)
Dec. 31, 2012
Industrial & Commercial Bank of China (b) [Member]
Factoring Facility [Member]
USD ($)
Dec. 31, 2013
Industrial & Commercial Bank of China (b) [Member]
Factoring Facility [Member]
USD ($)
Dec. 31, 2013
Industrial & Commercial Bank of China (d) [Member]
Factoring Facility [Member]
USD ($)
Dec. 31, 2012
Industrial & Commercial Bank of China (d) [Member]
Factoring Facility [Member]
USD ($)
Sep. 06, 2013
Industrial & Commercial Bank of China (e) [Member]
Factoring Facility [Member]
Dec. 31, 2013
Industrial & Commercial Bank of China (e) [Member]
Factoring Facility [Member]
USD ($)
Dec. 31, 2012
Industrial & Commercial Bank of China (e) [Member]
Factoring Facility [Member]
USD ($)
Dec. 31, 2012
Bank of Hebei (c) [Member]
USD ($)
Dec. 31, 2013
Bank of Hebei (c) [Member]
USD ($)
Jun. 16, 2013
China National Foreign Trade Financial & Leasing Co. [Member]
Lease financing agreement [Member]
USD ($)
Jun. 16, 2013
China National Foreign Trade Financial & Leasing Co. [Member]
Lease financing agreement [Member]
CNY
Dec. 31, 2013
China National Foreign Trade Financial & Leasing Co. [Member]
Collateral Agreement [Member]
USD ($)
sqm
Dec. 31, 2013
Industrial & Commercial Bank of China (f) [Member]
Factoring Facility [Member]
USD ($)
Dec. 31, 2012
Industrial & Commercial Bank of China (f) [Member]
Factoring Facility [Member]
USD ($)
Loans Payable (Textual)                                                                  
Maximum credit limit of short term loan                                   $ 792,568   $ 1,585,138         $ 818,036   $ 1,585,138         $ 1,636,072  
Unpaid balance of short term debt   6,544,288 3,962,844                             792,568 [1]    [1] 1,585,138 [2]    [2] 4,090,180 [3]    [3]   818,036 [4]    [4] 1,585,138 [5]    [5]       1,636,072 [6]    [6]
Short-term bank loans, fixed interest rate   6.68% 7.82% 6.38%                     6.90%     6.60%   6.60%         6.60%   6.60%         6.60%  
Short-term bank loans interest rate as percentage of prime rate                             115.00%         1.00%         110.00%             1.00%  
Loan, maturity date                       Jun. 09, 2013               Nov. 08, 2013       Aug. 04, 2014     Sep. 19, 2013            
Loan paid off date                       Jul. 26, 2013           Aug. 28, 2013   Nov. 08, 2013             Sep. 18, 2013         Oct. 21, 2014  
Secured short-term bank loan   6,544,288 2,377,706                                                            
Unsecured short term loan      1,585,138                                                            
Notes payable   4,908,216 3,170,276                         818,036 3,272,144                   1,585,138            
Working capital loan drawn from banking facility                             4,072,059                       1,585,138            
Accounts receivable   3,327,494 2,836,335                                                            
Average short-term borrowing rates   6.62%                                                              
Loan from credit union   4,253,788 1,561,361     5,888,198 5,730,273     1,611,531 1,561,361   4,302,870 4,168,912                                      
Term of facility and loan payable         3 years                                                        
Long-term debt, Interest rate per month                   0.72%     0.72% 0.72%                                      
Security loan agreement by manufacturing equipment   22,439,622                     21,901,456 9,316,645                                      
Current portion of long-term loan from credit union   1,660,613 4,168,912             1,611,531     49,082                                        
Interest expense for the short-term bank loans and long-term loans   828,157 736,457 495,978                                                          
Total financing proceeds               24,000,000 150,000,000                                       24,000,000 150,000,000      
Proceeds from sale of paper manufacturing equipment to leasing company   24,215,811             24,000,000 150,000,000                                                
Nominal purchase price               2,400 15,000                                       2,400 15,000      
Lease service charge   Equal to 5.55% of the amount financed.                                                              
Implicit interest rate                                                         6.15% 6.15%      
Stated capital lease                                                         25,750,170        
Long-term obligations under capital lease   12,296,639                                                               
Current obligations under capital lease   8,264,795                                                               
Deferred gain on sale of leased equipment   1,160,271            1,379,282                                                  
Net values of pledged for sale-leaseback financing   25,993,677                                                              
Assets pledged for the guarantee of Orient Paper HB's capital lease   36,134,038                                                              
Value of land use right pledged for sale-leaseback financing   7,502,794                                                         7,502,794    
Land collateral for capital lease                                                             58,566    
Loan extension period 5 years                                                                
Installment repayment description Between December 21, 2013 and July 26, 2018.                                                                
Total interest expenses for the sale-leaseback arrangement   471,472                                                                
Interest Portion of Minimum Lease Payments, Sale Leaseback Transactions   $ 1,360,000                                                              
[1] (a) On September 4, 2012, the Company refinanced with the Industrial & Commercial Bank of China ("ICBC") an accounts receivable factoring facility with a maximum credit limit of $792,568 as of December 31, 2012. Under the factoring agreement, the bank has recourse against the Company if the receivables, which remain in the Company's books at all times, are not fully collected. The factoring facility carried an interest rate of 6.6% per annum. The Company paid off the principal balance and accrued interest under the factoring facility on August 28, 2013.
[2] (b) On November 9, 2012, the Company obtained from the ICBC another accounts receivable factoring facility with a maximum credit limit of $1,585,138 as of December 31, 2012. Under the factoring agreement, the bank has recourse against the Company if the receivables, which remain in the Company's books at all times, are not fully collected. The term of the factoring facility expired on November 8, 2013 and carried an interest rate of 6.6% per annum, or 1.0% plus the prime rate for the loan set forth by the People's Bank of China at the time of funding. The Company paid off the principal balance and accrued interest under the factoring facility on November 8, 2013.
[3] (d) On September 2, 2013, the Company entered into a working capital loan agreement with the ICBC for $4,090,180, with which $818,036 is payable on June 5, 2014 and $3,272,144 is payable on August 15, 2014. The loan bears an interest rate of 115% over the primary lending rate of the People's Bank of China and was at 6.9% per annum at the time of funding.Concurrent with the signing of the working capital loan agreement, the Company also entered into a trust agreement with the ICBC, which provides trust account management services to the Company during the terms of the underlying loan. The working capital loan is guaranteed by Hebei Fangsheng Real Estate Development Co. Ltd. ("Hebei Fangsheng") with the land use right on our Headquarters Compound pledged by Hebei Fangsheng as collateral for the benefit of the bank. The land use right on our Headquarters Compound was acquired by Hebei Fangsheng from the Company on August 9, 2013 (see Note (11) for the related party transaction). Hebei Fangsheng is controlled by the Company's Chairman and CEO Mr. Zhenyong Liu.
[4] (e) On September 6, 2013, the Company obtained a new accounts receivable factoring facility from the ICBC for $818,036. Under the factoring agreement, the bank has recourse against the Company if the receivables, which remain in the Company's books at all times, are not fully collected. The factoring facility will expire on August 4, 2014 and bears an interest rate of 110% of the primary lending rate of the People's Bank of China and was at 6.6% per annum at the time of funding. Concurrent with the signing of the new factoring agreement, the Company also entered into a financial service agreement with ICBC, which provides accounts receivable management services to the Company during the terms of the underlying factoring facility. The factoring facility is personally guaranteed by the Company's Chairman and CEO Mr. Zhenyong Liu.
[5] (c) On September 19, 2012, the Company obtained from the Bank of Hebei a banking facility with maximum credit limit on bank loans of $1,585,138 and on notes payable of $1,585,138 as of December 31, 2012. The facility was guaranteed by an independent third party. On the same day, the Company drew down from this banking facility a new working capital loan of $1,585,138 as of December 31, 2012. The loan bore interest at the rate of 6.6% per annum. Both the term of the banking facility and loan were for one year and expired on September 19, 2013. The Company paid off the loan balance on September 18, 2013.
[6] (f) On December 3, 2013, the Company obtained from the ICBC an accounts receivable factoring facility with a maximum credit limit of $1,636,072 as of December 31, 2013. Under the factoring agreement, the bank has recourse against the Company if the receivables, which remain in the Company's books at all times, are not fully collected. The term of the factoring facility expires on October 21, 2014 and carries an interest rate of 6.6% per annum, or 1.0% plus the prime rate for the loan set forth by the People's Bank of China at the time of funding. The unpaid balance of the loan was in the amount of $1,636,072 as of December 31, 2013.