XML 22 R48.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Loans Payable (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 Industrial & Commercial Bank of China (a) [Member] Factoring Facility [Member] | Dec. 31, 2013 Industrial & Commercial Bank of China (a) [Member] Factoring Facility [Member] | Sep. 06, 2013 Industrial & Commercial Bank of China (b) [Member] | Mar. 31, 2014 Industrial & Commercial Bank of China (b) [Member] Factoring Facility [Member] | Dec. 31, 2013 Industrial & Commercial Bank of China (b) [Member] Factoring Facility [Member] | Mar. 31, 2014 Industrial & Commercial Bank of China (c) [Member] Factoring Facility [Member] | Dec. 31, 2013 Industrial & Commercial Bank of China (c) [Member] Factoring Facility [Member]
--- | --- | --- | --- | --- | --- | --- | --- | --- | ---
Schedule of short-term bank loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term bank loans | $ 6,490,135 | $ 6,544,288 | $ 4,056,334 | [1] | $ 4,090,180 | [1] | $ 811,267 | $ 811,267 | [2] | $ 818,036 | [2] | $ 1,622,534 | [3] | $ 1,636,072 | [3]
[1] | On September 2, 2013, the Company entered into a working capital loan agreement with the ICBC for $4,056,334 and $4,090,180 as of March 31, 2014 and December 31, 2013, respectively, with which $811,267 is payable on June 5, 2014 and $3,245,067 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 (10) for the related party transaction). Hebei Fangsheng is controlled by the Company's Chairman and CEO Mr. Zhenyong Liu.
[2] | On September 6, 2013, the Company obtained a new accounts receivable factoring facility from the ICBC for $811,267 and $818,036 as of March 31, 2014 and December 31, 2013, respectively. 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.
[3] | On December 3, 2013, the Company obtained from the ICBC an accounts receivable factoring facility with a maximum credit limit of $1,622,534 and $1,636,072 as of March 31, 2014 and December 31, 2013, respectively. 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 $1,622,534 as of March 31, 2014.

X
- Definition Carrying amount at the balance sheet date of borrowings from a bank, not elsewhere enumerated in the taxonomy, with a maturity within one year (or within one operating cycle if longer) from the date of borrowing. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Subparagraph a -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19(a)(1)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 16 -Article 7 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03.16) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 + Details
Name: | us-gaap_ShortTermBankLoansAndNotesPayable
Namespace Prefix: | us-gaap_
Data Type: | xbrli:monetaryItemType
Balance Type: | credit
Period Type: | instant

X
- Details
Name: | us-gaap_ShortTermBorrowingsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration