XML 30 R50.htm IDEA: XBRL DOCUMENT v2.4.0.8
Loans Payable (Details Textual)
 0 Months Ended 3 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended 3 Months Ended 0 Months Ended
Jul. 15, 2013
Mar. 31, 2014
USD ($)
Mar. 31, 2013
USD ($)
Dec. 31, 2013
USD ($)
Mar. 31, 2014
Rural Credit Union of Xushui County [Member]
USD ($)
Dec. 31, 2013
Rural Credit Union of Xushui County [Member]
USD ($)
Mar. 31, 2014
Term Loan [Member]
Rural Credit Union of Xushui County [Member]
USD ($)
Dec. 31, 2013
Term Loan [Member]
Rural Credit Union of Xushui County [Member]
USD ($)
Mar. 31, 2014
New term loan agreement [Member]
Rural Credit Union of Xushui County [Member]
USD ($)
Dec. 31, 2013
New term loan agreement [Member]
Rural Credit Union of Xushui County [Member]
USD ($)
Mar. 31, 2014
Lease financing agreement [Member]
USD ($)
Sep. 02, 2013
Industrial & Commercial Bank of China (a) [Member]
Sep. 02, 2013
Industrial & Commercial Bank of China (a) [Member]
June 5, 2014 [Member]
USD ($)
Sep. 02, 2013
Industrial & Commercial Bank of China (a) [Member]
August 15, 2014 [Member]
USD ($)
Mar. 31, 2014
Industrial & Commercial Bank of China (a) [Member]
Factoring Facility [Member]
USD ($)
Dec. 31, 2013
Industrial & Commercial Bank of China (a) [Member]
Factoring Facility [Member]
USD ($)
Sep. 06, 2013
Industrial & Commercial Bank of China (b) [Member]
USD ($)
Mar. 31, 2014
Industrial & Commercial Bank of China (b) [Member]
Factoring Facility [Member]
USD ($)
Dec. 31, 2013
Industrial & Commercial Bank of China (b) [Member]
Factoring Facility [Member]
USD ($)
Mar. 31, 2014
Industrial & Commercial Bank of China (c) [Member]
Factoring Facility [Member]
USD ($)
Dec. 31, 2013
Industrial & Commercial Bank of China (c) [Member]
Factoring Facility [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
Mar. 31, 2014
China National Foreign Trade Financial & Leasing Co. [Member]
Collateral Agreement [Member]
USD ($)
sqm
Loans Payable (Textual)                                                
Unpaid balance of short term debt   $ 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]      
Short-term bank loans, fixed interest rate                       6.90%           6.60%   6.60%        
Short-term bank loans interest rate as percentage of prime rate                       115.00%           110.00%   1.00%        
Loan, maturity date                                   Aug. 04, 2014   Oct. 21, 2014        
Loan paid off date                         Jun. 05, 2014 Aug. 15, 2014       Aug. 04, 2014            
Notes payable   9,086,189   4,908,216                 811,267 3,245,067                    
Accounts receivable   2,912,313   3,327,494                                        
Average short-term borrowing rates   6.79% 6.60%                                          
Loan from credit union   4,218,588   4,253,788 5,865,460 5,914,401 1,598,196 1,611,531 4,267,264 4,302,870                            
Long-term debt, Interest rate per month         0.72%   0.72%   0.72% 0.72%                            
Security loan agreement by manufacturing equipment   19,072,822   21,901,456                                        
Current portion of long-term loan from credit union   1,646,872   1,660,613 1,598,196 1,611,531 1,604,391   48,676 49,082                            
Interest expense for the short-term bank loans and long-term loans   238,585 190,548                                          
Total financing proceeds                                           24,000,000 150,000,000  
Proceeds from sale of paper manufacturing equipment to leasing company                                           24,000,000 150,000  
Nominal purchase price                                           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   12,191,108   12,296,639                                        
Current obligations under capital lease   8,193,163   8,264,795                                        
Deferred gain on sale of leased equipment   1,035,603   1,160,271             1,379,282                          
Assest pledged for the guarantee of Orient Paper HB's capital lease   35,143,954   36,134,038                                        
Value of land use right pledged for sale-leaseback financing   7,402,223   7,502,794                                       7,402,223
Land collateral forcapital lease                                               58,566
Loan extension period 5 years                                              
Installment repayment description Between December 21, 2013 and July 26, 2018.           The loan balance would be repayable by various installments through June 21, 2014 to November 18, 2018.                                  
Total interest expenses for the sale-leaseback arrangement   261,433                                             
Early repayment term loan             1,598,196                                  
Interest Portion of Minimum Lease Payments, Sale Leaseback Transactions   $ 1,350,000                                            
[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.