XML 83 R51.htm IDEA: XBRL DOCUMENT v3.3.0.814
Loans Payable (Details Textual)
1 Months Ended 3 Months Ended 9 Months Ended
Sep. 07, 2015
Jul. 01, 2015
USD ($)
Nov. 20, 2014
Aug. 19, 2014
Jun. 26, 2014
USD ($)
Jun. 09, 2014
a
Jul. 15, 2013
Jun. 16, 2013
USD ($)
Jun. 16, 2013
CNY (¥)
Aug. 31, 2015
USD ($)
Jun. 15, 2015
USD ($)
Jun. 15, 2015
CNY (¥)
May. 19, 2015
USD ($)
May. 19, 2015
CNY (¥)
Sep. 30, 2015
USD ($)
Sep. 30, 2014
USD ($)
Sep. 30, 2015
USD ($)
Sep. 30, 2014
USD ($)
Jul. 01, 2015
CNY (¥)
Dec. 31, 2014
USD ($)
Jun. 16, 2013
CNY (¥)
Loans Payable (Textual)                                          
Unpaid balance of short term debt                             $ 6,288,022   $ 6,288,022     $ 9,805,524  
Secured bank loans                             6,288,022   6,288,022     6,537,016  
Accounts receivable                             $ 3,849,006   $ 3,849,006     3,730,123  
Average short-term borrowing rates                             6.65% 8.20% 7.93% 7.24%      
Interest expense for the short-term bank loans and long-term loans                             $ 184,748 $ 307,746 $ 845,751 $ 778,472      
Long-term obligations under capital lease                             6,568,399   6,568,399     4,090,413  
Current obligations under capital lease                             6,323,396   6,323,396     12,258,488  
Total interest expenses for the sale-leaseback arrangement                             169,742 $ 207,830 1,024,866 717,058      
Deferred gain on sale of leased equipment                             334,451   334,451     695,389  
Value of land use right pledged for sale-leaseback financing                             6,947,979   6,947,979     7,339,399  
Assets pledged for the guarantee of Orient Paper HB's capital lease                             30,012,436   30,012,436     33,287,324  
Payments to lessor                                 5,378,582 $ 4,095,015      
Sale-leaseback arrangement [Member]                                          
Loans Payable (Textual)                                          
Total financing proceeds               $ 24,000,000 ¥ 150,000,000                        
Proceeds from sale of paper manufacturing equipment to leasing company               24,000,000 150,000,000                        
Nominal purchase price               2,400                         ¥ 15,000
Deferred gain on sale of leased equipment               1,379,282                          
Future minimum lease payment   $ 1,617,574                                      
Rural Credit Union of Xushui County [Member]                                          
Loans Payable (Textual)                                          
Loans from credit union                             5,281,939   5,281,939     5,907,828  
Term Loan [Member] | Rural Credit Union of Xushui County [Member]                                          
Loans Payable (Textual)                                          
Loans from credit union                             $ 1,548,426   $ 1,548,426     1,609,740  
Long-term debt, Interest rate per month                             0.72%   0.72%        
Installment repayment description                                 The loan balance would be repayable by various installments from June 21, 2014 to November 18, 2018.        
Current portion of long-term loan from credit union                                       65,370  
Maturities repayment terms                   The Company repaid a portion of the loan amounted to $196,501, within which $78,600 were due before the payment date and $117,901 were paid before its maturity. Early repayment is allowed as long as the Company gives a 10-day notice to the bank.                      
Early repayment of bank loan                   $ 117,901                      
Repayments of loan                   $ 196,501                      
New term loan agreement [Member] | Rural Credit Union of Xushui County [Member]                                          
Loans Payable (Textual)                                          
Loans from credit union                             $ 3,930,014   $ 3,930,014     4,298,088  
Long-term debt, Interest rate per month                             0.72%   0.72%        
Installment repayment description             Between December 21, 2013 and July 26, 2018.                            
Current portion of long-term loan from credit union                                       81,713  
Loan extension period             5 years                            
Security loan agreement by manufacturing equipment                             $ 13,896,033   $ 13,896,033     19,300,765  
Maturities repayment terms                   The Company repaid a portion of the loan amounted to $204,361, within which $94,320 were due before the payment date and $110,041 were paid before its maturity. Early repayment is allowed as long as the Company gives a 10-day notice to the bank.                      
Early repayment of bank loan                   $ 110,041                      
Repayments of loan                   $ 204,361                      
Lease financing agreement [Member]                                          
Loans Payable (Textual)                                          
Deferred gain on sale of leased equipment               1,379,282                          
Lease financing agreement [Member] | Subsequent Event [Member]                                          
Loans Payable (Textual)                                          
Long-term obligations under capital lease | ¥                                     ¥ 75,000,000    
Maturities repayment terms   The 2015 Agreement sets forth a modified and extended payment schedule with respect to the remaining payment obligation, with the final repayment date extended to June 21, 2017. Under the 2015 Agreement, the interest accrues at a rate of 15% per annum starting on June 16, 2015, and is payable on the 20th of every March, June, September and December until the principal is paid off, except for the first payment, which is due on July 31, 2015.                                      
ICBC Loan 1 [Member] | Factoring Facility [Member]                                          
Loans Payable (Textual)                                          
Unpaid balance of short term debt [1]                                   2,451,381  
Short-term bank loans, fixed interest rate         6.60%                                
Short-term bank loans interest rate as percentage of prime rate         110.00%                                
Loan, maturity date         Jun. 24, 2015                                
The Commercial Bank of the City of Zhangjiakou [Member] | Factoring Facility [Member]                                          
Loans Payable (Textual)                                          
Unpaid balance of short term debt [2]                                   3,268,508  
Short-term bank loans, fixed interest rate           11.88%                              
Loan, maturity date           Jul. 16, 2015                              
Area of land | a           330                              
ICBC Loan 2 [Member] | Factoring Facility [Member]                                          
Loans Payable (Textual)                                          
Unpaid balance of short term debt                                   817,127  
Short-term bank loans, fixed interest rate       6.60%                                  
Short-term bank loans interest rate as percentage of prime rate       110.00%                                  
Loan, maturity date       Jun. 10, 2015                                  
ICBC Loan 2 [Member] | Factoring Facility [Member]                                          
Loans Payable (Textual)                                          
Unpaid balance of short term debt [3]                                   $ 817,127  
Short-term bank loans, fixed interest rate     6.16%                                    
Short-term bank loans interest rate as percentage of prime rate     110.00%                                    
Loan, maturity date     Dec. 03, 2015                                    
China National Foreign Trade Financial & Leasing Co. [Member] | Lease financing agreement [Member]                                          
Loans Payable (Textual)                                          
Total financing proceeds               24,000,000 150,000,000                        
Proceeds from sale of paper manufacturing equipment to leasing company               24,000,000 ¥ 150,000,000                        
Nominal purchase price               $ 2,400                         ¥ 15,000
Lease service charge, Description                                 Equal to 5.55% of the amount financed.        
Lease service expense                                 $ 1,360,000        
Implicit interest rate               6.15%                         6.15%
Stated capital lease               $ 25,750,170                          
Payment for liquidated damage         $ 9,200                                
Payments to lessor                     $ 3,000,000 ¥ 20,000,000 $ 800,000 ¥ 5,000,000              
China National Foreign Trade Financial & Leasing Co. [Member] | Collateral Agreement [Member]                                          
Loans Payable (Textual)                                          
Value of land use right pledged for sale-leaseback financing                             $ 6,947,979   $ 6,947,979        
Land collateral for capital lease | m²                             58,566   58,566        
ICBC Loan 4 [Member] | Factoring Facility [Member]                                          
Loans Payable (Textual)                                          
Unpaid balance of short term debt                             $ 3,144,011   $ 3,144,011        
Short-term bank loans, fixed interest rate                             5.06%   5.06%        
Short-term bank loans interest rate as percentage of prime rate 110.00%                                        
[1] On June 26, 2014, the Company obtained an accounts receivable factoring facility from the ICBC for $2,451,381 as of December 31, 2014. 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 was expired on June 24, 2015 and bore 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. The Company paid off the principal balance and interest by June 24, 2015. Concurrent with the signing of the new factoring agreement, the Company also entered into a financial service agreement with the ICBC, which provides accounts receivable management services to the Company during the terms of the underlying factoring facility
[2] On June 9, 2014, the Company obtained from the Commercial Bank of the City of Zhangjiakou a banking facility on bank loans and notes payable, which is guaranteed by the Company's CEO and Shijiazhuang Baode Guarantee Service Company. In obtaining the guarantee from Shijiazhuang Baode Guarantee Service Company, Hebei Tengsheng Paper Co. Ltd ("Hebei Tengsheng"), a third party which owns the land use rights of about 330 acres (or 1.33 million square meters) of land in the Wei County and leases about one-fourth of the premises to Orient paper HB as our production bases of tissue paper and other future facilities, and an independent third party provided a guarantee with the land use rights and buildings pledged by Hebei Tengsheng as collateral. On July 18, 2014, the Company entered into a working capital loan agreement with the bank for $3,268,508 as of December 31, 2014. The loan was repaid subsequently on July 16, 2015 and bore a fixed interest rate of 11.88% per annum.
[3] On August 19, 2014, the Company obtained an accounts receivable factoring facility from the ICBC for $817,127 as of December 31, 2014. 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 was expired on June 10, 2015 and bore 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. The Company paid off the principal balance and interest by June 10, 2015.