Annual report pursuant to Section 13 and 15(d)

Lines of credit

v3.7.0.1
Lines of credit
12 Months Ended
Dec. 31, 2016
Lines of credit [Abstract]  
Line Of Credit Facilities [Text Block]
16.
Lines of credit
 
The Company entered into various credit contracts and revolving lines of credit, which were used for short-term loans (See Note 14) and bank acceptance bills (See Note 13). The following tables summarize the unused lines of credit as of December 31, 2016 and 2015:
 
 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
Unused line of
 
Lender
 
Starting date
 
Maturity date
 
Line of credit
 
credit
 
 
 
 
 
 
 
$
 
$
 
Bank of China (1)
 
7/11/2016
 
7/11/2019
 
 
12,590,290
 
 
1,444,934
 
China Everbright Bank Co., Ltd. (1)
 
12/28/2016
 
12/27/2017
 
 
7,194,452
 
 
7,194,452
 
Industrial and Commercial Bank of China (1)
 
7/1/2016
 
6/30/2017
 
 
7,194,452
 
 
4,316,671
 
China Minsheng Banking Corp., Ltd. (1)
 
11/1/2016
 
11/1/2017
 
 
3,597,226
 
 
287,778
 
Bank of China (1)
 
7/12/2016
 
7/12/2019
 
 
10,483,344
 
 
111
 
Industrial Bank Co., Ltd. (1)
 
10/28/2016
 
10/28/2017
 
 
7,194,452
 
 
2,409,882
 
Hua Xia Bank Co., Ltd. (2)
 
6/1/2016
 
6/1/2017
 
 
4,316,671
 
 
2,298,681
 
Bank of China (1)
 
7/25/2016
 
7/25/2019
 
 
3,837,041
 
 
124,892
 
Hongkong and Shanghai Banking Corporation Limited (1)
 
8/26/2016
 
7/15/2017
 
 
4,000,000
 
 
4,000,000
 
Total
 
 
 
 
 
 
60,407,928
 
 
22,077,401
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
Unused line of
 
Lender
 
Starting date
Maturity date
 
Line of credit
 
credit
 
 
 
 
 
 
$
 
$
 
Bank of China (1)
 
7/13/2015
 
 
9/13/2016
 
 
13,762,455
 
 
4,707,595
 
Bank of China (1)
 
7/1/2015
 
 
6/30/2016
 
 
11,203,276
 
 
155,498
 
Ping An Bank Co., Ltd.
 
12/10/2015
 
 
12/9/2016
 
 
10,763,931
 
 
3,878,818
 
China Minsheng Banking Corp., Ltd. (1)
 
7/16/2015
 
 
7/16/2016
 
 
4,393,441
 
 
1,916,253
 
Industrial Bank Co., Ltd. (1)
 
7/15/2015
 
 
7/15/2016
 
 
9,226,227
 
 
7,079,785
 
China Everbright Bank Co., Ltd. (1)
 
6/23/2015
 
 
6/22/2016
 
 
7,688,523
 
 
3,647,289
 
Industrial and Commercial Bank of China (1)
 
10/1/2015
 
 
10/1/2016
 
 
7,688,523
 
 
4,613,113
 
Jiang Su Bank Co., Ltd.
 
11/4/2015
 
 
11/3/2016
 
 
2,306,557
 
 
995,703
 
Hongkong and Shanghai Banking Corporation Limited (1)
 
9/1/2015
 
 
7/15/2016
 
 
8,000,000
 
 
8,000,000
 
Total
 
 
 
 
 
 
 
75,032,933
 
 
34,994,054
 
 
(1)
The lines of credits are guaranteed by the Company’s Chief Executive Officer, Mr. Dang Yu Pan.
(2)
The lines of credit is guaranteed by the Company’s Chief Executive Officer, Mr. Dang Yu Pan, and his wife.
 
Certain of the agreements governing the Company’s loans include standard affirmative and negative covenants, including restrictions on granting additional pledges on the Company’s property and incurring additional debt and obligations to provide advance notice of major corporate actions, and other covenants including: that the borrower may not serve as a guarantor for more than double its net assets; that the borrower is restricted in certain circumstances from using the loans in connection with related party transactions or other transactions with affiliates; that the borrower must provide monthly reports to certain lenders describing the actual use of loans; that the borrower may need to obtain approval to engage in major corporate transactions; and that the borrower may need to obtain approval to increase overseas investments, guarantee additional debt or incur additional debt by an amount which exceeds 20% of its total net assets should the lender determine that such action would have a material impact on the ability of the borrower to repay the loan. The covenants in these loan agreements could prohibit the Company from incurring any additional debt without consent from its lenders. The Company believes it would be able to obtain consents from the lenders in the event it needed to do so. The agreements governing the Company’s loans may also include covenants that, in certain circumstances, may require the Company’s PRC operating subsidiaries to give notice to, or obtain consent from, certain of their lenders prior to making a distribution of net profit, as well as covenants restricting the ability of the Company’s PRC operating subsidiaries from extending loans.