10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 0-23015

GREAT CHINA INTERNATIONAL HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Nevada (State or other jurisdiction of incorporation or organization)   87-0450232 (IRS Employer Identification No.)  

C Site 25-26F President Building, No. 69 Heping North Street

Heping District, Shenyang 110003, Peoples Republic of China

(Address of principal executive offices)

0086-24-22813888

(Issuer’s telephone number)

Not Applicable

(Former name, address and fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company (as defined in Rule 12b-3 of the Exchange Act).

Large Accelerated Filer [  ]  Accelerated Filer [  ]  Non-Accelerated Filer [  ]  Smaller Reporting Company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [  ] No [X]

State the number of shares outstanding of each of the issuer’s classes of common equity:  As of September 30, 2015, there were 14,059,966 shares of common stock outstanding.

FORM 10-Q

GREAT CHINA INTERNATIONAL HOLDINGS, INC.

TABLE OF CONTENTS

		Page
PART I.	Item 1.  Financial Information
	Balance Sheet as of September 30, 2015 and December 31, 2014 (Unaudited)	3
	Statements of Operations for the Three-Month and Nine-Month Periods Ended September 30, 2015 and 2014 (Unaudited)	4
	Statements of Cash Flows for the Nine-Month Periods Ended September 30, 2015 and 2014 (Unaudited)	5
	Notes to the Financial Statements	6
	Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
PART II.	Other Information
	Item 6.  Exhibits	17
	Signatures	17

2

GREAT CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2015 AND DECEMBER 31, 2014

(UNAUDITED)

		As of
		September 30, 2015		December 31, 2014
ASSETS
Current assets:
	Cash and cash equivalents	$	9,909,082	$	8,799,261
	Accounts receivable, net		110,523		21,424
	Other receivable, net		700,959		629,956
	Other current assets		18,541		15,374
	Short-term loan receivable, net		-		4,029,269
Total current assets			10,739,105		13,495,284
Long-term loan receivable, net			-		-
Property and equipment, net			215,677		207,295
Rental property, net			36,954,304		40,281,831
Total assets		$	47,909,085	$	53,984,409
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Bank loans	$	6,576,877	$	21,242,304
	Accounts payable		4,456,891		4,566,001
	Accrued expenses		8,991		7,388
	Other payable		2,322,912		2,208,408
	Payable to disposed subsidiaries		819,079		839,013
	Advances from tenants		1,490,410		1,449,792
	Taxes payable		4,328,977		4,535,002
	Total current liabilities		20,004,137		34,847,908
Stockholders' equity:
	Common stock, $.001 par value 50,000,000
	shares authorized, 14,059,966 and 11,759,966 issued and outstanding
	as of September 30, 2015 and December 31, 2014		14,060		11,760
	Additional paid in capital		12,107,856		4,566,156
	Statutory reserve		638,128		638,128
	Accumulated other comprehensive income		4,189,924		4,624,890
	Retained earnings		10,788,733		9,295,567
	Non-controlling interests		166,246		-
	Total stockholders' equity		27,904,948		19,136,501
Total liabilities and stockholders' equity		$	47,909,085	$	53,984,409

  The accompanying notes are integral part of these condensed consolidated financial statements.

3

GREAT CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS

FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2015 and 2014

(UNAUDITED)

		Three-Months Ended September 30				Nine-Months Ended September 30
		2015		2014		2015		2014
Revenues
Consumer products income			923				923
	Rental income	$	1,274,821	$	1,318,008	$	4,167,016	$	4,387,585
	Management fee income		490,802		520,128		1,574,283		1,584,643
	Total revenues		1,766,546		1,838,136		5,742,222		5,972,228
Cost of revenues
Consumer products cost			2,421				2,421
	Rental cost		954,121		1,165,388		3,101,658		3,688,274
	Management fee cost		359,006		286,651		996,506		1,002,976
	Total cost		1,315,549		1,452,039		4,100,586		4,691,250
Gross profit			450,997		386,097		1,641,636		1,280,977
Operation expenses
	Selling expenses		17,228		3,606		30,900		20,853
	General and administrative expenses		389,532		405,898		1,078,609		1,234,512
	Recovery of bad debt		-		-		(1,573,416)		-
	Depreciation and amortization		2,092		7,750		12,188		17,817
	Total operation expenses		408,852		417,254		(451,718)		1,273,182
Income (loss) from operations			42,145		(31,157)		2,093,354		7,796
Other income (expense)
	Disposal of parking lots income		-				-		6,487
	Other income, net		49,908		40,717		241,441		292,803
	Interest and finance costs		(105,795)		(523,930)		(780,956)		(1,575,924)
	Total other expense, net		(55,887)		(483,213)		(539,515)		(1,276,634)
Income (loss) before provision for income taxes			(13,741)		(514,370)		1,553,839		(1,268,838)
Provision for income taxes			-		-		-		-
Net income (loss)			(13,741)		(514,370)		1,553,839		(1,268,838)
Net loss attributable to non-controlling interest			(18,470)		-		(29,245)		-
Net income (loss) attributable to the Company			4,729		(514,370)		1,583,084		(1,268,838)
Other comprehensive income (loss):
	Foreign currency translation adjustment		(509,434)		241,565		(434,966)		(340,271)
Total comprehensive income (loss)		$	(523,175)	$	(272,805)	$	1,118,874	$	(1,609,109)
Comprehensive loss attributable to non-controlling interest			(18,470)		-		(31,137)		-
Comprehensive income (loss) attributable to the Company			(504,705)		(272,805)		1,150,011		(1,609,109)
Earnings (loss) per share attributable to owners of the company
	Basic	$	(0.00)	$	(0.04)	$	0.12	$	(0.14)
	Diluted	$	(0.00)	$	(0.04)	$	0.12	$	(0.14)
Weighted average number of shares outstanding
	Basic		14,059,966		11,759,966		13,392,907		11,759,966
	Diluted		14,059,966		11,759,966		13,392,907		11,759,966

The accompanying notes are integral part of these condensed consolidated financial statements.

4

GREAT CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014

  (UNAUDITED)

		September 30
		2015		2014
Cash flows from operating activities:
Net income (loss)		$	1,553,839	$	(1,268,838)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Net cash provided by operating activities
	Depreciation and amortization		2,382,676		2,480,353
	Recovery of bad debt		(1,573,416)		-
Changes in operating assets and liabilities:
	Accounts receivable and other receivable		(172,330)		(330,700)
	Advances to suppliers		(5,803)		(163,809)
	Other current assets		(3,593)		(936)
	Accounts payable and accrued expenses		163,001		659,195
	Advances from buyers		76,373		(69,231)
	Income and other taxes payable		(100,028)		(46,550)
Net cash provided by operating activities			2,320,719		1,259,484
Cash flows used in investing activities:
	Purchase of property & equipment		(25,497)		(631)
Net cash used in investing activities			(25,497)		(631)
Cash flows from financing activities:
	Loans repayment from the borrowing parties		5,603,031		-
Loans paid to the bank			(14,407,794)		-
	Proceeds from stock issuance, net of offering costs		7,544,000		-
Proceeds from non-controling interest			191,466		-
Net cash used in financing activities			(1,069,297)		-
Effect of exchange differences			(116,104)		14,150
Net increase in cash and cash equivalents			1,109,821		1,273,003
Cash and cash equivalents, beginning of period			8,799,261		7,115,476
Cash and cash equivalents, end of period		$	9,909,082	$	8,388,479
Supplemental disclosures of cash flow information:
	Interest paid	$	790,609	$	1,587,723
	Income taxes	$	-	$	-

The accompanying notes are integral part of these condensed consolidated financial statements.

5

GREAT CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1.             Description of business

Great China International Holdings, Inc., (the “Company”) was incorporated in the State of Nevada on December 4, 1987, under the name of Quantus Capital, Inc. The Company, through its various subsidiaries, is engaged in commercial and residential real estate leasing, management, consulting, investment, development and sales in the city of Shenyang, Liaoning Province, in the People’ Republic of China (“PRC”).

2.             Summary of significant accounting policies

Unaudited Interim Financial Information

The accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods are not necessarily indicative of the results for any future period. These statements should be read in conjunction with the Company's audited financial statements and notes thereto for the fiscal year ended December 31, 2014. The results of the nine months periods ended September 30, 2015 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2015

Principles of consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances within the Company are eliminated in consolidation.

Use of estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Foreign currency translation

The Company uses the United States dollar for financial reporting purposes. The Company’s subsidiaries maintain their books and records in their functional currency - Chinese Yuan Renminbi (CNY) and Japanese Yen, being the primary currency of the economic environment in which their operations are conducted. All assets and liabilities are translated at the current exchange rate, stockholder’s equity are translated at the historical rates and income statement and statement of cash flows items are translated at the average exchange rate for the period. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet. The resulting translation adjustments are reported under other comprehensive as a component of shareholders’ equity.

Cash and cash equivalents

The Company considers all cash on hand and in banks, including accounts in book overdraft positions, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.

6

Allowance for doubtful accounts

The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and other receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of September 30, 2015 and December 31, 2014, the Company reserved $1,774,610 and $1,817,799 respectively, for other receivable bad debt, and $688,925 and $705,691, respectively, for accounts receivable bad debt. The Company also reserved $3,091,762 and $4,778,713 respectively for loans receivable as of September 30, 2015 and December 31, 2014 respectively.

Property and equipment

Property and equipment is being depreciated over the estimated useful lives of the related assets. Depreciation is computed on the straight-line basis over useful lives as follows:

Buildings	8-26 years
Equipment	5 years
Automobile	5 years
Office furniture and fixtures	5 years

Repairs and maintenance costs are normally charged to the statement of operations and other comprehensive income in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset.

Property and equipment are evaluated annually for any impairment in value. Where the recoverable amount of any property and equipment is determined to have declined below its carrying amount, the carrying amount is reduced to reflect the decline in value. There were no property and equipment impairments recognized as of September 30,2015 and December 31, 2014 respectively.

Properties held for rental

Properties include buildings held for rental and land use rights, which are being depreciated over the estimated useful lives of the related assets. Depreciation is computed on the straight-line basis over 20-26 years. As of September 30, 2015 and December 31, 2014, net property held for rental amounted to $36,954,304 and $40,281,831 respectively. Accumulated depreciation of rental properties amounted to $34,928,171 as of September 30, 2015 and $33,350,033 as of December 31, 2014.

Revenue recognition

Rental income and management fee income – The Company recognizes the rental income on the straight-line basis over the terms of the tenancy agreements. The management fee, including the service fee mainly for property management, maintenance and repair, and security, is recognized quarterly over the terms of the tenancy agreements.

Other income

Other income consists of parking lot income, cleaning income and etc. This income was recognized as the services were performed and the settled amount has been paid in accordance with the terms of the agreement.

Earnings (loss) per share

Basic earnings (loss) per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the period.

7

As of September 30, 2015 and December 31, 2014, respectively, there were no outstanding securities or other contracts to issue common stock, such as options, warrants or conversion rights, which would have a dilutive effect on earnings per share. The basic and diluted weighted-average number of common shares are 13,392,907 and 11,759,966 for the nine months ended September 30, 2015 and 2014, respectively.

Stock issuance

On March 27, 2015, the Company completed the sale of 2,300,000 shares of its common stock at a price of US$3.28 per share, or a total of $7,544,000, to two non-U.S. unrelated business entities. The Company had received all proceeds from these two entities.  There are no options or warrants associated, nor conversion features embedded in this transaction.

Income taxes

The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the difference are expected to affect taxable income.

The Company records a valuation allowance for deferred tax assets, if any, based on its estimates of its future taxable income as well as its tax planning strategies when it is more likely than not that a portion or all of its deferred tax assets will not be realized.

Concentrations of business and credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk are cash and cash equivalents, accounts receivable and other receivables arising from its normal business activities. The Company places its cash and cash equivalents in what it believes to be credit-worthy financial institutions. The Company maintains large sums of cash in one bank in United States and two major banks in China. As of September 30, 2015, the balance in US account was $7,190,383 and the aggregate balance in China accounts was $2,340,964.  There is no insurance securing these deposits in China. The Company has a diversified customer base, most of which are in China.

The Company controls credit risk related to accounts receivable through credit approvals, credit limits and monitoring procedures. The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited.

Statement of cash flows

Cash flows from the Company's operations is calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet.

Recent accounting pronouncements

There have been no new accounting pronouncements as the date of September 30, 2015 that are of significance, or potential significance, to the Company.

Reclassifications

Certain amounts in the 2014 financial statements may have been reclassified to conform to the 2015 presentation. These reclassifications had no effect on previously reported results of operations or retained earnings.

8

3.             Going concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of its liabilities in the normal course of business. The Company has a working capital deficit of $9,265,032 and $21,352,624 as of September 30,2015 and December 31, 2014, respectively..

The current year to date working deficit and the impacts of recurring losses in prior years have had a significant negative impact on the financial condition of the Company and raise substantial doubt about the Company’s ability to continue as a going concern.

To address this matter, the Company’s management has taken several actions to provide additional liquidity and reduce expenses going forward. These actions are described in the following paragraphs.

During the nine months ended September 30, 2015, the Company worked with the debtors to recover $5,603,031(RMB35,000,000) of loan receivables, of which $1,600.866(RMB10,000,000) was reserved with bad debt allowance. 

During the nine months ended September 30, 2015, the Company reduced the bank loans from $21,242,304 to $6,576,877. This significantly reduces the interest expenses in the future periods.

The Company is in the process of obtaining informal assurance from our current lender that our short term loans will continue to be renewed and further opening dialog with the lender to convert the short term loans to long term loans.  Additionally, the Company is assessing its ability to increase rental rates for its leasing business in order to generate additional revenue.  Further, the Company is continuing to focus efforts on cost containment to reduce general and administrative expenses.  With its relevant hands-on expertise, the Company also plans to expand operations to include property management. 

The Company recorded a net income of $1,553,839 and a positive cash flow for the nine-month period ended September 30, 2015, that will fund Company operations through the remainder of 2015 as a result of collecting on a loan written off as a bad debt in an earlier period

Management will continue to review all aspects of the business in an effort to improve cash flow and reduce costs and expenses in recurring basis, while continuing to invest, to the extent possible, in new business development for future revenue streams.

Management will also continue to seek additional working capital through debt and equity financing, but there are no assurances that such financings will be available at all, or on terms acceptable to the Company.

Management believes that through the actions to date and possible future actions described above, the Company should have the necessary liquidity to continue its operations at least for the next twelve months, though no assurances can be made in this regard based on uncertainties with respect to the Company’s new revenue streams and the recovery of loan receivables discussed above. The Consolidated Financial Statements have been prepared assuming the Company will continue as a going concern and do not include any adjustments that might result if the Company were unable to do so.

4.             Loans receivable

The company entered into series of collateralized loan agreements with third parties from 2009, the total loan receivable is $0 and $4,029,269 as of September 30, 2015 and December 31, 2014, respectively.

During 2011, the Company entered into a collateralized loan agreement with Beijing Sihai Real Estate Development Ltd.(Sihai), due on November 29, 2013, and then resigned the agreement at the same terms due on November 29, 2015.  The loan bears interest at a variable rate based on the Peoples’ Bank of China lending rate applicable to the period plus 10%. During 2011 to 2015, the Company loaned more money to Sihai through reassigned the agreement and also received part of loan payment from Sihai. As of September 30, 2015, the balance of loan capital was $2,698,408. Although the loan will be due on November 29, 2015, the Company accrued bad debt provision of $2,698,408 with the consideration of uncertain collectability of the remaining loan balance.  The net loan receivable from Sihai, was $0 and $2,764,078 as of September 30, 2015 and December 31, 2014, respectively.

9

During 2011, the Company entered into a collateralized loan agreement with Shenyang Landing Concrete Ltd., pursuant to which, the Company loaned $2,360,123, due on March 27, 2013.  The loan bears interest at a variable rate based on the Peoples’ Bank of China lending rate applicable to the period.  On November 30, 2011, the Company, along with Shenyang Landing Concrete Ltd., reassigned the loan amount to KaiyuanHongyun Concrete Admixture Ltd., with the same terms due on November 30, 2013.  In August 15, 2013, the loan agreement was extended to August 15, 2015, on the same terms. As of the September 30, 2015, the company collected all the loan receivable from KaiyuanHongyun Concrete Admixture Ltd.

During 2009, the Company entered into an uncollateralized loan agreement with ZhongxinGuoan Ltd., pursuant to which the Company loaned $1,966,769 due on October 30, 2011.  The loan bore interest at a variable rate based on the Peoples’ Bank of China lending rate applicable to the period.  During the fourth quarter of 2011, this loan was reassigned to Shenyang Konggang New City Investment Development Ltd., who is working on a development project with ZhongxinGuoan Ltd. The Company had received $1,573,416 (RMB10,000,000)from Shenyang Konggang New City Investment Development Ltd. as of September 30,2015,and the loan balance $393,354 remains uncollateralized ,booked as bad debts by the Company. The loan is due on October 30, 2015 and bears interest at a variable rate based on the Peoples’ Bank of China lending rate applicable to the period.

5.             Property and equipment

Property, Plant & Equipment consisted of the following:

	September 30, 2015		December 31, 2014
Building	$	15,435	$	15,811
Automobile		1,158,647		1,186,845
Office equipment & Furniture		588,298		578,069
Cost of properties and equipments		1,762,380		1,780,725
Accumulated depreciation		(1,546,703)		(1,573,430)
Property and equipment, net	$	215,677	$	207,295

The Company recorded depreciation expense relating to properties held for rental, as well as property and equipment amounting to $2,382,676 and $2,480,353 for the nine months ended September 30,2015 and 2014, respectively, of which, $10,656 and $17,817 were recorded as general and administrative expense, respectively.

As of September 30, 2015, fixed assets and rental property totaling $30,734,690 were pledged as security for various bank loans totaling $6,576,877.

6.             Accrued expenses

Accrued expenses consisted of the following:

	September 30, 2015		December 31,  2014
Payroll and welfare payable	$	4,376	$	2,773
Accrued expenses		4,615		4,615
Total	$	8,991	$	7,388

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7.             Other payables

Other payables consisted of the following:

	September 30, 2015		December 31,   2014
Customer guarantee deposit	$	1,069,737	$	1,146,627
Customer deposit for property decoration		17,284		17,705
Miscellaneous payable		1,235,891		1,044,077
Total	$	2,322,912	$	2,208,408

8.             Tax payables

Tax payables consisted of the following:

	September 30, 2015		December 31,  2014
Income tax payable in Mainland China	$	1,415,200	$	1,449,641
Business tax		605,802		647,510
Land VAT payable		2,360,928		2,418,386
Other levies		(52,953)		19,465
Total	$	4,328,977	$	4,535,002

9.             Payable to disposed subsidiary

The Company had amounts due to a Loyal Best, a previously disposed of entity, as of September 30,2015 and December 31, 2014 in the amount of $819,079 and $839,013, respectively.

10.           Loan Payable

Loans payable (including accrued interest) consisted of the following:

Nature	Due on	Interest per Annum	September 30, 2015		December 31,  2014
Bank loan	6-12-2016	8.775%	$	6,293,662	$	6,446,830
Bank loan	10-13-2016	10.395%		283,215		14,795,474
Less current portion				-		-
			$	6,576,877	$	21,242,304

The above loans are secured by Company rental properties.

For the period ended September 30, 2015 and 2014, the Company’s incurred interest expense of $790,609 and $1,587,723, respectively.

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11.           Statutory reserve

As stipulated by the Company Law of the People’s Republic of China (PRC), net income after taxation can only be distributed as dividends after appropriation has been made for the following:

i.	Making up cumulative prior years’ losses, if any;
ii.	Allocations to the “Statutory Surplus Reserve” of at least 10% of income after tax, as determined under PRC accounting rules and regulations, until the fund amounts to 50% of the Company’s registered capital;
iii.	Allocations of 5% to 10% of income after tax, as determined under PRC accounting rules and regulations, to the Company’s “Statutory Common Welfare Fund”, which is established for the purpose of providing employee facilities and other collective benefits to the Company’s employees; and statutory common welfare fund is no longer required per the new cooperation law executed in 2006; and
iv.	Allocations to the discretionary surplus reserve, if approved in the stockholders’ general meeting.

The Company did not contribute to statutory reserve for the period ended September 30,2015 and 2014, respectively, due to the net loss incurred for its Chinese operation.

12.           Segment information

ASC 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

During 2015 and 2014, the Company was organized into three main business segments: (1) healthcare products and (2) Rental income and Income of management fee of commercial buildings. The following table presents a summary of operating information and certain year-end balance sheet information as of year ended of September 30,2015 and 2014, respectively.

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			September 30
			2015		2014
Revenues from unaffiliated customers:
	Consumer products		$	923	$
	Rental income & Management fee			5,741,299		5,972,228
		Consolidated		5,742,222		5,972,228
Operating income (loss):
	Consumer products			(83,054)
	Rental income & Management fee			2,359,192		115,357
	Corporation (1)			(182,784)		(107,562)
		Consolidated		2,093,354		7,796
Net loss before taxes:
	Consumer products			(82,755)
	Rental income & Management fee			1,819,440		(1,161,060)
	Corporation (1)			(182,846)		(107,778)
		Consolidated		1,553,839		(1,268,838)
Identifiable assets:
	Consumer products			511,170
	Rental income & Management fee			40,156,866		47,387,726
	Corporation (1)			7,241,049		10,620,443
		Consolidated		47,909,085		58,008,169
Depreciation and amortization:
	Rental income & Management fee			2,372,020		2,462,537
	Corporation (1)			10,656		17,817
		Consolidated		2,382,676		2,480,353
Capital expenditures:
	Consumer products			21,290
	Rental income & Management fee			4,196		631
		Consolidated	$	25,486	$	631

(1). Unallocated loss from Operating income (loss) and Net income before provision for income taxes are primarily related to general corporate expenses.

13

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Caution Regarding Forward-Looking Information

The following discussion and analysis should be read in conjunction with our consolidated financial statements prepared in accordance with accounting principles generally accepted in the USA. Unless otherwise indicated, references in this discussion to “we”, “our” and “us” are to Great China International Holdings, Inc., and its subsidiaries.

Any statements in this discussion that are not historical facts are forward-looking statements that involve risks and uncertainties; actual results may differ from the forward-looking statements.  Sentences or phrases that use such words as “believes”, “anticipates”, “plans”, “may”, “hopes”, “can”, “will”, “expects”, “is designed to”, “with the intent”, “potential” and others indicate forward-looking statements, but their absence does not mean that a statement is not forward-looking.  This information may involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by any forward-looking statements.  We do not undertake any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Executive Summary

Great China International Holdings, through its various subsidiaries, is or has been engaged in commercial and residential real estate leasing, management, consulting, investment, development and sales, We conduct all our operation in the People’s Republic of China through our direct and indirect wholly owned subsidiaries; Silverstrand International Holdings Company Limited (“Silverstrand”)., Shenyang Maryland International Industry Company Limited (“Maryland”),Shenyang Ai Zhuang Trading Co., Ltd (“Ai Zhuang”), and Panacea Co., Ltd. Ai Zhuang and Panacea Co., Ltd.were established during the first six months of 2015 to engage in wholesale and retail distribution of consumer products including food products, dietary supplements, household products and publications. Ai Zhuang and Panacea Co., Ltd. had started business operation during the quarter ended September 30, 2015.

Recent Development

Effective April 27, 2015, Great China International Holdings, Inc., entered into a Cooperation Agreement with FT Solution Co., Ltd., a Japanese company.  Pursuant to the Cooperation Agreement, the Company is investing approximately $224,473 (26.5 million Japanese Yen) for approximately 53% of shares in a joint venture which will engage in the distribution of a variety of consumer products including food products, dietary supplements, over-the-counter medications, and daily necessities, etc. It has not started business operation thus far.

Results of Operations

Comparison of operations for the nine months period ended September 30, 2015 and 2014:

The Company had net income of $1,553,839 for the nine months period ended September 30, 2015, which represents an increase in net income by $2,822,677 or 222.5%, compared with a net loss of $1,268,838 in the same period of 2014.  Components resulting in this increase are discussed below.

Revenues decreased by $230,006 or 3.9% from $5,972,228 for the nine months period ended September 30, 2014 to $5,742,222 for the same period of 2015.  The decrease is mainly due to a decrease in rental income by $220,569 or 5.0% from $4,387,585 for the nine months period ended September 30, 2014 to $4,167,016 for the same period of 2015 due to more vacancies in our rental properties.

The cost of revenue decreased by $590,664 or 12.6% from $4,691,250 for the nine months period ended September 30, 2014 to $4,100,586 for the same period of 2015, which is attributed to the decrease of rental cost. 

14

The gross margin for the rental business was 25.5% and 15.9% for the nine months period ended September 30, 2015 and 2014 respectively.  This increase is attributable to the Company's effective cost controlling measure. The gross margin for the management business was 36.7% for the nine months period ended September 30, 2015,which had no change compared to the same period of 2014.  

Selling expenses increased by $10,047 or 48.2% from $20,853 for the nine months period ended September 30, 2014 to $30,900 for the same period of 2015.  This increase mainly due to the sales activity of Ai Zhuang and Panacea Co., Ltd.

General and administrative expenses decreased by $155,903 or 12.6% from $1,234,512 for the nine months period ended September 30, 2014 to  $1,078,609 for the same period of 2015.  The decrease is mainly because the Company strengthened controlling of running expenses payment.

Reversal of bad debt allowance increased by $1,573,416 or 100% for the nine months period ended September 30, 2015 compared with the same period of 2014 due to the Company collected loan of $1,573,416 which was reserved with bad debt allowance, from Shenyang Konggang New City Investment Development Ltd.

Depreciation and amortization was $12,188 and $17,817 for the nine months period ended September 30, 2015 and 2014 respectively.  

Interest and finance costs was $780,956 and $1,575,924 for the nine months period ended September 30, 2015 and 2014 respectively. The decrease is mainly because the Company paid $14,407,794 (RMB90,000,000) to bank in March and June of 2015.

Other income, net decreased by $51,362 from $292,803 for the nine months period ended September 30, 2014 to $241,441 for the same period of 2015.

Cash Flow Discussion

Net cash flows provided by operating activities for the nine months period ended September 30, 2015 and 2014 were $2,320,719 and $1,259,484, respectively.  The increase in net operating activities cash flow amounted to $1,061,235 or 84.3%, which is due primarily to the below factors:

The Company received in advance more cash from tenants, which increased by $145,604 or 210.3% for the nine months period ended September 30, 2015 compared with the same period of 2014;

The change of accounts receivable and other receivable increased by $158,370 or 47.9% for the nine months period ended September 30, 2015 compared with the same period of 2014 due to the Company collected more cash from the customers.

The Company reduced the payment of advance to suppliers, which increased cash $158,006 for the nine months period ended September 30, 2015 compared with the same period of 2014.

Net cash flows used in investing activities were not significant.

Net cash flows used in financing activities were $1,069,297 and $0 for the nine months period ended September 30, 2015 and 2014, respectively.  In 2015 the Company made a bank loan repayment $ 14,407,794 (RMB 90,000,000) to the bank in March and June of 2015 which was substantially offset by the Company’s collection of a loan with a third party in the amount of $5,603,031(RMB 35,000,000) and the proceeds realized by the Company on the sale of common stock for $7,544,000 and a third party investment of $191,466 in the Company’s consumer products joint venture.

Liquidity and Capital Resources

Current liabilities exceeded current assets by $ 9,265,032 as of September 30, 2015.  The Short Term Loans amounted to $6,576,877 (RMB 41,800,000), and accounted for about 71.0% of the working capital deficit.  In March and June 2015, the Company repaid US$14,407,794 (RMB 90,000,000), leaving a remaining principal of US$ 6,576,877 (RMB 41,800,000) . The rest of the Short Term Loan is due in June 2016 and October 2016, and is secured by the Company’s real estate assets.  It has become common practice in China, for banks and companies to renegotiate loan extensions on an annual basis.  This is driven by the ever changing banking regulatory environment and a situation where banks are becoming more conservative.  Under the circumstances, most lending banks have usually worked closely with borrowers for loan extension or restructuring within the administrative guidelines of the government.  As State policies are issued outside the control of the banks in China and form part of the macro and micro-economic measures, many bankers and their customers work together to deal with the situation provided the borrowers are responsible.

15

Contractual Obligations

The following table was a summary of the Company’s contractual obligations as of September 30, 2015:

	Total		Less than one year		1-3 Years		Thereafter
Short-Term Debt	$	6,576,877	$	6,576,877	$	-	$	-
Long-Term Debt		-		-		-		-
Amounts due to related parties		-		-		-		-
Construction commitments		-		-		-		-
Total Contractual Cash Obligations	$	6,576,877	$	6,576,877	$	-	$	-

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PART II.  OTHER INFORMATION.

Item 6.    Exhibits.

Copies of the following documents are included or furnished as exhibits to this report, pursuant to Item 601 of Regulation S-K.

Exhibit No.	SEC Ref. No.	Title of Document
31.1	31	The certification of chief executive officer and chief financial officer required by Rule 13a-14(a) or Rule 15d-14(a)
32.1	32	The certifications required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350

SIGNATURES

In accordance with the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	GREAT CHINA INTERNATIONAL HOLDINGS, INC.
Date: November 16, 2015	By:	/s/ Frank Jiang
		Frank Jiang, CEO (Principal Executive Officer) (Principal Financial and Accounting Officer)

17

EX-31.1

Certification

I, Frank Jiang, certify that:

1.           I have reviewed this quarterly report on Form 10-Q of Great China International Holdings, Inc. for the period ended September 30, 2015;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) of the registrant and have:

(a)           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)           Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)           Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.           The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)           Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 16, 2015	By:	/s/ Frank Jiang
		Frank Jiang, CEO (Principal Executive Officer) (Principal Financial and Accounting Officer)

EX-32.1

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002.

In connection with the Quarterly Report of Great China International Holdings, Inc. (the “Company”) on Form 10-Q for the period ending September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Frank Jiang, Principal Executive Officer and Principal Financial and Accounting Officer of the Company, certify, to the best of my knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 16, 2015	By:	/s/ Frank Jiang
		Frank Jiang, CEO (Principal Executive Officer) (Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to Great China International Holdings, Inc. and will be retained by Great China International Holdings, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certifications are being furnished solely to accompany the Report pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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9. Payable to disposed subsidiary (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Payable To Disposed Subsidiary Details Narrative
Amount due to related party	$ 819,079	$ 839,013

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12. Segment information (Tables)

9 Months Ended

Sep. 30, 2015

Segment Information Tables

Segment Information

			September 30
			2015		2014
Revenues from unaffiliated customers:
	Consumer products		$	923
	Rental income & Management fee			5,741,299		5,972,228
		Consolidated	$	5,742,222		5,972,228
Operating income (loss):
	Consumer products		$	(83,054)
	Rental income & Management fee			2,359,192		115,357
	Corporation (1)			(182,784)		(107,562)
		Consolidated	$	2,093,354		7,796
Net loss before taxes:
	Consumer products		$	(82,755)
	Rental income & Management fee			1,819,440		(1,161,060)
	Corporation (1)			(182,846)		(107,778)
		Consolidated	$	1,553,839		(1,268,838)
Identifiable assets:
	Consumer products			511,170
	Rental income & Management fee			40,156,866		47,387,726
	Corporation (1)			7,241,049		10,620,443
		Consolidated	$	47,909,085		58,008,169
Depreciation and amortization:
	Rental income & Management fee			2,372,020		2,462,537
	Corporation (1)			10,656		17,817
		Consolidated	$	2,382,676		2,480,353
Capital expenditures:
	Consumer products			21,290
	Rental income & Management fee			4,196		631
		Consolidated	$	25,486		631

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4. Loans receivable

9 Months Ended

Sep. 30, 2015

Loans and Leases Receivable Disclosure [Abstract]

4. Loans receivable

The company entered into series of collateralized loan agreements with third parties from 2009, the total loan receivable is $0 and $4,029,269 as of September 30, 2015 and December 31, 2014, respectively.

During 2011, the Company entered into a collateralized loan agreement with Beijing Sihai Real Estate Development Ltd.(Sihai), due on November 29, 2013, and then resigned the agreement at the same terms due on November 29, 2015.  The loan bears interest at a variable rate based on the Peoples’ Bank of China lending rate applicable to the period plus 10%. During 2011 to 2015, the Company loaned more money to Sihai through reassigned the agreement and also received part of loan payment from Sihai. As of September 30, 2015, the balance of loan capital was $2,698,408. Although the loan will be due on November 29, 2015, the Company accrued bad debt provision of $2,698,408 with the consideration of uncertain collectability of the remaining loan balance.  The net loan receivable from Sihai, was $0 and $2,764,078 as of September 30, 2015 and December 31, 2014, respectively.

During 2011, the Company entered into a collateralized loan agreement with Shenyang Landing Concrete Ltd., pursuant to which, the Company loaned $2,360,123, due on March 27, 2013.  The loan bears interest at a variable rate based on the Peoples’ Bank of China lending rate applicable to the period.  On November 30, 2011, the Company, along with Shenyang Landing Concrete Ltd., reassigned the loan amount to KaiyuanHongyun Concrete Admixture Ltd., with the same terms due on November 30, 2013.  In August 15, 2013, the loan agreement was extended to August 15, 2015, on the same terms. As of the September 30, 2015, the company collected all the loan receivable from KaiyuanHongyun Concrete Admixture Ltd.

During 2009, the Company entered into an uncollateralized loan agreement with ZhongxinGuoan Ltd., pursuant to which the Company loaned $1,966,769 due on October 30, 2011.  The loan bore interest at a variable rate based on the Peoples’ Bank of China lending rate applicable to the period.  During the fourth quarter of 2011, this loan was reassigned to Shenyang Konggang New City Investment Development Ltd., who is working on a development project with ZhongxinGuoan Ltd. The Company had received $1,573,416 (RMB10,000,000)from Shenyang Konggang New City Investment Development Ltd. as of September 30,2015,and the loan balance $393,354 remains uncollateralized ,booked as bad debts by the Company. The loan is due on October 30, 2015 and bears interest at a variable rate based on the Peoples’ Bank of China lending rate applicable to the period.

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5. Property and equipment (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Property And Equipment Details
Building	$ 15,435	$ 15,811
Automobile	1,158,647	1,186,845
Office equipment & Furniture	588,298	578,069
Cost of properties and equipments	1,762,380	1,780,725
Accumulated depreciation	(1,546,703)	(1,573,430)
Property and equipment, net	$ 215,677	$ 207,295

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3. Going concern (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Going Concern Details Narrative
Working capital deficit	$ 9,265,032		$ 9,265,032		$ 21,352,624
Incurred net loss	$ 13,741	$ 514,370	$ (1,553,839)	$ 1,268,838	$ 4,313,420

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6. Accrued expenses (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Accrued Expenses Details
Payroll and welfare payable	$ 4,376	$ 2,773
Accrued expenses	4,615	4,615
Total	$ 8,991	$ 7,388

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7. Other payables (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Other Payables Details
Customer guarantee deposit	$ 1,069,737	$ 1,146,627
Customer deposit for property decoration	17,284	17,705
Miscellaneous payable	1,235,891	1,044,077
Total	$ 2,322,912	$ 2,208,408

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3. Going concern

9 Months Ended

Sep. 30, 2015

Going Concern

3. Going concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of its liabilities in the normal course of business. The Company has a working capital deficit of $9,265,032 and $21,352,624 as of September 30,2015 and December 31, 2014, respectively..

The current year to date working deficit and the impacts of recurring losses in prior years have had a significant negative impact on the financial condition of the Company and raise substantial doubt about the Company’s ability to continue as a going concern.

To address this matter, the Company’s management has taken several actions to provide additional liquidity and reduce expenses going forward. These actions are described in the following paragraphs.

During the nine months ended September 30, 2015, the Company worked with the debtors to recover $5,603,031(RMB35,000,000) of loan receivables, of which $1,600.866(RMB10,000,000) was reserved with bad debt allowance. 

During the nine months ended September 30, 2015, the Company reduced the bank loans from $21,242,304 to $6,576,877. This significantly reduces the interest expenses in the future periods.

The Company is in the process of obtaining informal assurance from our current lender that our short term loans will continue to be renewed and further opening dialog with the lender to convert the short term loans to long term loans.  Additionally, the Company is assessing its ability to increase rental rates for its leasing business in order to generate additional revenue.  Further, the Company is continuing to focus efforts on cost containment to reduce general and administrative expenses.  With its relevant hands-on expertise, the Company also plans to expand operations to include property management. 

The Company recorded a net income of $1,553,839 and a positive cash flow for the nine-month period ended September 30, 2015, that will fund Company operations through the remainder of 2015 as a result of collecting on a loan written off as a bad debt in an earlier period

Management will continue to review all aspects of the business in an effort to improve cash flow and reduce costs and expenses in recurring basis, while continuing to invest, to the extent possible, in new business development for future revenue streams.

Management will also continue to seek additional working capital through debt and equity financing, but there are no assurances that such financings will be available at all, or on terms acceptable to the Company.

Management believes that through the actions to date and possible future actions described above, the Company should have the necessary liquidity to continue its operations at least for the next twelve months, though no assurances can be made in this regard based on uncertainties with respect to the Company’s new revenue streams and the recovery of loan receivables discussed above. The Consolidated Financial Statements have been prepared assuming the Company will continue as a going concern and do not include any adjustments that might result if the Company were unable to do so.

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8. Tax payables (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Tax Payables Details
Income tax payable in Mainland China	$ 1,415,200	$ 1,449,641
Business tax	605,802	647,510
Land VAT payable	2,360,928	2,418,386
Other levies	(52,953)	19,465
Total	$ 4,328,977	$ 4,535,002

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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 9,909,082	$ 8,799,261
Accounts receivable, net	110,523	21,424
Other receivable, net	700,959	629,956
Other current assets	18,541	15,374
Short-term loan receivable, net	0	4,029,269
Total current assets	10,739,105	13,495,284
Long-term loan receivable	0	0
Property and equipment, net	215,677	207,295
Rental property, net	36,954,304	40,281,831
Total assets	47,909,085	53,984,409
Current liabilities:
Bank loans	6,576,877	21,242,304
Accounts payable	4,456,891	4,566,001
Accrued expenses	8,991	7,388
Other payable	2,322,912	2,208,408
Payable to disposed subsidiaries	819,079	839,013
Advances from tenants	1,490,410	1,449,792
Taxes payable	4,328,977	4,535,002
Total current liabilities	20,004,137	34,847,908
Stockholders' equity:
Common stock, $.001 par value 50,000,000 shares authorized, 14,059,966 and 11,759,966 issued and outstanding as of September 30, 2015 and December 31, 2014	14,060	11,760
Additional paid in capital	12,107,856	4,566,156
Statutory reserve	638,128	638,128
Accumulated other comprehensive income	4,189,924	4,624,890
Retained earnings	10,788,733	9,295,567
Non-controlling interests	166,246	0
Total stockholders' equity	27,904,948	19,136,501
Total liabilities and stockholders' equity	$ 47,909,085	$ 53,984,409

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1. Description of business

9 Months Ended

Sep. 30, 2015

Description Of Business

1. Description of business

Great China International Holdings, Inc., (the “Company”) was incorporated in the State of Nevada on December 4, 1987, under the name of Quantus Capital, Inc. The Company, through its various subsidiaries, is engaged in commercial and residential real estate leasing, management, consulting, investment, development and sales in the city of Shenyang, Liaoning Province, in the People’ Republic of China (“PRC”).

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12. Segment information (Details) - USD ($)	Sep. 30, 2015	Sep. 30, 2014
Consumer Products
Revenues from unaffiliated customers	$ 923	$ 0
Operating income (loss)	(83,054)	0
Net income (loss) before taxes	(82,755)	0
Identifiable assets	511,170	0
Capital expenditures	21,290	0
RentalIncomeAndManagementFeeMember
Revenues from unaffiliated customers	5,741,299	5,972,228
Operating income (loss)	2,359,192	115,357
Net income (loss) before taxes	1,819,440	(1,161,060)
Identifiable assets	40,156,866	47,387,726
Depreciation and amortization	2,372,020	2,462,537
Capital expenditures	4,196	631
CorporationMember
Operating income (loss)	(182,784)	(107,562)
Net income (loss) before taxes	(182,846)	(107,778)
Identifiable assets	7,241,049	10,620,443
Depreciation and amortization	10,656	17,817
Consolidated
Revenues from unaffiliated customers	5,742,222	5,972,228
Operating income (loss)	2,093,354	7,796
Net income (loss) before taxes	1,553,839	(1,268,838)
Identifiable assets	47,909,085	58,008,169
Depreciation and amortization	2,382,676	2,480,353
Capital expenditures	$ 25,486	$ 631

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7. Other payables (Tables)

9 Months Ended

Sep. 30, 2015

Other Payables Tables

Other payables

	September 30, 2015		December 31,   2014
Customer guarantee deposit	$	1,069,737	$	1,146,627
Customer deposit for property decoration		17,284		17,705
Miscellaneous payable		1,235,891		1,044,077
Total	$	2,322,912	$	2,208,408

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10. Loan Payable (Tables)

9 Months Ended

Sep. 30, 2015

Loan Payable Tables

Loan Payables

Nature	Due on	Interest per Annum	September 30, 2015		December 31,  2014
Bank loan	6-12-2016	8.775%	$	6,293,662	$	6,446,830
Bank loan	10-13-2016	10.395%		283,215		14,795,474
Less current portion				-		-
			$	6,576,877	$	21,242,304

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2. Summary of significant accounting policies

9 Months Ended

Sep. 30, 2015

Summary Of Significant Accounting Policies

2. Summary of significant accounting policies

Unaudited Interim Financial Information

The accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods are not necessarily indicative of the results for any future period. These statements should be read in conjunction with the Company's audited financial statements and notes thereto for the fiscal year ended December 31, 2014. The results of the nine months periods ended September 30, 2015 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2015

Principles of consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances within the Company are eliminated in consolidation.

Use of estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Foreign currency translation

The Company uses the United States dollar for financial reporting purposes. The Company’s subsidiaries maintain their books and records in their functional currency - Chinese Yuan Renminbi (CNY) and Japanese Yen, being the primary currency of the economic environment in which their operations are conducted. All assets and liabilities are translated at the current exchange rate, stockholder’s equity are translated at the historical rates and income statement and statement of cash flows items are translated at the average exchange rate for the period. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet. The resulting translation adjustments are reported under other comprehensive as a component of shareholders’ equity.

Cash and cash equivalents

The Company considers all cash on hand and in banks, including accounts in book overdraft positions, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.

Allowance for doubtful accounts

The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and other receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of September 30, 2015 and December 31, 2014, the Company reserved $1,774,610 and $1,817,799 respectively, for other receivable bad debt, and $688,925 and $705,691, respectively, for accounts receivable bad debt. The Company also reserved $3,091,762 and $4,778,713 respectively for loans receivable as of September 30, 2015 and December 31, 2014 respectively.

Property and equipment

Property and equipment is being depreciated over the estimated useful lives of the related assets. Depreciation is computed on the straight-line basis over useful lives as follows:

Buildings	8-26 years
Equipment	5 years
Automobile	5 years
Office furniture and fixtures	5 years

Repairs and maintenance costs are normally charged to the statement of operations and other comprehensive income in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset.

Property and equipment are evaluated annually for any impairment in value. Where the recoverable amount of any property and equipment is determined to have declined below its carrying amount, the carrying amount is reduced to reflect the decline in value. There were no property and equipment impairments recognized as of September 30,2015 and December 31, 2014 respectively.

Properties held for rental

Properties include buildings held for rental and land use rights, which are being depreciated over the estimated useful lives of the related assets. Depreciation is computed on the straight-line basis over 20-26 years. As of September 30, 2015 and December 31, 2014, net property held for rental amounted to $36,954,304 and $40,281,831 respectively. Accumulated depreciation of rental properties amounted to $34,928,171 as of September 30, 2015 and $33,350,033 as of December 31, 2014.

Revenue recognition

Rental income and management fee income – The Company recognizes the rental income on the straight-line basis over the terms of the tenancy agreements. The management fee, including the service fee mainly for property management, maintenance and repair, and security, is recognized quarterly over the terms of the tenancy agreements.

Other income

Other income consists of parking lot income, cleaning income and etc. This income was recognized as the services were performed and the settled amount has been paid in accordance with the terms of the agreement.

Earnings (loss) per share

Basic earnings (loss) per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the period.

As of September 30, 2015 and December 31, 2014, respectively, there were no outstanding securities or other contracts to issue common stock, such as options, warrants or conversion rights, which would have a dilutive effect on earnings per share. The basic and diluted weighted-average number of common shares are 13,392,907 and 11,759,966 for the nine months ended September 30, 2015 and 2014, respectively.

Stock issuance

On March 27, 2015, the Company completed the sale of 2,300,000 shares of its common stock at a price of US$3.28 per share, or a total of $7,544,000, to two non-U.S. unrelated business entities. The Company had received all proceeds from these two entities.  There are no options or warrants associated, nor conversion features embedded in this transaction.

Income taxes

The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the difference are expected to affect taxable income.

The Company records a valuation allowance for deferred tax assets, if any, based on its estimates of its future taxable income as well as its tax planning strategies when it is more likely than not that a portion or all of its deferred tax assets will not be realized.

Concentrations of business and credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk are cash and cash equivalents, accounts receivable and other receivables arising from its normal business activities. The Company places its cash and cash equivalents in what it believes to be credit-worthy financial institutions. The Company maintains large sums of cash in one bank in United States and two major banks in China. As of September 30, 2015, the balance in US account was $7,190,383 and the aggregate balance in China accounts was $2,340,964.  There is no insurance securing these deposits in China. The Company has a diversified customer base, most of which are in China.

The Company controls credit risk related to accounts receivable through credit approvals, credit limits and monitoring procedures. The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited.

Statement of cash flows

Cash flows from the Company's operations is calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet.

Recent accounting pronouncements

There have been no new accounting pronouncements as the date of September 30, 2015 that are of significance, or potential significance, to the Company.

Reclassifications

Certain amounts in the 2014 financial statements may have been reclassified to conform to the 2015 presentation. These reclassifications had no effect on previously reported results of operations or retained earnings.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Stockholders' equity:
Common stock, par value (in dollars per share)	$ .001	$ .001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	14,059,966	14,059,966
Common stock, shares outstanding (in shares)	11,759,966	11,759,966

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12. Segment information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

12. Segment information

ASC 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

During 2015 and 2014, the Company was organized into three main business segments: (1) healthcare products and (2) Rental income and Income of management fee of commercial buildings. The following table presents a summary of operating information and certain year-end balance sheet information as of year ended of September 30,2015 and 2014, respectively.

			September 30
			2015		2014
Revenues from unaffiliated customers:
	Consumer products		$	923
	Rental income & Management fee			5,741,299		5,972,228
		Consolidated	$	5,742,222		5,972,228
Operating income (loss):
	Consumer products		$	(83,054)
	Rental income & Management fee			2,359,192		115,357
	Corporation (1)			(182,784)		(107,562)
		Consolidated	$	2,093,354		7,796
Net loss before taxes:
	Consumer products		$	(82,755)
	Rental income & Management fee			1,819,440		(1,161,060)
	Corporation (1)			(182,846)		(107,778)
		Consolidated	$	1,553,839		(1,268,838)
Identifiable assets:
	Consumer products			511,170
	Rental income & Management fee			40,156,866		47,387,726
	Corporation (1)			7,241,049		10,620,443
		Consolidated	$	47,909,085		58,008,169
Depreciation and amortization:
	Rental income & Management fee			2,372,020		2,462,537
	Corporation (1)			10,656		17,817
		Consolidated	$	2,382,676		2,480,353
Capital expenditures:
	Consumer products			21,290
	Rental income & Management fee			4,196		631
		Consolidated	$	25,486		631

(1). Unallocated loss from Operating income (loss) and Net income before provision for income taxes are primarily related to general corporate expenses.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2015 shares
Document And Entity Information
Entity Registrant Name	GREAT CHINA INTERNATIONAL HOLDINGS, INC.
Entity Central Index Key	0000828878
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	14,059,966
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015

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2. Summary of significant accounting policies (Policies)

9 Months Ended

Sep. 30, 2015

Summary Of Significant Accounting Policies Policies

Unaudited Interim Financial Information

The accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods are not necessarily indicative of the results for any future period. These statements should be read in conjunction with the Company's audited financial statements and notes thereto for the fiscal year ended December 31, 2014. The results of the nine months periods ended September 30, 2015 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2015.

Principles of consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances within the Company are eliminated in consolidation.

Use of estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Foreign currency translation

The Company uses the United States dollar for financial reporting purposes. The Company’s subsidiaries maintain their books and records in their functional currency - Chinese Yuan Renminbi (CNY) and Japanese Yen, being the primary currency of the economic environment in which their operations are conducted. All assets and liabilities are translated at the current exchange rate, stockholder’s equity are translated at the historical rates and income statement and statement of cash flows items are translated at the average exchange rate for the period. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet. The resulting translation adjustments are reported under other comprehensive as a component of shareholders’ equity.

Cash and cash equivalents

The Company considers all cash on hand and in banks, including accounts in book overdraft positions, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.

Allowance for doubtful accounts

The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and other receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of September 30, 2015 and December 31, 2014, the Company reserved $1,774,610 and $1,817,799 respectively, for other receivable bad debt, and $688,925 and $705,691, respectively, for accounts receivable bad debt. The Company also reserved $3,091,762 and $4,778,713 respectively for loans receivable as of September 30, 2015 and December 31, 2014 respectively.

Property and equipment

Property and equipment is being depreciated over the estimated useful lives of the related assets. Depreciation is computed on the straight-line basis over useful lives as follows:

Buildings	8-26 years
Equipment	5 years
Automobile	5 years
Office furniture and fixtures	5 years

Repairs and maintenance costs are normally charged to the statement of operations and other comprehensive income in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset.

Property and equipment are evaluated annually for any impairment in value. Where the recoverable amount of any property and equipment is determined to have declined below its carrying amount, the carrying amount is reduced to reflect the decline in value. There were no property and equipment impairments recognized as of September 30,2015 and December 31, 2014 respectively.

Properties held for rental

Properties include buildings held for rental and land use rights, which are being depreciated over the estimated useful lives of the related assets. Depreciation is computed on the straight-line basis over 20-26 years. As of September 30, 2015 and December 31, 2014, net property held for rental amounted to $36,954,304 and $40,281,831 respectively. Accumulated depreciation of rental properties amounted to $34,928,171 as of September 30, 2015 and $33,350,033 as of December 31, 2014.

Revenue recognition

Rental income and management fee income – The Company recognizes the rental income on the straight-line basis over the terms of the tenancy agreements. The management fee, including the service fee mainly for property management, maintenance and repair, and security, is recognized quarterly over the terms of the tenancy agreements.

Other income

Other income consists of parking lot income, cleaning income and etc. This income was recognized as the services were performed and the settled amount has been paid in accordance with the terms of the agreement.

Earnings (loss) per share

Basic earnings (loss) per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the period.

As of September 30, 2015 and December 31, 2014, respectively, there were no outstanding securities or other contracts to issue common stock, such as options, warrants or conversion rights, which would have a dilutive effect on earnings per share. The basic and diluted weighted-average number of common shares are 13,392,907 and 11,759,966 for the nine months ended September 30, 2015 and 2014, respectively.

Stock issuance

On March 27, 2015, the Company completed the sale of 2,300,000 shares of its common stock at a price of US$3.28 per share, or a total of $7,544,000, to two non-U.S. unrelated business entities. The Company had received all proceeds from these two entities.  There are no options or warrants associated, nor conversion features embedded in this transaction.

Income taxes

The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the difference are expected to affect taxable income.

The Company records a valuation allowance for deferred tax assets, if any, based on its estimates of its future taxable income as well as its tax planning strategies when it is more likely than not that a portion or all of its deferred tax assets will not be realized.

Concentrations of business and credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk are cash and cash equivalents, accounts receivable and other receivables arising from its normal business activities. The Company places its cash and cash equivalents in what it believes to be credit-worthy financial institutions. The Company maintains large sums of cash in one bank in United States and two major banks in China. As of September 30, 2015, the balance in US account was $7,190,383 and the aggregate balance in China accounts was $2,340,964.  There is no insurance securing these deposits in China. The Company has a diversified customer base, most of which are in China.

The Company controls credit risk related to accounts receivable through credit approvals, credit limits and monitoring procedures. The Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited.

Statement of cash flows

Cash flows from the Company's operations is calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet.

Recent accounting pronouncements

There have been no new accounting pronouncements as the date of September 30, 2015 that are of significance, or potential significance, to the Company.

Reclassifications

Certain amounts in the 2014 financial statements may have been reclassified to conform to the 2015 presentation. These reclassifications had no effect on previously reported results of operations or retained earnings.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME/(LOSS) (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Consumer products income	$ 923	$ 0	$ 923	$ 0
Rental income	1,274,821	1,318,008	4,167,016	4,387,585
Management fee income	490,802	520,128	1,574,283	1,584,643
Total revenues	1,766,546	1,838,136	5,742,222	5,972,228
Cost of revenues
Consumer products cost	2,421	0	2,421	0
Rental cost	954,121	1,165,388	3,101,658	3,688,274
Management fee cost	359,006	286,651	996,506	1,002,976
Total cost	1,315,549	1,452,039	4,100,586	4,691,250
Gross profit	450,997	386,097	1,641,636	1,280,977
Operation expenses
Selling expenses	17,228	3,606	30,900	20,853
General and administrative expenses	389,532	405,898	1,078,609	1,234,512
Recovery of bad debt	0	0	(1,573,416)	0
Depreciation and amortization	2,092	7,750	12,188	17,817
Total operation expenses	408,852	417,254	(451,718)	1,273,182
Income (loss) from operations	42,145	(31,157)	2,093,354	7,796
Other income (expense)
Disposal of parking lots income	0	0	0	6,487
Other income, net	49,908	40,717	241,441	292,803
Interest and finance costs	(105,795)	(523,930)	(780,956)	(1,575,924)
Total other expense	(55,887)	(483,213)	(539,515)	(1,276,634)
Income (loss) before provision for income taxes	(13,741)	(514,370)	1,553,839	(1,268,838)
Provision for income taxes	0	0	0	0
Net loss	(13,741)	(514,370)	1,553,839	(1,268,838)
Net loss attributable to non-controlling interest	(18,470)	0	(29,245)	0
Net income (loss) attributable to the Company	4,729	(514,370)	1,583,084	(1,268,838)
Other comprehensive loss:
Foreign currency translation adjustment	(509,434)	241,565	(434,966)	(340,271)
Total comprehensive income (loss)	(523,175)	(272,805)	1,118,874	(1,609,109)
Comprehensive loss attributable to non-controlling interest	(18,470)	0	(31,137)	0
Comprehensive income (loss) attributable to the Company	$ (504,705)	$ (272,805)	$ 1,150,011	$ (1,609,109)
Loss per share
Basic	$ 0	$ (0.04)	$ 0.12	$ (0.14)
Diluted	$ 0	$ (0.04)	$ 0.12	$ (0.14)
Weighted average number of shares outstanding
Basic	14,059,966	11,759,966	13,392,907	11,759,966
Diluted	14,059,966	11,759,966	13,392,907	11,759,966

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7. Other payables

9 Months Ended

Sep. 30, 2015

Other Payables

7. Other payables

Other payables consisted of the following:

	September 30, 2015		December 31,   2014
Customer guarantee deposit	$	1,069,737	$	1,146,627
Customer deposit for property decoration		17,284		17,705
Miscellaneous payable		1,235,891		1,044,077
Total	$	2,322,912	$	2,208,408

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6. Accrued expenses

9 Months Ended

Sep. 30, 2015

Accrued Expenses

6. Accrued expenses

Accrued expenses consisted of the following:

	September 30, 2015		December 31,  2014
Payroll and welfare payable	$	4,376	$	2,773
Accrued expenses		4,615		4,615
Total	$	8,991	$	7,388

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8. Tax payables (Tables)

9 Months Ended

Sep. 30, 2015

Tax Payables Tables

Tax Payables

	September 30, 2015		December 31,  2014
Income tax payable in Mainland China	$	1,415,200	$	1,449,641
Business tax		605,802		647,510
Land VAT payable		2,360,928		2,418,386
Other levies		(52,953)		19,465
Total	$	4,328,977	$	4,535,002

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2. Summary of significant accounting policies (Tables)

9 Months Ended

Sep. 30, 2015

Summary Of Significant Accounting Policies Tables

Property and equipment

Buildings	8-26 years
Equipment	5 years
Automobile	5 years
Office furniture and fixtures	5 years

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10. Loan Payable

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

10. Loan Payable

Loans payable (including accrued interest) consisted of the following:

Nature	Due on	Interest per Annum	September 30, 2015		December 31,  2014
Bank loan	6-12-2016	8.775%	$	6,293,662	$	6,446,830
Bank loan	10-13-2016	10.395%		283,215		14,795,474
Less current portion				-		-
			$	6,576,877	$	21,242,304

The above loans are secured by Company rental properties.

For the period ended September 30, 2015 and 2014, the Company’s incurred interest expense of $790,609 and $1,587,723, respectively.

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8. Tax payables

9 Months Ended

Sep. 30, 2015

Tax Payables

8. Tax payables

Tax payables consisted of the following:

	September 30, 2015		December 31,  2014
Income tax payable in Mainland China	$	1,415,200	$	1,449,641
Business tax		605,802		647,510
Land VAT payable		2,360,928		2,418,386
Other levies		(52,953)		19,465
Total	$	4,328,977	$	4,535,002

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9. Payable to disposed subsidiary

9 Months Ended

Sep. 30, 2015

Payable To Disposed Subsidiary

9. Payable to disposed subsidiary

The Company had amounts due to a Loyal Best, a previously disposed of entity, as of September 30,2015 and December 31, 2014 in the amount of $819,079 and $839,013, respectively.

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11. Statutory reserve

9 Months Ended

Sep. 30, 2015

Statutory Reserve

11. Statutory reserve

As stipulated by the Company Law of the People’s Republic of China (PRC), net income after taxation can only be distributed as dividends after appropriation has been made for the following:

i.	Making up cumulative prior years’ losses, if any;
ii.	Allocations to the “Statutory Surplus Reserve” of at least 10% of income after tax, as determined under PRC accounting rules and regulations, until the fund amounts to 50% of the Company’s registered capital;
iii.	Allocations of 5% to 10% of income after tax, as determined under PRC accounting rules and regulations, to the Company’s “Statutory Common Welfare Fund”, which is established for the purpose of providing employee facilities and other collective benefits to the Company’s employees; and statutory common welfare fund is no longer required per the new cooperation law executed in 2006; and
iv.	Allocations to the discretionary surplus reserve, if approved in the stockholders’ general meeting.

The Company did not contribute to statutory reserve for the period ended September 30,2015 and 2014, respectively, due to the net loss incurred for its Chinese operation.

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10. Loan Payable (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Less current portion	$ 0	$ 0
Net Loans Payable	6,576,877	21,242,304
BankLoanOneMember
Loans Payable	$ 6,293,662	$ 6,446,830
Due date	Jun. 12, 2016
Interest per Annum	8.775%	8.775%
BankLoanTwoMember
Loans Payable	$ 283,215	$ 14,795,474
Due date	Oct. 13, 2016
Interest per Annum	10.395%	10.395%

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6. Accrued expenses (Tables)

9 Months Ended

Sep. 30, 2015

Accrued Expenses Tables

Accrued Expenses

	September 30, 2015		December 31,  2014
Payroll and welfare payable	$	4,376	$	2,773
Accrued expenses		4,615		4,615
Total	$	8,991	$	7,388

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2. Summary of significant accounting policies (Details)	9 Months Ended
	Sep. 30, 2015
BuildingMember | MinimumMember
Property and equipment useful life	8 years
BuildingMember | MaximumMember
Property and equipment useful life	26 years
EquipmentMember
Property and equipment useful life	5 years
AutomobilesMember
Property and equipment useful life	5 years
FurnitureAndFixturesMember
Property and equipment useful life	5 years

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ 1,553,839	$ (1,268,838)
Net cash provided by operating activities
Depreciation and amortization	2,382,676	2,480,353
Provision for doubtful accounts	(1,573,416)	0
Changes in operating assets and liabilities:
Accounts receivable and other receivable	(172,330)	(330,700)
Advances to suppliers	(5,803)	(163,809)
Other current assets	(3,593)	(936)
Accounts payable and accrued expenses	163,001	659,195
Advances from buyers	76,373	(69,231)
Income and other taxes payable	(100,028)	(46,550)
Net cash provided by operating activities	2,320,719	1,259,484
Cash flows from investing activities:
Purchase of property & equipment	(25,497)	(631)
Net cash used in investing activities	(25,497)	(631)
Cash flows from financing activities:
Loans repayment from the borrowing parties	5,603,031	0
Loans paid to the bank	(14,407,794)	0
Proceeds from stock issuance, net of offering costs	7,544,000	0
Proceeds from non-controling interest	191,466	0
Net cash provided by financing activities	(1,069,297)	0
Effect of exchange differences	(116,104)	14,150
Net increase in cash and cash equivalents	1,109,821	1,273,003
Cash and cash equivalents, beginning of period	8,799,261	7,115,476
Cash and cash equivalents, end of period	9,909,082	8,388,479
Supplemental disclosures of cash flow information:
Interest paid	790,609	1,587,723
Income taxes	$ 0	$ 0

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5. Property and equipment

9 Months Ended

Sep. 30, 2015

Property, Plant and Equipment [Abstract]

5. Property and equipment

Property, Plant & Equipment consisted of the following:

	September 30, 2015		December 31, 2014
Building	$	15,435	$	15,811
Automobile		1,158,647		1,186,845
Office equipment & Furniture		588,298		578,069
Cost of properties and equipments		1,762,380		1,780,725
Accumulated depreciation		(1,546,703)		(1,573,430)
Property and equipment, net	$	215,677	$	207,295

The Company recorded depreciation expense relating to properties held for rental, as well as property and equipment amounting to $2,382,676 and $2,480,353 for the nine months ended September 30,2015 and 2014, respectively, of which, $10,656 and $17,817 were recorded as general and administrative expense, respectively.

As of September 30, 2015, fixed assets and rental property totaling $30,734,690 were pledged as security for various bank loans totaling $6,576,877.

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2. Summary of significant accounting policies (Details Narrative) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Summary Of Significant Accounting Policies
Other receivable bad debt	$ 1,774,610	$ 1,817,799
Accounts receivable bad debt	688,925	705,691
Loans receivable	3,091,762	4,778,713
Properties held for rental	36,954,304	40,281,831
Accumulated depreciation of rental properties	$ 34,928,171	$ 33,350,033

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5. Property and equipment (Tables)

9 Months Ended

Sep. 30, 2015

Property And Equipment Tables

Property and equipment

	September 30, 2015		December 31, 2014
Building	$	15,435	$	15,811
Automobile		1,158,647		1,186,845
Office equipment & Furniture		588,298		578,069
Cost of properties and equipments		1,762,380		1,780,725
Accumulated depreciation		(1,546,703)		(1,573,430)
Property and equipment, net	$	215,677	$	207,295