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OTHER RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2018

NOTE 8 – OTHER RELATED PARTY TRANSACTIONS

For the nine months ended September 30, 2018 and for the year ended December 31, 2017, the Company received working capital proceeds from the CEO and Chairman of the Company, to pay certain expense to various service providers on behalf of the Company. Such amount is unsecured and repayable on demand with no interest.

As of September 30, 2018 and December 31, 2017, the amount due to CEO and Chairman was $3,592,726 and $2,630,301, respectively.

In connection with the Company’s borrowings of approximately $30.3 million loans from China Construction Bank (Note 5), related party Wuhan Huayuan pledged fixed assets buildings as collaterals to secure these loans.

The Company leased office buildings from related party Wuhan Huayuan (see Note 15).