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LONG-TERM DEBT
 9 Months Ended
Sep. 30, 2014
LONG-TERM DEBT [Text Block]
13.

LONG-TERM DEBT

   
 

Current portions of long-term debt consisted of the following as of September 30, 2014 and December 31, 2013:

      9/30/2014     12/31/2013  
               
  Loans from China Development Bank            
  •        Interest rate at 7.07% per annum due 5/20/2014 $   -   $ 981,933  
  •        Interest rate at 7.07% per annum due 11/20/2014   1,056,327     981,932  
  •        Interest rate at 7.07% per annum due 5/20/2015   1,056,327     -  
  •        Interest rate at 7.07% per annum due 9/24/2015   1,300,093     -  
               
  Loans from Deutsche Investitions-und Entwicklungsgesellschaft mbH (“DEG”)            
  •        Interest rate at 5.510% per annum due 3/15/2014   -     1,875,000  
  •        Interest rate at 5.510% per annum due 9/15/2014   1,875,000     1,875,000  
  •        Interest rate at 5.510% per annum due 3/15/2015   1,875,000     -  
  •        Interest rate at 5.510% per annum due 9/15/2015   1,875,000     -  
               
  BNP Paribas,            
  • Interest rate at 2.30% per annum due 12/20/2014   15,062     -  
  • Interest rate at 3.80% per annum due 3/14/2015   44,215     -  
  • Interest rate at 3.00% per annum due 7/15/2015   24,293     -  
  • Interest rate at 4.20% per annum due 12/20/2016   109,331     -  
               
  CIC Lorient Enterprises,            
  • Interest rate at 2.98% per annum due 12/20/2015   28,789     -  
  • Interest rate at 4.20% per annum due 12/20/2016   107,814     -  
               
  Credit Agricole,            
  • Interest rate at 4.20% per annum due 12/20/2016   107,814     -  
  • Interest rate at 1.85% per annum due 1/25/2017   40,397     -  
               
  LCL Banque et Assurance,            
  • Interest rate at 4.20% per annum due 12/20/2016   107,814     -  
               
  Banque Tarneud,            
  • Interest rate at 3.28% per annum due 10/30/2014   75,997     -  
  • Interest rate at 2.90% per annum due 5/30/2015   93,612     -  
               
    $ 9,792,885   $ 5,713,865  

Non-current portions of long-term debt consisted of the following as of September 30, 2014 and December 31, 2013:

      9/30/2014     12/31/2013  
  Loans from Deutsche Investitions-und Entwicklungsgesellschaft mbH (“DEG”)            
  •        Interest rate at 5.510% per annum due 3/15/2016 $ 1,875,000   $ 5,625,000  
               
  Loans from China Development Bank            
  •        Interest rate at 7.07% per annum due 9/24/2015   -     2,454,831  
               
  BNP Paribas,            
  • Interest rate at 4.20% per annum due 12/20/2016   104,328     -  
               
  CIC Lorient Enterprises,            
  • Interest rate at 2.98% per annum due 12/20/2015   7,332     -  
  • Interest rate at 4.20% per annum due 12/20/2016   141,282     -  
               
  Credit Agricole,            
  • Interest rate at 4.20% per annum due 12/20/2016   141,282     -  
  • Interest rate at 1.85% per annum due 1/25/2017   55,038     -  
               
  LCL Banque et Assurance,            
  • Interest rate at 4.20% per annum due 12/20/2016   141,283     -  
               
  Société Générale,            
  • Interest rate at 2.90% per annum due 5/15/2016   17,745     -  
               
  BPI France,            
  • Interest rate at 3.42% per annum due 12/20/2016   444,050     -  
    $ 2,927,340   $ 8,079,831  

The Company began repaying its loan with DEG in semi-annual installments on September 15, 2012. As of September 30, 2014 and December 31, 2013, the Company has repaid $7,500,000 and $5,625,000 in principal. The loan was collateralized with the following terms:

  (a.)

Create and register a first ranking mortgage in the amount of about USD12,000,000 on its land and building in favor of DEG.

  (b.)

Undertake to provide a share pledge of Mr. Si Chen's, its majority shareholder, shares as the sponsor in the amount of about USD12,000,000 in form and substance satisfactory to DEG

  (c.)

The total amount of the first ranking mortgage as indicated in the Loan Agreement (Article 12(1)(a)) and the value of the pledged shares of Mr. Si Chen (Loan Agreement (Article 12(1)(a))) should be at least USD24,000,000.

  (d.)

Undertake to provide a guarantee from the Shareholder in form and substance satisfactory to DEG.

Non-current portions of notes payable and debentures consisted of the following as of September 30, 2014 and December 31, 2013:

      9/30/2014     12/31/2013  
               
  Note payable issued by Shanghai Pudong Development Bank
•        Interest rate at 5.9% per annum due 12/28/2015 		 
13,000,943 		   
13,092,432 		 
               
  Debenture issued by Guoyuan Securities Co., Ltd.
•       Interest rate at 10% per annum due 8/28/2016 		 
16,251,178 		   
16,365,541 		 
               
  Debenture issued by Daiwa SSC Securities Co. Ltd.
•        Interest rate at 9.5% per annum due 11/8/2015 		 
16,251,178 		   
16,365,541 		 
               
    $ 45,503,299   $ 45,823,514