RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2014

RELATED PARTY TRANSACTIONS [Text Block]

NOTE 15 RELATED PARTY TRANSACTIONS

Other than disclosed elsewhere in these financial statements, the Company also had the following related party balances and transactions:-

(a) Due to related parties

		June 30, 2014		December 31, 2013
Due to Ms. Lianyun Han, Chairperson, CEO and President of the Company	$	452,668	$	265,223

The amount due to Ms. Han was non-interest bearing, unsecured and without a fixed repayment date.

(b) Lease of land

For the six months ended June 30, 2014 and 2013, the Company paid rental expense of $29,445 and $28,959, respectively, for the land leased from Heilongjiang Shuaiyi Technology Development Co., Ltd. (“Shuaiyi Technology”). Shuaiyi Technology and the Company are under common control and management.

For the three months ended June 30, 2014 and 2013, the Company paid rental expense of $14,673 and $14,565 for the land leased from Shuaiyi Technology, respectively.

(c) Acquisition of corporate headquarter premise

On April 15, 2011, Heilongjiang Shuaiyi entered into an asset transfer agreement (the “Transfer Agreement”) with Ms. Han. Pursuant to the Transfer Agreement, Heilongjiang Shuiayi acquired an office building located at 54 - 1 Ganshui Road, Xiangfang District, Harbin, with a construction area of 1854.1 square meters, from Ms. Han at a cash consideration of RMB12.75 million (approximately $1.95 million including other incidental costs), which was fully paid in April 2011. The purchase price was determined based on a real property valuation report issued by an independent appraisal firm, Harbin Guoxin Real Estate Appraisal and Consulting Co., Limited on November 11, 2010 and reflected approximately equal valuation which Ms. Han originally paid when she acquired such property for the Company. Management believes that based on the property valuation report issued by the independent appraisal firm, the terms of the purchase transaction and the consideration that the Company paid in connection with this transaction were comparable to the terms available and the amounts that would be paid in an arm’s-length transaction.

It is the current intention of the Company to move the Company headquarters to this office building in the foreseeable future.