ACCOUNTS RECEIVABLE

3 Months Ended

Mar. 31, 2015

ACCOUNTS RECEIVABLE [Text Block]

NOTE 10 - ACCOUNTS RECEIVABLE

Accounts receivable are summarized as follows:

		March 31,		December 31,
		2015		2014
Accounts receivable	$	28,679,895	$	15,736,805
Less: Provision for doubtful debts		-		-
Accounts receivable, net	$	28,679,895	$	15,736,805

During the first quarter of 2015 and 2014, the Company sold products to Kandi USA Inc., a company that operates under the trade name of Eliteway Motorsports (“Eliteway”), amounting to $0 and $559,019 respectively. As of March 31, 2015 and December 31, 2014, the outstanding receivable due from Eliteway were $514,626 and $620,410, respectively.

Mr. Hu Wangyuan was the sole shareholder and officer of Eliteway which served as a US importer of the Company's products. Mr. Hu Wangyuan is the adult son of the Company's Chairman and Chief Executive Officer, Mr. Hu Xiaoming. For the quarter ended March 31, 2015 and the year ended December 31, 2014, Eliteway and Mr. Hu Wangyuan were financially independent from the Company. The transactions between the Company and Eliteway were carried out at arm's-length without any preferential terms when compared with other customers at the comparative order size or volume.