RESTRICTED NET ASSETS

9 Months Ended

Sep. 30, 2014

RESTRICTED NET ASSETS [Text Block]

12. RESTRICTED NET ASSETS

The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of dividends from its PRC subsidiaries. As described in Note 2(i), the net income of the Company’s PRC subsidiaries is distributable only after sufficient appropriation of reserves.

Amounts restricted include paid-in capital and reserve funds of the Company’s PRC subsidiaries as determined pursuant to the PRC accounting standards and regulations, totaling approximately US$51,100,710 and US$50,315,473 as of September 30, 2014 and December 31, 2013, respectively.