COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2014

COMMITMENTS AND CONTINGENCIES [Text Block]

14. COMMITMENTS AND CONTINGENCIES

The Group has entered into construction for the new factory. The estimated annual capital commitment is as follows:

Year		Amount
2014	$	1,893,450
2015 and thereafter		284,050
Total	$	2,177,500

The Group has entered into operating lease agreements for land, offices and plants. The estimated future rental expense for the last three months of fiscal year 2014 is US$416,880.

The Group is not currently a party to any legal proceeding, investigation or claim which, in the opinion of the management, is likely to have a material adverse effect on the business, financial condition or results of operations.

The Group did not identify any contingency as of September 30, 2014 and December 31, 2013.