RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

9. RELATED PARTY TRANSACTIONS

Related parties’ receivables/(payables) consist of the following:

	March 31,		December 31,
	2016		2015
Receivables/(Payables)
Mr. Tan Lin	$	-	$	(1,227,280)
Mr. Wu Xiao Bin		(714,904)		(778,449)
Mr. Yang Yuan Xi		(541,385)		(539,389)
Mr. Wu Zhong Chen		(541,385)		(539,389)
Ms. Lynn Lee		486,387		(547,114)
Total Receivables/(Payables)	$	(1,311,287)	$	(3,631,621)

The relationships of the related parties above as follows:

Name	Relationship
Mr. Tan Lin	Shareholder and General Manager of Fuda UK
Mr. Wu Xiao Bing	CEO, Director, Majority Shareholder of the Company
Mr. Yang Yuan Xi	Legal Representative of Liaoning Fuda
Mr. Wu Zhong Chen	Father of Mr Wu Xiao Bin, Shareholder of the Company
Ms. Lynn Lee	Officer of the Company

The amounts above are advances received from related parties from time to time as working capital to fund for its operations. These advances are due on demand, unsecured and non-interest bearing.

The Company mistakenly paid Ms. Lynn Lee in the amount of $486,387 as expenses reimbursements which was repaid previously. This amount has been returned by the Ms. Lynn Lee to the Company subsequently.

Mr. Xiaobin Wu, the Company’s officer and director, is the Managing Director of Dandong Fuda Investment Co., Ltd (“Fuda Investment”) and Winner International Industries Ltd., (“Winner International”), each of these entities also holds a small (under 5%) interest in the Company. Revenue and Cost of Sales for these entities is shown separately on the Income statement as Revenue and Cost of Sales from Affiliated Entities.

In 2014, the Company acquired land from Fuda Investment for RMB 127,424,700; and from Winner International for RMB 65,965,000. The purchase price of the land was to be paid by stones in a barter trade exchange.

The Company recognized the land purchased (assets transferred) at historical cost because the transactions were not arm-length transactions as they were purchases from affiliated entities so therefore no gain or loss were recognized on the transfer. The Company would review the historical cost of the land to evaluate if there is an impairment loss to be recognized. The barter trade transactions were recognized as a land asset and as accounts payable to the sellers. The revenues were recognized against the outstanding amount owed to the sellers.

Barter trade revenues generated for the three months ended March 31, 2016 and 2015 were $nil and $737,261, respectively.