RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2011

RELATED PARTY TRANSACTIONS

9. RELATED PARTY TRANSACTIONS

As of September 30, 2011, advances from related parties totaled $1,245,913, including $1,384,758 from Erdos (the minority shareholder of Erdos TCH), as an advance for the capital needs of Erdos TCH, but net with receivable from Erdos of $476,601 for maintenance fees and taxes in September, and $37,756 and $300,000 advance from management and CEO of the Company, respectively, which bore no interest, payable on demand. As of December 31, 2010, advances from related parties totaled $1,365,877, including $1,328,763 from Erdos (the minority shareholder of Erdos TCH) as an advance for the capital needs of Erdos TCH and a $37,114 payment by the Company’s management for paying certain operating expenses on behalf of the Company.

Erdos TCH sold all power generation stations through sales type leases to Erdos Metallurgy Co., Ltd., the non-controlling interest. Total sales and interest income for this non-controlling interest was $11.66 million and $5.09 million for the nine months ended September 30, 2011, and $10.33 million and $1.52 million for the same period of 2010; $0.2 million and $1.84 million for three months ended September 30, 2011, and $0.23 million and $0.62 million for the same period of 2010, respectively.