20. Short Term Bank Loans

12 Months Ended

Dec. 31, 2012

Short Term Bank Loans Disclosure [Text Block]

20. SHORT TERM BANK LOANS

Short term bank loans included in the consolidated balance sheets as of December 31, 2012 and 2011 comprised the following:

	2012		2011
	US$		US$
Loan payable to a bank in PRC, bearing interest at 5.6% per annum, secured by Feihe Dairy’s restricted cash of $6.5 million as of December 31, 2012, due and repaid on January 30, 2013		6,099,322		—
Loan payable to a bank in PRC, bearing interest at 6.94% per annum, secured by Feihe Soybean’s land use rights and buildings with a total carrying amount of $1,440,665 as of December 31, 2012, and an undertaking from Feihe Dairy to maintain debt-asset ratio of not more than 70%, current ratio of at least 100% and quick ratio of at least 50%, payable on July 1, 2013		1,926,102		—
Loan payable to a bank in PRC, bearing interest at 6.94% per annum, and an undertaking to maintain debt-asset ratio of not more than 70%, current ratio of at least 100% and quick ratio of at least 50%, payable on July 1, 2013		1,926,102		—
Loan payable to a bank in PRC, bearing interest at 6.00% per annum, secured by Gannan Feihe’s machinery with a carrying amount of $20,273,576 as of December 31, 2012, payable on July 9, 2013 (ii)		8,025,425		—
Loan payable to a bank in PRC, bearing interest at 6.30% per annum, guaranteed by Feihe Dairy, payable on August 29, 2013		3,210,170		—
Loan payable to a bank in PRC, bearing interest at 6.30% per annum, guaranteed by Feihe Dairy , payable on September 19, 2013		1,605,084		—
Loan payable to a bank in PRC, bearing interest at 6% per annum, secured by Feihe Dairy’s plant and land use rights with a total carrying amount of $15,903,500 as of December 31, 2012, payable on November 18, 2013 (i)		8,025,425		—
Loan payable to a bank in PRC, bearing interest at 6% per annum, payable on November 18, 2013 (i)		24,076,273		—
Loan payable to a bank in PRC, bearing interest at 6.30% per annum, guaranteed by Feihe Dairy, payable on December 5, 2013		3,210,170		—
Loan payable to a bank in PRC, bearing interest at 6.12% per annum, guaranteed by Feihe Dairy and an undertaking from Feihe Dairy to maintain debt-asset ratio of not more than 70%, current ratio of at least 100% and long term investment of not more than 40% of net assets and due on December 3, 2013		2,568,136		—
Loan payable to a bank in PRC, bearing interest at 6.12% per annum, guaranteed by Feihe Dairy and an undertaking from Feihe Dairy to maintain debt-asset ratio of not more than 70%, current ratio of at least 100% and long term investment of not more than 40% of net assets, due on December 3, 2013		2,568,136		—
Loan payable to a bank in PRC, bearing interest at 5.81% per annum, secured by Feihe Dairy’s machinery and an undertaking from Feihe Dairy to maintain debt-to-equity ratio of not more than 70% and current ratio of at least 100%, payable with interest on maturity, due and repaid on January 25, 2012		—		1,429,956
Loan payable to a bank in PRC, bearing interest at 6.31% per annum, secured by machinery, payable with interest on maturity, due and repaid on April 6, 2012		—		5,997,871
Loan payable to a bank in PRC, bearing interest at 6.89% per annum, guaranteed by Feihe Dairy and an undertaking from Gannan Feihe to maintain debt-to-equity ratio of not more than 60% and current ratio of at least 120%, payable with interest on maturity, due and repaid on August 30, 2012		—		3,177,680
Loan payable to a bank in PRC, bearing interest at 6.89% per annum, guaranteed by Feihe Dairy and an undertaking from Gannan Feihe to maintain debt-to-equity ratio of not more than 60% and current ratio of at least 120%, payable with interest on maturity, due on and repaid September 14, 2012		—		1,588,840
Loan payable to a bank in PRC, bearing interest at 6.56% per annum, secured by plant and land, payable with interest on maturity, due and repaid on November 23, 2012		—		7,944,200
Loan payable to a bank in PRC, bearing interest at 6.56% per annum, payable with interest on maturity, due and repaid on November 23, 2012		—		23,832,600
Loan payable to a bank in PRC, bearing interest at 6.89% per annum, guaranteed by Feihe Dairy and an undertaking from Gannan Feihe to maintain debt-to-equity ratio of not more than 60% and current ratio of at least 100% and quick ratio of at least 50%, payable with interest on maturity, due and repaid on December 21, 2012		—		3,177,680
Loan payable to a bank in PRC, bearing interest at a floating interest rate at RMB benchmark deposit interest rates per annum, unsecured and due and repaid on December 26, 2012		—		2,542,144
Loan payable to a bank in PRC, bearing interest at a floating interest rate RMB benchmark deposit interest rate per annum, secured by the plant and land, due and repaid on December 26, 2012		—		2,542,144
Loan payable to a bank in PRC, bearing interest at a floating interest rate at 130% of RMB benchmark deposit interest rate per annum, secured by a property, payable with interest on maturity and an undertaking from Beijing Feihe to maintain current assets of not less than RMB8 million ($1,270,224), net assets of at least RMB2 million ($317,556) and current ratio of at least 100%, due and repaid on December, 30, 2012		—		2,383,260
Total		63,240,345		54,616,375

(i)

These loans were granted pursuant to a loan facility letter and have been made available to the Company up to RMB500 million (approximately $80.3 million) until July 24, 2013. These loans were also secured by a personal guarantee of Mr. Leng You-bin, Chairman, Chief Executive Officer, President, and General Manager of the Group, for a period of one year from November 19, 2012 to November 18, 2013.

(ii)

The loan was also secured by a personal guarantee of Mr. Leng for a period of one year from July 10, 2012 to July 9, 2013.

All of the short term bank loans are denominated in RMB and therefore subject to exchange rate fluctuations. As of December 31, 2012, the Company was able to meet all the financial covenants of the above loans.