28. Related Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions Disclosure [Text Block]

28. RELATED PARTY TRANSACTIONS

(1) Due from /to related parties

Due from/to related parties included in the consolidated balance sheets as of December 31, 2012 and 2011 comprised the following:

	2012		2011
	US$		US$
Due from related parties:
Due from Directors of the Group		20,191		194,759
Total		20,191		194,759

	2012		2011
	US$		US$
Due to related parties:
Due to directors of the Group		109		31,777
Due to related company		3,804		3,593
Loan payable to a related party		51,363		50,843
Total		55,276		86,213

Due from/to Directors of the Group

As part of normal business operations, Directors of the Group will from time to time incur routine expenses on behalf of the Group, or receive general advances from the Group for settlement of Group expenses, such as travel, meals, and other business expenses. The amounts advanced are settled periodically throughout the year and amounts outstanding at year end are short term in nature and due on demand. During 2012, advances to directors aggregated to $873,468 and payments from directors aggregated to $1,047,922. During 2011, advances to directors aggregated to $271,820 and repayments to directors aggregated to $129,797.

As of December 31, 2012 and 2011, the Group had the following balances due from its Directors:

	2012		2011
	US$		US$
Leng You-Bin		—		79,442
Liu Sheng-Hui		—		95,330
Liu Hua		20,191		19,987
Total		20,191		194,759

As of December 31, 2012 and 2011, the Group had the following balances due to its Directors:

	2012		2011
	US$		US$
Liu Sheng-Hui		109		—
Leng You-Bin		—		31,777
Total		109		31,777

Due from/to related companies

Mr. Leng You-Bin is the Chairman, Chief Executive Officer, President, and General Manager of the Group. During the years ended December 31, 2012, 2011 and 2010, the Group had certain transactions on an arm’s length basis with companies owned by close family members of Mr. Leng.

Tangshan Feihe Trading Company and Qinhuangdao Feihe Trading Company are owned by relatives of Mr. Leng, and are therefore regarded as related parties.

As of December 31, 2012 and 2011, the Group had the following balances due from its related companies:

	2012			2011
	US$			US$
Tangshan Feihe Trading Company		1,833,542			1,814,985
Qinhuangdao Feihe Trading Company		28,054			27,770
Total		1,861,596			1,842,755
Less: Allowance for doubtful debts		(1,861,596	)		(1,842,755	)
		—			—

As of December 31, 2012 and 2011, the Group had the following balance due to its related company:

	2012		2011
	US$		US$
Dalian Hewang Trading Company (i)		3,804		3,593
Total		3,804		3,593

(i) A company managed by the management of the Company’s subsidiary.

(2) Sales to related parties

For the years ended December 31, 2012, 2011 and 2010, the Group made sales of goods to the following related companies:

	2012		2011		2010
	US$		US$		US$
Tangshan Feihe Trading Company		—		—		1,562,374
Dalian Hewang Trading Company		276,242		205,880		197,345
Total		276,242		205,880		1,759,719

Loan payable to a related party

The Group has an outstanding loan payable to a charitable organization established by Mr. Leng for under privileged children in the Heilongjiang province of the PRC of $51,363 and $50,843 as of December 31, 2012 and 2011, respectively. The loan is unsecured, bears interest at 5.85% per annum and is payable on demand.