13. SHORT TERM BANK LOANS

3 Months Ended

Mar. 31, 2013

Short-Term Debt [Abstract]

SHORT TERM BANK LOANS

13.  SHORT TERM BANK LOANS

Short term bank loans included in the condensed consolidated balance sheets as of March 31, 2013 and December 31, 2012 consisted of the following:

	March 31,		December 31,
	2013		2012
	US$		US$
Loan payable, 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, 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%, repaid on March 31, 2013		—		1,926,102
Loan payable, 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		1,932,149		1,926,102
Loan payable, bearing interest at 6.00% per annum, secured by Gannan Feihe’s machinery with a carrying amount of $19,971,107 as of March 31, 2013, payable on July 9, 2013 (ii)		8,050,622		8,025,425
Loan payable, bearing interest at 6.30% per annum, guaranteed by Feihe Dairy, payable on August 29, 2013		3,220,249		3,210,170
Loan payable, bearing interest at 6.30% per annum, guaranteed by Feihe Dairy, payable on September 19, 2013		1,610,124		1,605,084
Loan payable, bearing interest at 6% per annum, secured by Feihe Dairy’s plant and land use rights with a total carrying amount of $15,740,600 as of March 31, 2013, payable on November 18, 2013 (i)		8,050,622		8,025,425
Loan payable, bearing interest at 6% per annum, payable on November 18, 2013 (i)		24,151,867		24,076,273
Loan payable, bearing interest at 6.30% per annum, guaranteed by Feihe Dairy, payable on December 5, 2013		3,220,249		3,210,170
Loan payable, 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		2,576,199		2,568,136
Loan payable, 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		2,576,199		2,568,136
Loan payable, bearing interest at 6% per annum, secured by Feihe Dairy’s buildings with a total carrying amount of $3,332,385 as of March 31, 2013, payable on January 25, 2014 (iii)		6,440,499		—
Total		61,828,779		63,240,345

(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.
(iii)	This loan was granted pursuant to a loan facility letter and has been made available to the Company up to RMB40 million (approximately $6.4 million) until December 18, 2013.

All of the short term bank loans are repayable to banks in the PRC and denominated in RMB and therefore subject to exchange rate fluctuations. As of March 31, 2013, the Company was able to meet all the financial covenants of the above loans.