19. RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2013

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

19.  RELATED PARTY TRANSACTIONS

Due from/to related parties included in the condensed consolidated balance sheets as of March 31, 2013 and December 31, 2012 comprised the following:

	March 31,		December 31,
	2013		2012
	US$		US$
Due from related parties
Due from Directors of the Group		20,254		20,191
Due from related companies		3,821		—
Total		24,075		20,191

	March 31,		December 31,
	2013		2012
	US$		US$
Due to related parties
Due to Directors of the Group		87,000		109
Due to related companies		—		3,804
Loan payable to a related party		51,524		51,363
Total		138,524		55,276

Due from/to Director 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 period and amounts outstanding at period end are short term in nature and due on demand. During the three month period ended March 31, 2013, advances to directors aggregated to $78,151 and repayments from directors aggregated to $165,042. During the three month period ended March 31, 2012, advances to directors aggregated to $523,560 and repayments from directors aggregated to $698,080.

As of March 31, 2013 and December 31, 2012, the Group had the following balances due from its director:

	March 31,		December 31,
	2013		2012
	US$		US$
Liu Hua		20,254		20,191

As of March 31, 2013 and December 31, 2012, the Group had the following balances due to its director:

	March 31,		December 31,
	2013		2012
	US$		US$
Liu Sheng-Hui		87,000		109

Due from/to related companies

Mr. Leng You-Bin is the Chairman, Chief Executive Officer, President, and General Manager of the Group. During the three months ended March 31, 2013, and 2012, 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 March 31, 2013 and December 31, 2012, the Group had the following balances due from its related companies:

	March 31,			December 31,
	2013			2012
	US$			US$
Tangshan Feihe Trading Company		1,839,299			1,833,542
Qinhuangdao Feihe Trading Company		28,141			28,054
Dalian Hewang Trading Company		3,821			—
Total		1,871,261			1,861,596
Less: Allowance for doubtful debts		(1,867,440	)		(1,861,596	)
		3,821			—

As of March 31, 2013 and December 31, 2012, the Group had the following balances due to its related company:

	March 31,		December 31,
	2013		2012
	US$		US$
Dalian Hewang Trading Company (i)		—		3,804

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

For the three months ended March 31, 2013 and 2012, the Group made sales of goods to the following related company:

	For the three months ended  March 31,
	2013		2012
	US$		US$
Dalian Hewang Trading Company		121,862		—

Loan payable to related parties

The Group has an outstanding loan payable to a charitable organization established by Leng You-Bin for under privileged children in the Heilongjiang province of the PRC of $51,524 and $51,363 as of March 31, 2013 and December 31, 2012, respectively. The loan is unsecured and bears interest at 5.85% per annum and is payable on demand.