RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2015

RELATED PARTY TRANSACTIONS [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 10 – RELATED PARTY TRANSACTIONS

Due from (to) related parties

Amount due from related parties are principally for advances in the normal course of business for parts and suppliers used in manufacturing.

Amount due from related parties are as follows:

	September 30, 2015		December 31, 2014
Sanmen Branch of Zhejiang UFO Automobile Manufacturing Co., Ltd	$	1,273	$	1,427
JAZ		1,291		1,311
Jonway Motor cycle		237		53
Jonway Economy and Trade Co., Ltd.		43
	$	2,844	$	2,791

In addition, amount due from related party included in accounts receivable is as follows:

	September 30, 2015		December 31, 2014
Jonway EV selling Ltd.	$	1,647	$	-

Amount due to related parties are follows:

	September 30, 2015		December 31, 2014
Jonway Group	$	8,469	$	2,648
Jonway Motor Cycle		63		64
Taizhou Huadu		740		652
Shanghai Zapple		36		37
Mr. Wang		-		146
Betterworld		149		149
Taizhou Jonway Electric Vehicle Selling Co., Ltd.				2,306
Zhejiang Jonway Painting Co., Ltd.		326		472
Cathaya Operations Management Ltd.		49		297
Cathaya Management Ltd.		-		350
	$	9,832	$	7,121

Transactions with Jonway Group

Jonway Group is considered as a related party as the Wang Family, one of the principal shareholders of the Company, has controlling interests in Jonway Group. Jonway Group supplies some of plastics spare parts to Jonway Auto and gave guarantees on Jonway short term bank facilities from China-based banks. Jonway made such purchase from Jonway Group for a total of $1,666,217 and $915,000 for the nine months ended September 30, 2015 and 2014, respectively. Jonway made such purchase from Jonway Group for a total of $362,323and $241,000 for the three months ended September 30, 2015 and 2014, respectively.

Jonway Agreement with Zhejiang UFO

Based on a contract by and among the Zhejiang UFO, Jonway Group and Jonway dated as of January 1, 2006, Zhejiang UFO has authorized Jonway to operate its Sanmen Branch to assemble and sell UFO branded SUVs for a period of 10 years starting from January 1, 2006.

According to the contract, Jonway Auto shall pay Zhejiang UFO a variable contractual fee which is calculated based on the number of SUVs that Jonway assembles in the Sanmen Branch every year, at the following rates (historical exchange rate):

The first 3,000 vehicles	$44 per vehicle
Vehicles from 3,001 to 5,000	$30 per vehicle
Vehicles over 5,000	$22 per vehicle

Zhejiang UFO is considered a related party because the Wang Family, who are shareholders of Jonway, has certain non-controlling equity interests in Zhejiang UFO.