RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2016

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 (in thousands):

	March 31, 2016		December 31, 2015
Sanmen Branch of Zhejiang UFO Automobile Manufacturing Co., Ltd	$	1,015	$	998
Jonway Economy and Trade Co., Ltd.		620		616
	$	1,635	$	1,614

In addition, accounts receivable included in accounts receivable due from related parties as follows (in thousands):

	March 31, 2016		December 31, 2015
Jonway EV selling Ltd.	$	4,379	$	4,659
Sanmen Branch of Zhejiang UFO Automobile Manufacturing Co., Ltd		160		212
Jonway Motorcycle		302		301
	$	4,841	$	5,172

Amount due to related parties are follows (in thousands):

	March 31, 2016		December 31, 2015
Jonway Group	$	14,064	$	12,606
Jonway Motor Cycle		64		64
Taizhou Huadu		1,096		846
Shanghai Zapple		35		35
Mr. Alex Wang		74		74
Mr. Huaiyi Wang		14		-
Betterworld		149		149
Zhejiang Jonway Painting Co., Ltd.		23		11
Cathaya Operations Management Ltd.		241		193
	$	15,760	$	13,978

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 $0.6 million and $0.8 million as for the three months ended March 31, 2016 and 2015, 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.  For the three months ended March 31, 2016 and 2015, $0.1 million and $Nil were recorded as assembling fees, respectively.

  Other Related Party Transactions

For the three months ended March 31, 2016, Jonway purchased parts in amount of $0.4 million and $1.8 million from Jonway Motor Cycle and Taizhou Huadu, respectively. For the three months ended March 31, 2015, Jonway did not purchased spare parts from Jonway Motor Cycle and Taizhou Huadu.