PROMISSORY NOTES PAYABLE
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12 Months Ended | |
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Dec. 31, 2013
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Debt Disclosure [Abstract] | ||
Notes Payable Disclosure [Text Block] | NOTE 12 - PROMISSORY NOTES PAYABLE The promissory notes payable consist of the following unsecured notes. As of December 31, 2013, one of these promissory notes with an outstanding balance of $2,308,974 (2012: $3,853,052) has matured and is currently in default. During the year ended December 31, 2013, the promissory note with a management member of the Company has a principal of $161,736 (RMB1,000,000). This promissory note bears an interest rate of 36% per annum and no fixed term of repayment. As of December 31, 2013, the outstanding principal and accrued interest related to this promissory note amounted to $178,779. The promissory note with a principal of $6,730,779 (RMB42,476,600), which issued to an unrelated third party to finance the Company’s acquisition of real estate properties for the use as our headquarter, is unsecured and interest bearing at a rate of 7% per annum. This promissory note is currently in default. As of December 31, 2013, the principal in default and unpaid interest related to this promissory note amounted to $2,308,974 (2012: $3,853,052). The promissory note with an unrelated third party has a principal of $300,000. This promissory note bears interest at a rate of 15% per annum, is unsecured and has no fixed term of repayment. As of December 31, 2013, the outstanding principal and unpaid interest related to this promissory note amounted to $280,176 (2012:$307,500). The promissory notes with a non-controlling interest of a consolidated subsidiary have an aggregate principal of $948,023 (RMB5,780,000). These promissory notes bear interest at a rate of 15% per annum, are unsecured and have no fixed term of repayment. As of December 31, 2013, the outstanding principals and unpaid interest related to these promissory notes amounted to $1,252,276 (2012: $1,088,219). The promissory note with a non-controlling interest of a consolidated subsidiary has a principal of $820,089 (RMB8,000,000). This promissory note bears interest at a rate of 15% per annum, is unsecured and has no fixed term of repayment. As of December 31, 2013, the outstanding principal and accrued interest related to this promissory note amounted to $1,056,342 (2012: $905,324). During the year ended December 31, 2013, the interest expense related to these promissory notes was $765,171 (2012: $643,711). |