SHORT-TERM BANK BORROWINGS

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

SHORT-TERM BANK BORROWINGS

9. SHORT-TERM BANK BORROWINGS

 

Short-term bank borrowings consist of the following:

	As of December 31,
	2016		2015
Payable to financial institutions in the PRC:
Demand bank notes:
Equivalent to RMB12,000,000, due 30 March 2016, which is collateralized by its restricted cash and guaranteed by its vendor and bears the handling fee equal to 0.05% of its face value	$	-	$	1,848,800
Equivalent to RMB100,000, due 24 January 2016, which is collateralized by its restricted cash and guaranteed by its vendor and bears the handling fee equal to 0.05% of its face value		-		15,407
Equivalent to RMB200,000, due 24 January 2016, which is collateralized by its restricted cash and guaranteed by its vendor and bears the handling fee equal to 0.05% of its face value		-		30,813
Short-term borrowings:s
Equivalent to RMB28,000,000 with interest rate at 1.2 times of the Bank of China Benchmark Lending Rate, monthly payable, due March 19, 2016, which is guaranteed by its vendor		-		4,313,864
Equivalent to RMB12,000,000 with interest rate at 1.2 times of the Bank of China Benchmark Lending Rate, monthly payable, due March 19, 2016, which is guaranteed by its vendor		-		1,848,799
Equivalent to RMB40,000,000 with interest rate at 1.28 times of the Bank of China Benchmark Lending Rate, monthly payable, due March 20, 2017, which is guaranteed by its vendor		5,760,618		-
Total short-term bank borrowings	$	5,760,618	$	8,057,683

The effective Bank of China Benchmark Lending rate was 4.35% and 4.35% per annum for the years ended December 31, 2016 and 2015.