Related Party Transactions

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 13. Related Party Transactions

The following is the list of the related parties to which the Group has transactions with:

(a) Junsheng Zhang, the Chairman of the Company

(b) Harbin Baiyi Real Estate Development Co., Ltd (“Baiyi”), owned by Junsheng Zhang

(c) Heilongjiang Dahua Medicine Wholesale Co., Ltd owned by Junsheng Zhang

(d) Harbin Jiarun Pharmacy Co., Limited owned by Junsheng Zhang

(e) Heilongjiang Province Runjia Medical Equipment Company Limited owned by Junsheng Zhang

(f) Jiarun Super Market Co., Ltd. owned by Junsheng Zhang

(g) Harbin Qi-run pharmacy limited owned by Junsheng Zhang

(h) Yanhua Xing and Weiguang Song, the former shareholder of JHCL

Amount due from related parties

Amount due from related parties consisted of the following as of the periods indicated: 

	March 31,		December 31,
Name of related parties	2016		2015
Harbin Baiyi Real Estate Development Co., Ltd,	$	1,037,005	$	1,030,236
Junsheng Zhang		46,500		46,500
Yanhua Xing		2,450		2,450
Weiguang Song		1,050		1,050
Heilongjiang Dahua Medicine Wholesale Co., Ltd		82,753		-
	$	1,169,758	$	1,080,236

Amount due from Baiyi was mainly represented the deposit for the new outpatient building which was constructed by Baiyi. The Company signed a purchase agreement with Baiyi to acquire the first to eight floor of a building which is under construction by Baiyi and expected to be completed before December 31, 2016. The total amount for the purchased property is approximately RMB63,900,000 ($9,907,975). The Company had paid a deposit of RMB6,500,000 on November 26, 2015, and a further deposit of RMB3,500,000 ($542,690) should be paid before June 30, 2016.

Amount due from Junsheng Zhang, Yanhua Xing and Weiguang Song, who are the prior shareholders of JHCL, was mainly for the paid-in capital to be paid.

Amount due to Heilongjiang Dahua Medicine Wholesale Co., Ltd., was mainly for purchase of medicine.

Amount due to related parties

Amount due to related parties consisted of the following as of the periods indicated: 

	March 31,		December 31,
Name of related parties	2016		2015
Heilongjiang Dahua Medicine Wholesale Co., Ltd	$	-	$	59,424
Harbin Jiarun Pharmacy Co., Ltd		19,190		-
Heilongjiang Province Runjia Medical Equipment Co., Ltd		33,070		32,742
Harbin Qi-run pharmacy Co., Ltd		6,452		-
Junsheng Zhang		10,062		5,162
	$	68,774	$	97,328

Amount due to Heilongjiang Dahua Medicine Wholesale Co., Ltd., Harbin Jiarun Pharmacy Co., Ltd., Harbin Qi-run pharmacy Co., Ltd and Heilongjiang Province Runjia Medical Equipment Company Limited were mainly for the balance for purchase of medicine and medical material from these four companies.

Amounts due to Junsheng Zhang represented the balance paid by Mr. Zhang for the daily operation of the Company.

Related parties’ transactions

Purchase of medicine and medical material from related parties consisted of the following for the periods indicated:

	For three months ended March 31,
Name of related parties	2016		2015
Heilongjiang Dahua Medicine Wholesale Co., Ltd	$	425,928	$	105,741
Harbin Jiarun Pharmacy Co., Ltd		40,985		70,240
Heilongjiang Province Runjia Medical Equipment Co., Ltd		32,498		25,326
Harbin Qi-run pharmacy Co., Ltd		2,637		18,341
	$	502,048	$	219,648

Deposits for capital leases and Capital lease obligations

On June 5, 2013, Jiarun entered into a Lease Agreement to lease a new hospital building from Harbin Baiyi Real Estate Development Co., Ltd, which is owned by Junsheng Zhang, a related party. As of March 31, 2016, the company has balance of deposits for capital leases and capital lease obligations of $465,163 and $14,292,257 respectively. As of December 31, 2015, the Company has balance of deposits for capital leases and capital lease obligations of $462,129 and $13,975,067 respectively.