Statutory Reserve

12 Months Ended

Dec. 31, 2016

Statutory Reserve [Abstract]

STATUTORY RESERVE

NOTE 14 – STATUTORY RESERVE

The Company is required to make appropriations to statutory reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (the “PRC GAAP”). Appropriation to the statutory reserve should be at least 10% of the after tax net income determined in accordance with the PRC GAAP until the reserve is equal to 50% of the entities’ registered capital or members’ equity. The profit arrived at must be set off against any accumulated losses sustained by the Company in prior years, before allocation is made to the statutory reserve. Appropriation to the statutory reserve must be made before distribution of dividends to shareholders. The appropriation is required until the statutory reserve reaches 50% of the registered capital. This statutory reserve is not distributable in the form of cash dividends. As of December 31, 2015, the Company appropriated the required 50% of its registered capital to statutory reserve for Dyeing and Heavy Industries. Accordingly, no additional statutory reserve for Dyeing and Heavy Industries are required for the year ended December 31, 2016. Green Power had loss since its establishment. No appropriation to statutory reserves for it was required as it incurred recurring net loss.

For the years ended December 31, 2016 and 2015, statutory reserve activities were as follows: 

	Continuing Operations		Discontinued Operations
	Dyeing		Heavy Industries		Fulland Wind			Total
Balance - December 31, 2014	$	922,527	$	1,168,796	$	1,202,876		$	3,294,199
Addition to statutory reserve		261,269		-		-			261,269
Balance - December 31, 2015		1,183,796		1,168,796		1,202,876			3,555,468
Reclassification of statutory reserve upon sale of subsidiary		-		-		(1,202,876	)		(1,202,876	)
Balance - December 31, 2016	$	1,183,796	$	1,168,796	$	-		$	2,352,592