Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS (Tables)

v2.4.0.8
RELATED PARTY TRANSACTIONS (Tables)
9 Months Ended
Sep. 30, 2014
Schedule Of Names and Relationship Of Related Parties [Table Text Block]
NOTE 11 – RELATED PARTIES TRANSACTIONS
 
The Company conducted transactions with certain of the Company’s officers and directors, as well as with the following related parties:
 
Name of related parties
 
Relationship
Xinrong Zhuo
 
CEO, Director and major shareholder of the Company, a Family Member*
Ping Lin
 
Spouse of Xinrong Zhuo, a Family Member and shareholder of Hong Long
Panxing Zhuo
 
Father of Xinrong Zhuo, a Family Member
Honghong Zhuo
 
Shareholder of Pingtan Fishing,daughter of Xinrong Zhuo and a Family Member
Qing Lin
 
Brother-in-law of Xinrong Zhuo, a Family Member
Longfei Zhuo
 
Cousin of Xinrong Zhuo
Sunqiang Zhou
 
Brother-in-law of Xinrong Zhuo, a Family Member
Cheng Chen
 
Cousin of Xinrong Zhuo, a Family Member and shareholder of Hong Long
Xiaojie Wu
 
Brother-in-law of Xinrong Zhuo
Xiaoqin Xu
 
An employee of an affiliate company
Xiaomei Yang
 
An employee of the Company and niece of Xinrong Zhuo
Xiaofang Zhuo
 
Cousin of Xinrong Zhuo
Longhua Zhuo
 
Sister of Xinrong Zhuo
Zhiyan Lin
 
Shareholder and legal representative of Pingtan Fishing, a Family Member
Fujian Yihai Investment Co., Ltd.
 
An affiliate company majority owned by Longjie Zhuo, sibling of Xinrong Zhuo
Fuzhou Haifeng Dafu Ocean Fishing Co., Ltd.
 
An affiliate company owned by Longfei Zhuo and Honghong Zhuo
Fujian Lutong Highway Engineering Construction Co., Ltd.
 
An affiliate company majority owned by Xiaojie Wu, brother-in-law of Xinrong Zhuo
  
Name of related parties
 
Relationship
Fujian Haiyi International
Shipping Agency Co., Ltd.
 
An affiliate company to which the Company acted as a trustee equity owner. Haiyi
International is ultimately majority owned and controlled by Sunqiang Zhou
Fujian Xinnong Ocean Fisheries
Development Co., Ltd.
 
An affiliate company to which the Company acted as a trustee equity owner.
Xinnong is ultimately owned and controlled by Xiaojie Wu
Fuzhou Haoyouli Fisheries
Development Co., Ltd.
 
An affiliate company to which the Company acted as trustee equity owner.
Haoyouli is ultimately owned and controlled by Sunqiang Zhou
Fuzhou Honglong Ocean Fishery
Co., Ltd. (“Hong Long”)
 
 An affiliate company majority owned and controlled by Ping Lin
Fujian Province Ocean Fishery Co., Ltd.
 
An affiliate company majority owned and controlled by Fuzhou Honglong Ocean Fishery Co., Ltd.
 PT. Avona Mina Lestari
 
An affiliate company controlled by Xinrong Zhuo family domiciled in Indonesia,
engaged in fishing base management and fishing vessel service
 PT. Dwikarya Reksa Abadi
 
An affiliate company controlled by Xinrong Zhuo family domiciled in Indonesia,
engaged in fishing base management and fishing vessel service
Haifeng Dafu Enterprise
Company Limited
 
An affiliate company ultimately controlled by Xinrong Zhuo and domiciled in the
Hong Kong Special Administrative Region of the PRC (“Hong Kong”)
Hai Yi Shipping Limited
 
An affiliate company ultimately controlled by Xinrong Zhuo and domiciled in
Hong Kong Administrative Region of the PRC (“Hong Kong”)
China Communication Materials
Central and South Co., Ltd.
 
An affiliate company majority-owned by Fujian Lutong Highway Engineering
Fujian International Trading and
Transportation Co., Ltd.
 
An affiliate company owned by Yihai Investment and Longhao Zhuo, sibling of
Xinrong Zhuo and a Family Member
Fuzhou Dongxing Longju Real
Estate Co., Ltd.
 
An affiliate company owned by Xinrong Zhuo
Shenzhen Western Coast
Fisherman Pier Co., Ltd.
 
An affiliate company owned by Xinrong Zhuo
Pingtan Heshun Fuel Co., Ltd.
 
An affiliate company under Xinrong Zhuo’s common control
Fuzhou Hairong Trading Co., Ltd.
 
An affiliate company under Xinrong Zhuo’s common control
 Hong Fa Shipping Limited
 
An affiliate company ultimately owned by Xinrong Zhuo and domiciled in Hong Kong
Administrative Region of the PRC (“Hong Kong”)
 
* Family Member: Pursuant to a Family Agreement executed on November 23, 2004, among Xinrong Zhuo and certain of his family members, Xinrong Zhuo is the sole decision maker of Pingtan Fishing and is responsible for all of Pingtan Fishing’s operation and management, including financial management. The person who subjects to this Family Agreement is called Family Member.
Schedule of Related Party Transactions [Table Text Block]
During the three and nine months ended September 30, 2014 and 2013, purchase from related parties was as follows:
 
 
 
Three Months Ended September
 
Nine Months Ended
 
 
 
30,
 
September 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
(As Restated)
 
 
 
(As Restated)
 
Purchase of fuel, fishing nets and other on board consumables
 
 
 
 
 
 
 
 
 
 
 
 
 
from PT. Avona Mina Lestari
 
$
-
 
$
4,080,300
 
$
-
 
$
15,696,740
 
from Hong Fa Shipping Limited
 
 
7,740,333
 
 
-
 
 
27,957,529
 
 
-
 
from Haifeng Dafu Enterprise Co., Ltd.
 
 
29,491
 
 
-
 
 
29,491
 
 
-
 
from Hai Yi Shipping Ltd.
 
 
254,605
 
 
-
 
 
254,605
 
 
-
 
from PT. Dwikarya Reksa Abadi
 
 
-
 
 
752,850
 
 
-
 
 
752,850
 
 
 
 
8,024,429
 
 
4,833,150
 
 
28,241,625
 
 
16,449,590
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of vessel maintenance service
 
 
 
 
 
 
 
 
 
 
 
 
 
from PT. Avona Mina Lestari
 
 
1,260,652
 
 
1,099,929
 
 
3,581,161
 
 
2,415,303
 
from PT. Dwikarya Reksa Adadi
 
 
1,400,840
 
 
-
 
 
3,955,437
 
 
-
 
 
 
 
2,661,492
 
 
1,099,929
 
 
7,536,598
 
 
2,415,303
 
Purchase of transportation service
 
 
 
 
 
 
 
 
 
 
 
 
 
from Fuzhou Honglong Ocean Fishery Co., Ltd.
 
 
1,735,365
 
 
-
 
 
7,770,602
 
 
-
 
from Haifeng Dafu Enterprise Company Limited
 
 
456,717
 
 
539,144
 
 
1,987,658
 
 
2,263,004
 
from Hai Yi Shipping Limited
 
 
159,220
 
 
-
 
 
929,919
 
 
735,890
 
from Hong Fa Shipping Limited
 
 
563,268
 
 
1,061,852
 
 
2,049,184
 
 
2,231,917
 
from PT. Avona Mina Lestari
 
 
-
 
 
-
 
 
-
 
 
35,149
 
 
 
 
2,914,570
 
 
1,600,996
 
 
12,737,363
 
 
5,265,960
 
Purchase of Indonesia vessel agent service
 
 
 
 
 
 
 
 
 
 
 
 
 
from PT. Avona Mina Lestari (1)
 
 
381,127
 
 
248,479
 
 
1,124,531
 
 
593,516
 
from PT. Dwikarya Reksa Abadi
 
 
335,392
 
 
-
 
 
989,581
 
 
-
 
 
 
$
716,519
 
$
248,479
 
$
2,114,112
 
$
593,516
 
 
(1). PT. Avona Mina Lestari and PT. Dwikarya Reksa Abadi act as Pingtan Fishing’s agent to apply and renew Indonesia fishing licenses and Pingtan Fishing pays the agent service fee to them.
Schedule Of Prepaid Expense, Related Parties [Table Text Block]
At September 30, 2014 and December 31, 2013, prepaid expense – related parties consisted of the following:
 
 
 
September 30, 2014
 
December 31, 2013
 
 
 
 
 
(As Restated)
 
Prepaid fuel cost to Hai Yi Shipping Limited
 
$
1,668,242
 
$
-
 
Prepaid fuel cost to Haifeng Dafu Enterprise
 
 
1,439,600
 
 
-
 
 
 
$
3,107,842
 
$
-
 
Schedule of Deferred Expense, Related Parties [Table Text Block]
At September 30, 2014 and December 31, 2013, deferred expense – related parties amount consisted of the following:
 
 
 
September 30,
 
December 31,
 
 
 
2014
 
2013
 
 
 
 
 
(As Restated)
 
Prepaid fishing licenses application fee to PT. Avona Mina Lestari
 
$
448,211
 
$
-
 
Prepaid fishing licenses application fee to Hong Long
 
 
742,340
 
 
-
 
Deferred vessel maintenance service charge - PT. Avona Mina Lestari
 
 
416,281
 
 
-
 
Deferred vessel maintenance service charge - Hong Long
 
 
629,456
 
 
-
 
 
 
$
2,236,288
 
$
-
 
Schedule Of Accounts Payable, Related Parties [Table Text Block]
At September 30, 2014 and December 31, 2013, accounts payable - related parties amount consisted of the following:
 
Name of related parties
 
September 30, 2014
 
December 31, 2013
 
 
 
 
 
(As Restated)
 
PT. Avona Mina Lestari
 
$
2,443,810
 
$
1,967,151
 
Hong Long
 
 
1,348,821
 
 
6,214,491
 
Hai Yi Shipping Limited
 
 
-
 
 
251,341
 
Haifeng Dafu Enterprise Company Limited
 
 
-
 
 
377,216
 
Hong Fa Shipping Limited
 
 
551,183
 
 
4,996,031
 
Zhiyan Lin
 
 
-
 
 
1,375
 
 
 
$
4,343,814
 
$
13,807,605
 
Schedule Of Due To Related Parties [Table Text Block]
At September 30, 2014 and December 31, 2013, the due to related parties amount consisted of the following:
 
 
 
September 30, 2014
 
December 31, 2013
 
 
 
 
 
(As Restated)
 
Advance from Xinrong Zhuo
 
$
650,000
 
$
-
 
Accrued compensation for Xinrong Zhuo
 
 
3,348
 
 
-
 
Accrued compensation for Roy Yu
 
 
20,000
 
 
-
 
 
 
$
673,348
 
$
-
 
Schedule Of Sales To Related Parties [Table Text Block]
During the three and nine months ended September 30, 2014 and 2013, sales to related party were as follows:
 
 
 
Three Months Ended September
 
Nine Months Ended
 
 
 
30,
 
September 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
(As Restated)
 
 
 
(As Restated)
 
Sale of frozen fish and other marine catches to Shenzhen Western Coast Fisherman Pier Co., Ltd
 
$
-
 
$
32,615
 
$
-
 
$
10,338,269
 
Ping Lin [Member]
 
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
Future minimum rental payments required under the Office Lease is as follows:
 
Twelve-month period Ending September 30:
 
Amount
 
2015
 
$
11,376
 
Hong Fa Shipping Limited [Member]
 
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
Future minimum rental and related administrative service charge payment required under the Service Agreement is as follows:
 
Twelve-month periods ending September 30:
 
Amount
 
2014
 
$
115,340