Quarterly report pursuant to sections 13 or 15(d)

RELATED PARTY TRANSACTIONS (Tables)

v2.4.0.8
RELATED PARTY TRANSACTIONS (Tables)
6 Months Ended
Jun. 30, 2013
China Dredging Group Co Ltd [Member]
 
Schedule of Related Party Transactions [Table Text Block]
China Dredging
 
 
 
For the Three Months Ended
June 30,
 
For the Six Months Ended
June 30,
 
 
 
2013
 
2012
 
2013
 
2012
 
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
Office rental Ping Lin (1)
 
$
13,881
 
$
13,583
 
$
26,626
 
$
26,055
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hire charge of crew Fujian Haiyi International
    Shipping Agency Co., Ltd (2)
 
 
116,228
 
 
273,826
 
 
231,124
 
 
549,125
 
 
 
$
130,109
 
$
287,409
 
$
257,750
 
$
575,180
 
 
 
(1)
CDGC’s VIE, Fujian Service, entered into an office rental agreement in 2008 with Ping Lin, a relative of one of the former owners, Qing Lin, which will expire on December 31, 2015. Fujian Wanggang and Wonder Dredging also entered into office rental agreements in 2010 with Ping Lin. The office rental agreements between Fujian Wanggang and Ping Lin, and Wonder Dredging and Ping Lin will expire on June 9, 2014 and April 30, 2014, respectively.
 
 
 
 
(2)
Fujian Service entered into four crew hire agreements with Fujian Haiyi International Shipping Agency Co., Ltd which is ultimately majority-owned and controlled by Sunqiang Zhou, brother-in-law of Xinrong Zhuo. One of the agreements expired in July 2012 and the others will expire in 2014.
Pingtan Marine Enterprise [Member]
 
Schedule of Related Party Transactions [Table Text Block]
Merchant Supreme
 
 
 
For the Three Months Ended
June 30,
 
For the Six Months Ended
June 30,
 
 
 
2013
 
2012
 
2013
 
2012
 
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
Sale of frozen fish and other marine catches
 
 
 
 
 
 
 
 
 
 
 
 
 
Shenzhen Western Coast Fisherman Pier
    Co., Ltd.
 
$
2,341,114
 
$
-
 
$
10,305,654
 
$
-
 
Fuzhou Haifeng Dafu Ocean Fishing
    Co., Ltd. (1)
 
 
-
 
 
1,026,086
 
 
-
 
 
4,571,567
 
Fujian Xinnong Ocean Fisheries Development
    Co., Ltd.
 
 
-
 
 
3,358,713
 
 
-
 
 
8,941,674
 
Total sales
 
$
2,341,114
 
$
4,384,799
 
$
10,305,654
 
$
13,513,241
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of fuel, fishing nets and other on
    board consumables (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
Fuzhou Honglong Ocean Fishery Co., Ltd.
 
$
419,909
 
$
494,728
 
$
1,018,331
 
$
909,033
 
PT. Avona Mina Lestari
 
 
4,402,490
 
 
1,806,771
 
 
11,616,440
 
 
1,806,771
 
 
 
 
4,822,399
 
 
2,301,499
 
 
12,634,771
 
 
2,715,804
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of vessel maintenance service (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
PT. Avona Mina Lestari
 
 
710,708
 
 
631,553
 
 
1,315,374
 
 
1,266,504
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of transportation service (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
Haifeng Dafu Enterprise Company Limited
 
 
1,248,310
 
 
536,726
 
 
1,723,860
 
 
1,019,263
 
Hai Yi Shipping Limited
 
 
263,737
 
 
-
 
 
735,890
 
 
158,234
 
Hongfa Shipping Limited
 
 
604,291
 
 
-
 
 
1,170,065
 
 
-
 
PT. Avona Mina Lestari
 
 
-
 
 
31,725
 
 
35,149
 
 
244,029
 
 
 
 
2,116,338
 
 
568,451
 
 
3,664,964
 
 
1,421,526
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cold storage warehouse and office rental
    Ping Lin (6)
 
 
3,417
 
 
-
 
 
6,795
 
 
-
 
Fuzhou Honglong Ocean Fishery Co., Ltd. (4)
 
 
-
 
 
67,739
 
 
-
 
 
193,142
 
 
 
 
3,417
 
 
67,739
 
 
6,795
 
 
193,142
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indonesia fleet vessel agency fee payable (5)
 
 
 
 
 
 
 
 
 
 
 
 
 
PT. Avona Mina Lestari
 
 
172,595
 
 
56,866
 
 
345,037
 
 
104,487
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Crewmen compensation paid on behalf
    Fuzhou Honglong Ocean Fishery Co., Ltd.
 
 
-
 
 
131,785
 
 
-
 
 
232,980
 
PT. Avona Mina Lestari
 
 
-
 
 
82,500
 
 
-
 
 
220,000
 
 
 
 
-
 
 
214,285
 
 
-
 
 
452,980
 
Indonesia fishing licenses paid on behalf
 
 
 
 
 
 
 
 
 
 
 
 
 
PT. Avona Mina Lestari
 
 
293,600
 
 
132,836
 
 
586,448
 
 
237,737
 
Total purchases and expenses
 
$
8,119,057
 
$
3,973,229
 
$
18,553,389
 
$
6,392,180
 
 
 
(1)
On January 4, 2012, Merchant Supreme’s VIE, Pingtan Fishing, and Haifeng Dafu entered into a sale agreement. Pingtan Fishing sold Haifeng Dafu 2,193,820 kilograms of frozen hairtail, at price of $2.08 per kilogram, for a total consideration of $4,570,497.
 
 
 
 
(2)
Fuel, fishing nets and other consumables were sold to Pingtan Fishing at prevailing market prices.
 
 
 
 
(3)
Vessel maintenance and transportation services were charged to Pingtan Fishing at prices mutually agreed by the related parties and Pingtan Fishing.
 
 
 
 
(4)
The Company sub-leased office area and cold storage warehouse cells from Hong Long. Pursuant to an Office Space Rental and Staff Dispatch Agreement entered into on January 1, 2010 with a three-year term, annual lease and facilities expenses are RMB1,000,000. Cold storage warehouse cell sub-lease contracts were entered into simultaneously with Hong Long’s lease contracts with the third party lessor, which are renewed every 12-to-16 months. The agreements were terminated on July 31, 2012.
 
 
 
 
(5)
Pursuant to Fishing Vessel Administrative Agency Agreement dated December 28, 2009, followed by a Fishery Cooperative Agreement dated July 1, 2011 with a two-year term, entered into between Pingtan Fishing and Avona, Pingtan Fishing is payable to Avona an annual agency fee, calculated at mutually agreed amount of $10,000 and $20,000, for the period from January 1, 2010 to June 30, 2011, and for the period from July 1, 2011 to July 1, 2013, respectively, for each of Pingtan Fishing’s fishing vessels Avona acts as an agent.
 
 
 
 
(6)
Pingtan Fishing leased office from Ping Lin. Pursuant to a rental agreement entered into on July 31, 2012 with three-year term, annual lease is $13,590.