Annual report pursuant to Section 13 and 15(d)

RELATED PARTY TRANSACTIONS

v2.4.0.8
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2013
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
16.
RELATED PARTY TRANSACTIONS
 
 
 
Year Ended December 31,
 
 
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
Service fee
 
 
 
 
 
 
 
 
 
 
Hai Yi Shipping Limited (6)
 
$
230,903
 
$
-
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
Sale of frozen fish and other marine catches
 
 
 
 
 
 
 
 
 
 
Shenzhen Western Coast Fisherman Pier Co., Ltd.
 
$
10,372,611
 
$
-
 
$
-
 
Fuzhou Haifeng Dafu Ocean Fishing Co., Ltd.
 
 
-
 
 
4,574,118
 
 
4,312,036
 
Fujian Xinnong Ocean Fisheries Development Co., Ltd.
 
 
-
 
 
8,948,761
 
 
-
 
Cheng Chen
 
 
-
 
 
185,839
 
 
179,378
 
Longhua Zhou
 
 
-
 
 
78,902
 
 
-
 
Total sales
 
$
10,372,611
 
$
13,787,620
 
$
4,491,414
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of fuel, fishing nets and other on board consumables (1)
 
 
 
 
 
 
 
 
 
 
PT. Avona Mina Lestari
 
$
14,746,582
 
$
10,709,195
 
$
3,440,000
 
PT. Dwikarya Reksa Abadi
 
 
757,557
 
 
-
 
 
-
 
Zhiyan Lin
 
 
1,126
 
 
-
 
 
-
 
 
 
 
15,505,265
 
 
10,709,195
 
 
3,440,000
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of fuel, fishing nets and other on board consumables paid on behalf
 
 
 
 
 
 
 
 
 
 
Fuzhou Honglong Ocean Fishery Co., Ltd.
 
 
1,953,494
 
 
3,245,177
 
 
1,037,441
 
Hong Fa Shipping Limited
 
 
16,065,535
 
 
-
 
 
-
 
 
 
 
18,019,029
 
 
3,245,177
 
 
1,037,441
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of vessel maintenance service (2)
 
 
 
 
 
 
 
 
 
 
PT. Avona Mina Lestari
 
 
2,981,043
 
 
1,901,250
 
 
1,602,900
 
PT. Dwikarya Reksa Adadi
 
 
-
 
 
-
 
 
1,675,674
 
 
 
 
2,981,043
 
 
1,901,250
 
 
3,278,574
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of vessel maintenance service paid on behalf
 
 
 
 
 
 
 
 
 
 
Fuzhou Honglong Ocean Fishery Co., Ltd.
 
 
1,196,983
 
 
-
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of transportation service (2)
 
 
 
 
 
 
 
 
 
 
Haifeng Dafu Enterprise Company Limited
 
 
4,122,861
 
 
2,118,321
 
 
237,207
 
Hai Yi Shipping Limited
 
 
1,653,682
 
 
505,154
 
 
352,252
 
Hong Fa Shipping Limited
 
 
3,345,589
 
 
1,016,098
 
 
-
 
PT. Avona Mina Lestari
 
 
35,149
 
 
573,545
 
 
1,402,616
 
 
 
 
9,157,281
 
 
4,213,118
 
 
1,992,075
 
 
 
 
 
Year Ended December 31,
 
 
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
Cold storage warehouse and office rental
 
 
 
 
 
 
 
 
 
 
Ping Lin (5)
 
$
13,678
 
$
5,545
 
$
-
 
Fuzhou Honglong Ocean Fishery Co., Ltd. (3)
 
 
-
 
 
206,498
 
 
488,861
 
 
 
 
13,678
 
 
212,043
 
 
488,861
 
 
 
 
 
 
 
 
 
 
 
 
Indonesia fleet vessel agency fee payable (4)
 
 
 
 
 
 
 
 
 
 
PT. Avona Mina Lestari
 
 
1,042,738
 
 
410,000
 
 
90,000
 
 
 
 
 
 
 
 
 
 
 
 
Crewmen compensation paid on behalf
 
 
 
 
 
 
 
 
 
 
Fuzhou Honglong Ocean Fishery Co., Ltd.
 
 
-
 
 
435,569
 
 
155,569
 
PT. Avona Mina Lestari
 
 
1,125,043
 
 
550,000
 
 
153,156
 
 
 
 
1,125,043
 
 
985,569
 
 
308,725
 
Indonesia fishing licenses paid on behalf
 
 
 
 
 
 
 
 
 
 
PT. Avona Mina Lestari
 
 
1,748,239
 
 
1,155,774
 
 
305,318
 
Total purchases and expenses
 
$
50,789,299
 
$
22,832,126
 
$
10,940,994
 
 
(1)
Fuel, fishing nets and other consumables were sold to Pingtan Fishing.
 
(2)
Vessel maintenance and transportation services were charged to Pingtan Fishing at prices mutually agreed by the related parties and Pingtan Fishing.
 
(3)
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.
 
(4)
Pursuant to a Fishery Cooperative Agreement dated December 31, 2012 with one-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 $20,000, for the period from January 1, 2013 to December 31, 2013, Avona acts as an agent for each of Pingtan Fishing’s fishing vessels. The agreement continues to be executed without disagreement from both parties.
 
(5)
Pingtan Fishing entered into a three-year term office rental lease with Ping Lin on July 31, 2012. The annual lease is $13,678.
 
(6)
On July 1, 2013, the Company entered into a service agreement with Hai Yi Shipping Limited that provided the Company a portion of use of premises located in Hong Kong as office, and clerical and administrative support and consultation services. The agreement will expire on December 31, 2014.