Quarterly report pursuant to Section 13 or 15(d)

LOAN RECEIVABLES

v3.7.0.1
LOAN RECEIVABLES
6 Months Ended
Jun. 30, 2017
Receivables [Abstract]  
Financing Receivables [Text Block]
5. LOAN RECEIVABLES
 
The following table sets forth a summary of the loan agreements in loan receivables balance:
 
 
 
 
 
 
 
Original
 
June 30,
 
December 31,
 
Annual
 
 
 
 
 
 
 
 
Amount
 
2017
 
2016
 
Interest
 
Repayment
Date
 
Borrower
 
Lender
 
(RMB)
 
(USD)
 
(USD)
 
Rate
 
Due Date
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
7/15/2016
 
Xiaohui Wang
 
Shanghai Takung
 
 
10,080,000
 
$
-
 
$
1,451,822
 
 
0
%
3/31/2017
8/24/2016
 
Xiaohui Wang
 
Shanghai Takung
 
 
13,350,000
 
$
-
 
$
1,922,800
 
 
0
%
3/31/2017
11/14/2016
 
Xiaohui Wang
 
Shanghai Takung
 
 
10,275,000
 
$
1,515,643
 
$
1,479,908
 
 
0
%
10/31/2017
12/9/2016
 
Xiaohui Wang
 
Tianjin Takung
 
 
10,550,000
 
$
1,556,208
 
$
1,519,516
 
 
0
%
11/30/2017
1/4/2017
 
Xiaohui Wang
 
Tianjin Takung
 
 
24,461,505
 
$
3,608,264
 
$
-
 
 
0
%
12/31/2017
 
 
 
 
 
 
 
Total
 
$
6,680,115
 
$
6,374,046
 
 
 
 
 
 
All the transactions were aimed to meet the Company’s working capital needs in US Dollars.
  
 
The interest-free loans (the “RMB Loans”) that Shanghai Takung and Tianjin Takung entered were guaranteed by Chongqing Wintus (New Star) Enterprises Group (“Chongqing”). Xiaohui Wang (“Ms. Wang”) is a national of the People’s Republic of China. Ms. Wang is a shareholder and the legal representative of Chongqing. Both Chongqing and Ms. Wang are the non-related parties to the Company.
 
 
In the meantime, Hong Kong Takung entered into loan agreements (the “US Dollar Loans”) with Merit Crown Limited, a Hong Kong company (“Merit Crown) with interest accruing at a rate of 8% per annum (See Note 8). Merit Crown is a non-related party to the Company.
 
Through an understanding between Ms. Wang and Merit Crown, the US Dollar Loans are “secured” by the RMB Loans. It is the understanding between the parties that when the US Dollar Loans are repaid, the RMB Loans will be repaid at the same time.