Statutory reserve

Statutory reserve

Pursuant to the current People’s Republic of China Company Law, Chaoda is required to transfer between 5% to 10% of its profit after taxation to a statutory reserve until the surplus reserve balance reaches minimal 50% of the registered capital.

I notice, at 31/12/2015 the statutory reserve amount was $2659935
and 30/06/2017 the statutory reserve amount is still $2659935

The company have breach People’s Republic of China Company Law. The chinese government should investigate.