LINE OF CREDIT, SHORT TERM DEBT AND BANK ACCEPTANCE NOTES (Tables)

3 Months Ended

Mar. 31, 2014

LINE OF CREDIT, SHORT TERM DEBT AND BANK ACCEPTANCE NOTES [Abstract]

Schedule of Short-Term Debt

The weighted average annual interest rate during 2013 was 7.04%. In the first quarter of 2014, the weighted average annual interest rate was 6.95%.

(in thousands)

	3/31/2014		12/31/2013
Loan from CITIC bank	$	7,301		6,381
Loan from ICBC		5,656		6,381
Loan from Taizhou Bank		1,136		2,127
Loan from Pay-Ins Prem		23		72
	$	14,116	$	14,961

Schedule of Bank Acceptance Notes

Bank acceptance notes - 3 to 6 month term for each note issued (in thousands)

	3/31/2014		12/31/2013
a) Bank acceptance notes payable to China Everbright bank	$	7,870	$	8,891
b) Bank acceptance notes payable to Taizhou bank		1,947		3,927
c) Bank acceptance notes payable to CITIC bank		2,677		2,700
d) Bank acceptance notes payable to ICBC		-		177
	$	12,494	$	15,695

a. Notes payable to China Everbright bank have various maturity dates from May 2014 to September 2014. The notes payable are guaranteed by a land use right and a building with a total carrying value of $2.1 million. The Company is also required to maintain cash deposits at 50% of the notes payable with the bank, in order to ensure future credit availability.

b. Notes payable to Taizhou bank have various maturity dates from April 2014 to August, 2014. The Company is required to maintain cash deposits at 50% of the notes payable with the bank, in order to ensure future credit availability.

c. Notes payable to CITIC bank will be due in April 2014. The Company is required to maintain cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability.

d. Notes payable to ICBC were due in March 2014 and repaid. The Company was required to maintain cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability.