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

6 Months Ended

Jun. 30, 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 first and the second quarter of 2014, the weighted average annual interest rate was 6.95% and 7.45%. respectively

(in thousands)

	June 30, 2014		December 31, 2013
Loan from CITIC bank	$	6,750	$	6,381
Loan from ICBC		6,476		6,381
Loan from Taizhou Bank		1,137		2,127
Loan from China Everbright Bank		309		0
Loan from Pay-Ins Prem		12		72
	$	14,684	$	14,961

Schedule of Bank Acceptance Notes

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

	June 30, 2014		December 31, 2013
a) Bank acceptance notes payable to China Everbright bank	$	8,075	$	8,891
b) Bank acceptance notes payable to Taizhou bank		3,246		3,927
c) Bank acceptance notes payable to CITIC bank		4,326		2,700
d) Bank acceptance notes payable to ICBC		487		177
	$	16,134	$	15,695

a. Notes payable to China Everbright bank have various maturity dates from July 2014 to November 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 August 2014 to December, 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 October 2014.  Except for a note payable utilizing credit exposure of $0.56 million, 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 will be due in December 2014. The Company was required to maintain cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability.