Note 9 - Related Party Transactions

3 Months Ended

Sep. 30, 2012

Note 9 - Related Party Transactions:

Note 9 - Related Party Transactions

NOTE 9 – RELATED PARTY TRANSACTIONS

Linkwell Tech’s wholly-owned subsidiary, LiKang Disinfectant, is engaged in business activities with three related parties: ZhongYou, Shanghai Jiuqing and Linkwell International Trading Co., Ltd. (“Linkwell Trading”).

The Company’s Chairman and Chief Executive Officer, Xuelian Bian, and Vice President and Director, Wei Guan, own 90% and 10% respectively, of the capital stock of ZhongYou. In March 2007, Wei Guan sold his 10% ownership to Bing Chen, the President of LiKang Disinfectant. In August 2007, Xuelian Bian sold his remaining 90% ownership in ZhongYou to his mother, Xiuyue Xing. In October 2007, Bing Chen (10%) and Xiuyue Xing (90%) sold all of their shares in ZhongYou to Shanghai Jiuqing, whose 100% owner is Shanghai Ajiao Shiye Co. Ltd. Mr. Bian is currently a 60% shareholder of Shanghai Ajiao Shiye Co. Ltd.

For the three and nine months ended September 30, 2012, the Company recorded sales of $3,078,402 and $6,434,678, respectively, to related parties, primarily to Zhong You. At September 30, 2012, accounts receivables from sales to ZhongYou (net of allowance for doubtful accounts of $784,089) were $11,103,977.

During the three months ended September 30, 2012, the Company made $0 sales to Shanghai Jiuqing. At September 30, 2012, accounts receivable from sales to Shanghai Jiuqing were $86,619.

As of September 30, 2012, $957,821 was due from related parties  LiKang Trading Co. Ltd (Hong Kong) (“LiKang Trading HK”), Shanghai Zhongyou Delivery Co., Ltd (“ZhongYou Delivery”), Shanghai LiKang Pharmaceutical Co., Ltd (“LiKang Pharmaceutical”), and Shanghai Lingkai International Trading Co., Ltd (“Lingkai Trading”), respectively, representing short-term advances and other receivables not including the receivables from sales for working capital purpose and receivable on demand.

As of September 30, 2012, $2,504,329 was due to related parties including the Company’s management and officer, and shareholders. As of September 30, 2012, the Company owed its management $54,000, ZhongYou $1,681,499, Metamining Inc. $490,780 and other related parties $278,050.