10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2013

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 001-34449

AMERICAN LORAIN CORPORATION
(Exact name of registrant as specified in its charter)

Nevada	87-0430320
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

Beihuan Road
Junan County
Shandong, China 276600
(Address, including zip code, of principal executive offices)

(86) 539-7318818
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X]                             No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X]                             No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer [  ] Accelerated filer [  ] Non-accelerated filer [  ] Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [  ]                             No [X]

The numbers of shares outstanding of the issuer’s class of common stock as of May 15, 2013 was 34,616,714.

TABLE OF CONTENTS

	PAGE
PART I - FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS	3
ITEM 2 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	4
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	10
ITEM 4 CONTROLS AND PROCEDURES	11
PART II - OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS	13
ITEM 1A RISK FACTORS	13
ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	13
ITEM 3 DEFAULTS UPON SENIOR SECURITIES	13
ITEM 4 REMOVED AND RESERVED	13
ITEM 5 OTHER INFORMATION	13
ITEM 6 EXHIBITS	13
SIGNATURES	14

AMERICAN LORAIN CORPORATION

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2013 AND DECEMBER 31, 2012

(Stated in US Dollars)

AMERICAN LORAIN CORPORATION

CONTENTS	PAGES
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	1
CONSOLIDATED BALANCE SHEETS	2 – 3
CONSOLIDATED STATEMENTS OF INCOME	4
CONSOLIDATED STATEMENTS OF CASH FLOWS	5 – 6
CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY	7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS	8 – 28

REPORT OF REGISTERED INDEPENDENT PUBLIC ACCOUNTING FIRM

To:	The Board of Directors and Stockholders of
	American Lorain Corporation

We have reviewed the accompanying interim consolidated balance sheets of American Lorain Corporation (“the Company”) as of March 31, 2013 and December 31, 2012, and the related statements of income, stockholders’ equity, and cash flows for the three months ended March 31, 2013 and 2012. These interim consolidated financial statements are the responsibility of the Company's management.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the accompanying interim consolidated financial statements for them to be in conformity with U.S. generally accepted accounting principles.

San Mateo, California	WWC, P.C.
May 5, 2013	Certified Public Accountants

AMERICAN LORAIN CORPORATION
CONSOLIDATED BALANCE SHEETS
AT MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

					(Audited)
	Note		At March 31,		At December 31,
ASSETS			2013		2012
Current assets
Cash and cash equivalents	2 (d)	$	31,869,400	$	32,345,603
Restricted cash	3		2,297,799		3,998,956
Trade accounts receivable	4		37,690,324		48,734,017
Other receivables	5		5,497,665		4,861,280
Inventory	6		47,745,071		38,072,704
Advance to suppliers			23,178,999		22,295,529
Prepaid expenses and taxes			1,641,030		381,905
Deferred tax asset			176,176		175,211
Security deposits and other Assets			12,488,431		9,293,615
Total current assets		$	162,584,895	$	160,158,820
Non-current assets
Investment			-		270,019
Property, plant and equipment, net	7		84,277,148		84,639,726
Construction in Progress, net	7		5,525
Land use rights, net	8		5,288,838		5,296,668
TOTAL ASSETS		$	252,156,406	$	250,365,233
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Short-term bank loans	9	$	32,393,962	$	28,725,143
Long-term debt – current portion	12		4,224,978		4,226,107
Accounts payable			2,410,523		3,646,560
Taxes payable	10		2,509,667		5,005,346
Accrued liabilities and other payables	11		1,125,454		979,797
Customers deposits			3,557		1,428
Total current liabilities		$	42,668,141	$	42,584,381
Long-term liabilities
Long-term bank loans	12		12,622,880		14,382,306
Notes payable			12,766,093		12,696,196
TOTAL LIABILITIES		$	68,057,114	$	69,662,883

See Accompanying Notes to the Financial Statements and Accountant’s Report

F-2

AMERICAN LORAIN CORPORATION
CONSOLIDATED BALANCE SHEETS
AT MARCH 31, 2012 AND DECEMBER 31, 2011
(Stated in US Dollars)

					(Audited)
			At March 31,		At December 31,
	Note
			2013		2012
STOCKHOLDERS’ EQUITY
Preferred Stock, $.001 par value, 5,000,000 shares authorized;        0 shares issued and outstanding at March 31, 2013 and        December 31, 2012, respectively			-		-
Common Stock, $0.001 par value, 200,000,000 shares authorized;        34,616,714 shares issued and outstanding as of March 31, 2013        and December 31, 2012, respectively	13		34,617		34,617
Additional paid-in capital			53,487,389		53,487,389
Statutory reserves	2 (r)		16,922,494		16,922,494
Retained earnings			86,616,647		84,097,961
Accumulated other comprehensive income			16,993,951		16,210,661
Non-controlling interests	14		10,044,194		9,949,228
TOTAL STOCKHOLDER’S EQUITY		$	184,099,292	$	180,702,350
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY		$	252,156,406	$	250,365,233

See Accompanying Notes to the Financial Statements and Accountant’s Report

F-3

AMERICAN LORAIN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2013 AND 2012
(Stated in US Dollars)

			For the periods ended March 31,
	Note		2013			2012
Net revenues	2 (t),15	$	34,809,916		$	37,141,031
Cost of revenues			(27,412,665	)		(29,683,226	)
Gross profit		$	7,397,251		$	7,457,805
Operating expenses
Selling and marketing expenses			(1,791,483	)		(1,371,275	)
General and administrative expenses			(1,421,984	)		(1,302,153	)
			(3,213,467	)		(2,673,428	)
Operating income		$	4,183,784		$	4,784,377
Government subsidy income			318,593			635,163
Interest income			6,909			58,132
Other income			186,649			396,668
Other expenses			(7,118	)		(18,735	)
Interest expense			(1,060,767	)		(909,468	)
Earnings before tax		$	3,628,050		$	4,946,137
Income tax	2 (q),16		(1,014,398	)		(1,187,209	)
Net income		$	2,613,652		$	3,758,928
Other comprehensive income:
Foreign currency translation gain			783,291			(80,463	)
Comprehensive Income			3,396,943			3,678,465
Net income attributable to:
-Common stockholders		$	2,518,686		$	3,582,365
-Non-controlling interest			94,966			176,563
		$	2,613,652		$	3,758,928
Earnings per share	2 (u), 17
- Basic		$	0.07		$	0.10
- Diluted		$	0.07		$	0.10
Weighted average shares outstanding
- Basic			34,616,714			34,507,874
- Diluted			34,616,714			34,507,874

See Accompanying Notes to the Financial Statements and Accountant’s Report

F-4

AMERICAN LORAIN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2013 AND 2012
(Stated in US Dollars)

		For the periods ended
		March 31,
		2013			2012
Cash flows from operating activities
Net income	$	2,613,652		$	3,758,928
Stock and share based compensation		-			51,607
Depreciation of fixed assets		972,550			873,032
Amortization of intangible assets		42,519			55,010
Adjustment to statutory reserve		-			678,175
(Increase)/decrease in accounts & other receivables		9,525,967			7,869,515
(Increase)/decrease in inventories		(9,672,367	)		(1,551,498	)
(Increase)/decrease in prepayment		(1,259,125	)		(131,910	)
(Increase)/decrease in deferred tax asset		(965	)		(1,044	)
Increase/(decrease) in accounts and other payables		(3,586,059	)		(2,308,977	)
Net cash (used in)/provided by operating activities	$	(1,363,828	)	$	9,292,838
Cash flows from investing activities
Sale/(Proceeds) from short-term investment		270,019			-
Purchase of plant and equipment		(615,497	)		(606,381	)
Payment for the purchase of land use rights		(34,689	)		(47,329	)
(Increase)/Decrease in restricted cash		1,701,157			(2,053,184	)
(Increase)/Decrease in deposit		(3,194,815	)		(104	)
Net cash used in investing activities	$	(1,873,825	)	$	(2,706,998	)
Cash flows from financing activities
Repayment of bank borrowings		(3,510,676	)		(8,554,862	)
Proceeds from bank borrowings		7,351,838			4,193,799
Proceeds from long-term borrowings and notes payable		(1,863,002	)		-
Net cash provided by/(used in) financing activities	$	1,978,160		$	(4,361,063	)
Net Increase/(decrease) of Cash and Cash Equivalents		(1,259,493	)		2,224,777
Effect of foreign currency translation on cash and cash equivalents		783,291			(80,463	)
Cash and cash equivalents–beginning of period		32,345,603			17,353,494
Cash and cash equivalents–end of period		31,869,400		$	19,497,808
Supplementary cash flow information:
Interest received	$	6,909		$	58,132
Interest paid	$	1,039,123		$	1,159,514
Income taxes paid	$	3,125,023		$	2,604,089

See Accompanying Notes to the Financial Statements and Accountant’s Report

F-5

AMERICAN LORAIN CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE PERIOD ENDED MARCH 31, 2013 AND YEAR ENDED DECEMBER 31, 2012
(STATED IN US DOLLARS)

						Accumulated
	Number		Additional			Other	Non-
	Of	Common	Paid-in	Statutory	Retained	Comprehensive	Controlling
	Shares	Stock	Capital	Reserves	Earnings	Income	Interests	Total
Balance, January 1, 2012	34,507,874	34,508	53,015,636	13,976,899	65,939,713	15,353,885	8,628,127	156,948,768
Issuance of share based compensation	108,840	109	503,493	-	-	-	-	503,602
Repayment of financing cost	-	-	(31,740)	-	-	-	-	(31,740)
Net income	-	-	-	-	21,743,769	-	-	21,743,769
Allocation to non-controlling interests	-	-	-	-	(1,321,101)	-	1,321,101	-
Appropriations to statutory reserve	-	-		2,264,420	(2,264,420)	-	-	-
Adjustment to statutory reserve	-	-	-	681,175	-	-	-	681,175
Foreign currency translation adjustment	-	-	-	-	-	856,776	-	856,776
Balance, December 31, 2012	34,616,714	34,617	53,487,389	16,922,494	84,097,961	16,210,661	9,949,228	180,702,350
Balance, January 1, 2013	34,616,714	34,617	53,487,389	16,922,494	84,097,961	16,210,661	9,949,228	180,702,350
Issuance of share based compensation	-	-	-	-	-	-	-	-
Net income	-	-	-	-	2,613,652	-	-	2,613,652
Allocation to non-controlling interests	-	-	-	-	(94,966)	-	94,966	-
Appropriations to statutory reserve	-	-	-	-	-	-	-	-
Foreign currency translation adjustment	-	-	-	-	-	783,291	-	783,291
Balance, March 31, 2013	34,616,714	34,617	53,487,389	16,922,494	86,616,647	16,993,952	10,044,194	184,099,292

See Accompanying Notes to the Financial Statements and Accountant’s Report

F-6

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

1.	ORGANIZATION, BASIS OF PRESENTATION, AND PRINCIPAL ACTIVITIES
	(a)	Organization history of American Lorain Corporation (formerly known as Millennium Quest, Inc.)
		American Lorain Corporation (the “Company” or “ALN”) was originally a Delaware corporation incorporated on February 4, 1986. From inception through May 3, 2007, the Company did not engage in any active business operations other than in search and evaluation of potential business opportunity to become an acquiree of a reverse-merger deal. On May 3, 2007, the Company entered into a share exchange agreement as described under “Reverse-Merger” below. On November 12, 2009, the Company filed a statement of merger in the state of Nevada to transfer the Company’s jurisdiction from Delaware to Nevada.
	(b)	Organization History of International Lorain Holding Inc. and its subsidiaries
		ALN owns 100% of the equity of International Lorain Holding Inc. (“ILH”). ILH is a Cayman Islands company incorporated on August 4, 2006 and was wholly-owned by Mr. Hisashi Akazawa until May 3, 2007. ILH presently has two direct wholly-owned subsidiaries, Junan Hongrun and Luotian Lorain, and three indirectly wholly-owned subsidiaries through Junan Hongrun, which are Beijing Lorain, Dongguan Lorain, and Shandong Greenpia Foodstuff Co., Ltd. (“Shandong Greenpia”).
		In addition, the Company directly and indirectly has 80.2% ownership of Shandong Lorain. The rest of the 19.8%, which is owned by the State under the name of Shandong Economic Development Investment Co. Ltd., is not included as a part of the Group.
		On April 9, 2009, the Company, through its Junan Hongrun subsidiary, invested cash to establish Dongguan Lorain. Dongguan Lorain is indirectly 100% beneficially owned by the Company.
		On June 28, 2010, the Company signed an equity transfer agreement with Shandong Greenpia. Shandong Greenpia was originally directly owned by Taebong Inc. and Shandong Luan Trade Company. The Company paid $2,100,000 to Korean Taebong Inc. for 50% equity of Shandong Greenpia on September 20, 2010. On September 23, 2010, the Company issued 731,707 shares of restricted stock at an agreed price of $2.87 per share to the owner of Shandong Luan Trade Company, Mr. Ji Zhenwei, for the remaining 50% equity of Shandong Greenpia. Since September 23, 2010, Shandong Greenpia was directly owned by both Junan Hongrun and ILH. As a result, Shandong Greenpia is 100% owned by the Company. Accordingly, the Company booked a gain of $383,482 which is included in the statement of income as other income.
	(c)	Reverse-Merger
		On May 3, 2007, the Company entered into a share exchange agreement with ILH whereby the Company consummated its acquisition of ILH by issuance of 697,663 Series B voting convertible preferred shares to the shareholders of ILH in exchange of 5,099,503 ILH shares. Concurrently on May 3, 2007, the Company also entered into a securities purchase agreement with certain investors and Mr. Hisashi Akazawa and Mr. Si Chen (each a “beneficial owner”) whereby the Company issued 319,913 (after reverse-split at 32.84 from 10,508,643) common shares to its shareholders as consideration of the Company’s reverse-merger with Lorain.
		The share exchange transaction is sometimes referred to hereafter as the “reverse-merger transaction.” The share exchange transaction has been accounted for as a recapitalization of ALN where the Company (the legal acquirer) is considered the accounting acquiree and ILH (the acquiree) is considered the accounting acquirer. As a result of this transaction, the Company is deemed to be a continuation of the business of ILH.
		Accordingly, the accompanying consolidated financial statements are those of the accounting acquirer, ILH. The historical stockholders’ equity of the accounting acquirer prior to the share exchange has been retroactively restated as if the share exchange transaction occurred as of the beginning of the first period presented. See also Note 13 Capitalization.

F-7

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

(d)

Business Activities

The Company develops, manufactures, and sells convenience foods (including ready-to-cook (or RTC) foods; ready-to-eat (or RTE) foods and meals ready-to-eat (or MRE); chestnut products; and frozen foods, in hundreds of varieties. The Company operates through indirect Chinese subsidiaries. The products are sold in domestic markets as well as exported to foreign countries and regions such as Japan, Korea and Europe.

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	(a)	Method of Accounting
		The Company maintains its general ledger and journals with the accrual method accounting for financial reporting purposes. The financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of financial statements, which are compiled on the accrual basis of accounting.
		The Company regrouped certain accounts in its presentation of changes in assets and liabilities in the statement of cash flows for the period ended March 31, 2013 in order to be consistent with the presentation provided for the year ended December 31, 2012. There was no impact in earnings for the regrouping.
	(b)	Principles of consolidation
		The consolidated financial statements which include the Company and its subsidiaries are compiled in accordance with generally accepted accounting principles in the United States of America. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of those wholly-owned subsidiaries; ownership interests of minority investors are recorded as minority interests.
		As of March 31, 2013, the detailed identities of the consolidating subsidiaries are as follows:

	Place of	Attributable equity	Registered
Name of Company	incorporation	interest %	capital
Shandong Lorain Co., Ltd	PRC	80.2	$ 12,837,397
Luotian Lorain Co., Ltd	PRC	100	4,019,743
Junan Hongrun Foodstuff Co., Ltd	PRC	100	47,483,773
Beijing Lorain Co., Ltd	PRC	100	1,587,024
Shandong Greenpia Foodstuff Co.,Ltd	PRC	100	2,437,670
Dongguan Lorain Co,,Ltd	PRC	100	158,702
International Lorain Holding Inc.	Cayman Islands	100	49,386,219

(c)

Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates.

F-8

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

(d)	Cash and cash equivalents
	The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.
(e)	Investment securities
	The Company classifies securities it holds for investment purposes into trading or available-for-sale. Trading securities are bought and held principally for the purpose of selling them in the near term. All securities not included in trading securities are classified as available-for-sale.
	Trading and available-for-sale securities are recorded at fair value. Unrealized holding gains and losses on trading securities are included in the net income. Unrealized holding gains and losses, net of the related tax effect, on available for sale securities are excluded from net income and are reported as a separate component of other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis.
	A decline in the market value of any available-for-sale security below cost that is deemed to be other-than- temporary results in a reduction in carrying amount to fair value. The impairment is charged as an expense to the statement of income and comprehensive income and a new cost basis for the security is established. To determine whether impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year end, and forecasted performance of the investee.
	Premiums and discounts are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield using the effective-interest method. Dividend and interest income are recognized when earned.
(f)	Trade receivables
	Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred.
(g)	Inventories
	Inventories consisting of finished goods and raw materials are stated at the lower of cost or market value. Finished goods are comprised of direct materials, direct labor and an appropriate proportion of overhead.
(h)	Customer deposits and advances to suppliers
	Customer deposits were received from customers in connection with orders of products to be delivered in future periods.
	Advance to suppliers is a good faith deposit paid to the supplier for the purpose of committing the supplier to provide product promptly upon delivery of the Company’s purchase order for raw materials, supplies, equipment, building materials etc. Pursuant to the Company’s arrangements with its suppliers, this deposit is generally 20% of the total amount contracted for. This type of transaction is classified as a prepayment category under the account name “Advance to Suppliers” until such time as the Company’s purchase order is delivered, at which point this account is reduced by reclassification of the applicable amount to the appropriate asset account such as inventory or fixed assets or construction in progress.

F-9

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

(i)	Property, plant and equipment
	Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method with a salvage value of 10%. Estimated useful lives of the plant and equipment are as follows:

Buildings	40 years
Landscaping, plant and tree	30 years
Machinery and equipment	10 years
Motor vehicles	10 years
Office equipment	5 years

	The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized.
(j)	Construction in progress
	Construction in progress represents direct and indirect construction or acquisition costs. The construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until the asset is completed and ready for intended use.
(k)	Land Use Rights
	Land use rights are carried at cost and amortized on a straight-line basis over a specified period. Amortization is provided using the straight-line method over 40-50 years.
(l)	Accounting for the Impairment of Long-Lived Assets
	The long-lived assets held by the Company are reviewed in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 360-10-35, “Accounting for the Impairment or Disposal of Long-Lived Assets,” for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Impairment is present if carrying amount of an asset is less than its undiscounted cash flows to be generated.
	If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company believes no impairment has occurred to its assets during 2013 and 2012.
(m)	Advertising
	All advertising costs are expensed as incurred.
(n)	Shipping and handling
	All shipping and handling are expensed as incurred.
(o)	Research and development
	All research and development costs are expensed as incurred.

F-10

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

(p)	Retirement benefits
	Retirement benefits in the form of contributions under defined contribution retirement plans to the relevant authorities are charged to the consolidated statement of income as incurred.
(q)	Income taxes
	The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain.
	The Company has implemented ASC Topic 740, “Accounting for Income Taxes.” Income tax liabilities computed according to the United States and People’s Republic of China (PRC) tax laws are provided for the tax effects of transactions reported in the financial statements and consists of taxes currently due plus deferred taxes related primarily to differences between the basis of fixed assets and intangible assets for financial and tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will be either taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes also are recognized for operating losses that are available to offset future income taxes. A valuation allowance is created to evaluate deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize that tax benefit, or that future realization is uncertain.
	Effective January 1, 2008, PRC government implemented a new 25% tax rate across the board for all enterprises regardless of whether domestic or foreign enterprise without any tax holiday which is defined as "two-year exemption followed by three-year half exemption" hitherto enjoyed by tax payers. As a result of the new tax law of a standard 25% tax rate, tax holidays terminated as of December 31, 2007. However, PRC government has established a set of transition rules to allow enterprises already started tax holidays before January 1, 2008, to continue enjoying the tax holidays until being fully utilized.
	The Company is subject to United States Tax according to Internal Revenue Code Sections 951 and 957. Corporate income tax is imposed on progressive rates in the range of: -

Taxable Income
Rate	Over	But Not Over	Of Amount Over
15%	0	50,000	0
25%	50,000	75,000	50,000
34%	75,000	100,000	75,000
39%	100,000	335,000	100,000
34%	335,000	10,000,000	335,000
35%	10,000,000	15,000,000	10,000,000
38%	15,000,000	18,333,333	15,000,000
35%	18,333,333	-	-

(r)

Statutory reserves

Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. The Company transferred $0 and $2,264,420 from retained earnings to statutory reserves for the period ended March 31, 2013 and year ended December 31, 2012. PRC laws prescribe that an enterprise operating at a profit, must appropriate, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital.

F-11

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

(s)

Foreign currency translation

The accompanying financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB). The financial statements are translated into United States dollars from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

	3/31/2013	12/31/2012	3/31/2012
Year end RMB : US$ exchange rate	6.2666	6.3011	6.3122
Average yearly RMB : US$ exchange rate	6.2769	6.3034	6.2976

	The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollars at the rates used in translation.
(t)	Revenue recognition
	The Company's revenue recognition policies are in compliance with Staff accounting bulletin (SAB) 104. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectibility is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue.
	The Company's revenue consists of invoiced value of goods, net of a value-added tax (VAT). The Company allows its customers to return products if they are defective. However, this rarely happens and amounts returned have been de minimis.
	The Company gradually switched its sales model from direct sales to third party distributor model and issues 1% sales incentive to distributors. The Company modified its accounting policy for the recognition of revenue accordingly. Given the circumstances of how the Company conducts its incentive program, the Company books the payments settled in cash as a contra account to Gross Revenue, and includes the amount in its reported “net revenue”. The Company has considered the guidance in FASB ASC 605-50 (EITF 01-9) and will account for its sales incentive program accordingly.
(u)	Earnings per share
	Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income by the sum of the weighted average number of ordinary shares outstanding and potential dilutive securities during the year. During the period ended March 31, 2013, no warrants were issued nor options were granted. For the year ended December 31, 2010, 81,155 warrants were issued to certain service providers. For the year ended December 31, 2009, 1,334,573 stock options were granted to employees pursuant to the Company’s equity incentive plan; 2,255,024 warrants were issued to investors in connection with a PIPE financing. These warrants and options could be potentially dilutive if the market price of the Company’s common stock exceeds the exercise price for these securities.
	The Company computes earnings per share (“EPS”) in accordance with Statement of Financial Accounting Standards No. 128, “Earnings per share” (“SFAS No. 128”), and SEC Staff Accounting Bulletin No. 98 (“SAB 98”). SFAS No. 128 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later.

F-12

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

	Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.
(v)	Financial Instruments
	The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

• Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

• Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.

As of March 31, 2013 and December 31, 2012, the Company did not identify any assets and liabilities that were required to be presented on the balance sheet at fair value.

The following tables present the Company’s financial assets and liabilities at fair value in accordance to ASC 820-10:

At December 31,		Quoted in		Significant
2012:		Active Markets		Other		Significant
		for Identical		Observable		Unobservable
		Assets		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	31,869,400	$	-	$	-	$	31,869,400
Restricted Cash		2,297,799		-		-		2,297,799
Total financial assets	$	34,167,199	$	-	$	-	$	34,167,199
Financial liabilities:
Notes payable	$	-	$	-	$	-	$	-
Total financial liabilities	$	-	$	-	$	-	$	-

At December 31,		Quoted in		Significant
2012:		Active Markets		Other		Significant
		for Identical		Observable		Unobservable
		Assets		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	32,345,603	$	-	$	-	$	32,345,603

F-13

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

Restricted Cash		3,998,956		-		-		3,998,956
Total financial assets	$	36,344,559	$	-	$	-	$	36,344,559
Financial liabilities:
Notes payable	$	-	$	-	$	-	$	-
Total financial liabilities	$	-	$	-	$	-	$	-

(w)	Commitments and contingencies
	Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.
(x)	Comprehensive income
	Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s current component of other comprehensive income includes the foreign currency translation adjustment and unrealized gain or loss.
	The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid- in capital and distributions to stockholders due to investments by stockholders. Comprehensive income for the periods ended March 31, 2013 and 2012 included net income and foreign currency translation adjustments.
(y)	Recent accounting pronouncements
	On July 27, 2012, the FASB issued ASU 2012-02, Intangibles-Goodwill and Other (Topic 350) – Testing Indefinite-Lived Intangible Assets for Impairment. The ASU provides entities with an option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the indefinite-lived intangible asset is impaired. If an entity concludes that it is more than 50% likely that an indefinite-lived intangible asset is not impaired, no further analysis is required. However, if an entity concludes otherwise, it would be required to determine the fair value of the indefinite-lived intangible asset to measure the amount of actual impairment, if any, as currently required under US GAAP. The ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of this pronouncement will not have a material impact on its financial statements.
	In October, 2012, the FASB issued ASU No. 2012-04, “Technical Corrections and Improvements” (“ASU 2012-04”). The amendments cover a wide range of topics in the FASB ASC. The amendments are incorporated into two sections: a. Technical corrections and improvements, and b. Conforming amendments related to fair value measurements.

a. The amendments in the technical corrections and improvements section are categorized as follows:

• Source literature amendments. These amendments are considered necessary due to differences between source literature and the FASB ASC. The amendments primarily carry forward legacy document guidance and/or subsequent amendments into the FASB ASC. Often, either writing style or phrasing in the legacy documents did not directly relate to the FASB ASC format and style so that the meaning of certain guidance might have been unintentionally altered.

• Guidance clarification and reference corrections. These amendments include updated wording or corrected references, or a combination of both.

• Relocated guidance. These amendments primarily move authoritative literature guidance from

F-14

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

one location to another location that is deemed more appropriate within the FASB ASC.

b. On the fair value measurements issue, the guidance in ASU 2012-04 identifies when the use of the term “fair value” should be linked to the definition of fair value included in FASB ASC 820, entitled Fair Value Measurement. Most of the amendments are of a nonsubstantive nature. Many of the amendments relate to conforming wording to be consistent with the terminology in FASB ASC 820 for example, references to market value and current market value have been changed to appropriately refer to fair value so that the literature is consistent throughout.

	In October 2012, the FASB issued ASU No. 2012-06, “Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution” (“ASU 2012-06”). This amendment requires that indemnification assets recognized in accordance with Subtopic 805-20, Business Combinations—Identifiable Assets and Liabilities, and Any Noncontrolling Interest, as a result of a government-assisted acquisition of a financial institution involving an indemnification agreement should be subsequently measured on the same basis as the asset subject to indemnification. For public and nonpublic entities, the amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. Management does not expect the adoption of this standard has a significant effect on the Company’s consolidated financial position or results of operations.
	As of March 31, 2013, there are no other recently issued accounting standards not yet adopted that would have a material effect on the Company’s consolidated financial statements
	In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”). The Update clarifies that ordinary trade receivables and receivables are not in the scope of Accounting Standards Update No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Specifically, Update 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in FASB Accounting Standards Codification® or subject to a master netting arrangement or similar agreement. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. Management does not expect the adoption of this standard has a significant effect on the Company’s consolidated financial position or results of operations.
	For public entities, the amendments that are subject to the transition guidance is effective for fiscal periods beginning after December 15, 2012. Management does not expect the adoption of this standard has a significant effect on the Company’s consolidated financial position or results of operations.
3.	RESTRICTED CASH
	Restricted Cash represents interest bearing deposits placed with banks to secure banking facilities in the form of loans and notes payable. The restriction of funds is based on time. The funds that collateralize loans are held for 60 days in savings account that pay interest at the prescribed national daily savings account rate. For funds that underline notes payable, the cash is deposited in six month time deposits that pay interest at the national time deposit rate.
4.	TRADE ACCOUNTS RECEIVABLE

		3/31/2013			12/31/2012
Trade accounts receivable	$	38,136,666		$	49,177,915
Less: Allowance for doubtful accounts		(446,342	)		(443,898	)
	$	37,690,324		$	48,734,017
Allowance for bad debt:		3/31/2013			12/31/2012

F-15

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

Beginning balance	$	(443,898	)	$	(379,693	)
Additions to allowance		(2,444	)		(64,205	)
Bad debt written-off		-			-
Ending balance	$	(446,342	)	$	(443,898	)

	The Company offers credit terms of between 30 to 60 days to most of their domestic customers, including supermarkets and wholesalers, around 90 days to most of their international customers, and between 0 to 15 days for most of the third-party distributors the Company works with.
5.	OTHER RECEIVABLES
	Other receivables consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Advances to employees for job/travel disbursements		549,623		79,367
Amount due by a non-related enterprise		320,673		326,270
Other non-related receivables		192,182		76,168
Other related receivables		131,411		99,263
Short-term investment sale receivable		4,303,776		4,280,212
	$	5,497,665	$	4,861,280

Advances to employees for job/travel disbursements consisted of advances to employees for transportation, meals, client entertainment, commissions, and procurement of certain raw materials. The advances issued to employees may be carried for extended periods of time because employees may spend several months out in the field working to procure new sales contracts or fulfill existing contracts.

Specifically, the company uses every available employee to arrange purchases with desirable chestnut or other raw material growers. However, because many of these growers are in rural farming areas of China where traditional banking and credit arrangements are difficult to implement, the Company must utilize cash purchases and also must contract for its future needs by placing a good faith deposit in cash with the growers. However none of these advances to employees for delivery to the growers on behalf of the Company are “personal loans” to the employees. Advances to employees for purchase of materials in other receivables are adjusted to advances to suppliers as of March 31, 2013.

Related party receivable consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Chen, Si	$	67,523	$	67,523
You, Huadong		63,888		31,740
	$	131,411	$	99,263

Related party receivable represented advances issued by management for job or travel disbursement in the normal course of business. The receivable had no impact on earnings. As with other employees, officers sign notes when cash is issued to them as job or travel disbursement.

In order to satisfy certain criteria for obtaining the long-term loan with DEG, as noted in footnote 12, Junan Hongrun lent money to Mr. You, Huadong to purchase life insurance.

Related party receivable amounts are disclosed as other related receivables in other receivables.

On March 13, 2011, the Company entered into an agreement with Jiangsu Heng An Industrial Investment Group Co., Ltd. to sell the Company’s short-term investment in the amount of $ 7,764,577 (RMB 49,604,000) of a parcel of land located in Junan Town, Shandong Province, to construct residential buildings. The land was sold to Jiangsu Heng An at a total sale price of RMB 69,604,000 and a guaranteed gross profit of RMB 20,000,000 without consideration of profit/(loss) of the residential building project. The gain on the sale of the short-term investment excluding taxes payable was recorded as other income on the statements of income and comprehensive income. Title of the land transferred from the Company to Jiangsu Heng An with receipt of an initial deposit of RMB 15,000,000. As of March 31, 2013, a total of RMB 42,029,955 has been received and RMB 26,970,045 (USD 4,303,776) is classified as Other Receivable. According to the contract, the Company will be entitled to receive RMB 9,000,000 within 5 days after the title transfer and construction approval is complete, and RMB 27,000,000 within 5 days after the residential building main frame is completed

F-16

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

6.	INVENTORIES
	Inventories consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Raw materials	$	23,659,298	$	18,700,879
Finished goods		24,085,773		19,371,825
	$	47,745,071	$	38,072,704

7.	PROPERTY, PLANT AND EQUIPMENT
	Property, plant, and equipment consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013			12/31/2012
At Cost:
Buildings	$	79,195,338		$	78,730,172
Landscaping, plant and tree		7,987,338			7,943,605
Machinery and equipment		11,465,642			11,374,635
Office equipment		368,749			363,306
Motor vehicles		844,497			839,874
	$	99,861,564		$	99,251,592
Less: Accumulated depreciation
Buildings		(6,389,730	)		(5,911,971	)
Landscaping, plant and tree		(2,319,954	)		(2,108,661	)
Machinery and equipment		(6,097,105	)		(5,842,946	)
Office equipment		(234,600	)		(221,800	)
Motor vehicles		(543,027	)		(526,487	)
		(15,584,416	)		(14,611,866	)
	$	84,277,148		$	84,639,726

Landscaping, plants, and trees accounts for the orchards that the Company has developed for agricultural operations. These orchards as well as the young trees which were purchased as nursery stock are capitalized into fixed assets. The depreciation is then calculated on a 30-year straight-line method when production in commercial quantities begins. The orchards have begun production in small quantities and the Company has accounted for depreciation commencing July 1, 2010.

F-17

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

8.	LAND USE RIGHTS, NET
	Land use rights consisted of the following as of December 31, 2012 and December 31, 2012:

		3/31/2013			12/31/2012
Land use rights, at cost	$	6,226,471		$	6,192,379
Utilities rights, at cost		49,640			49,368
Software, at cost		58,013			57,695
Patent, at cost		1,505			1,497
		6,335,629			6,300,939
Less: Accumulated amortization		(1,046,791	)		(1,004,271	)
	$	5,288,838		$	5,296,668

	All lands are owned by the government in China. Land use rights represent the Company’s purchase of usage rights for a parcel of land for a specified duration of time, typically 50 years. The land use rights are then amortized over the period of usage. Amortization expense for the periods ended March 31, 2013 and 2012 were $42,519 and $55,010, respectively.
9.	SHORT-TERM BANK LOANS
	Short-term bank loans consisted of the following as of March 31, 2013 and December 31, 2012:

	Remark	3/31/2013	12/31/2012
Loan from Junan County Industrial and Commercial Bank of China,
• Interest rate at 6.44% per annum; due 1/8/2013		-	1,031,566
• Interest rate at 5.88% per annum; due 4/10/2013		1,148,948	1,142,658
• Interest rate at 5.88% per annum; due 4/19/2013		1,005,330	999,825
• Interest rate at 5.88% per annum; due 4/24/2013	A	638,305	634,810
• Interest rate at 5.88% per annum; due 5/17/2013		1,356,397	1,348,971
• Interest rate at 5.88% per annum; due 7/18/2013		1,117,033	-
Loan from Linyi Commercial Bank,
• Interest rate at 12.136% per annum due 1/10/2013		-	714,161
• Interest rate at 1.512% per annum due 1/9/2014		1,595,762	-
• Interest rate at 1.26% per annum due 1/10/2014		1,436,185	-
Loan from China Minsheng Bank Corporation, Linyi Branch
• Interest rate at 7.8% per annum due 8/29/2013		2,393,642	2,380,537
Loan from China Agricultural Bank, Luotian Branch

F-18

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

• Interest rate at 6.372% per annum due 9/12/2012			-
• Interest rate at 8.4% per annum due 3/3/2013			158,702
• Interest rate at 8.4% per annum due 6/3/2013		319,152	317,405
• Interest rate at 8.4% per annum due 9/3/2013		1,117,033	1,110,917
Bank of Beijing,
• Variable Interest rate, due 6/29/2013		1,276,609	1,269,620
Shenzhen Development Bank,
• Interest rate at 6.16% per annum due 1/30/2013		-	1,110,917
• Interest rate at 6.04% per annum due 9/6/2013		-	793,512
• Interest rate at 6.71% per annum due 10/23/2013		-	634,810
• Interest rate at 7.20% per annum due 5/24/2013		638,305	-
Luotian Sanliqiao Credit Union,
• Interest rate at 9.360% per annum due 1/6/2014		957,457	952,215
Beijing International Trust Co., Ltd.,
• Variable interest rate, due 9/16/2013		1,595,762	1,587,024
Weihai City Commercial Bank,
• Interest rate at 6.90% per annum due 3/7/2013		3,191,523	3,174,049
Bank of Ningbo ,
• Interest rate at 6.71% per annum due 9/27/2013		1,595,762	1,587,024
Hankou Bank, Guanshan Branch,
• Interest rate at 6.00% per annum due 9/6/2013		797,881	793,512
• Interest rate at 6.60% per annum due 9/14/2013		1,595,762	1,587,024
China Agricultural Bank, Shandong Branch
• Interest rate at 10.2% per annum due 7/16/2013	C	3191523	3,174,049
• Interest rate at 7.2% per annum due 8/29/2013	B	1595762	1,587,024
Ping An Bank, Jinan Branch
• Interest rate at 6.048% per annum due 2/27/2014		797,881	-

F-19

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

• Interest rate at 6.16% per annum due 7/25/2013		1,117,033		-
Agricultural Development Bank of China
• Interest rate at 6.00% per annum due 1/3/2014		797,881		-
Luzhen Credit Union,
• Interest rate at 10.40% per annum due 2/27/2014		478,729		-
Postal Savings Bank of China
• Interest rate at 6.60% per annum due 11/26/2013		638,305		634,810
	$	32,393,962	$	28,725,143

The short-term loans, which are denominated in the functional currency Renminbi (RMB), were primarily obtained for general working capital. If not otherwise indicated in the below remarks, short-term loans are guaranteed by either companies within the group or personnel who hold a management role within the group.

Remark:
A: Accounts receivable in the amount of was used as collateral for this loan.
B: Junan Hongrun Foodstuff Co., Ltd.’s factory was used as collateral for this loan
C: Personal guarantee from Mr. Si Chen was used as collateral for this loan

10.	TAXES PAYABLES
	Taxes payable consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Value added tax payable	$	21,784	$	428,889
Corporate income tax payable		1,270,783		3,370,655
Employee payroll tax withholding		4,475		4,936
Property tax payable		57,742		55,877
Stamp tax payable		1,448		1,440
Business tax payable		154,960		154,112
Land use tax payable		69,788		65,525
Import tariffs		145		454
Capital gain tax payable		928,542		923,458
	$	2,509,667	$	5,005,346

11.	ACCRUED EXPENSES AND OTHER PAYABLE
	Accrued expenses and other payables consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Accrued salaries and wages	$	-	$	3,174
Accrued utility expenses		52,605		55,639
Accrued interest expenses		227,362		219,630
Accrued transportation expenses		237,586		290,228
Other accruals		89,390		103,827

F-20

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

Business and other taxes		343,229		182,378
Disbursement payable		21,428		87,078
Accrued staff welfare		153,853		37,843
	$	1,125,454	$	979,797

12.	LONG-TERM DEBT
	Current portions of long-term debt consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Loans from China Development Bank
• Interest rate at 7.07% per annum due 5/20/2013		159,576		158,702
• Interest rate at 7.07% per annum due 11/20/2013		319,152		317,405
Loans from Deutsche Investitions-und
Entwicklungsgesellschaft mbH (“DEG”)
• Interest rate at 5.510% per annum due 3/15/2013				1,875,000
• Interest rate at 5.510% per annum due 9/15/2013		1,873,125		1,875,000
• Interest rate at 5.510% per annum due 3/15/2014		1,873,125
	$	4,224,978	$	4,226,107

Non-current portions of long-term debt consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Loans from Deutsche Investitions-und Entwicklungsgesellschaft mbH (“DEG”)
• Interest rate at 5.510% per annum due 9/16/2016		8,314,323		10,097,340
Loans from China Development Bank
• Interest rate at 7.07% per annum due 9/24/2015		4,308,557		4,284,966
	$	12,622,880	$	14,382,306

The Company’s loan with DEG began repaying the loan in semi-annual installments on September 15, 2012. As of December 31, 2012, the Company has repaid $1,875,000 in principal. The loan was collateralized with the following terms:

(a.)	Create and register a first ranking mortgage in the amount of about USD 12,000,000 on its land and building in favor of DEG.
(b.)	Undertake to provide a share pledge of Mr. Si Chen shares in the sponsor in the amount of about USD 12,000,000 and being the majority shareholder in the sponsor in form and substance satisfactory to DEG
(c.)	The total amount of the first ranking mortgage as indicated in the Loan Agreement (Article 12(1)(a)) and the value of the pledged shares of Mr. Si Chen (Loan Agreement (Article 12(1)(a))) should be at least USD 24,000,000.
(d.)	Undertake to provide a guarantee from the Shareholder in form and substance satisfactory to DEG.

Non-current portions of notes payable consisted of the following as of March 31, 2013 and December 31, 2012:

F-21

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

		3/31/2013		12/31/2012
Note payable issued by Shanghai Pudong Development Bank
• Interest rate at 5.9% per annum due 12/28/2015		12,766,093		12,696,196
	$	12,766,093	$	12,696,196

	The note was collateralized by a restricted cash deposit in the amount of RMB 20,540,158 as a compensating balance to the note.
13.	CAPITALIZATION
	Dating back to May 3, 2007, the Company underwent a reverse-merger and a concurrent financing transaction that resulted in 24,923,178 shares of outstanding common stock that remained unchanged until through December 31, 2007. In connection with the financing, the Company also issued 1,037,858 and 489,330 warrants to the PIPE investors and placement agent, respectively. During 2008, several holders of warrants issued in connection with the financing transaction exercised their rights to purchase shares at the prescribed exercise price. The holders of the warrants exercised the right to purchase a total of 360,207 shares; however, because the holders did not pay in cash for the warrants, 110,752 of those shares were cancelled as consideration in lieu of the warrant holders paying in cash. Ultimately, 249,455 of new shares were issued to those who exercised their warrant. The Company also made an adjustment to its outstanding share count for rounding errors as result of the split and reverse splits made at the time of the reverse merger. The number of shares in the adjustment was an addition of seven shares. The Company believes the adjustment of seven shares is immaterial to both prior and current earnings per share calculation. As detailed in the table below, the total number of outstanding shares at December 31, 2012 was 34,616,714.
	During the year 2009, the Company issued 56,393 shares of stock to its employees and vendors and 5,011,169 shares to investors. The Company issued 1,334,573 stock options to employees on July 28, 2009; 1,753,909 shares of Series A warrants and 501,115 shares of Series B warrants were issued to investors on October 28, 2009.
	During the year 2010, the Company issued 2,000 shares to a service provider on February 10, 2010 and 81,155 warrants to various service providers on January 5, 2010. The Company issued to investors 3,440,800 shares at an agreed price of $2.80 per share for a PIPE financing on September 10, 2010. This financing brought $8,955,730 net proceeds to the Company. The Company issued 5,000 shares to its employee on September 23, 2010. 731,707 shares of restricted stock were issued to the owner of Shandong Greenpia, Mr. Ji Zhenwei on September 24, 2010 as part of acquisition cost.
	For the year 2010, the Company transferred 5,161,176 from retained earnings to additional paid up capital and 2,445,262 from retained earnings to statutory reserve. These transfers are to be used for future company development, recovery of losses and increase of capital, as approved, to expand production or operations.
	For the year 2011, the Company transferred 2,636,160 from retained earnings to statutory reserve. These transfers are to be used for future company development, recovery of losses and increase of capital, as approved, to expand production or operations.
	For the year 2012, the Company issued 108,840 shares to its employees as employee stock compensation. The Company transferred 2,264,420 from retained earnings to statutory reserve. These transfers are to be used for future company development, recovery of losses and increase of capital, as approved, to expand production or operations.

F-22

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

American Lorain Corporation
Capitalization Reconciliation Table

	Par value authorized	Issuance date	Shares outstanding
Common stock at 1/1/2009	200,000,000		25,172,640
New shares issued to employees and vendors during 2009		Various dates	56,393
New shares issued to PIPE investors		10/28/2009	5,011,169
New shares issued to service provider during 2010		2/10/2010	2,000
New shares issued to PIPE investors		9/10/2010	3,440,800
New shares issued to employee		9/23/2010	5,000
New shares issued as acquisition consideration		9/24/2010	731,707
New shares issued to service provider during 2011		5/5/2011	25,000
New shares issued to employees per stock incentive plan		7/20/2011	27,092
New shares issued to employees per stock incentive plan		11/21/2011	36,073
New shares issued to employees per stock incentive plan		10/5/2012	108,840
Common stock at 3/31/2013			34,616,714

Warrants and options	Number of warrants or options	Issuance date	Expiration date
Warrants issued to investors in 2007 PIPE	1,037,858	5/3/2007	5/2/2010
Warrants issued to placement agent in 2007 PIPE	489,330	5/3/2007	5/2/2010
Employee stock options	1,334,573	7/28/2009	7/27/2014
Warrants issued to investors in 2009 PIPE - Series A	1,753,909	10/28/2009	4/28/2015
Warrants issued to investors in 2009 PIPE - Series B	501,115	10/28/2009	10/28/2012
Issued to service provider A during 2010	50,722	1/5/2010	1/2/2014
Issued to service provider B during 2010	20,289	1/5/2010	1/2/2014
Issued to service provider C during 2010	10,144	1/5/2010	1/2/2014
Total warrants and options	5,197,940

14.	NON-CONTROLLING INTERESTS
	The non-controlling interest represents the 19.8% equity of Shandong Lorain held by the Shandong Economic Development Investment Corporation, which is a state-owned interest.

F-23

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

15.	SALES BY PRODUCT TYPE
	Sales by categories of product consisted of the following as of March 31, 2013 and 2012:

Category		3/31/2013		3/31/2012
Chestnut	$	16,654,887	$	16,005,159
Convenience food		10,620,643		12,842,809
Frozen food		7,534,386		8,293,063
Total	$	34,809,916	$	37,141,031

Revenue by geography consisted of the following as of March 31, 2013 and 2012:

Country		3/31/2013		3/31/2012
Australia	$	-	$	12,744
Belgium		-		1,323,480
China		26,011,792		29,322,470
Denmark		1,467,653		-
France		463,415		147,902
Germany		431,619		-
Hong Kong		46,377		6,402
Japan		2,536,962		3,284,003
Malaysia		382,432		390,663
Netherlands		264,859		-
Philippines		78,222		77,965
Poland		-		154,454
Russia		117,160		-
Saudi Arabia		-		306,614
Singapore		113,416		122,162
South Korea		2,515,014		1,254,386
Spain		-		88,378
Taiwan		-		127,811
Thailand		45,404		-
United Kingdom		292,475		487,504
United States		43,116		34,094
Total	$	34,809,916	$	37,141,031

16.	INCOME TAXES
	All of the Company’s operations are in the PRC, and in accordance with the relevant tax laws and regulations of PRC, the corporate income tax rate is 25%.
	The following tables provide the reconciliation of the differences between the statutory and effective tax expenses for the periods ended March 31, 2013 and 2012:

		3/31/2013			3/31/2012
Income attributed to PRC	$	3,704,227		$	5,015,197
Loss attributed to US		(76,177	)		(69,060	)
Income before tax		3,628,050			4,946,137

F-24

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

PRC Statutory Tax at 25% Rate		1,014,398		1,187,209
Effect of tax exemption granted		-		-
Income tax	$	1,014,398	$	1,187,209

Per Share Effect of Tax Exemption
		3/31/2013		3/31/2012
Effect of tax exemption granted	$	-	$	-
Weighted-Average Shares Outstanding Basic		34,616,714		34,507,874
Per share effect	$	0.02	$	0.03

The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows for the periods ended March 31, 2013 and 2012:

	2013	2012
U.S. federal statutory income tax rate	35%	35%
Lower rates in PRC, net	-10%	-10%
Tax holiday for foreign investments	2.96%	-1.00%
The Company’s effective tax rate	27.96%	24.00%

Effective January 1, 2008, the PRC government implemented a new 25% tax rate across the board for all enterprises regardless of whether domestic or foreign enterprise without any tax holiday which is defined as “two-year exemption followed by three-year half exemption” hitherto enjoyed by tax payers. As a result of the new tax law of a standard 25% tax rate, tax holidays were terminated as of December 31, 2007. However, PRC government has established a set of transition rules to allow enterprises already started tax holidays before January 1, 2008, to continue enjoying the tax holidays until being fully utilized.

The Company has accrued a deferred tax asset as a result of its net operating loss in and before March 31, 2013 because the Company planned to setup operations in the United States. The company anticipates that the operations within the United States will generate income in the future so that it will be able to take full advantage of the accrued asset. Accordingly the Company has not provided a valuation allowances for the accrued tax asset.

The Company’s has detailed the tax rates for its subsidiaries for 2013 and 2012 in the following table.

	China Income Tax Rate
Subsidiary	2013	2012
International Lorain	0%	0%
Junan Hongran	25%	25%
Luotian Lorain	25%	25%
Beijing Lorain	25%	25%
Shandong Lorain	25%	25%
Shandong Greenpia	25%	25%
Dongguan Lorain	25%	25%

F-25

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

17.	EARNINGS PER SHARE
	Components of basic and diluted earnings per share were as follows:

		For the period		For the period
		Ended		Ended
		March 31,		March 31,
		2013		2012
Basic Earnings Per Share Numerator
Net Income	$	2,518,686	$	3,582,365
Income Available to Common Stockholders	$	2,518,686	$	3,582,365
Diluted Earnings Per Share Numerator
Income Available to Common Stockholders	$	2,518,686	$	3,582,365
Income Available to Common Stockholders on Converted Basis	$	2,518,686	$	3,582,365
Original Shares:
Additions from Actual Events
-Issuance of Common Stock		34,616,714		34,507,874
Basic Weighted Average Shares Outstanding		34,616,714		34,507,874
Dilutive Shares:
Additions from Potential Events
Exercise of Investor Warrants & Placement Agent Warrants		-		-
Exercise of Employee & Director Stock Options		-		-
Diluted Weighted Average Shares Outstanding:		34,616,714		34,507,874
Earnings Per Share
- Basic	$	0.07	$	0.10
- Diluted	$	0.07	$	0.10
Weighted Average Shares Outstanding
- Basic		34,616,714		34,507,874
- Diluted		34,616,714		34,507,874

18.	SHARE BASED COMPENSATION
	On July 27, 2009, the Company’s Board of Directors adopted the American Lorain Corporation 2009 Incentive Stock Plan (the “Plan”). The Plan provides that the maximum number of shares of the Company’s common stock that may be issued under the Plan is 2,500,000 shares. The Company’s employees, directors, and service providers are eligible to participate in the Plan.
	For the year ended December 31, 2009, the Company recorded a total of $166,346 of shared based compensation expense. The Company issued warrants that upon exercise would result in the issuance of 1,334,573 common shares. These stock options vest over three years, where 33.33% vest annually. The expense related to the stock options was $107,375. The Company also recorded expense of $58,971 for the issuance of 56,393 common shares to participants, respectively. The common shares vested immediately. Given the materiality and nature of share based compensation, the entire expense has been recorded as general and administrative expenses. For the year ended December 31, 2010, the Company recorded a total of $890,209 stock option and its related general and administrative expenses.

F-26

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

During the period ended December 31, 2012 and 2011, the Company recorded a total of $503,493 and $644,243 stock option and its related general and administrative expenses.

During the period ended March 31, 2013, the Company did not grant any stock option.

The range of the exercise prices of the stock options granted since inception of the plan are shown in the following table:

Price Range	Number of Shares
$0 - $4.99	1,334,573 shares
$5.00 - $9.99	0 shares
$10.00 - $14.99	0 shares

No tax benefit has yet to be accrued or realized. For the period ended March 31, 2013, the Company has yet to repatriate its earnings. Accordingly it has not recognized any deferred tax assets or liability in regards to benefits derived from the issuance of stock options.

The Company used the Black-Scholes Model to value the warrants granted. The following shows the weighted average fair value of the grants and the assumptions that were employed in the model:

		2012		2011
Weighted-average fair value of grants:	$	1.3629	$	1.1909
Risk-free interest rate:		0.33%		0.96%
Expected volatility:		59.93%		4.58%
Expected life in months:		36.00		36.00

19.	LEASE COMMITMENTS
	The Company entered into an operating lease agreement leasing a factory building located in Dongguan, China. The lease was signed by Shandong Lorain on behalf of Dongguan Lorain and expires on August 9, 2018.
	The minimum future lease payments for this property at March 31, 2013 are shown in the following table:

From	To		Lease payment
4/1/2013	12/31/2013	$	65,652
1/1/2014	12/31/2014		92,685
1/1/2015	12/31/2015		92,685
1/1/2016	12/31/2016		92,685
1/1/2017	12/31/2017		92,685
1/1/2018	8/9/2018		56,641
		$	493,033

The outstanding lease commitment as of March 31, 2013 was $493,033.

The minimum future lease payments for this property at December 31, 2012 are shown in the following table:

F-27

AMERICAN LORAIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2013 AND DECEMBER 31, 2012
(Stated in US Dollars)

From	To		Lease payment
1/1/2013	12/31/2013	$	87,536
1/1/2014	12/31/2014		92,685
1/1/2015	12/31/2015		92,685
1/1/2016	12/31/2016		92,685
1/1/2017	12/31/2017		92,685
1/1/2018	8/9/2018		56,641
		$	514,917	The outstanding lease commitment as of December 31, 2012 was $514,917.

20.	RISKS
	A.	Credit risk
		Since the Company’s inception, the age of account receivables have been less than one year indicating that the Company is subject to minimal risk borne from credit extended to customers.
	B.	Interest risk
		The company subject to the interest rate risk when their short term loans become due and require refinancing.
	C.	Economic and political risks
		The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC.
		The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.
	D.	Environmental risks
		The Company has procured environmental licenses required by the PRC government. The Company has both a water treatment facility for water used in its production process and secure transportation to remove waste off site. In the event of an accident, the Company has purchased insurance to cover potential damage to employees, equipment, and local environment.
	E.	Inflation Risk
		Management monitors changes in prices levels. Historically inflation has not materially impacted the company’s financial statements; however, significant increases in the price of raw materials and labor that cannot be passed on the Company’s customers could adversely impact the Company’s results of operations.

F-28

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Caution Regarding Forward-Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to the factors described in the section captioned “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission.

In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “would” and similar expressions intended to identify forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

Also, forward-looking statements represent our estimates and assumptions only as of the date of this report. You should read this report completely and with the understanding that our actual future results may be materially different from what we expect.

Except as required by law, we assume no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.

Overview

We are an integrated food manufacturing company headquartered in Shandong Province, China. We develop, manufacture and sell the following types of food products:

- chestnut products,
- convenience foods (including ready-to-cook foods, ready-to-eat foods, and meals ready-to-eat); and
- frozen foods.

We conduct our production activities in China. Our products are sold in domestic markets as well as exported to foreign countries and regions such as Japan, Korea and Europe. We believe that we are the largest processed chestnut foods manufacturer in China. We have developed brand equity for our chestnut products in China, Japan and South Korea over the past 10 to 15 years. We produced over 50 high value-added processed chestnut products in the first quarter of 2013. We derive most of our revenues from sales in China, Japan and South Korea. In 2013, our primary strategy is to continue building our brand recognition in China through consistent marketing efforts towards supermarkets, wholesalers, and significant customers, enhancing the cooperation with other manufacturers and factories, and enhancing the turnover for our existing chestnut, convenience and frozen food products. In addition, we are working to expand our marketing efforts in Asia, Europe and the Middle East. We currently have limited sales and marketing activity in the United States, although our long-term plan is to significantly expand our activities there.

Domestic sales in the first quarter of 2013 accounted for 74.7% for the first quarter of 2013, as compared to 78.9% over the same period of last year. In the coming quarters, American Lorain anticipates higher demand for its traditional chestnut product line along with its fast growing convenience business line, including the bean products, lunch boxes, and pickle vegetables.

Frozen foods sold primarily to select export markets in Europe and supermarkets and wholesale customers in China contributed approximately 21.6% in revenues for the quarter compared to 22.3% in the first quarter of 2012,

Production Factors that Affect our Financial and Operational Condition

Our business depends on obtaining a reliable supply of various agricultural products, including chestnuts, vegetables, fruits, red meat, fish, eggs, rice, flour and packaging products. During the first quarter of 2013, the cost of our raw materials decreased from $26.8 million to $23.5 million, as compared to the first quarter of 2012, for a decrease of approximately 12.3% . We may have to increase the number of our suppliers of raw materials and expand our own agricultural operations in the future to meet growing production demands. Despite our efforts to control our supply of raw materials and maintain good relationships with our suppliers, we could lose one or more of our suppliers at any time. The loss of several suppliers may be difficult to replace and could increase our reliance on higher cost or lower quality suppliers, which could negatively affect our profitability. In addition, if we have to increase the number of our suppliers of raw materials in the future to meet growing production demands, we may not be able to locate new suppliers who could provide us with sufficient materials to meet our needs. Any interruptions to, or decline in, the amount or quality of our raw materials supply could materially disrupt our production and adversely affect our business and financial condition and financial prospects.

4

Seasonality

Chestnut season in China lasts from September to January. We purchase and produce raw chestnuts during these months and store them in our refrigerated storage facilities throughout the year. Once we obtain a purchase order during the rest of the year, we remove the chestnuts from storage, process them and ship them within one day of production. Since most chestnuts are produced and sold in the fourth quarter, the Company generally performs best in the fourth quarter.

Uncertainties that Affect our Financial Condition

We spend a significant amount of cash on our operations, principally to procure raw materials for our products. Many of our suppliers, including chestnut, vegetable and fruit farmers, and suppliers of packaging materials, require us to prepay for their supplies in cash or pay on the same day that such supplies are delivered to us. However, some of the suppliers with whom we have a long-standing business relationship allow us to pay on credit. We fund the majority of our working capital requirements out of cash flow generated from operations. If we fail to generate sufficient sales, or if our suppliers stop offering us credit terms, we may not have sufficient liquidity to fund our operating costs and our business could be adversely affected.

We funded approximately 27.0% of our working capital from the proceeds of short-term loans from Chinese banks in the first quarter of 2013, as compared to 36.3% over the same period last year. We expect to continue to fund our working capital requirements with such loans in the future. Such loans are generally secured by our fixed assets, receivables and/or guarantees by third parties. Our balance of short-term bank loans as of March 31, 2013 was approximately $32.4 million. The term of almost all such loans is one year or less. Historically, we have rolled over such loans on an annual basis. However, commencing 2010, the Chinese government is implementing more stringent credit policies to curb inflation and soaring property prices, which could negatively impact our ability to obtain or roll over these short term loans, and hence not having sufficient funds available to pay all of our borrowings upon maturity. Failure to roll over our short-term borrowings at maturity or to service our debt could result in the imposition of penalties, including increases in rates of interest, legal actions against us by our creditors, or even insolvency. In addition, we completed two private placement financings in September 2010 and October 2009 with net proceeds of $9.0 million and $10.9 million, respectively, the proceeds of which were primarily used as working capital. We also secured a $15 million loan from Deutsche Investitions - und Entwicklungsgesellshaft (“DEG”) in May 2010, which we have fully drawn down in 2011.We can provide no assurances that we will be able to enter into any future financing or refinancing agreements on terms favorable to us, especially considering the current instability of the capital markets.

We anticipate that our existing capital resources and cash flows from operations and current and expected short-term bank loans will be adequate to satisfy our liquidity requirements for the next 12 months. However, if available liquidity is not sufficient to meet our operating and loan obligations as they come due, our plans include obtaining alternative financing arrangements or further reducing expenditures as necessary to meet our cash requirements. However, there is no assurance that, if required, we will be able to raise additional capital or reduce discretionary spending to provide the required liquidity. Currently, the capital markets for small capitalization companies are extremely difficult and banking institutions have become stringent in their lending requirements. Accordingly, we cannot be sure of the availability or terms of any third party financing.

The crisis of the financial and credit markets worldwide in the second half of 2008 has led to a severe economic recession worldwide. Furthermore, the European countries experienced severe debt crisis during 2010 and 2011 which further weighed on the global economy as well as the financial market. The outlook for 2013 is still uncertain, but continuation or worsening of unfavorable economic conditions, including the ongoing global economy and capital markets disruptions, could have an adverse impact on our business, operating results or financial condition in a number of ways. For example, we may experience declines in revenues, profitability and cash flows as a result of reduced orders, delays in receiving orders, delays or defaults in payment or other factors caused by the economic problems of our customers and prospective customers. We may experience supply chain delays, disruptions or other problems associated with financial constraints faced by our suppliers and subcontractors. In addition, changes and volatility in the equity, credit and foreign exchange markets and in the competitive landscape make it increasingly difficult for us to predict our revenues and earnings into the future.

In 2008 and 2009, some of our customers, including some of our large supermarket customers, delayed their payments for up to 60 to 90 days beyond their term. Our cash flow suffered while waiting for such payments. Consequently, at times we had to delay payments to our suppliers and to postpone business expansion as a result of these delayed payments. Starting in 2008 and through 2012, we gradually shortened credit terms for many of our international and domestic customers from between 30 and 180 days to between 30 and 60 days. Our large customers may fail to meet these shortened credit terms, in which case we may not have sufficient cash flow to fund our operating costs and our business could be adversely affected.

Results of Operations

Three Months Ended March 31, 2013 Compared to Three Months Ended March 31, 2012

The following table summarizes the results of our operations during the three-month periods ended March 31, 2013 and March 31, 2012, respectively and provides information regarding the dollar and percentage increase or (decrease) from the three-month period ended March 31, 2013 compared to the three-month period ended March 31, 2012.

5

(All amounts, other than percentages, stated in thousands of U.S. dollars)

	Three months ended March		Increase /	Increase /
	31,		Decrease	Decrease
(In Thousands of USD)	2013	2012	($)	(%)
Net revenues	34,810	37,141	-2,331	-6.3%
Cost of revenues	-27,413	-29,683	2,270	-7.6%
Gross profit	7,397	7,458	-61	-0.8%
Operating expenses
Selling and marketing expenses	-1,791	-1,371	-420	30.6%
General and administrative expenses	-1,422	-1,302	-120	9.2%
Operating Income	4,184	4,784	-601	-12.6%
Government subsidy income	319	635	-316	-49.8%
Interest and other income	194	455	-261	-57.4%
Other expenses	-7	-19	12	-62.0%
Interest expense	-1,061	-909	-151	16.6%
Earnings before tax	3,628	4,946	-1,318	-26.6%
Income tax	-1,014	-1,187	173	-14.6%
Income before minority interests	2,614	3,759	-1,145	-30.5%
Minority interests	95	177	-82	-46.2%
Net income	2,519	3,582	-1,064	-29.7%

Revenue

Net Revenues. Our net revenue for the three months ended March 31, 2013 amounted to $34.8 million, which represents a decrease of approximately $2.3 million, or 6.3%, from the three-month period ended on March 31, 2012, in which our net revenue was $37.1 million. The overall decrease was attributable to the increase / decrease in sales of each of our product segments, as reflected in the following table:

	Three
	months
	ended
(in thousands of U.S. dollars)	3/31/2013	3/31/2012
Category	($)	($)	($)	(%)
Chestnut	16,654,887	16,005,159	649,728	4.1%
Convenience food	10,620,643	12,842,809	-2,222,166	-17.3%
Frozen food	7,534,386	8,293,063	-758,677	-9.1%
Total	34,809,916	37,141,031	-2,331,115	-6.3%

6

Cost of Revenues. During the three months ended March 31, 2013, we experienced a decrease in cost of revenue of $2.3 million, in comparison to the three months ended March 31, 2012, from approximately $29.7 million to $27.4 million, reflecting a decrease of approximately 7.6% . Approximately a decrease of $3.3 million was attributable to raw material costs, which decreased from $26.8 million during the three months ended March 31, 2012 to $23.5 million, or approximately 12.3%, during the three months ended March 31, 2013.

The other factors contributed to 1.0 million increase in cost of revenues were: an increase in wage expense for factory workers, an increase in depreciation expenses for capital equipment and an increase in the cost of consumables used in conjunction with capital equipment.

Gross Profit. Our gross profit decreased $60,554, or 0.8%, to $7.40 million for the three months ended March 31, 2013 from $7.46 million for the same period in 2012 as a result of lower revenues, offset by lower costs of revenues, for the reasons indicated immediately above. Our gross margins increased from 20.1% to 21.3% because our product mix in the period ended March 31, 2013 consisted of more chestnuts foods. Gross profit margins by product segment during the three months ended March 31, 2013 were: 25-28% for chestnuts, 22-24% for convenience foods and 16-18% for frozen foods.

Operating Expenses

Selling and Marketing Expenses. Our selling and marketing expenses increased $420,208 during the first quarter of 2013, as compared to the same period over last year. The following table reflects the main factors that contributed to the increase as well as the dollar amount that each factor contributed to this increase:

Increase in Costs in the Three
Months Ended March 31, 2013 over
the Three Months Ended Mar 31,
2012
(in U.S. dollars)
Transportation	99,114
Port Fee	74,228
Storage Rental	212,687

The increases listed in the table above were partially offset by decrease in other expenses such as advertising and supermarket fees.

General and Administrative Expenses. We experienced an increase in general and administrative expense of $119,829 from approximately $1.3 million to approximately $1.4 million for the three months ended March 31, 2013, compared to the same period in 2012. The following table reflects the main factors that contributed to this increase as well as the dollar amount that each factor contributed to this increase:

Factor	Dollar Increase
Legal Fee	82,532
Travel Expense	35,011
Entertainment Fee	35,303

The increases listed in the table above were partially offset by decreases in dollar amount of other factors, including salaries and benefit, repair expenses, etc.

Income Before Taxation and Minority Interest

Income before taxation and minority interest decreased $1.3 million, or 26.6%, to $3.6 million for the three months ended March 31, 2013 from $4.9 million for the same period of 2012. The decrease was mainly attributable to the decrease of our sales revenue as well as increase in operating expenses as described above in the three months ended March 31, 2013 as compared to the three months ended March 31, 2012.

Income Taxes

Income taxes decreased $172,811, or 14.6%, to $1.0 million in the first quarter of 2013, as compared to $1.2 million in the first quarter of 2012, primarily attributable to the lower earnings before tax.

Effective January 1, 2008, the PRC government implemented a new 25% tax rate across the board for all enterprises, without any tax holiday. However, the PRC government has established a set of transition rules to allow enterprises that already started tax holidays before January 1, 2008 to continue utilizing such tax holidays until they are fully utilized.

7

The income tax rates applicable to our Chinese operating subsidiaries in 2013 and 2012 are depicted in the following table:

	2013	2012
Junan Hongrun	25%	25%
Luotian Lorain	25%	25%
Beijing Lorain	25%	25%
Shandong Lorain	25%	25%
Dongguan Lorain	25%	25%
Shandong Greenpia	25%	25%

Net Income

Net income decreased $1.1 million, or29.7%, to $2.5 million for the three months ended March 31, 2013 from $3.6 million for the same period of 2012. The decrease was attributable to decreased sales revenue and partially offset by decreased cost of goods sold, and higher operating expenses in the three months ended March 31, 2013 as compared to the three months ended March 31, 2012.

Liquidity and Capital Resources

As of March 31, 2013, we had cash and cash equivalents (including restricted cash) of $34.2 million. Our cash and cash equivalents decreased by approximately $2.2 million from December 31, 2012 primarily due to cash used in operations and investments, partially offset by cash provided by financing activities. The following table provides detailed information about our net cash flow for all financial statements periods presented in this report.

Cash Flow (in thousands)

	Three Months Ended
	March 31,
	2013		2012
Net cash provided by (used in) operating activities	(1,364	)	9,293
Net cash provided by (used in) investing activities	(1,874	)	(2,707	)
Net cash provided by (used in) financing activities	1,978		(4,361	)
Net cash flow (outflow)	(1,259	)	2,225

Operating Activities

Net cash used in operating activities was $1.4 million for the three months period ended March 31, 2013 and net cash provided by operating activities in the first quarter of 2012 was approximately $9.3 million. The decrease of approximately $10.7 million in net cash flows provided by operating activities in the first three months of 2013 was primarily a result of lower net income and higher increase in inventory of $8.1 million, partially offset by higher decrease in accounts and other receivables of approximately $1.7 million as compared to the same period in 2012.

Investing Activities

Our main uses of cash for investment activities are payments for the acquisition of property, plants and equipment.

Net cash used in investing activities for the three months period ended March 31, 2013 was $1.9 million, representing a decrease of $0.8 million in net cash used in investing activities from $2.7 million for the same period of 2012. The difference was primarily a result of higher decrease in restricted cash of $3.8 million ,partially offset by $3.2 million increase in deposit in 2013 compared with the same period in 2012.

Financing Activities

Net cash provided by financing activities for the three months period ended March 31, 2013 was $2.0 million, representing an increase of $6.3 million from $4.4 million net cash used in financing activities during the same period in 2012. The increase of the net cash provided by financing activities was primarily a result of higher net bank borrowings in the first quarter of 2013.

8

Loan Facilities

As of March 31, 2013, the amounts and maturity dates for our short-term bank loans are as set forth in the Notes to the Financial Statements. The total amounts outstanding were $32.4 million as of March 31, 2013, compared with $28.7 million as of December 31, 2012. In addition, we are also carrying a long term loan of $15 million from DEG due in March 2016, with eight equal semi-annual principal payments commencing September 2012.

We believe that our currently available working capital, after receiving the aggregate proceeds of the credit facilities referred to above, should be adequate to sustain our operations at our current levels through at least the next twelve months.

Critical Accounting Policies

The preparation of financial statements in conformity with United States generally accepted accounting principles requires our management to make assumptions, estimates and judgments that affect the amounts reported in our financial statements, including the notes thereto, and related disclosures of commitments and contingencies, if any. We consider our critical accounting policies to be those that require significant judgments and estimates in the preparation of financial statements, including the following:

Method of Accounting -- We maintain our general ledger and journals with the accrual method accounting for financial reporting purposes. Accounting policies adopted by us conform to generally accepted accounting principles in the United States and have been consistently applied in the presentation of our financial statements, which are compiled on the accrual basis of accounting.

Use of estimates -- The preparation of the financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates.

Principles of consolidation -- Our consolidated financial statements, which include information about our company and our subsidiaries, are compiled in accordance with generally accepted accounting principles in the United States. All significant inter-company accounts and transactions have been eliminated. Our consolidated financial statements include 100% of assets, liabilities, and net income or loss of our wholly-owned subsidiaries. Ownership interests of minority investors are recorded as minority interests.

As of March 31, 2013, the details pertaining to our subsidiaries were as follows:

	Place of	Attributable equity		Registered
Name of Company	incorporation	interest %		capital
Shandong Lorain Co., Ltd	PRC	80.2	$	12,837,397
Luotian Lorain Co., Ltd	PRC	100		4,019,743
Junan Hongrun Foodstuff Co., Ltd	PRC	100		47,483,773
Beijing Lorain Co., Ltd	PRC	100		1,587,024
Shandong Greenpia Foodstuff Co.,Ltd	PRC	100		2,437,670
Dongguan Lorain Co,,Ltd	PRC	100		158,702
International Lorain Holding Inc.	Cayman Islands	100		49,386,219

Accounting for the Impairment of Long-Lived Assets -- The long-lived assets held and used by us are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets.

9

If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. During the reporting period, there was no impairment loss.

Revenue recognition -- Our revenue recognition policies are in compliance with Staff Accounting Bulletin (SAB) 104. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of ours exist and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue.

Our revenue consists of invoiced value of goods, net of a value-added tax. No product return or sales discount allowance is made as products delivered and accepted by customers are normally not returnable and sales discount is normally not granted after products are delivered.

Recent Accounting Pronouncements

On July 27, 2012, the FASB issued ASU 2012-02, Intangibles-Goodwill and Other (Topic 350) – Testing Indefinite-Lived Intangible Assets for Impairment. The ASU provides entities with an option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the indefinite-lived intangible asset is impaired. If an entity concludes that it is more than 50% likely that an indefinite-lived intangible asset is not impaired, no further analysis is required. However, if an entity concludes otherwise, it would be required to determine the fair value of the indefinite-lived intangible asset to measure the amount of actual impairment, if any, as currently required under US GAAP. The ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of this pronouncement will not have a material impact on its financial statements.

In October, 2012, the FASB issued ASU No. 2012-04, “Technical Corrections and Improvements” (“ASU 2012-04”). The amendments cover a wide range of topics in the FASB ASC. The amendments are incorporated into two sections: a. Technical corrections and improvements, and b. Conforming amendments related to fair value measurements.

a. The amendments in the technical corrections and improvements section are categorized as follows:

•              Source literature amendments. These amendments are considered necessary due to differences between source literature and the FASB ASC. The amendments primarily carry forward legacy document guidance and/or subsequent amendments into the FASB ASC. Often, either writing style or phrasing in the legacy documents did not directly relate to the FASB ASC format and style so that the meaning of certain guidance might have been unintentionally altered.

•             Guidance clarification and reference corrections. These amendments include updated wording or corrected references, or a combination of both.

•             Relocated guidance. These amendments primarily move authoritative literature guidance from one location to another location that is deemed more appropriate within the FASB ASC.

b. On the fair value measurements issue, the guidance in ASU 2012-04 identifies when the use of the term “fair value” should be linked to the definition of fair value included in FASB ASC 820, entitled Fair Value Measurement. Most of the amendments are of a nonsubstantive nature. Many of the amendments relate to conforming wording to be consistent with the terminology in FASB ASC 820 for example, references to market value and current market value have been changed to appropriately refer to fair value so that the literature is consistent throughout.

In October 2012, the FASB issued ASU No. 2012-06, “Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution” (“ASU 2012-06”). This amendment requires that indemnification assets recognized in accordance with Subtopic 805-20, Business Combinations—Identifiable Assets and Liabilities, and Any Noncontrolling Interest, as a result of a government-assisted acquisition of a financial institution involving an indemnification agreement should be subsequently measured on the same basis as the asset subject to indemnification. For public and nonpublic entities, the amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. Management does not expect the adoption of this standard has a significant effect on the Company’s consolidated financial position or results of operations.

As of March 31, 2013, there are no other recently issued accounting standards not yet adopted that would have a material effect on the Company’s consolidated financial statements

In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”). The Update clarifies that ordinary trade receivables and receivables are not in the scope of Accounting Standards Update No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Specifically, Update 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in FASB Accounting Standards Codification® or subject to a master netting arrangement or similar agreement. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. Management does not expect the adoption of this standard has a significant effect on the Company’s consolidated financial position or results of operations.

For public entities, the amendments that are subject to the transition guidance is effective for fiscal periods beginning after December 15, 2012. Management does not expect the adoption of this standard has a significant effect on the Company’s consolidated financial position or results of operations.

Off-Balance Sheet Arrangements

We do not have any off-balance arrangements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required.

10

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including to our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As required by Rule 13a-15 under the Exchange Act, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2013. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of March 31, 2013, and as of the date that the evaluation of the effectiveness of our disclosure controls and procedures was completed, our disclosure controls and procedures were not effective due to the material weakness in our internal control over financial reporting described below.

Internal Controls Over Financial Reporting

Management’s Annual Report on Internal Control over Financial Reporting.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based upon the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on that evaluation, our management concluded that, as of December 31, 2012, our internal controls over financial reporting are not effective.

The material weakness and significant deficiency identified by our management as of December 31, 2012 relates to the ability of the Company to record transactions and provide disclosures in accordance with U.S. GAAP. We did not have sufficient and skilled accounting personnel with an appropriate level of technical accounting knowledge and experience in the application of US GAAP commensurate with our financial reporting requirements. For example, our staff members do not hold licenses such as Certified Public Accountant or Certified Management Accountant in the U.S., have not attended U.S. institutions for training as accountants, and have not attended extended educational programs that would provide sufficient relevant education relating to U.S. GAAP. Our staff needs substantial training to meet the demands of a U.S. public company and our staff’s understanding of the requirements of U.S. GAAP-based reporting are inadequate.

Remediation Initiative

We plan to provide U.S. GAAP training sessions to our accounting team. The training sessions will be organized to help our corporate accounting team gain experience in U.S. GAAP reporting and to enhance their awareness of new and emerging pronouncements with potential impact over our financial reporting. We have also participated in the SEC Year End Conference: An Accounting & Reporting Update for US listed Companies given by former SEC and PCAOB staff on December 2012 in Beijing, and plan to continue participate in such educational seminars, tutorials, and conferences in future.

Changes in Internal Controls over Financial Reporting.

During the three months ended March 31, 2013, there were no changes in our internal control over financial reporting identified in connection with the evaluation performed during the fiscal year covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

11

Inherent Limitations Over Internal Controls.

Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Our internal control over financial reporting includes those policies and procedures that:

(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.

Management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our internal controls will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of internal controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Also, any evaluation of the effectiveness of controls in future periods are subject to the risk that those internal controls may become inadequate because of changes in business conditions, or that the degree of compliance with the policies or procedures may deteriorate.

12

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we have disputes that arise in the ordinary course of business. Currently, there are no material legal proceedings to which we are a party, or to which any of our property is subject.

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. REMOVED AND RESERVED

Not applicable

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

Exhibit No.	Description
31.1	Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

13

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: May 15, 2013

AMERICAN LORAIN CORPORATION

/s/ Si Chen                                         
Si Chen
Chief Executive Officer

/s/ David She                                     
David She
Chief Financial Officer

14

EX-31.1

Exhibit 31.1

Certification Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

I, Si Chen, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of American Lorain Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 15, 2013

/s/ Si Chen                          
Si Chen
Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

I, David She, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of American Lorain Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 15, 2013

/s/ David She                   
David She
Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. 1350,
as adopted Pursuant to Section 906
of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of American Lorain Corporation (the Company”) for the period ended March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the Report”), I, Si Chen, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 15, 2013

/s/ Si Chen                                  
Si Chen
Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification Pursuant to 18 U.S.C. 1350,
as adopted Pursuant to Section 906
of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of American Lorain Corporation (the Company”) for the period ended March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the Report”), I, David She, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 15, 2013

/s/ David She                                 
David She 
Chief Financial Officer

XML

SALES BY PRODUCT TYPE (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Sales by Categories of product type [Table Text Block]

Category		3/31/2013		3/31/2012
Chestnut	$	16,654,887	$	16,005,159
Convenience food		10,620,643		12,842,809
Frozen food		7,534,386		8,293,063
Total	$	34,809,916	$	37,141,031

Schedule of Revenue by Geography [Table Text Block]

Country		3/31/2013		3/31/2012
Australia	$	-	$	12,744
Belgium		-		1,323,480
China		26,011,792		29,322,470
Denmark		1,467,653		-
France		463,415		147,902
Germany		431,619		-
Hong Kong		46,377		6,402
Japan		2,536,962		3,284,003
Malaysia		382,432		390,663
Netherlands		264,859		-
Philippines		78,222		77,965
Poland		-		154,454
Russia		117,160		-
Saudi Arabia		-		306,614
Singapore		113,416		122,162
South Korea		2,515,014		1,254,386
Spain		-		88,378
Taiwan		-		127,811
Thailand		45,404		-
United Kingdom		292,475		487,504
United States		43,116		34,094
Total	$	34,809,916	$	37,141,031

XML

INCOME TAXES (Narrative) (Details)	3 Months Ended
	Mar. 31, 2013
Income Taxes 1	25.00%
Income Taxes 2	25.00%
Income Taxes 3	25.00%

XML

OTHER RECEIVABLES (Narrative) (Details)	3 Months Ended
	Mar. 31, 2013 USD ($) D	Mar. 31, 2013 CNY
Other Receivables 1	$ 7,764,577
Other Receivables 2		49,604,000
Other Receivables 3		69,604,000
Other Receivables 4		20,000,000
Other Receivables 5		15,000,000
Other Receivables 6		42,029,955
Other Receivables 7		26,970,045
Other Receivables 8	4,303,776
Other Receivables 9		9,000,000
Other Receivables 10	5	5
Other Receivables 11		27,000,000
Other Receivables 12	5	5

XML

Schedule of Accrued expenses and other payables (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 1	$ 0
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 2	3,174
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 3	52,605
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 4	55,639
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 5	227,362
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 6	219,630
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 7	237,586
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 8	290,228
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 9	89,390
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 10	103,827
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 11	343,229
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 12	182,378
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 13	21,428
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 14	87,078
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 15	153,853
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 16	37,843
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 17	1,125,454
Accrued Expenses And Other Payable Schedule Of Accrued Expenses And Other Payables 18	$ 979,797

XML

SHARE BASED COMPENSATION (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Share Based Compensation 1	2,500,000
Share Based Compensation 2	$ 166,346
Share Based Compensation 3	1,334,573
Share Based Compensation 4	33.33%
Share Based Compensation 5	107,375
Share Based Compensation 6	58,971
Share Based Compensation 7	56,393
Share Based Compensation 8	890,209
Share Based Compensation 9	503,493
Share Based Compensation 10	$ 644,243

XML

Schedule Of per Share Effect of Tax Exemption (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Income Taxes Schedule Of Per Share Effect Of Tax Exemption 1	$ 0
Income Taxes Schedule Of Per Share Effect Of Tax Exemption 2	0
Income Taxes Schedule Of Per Share Effect Of Tax Exemption 3	34,616,714
Income Taxes Schedule Of Per Share Effect Of Tax Exemption 4	$ 34,507,874
Income Taxes Schedule Of Per Share Effect Of Tax Exemption 5	0.02
Income Taxes Schedule Of Per Share Effect Of Tax Exemption 6	0.03

XML

RESTRICTED CASH (Narrative) (Details)	3 Months Ended
	Mar. 31, 2013 D
Restricted Cash 1	60

XML

LAND USE RIGHTS, NET (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Land use rights [Table Text Block]

		3/31/2013			12/31/2012
Land use rights, at cost	$	6,226,471		$	6,192,379
Utilities rights, at cost		49,640			49,368
Software, at cost		58,013			57,695
Patent, at cost		1,505			1,497
		6,335,629			6,300,939
Less : Accumulated amortization		(1,046,791	)		(1,004,271	)
	$	5,288,838		$	5,296,668

XML

Schedule of difference between the U.S. federal statutory income tax rate and the Companys effective tax rate (Details)	3 Months Ended
	Mar. 31, 2013
Income Taxes Schedule Of Difference Between The U.s. Federal Statutory Income Tax Rate And The Companys Effective Tax Rate 1	35.00%
Income Taxes Schedule Of Difference Between The U.s. Federal Statutory Income Tax Rate And The Companys Effective Tax Rate 2	35.00%
Income Taxes Schedule Of Difference Between The U.s. Federal Statutory Income Tax Rate And The Companys Effective Tax Rate 3	(10.00%)
Income Taxes Schedule Of Difference Between The U.s. Federal Statutory Income Tax Rate And The Companys Effective Tax Rate 4	(10.00%)
Income Taxes Schedule Of Difference Between The U.s. Federal Statutory Income Tax Rate And The Companys Effective Tax Rate 5	2.96%
Income Taxes Schedule Of Difference Between The U.s. Federal Statutory Income Tax Rate And The Companys Effective Tax Rate 6	(1.00%)
Income Taxes Schedule Of Difference Between The U.s. Federal Statutory Income Tax Rate And The Companys Effective Tax Rate 7	27.96%
Income Taxes Schedule Of Difference Between The U.s. Federal Statutory Income Tax Rate And The Companys Effective Tax Rate 8	24.00%

XML

Schedule of Non-current portions of notes payable (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Long-term Debt Schedule Of Non-current Portions Of Notes Payable 1	5.90%
Long-term Debt Schedule Of Non-current Portions Of Notes Payable 2	$ 12,766,093
Long-term Debt Schedule Of Non-current Portions Of Notes Payable 3	12,696,196
Long-term Debt Schedule Of Non-current Portions Of Notes Payable 4	12,766,093
Long-term Debt Schedule Of Non-current Portions Of Notes Payable 5	$ 12,696,196

XML

Schedule of the consolidating subsidiaries (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 1	80.2
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 2	$ 12,837,397
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 3	100
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 4	4,019,743
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 5	100
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 6	47,483,773
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 7	100
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 8	1,587,024
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 9	100
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 10	2,437,670
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 11	100
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 12	158,702
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 13	100
Summary Of Significant Accounting Policies Schedule Of The Consolidating Subsidiaries 14	$ 49,386,219

XML

Schedule of Revenue by Geography (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Sales By Product Type Schedule Of Revenue By Geography 1	$ 0
Sales By Product Type Schedule Of Revenue By Geography 2	12,744
Sales By Product Type Schedule Of Revenue By Geography 3	0
Sales By Product Type Schedule Of Revenue By Geography 4	1,323,480
Sales By Product Type Schedule Of Revenue By Geography 5	26,011,792
Sales By Product Type Schedule Of Revenue By Geography 6	29,322,470
Sales By Product Type Schedule Of Revenue By Geography 7	1,467,653
Sales By Product Type Schedule Of Revenue By Geography 8	0
Sales By Product Type Schedule Of Revenue By Geography 9	463,415
Sales By Product Type Schedule Of Revenue By Geography 10	147,902
Sales By Product Type Schedule Of Revenue By Geography 11	431,619
Sales By Product Type Schedule Of Revenue By Geography 12	0
Sales By Product Type Schedule Of Revenue By Geography 13	46,377
Sales By Product Type Schedule Of Revenue By Geography 14	6,402
Sales By Product Type Schedule Of Revenue By Geography 15	2,536,962
Sales By Product Type Schedule Of Revenue By Geography 16	3,284,003
Sales By Product Type Schedule Of Revenue By Geography 17	382,432
Sales By Product Type Schedule Of Revenue By Geography 18	390,663
Sales By Product Type Schedule Of Revenue By Geography 19	264,859
Sales By Product Type Schedule Of Revenue By Geography 20	0
Sales By Product Type Schedule Of Revenue By Geography 21	78,222
Sales By Product Type Schedule Of Revenue By Geography 22	77,965
Sales By Product Type Schedule Of Revenue By Geography 23	0
Sales By Product Type Schedule Of Revenue By Geography 24	154,454
Sales By Product Type Schedule Of Revenue By Geography 25	117,160
Sales By Product Type Schedule Of Revenue By Geography 26	0
Sales By Product Type Schedule Of Revenue By Geography 27	0
Sales By Product Type Schedule Of Revenue By Geography 28	306,614
Sales By Product Type Schedule Of Revenue By Geography 29	113,416
Sales By Product Type Schedule Of Revenue By Geography 30	122,162
Sales By Product Type Schedule Of Revenue By Geography 31	2,515,014
Sales By Product Type Schedule Of Revenue By Geography 32	1,254,386
Sales By Product Type Schedule Of Revenue By Geography 33	0
Sales By Product Type Schedule Of Revenue By Geography 34	88,378
Sales By Product Type Schedule Of Revenue By Geography 35	0
Sales By Product Type Schedule Of Revenue By Geography 36	127,811
Sales By Product Type Schedule Of Revenue By Geography 37	45,404
Sales By Product Type Schedule Of Revenue By Geography 38	0
Sales By Product Type Schedule Of Revenue By Geography 39	292,475
Sales By Product Type Schedule Of Revenue By Geography 40	487,504
Sales By Product Type Schedule Of Revenue By Geography 41	43,116
Sales By Product Type Schedule Of Revenue By Geography 42	34,094
Sales By Product Type Schedule Of Revenue By Geography 43	34,809,916
Sales By Product Type Schedule Of Revenue By Geography 44	$ 37,141,031

XML

Schedule of Earnings per share (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Earnings Per Share Schedule Of Earnings Per Share 1	$ 2,518,686
Earnings Per Share Schedule Of Earnings Per Share 2	3,582,365
Earnings Per Share Schedule Of Earnings Per Share 3	2,518,686
Earnings Per Share Schedule Of Earnings Per Share 4	3,582,365
Earnings Per Share Schedule Of Earnings Per Share 5	2,518,686
Earnings Per Share Schedule Of Earnings Per Share 6	3,582,365
Earnings Per Share Schedule Of Earnings Per Share 7	2,518,686
Earnings Per Share Schedule Of Earnings Per Share 8	3,582,365
Earnings Per Share Schedule Of Earnings Per Share 9	34,616,714
Earnings Per Share Schedule Of Earnings Per Share 10	34,507,874
Earnings Per Share Schedule Of Earnings Per Share 11	34,616,714
Earnings Per Share Schedule Of Earnings Per Share 12	34,507,874
Earnings Per Share Schedule Of Earnings Per Share 13	0
Earnings Per Share Schedule Of Earnings Per Share 14	0
Earnings Per Share Schedule Of Earnings Per Share 15	0
Earnings Per Share Schedule Of Earnings Per Share 16	0
Earnings Per Share Schedule Of Earnings Per Share 17	34,616,714
Earnings Per Share Schedule Of Earnings Per Share 18	34,507,874
Earnings Per Share Schedule Of Earnings Per Share 19	0.07
Earnings Per Share Schedule Of Earnings Per Share 20	0.10
Earnings Per Share Schedule Of Earnings Per Share 21	0.07
Earnings Per Share Schedule Of Earnings Per Share 22	0.10
Earnings Per Share Schedule Of Earnings Per Share 23	34,616,714
Earnings Per Share Schedule Of Earnings Per Share 24	34,507,874
Earnings Per Share Schedule Of Earnings Per Share 25	34,616,714
Earnings Per Share Schedule Of Earnings Per Share 26	$ 34,507,874

XML

Schedule of the differences between the statutory and effective tax expenses (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Income Taxes Schedule Of The Differences Between The Statutory And Effective Tax Expenses 1	$ 3,704,227
Income Taxes Schedule Of The Differences Between The Statutory And Effective Tax Expenses 2	5,015,197
Income Taxes Schedule Of The Differences Between The Statutory And Effective Tax Expenses 3	(76,177)
Income Taxes Schedule Of The Differences Between The Statutory And Effective Tax Expenses 4	(69,060)
Income Taxes Schedule Of The Differences Between The Statutory And Effective Tax Expenses 5	3,628,050
Income Taxes Schedule Of The Differences Between The Statutory And Effective Tax Expenses 6	4,946,137
Income Taxes Schedule Of The Differences Between The Statutory And Effective Tax Expenses 7	25.00%
Income Taxes Schedule Of The Differences Between The Statutory And Effective Tax Expenses 8	1,014,398
Income Taxes Schedule Of The Differences Between The Statutory And Effective Tax Expenses 9	1,187,209
Income Taxes Schedule Of The Differences Between The Statutory And Effective Tax Expenses 10	0
Income Taxes Schedule Of The Differences Between The Statutory And Effective Tax Expenses 11	0
Income Taxes Schedule Of The Differences Between The Statutory And Effective Tax Expenses 12	1,014,398
Income Taxes Schedule Of The Differences Between The Statutory And Effective Tax Expenses 13	$ 1,187,209

XML

Schedule of Current portions of long-term (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Long-term Debt Schedule Of Current Portions Of Long-term 1	7.07%
Long-term Debt Schedule Of Current Portions Of Long-term 2	$ 159,576
Long-term Debt Schedule Of Current Portions Of Long-term 3	158,702
Long-term Debt Schedule Of Current Portions Of Long-term 4	7.07%
Long-term Debt Schedule Of Current Portions Of Long-term 5	319,152
Long-term Debt Schedule Of Current Portions Of Long-term 6	317,405
Long-term Debt Schedule Of Current Portions Of Long-term 7	5.51%
Long-term Debt Schedule Of Current Portions Of Long-term 8	1,875,000
Long-term Debt Schedule Of Current Portions Of Long-term 9	5.51%
Long-term Debt Schedule Of Current Portions Of Long-term 10	1,873,125
Long-term Debt Schedule Of Current Portions Of Long-term 11	1,875,000
Long-term Debt Schedule Of Current Portions Of Long-term 12	5.51%
Long-term Debt Schedule Of Current Portions Of Long-term 13	1,873,125
Long-term Debt Schedule Of Current Portions Of Long-term 14	4,224,978
Long-term Debt Schedule Of Current Portions Of Long-term 15	$ 4,226,107

XML

LEASE COMMITMENTS

3 Months Ended

Mar. 31, 2013

LEASE COMMITMENTS [Text Block]

19.	LEASE COMMITMENTS
	The Company entered into an operating lease agreement leasing a factory building located in Dongguan, China. The lease was signed by Shandong Lorain on behalf of Dongguan Lorain and expires on August 9, 2018.
	The minimum future lease payments for this property at March 31, 2013 are shown in the following table:

From	To		Lease payment
4/1/2013	12/31/2013	$	65,652
1/1/2014	12/31/2014		92,685
1/1/2015	12/31/2015		92,685
1/1/2016	12/31/2016		92,685
1/1/2017	12/31/2017		92,685
1/1/2018	8/9/2018		56,641
		$	493,033

The outstanding lease commitment as of March 31, 2013 was $493,033.

The minimum future lease payments for this property at December 31, 2012 are shown in the following table:

From	To		Lease payment
1/1/2013	12/31/2013	$	87,536
1/1/2014	12/31/2014		92,685
1/1/2015	12/31/2015		92,685
1/1/2016	12/31/2016		92,685
1/1/2017	12/31/2017		92,685
1/1/2018	8/9/2018		56,641
		$	514,917	The outstanding lease commitment as of December 31, 2012 was $514,917.

XML

LAND USE RIGHTS, NET (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2013 Y
Land Use Rights, Net 1	50
Land Use Rights, Net 2	$ 42,519
Land Use Rights, Net 3	$ 55,010

XML

SHARE BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

Price Range	Number of Shares
$0 - $4.99	1,334,573 shares
$5.00 - $9.99	0 shares
$10.00 - $14.99	0 shares

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

		2012		2011
Weighted-average fair value of grants:	$	1.3629	$	1.1909
Risk-free interest rate:		0.33%		0.96%
Expected volatility:		59.93%		4.58%
Expected life in months:		36.00		36.00

XML

Schedule of Sales by Categories of product type (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Sales By Product Type Schedule Of Sales By Categories Of Product Type 1	$ 16,654,887
Sales By Product Type Schedule Of Sales By Categories Of Product Type 2	16,005,159
Sales By Product Type Schedule Of Sales By Categories Of Product Type 3	10,620,643
Sales By Product Type Schedule Of Sales By Categories Of Product Type 4	12,842,809
Sales By Product Type Schedule Of Sales By Categories Of Product Type 5	7,534,386
Sales By Product Type Schedule Of Sales By Categories Of Product Type 6	8,293,063
Sales By Product Type Schedule Of Sales By Categories Of Product Type 7	34,809,916
Sales By Product Type Schedule Of Sales By Categories Of Product Type 8	$ 37,141,031

XML

LONG-TERM DEBT (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Current portions of long-term [Table Text Block]

		3/31/2013		12/31/2012
Loans from China Development Bank
• Interest rate at 7.07% per annum due 5/20/2013		159,576		158,702
• Interest rate at 7.07% per annum due 11/20/2013		319,152		317,405
Loans from Deutsche Investitions-und
Entwicklungsgesellschaft mbH (“DEG”)
• Interest rate at 5.510% per annum due 3/15/2013				1,875,000
• Interest rate at 5.510% per annum due 9/15/2013		1,873,125		1,875,000
• Interest rate at 5.510% per annum due 3/15/2014		1,873,125
	$	4,224,978	$	4,226,107

Schedule of Non-current portions of long-term debt [Table Text Block]

		3/31/2013		12/31/2012
Loans from Deutsche Investitions-und Entwicklungsgesellschaft mbH (“DEG”)
• Interest rate at 5.510% per annum due 9/16/2016		8,314,323		10,097,340
Loans from China Development Bank
• Interest rate at 7.07% per annum due 9/24/2015		4,308,557		4,284,966
	$	12,622,880	$	14,382,306

Schedule of Non-current portions of notes payable [Table Text Block]

		3/31/2013		12/31/2012
Note payable issued by Shanghai Pudong Development Bank
• Interest rate at 5.9% per annum due 12/28/2015		12,766,093		12,696,196
	$	12,766,093	$	12,696,196

XML

CAPITALIZATION (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Capitalization 1	24,923,178
Capitalization 2	1,037,858
Capitalization 3	489,330
Capitalization 4	360,207
Capitalization 5	110,752
Capitalization 6	249,455
Capitalization 7	34,616,714
Capitalization 8	56,393
Capitalization 9	5,011,169
Capitalization 10	1,334,573
Capitalization 11	1,753,909
Capitalization 12	501,115
Capitalization 13	81,155
Capitalization 14	3,440,800
Capitalization 15	$ 2.80
Capitalization 16	$ 8,955,730
Capitalization 17	5,000
Capitalization 18	731,707
Capitalization 19	5,161,176
Capitalization 20	2,445,262
Capitalization 21	2,636,160
Capitalization 22	108,840
Capitalization 23	2,264,420
Capitalization 37	1,037,858
Capitalization 38	489,330
Capitalization 39	1,334,573
Capitalization 40	1,753,909
Capitalization 41	501,115
Capitalization 42	50,722
Capitalization 43	20,289
Capitalization 44	10,144
Capitalization 45	5,197,940

XML

Schedule of Land use rights (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Land Use Rights, Net Schedule Of Land Use Rights 1	$ 6,226,471
Land Use Rights, Net Schedule Of Land Use Rights 2	6,192,379
Land Use Rights, Net Schedule Of Land Use Rights 3	49,640
Land Use Rights, Net Schedule Of Land Use Rights 4	49,368
Land Use Rights, Net Schedule Of Land Use Rights 5	58,013
Land Use Rights, Net Schedule Of Land Use Rights 6	57,695
Land Use Rights, Net Schedule Of Land Use Rights 7	1,505
Land Use Rights, Net Schedule Of Land Use Rights 8	1,497
Land Use Rights, Net Schedule Of Land Use Rights 9	6,335,629
Land Use Rights, Net Schedule Of Land Use Rights 10	6,300,939
Land Use Rights, Net Schedule Of Land Use Rights 11	(1,046,791)
Land Use Rights, Net Schedule Of Land Use Rights 12	(1,004,271)
Land Use Rights, Net Schedule Of Land Use Rights 13	5,288,838
Land Use Rights, Net Schedule Of Land Use Rights 14	$ 5,296,668

XML

Schedule of financial assets and liabilities at fair value (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 1	$ 31,869,400
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 2	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 3	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 4	31,869,400
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 5	2,297,799
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 6	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 7	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 8	2,297,799
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 9	34,167,199
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 10	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 11	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 12	34,167,199
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 13	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 14	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 15	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 16	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 17	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 18	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 19	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 20	0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 1		32,345,603
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 2		0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 3		0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 4		32,345,603
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 5		3,998,956
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 6		0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 7		0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 8		3,998,956
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 9		36,344,559
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 10		0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 11		0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 12		36,344,559
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 13		0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 14		0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 15		0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 16		0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 17		0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 18		0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 19		0
Summary Of Significant Accounting Policies Schedule Of Financial Assets And Liabilities At Fair Value 20		$ 0

XML

TRADE ACCOUNTS RECEIVABLE (Narrative) (Details)	3 Months Ended
	Mar. 31, 2013 D
Trade Accounts Receivable 1	30
Trade Accounts Receivable 2	60
Trade Accounts Receivable 3	90
Trade Accounts Receivable 4	0
Trade Accounts Receivable 5	15

XML

RESTRICTED CASH

3 Months Ended

Mar. 31, 2013

RESTRICTED CASH [Text Block]

3.

RESTRICTED CASH

Restricted Cash represents interest bearing deposits placed with banks to secure banking facilities in the form of loans and notes payable. The restriction of funds is based on time. The funds that collateralize loans are held for 60 days in savings account that pay interest at the prescribed national daily savings account rate. For funds that underline notes payable, the cash is deposited in six month time deposits that pay interest at the national time deposit rate.

XML

Schedule of Trade accounts receivable (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 1	$ 38,136,666
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 2	49,177,915
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 3	(446,342)
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 4	(443,898)
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 5	37,690,324
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 6	48,734,017
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 7	(443,898)
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 8	(379,693)
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 9	(2,444)
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 10	(64,205)
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 11	0
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 12	0
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 13	(446,342)
Trade Accounts Receivable Schedule Of Trade Accounts Receivable 14	$ (443,898)

XML

LEASE COMMITMENTS (Tables)

3 Months Ended

Mar. 31, 2013

Mar. 31, 2012

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

From	To		Lease payment
4/1/2013	12/31/2013	$	65,652
1/1/2014	12/31/2014		92,685
1/1/2015	12/31/2015		92,685
1/1/2016	12/31/2016		92,685
1/1/2017	12/31/2017		92,685
1/1/2018	8/9/2018		56,641
		$	493,033

From	To		Lease payment
1/1/2013	12/31/2013	$	87,536
1/1/2014	12/31/2014		92,685
1/1/2015	12/31/2015		92,685
1/1/2016	12/31/2016		92,685
1/1/2017	12/31/2017		92,685
1/1/2018	8/9/2018		56,641
		$	514,917	The outstanding lease commitment as of December 31, 2012 was $514,917.

XML

TRADE ACCOUNTS RECEIVABLE (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Trade accounts receivable [Table Text Block]

		3/31/2013			12/31/2012
Trade accounts receivable	$	38,136,666		$	49,177,915
Less : Allowance for doubtful accounts		(446,342	)		(443,898	)
	$	37,690,324		$	48,734,017
Allowance for bad debt:		3/31/2013			12/31/2012
Beginning balance	$	(443,898	)	$	(379,693	)
Additions to allowance		(2,444	)		(64,205	)
Bad debt written-off		-			-
Ending balance	$	(446,342	)	$	(443,898	)

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2013

Dec. 31, 2012

Schedule of the consolidating subsidiaries [Table Text Block]

	Place of	Attributable equity	Registered
Name of Company	incorporation	interest %	capital
Shandong Lorain Co., Ltd	PRC	80.2	$12,837,397
Luotian Lorain Co., Ltd	PRC	100	4,019,743
Junan Hongrun Foodstuff Co., Ltd	PRC	100	47,483,773
Beijing Lorain Co., Ltd	PRC	100	1,587,024
Shandong Greenpia Foodstuff Co.,Ltd	PRC	100	2,437,670
Dongguan Lorain Co,,Ltd	PRC	100	158,702
International Lorain Holding Inc.	Cayman Islands	100	49,386,219

Schedule of estimated useful lives [Table Text Block]

Buildings	40 years
Landscaping, plant and tree	30 years
Machinery and equipment	10 years
Motor vehicles	10 years
Office equipment	5 years

Schedule of Corporate income tax rate [Table Text Block]

Taxable Income
Rate	Over	But Not Over	Of Amount Over
15%	0	50,000	0
25%	50,000	75,000	50,000
34%	75,000	100,000	75,000
39%	100,000	335,000	100,000
34%	335,000	10,000,000	335,000
35%	10,000,000	15,000,000	10,000,000
38%	15,000,000	18,333,333	15,000,000
35%	18,333,333	-	-

Schedule of average exchange rates [Table Text Block]

	3/31/2013	12/31/2012	3/31/2012
Year end RMB : US$ exchange rate	6.2666	6.3011	6.3122
Average yearly RMB : US$ exchange rate	6.2769	6.3034	6.2976

Schedule of financial assets and liabilities at fair value [Table Text Block]

At December 31,		Quoted in		Significant
2012:		Active Markets		Other		Significant
		for Identical		Observable		Unobservable
		Assets		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	31,869,400	$	-	$	-	$	31,869,400
Restricted Cash		2,297,799		-		-		2,297,799
Total financial assets	$	34,167,199	$	-	$	-	$	34,167,199
Financial liabilities:
Notes payable	$	-	$	-	$	-	$	-
Total financial liabilities	$	-	$	-	$	-	$	-

At December 31,		Quoted in		Significant
2012:		Active Markets		Other		Significant
		for Identical		Observable		Unobservable
		Assets		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	32,345,603	$	-	$	-	$	32,345,603
Restricted Cash		3,998,956		-		-		3,998,956
Total financial assets	$	36,344,559	$	-	$	-	$	36,344,559
Financial liabilities:
Notes payable	$	-	$	-	$	-	$	-
Total financial liabilities	$	-	$	-	$	-	$	-

XML

LEASE COMMITMENTS (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Lease Commitments 1	$ 493,033

XML

ORGANIZATION, BASIS OF PRESENTATION, AND PRINCIPAL ACTIVITIES (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Organization, Basis Of Presentation, And Principal Activities 1	100.00%
Organization, Basis Of Presentation, And Principal Activities 2	80.20%
Organization, Basis Of Presentation, And Principal Activities 3	19.80%
Organization, Basis Of Presentation, And Principal Activities 4	100.00%
Organization, Basis Of Presentation, And Principal Activities 5	$ 2,100,000
Organization, Basis Of Presentation, And Principal Activities 6	50.00%
Organization, Basis Of Presentation, And Principal Activities 7	731,707
Organization, Basis Of Presentation, And Principal Activities 8	$ 2.87
Organization, Basis Of Presentation, And Principal Activities 9	50.00%
Organization, Basis Of Presentation, And Principal Activities 10	100.00%
Organization, Basis Of Presentation, And Principal Activities 11	$ 383,482
Organization, Basis Of Presentation, And Principal Activities 12	697,663
Organization, Basis Of Presentation, And Principal Activities 13	5,099,503
Organization, Basis Of Presentation, And Principal Activities 14	319,913
Organization, Basis Of Presentation, And Principal Activities 15	32.84
Organization, Basis Of Presentation, And Principal Activities 16	10,508,643

XML

OTHER RECEIVABLES (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Other receivables [Table Text Block]

		3/31/2013		12/31/2012
Advances to employees for job/travel disbursements		549,623		79,367
Amount due by a non-related enterprise		320,673		326,270
Other non-related receivables		192,182		76,168
Other related receivables		131,411		99,263
Short-term investment sale receivable		4,303,776		4,280,212
	$	5,497,665	$	4,861,280

Schedule of Related party receivable [Table Text Block]

		3/31/2013		12/31/2012
Chen, Si	$	67,523	$	67,523
You, Huadong		63,888		31,740
	$	131,411	$	99,263

XML

INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Inventories [Table Text Block]

		3/31/2013		12/31/2012
Raw materials	$	23,659,298	$	18,700,879
Finished goods		24,085,773		19,371,825
	$	47,745,071	$	38,072,704

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2013

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)	Method of Accounting
	The Company maintains its general ledger and journals with the accrual method accounting for financial reporting purposes. The financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of financial statements, which are compiled on the accrual basis of accounting.
	The Company regrouped certain accounts in its presentation of changes in assets and liabilities in the statement of cash flows for the period ended March 31, 2013 in order to be consistent with the presentation provided for the year ended December 31, 2012. There was no impact in earnings for the regrouping.

(b)	Principles of consolidation
	The consolidated financial statements which include the Company and its subsidiaries are compiled in accordance with generally accepted accounting principles in the United States of America. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of those wholly-owned subsidiaries; ownership interests of minority investors are recorded as minority interests.
	As of March 31, 2013, the detailed identities of the consolidating subsidiaries are as follows:

	Place of	Attributable equity	Registered
Name of Company	incorporation	interest %	capital
Shandong Lorain Co., Ltd	PRC	80.2	$12,837,397
Luotian Lorain Co., Ltd	PRC	100	4,019,743
Junan Hongrun Foodstuff Co., Ltd	PRC	100	47,483,773
Beijing Lorain Co., Ltd	PRC	100	1,587,024
Shandong Greenpia Foodstuff Co.,Ltd	PRC	100	2,437,670
Dongguan Lorain Co,,Ltd	PRC	100	158,702
International Lorain Holding Inc.	Cayman Islands	100	49,386,219

(c)

Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates.

(d)	Cash and cash equivalents
	The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.

(e)	Investment securities
	The Company classifies securities it holds for investment purposes into trading or available-for-sale. Trading securities are bought and held principally for the purpose of selling them in the near term. All securities not included in trading securities are classified as available-for-sale.
	Trading and available-for-sale securities are recorded at fair value. Unrealized holding gains and losses on trading securities are included in the net income. Unrealized holding gains and losses, net of the related tax effect, on available for sale securities are excluded from net income and are reported as a separate component of other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis.
	A decline in the market value of any available-for-sale security below cost that is deemed to be other-than- temporary results in a reduction in carrying amount to fair value. The impairment is charged as an expense to the statement of income and comprehensive income and a new cost basis for the security is established. To determine whether impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year end, and forecasted performance of the investee.
	Premiums and discounts are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield using the effective-interest method. Dividend and interest income are recognized when earned.

(f)	Trade receivables
	Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred.

(g)	Inventories
	Inventories consisting of finished goods and raw materials are stated at the lower of cost or market value. Finished goods are comprised of direct materials, direct labor and an appropriate proportion of overhead.

(h)	Customer deposits and advances to suppliers
	Customer deposits were received from customers in connection with orders of products to be delivered in future periods.
	Advance to suppliers is a good faith deposit paid to the supplier for the purpose of committing the supplier to provide product promptly upon delivery of the Company’s purchase order for raw materials, supplies, equipment, building materials etc. Pursuant to the Company’s arrangements with its suppliers, this deposit is generally 20% of the total amount contracted for. This type of transaction is classified as a prepayment category under the account name “Advance to Suppliers” until such time as the Company’s purchase order is delivered, at which point this account is reduced by reclassification of the applicable amount to the appropriate asset account such as inventory or fixed assets or construction in progress.

(i)	Property, plant and equipment
	Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method with a salvage value of 10%. Estimated useful lives of the plant and equipment are as follows:

Buildings	40 years
Landscaping, plant and tree	30 years
Machinery and equipment	10 years
Motor vehicles	10 years
Office equipment	5 years

The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized.

(j)	Construction in progress
	Construction in progress represents direct and indirect construction or acquisition costs. The construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until the asset is completed and ready for intended use.

(k)	Land Use Rights
	Land use rights are carried at cost and amortized on a straight-line basis over a specified period. Amortization is provided using the straight-line method over 40 - 50 years.

(l)	Accounting for the Impairment of Long-Lived Assets
	The long-lived assets held by the Company are reviewed in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 360-10-35, “Accounting for the Impairment or Disposal of Long-Lived Assets,” for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Impairment is present if carrying amount of an asset is less than its undiscounted cash flows to be generated.
	If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company believes no impairment has occurred to its assets during 2013 and 2012.

(m)	Advertising
	All advertising costs are expensed as incurred.

(n)	Shipping and handling
	All shipping and handling are expensed as incurred.

(o)	Research and development
	All research and development costs are expensed as incurred.

(p)	Retirement benefits
	Retirement benefits in the form of contributions under defined contribution retirement plans to the relevant authorities are charged to the consolidated statement of income as incurred.

(q)	Income taxes
	The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain.
	The Company has implemented ASC Topic 740, “Accounting for Income Taxes.” Income tax liabilities computed according to the United States and People’s Republic of China (PRC) tax laws are provided for the tax effects of transactions reported in the financial statements and consists of taxes currently due plus deferred taxes related primarily to differences between the basis of fixed assets and intangible assets for financial and tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will be either taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes also are recognized for operating losses that are available to offset future income taxes. A valuation allowance is created to evaluate deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize that tax benefit, or that future realization is uncertain.
	Effective January 1, 2008, PRC government implemented a new 25% tax rate across the board for all enterprises regardless of whether domestic or foreign enterprise without any tax holiday which is defined as "two-year exemption followed by three-year half exemption" hitherto enjoyed by tax payers. As a result of the new tax law of a standard 25% tax rate, tax holidays terminated as of December 31, 2007. However, PRC government has established a set of transition rules to allow enterprises already started tax holidays before January 1, 2008, to continue enjoying the tax holidays until being fully utilized.
	The Company is subject to United States Tax according to Internal Revenue Code Sections 951 and 957. Corporate income tax is imposed on progressive rates in the range of: -

Taxable Income
Rate	Over	But Not Over	Of Amount Over
15%	0	50,000	0
25%	50,000	75,000	50,000
34%	75,000	100,000	75,000
39%	100,000	335,000	100,000
34%	335,000	10,000,000	335,000
35%	10,000,000	15,000,000	10,000,000
38%	15,000,000	18,333,333	15,000,000
35%	18,333,333	-	-

(r)

Statutory reserves

Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. The Company transferred $0 and $2,264,420 from retained earnings to statutory reserves for the period ended March 31, 2013 and year ended December 31, 2012. PRC laws prescribe that an enterprise operating at a profit, must appropriate, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital.

(s)

Foreign currency translation

The accompanying financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB). The financial statements are translated into United States dollars from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

	3/31/2013	12/31/2012	3/31/2012
Year end RMB : US$ exchange rate	6.2666	6.3011	6.3122
Average yearly RMB : US$ exchange rate	6.2769	6.3034	6.2976

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollars at the rates used in translation.

(t)	Revenue recognition
	The Company's revenue recognition policies are in compliance with Staff accounting bulletin (SAB) 104. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectibility is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue.
	The Company's revenue consists of invoiced value of goods, net of a value-added tax (VAT). The Company allows its customers to return products if they are defective. However, this rarely happens and amounts returned have been de minimis.
	The Company gradually switched its sales model from direct sales to third party distributor model and issues 1% sales incentive to distributors. The Company modified its accounting policy for the recognition of revenue accordingly. Given the circumstances of how the Company conducts its incentive program, the Company books the payments settled in cash as a contra account to Gross Revenue, and includes the amount in its reported “net revenue”. The Company has considered the guidance in FASB ASC 605-50 (EITF 01-9) and will account for its sales incentive program accordingly.

(u)	Earnings per share
	Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income by the sum of the weighted average number of ordinary shares outstanding and potential dilutive securities during the year. During the period ended March 31, 2013, no warrants were issued nor options were granted. For the year ended December 31, 2010, 81,155 warrants were issued to certain service providers. For the year ended December 31, 2009, 1,334,573 stock options were granted to employees pursuant to the Company’s equity incentive plan; 2,255,024 warrants were issued to investors in connection with a PIPE financing. These warrants and options could be potentially dilutive if the market price of the Company’s common stock exceeds the exercise price for these securities.
	The Company computes earnings per share (“EPS”) in accordance with Statement of Financial Accounting Standards No. 128, “Earnings per share” (“SFAS No. 128”), and SEC Staff Accounting Bulletin No. 98 (“SAB 98”). SFAS No. 128 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later.

Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

(v)

Financial Instruments

The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

• Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

• Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.

As of March 31, 2013 and December 31, 2012, the Company did not identify any assets and liabilities that were required to be presented on the balance sheet at fair value.

The following tables present the Company’s financial assets and liabilities at fair value in accordance to ASC 820-10:

At December 31,		Quoted in		Significant
2012:		Active Markets		Other		Significant
		for Identical		Observable		Unobservable
		Assets		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	31,869,400	$	-	$	-	$	31,869,400
Restricted Cash		2,297,799		-		-		2,297,799
Total financial assets	$	34,167,199	$	-	$	-	$	34,167,199
Financial liabilities:
Notes payable	$	-	$	-	$	-	$	-
Total financial liabilities	$	-	$	-	$	-	$	-

At December 31,		Quoted in		Significant
2012:		Active Markets		Other		Significant
		for Identical		Observable		Unobservable
		Assets		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	32,345,603	$	-	$	-	$	32,345,603
Restricted Cash		3,998,956		-		-		3,998,956
Total financial assets	$	36,344,559	$	-	$	-	$	36,344,559
Financial liabilities:
Notes payable	$	-	$	-	$	-	$	-
Total financial liabilities	$	-	$	-	$	-	$	-

(w)	Commitments and contingencies
	Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

(x)	Comprehensive income
	Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s current component of other comprehensive income includes the foreign currency translation adjustment and unrealized gain or loss.
	The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid- in capital and distributions to stockholders due to investments by stockholders. Comprehensive income for the periods ended March 31, 2013 and 2012 included net income and foreign currency translation adjustments.

(y)	Recent accounting pronouncements
	On July 27, 2012, the FASB issued ASU 2012-02, Intangibles-Goodwill and Other (Topic 350) – Testing Indefinite-Lived Intangible Assets for Impairment. The ASU provides entities with an option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the indefinite-lived intangible asset is impaired. If an entity concludes that it is more than 50% likely that an indefinite-lived intangible asset is not impaired, no further analysis is required. However, if an entity concludes otherwise, it would be required to determine the fair value of the indefinite-lived intangible asset to measure the amount of actual impairment, if any, as currently required under US GAAP. The ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of this pronouncement will not have a material impact on its financial statements.
	In October, 2012, the FASB issued ASU No. 2012-04, “Technical Corrections and Improvements” (“ASU 2012-04”). The amendments cover a wide range of topics in the FASB ASC. The amendments are incorporated into two sections: a. Technical corrections and improvements, and b. Conforming amendments related to fair value measurements.

a. The amendments in the technical corrections and improvements section are categorized as follows:

• Source literature amendments. These amendments are considered necessary due to differences between source literature and the FASB ASC. The amendments primarily carry forward legacy document guidance and/or subsequent amendments into the FASB ASC. Often, either writing style or phrasing in the legacy documents did not directly relate to the FASB ASC format and style so that the meaning of certain guidance might have been unintentionally altered.

• Guidance clarification and reference corrections. These amendments include updated wording or corrected references, or a combination of both.

• Relocated guidance. These amendments primarily move authoritative literature guidance from

one location to another location that is deemed more appropriate within the FASB ASC.

b. On the fair value measurements issue, the guidance in ASU 2012-04 identifies when the use of the term “fair value” should be linked to the definition of fair value included in FASB ASC 820, entitled Fair Value Measurement. Most of the amendments are of a nonsubstantive nature. Many of the amendments relate to conforming wording to be consistent with the terminology in FASB ASC 820 for example, references to market value and current market value have been changed to appropriately refer to fair value so that the literature is consistent throughout.

In October 2012, the FASB issued ASU No. 2012-06, “Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution” (“ASU 2012-06”). This amendment requires that indemnification assets recognized in accordance with Subtopic 805-20, Business Combinations—Identifiable Assets and Liabilities, and Any Noncontrolling Interest, as a result of a government-assisted acquisition of a financial institution involving an indemnification agreement should be subsequently measured on the same basis as the asset subject to indemnification. For public and nonpublic entities, the amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. Management does not expect the adoption of this standard has a significant effect on the Company’s consolidated financial position or results of operations.

As of March 31, 2013, there are no other recently issued accounting standards not yet adopted that would have a material effect on the Company’s consolidated financial statements

In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”). The Update clarifies that ordinary trade receivables and receivables are not in the scope of Accounting Standards Update No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Specifically, Update 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in FASB Accounting Standards Codification® or subject to a master netting arrangement or similar agreement. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. Management does not expect the adoption of this standard has a significant effect on the Company’s consolidated financial position or results of operations.

For public entities, the amendments that are subject to the transition guidance is effective for fiscal periods beginning after December 15, 2012. Management does not expect the adoption of this standard has a significant effect on the Company’s consolidated financial position or results of operations.

XML

PROPERTY, PLANT AND EQUIPMENT (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Property, Plant and Equipment [Table Text Block]

		3/31/2013			12/31/2012
At Cost:
Buildings	$	79,195,338		$	78,730,172
Landscaping, plant and tree		7,987,338			7,943,605
Machinery and equipment		11,465,642			11,374,635
Office equipment		368,749			363,306
Motor vehicles		844,497			839,874
	$	99,861,564		$	99,251,592
Less : Accumulated depreciation
Buildings		(6,389,730	)		(5,911,971	)
Landscaping, plant and tree		(2,319,954	)		(2,108,661	)
Machinery and equipment		(6,097,105	)		(5,842,946	)
Office equipment		(234,600	)		(221,800	)
Motor vehicles		(543,027	)		(526,487	)
		(15,584,416	)		(14,611,866	)
	$	84,277,148		$	84,639,726

XML

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)	3 Months Ended
	Mar. 31, 2013
Share Based Compensation Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 1	1.3629
Share Based Compensation Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 2	1.1909
Share Based Compensation Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 3	0.33%
Share Based Compensation Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 4	0.96%
Share Based Compensation Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 5	59.93%
Share Based Compensation Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 6	4.58%
Share Based Compensation Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 7	36.00
Share Based Compensation Schedule Of Share-based Payment Award, Stock Options, Valuation Assumptions 8	36.00

XML

INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of the differences between the statutory and effective tax expenses [Table Text Block]

		3/31/2013			3/31/2012
Income attributed to PRC	$	3,704,227		$	5,015,197
Loss attributed to US		(76,177	)		(69,060	)
Income before tax		3,628,050			4,946,137
PRC Statutory Tax at 25% Rate		1,014,398			1,187,209
Effect of tax exemption granted		-			-
Income tax	$	1,014,398		$	1,187,209

Schedule Of per Share Effect of Tax Exemption [Table Text Block]

Per Share Effect of Tax Exemption
		3/31/2013		3/31/2012
Effect of tax exemption granted	$	-	$	-
Weighted-Average Shares Outstanding Basic		34,616,714		34,507,874
Per share effect	$	0.02	$	0.03

Schedule of difference between the U.S. federal statutory income tax rate and the Companys effective tax rate [Table Text Block]

	2013	2012
U.S. federal statutory income tax rate	35%	35%
Lower rates in PRC, net	-10%	-10%
Tax holiday for foreign investments	2.96%	-1.00%
The Company’s effective tax rate	27.96%	24.00%

Schedule of tax rates for its subsidiaries [Table Text Block]

	China Income Tax Rate
Subsidiary	2013	2012
International Lorain	0%	0%
Junan Hongran	25%	25%
Luotian Lorain	25%	25%
Beijing Lorain	25%	25%
Shandong Lorain	25%	25%
Shandong Greenpia	25%	25%
Dongguan Lorain	25%	25%

XML

NON-CONTROLLING INTERESTS (Narrative) (Details)	3 Months Ended
	Mar. 31, 2013
Non-controlling Interests 1	19.80%

XML

Schedule of Non-current portions of long-term debt (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Long-term Debt Schedule Of Non-current Portions Of Long-term Debt 1	5.51%
Long-term Debt Schedule Of Non-current Portions Of Long-term Debt 2	$ 8,314,323
Long-term Debt Schedule Of Non-current Portions Of Long-term Debt 3	10,097,340
Long-term Debt Schedule Of Non-current Portions Of Long-term Debt 4	7.07%
Long-term Debt Schedule Of Non-current Portions Of Long-term Debt 5	4,308,557
Long-term Debt Schedule Of Non-current Portions Of Long-term Debt 6	4,284,966
Long-term Debt Schedule Of Non-current Portions Of Long-term Debt 7	12,622,880
Long-term Debt Schedule Of Non-current Portions Of Long-term Debt 8	$ 14,382,306

XML

CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2013	Dec. 31, 2012
Current assets
Cash and cash equivalents	$ 31,869,400	$ 32,345,603
Restricted cash	2,297,799	3,998,956
Trade accounts receivable	37,690,324	48,734,017
Other receivables	5,497,665	4,861,280
Inventory	47,745,071	38,072,704
Advance to suppliers	23,178,999	22,295,529
Prepaid expenses and taxes	1,641,030	381,905
Deferred tax asset	176,176	175,211
Security deposits and other Assets	12,488,431	9,293,615
Total current assets	162,584,895	160,158,820
Non-current assets
Investment	0	270,019
Property, plant and equipment, net	84,277,148	84,639,726
Construction in Progress, net	5,525	0
Land use rights, net	5,288,838	5,296,668
TOTAL ASSETS	252,156,406	250,365,233
Current liabilities
Short-term bank loans	32,393,962	28,725,143
Long-term debt - current portion	4,224,978	4,226,107
Accounts payable	2,410,523	3,646,560
Taxes payable	2,509,667	5,005,346
Accrued liabilities and other payables	1,125,454	979,797
Customers deposits	3,557	1,428
Total current liabilities	42,668,141	42,584,381
Long-term liabilities
Long-term bank loans	12,622,880	14,382,306
Notes payable	12,766,093	12,696,196
TOTAL LIABILITIES	68,057,114	69,662,883
STOCKHOLDERS' EQUITY
Preferred Stock, $.001 par value, 5,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively	0	0
Common Stock, $0.001 par value, 200,000,000 shares authorized; 34,616,714 shares issued and outstanding as of March 31, 2013 and December 31, 2012, respectively	34,617	34,617
Additional paid-in capital	53,487,389	53,487,389
Statutory reserves	16,922,494	16,922,494
Retained earnings	86,616,647	84,097,961
Accumulated other comprehensive income	16,993,951	16,210,661
Non-controlling interests	10,044,194	9,949,228
TOTAL STOCKHOLDER'S EQUITY	184,099,292	180,702,350
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$ 252,156,406	$ 250,365,233

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2013 Y
Summary Of Significant Accounting Policies 1	100.00%
Summary Of Significant Accounting Policies 2	20.00%
Summary Of Significant Accounting Policies 3	10.00%
Summary Of Significant Accounting Policies 4	40
Summary Of Significant Accounting Policies 5	50
Summary Of Significant Accounting Policies 6	25.00%
Summary Of Significant Accounting Policies 7	25.00%
Summary Of Significant Accounting Policies 8	$ 0
Summary Of Significant Accounting Policies 9	$ 2,264,420
Summary Of Significant Accounting Policies 10	10.00%
Summary Of Significant Accounting Policies 11	50.00%
Summary Of Significant Accounting Policies 12	1.00%
Summary Of Significant Accounting Policies 13	81,155
Summary Of Significant Accounting Policies 14	1,334,573
Summary Of Significant Accounting Policies 15	2,255,024
Summary Of Significant Accounting Policies 16	50.00%

XML

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (USD $)	Common Stock [Member]	Additional Paid-In Capital [Member]	Statutory Reserves [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Noncontrolling Interest [Member]	Total
Beginning Balance at Dec. 31, 2011	$ 34,508	$ 53,015,636	$ 13,976,899	$ 65,939,713	$ 15,353,885	$ 8,628,127	$ 156,948,768
Beginning Balance (Shares) at Dec. 31, 2011	34,507,874
Issuance of share based compensation	109	503,493					503,602
Issuance of share based compensation (Shares)							108,840
Repayment of financing cost		(31,740)					(31,740)
Net income				21,743,769			21,743,769
Allocation to non-controlling interests				(1,321,101)		1,321,101
Appropriations to statutory reserve			2,264,420	(2,264,420)
Adjustment to statutory reserve			681,175				681,175
Foreign currency translation adjustment					856,776		856,776
Ending Balance at Dec. 31, 2012	34,617	53,487,389	16,922,494	84,097,961	16,210,661	9,949,228	180,702,350
Ending Balance (Shares) at Dec. 31, 2012							34,616,714
Beginning Balance at Jan. 01, 2013
Net income				2,613,652			2,613,652
Allocation to non-controlling interests				(94,966)		94,966
Foreign currency translation adjustment					783,291		783,291
Ending Balance at Mar. 31, 2013	$ 34,617	$ 53,487,389	$ 16,922,494	$ 86,616,647	$ 16,993,952	$ 10,044,194	$ 184,099,292
Ending Balance (Shares) at Mar. 31, 2013							34,616,714

XML

Schedule of Corporate income tax rate (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 1	15.00%
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 2	$ 0
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 3	50,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 4	0
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 5	25.00%
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 6	50,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 7	75,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 8	50,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 9	34.00%
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 10	75,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 11	100,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 12	75,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 13	39.00%
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 14	100,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 15	335,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 16	100,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 17	34.00%
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 18	335,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 19	10,000,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 20	335,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 21	35.00%
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 22	10,000,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 23	15,000,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 24	10,000,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 25	38.00%
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 26	15,000,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 27	18,333,333
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 28	15,000,000
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 29	35.00%
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 30	18,333,333
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 31	0
Summary Of Significant Accounting Policies Schedule Of Corporate Income Tax Rate 32	$ 0

XML

TAXES PAYABLES (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Taxes Payable [Table Text Block]

		3/31/2013		12/31/2012
Value added tax payable	$	21,784	$	428,889
Corporate income tax payable		1,270,783		3,370,655
Employee payroll tax withholding		4,475		4,936
Property tax payable		57,742		55,877
Stamp tax payable		1,448		1,440
Business tax payable		154,960		154,112
Land use tax payable		69,788		65,525
Import tariffs		145		454
Capital gain tax payable		928,542		923,458
	$	2,509,667	$	5,005,346

XML

Schedule of Inventories (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Inventories Schedule Of Inventories 1	$ 23,659,298
Inventories Schedule Of Inventories 2	18,700,879
Inventories Schedule Of Inventories 3	24,085,773
Inventories Schedule Of Inventories 4	19,371,825
Inventories Schedule Of Inventories 5	47,745,071
Inventories Schedule Of Inventories 6	$ 38,072,704

XML

INCOME TAXES

3 Months Ended

Mar. 31, 2013

INCOME TAXES [Text Block]

16.	INCOME TAXES
	All of the Company’s operations are in the PRC, and in accordance with the relevant tax laws and regulations of PRC, the corporate income tax rate is 25%.
	The following tables provide the reconciliation of the differences between the statutory and effective tax expenses for the periods ended March 31, 2013 and 2012:

		3/31/2013			3/31/2012
Income attributed to PRC	$	3,704,227		$	5,015,197
Loss attributed to US		(76,177	)		(69,060	)
Income before tax		3,628,050			4,946,137
PRC Statutory Tax at 25% Rate		1,014,398			1,187,209
Effect of tax exemption granted		-			-
Income tax	$	1,014,398		$	1,187,209

Per Share Effect of Tax Exemption
		3/31/2013		3/31/2012
Effect of tax exemption granted	$	-	$	-
Weighted-Average Shares Outstanding Basic		34,616,714		34,507,874
Per share effect	$	0.02	$	0.03

The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate was as follows for the periods ended March 31, 2013 and 2012:

	2013	2012
U.S. federal statutory income tax rate	35%	35%
Lower rates in PRC, net	-10%	-10%
Tax holiday for foreign investments	2.96%	-1.00%
The Company’s effective tax rate	27.96%	24.00%

Effective January 1, 2008, the PRC government implemented a new 25% tax rate across the board for all enterprises regardless of whether domestic or foreign enterprise without any tax holiday which is defined as “two-year exemption followed by three-year half exemption” hitherto enjoyed by tax payers. As a result of the new tax law of a standard 25% tax rate, tax holidays were terminated as of December 31, 2007. However, PRC government has established a set of transition rules to allow enterprises already started tax holidays before January 1, 2008, to continue enjoying the tax holidays until being fully utilized.

The Company has accrued a deferred tax asset as a result of its net operating loss in and before March 31, 2013 because the Company planned to setup operations in the United States. The company anticipates that the operations within the United States will generate income in the future so that it will be able to take full advantage of the accrued asset. Accordingly the Company has not provided a valuation allowances for the accrued tax asset.

The Company’s has detailed the tax rates for its subsidiaries for 2013 and 2012 in the following table.

	China Income Tax Rate
Subsidiary	2013	2012
International Lorain	0%	0%
Junan Hongran	25%	25%
Luotian Lorain	25%	25%
Beijing Lorain	25%	25%
Shandong Lorain	25%	25%
Shandong Greenpia	25%	25%
Dongguan Lorain	25%	25%

XML

ACCRUED EXPENSES AND OTHER PAYABLE (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Accrued expenses and other payables [Table Text Block]

		3/31/2013		12/31/2012
Accrued salaries and wages	$	-	$	3,174
Accrued utility expenses		52,605		55,639
Accrued interest expenses		227,362		219,630
Accrued transportation expenses		237,586		290,228
Other accruals		89,390		103,827
Business and other taxes		343,229		182,378
Disbursement payable		21,428		87,078
Accrued staff welfare		153,853		37,843
	$	1,125,454	$	979,797

XML

SHARE BASED COMPENSATION

3 Months Ended

Mar. 31, 2013

SHARE BASED COMPENSATION [Text Block]

18.	SHARE BASED COMPENSATION
	On July 27, 2009, the Company’s Board of Directors adopted the American Lorain Corporation 2009 Incentive Stock Plan (the “Plan”). The Plan provides that the maximum number of shares of the Company’s common stock that may be issued under the Plan is 2,500,000 shares. The Company’s employees, directors, and service providers are eligible to participate in the Plan.
	For the year ended December 31, 2009, the Company recorded a total of $166,346 of shared based compensation expense. The Company issued warrants that upon exercise would result in the issuance of 1,334,573 common shares. These stock options vest over three years, where 33.33% vest annually. The expense related to the stock options was $107,375. The Company also recorded expense of $58,971 for the issuance of 56,393 common shares to participants, respectively. The common shares vested immediately. Given the materiality and nature of share based compensation, the entire expense has been recorded as general and administrative expenses. For the year ended December 31, 2010, the Company recorded a total of $890,209 stock option and its related general and administrative expenses.

During the period ended December 31, 2012 and 2011, the Company recorded a total of $503,493 and $644,243 stock option and its related general and administrative expenses.

During the period ended March 31, 2013, the Company did not grant any stock option.

The range of the exercise prices of the stock options granted since inception of the plan are shown in the following table:

Price Range	Number of Shares
$0 - $4.99	1,334,573 shares
$5.00 - $9.99	0 shares
$10.00 - $14.99	0 shares

No tax benefit has yet to be accrued or realized. For the period ended March 31, 2013, the Company has yet to repatriate its earnings. Accordingly it has not recognized any deferred tax assets or liability in regards to benefits derived from the issuance of stock options.

The Company used the Black-Scholes Model to value the warrants granted. The following shows the weighted average fair value of the grants and the assumptions that were employed in the model:

		2012		2011
Weighted-average fair value of grants:	$	1.3629	$	1.1909
Risk-free interest rate:		0.33%		0.96%
Expected volatility:		59.93%		4.58%
Expected life in months:		36.00		36.00

XML

Schedule of Short-term bank loans (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Short-term Bank Loans Schedule Of Short-term Bank Loans 1	6.44%
Short-term Bank Loans Schedule Of Short-term Bank Loans 2	$ 0
Short-term Bank Loans Schedule Of Short-term Bank Loans 3	1,031,566
Short-term Bank Loans Schedule Of Short-term Bank Loans 4	5.88%
Short-term Bank Loans Schedule Of Short-term Bank Loans 5	1,148,948
Short-term Bank Loans Schedule Of Short-term Bank Loans 6	1,142,658
Short-term Bank Loans Schedule Of Short-term Bank Loans 7	5.88%
Short-term Bank Loans Schedule Of Short-term Bank Loans 8	1,005,330
Short-term Bank Loans Schedule Of Short-term Bank Loans 9	999,825
Short-term Bank Loans Schedule Of Short-term Bank Loans 10	5.88%
Short-term Bank Loans Schedule Of Short-term Bank Loans 11	638,305
Short-term Bank Loans Schedule Of Short-term Bank Loans 12	634,810
Short-term Bank Loans Schedule Of Short-term Bank Loans 13	5.88%
Short-term Bank Loans Schedule Of Short-term Bank Loans 14	1,356,397
Short-term Bank Loans Schedule Of Short-term Bank Loans 15	1,348,971
Short-term Bank Loans Schedule Of Short-term Bank Loans 16	5.88%
Short-term Bank Loans Schedule Of Short-term Bank Loans 17	1,117,033
Short-term Bank Loans Schedule Of Short-term Bank Loans 18	0
Short-term Bank Loans Schedule Of Short-term Bank Loans 19	12.136%
Short-term Bank Loans Schedule Of Short-term Bank Loans 20	0
Short-term Bank Loans Schedule Of Short-term Bank Loans 21	714,161
Short-term Bank Loans Schedule Of Short-term Bank Loans 22	1.512%
Short-term Bank Loans Schedule Of Short-term Bank Loans 23	1,595,762
Short-term Bank Loans Schedule Of Short-term Bank Loans 24	0
Short-term Bank Loans Schedule Of Short-term Bank Loans 25	1.26%
Short-term Bank Loans Schedule Of Short-term Bank Loans 26	1,436,185
Short-term Bank Loans Schedule Of Short-term Bank Loans 27	0
Short-term Bank Loans Schedule Of Short-term Bank Loans 28	7.80%
Short-term Bank Loans Schedule Of Short-term Bank Loans 29	2,393,642
Short-term Bank Loans Schedule Of Short-term Bank Loans 30	2,380,537
Short-term Bank Loans Schedule Of Short-term Bank Loans 31	6.372%
Short-term Bank Loans Schedule Of Short-term Bank Loans 32	0
Short-term Bank Loans Schedule Of Short-term Bank Loans 33	8.40%
Short-term Bank Loans Schedule Of Short-term Bank Loans 34	158,702
Short-term Bank Loans Schedule Of Short-term Bank Loans 35	8.40%
Short-term Bank Loans Schedule Of Short-term Bank Loans 36	319,152
Short-term Bank Loans Schedule Of Short-term Bank Loans 37	317,405
Short-term Bank Loans Schedule Of Short-term Bank Loans 38	8.40%
Short-term Bank Loans Schedule Of Short-term Bank Loans 39	1,117,033
Short-term Bank Loans Schedule Of Short-term Bank Loans 40	1,110,917
Short-term Bank Loans Schedule Of Short-term Bank Loans 41	1,276,609
Short-term Bank Loans Schedule Of Short-term Bank Loans 42	1,269,620
Short-term Bank Loans Schedule Of Short-term Bank Loans 43	6.16%
Short-term Bank Loans Schedule Of Short-term Bank Loans 44	0
Short-term Bank Loans Schedule Of Short-term Bank Loans 45	1,110,917
Short-term Bank Loans Schedule Of Short-term Bank Loans 46	6.04%
Short-term Bank Loans Schedule Of Short-term Bank Loans 47	0
Short-term Bank Loans Schedule Of Short-term Bank Loans 48	793,512
Short-term Bank Loans Schedule Of Short-term Bank Loans 49	6.71%
Short-term Bank Loans Schedule Of Short-term Bank Loans 50	0
Short-term Bank Loans Schedule Of Short-term Bank Loans 51	634,810
Short-term Bank Loans Schedule Of Short-term Bank Loans 52	7.20%
Short-term Bank Loans Schedule Of Short-term Bank Loans 53	638,305
Short-term Bank Loans Schedule Of Short-term Bank Loans 54	0
Short-term Bank Loans Schedule Of Short-term Bank Loans 55	9.36%
Short-term Bank Loans Schedule Of Short-term Bank Loans 56	957,457
Short-term Bank Loans Schedule Of Short-term Bank Loans 57	952,215
Short-term Bank Loans Schedule Of Short-term Bank Loans 58	1,595,762
Short-term Bank Loans Schedule Of Short-term Bank Loans 59	1,587,024
Short-term Bank Loans Schedule Of Short-term Bank Loans 60	6.90%
Short-term Bank Loans Schedule Of Short-term Bank Loans 61	3,191,523
Short-term Bank Loans Schedule Of Short-term Bank Loans 62	3,174,049
Short-term Bank Loans Schedule Of Short-term Bank Loans 63	6.71%
Short-term Bank Loans Schedule Of Short-term Bank Loans 64	1,595,762
Short-term Bank Loans Schedule Of Short-term Bank Loans 65	1,587,024
Short-term Bank Loans Schedule Of Short-term Bank Loans 66	6.00%
Short-term Bank Loans Schedule Of Short-term Bank Loans 67	797,881
Short-term Bank Loans Schedule Of Short-term Bank Loans 68	793,512
Short-term Bank Loans Schedule Of Short-term Bank Loans 69	6.60%
Short-term Bank Loans Schedule Of Short-term Bank Loans 70	1,595,762
Short-term Bank Loans Schedule Of Short-term Bank Loans 71	1,587,024
Short-term Bank Loans Schedule Of Short-term Bank Loans 72	10.20%
Short-term Bank Loans Schedule Of Short-term Bank Loans 73	3,191,523
Short-term Bank Loans Schedule Of Short-term Bank Loans 74	3,174,049
Short-term Bank Loans Schedule Of Short-term Bank Loans 75	7.20%
Short-term Bank Loans Schedule Of Short-term Bank Loans 76	1,595,762
Short-term Bank Loans Schedule Of Short-term Bank Loans 77	1,587,024
Short-term Bank Loans Schedule Of Short-term Bank Loans 78	6.048%
Short-term Bank Loans Schedule Of Short-term Bank Loans 79	797,881
Short-term Bank Loans Schedule Of Short-term Bank Loans 80	0
Short-term Bank Loans Schedule Of Short-term Bank Loans 81	6.16%
Short-term Bank Loans Schedule Of Short-term Bank Loans 82	1,117,033
Short-term Bank Loans Schedule Of Short-term Bank Loans 83	0
Short-term Bank Loans Schedule Of Short-term Bank Loans 84	6.00%
Short-term Bank Loans Schedule Of Short-term Bank Loans 85	797,881
Short-term Bank Loans Schedule Of Short-term Bank Loans 86	0
Short-term Bank Loans Schedule Of Short-term Bank Loans 87	10.40%
Short-term Bank Loans Schedule Of Short-term Bank Loans 88	478,729
Short-term Bank Loans Schedule Of Short-term Bank Loans 89	0
Short-term Bank Loans Schedule Of Short-term Bank Loans 90	6.60%
Short-term Bank Loans Schedule Of Short-term Bank Loans 91	638,305
Short-term Bank Loans Schedule Of Short-term Bank Loans 92	634,810
Short-term Bank Loans Schedule Of Short-term Bank Loans 93	32,393,962
Short-term Bank Loans Schedule Of Short-term Bank Loans 94	$ 28,725,143

XML

ORGANIZATION, BASIS OF PRESENTATION, AND PRINCIPAL ACTIVITIES

3 Months Ended

Mar. 31, 2013

ORGANIZATION, BASIS OF PRESENTATION, AND PRINCIPAL ACTIVITIES [Text Block]

1.	ORGANIZATION, BASIS OF PRESENTATION, AND PRINCIPAL ACTIVITIES
	(a)	Organization history of American Lorain Corporation (formerly known as Millennium Quest, Inc.)
		American Lorain Corporation (the “Company” or “ALN”) was originally a Delaware corporation incorporated on February 4, 1986. From inception through May 3, 2007, the Company did not engage in any active business operations other than in search and evaluation of potential business opportunity to become an acquiree of a reverse-merger deal. On May 3, 2007, the Company entered into a share exchange agreement as described under “Reverse-Merger” below. On November 12, 2009, the Company filed a statement of merger in the state of Nevada to transfer the Company’s jurisdiction from Delaware to Nevada.
	(b)	Organization History of International Lorain Holding Inc. and its subsidiaries
		ALN owns 100% of the equity of International Lorain Holding Inc. (“ILH”). ILH is a Cayman Islands company incorporated on August 4, 2006 and was wholly-owned by Mr. Hisashi Akazawa until May 3, 2007. ILH presently has two direct wholly-owned subsidiaries, Junan Hongrun and Luotian Lorain, and three indirectly wholly-owned subsidiaries through Junan Hongrun, which are Beijing Lorain, Dongguan Lorain, and Shandong Greenpia Foodstuff Co., Ltd. (“Shandong Greenpia”).
		In addition, the Company directly and indirectly has 80.2% ownership of Shandong Lorain. The rest of the 19.8%, which is owned by the State under the name of Shandong Economic Development Investment Co. Ltd., is not included as a part of the Group.
		On April 9, 2009, the Company, through its Junan Hongrun subsidiary, invested cash to establish Dongguan Lorain. Dongguan Lorain is indirectly 100% beneficially owned by the Company.
		On June 28, 2010, the Company signed an equity transfer agreement with Shandong Greenpia. Shandong Greenpia was originally directly owned by Taebong Inc. and Shandong Luan Trade Company. The Company paid $2,100,000 to Korean Taebong Inc. for 50% equity of Shandong Greenpia on September 20, 2010. On September 23, 2010, the Company issued 731,707 shares of restricted stock at an agreed price of $2.87 per share to the owner of Shandong Luan Trade Company, Mr. Ji Zhenwei, for the remaining 50% equity of Shandong Greenpia. Since September 23, 2010, Shandong Greenpia was directly owned by both Junan Hongrun and ILH. As a result, Shandong Greenpia is 100% owned by the Company. Accordingly, the Company booked a gain of $383,482 which is included in the statement of income as other income.
	(c)	Reverse-Merger
		On May 3, 2007, the Company entered into a share exchange agreement with ILH whereby the Company consummated its acquisition of ILH by issuance of 697,663 Series B voting convertible preferred shares to the shareholders of ILH in exchange of 5,099,503 ILH shares. Concurrently on May 3, 2007, the Company also entered into a securities purchase agreement with certain investors and Mr. Hisashi Akazawa and Mr. Si Chen (each a “beneficial owner”) whereby the Company issued 319,913 (after reverse-split at 32.84 from 10,508,643) common shares to its shareholders as consideration of the Company’s reverse-merger with Lorain.
		The share exchange transaction is sometimes referred to hereafter as the “reverse-merger transaction.” The share exchange transaction has been accounted for as a recapitalization of ALN where the Company (the legal acquirer) is considered the accounting acquiree and ILH (the acquiree) is considered the accounting acquirer. As a result of this transaction, the Company is deemed to be a continuation of the business of ILH.
		Accordingly, the accompanying consolidated financial statements are those of the accounting acquirer, ILH. The historical stockholders’ equity of the accounting acquirer prior to the share exchange has been retroactively restated as if the share exchange transaction occurred as of the beginning of the first period presented. See also Note 13 Capitalization.

(d)

Business Activities

The Company develops, manufactures, and sells convenience foods (including ready-to-cook (or RTC) foods; ready-to-eat (or RTE) foods and meals ready-to-eat (or MRE); chestnut products; and frozen foods, in hundreds of varieties. The Company operates through indirect Chinese subsidiaries. The products are sold in domestic markets as well as exported to foreign countries and regions such as Japan, Korea and Europe.

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Preferred Stock, Par Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	34,616,714	34,616,714
Common Stock, Shares, Outstanding	34,616,714	34,616,714

XML

ACCRUED EXPENSES AND OTHER PAYABLE

3 Months Ended

Mar. 31, 2013

ACCRUED EXPENSES AND OTHER PAYABLE [Text Block]

11.	ACCRUED EXPENSES AND OTHER PAYABLE
	Accrued expenses and other payables consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Accrued salaries and wages	$	-	$	3,174
Accrued utility expenses		52,605		55,639
Accrued interest expenses		227,362		219,630
Accrued transportation expenses		237,586		290,228
Other accruals		89,390		103,827
Business and other taxes		343,229		182,378
Disbursement payable		21,428		87,078
Accrued staff welfare		153,853		37,843
	$	1,125,454	$	979,797

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2013	May 15, 2013
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Trading Symbol	aln
Entity Registrant Name	American Lorain CORP
Entity Central Index Key	0001117057
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		34,616,714
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1

XML

LONG-TERM DEBT

3 Months Ended

Mar. 31, 2013

LONG-TERM DEBT [Text Block]

12.	LONG-TERM DEBT
	Current portions of long-term debt consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Loans from China Development Bank
• Interest rate at 7.07% per annum due 5/20/2013		159,576		158,702
• Interest rate at 7.07% per annum due 11/20/2013		319,152		317,405
Loans from Deutsche Investitions-und
Entwicklungsgesellschaft mbH (“DEG”)
• Interest rate at 5.510% per annum due 3/15/2013				1,875,000
• Interest rate at 5.510% per annum due 9/15/2013		1,873,125		1,875,000
• Interest rate at 5.510% per annum due 3/15/2014		1,873,125
	$	4,224,978	$	4,226,107

Non-current portions of long-term debt consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Loans from Deutsche Investitions-und Entwicklungsgesellschaft mbH (“DEG”)
• Interest rate at 5.510% per annum due 9/16/2016		8,314,323		10,097,340
Loans from China Development Bank
• Interest rate at 7.07% per annum due 9/24/2015		4,308,557		4,284,966
	$	12,622,880	$	14,382,306

The Company’s loan with DEG began repaying the loan in semi-annual installments on September 15, 2012. As of December 31, 2012, the Company has repaid $1,875,000 in principal. The loan was collateralized with the following terms:

(a.)	Create and register a first ranking mortgage in the amount of about USD12,000,000 on its land and building in favor of DEG.
(b.)	Undertake to provide a share pledge of Mr. Si Chen shares in the sponsor in the amount of about USD12,000,000 and being the majority shareholder in the sponsor in form and substance satisfactory to DEG
(c.)	The total amount of the first ranking mortgage as indicated in the Loan Agreement (Article 12(1)(a)) and the value of the pledged shares of Mr. Si Chen (Loan Agreement (Article 12(1)(a))) should be at least USD24,000,000.
(d.)	Undertake to provide a guarantee from the Shareholder in form and substance satisfactory to DEG.

Non-current portions of notes payable consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Note payable issued by Shanghai Pudong Development Bank
• Interest rate at 5.9% per annum due 12/28/2015		12,766,093		12,696,196
	$	12,766,093	$	12,696,196

The note was collateralized by a restricted cash deposit in the amount of RMB20,540,158 as a compensating balance to the note.

XML

Schedule of tax rates for its subsidiaries (Details)	3 Months Ended
	Mar. 31, 2013
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 1	0.00%
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 2	0.00%
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 3	25.00%
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 4	25.00%
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 5	25.00%
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 6	25.00%
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 7	25.00%
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 8	25.00%
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 9	25.00%
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 10	25.00%
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 11	25.00%
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 12	25.00%
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 13	25.00%
Income Taxes Schedule Of Tax Rates For Its Subsidiaries 14	25.00%

XML

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Net revenues	$ 34,809,916	$ 37,141,031
Cost of revenues	(27,412,665)	(29,683,226)
Gross profit	7,397,251	7,457,805
Operating expenses
Selling and marketing expenses	(1,791,483)	(1,371,275)
General and administrative expenses	(1,421,984)	(1,302,153)
Operating Expenses	(3,213,467)	(2,673,428)
Operating income	4,183,784	4,784,377
Government subsidy income	318,593	635,163
Interest income	6,909	58,132
Other income	186,649	396,668
Other expenses	(7,118)	(18,735)
Interest expense	(1,060,767)	(909,468)
Earnings before tax	3,628,050	4,946,137
Income tax	(1,014,398)	(1,187,209)
Net income	2,613,652	3,758,928
Other comprehensive income:
Foreign currency translation gain	783,291	(80,463)
Comprehensive Income	3,396,943	3,678,465
Net income attributable to:
-Common stockholders	2,518,686	3,582,365
-Non-controlling interest	94,966	176,563
Net income	$ 2,613,652	$ 3,758,928
Earnings per share
- Basic	$ 0.07	$ 0.10
- Diluted	$ 0.07	$ 0.10
Weighted average shares outstanding
- Basic	34,616,714	34,507,874
- Diluted	34,616,714	34,507,874

XML

INVENTORIES

3 Months Ended

Mar. 31, 2013

INVENTORIES [Text Block]

6.	INVENTORIES
	Inventories consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Raw materials	$	23,659,298	$	18,700,879
Finished goods		24,085,773		19,371,825
	$	47,745,071	$	38,072,704

XML

OTHER RECEIVABLES

3 Months Ended

Mar. 31, 2013

OTHER RECEIVABLES [Text Block]

5.	OTHER RECEIVABLES
	Other receivables consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Advances to employees for job/travel disbursements		549,623		79,367
Amount due by a non-related enterprise		320,673		326,270
Other non-related receivables		192,182		76,168
Other related receivables		131,411		99,263
Short-term investment sale receivable		4,303,776		4,280,212
	$	5,497,665	$	4,861,280

Advances to employees for job/travel disbursements consisted of advances to employees for transportation, meals, client entertainment, commissions, and procurement of certain raw materials. The advances issued to employees may be carried for extended periods of time because employees may spend several months out in the field working to procure new sales contracts or fulfill existing contracts.

Specifically, the company uses every available employee to arrange purchases with desirable chestnut or other raw material growers. However, because many of these growers are in rural farming areas of China where traditional banking and credit arrangements are difficult to implement, the Company must utilize cash purchases and also must contract for its future needs by placing a good faith deposit in cash with the growers. However none of these advances to employees for delivery to the growers on behalf of the Company are “personal loans” to the employees. Advances to employees for purchase of materials in other receivables are adjusted to advances to suppliers as of March 31, 2013.

Related party receivable consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Chen, Si	$	67,523	$	67,523
You, Huadong		63,888		31,740
	$	131,411	$	99,263

Related party receivable represented advances issued by management for job or travel disbursement in the normal course of business. The receivable had no impact on earnings. As with other employees, officers sign notes when cash is issued to them as job or travel disbursement.

In order to satisfy certain criteria for obtaining the long-term loan with DEG, as noted in footnote 12, Junan Hongrun lent money to Mr. You, Huadong to purchase life insurance.

Related party receivable amounts are disclosed as other related receivables in other receivables.

On March 13, 2011, the Company entered into an agreement with Jiangsu Heng An Industrial Investment Group Co., Ltd. to sell the Company’s short-term investment in the amount of $7,764,577 (RMB49,604,000) of a parcel of land located in Junan Town, Shandong Province, to construct residential buildings. The land was sold to Jiangsu Heng An at a total sale price of RMB69,604,000 and a guaranteed gross profit of RMB20,000,000 without consideration of profit/(loss) of the residential building project. The gain on the sale of the short-term investment excluding taxes payable was recorded as other income on the statements of income and comprehensive income. Title of the land transferred from the Company to Jiangsu Heng An with receipt of an initial deposit of RMB15,000,000. As of March 31, 2013, a total of RMB42,029,955 has been received and RMB26,970,045 (USD4,303,776) is classified as Other Receivable. According to the contract, the Company will be entitled to receive RMB9,000,000 within 5 days after the title transfer and construction approval is complete, and RMB27,000,000 within 5 days after the residential building main frame is completed

XML

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2013

EARNINGS PER SHARE [Text Block]

17.	EARNINGS PER SHARE
	Components of basic and diluted earnings per share were as follows:

		For the period		For the period
		Ended		Ended
		March 31,		March 31,
		2013		2012
Basic Earnings Per Share Numerator
Net Income	$	2,518,686	$	3,582,365
Income Available to Common Stockholders	$	2,518,686	$	3,582,365
Diluted Earnings Per Share Numerator
Income Available to Common Stockholders	$	2,518,686	$	3,582,365
Income Available to Common Stockholders on Converted Basis	$	2,518,686	$	3,582,365
Original Shares:
Additions from Actual Events
-Issuance of Common Stock		34,616,714		34,507,874
Basic Weighted Average Shares Outstanding		34,616,714		34,507,874
Dilutive Shares:
Additions from Potential Events
Exercise of Investor Warrants & Placement Agent Warrants		-		-
Exercise of Employee & Director Stock Options		-		-
Diluted Weighted Average Shares Outstanding:		34,616,714		34,507,874
Earnings Per Share
-Basic	$	0.07	$	0.10
-Diluted	$	0.07	$	0.10
Weighted Average Shares Outstanding
-Basic		34,616,714		34,507,874
-Diluted		34,616,714		34,507,874

XML

CAPITALIZATION

3 Months Ended

Mar. 31, 2013

CAPITALIZATION [Text Block]

13.	CAPITALIZATION
	Dating back to May 3, 2007, the Company underwent a reverse-merger and a concurrent financing transaction that resulted in 24,923,178 shares of outstanding common stock that remained unchanged until through December 31, 2007. In connection with the financing, the Company also issued 1,037,858 and 489,330 warrants to the PIPE investors and placement agent, respectively. During 2008, several holders of warrants issued in connection with the financing transaction exercised their rights to purchase shares at the prescribed exercise price. The holders of the warrants exercised the right to purchase a total of 360,207 shares; however, because the holders did not pay in cash for the warrants, 110,752 of those shares were cancelled as consideration in lieu of the warrant holders paying in cash. Ultimately, 249,455 of new shares were issued to those who exercised their warrant. The Company also made an adjustment to its outstanding share count for rounding errors as result of the split and reverse splits made at the time of the reverse merger. The number of shares in the adjustment was an addition of seven shares. The Company believes the adjustment of seven shares is immaterial to both prior and current earnings per share calculation. As detailed in the table below, the total number of outstanding shares at December 31, 2012 was 34,616,714.
	During the year 2009, the Company issued 56,393 shares of stock to its employees and vendors and 5,011,169 shares to investors. The Company issued 1,334,573 stock options to employees on July 28, 2009; 1,753,909 shares of Series A warrants and 501,115 shares of Series B warrants were issued to investors on October 28, 2009.
	During the year 2010, the Company issued 2,000 shares to a service provider on February 10, 2010 and 81,155 warrants to various service providers on January 5, 2010. The Company issued to investors 3,440,800 shares at an agreed price of $2.80 per share for a PIPE financing on September 10, 2010. This financing brought $8,955,730 net proceeds to the Company. The Company issued 5,000 shares to its employee on September 23, 2010. 731,707 shares of restricted stock were issued to the owner of Shandong Greenpia, Mr. Ji Zhenwei on September 24, 2010 as part of acquisition cost.
	For the year 2010, the Company transferred 5,161,176 from retained earnings to additional paid up capital and 2,445,262 from retained earnings to statutory reserve. These transfers are to be used for future company development, recovery of losses and increase of capital, as approved, to expand production or operations.
	For the year 2011, the Company transferred 2,636,160 from retained earnings to statutory reserve. These transfers are to be used for future company development, recovery of losses and increase of capital, as approved, to expand production or operations.
	For the year 2012, the Company issued 108,840 shares to its employees as employee stock compensation. The Company transferred 2,264,420 from retained earnings to statutory reserve. These transfers are to be used for future company development, recovery of losses and increase of capital, as approved, to expand production or operations.

American Lorain Corporation
Capitalization Reconciliation Table

	Par value authorized	Issuance date	Shares outstanding
Common stock at 1/1/2009	200,000,000		25,172,640
New shares issued to employees and vendors during 2009		Various dates	56,393
New shares issued to PIPE investors		10/28/2009	5,011,169
New shares issued to service provider during 2010		2/10/2010	2,000
New shares issued to PIPE investors		9/10/2010	3,440,800
New shares issued to employee		9/23/2010	5,000
New shares issued as acquisition consideration		9/24/2010	731,707
New shares issued to service provider during 2011		5/5/2011	25,000
New shares issued to employees per stock incentive plan		7/20/2011	27,092
New shares issued to employees per stock incentive plan		11/21/2011	36,073
New shares issued to employees per stock incentive plan		10/5/2012	108,840
Common stock at 3/31/2013			34,616,714

Warrants and options	Number of warrants or options	Issuance date	Expiration date
Warrants issued to investors in 2007 PIPE	1,037,858	5/3/2007	5/2/2010
Warrants issued to placement agent in 2007 PIPE	489,330	5/3/2007	5/2/2010
Employee stock options	1,334,573	7/28/2009	7/27/2014
Warrants issued to investors in 2009 PIPE - Series A	1,753,909	10/28/2009	4/28/2015
Warrants issued to investors in 2009 PIPE - Series B	501,115	10/28/2009	10/28/2012
Issued to service provider A during 2010	50,722	1/5/2010	1/2/2014
Issued to service provider B during 2010	20,289	1/5/2010	1/2/2014
Issued to service provider C during 2010	10,144	1/5/2010	1/2/2014
Total warrants and options	5,197,940

XML

Schedule of Future Minimum Rental Payments for Operating Leases (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 1	$ 65,652
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 2	92,685
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 3	92,685
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 4	92,685
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 5	92,685
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 6	56,641
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 7	493,033
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 1		87,536
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 2		92,685
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 3		92,685
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 4		92,685
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 5		92,685
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 6		56,641
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 7		514,917
Lease Commitments Schedule Of Future Minimum Rental Payments For Operating Leases 8		$ 514,917

XML

SHORT-TERM BANK LOANS

3 Months Ended

Mar. 31, 2013

SHORT-TERM BANK LOANS [Text Block]

9.	SHORT-TERM BANK LOANS
	Short-term bank loans consisted of the following as of March 31, 2013 and December 31, 2012:

	Remark		3/31/2013		12/31/2012
Loan from Junan County Industrial and Commercial Bank of China,
• Interest rate at 6.44% per annum; due 1/8/2013			-		1,031,566
• Interest rate at 5.88% per annum; due 4/10/2013			1,148,948		1,142,658
• Interest rate at 5.88% per annum; due 4/19/2013			1,005,330		999,825
• Interest rate at 5.88% per annum; due 4/24/2013	A		638,305		634,810
• Interest rate at 5.88% per annum; due 5/17/2013			1,356,397		1,348,971
• Interest rate at 5.88% per annum; due 7/18/2013			1,117,033		-
Loan from Linyi Commercial Bank,
• Interest rate at 12.136% per annum due 1/10/2013			-		714,161
• Interest rate at 1.512% per annum due 1/9/2014			1,595,762		-
• Interest rate at 1.26% per annum due 1/10/2014			1,436,185		-
Loan from China Minsheng Bank Corporation, Linyi Branch
• Interest rate at 7.8% per annum due 8/29/2013			2,393,642		2,380,537
Loan from China Agricultural Bank, Luotian Branch
• Interest rate at 6.372% per annum due 9/12/2012					-
• Interest rate at 8.4% per annum due 3/3/2013					158,702
• Interest rate at 8.4% per annum due 6/3/2013			319,152		317,405
• Interest rate at 8.4% per annum due 9/3/2013			1,117,033		1,110,917
Bank of Beijing,
• Variable Interest rate, due 6/29/2013			1,276,609		1,269,620
Shenzhen Development Bank,
• Interest rate at 6.16% per annum due 1/30/2013			-		1,110,917
• Interest rate at 6.04% per annum due 9/6/2013			-		793,512
• Interest rate at 6.71% per annum due 10/23/2013			-		634,810
• Interest rate at 7.20% per annum due 5/24/2013			638,305		-
Luotian Sanliqiao Credit Union,
• Interest rate at 9.360% per annum due 1/6/2014			957,457		952,215
Beijing International Trust Co., Ltd.,
• Variable interest rate, due 9/16/2013			1,595,762		1,587,024
Weihai City Commercial Bank,
• Interest rate at 6.90% per annum due 3/7/2013			3,191,523		3,174,049
Bank of Ningbo ,
• Interest rate at 6.71% per annum due 9/27/2013			1,595,762		1,587,024
Hankou Bank, Guanshan Branch,
• Interest rate at 6.00% per annum due 9/6/2013			797,881		793,512
• Interest rate at 6.60% per annum due 9/14/2013			1,595,762		1,587,024
China Agricultural Bank, Shandong Branch
• Interest rate at 10.2% per annum due 7/16/2013	C		3191523		3,174,049
• Interest rate at 7.2% per annum due 8/29/2013	B		1595762		1,587,024
Ping An Bank, Jinan Branch
• Interest rate at 6.048% per annum due 2/27/2014			797,881		-
• Interest rate at 6.16% per annum due 7/25/2013			1,117,033		-
Agricultural Development Bank of China
• Interest rate at 6.00% per annum due 1/3/2014			797,881		-
Luzhen Credit Union,
• Interest rate at 10.40% per annum due 2/27/2014			478,729		-
Postal Savings Bank of China
• Interest rate at 6.60% per annum due 11/26/2013			638,305		634,810
		$	32,393,962	$	28,725,143

The short-term loans, which are denominated in the functional currency Renminbi (RMB), were primarily obtained for general working capital. If not otherwise indicated in the below remarks, short-term loans are guaranteed by either companies within the group or personnel who hold a management role within the group.

Remark:
A: Accounts receivable in the amount of was used as collateral for this loan.
B: Junan Hongrun Foodstuff Co., Ltd.’s factory was used as collateral for this loan
C: Personal guarantee from Mr. Si Chen was used as collateral for this loan

XML

Schedule of average exchange rates (Details)	3 Months Ended
	Mar. 31, 2013 Y
Summary Of Significant Accounting Policies Schedule Of Average Exchange Rates 1	6.2666
Summary Of Significant Accounting Policies Schedule Of Average Exchange Rates 2	6.3011
Summary Of Significant Accounting Policies Schedule Of Average Exchange Rates 3	6.3122
Summary Of Significant Accounting Policies Schedule Of Average Exchange Rates 4	6.2769
Summary Of Significant Accounting Policies Schedule Of Average Exchange Rates 5	6.3034
Summary Of Significant Accounting Policies Schedule Of Average Exchange Rates 6	6.2976

XML

PROPERTY, PLANT AND EQUIPMENT

3 Months Ended

Mar. 31, 2013

PROPERTY, PLANT AND EQUIPMENT [Text Block]

7.	PROPERTY, PLANT AND EQUIPMENT
	Property, plant, and equipment consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013			12/31/2012
At Cost:
Buildings	$	79,195,338		$	78,730,172
Landscaping, plant and tree		7,987,338			7,943,605
Machinery and equipment		11,465,642			11,374,635
Office equipment		368,749			363,306
Motor vehicles		844,497			839,874
	$	99,861,564		$	99,251,592
Less : Accumulated depreciation
Buildings		(6,389,730	)		(5,911,971	)
Landscaping, plant and tree		(2,319,954	)		(2,108,661	)
Machinery and equipment		(6,097,105	)		(5,842,946	)
Office equipment		(234,600	)		(221,800	)
Motor vehicles		(543,027	)		(526,487	)
		(15,584,416	)		(14,611,866	)
	$	84,277,148		$	84,639,726

Landscaping, plants, and trees accounts for the orchards that the Company has developed for agricultural operations. These orchards as well as the young trees which were purchased as nursery stock are capitalized into fixed assets. The depreciation is then calculated on a 30 -year straight-line method when production in commercial quantities begins. The orchards have begun production in small quantities and the Company has accounted for depreciation commencing July 1, 2010.

XML

LAND USE RIGHTS, NET

3 Months Ended

Mar. 31, 2013

LAND USE RIGHTS, NET [Text Block]

8.	LAND USE RIGHTS, NET
	Land use rights consisted of the following as of December 31, 2012 and December 31, 2012 :

		3/31/2013			12/31/2012
Land use rights, at cost	$	6,226,471		$	6,192,379
Utilities rights, at cost		49,640			49,368
Software, at cost		58,013			57,695
Patent, at cost		1,505			1,497
		6,335,629			6,300,939
Less : Accumulated amortization		(1,046,791	)		(1,004,271	)
	$	5,288,838		$	5,296,668

All lands are owned by the government in China. Land use rights represent the Company’s purchase of usage rights for a parcel of land for a specified duration of time, typically 50 years. The land use rights are then amortized over the period of usage. Amortization expense for the periods ended March 31, 2013 and 2012 were $42,519 and $55,010, respectively.

XML

TAXES PAYABLES

3 Months Ended

Mar. 31, 2013

TAXES PAYABLES [Text Block]

10.	TAXES PAYABLES
	Taxes payable consisted of the following as of March 31, 2013 and December 31, 2012:

		3/31/2013		12/31/2012
Value added tax payable	$	21,784	$	428,889
Corporate income tax payable		1,270,783		3,370,655
Employee payroll tax withholding		4,475		4,936
Property tax payable		57,742		55,877
Stamp tax payable		1,448		1,440
Business tax payable		154,960		154,112
Land use tax payable		69,788		65,525
Import tariffs		145		454
Capital gain tax payable		928,542		923,458
	$	2,509,667	$	5,005,346

XML

Schedule of Related party receivable (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Other Receivables Schedule Of Related Party Receivable 1	$ 67,523
Other Receivables Schedule Of Related Party Receivable 2	67,523
Other Receivables Schedule Of Related Party Receivable 3	63,888
Other Receivables Schedule Of Related Party Receivable 4	31,740
Other Receivables Schedule Of Related Party Receivable 5	131,411
Other Receivables Schedule Of Related Party Receivable 6	$ 99,263

XML

Schedule of Property, Plant and Equipment (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 1	$ 79,195,338
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 2	78,730,172
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 3	7,987,338
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 4	7,943,605
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 5	11,465,642
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 6	11,374,635
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 7	368,749
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 8	363,306
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 9	844,497
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 10	839,874
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 11	99,861,564
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 12	99,251,592
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 13	(6,389,730)
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 14	(5,911,971)
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 15	(2,319,954)
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 16	(2,108,661)
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 17	(6,097,105)
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 18	(5,842,946)
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 19	(234,600)
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 20	(221,800)
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 21	(543,027)
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 22	(526,487)
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 23	(15,584,416)
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 24	(14,611,866)
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 25	84,277,148
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 26	$ 84,639,726

XML

Schedule of Other receivables (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Other Receivables Schedule Of Other Receivables 1	$ 549,623
Other Receivables Schedule Of Other Receivables 2	79,367
Other Receivables Schedule Of Other Receivables 3	320,673
Other Receivables Schedule Of Other Receivables 4	326,270
Other Receivables Schedule Of Other Receivables 5	192,182
Other Receivables Schedule Of Other Receivables 6	76,168
Other Receivables Schedule Of Other Receivables 7	131,411
Other Receivables Schedule Of Other Receivables 8	99,263
Other Receivables Schedule Of Other Receivables 9	4,303,776
Other Receivables Schedule Of Other Receivables 10	4,280,212
Other Receivables Schedule Of Other Receivables 11	5,497,665
Other Receivables Schedule Of Other Receivables 12	$ 4,861,280

XML

SHORT-TERM BANK LOANS (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Short-term bank loans [Table Text Block]

	Remark		3/31/2013		12/31/2012
Loan from Junan County Industrial and Commercial Bank of China,
• Interest rate at 6.44% per annum; due 1/8/2013			-		1,031,566
• Interest rate at 5.88% per annum; due 4/10/2013			1,148,948		1,142,658
• Interest rate at 5.88% per annum; due 4/19/2013			1,005,330		999,825
• Interest rate at 5.88% per annum; due 4/24/2013	A		638,305		634,810
• Interest rate at 5.88% per annum; due 5/17/2013			1,356,397		1,348,971
• Interest rate at 5.88% per annum; due 7/18/2013			1,117,033		-
Loan from Linyi Commercial Bank,
• Interest rate at 12.136% per annum due 1/10/2013			-		714,161
• Interest rate at 1.512% per annum due 1/9/2014			1,595,762		-
• Interest rate at 1.26% per annum due 1/10/2014			1,436,185		-
Loan from China Minsheng Bank Corporation, Linyi Branch
• Interest rate at 7.8% per annum due 8/29/2013			2,393,642		2,380,537
Loan from China Agricultural Bank, Luotian Branch
• Interest rate at 6.372% per annum due 9/12/2012					-
• Interest rate at 8.4% per annum due 3/3/2013					158,702
• Interest rate at 8.4% per annum due 6/3/2013			319,152		317,405
• Interest rate at 8.4% per annum due 9/3/2013			1,117,033		1,110,917
Bank of Beijing,
• Variable Interest rate, due 6/29/2013			1,276,609		1,269,620
Shenzhen Development Bank,
• Interest rate at 6.16% per annum due 1/30/2013			-		1,110,917
• Interest rate at 6.04% per annum due 9/6/2013			-		793,512
• Interest rate at 6.71% per annum due 10/23/2013			-		634,810
• Interest rate at 7.20% per annum due 5/24/2013			638,305		-
Luotian Sanliqiao Credit Union,
• Interest rate at 9.360% per annum due 1/6/2014			957,457		952,215
Beijing International Trust Co., Ltd.,
• Variable interest rate, due 9/16/2013			1,595,762		1,587,024
Weihai City Commercial Bank,
• Interest rate at 6.90% per annum due 3/7/2013			3,191,523		3,174,049
Bank of Ningbo ,
• Interest rate at 6.71% per annum due 9/27/2013			1,595,762		1,587,024
Hankou Bank, Guanshan Branch,
• Interest rate at 6.00% per annum due 9/6/2013			797,881		793,512
• Interest rate at 6.60% per annum due 9/14/2013			1,595,762		1,587,024
China Agricultural Bank, Shandong Branch
• Interest rate at 10.2% per annum due 7/16/2013	C		3191523		3,174,049
• Interest rate at 7.2% per annum due 8/29/2013	B		1595762		1,587,024
Ping An Bank, Jinan Branch
• Interest rate at 6.048% per annum due 2/27/2014			797,881		-
• Interest rate at 6.16% per annum due 7/25/2013			1,117,033		-
Agricultural Development Bank of China
• Interest rate at 6.00% per annum due 1/3/2014			797,881		-
Luzhen Credit Union,
• Interest rate at 10.40% per annum due 2/27/2014			478,729		-
Postal Savings Bank of China
• Interest rate at 6.60% per annum due 11/26/2013			638,305		634,810
		$	32,393,962	$	28,725,143

XML

LONG-TERM DEBT (Narrative) (Details)	3 Months Ended
	Mar. 31, 2013 USD ($)	Mar. 31, 2013 CNY
Long-term Debt 1	$ 1,875,000
Long-term Debt 2	12,000,000
Long-term Debt 3	12,000,000
Long-term Debt 4	24,000,000
Long-term Debt 5		20,540,158

XML

SALES BY PRODUCT TYPE

3 Months Ended

Mar. 31, 2013

SALES BY PRODUCT TYPE [Text Block]

15.	SALES BY PRODUCT TYPE
	Sales by categories of product consisted of the following as of March 31, 2013 and 2012:

Category		3/31/2013		3/31/2012
Chestnut	$	16,654,887	$	16,005,159
Convenience food		10,620,643		12,842,809
Frozen food		7,534,386		8,293,063
Total	$	34,809,916	$	37,141,031

Revenue by geography consisted of the following as of March 31, 2013 and 2012:

Country		3/31/2013		3/31/2012
Australia	$	-	$	12,744
Belgium		-		1,323,480
China		26,011,792		29,322,470
Denmark		1,467,653		-
France		463,415		147,902
Germany		431,619		-
Hong Kong		46,377		6,402
Japan		2,536,962		3,284,003
Malaysia		382,432		390,663
Netherlands		264,859		-
Philippines		78,222		77,965
Poland		-		154,454
Russia		117,160		-
Saudi Arabia		-		306,614
Singapore		113,416		122,162
South Korea		2,515,014		1,254,386
Spain		-		88,378
Taiwan		-		127,811
Thailand		45,404		-
United Kingdom		292,475		487,504
United States		43,116		34,094
Total	$	34,809,916	$	37,141,031

XML

RISKS

3 Months Ended

Mar. 31, 2013

RISKS [Text Block]

20.	RISKS
	A.	Credit risk
		Since the Company’s inception, the age of account receivables have been less than one year indicating that the Company is subject to minimal risk borne from credit extended to customers.
	B.	Interest risk
		The company subject to the interest rate risk when their short term loans become due and require refinancing.
	C.	Economic and political risks
		The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC.
		The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.
	D.	Environmental risks
		The Company has procured environmental licenses required by the PRC government. The Company has both a water treatment facility for water used in its production process and secure transportation to remove waste off site. In the event of an accident, the Company has purchased insurance to cover potential damage to employees, equipment, and local environment.
	E.	Inflation Risk
		Management monitors changes in prices levels. Historically inflation has not materially impacted the company’s financial statements; however, significant increases in the price of raw materials and labor that cannot be passed on the Company’s customers could adversely impact the Company’s results of operations.

XML

PROPERTY, PLANT AND EQUIPMENT (Narrative) (Details)	3 Months Ended
	Mar. 31, 2013
Property, Plant And Equipment 1	30

XML

EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Earnings per share [Table Text Block]

		For the period		For the period
		Ended		Ended
		March 31,		March 31,
		2013		2012
Basic Earnings Per Share Numerator
Net Income	$	2,518,686	$	3,582,365
Income Available to Common Stockholders	$	2,518,686	$	3,582,365
Diluted Earnings Per Share Numerator
Income Available to Common Stockholders	$	2,518,686	$	3,582,365
Income Available to Common Stockholders on Converted Basis	$	2,518,686	$	3,582,365
Original Shares:
Additions from Actual Events
-Issuance of Common Stock		34,616,714		34,507,874
Basic Weighted Average Shares Outstanding		34,616,714		34,507,874
Dilutive Shares:
Additions from Potential Events
Exercise of Investor Warrants & Placement Agent Warrants		-		-
Exercise of Employee & Director Stock Options		-		-
Diluted Weighted Average Shares Outstanding:		34,616,714		34,507,874
Earnings Per Share
-Basic	$	0.07	$	0.10
-Diluted	$	0.07	$	0.10
Weighted Average Shares Outstanding
-Basic		34,616,714		34,507,874
-Diluted		34,616,714		34,507,874

XML

CONSOLIDATED STATEMENTS OF CASH FLOW (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities
Net income	$ 2,613,652	$ 3,758,928
Stock and share based compensation	0	51,607
Depreciation of fixed assets	972,550	873,032
Amortization of intangible assets	42,519	55,010
Adjustment to statutory reserve	0	678,175
(Increase)/decrease in accounts & other receivables	9,525,967	7,869,515
(Increase)/decrease in inventories	(9,672,367)	(1,551,498)
(Increase)/decrease in prepayment	(1,259,125)	(131,910)
(Increase)/decrease in deferred tax asset	(965)	(1,044)
Increase/(decrease) in accounts and other payables	(3,586,059)	(2,308,977)
Net cash (used in)/provided by operating activities	(1,363,828)	9,292,838
Cash flows from investing activities
Sale/(Proceeds) from short-term investment	270,019	0
Purchase of plant and equipment	(615,497)	(606,381)
Payment for the purchase of land use rights	(34,689)	(47,329)
(Increase)/Decrease in restricted cash	1,701,157	(2,053,184)
(Increase)/Decrease in deposit	(3,194,815)	(104)
Net cash used in investing activities	(1,873,825)	(2,706,998)
Cash flows from financing activities
Repayment of bank borrowings	(3,510,676)	(8,554,862)
Proceeds from bank borrowings	7,351,838	4,193,799
Proceeds from long-term borrowings and notes payable	(1,863,002)	0
Net cash provided by/(used in) financing activities	1,978,160	(4,361,063)
Net Increase/(decrease) of Cash and Cash Equivalents	(1,259,493)	2,224,777
Effect of foreign currency translation on cash and cash equivalents	783,291	(80,463)
Cash and cash equivalents-beginning of period	32,345,603	17,353,494
Cash and cash equivalents-end of period	31,869,400	19,497,808
Supplementary cash flow information:
Interest received	6,909	58,132
Interest paid	1,039,123	1,159,514
Income taxes paid	$ 3,125,023	$ 2,604,089

XML

TRADE ACCOUNTS RECEIVABLE

3 Months Ended

Mar. 31, 2013

TRADE ACCOUNTS RECEIVABLE [Text Block]

4. TRADE ACCOUNTS RECEIVABLE

		3/31/2013			12/31/2012
Trade accounts receivable	$	38,136,666		$	49,177,915
Less : Allowance for doubtful accounts		(446,342	)		(443,898	)
	$	37,690,324		$	48,734,017
Allowance for bad debt:		3/31/2013			12/31/2012
Beginning balance	$	(443,898	)	$	(379,693	)
Additions to allowance		(2,444	)		(64,205	)
Bad debt written-off		-			-
Ending balance	$	(446,342	)	$	(443,898	)

The Company offers credit terms of between 30 to 60 days to most of their domestic customers, including supermarkets and wholesalers, around 90 days to most of their international customers, and between 0 to 15 days for most of the third-party distributors the Company works with.

XML

Schedule of estimated useful lives (Details)	3 Months Ended
	Mar. 31, 2013 Y
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives 1	40
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives 2	30
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives 3	10
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives 4	10
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives 5	5

XML

Schedule of Share-based Compensation, Stock Options, Activity (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Share Based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 1	$ 0
Share Based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 2	4.99
Share Based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 3	1,334,573
Share Based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 4	5.00
Share Based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 5	9.99
Share Based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 6	0
Share Based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 7	10.00
Share Based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 8	$ 14.99
Share Based Compensation Schedule Of Share-based Compensation, Stock Options, Activity 9	0

XML

Schedule of Taxes Payable (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Taxes Payables Schedule Of Taxes Payable 1	$ 21,784
Taxes Payables Schedule Of Taxes Payable 2	428,889
Taxes Payables Schedule Of Taxes Payable 3	1,270,783
Taxes Payables Schedule Of Taxes Payable 4	3,370,655
Taxes Payables Schedule Of Taxes Payable 5	4,475
Taxes Payables Schedule Of Taxes Payable 6	4,936
Taxes Payables Schedule Of Taxes Payable 7	57,742
Taxes Payables Schedule Of Taxes Payable 8	55,877
Taxes Payables Schedule Of Taxes Payable 9	1,448
Taxes Payables Schedule Of Taxes Payable 10	1,440
Taxes Payables Schedule Of Taxes Payable 11	154,960
Taxes Payables Schedule Of Taxes Payable 12	154,112
Taxes Payables Schedule Of Taxes Payable 13	69,788
Taxes Payables Schedule Of Taxes Payable 14	65,525
Taxes Payables Schedule Of Taxes Payable 15	145
Taxes Payables Schedule Of Taxes Payable 16	454
Taxes Payables Schedule Of Taxes Payable 17	928,542
Taxes Payables Schedule Of Taxes Payable 18	923,458
Taxes Payables Schedule Of Taxes Payable 19	2,509,667
Taxes Payables Schedule Of Taxes Payable 20	$ 5,005,346

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2013

Method of Accounting [Policy Text Block]

(a)	Method of Accounting
	The Company maintains its general ledger and journals with the accrual method accounting for financial reporting purposes. The financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of financial statements, which are compiled on the accrual basis of accounting.
	The Company regrouped certain accounts in its presentation of changes in assets and liabilities in the statement of cash flows for the period ended March 31, 2013 in order to be consistent with the presentation provided for the year ended December 31, 2012. There was no impact in earnings for the regrouping.

Principles of consolidation [Policy Text Block]

(b)	Principles of consolidation
	The consolidated financial statements which include the Company and its subsidiaries are compiled in accordance with generally accepted accounting principles in the United States of America. All significant inter-company accounts and transactions have been eliminated. The consolidated financial statements include 100% of assets, liabilities, and net income or loss of those wholly-owned subsidiaries; ownership interests of minority investors are recorded as minority interests.
	As of March 31, 2013, the detailed identities of the consolidating subsidiaries are as follows:

	Place of	Attributable equity	Registered
Name of Company	incorporation	interest %	capital
Shandong Lorain Co., Ltd	PRC	80.2	$12,837,397
Luotian Lorain Co., Ltd	PRC	100	4,019,743
Junan Hongrun Foodstuff Co., Ltd	PRC	100	47,483,773
Beijing Lorain Co., Ltd	PRC	100	1,587,024
Shandong Greenpia Foodstuff Co.,Ltd	PRC	100	2,437,670
Dongguan Lorain Co,,Ltd	PRC	100	158,702
International Lorain Holding Inc.	Cayman Islands	100	49,386,219

Use of estimates [Policy Text Block]

(c)

Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates.

Cash and cash equivalents [Policy Text Block]

(d)	Cash and cash equivalents
	The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.

Investment securities [Policy Text Block]

(e)	Investment securities
	The Company classifies securities it holds for investment purposes into trading or available-for-sale. Trading securities are bought and held principally for the purpose of selling them in the near term. All securities not included in trading securities are classified as available-for-sale.
	Trading and available-for-sale securities are recorded at fair value. Unrealized holding gains and losses on trading securities are included in the net income. Unrealized holding gains and losses, net of the related tax effect, on available for sale securities are excluded from net income and are reported as a separate component of other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis.
	A decline in the market value of any available-for-sale security below cost that is deemed to be other-than- temporary results in a reduction in carrying amount to fair value. The impairment is charged as an expense to the statement of income and comprehensive income and a new cost basis for the security is established. To determine whether impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year end, and forecasted performance of the investee.
	Premiums and discounts are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield using the effective-interest method. Dividend and interest income are recognized when earned.

Trade receivables [Policy Text Block]

(f)	Trade receivables
	Trade receivables are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred.

Inventories [Policy Text Block]

(g)	Inventories
	Inventories consisting of finished goods and raw materials are stated at the lower of cost or market value. Finished goods are comprised of direct materials, direct labor and an appropriate proportion of overhead.

Customer deposits and advances to suppliers [Policy Text Block]

(h)	Customer deposits and advances to suppliers
	Customer deposits were received from customers in connection with orders of products to be delivered in future periods.
	Advance to suppliers is a good faith deposit paid to the supplier for the purpose of committing the supplier to provide product promptly upon delivery of the Company’s purchase order for raw materials, supplies, equipment, building materials etc. Pursuant to the Company’s arrangements with its suppliers, this deposit is generally 20% of the total amount contracted for. This type of transaction is classified as a prepayment category under the account name “Advance to Suppliers” until such time as the Company’s purchase order is delivered, at which point this account is reduced by reclassification of the applicable amount to the appropriate asset account such as inventory or fixed assets or construction in progress.

Property, plant and equipment [Policy Text Block]

(i)	Property, plant and equipment
	Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method with a salvage value of 10%. Estimated useful lives of the plant and equipment are as follows:

Buildings	40 years
Landscaping, plant and tree	30 years
Machinery and equipment	10 years
Motor vehicles	10 years
Office equipment	5 years

The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. The cost of maintenance and repairs is charged to income as incurred, whereas significant renewals and betterments are capitalized.

Construction in progress [Policy Text Block]

(j)	Construction in progress
	Construction in progress represents direct and indirect construction or acquisition costs. The construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until the asset is completed and ready for intended use.

Land Use Rights [Policy Text Block]

(k)	Land Use Rights
	Land use rights are carried at cost and amortized on a straight-line basis over a specified period. Amortization is provided using the straight-line method over 40 - 50 years.

Accounting for the Impairment of Long-Lived Assets [Policy Text Block]

(l)	Accounting for the Impairment of Long-Lived Assets
	The long-lived assets held by the Company are reviewed in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 360-10-35, “Accounting for the Impairment or Disposal of Long-Lived Assets,” for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Impairment is present if carrying amount of an asset is less than its undiscounted cash flows to be generated.
	If an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company believes no impairment has occurred to its assets during 2013 and 2012.

Advertising [Policy Text Block]

(m)	Advertising
	All advertising costs are expensed as incurred.

Shipping and handling [Policy Text Block]

(n)	Shipping and handling
	All shipping and handling are expensed as incurred.

Research and development [Policy Text Block]

(o)	Research and development
	All research and development costs are expensed as incurred.

Retirement benefits [Policy Text Block]

(p)	Retirement benefits
	Retirement benefits in the form of contributions under defined contribution retirement plans to the relevant authorities are charged to the consolidated statement of income as incurred.

Income taxes [Policy Text Block]

(q)	Income taxes
	The Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future realization is uncertain.
	The Company has implemented ASC Topic 740, “Accounting for Income Taxes.” Income tax liabilities computed according to the United States and People’s Republic of China (PRC) tax laws are provided for the tax effects of transactions reported in the financial statements and consists of taxes currently due plus deferred taxes related primarily to differences between the basis of fixed assets and intangible assets for financial and tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will be either taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes also are recognized for operating losses that are available to offset future income taxes. A valuation allowance is created to evaluate deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize that tax benefit, or that future realization is uncertain.
	Effective January 1, 2008, PRC government implemented a new 25% tax rate across the board for all enterprises regardless of whether domestic or foreign enterprise without any tax holiday which is defined as "two-year exemption followed by three-year half exemption" hitherto enjoyed by tax payers. As a result of the new tax law of a standard 25% tax rate, tax holidays terminated as of December 31, 2007. However, PRC government has established a set of transition rules to allow enterprises already started tax holidays before January 1, 2008, to continue enjoying the tax holidays until being fully utilized.
	The Company is subject to United States Tax according to Internal Revenue Code Sections 951 and 957. Corporate income tax is imposed on progressive rates in the range of: -

Taxable Income
Rate	Over	But Not Over	Of Amount Over
15%	0	50,000	0
25%	50,000	75,000	50,000
34%	75,000	100,000	75,000
39%	100,000	335,000	100,000
34%	335,000	10,000,000	335,000
35%	10,000,000	15,000,000	10,000,000
38%	15,000,000	18,333,333	15,000,000
35%	18,333,333	-	-

Statutory reserves [Policy Text Block]

(r)

Statutory reserves

Statutory reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover losses and increase capital, as approved, and are to be used to expand production or operations. The Company transferred $0 and $2,264,420 from retained earnings to statutory reserves for the period ended March 31, 2013 and year ended December 31, 2012. PRC laws prescribe that an enterprise operating at a profit, must appropriate, on an annual basis, an amount equal to 10% of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered capital.

Foreign currency translation [Policy Text Block]

(s)

Foreign currency translation

The accompanying financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB). The financial statements are translated into United States dollars from RMB at year-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

	3/31/2013	12/31/2012	3/31/2012
Year end RMB : US$ exchange rate	6.2666	6.3011	6.3122
Average yearly RMB : US$ exchange rate	6.2769	6.3034	6.2976

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollars at the rates used in translation.

Revenue recognition [Policy Text Block]

(t)	Revenue recognition
	The Company's revenue recognition policies are in compliance with Staff accounting bulletin (SAB) 104. Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, no other significant obligations of the Company exist and collectibility is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue.
	The Company's revenue consists of invoiced value of goods, net of a value-added tax (VAT). The Company allows its customers to return products if they are defective. However, this rarely happens and amounts returned have been de minimis.
	The Company gradually switched its sales model from direct sales to third party distributor model and issues 1% sales incentive to distributors. The Company modified its accounting policy for the recognition of revenue accordingly. Given the circumstances of how the Company conducts its incentive program, the Company books the payments settled in cash as a contra account to Gross Revenue, and includes the amount in its reported “net revenue”. The Company has considered the guidance in FASB ASC 605-50 (EITF 01-9) and will account for its sales incentive program accordingly.

Earnings per share [Policy Text Block]

(u)	Earnings per share
	Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income by the sum of the weighted average number of ordinary shares outstanding and potential dilutive securities during the year. During the period ended March 31, 2013, no warrants were issued nor options were granted. For the year ended December 31, 2010, 81,155 warrants were issued to certain service providers. For the year ended December 31, 2009, 1,334,573 stock options were granted to employees pursuant to the Company’s equity incentive plan; 2,255,024 warrants were issued to investors in connection with a PIPE financing. These warrants and options could be potentially dilutive if the market price of the Company’s common stock exceeds the exercise price for these securities.
	The Company computes earnings per share (“EPS”) in accordance with Statement of Financial Accounting Standards No. 128, “Earnings per share” (“SFAS No. 128”), and SEC Staff Accounting Bulletin No. 98 (“SAB 98”). SFAS No. 128 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later.

Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Financial Instruments [Policy Text Block]

(v)

Financial Instruments

The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, the carrying amounts approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

• Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

• Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.

As of March 31, 2013 and December 31, 2012, the Company did not identify any assets and liabilities that were required to be presented on the balance sheet at fair value.

The following tables present the Company’s financial assets and liabilities at fair value in accordance to ASC 820-10:

At December 31,		Quoted in		Significant
2012:		Active Markets		Other		Significant
		for Identical		Observable		Unobservable
		Assets		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	31,869,400	$	-	$	-	$	31,869,400
Restricted Cash		2,297,799		-		-		2,297,799
Total financial assets	$	34,167,199	$	-	$	-	$	34,167,199
Financial liabilities:
Notes payable	$	-	$	-	$	-	$	-
Total financial liabilities	$	-	$	-	$	-	$	-

At December 31,		Quoted in		Significant
2012:		Active Markets		Other		Significant
		for Identical		Observable		Unobservable
		Assets		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash	$	32,345,603	$	-	$	-	$	32,345,603
Restricted Cash		3,998,956		-		-		3,998,956
Total financial assets	$	36,344,559	$	-	$	-	$	36,344,559
Financial liabilities:
Notes payable	$	-	$	-	$	-	$	-
Total financial liabilities	$	-	$	-	$	-	$	-

Commitments and contingencies [Policy Text Block]

(w)	Commitments and contingencies
	Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

Comprehensive income [Policy Text Block]

(x)	Comprehensive income
	Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements. The Company’s current component of other comprehensive income includes the foreign currency translation adjustment and unrealized gain or loss.
	The Company uses FASB ASC Topic 220, “Reporting Comprehensive Income”. Comprehensive income is comprised of net income and all changes to the statements of stockholders’ equity, except the changes in paid- in capital and distributions to stockholders due to investments by stockholders. Comprehensive income for the periods ended March 31, 2013 and 2012 included net income and foreign currency translation adjustments.

Recent accounting pronouncements [Policy Text Block]

(y)	Recent accounting pronouncements
	On July 27, 2012, the FASB issued ASU 2012-02, Intangibles-Goodwill and Other (Topic 350) – Testing Indefinite-Lived Intangible Assets for Impairment. The ASU provides entities with an option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the indefinite-lived intangible asset is impaired. If an entity concludes that it is more than 50% likely that an indefinite-lived intangible asset is not impaired, no further analysis is required. However, if an entity concludes otherwise, it would be required to determine the fair value of the indefinite-lived intangible asset to measure the amount of actual impairment, if any, as currently required under US GAAP. The ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of this pronouncement will not have a material impact on its financial statements.
	In October, 2012, the FASB issued ASU No. 2012-04, “Technical Corrections and Improvements” (“ASU 2012-04”). The amendments cover a wide range of topics in the FASB ASC. The amendments are incorporated into two sections: a. Technical corrections and improvements, and b. Conforming amendments related to fair value measurements.

a. The amendments in the technical corrections and improvements section are categorized as follows:

• Source literature amendments. These amendments are considered necessary due to differences between source literature and the FASB ASC. The amendments primarily carry forward legacy document guidance and/or subsequent amendments into the FASB ASC. Often, either writing style or phrasing in the legacy documents did not directly relate to the FASB ASC format and style so that the meaning of certain guidance might have been unintentionally altered.

• Guidance clarification and reference corrections. These amendments include updated wording or corrected references, or a combination of both.

• Relocated guidance. These amendments primarily move authoritative literature guidance from

XML

Schedule of Capitalization Reconciliation Table (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Capitalization Schedule Of Capitalization Reconciliation Table 1	$ 200,000,000
Capitalization Schedule Of Capitalization Reconciliation Table 2	25,172,640
Capitalization Schedule Of Capitalization Reconciliation Table 3	56,393
Capitalization Schedule Of Capitalization Reconciliation Table 4	5,011,169
Capitalization Schedule Of Capitalization Reconciliation Table 5	2,000
Capitalization Schedule Of Capitalization Reconciliation Table 6	3,440,800
Capitalization Schedule Of Capitalization Reconciliation Table 7	5,000
Capitalization Schedule Of Capitalization Reconciliation Table 8	731,707
Capitalization Schedule Of Capitalization Reconciliation Table 9	25,000
Capitalization Schedule Of Capitalization Reconciliation Table 10	27,092
Capitalization Schedule Of Capitalization Reconciliation Table 11	36,073
Capitalization Schedule Of Capitalization Reconciliation Table 12	108,840
Capitalization Schedule Of Capitalization Reconciliation Table 13	$ 34,616,714

XML

CAPITALIZATION (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Capitalization Reconciliation Table [Table Text Block]

	Par value authorized	Issuance date	Shares outstanding
Common stock at 1/1/2009	200,000,000		25,172,640
New shares issued to employees and vendors during 2009		Various dates	56,393
New shares issued to PIPE investors		10/28/2009	5,011,169
New shares issued to service provider during 2010		2/10/2010	2,000
New shares issued to PIPE investors		9/10/2010	3,440,800
New shares issued to employee		9/23/2010	5,000
New shares issued as acquisition consideration		9/24/2010	731,707
New shares issued to service provider during 2011		5/5/2011	25,000
New shares issued to employees per stock incentive plan		7/20/2011	27,092
New shares issued to employees per stock incentive plan		11/21/2011	36,073
New shares issued to employees per stock incentive plan		10/5/2012	108,840
Common stock at 3/31/2013			34,616,714

XML

NON-CONTROLLING INTERESTS

3 Months Ended

Mar. 31, 2013

NON-CONTROLLING INTERESTS [Text Block]

14.	NON-CONTROLLING INTERESTS
	The non-controlling interest represents the 19.8% equity of Shandong Lorain held by the Shandong Economic Development Investment Corporation, which is a state-owned interest.