10-Q/A

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

Amendment No. 1

x QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

o TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to ____________

Commission file number 000-54744

WONHE HIGH-TECH INTERNATIONAL, INC.

(Exact name of small business issuer as specified in its charter)

Nevada	26-0775642
(State of other jurisdiction of incorporation or organization)	(IRS Employer identification No.)

Rm1001, 10th Floor, Resource Hi-Tech Building South Tower
No.1 Songpingshan Road, North Central Avenue North High-Tech Zone
(Address of principal executive offices)	(Zip Code)

+ (86) 0755-82871161

(Registrant’s telephone number, including area code)

Indicated by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 o

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 o

Indicate by check mark whether the registrant is a large accelerate filer, an accelerate filer, a non-accelerated filer, or a smaller reporting company. See the definition of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o Non-accelerated filer o 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 o No x

As of June 30, 2012, the registrant had 23,900,130 shares of common stock outstanding.

EXPLANATORY NOTE

The sole purpose of this Amendment No. 1 to Wonhe High-Tech International, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012 (the “Form 10-Q”), filed with the Securities and Exchange Commission on August 17, 2012, is to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 consists of the following materials from the Company’s Form 10-Q, formatted in XBRL (eXtensible Business Reporting Language):

101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Schema
101.CAL	XBRL Taxonomy Calculation Linkbase
101.DEF	XBRL Taxonomy Definition Linkbase
101.LAB	XBRL Taxonomy Label Linkbase
101.PRE	XBRL Taxonomy Presentation Linkbase

No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date and does not modify or update in any way disclosures made in the original Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

ITEM 6.  EXHIBITS

EXHIBIT INDEX
Exhibit No.	Description
31.1(*)	Certification of Principal Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2(*)	Certification of Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted 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.
101.INS(**)	XBRL Instance Document
101.SCH(**)	XBRL Taxonomy Schema
101.CAL(**)	XBRL Taxonomy Calculation Linkbase
101.DEF(**)	XBRL Taxonomy Definition Linkbase
101.LAB(**)	XBRL Taxonomy Label Linkbase
101.PRE(**)	XBRL Taxonomy Presentation Linkbase

*These exhibits were previously filed as exhibits to Wonhe High-Tech International, Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, filed with the Securities and Exchange Commission on August 17, 2012.

** Furnished herewith.  Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Act of 1934 and otherwise are not subject to liability.

  SIGNATURES

In accordance with 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.

	WONHE HIGH-TECH INTERNATIONAL, INC.
Date: August 30, 2012
	By: /s/ Nanfang Tong
	Nanfang Tong
	Chief Executive Officer and Chief Financial Officer
	(Principal Executive Officer and Principal Financial
	Officer)
Date: August 30, 2012
	By: /s/ Chahua Yuan
	Chahua Yuan
	Chief Financial Officer
	(Principal Financial Officer)

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Related Party Transactions (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2012 Guowang Capital [Member]	Dec. 31, 2011 Guowang Capital [Member]	Apr. 25, 2011 Guowang Capital [Member]	Dec. 16, 2010 Guowang Capital [Member]	Jun. 30, 2012 Puruisi Power [Member]	Mar. 14, 2012 Puruisi Power [Member]	Dec. 31, 2011 Puruisi Power [Member]	Apr. 30, 2011 Puruisi Power [Member]
Loans to related parties
Loans to related parties		$ 5,179,524		$ 5,038,134	$ 314,200	$ 7,560,000		$ 79,050	$ 141,390	$ 141,390

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Summary of Significant Accounting Policies (Details 2) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Variable interest entity, consolidated, cash flows
Net cash (used in) operating activities	$ (901,804)	$ (831,668)
Net cash provided by investing activities	5,245,616	(6,309,568)
Effect of exchange rate changes on cash	12,530	(69,185)
Net change in cash	4,356,342	(7,210,421)
Variable Interest Entity [Member]
Variable interest entity, consolidated, cash flows
Net cash (used in) operating activities	(901,804)
Net cash provided by investing activities	5,204,715
Effect of exchange rate changes on cash	12,530
Net change in cash	$ 4,315,441

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Recently Issued Accounting Standards

6 Months Ended

Jun. 30, 2012

Accounting Changes and Error Corrections [Abstract]

RECENTLY ISSUED ACCOUNTING STANDARDS

3.           RECENTLY ISSUED ACCOUNTING STANDARDS

In December 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented.  The Company does not expect that the adoption of ASU 2011-11 will have a significant, if any, impact on the Company’s consolidated financial statements.

In May 2011, the FASB issued Accounting Standards Update No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (“ASU No. 2011-04”), which amends current guidance to result in common fair value measurements and disclosures between accounting principles generally accepted in the United States and International Financial Reporting Standards. The amendments explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. ASU No. 2011-04 clarifies the application of certain existing fair value measurement guidance and expands the disclosures for fair value measurements that are estimated using significant unobservable inputs (Level 3 inputs, as defined in Note 7). The amendments in ASU No. 2011-04 are effective for interim and annual periods beginning after December 15, 2011. The adoption of the provisions of ASU No. 2011-04 did not have a material impact on the Company’s consolidated financial statements. 

In June 2011, the FASB issued Accounting Standards Update No. 2011-05, “Presentation of Comprehensive Income” (“ASU No. 2011-05”), which improves the comparability, consistency, and transparency of financial reporting and increases the prominence of items reported in other comprehensive income (“OCI”) by eliminating the option to present components of OCI as part of the statement of changes in stockholders’ equity. The amendments in this standard require that all nonowner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Subsequently in December 2011, the FASB issued Accounting Standards Update No. 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income” (“ASU No. 2011-12”), which indefinitely defers the requirement in ASU No. 2011-05 to present on the face of the financial statements reclassification adjustments for items that are reclassified from OCI to net income (loss) in the statement(s) where the components of net income (loss) and the components of OCI are presented.

The amendments in these standards do not change the items that must be reported in OCI, when an item of OCI must be reclassified to net income (loss), or change the option for an entity to present components of OCI gross or net of the effect of income taxes.  The amendments in ASU No. 2011-05 and ASU No. 2011-12 are effective for interim and annual periods beginning after December 15, 2011 and are to be applied retrospectively. The adoption of the provisions of ASU No. 2011-05 and ASU No. 2011-12 did not have a material impact on the Company’s consolidated financial statements.

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Fixed Assets (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Components of fixed assets
Fixed assets	$ 473,642	$ 462,620
Less: accumulated depreciation	(82,958)	(44,089)
Fixed assets, net	390,684	418,531
Office equipment [Member]
Components of fixed assets
Fixed assets	153,576	144,779
Motor vehicles [Member]
Components of fixed assets
Fixed assets	213,613	212,128
Leasehold improvements [Member]
Components of fixed assets
Fixed assets	$ 106,453	$ 105,713

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Summary of Significant Accounting Policies (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Accounting Policies (Textual) [Abstract]
Foreign currency translation adjustment	$ 4,267	$ 115,349	$ 48,059	$ 162,862
Advertising costs	63,240	4,192	63,823	4,192
Research and development expense	$ 82,838	$ 127,025	$ 152,164	$ 193,204
Percentage of net income transfer to statutory reserve fund			10.00%
Statutory reserve fund transfere limitation			10% of net income transfere to a statutory reserve fund until such reserve balance reaches 50% of the Company's registered capital.
Percentage of minimum remaining reserve balance of Registered Capital			(Less than 25%)
Recognized tax benefits description			Greater than 50% likelihood of being realized upon ultimate settlement.

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Fixed Assets (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Fixed Assets (Textual)
Depreciation	$ 19,384	$ 9,393	$ 38,536	$ 15,363

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Lease Obligations (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Minimum future rentals under operating leases
2012	$ 99,805
2013	180,286
2014	176,880
2015	176,880
2016	176,880
Thereafter	383,258
Operating Leases, Future Minimum Payments Due	$ 1,193,989

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting and Presentation

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.  The unaudited consolidated financial statements as of and for the three and six months ended June 30, 2012, include Wonhe High-Tech, World Win, Kuayu, Shengshihe Consulting and its VIE, Shenzhen Wonhe.  The unaudited statements of income and other comprehensive income for the three and six months ended June 30, 2011 and audited balance sheet as of December 31, 2011, include Shenzhen Wonhe only, as World Win, Kuayu, Shengshihe Consulting were not in existence at that time. All significant intercompany accounts and transaction has been eliminated in consolidation when applicable.

Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation” (“ASC 810”), the Company is required to include in its consolidated financial statements the financial statements of its variable interest entities (“VIEs”).  ASC 810 requires a VIE to be consolidated by a company if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns.  VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the company is the primary beneficiary of the entity.

Through the VIE agreements as disclosed in Note 1, the Company is deemed the primary beneficiary of Shenzhen Wonhe.  Accordingly, the results of Shenzhen Wonhe have been included in the accompanying consolidated financial statements. The following financial statement amounts and balances of Shenzhen Wonhe have been included in the accompanying consolidated financial statements. Shenzhen Wonhe has no assets that are collateral for or restricted solely to settle their obligations. The creditors of Shenzhen Wonhe do not have recourse to the Company’s general credit.

ASSETS	June 30, 2012
	(Unaudited)
Current assets:
Cash		4,391,525
Accounts receivable		1,824,714
Inventory		298,666
Advances to suppliers		2,723,245
Prepaid expenses		283,732
Total current assets		9,521,882
Fixed Assets		473,642
Less: accumulated depreciation		(82,958	)
Fixed Assets, net		390,684
Other assets:
Other assets – principally security deposits		35,877
Total other assets		35,877
TOTAL ASSETS		9,948,443

LIABILITIES	June 30, 2012
	(Unaudited)
Current liabilities:
Accounts payable	$	17,187
Advances from customers		67,241
Payroll payable		62,522
Taxes Payable		501,474
Accrued expenses and other payables		31,048
Total current liabilities		679,472
TOTAL LIABILITIES	$	679,472

		For the three months ended		For the six months ended
	June 30, 2012 (Unaudited)
Sales		$	5,607,648	$	8,962,004
Net income			1,262,124		2,241,575

For the six months ended June 30, 2012 (Unaudited)
Net cash (used in) operating activities	$	(901,804	)
Net cash provided by investing activities		5,204,715
Effect of exchange rate changes on cash		12,530
Net increase in cash	$	4,315,441

Under ASC 810, an enterprise has a controlling financial interest in a VIE, and must consolidate that VIE, if the enterprise has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affected the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE.  The enterprise’s determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de facto agents, has the unilateral ability to exercise those rights.

Shenzhen Wonhe’s actual stockholders do not hold any kick-out rights that will affect the consolidation determination.

The unaudited interim consolidated financial statements of the Company as of June 30, 2012 and for the three and six months ended June 30, 2012 and 2011, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements.  Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements.  The interim consolidated financial information should be read in conjunction with the financial statements and the notes thereto, included in the Company’s Form 8-K for the fiscal year ended December 31, 2011, previously filed with the SEC.

In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented.  The results of operations for the three and six months ended June 30, 2012 are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2012.

Use of Estimates

The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.  Actual results could differ from those estimates.

Foreign Currency Translations

All Company assets are located in People’s Republic of China (“PRC”).  The functional currency for the majority of the Company’s operations is the RMB.  The Company uses the United States dollar (“US Dollar” or “US$” or “$”) for financial reporting purposes.  The consolidated financial statements of the Company have been translated into US dollars in accordance with ASC 830, “Foreign Currency Matters.”

All asset and liability accounts have been translated using the exchange rate in effect at the balance sheet date.  Equity accounts have been translated at their historical exchange rates when the capital transactions occurred.  Statements of income and other comprehensive income amounts have been translated using the average exchange rate for the periods presented.  Adjustments resulting from the translation of the Company’s consolidated financial statements are recorded as other comprehensive income.

The exchange rates used to translate amounts in RMB into US dollars for the purposes of preparing the consolidated financial statements are as follows:

The exchange rates used to translate amounts in RMB into US dollars for the purposes of preparing the consolidated financial statements are as follows:

	June 30, 2012	December 31, 2011	June 30, 2011
Balance sheet items, except for stockholders’ equity, as of year or period end	0.1582	0.1571	N/A

	Three Months Ended June 30,			Six Months Ended June 30,
	2012		2011	2012	2011
Amounts included in the statements of income and other comprehensive income, statements of changes in stockholders’ equity and statements of cash flows for period end		0.1580	0.1537	0.1581	0.1493

For three months ended June 30, 2012 and 2011, foreign currency translation adjustments of $4,267 and $115,349, respectively, and for the six months ended June 30, 2012 and 2011, foreign currency translation adjustments of $48,059 and $162,862, respectively, have been reported as other comprehensive income.

Although government regulations now allow convertibility of the RMB for current account transactions, significant restrictions still remain.  Hence, such translations should not be construed as representations that the RMB could be converted into US dollars at that rate or any other rate.

The value of RMB against the US dollar and other currencies may fluctuate and is affected by, among other things, changes in China’s political and economic conditions.  Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US dollar reporting.

Revenue and Cost Recognition

The Company’s revenues are derived from sales of electronic products. The Company’s revenue recognition policies comply with FASB ASC 605, “Revenue Recognition”.  In general, the Company recognizes revenue when there is persuasive evidence of an arrangement, the fee is fixed or determinable, the products or services have been delivered and collectability of the resulting receivable is reasonably assured. 

Fair Value of Financial Instruments

Financial instruments include cash, accounts receivable, interest receivable, loans to related parties, accounts payable and accrued expenses and other payables.  As of June 30, 2012 and December 31, 2011, the carrying values of these financial instruments approximated their fair values due to the short term nature of these financial instruments.

Vulnerability Due to Operations in PRC

The Company’s operations may be adversely affected by significant political, economic and social uncertainties in the PRC.  Although the PRC government has been pursuing economic reform policies for more than twenty years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC’s political, economic and social conditions.  There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent or effective in the future.

The Company believes that Shengshihe Consulting’s contractual agreements with Shenzhen Wonhe are in compliance with PRC law and are legally enforceable.  The stockholders of Shenzhen Wonhe are also the senior management of the Company and therefore the Company believes that they have no current interest in seeking to act contrary to the contractual arrangements.  However, Shenzhen Wonhe and its stockholders may fail to take certain actions required for the Company’s business or to follow the Company’s instructions despite their contractual obligations to do so.  Furthermore, if Shenzhen Wonhe or its stockholders do not act in the best interests of the Company under the contractual arrangements and any dispute relating to these contractual arrangements remains unresolved, the Company will have to enforce its rights under these contractual arraignments through the operations of PRC law and courts and therefore will be subject to uncertainties in the PRC legal system. All of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures.  As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements, which may make it difficult to exert effective control over Shenzhen Wonhe, and its ability to conduct the Company’s business may be adversely affected.

Advertising Costs

Advertising costs are charged to operations when incurred.  Advertising costs were $63,240 and $4,192 for the three months ended June 30, 2012 and 2011, respectively. Advertising costs were $63,823 and $4,192 for the six months ended June 30, 2012 and 2011, respectively.

Research and Development Costs

Research and development costs are charged to operations when incurred. Research and development costs were $82,838 and $127,025 for the three months ended June 30, 2012 and 2011, respectively. Research and development costs were $152,164 and $193,204 for the six months ended June 30, 2012 and 2011, respectively.

Accounts Receivable

Accounts receivable is stated at cost, net of an allowance for doubtful accounts.  Receivables outstanding longer than the payment terms are considered past due.  The Company maintains an allowance for doubtful accounts for estimated losses resulting from the failure of customers to make required payments.  The Company reviews the accounts receivable on a periodic basis and makes allowances where there is doubt as to the collectability of the outstanding balance.  In evaluating the collectability of an individual receivable balance, the Company considers many factors, including the age of the balance, the customer’s payment history, its current credit-worthiness and current economic trends.  The Company considers all accounts receivable at June 30, 2012 and December 31, 2011 to be fully collectible and, therefore, did not provide for an allowance for doubtful accounts.  For the periods presented, the Company did not write off any accounts receivable as bad debts.

Inventory

Inventory, comprised principally of computer components, is valued at the lower of cost or market value.  The value of inventories is determined using the first-in, first-out method.

The Company estimates an inventory allowance for estimated unmarketable inventories.  Inventory amounts are reported net of such allowances, if any.  There were no allowances for inventory as of June 30, 2012 and December 31, 2011.

Advances to Suppliers

Advances to suppliers consist of payments made to suppliers for future deliveries.

Prepaid Expenses

Prepaid expenses primarily consist of prepaid consulting fees for listing on the American stock exchange.

Fixed Assets and Depreciation

Fixed assets are recorded at cost, less accumulated depreciation.  Cost includes the price paid to acquire the asset, and any expenditure that substantially increases the asset’s value or extends the useful life of an existing asset.  Leasehold improvements are amortized over the lesser of the term of the related lease or the estimated useful lives of the improvements. Depreciation is computed using the straight-line method over the estimated useful lives of the assets.  Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the periods benefited.  Maintenance and repairs are generally expensed as incurred.  The estimated useful lives for fixed assets categories are as follows:

Office equipment	5 years
Motor vehicles	5 years
Leasehold improvements	Shorter of the length of lease or life of the improvements

Impairment of Long-lived Assets

The Company applies FASB ASC 360, “Property, Plant and Equipment,” which addresses the financial accounting and reporting for the recognition and measurement of impairment losses for long-lived assets.  In accordance with ASC 360, long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  The Company may recognize the impairment of long-lived assets in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to these assets.  No impairment of long-lived assets was recognized for the periods presented.

Advances from Customers

Advances from customers consist of payments received in advance from unrelated third parties for the purchase of the Company’s products.

Statutory Reserve Fund

Pursuant to corporate law of the PRC, the Company is required to transfer 10% of its net income, as determined under PRC accounting rules and regulations, to a statutory reserve fund until such reserve balance reaches 50% of the Company’s registered capital.  The statutory reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or used to increase registered capital, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital.

Income Taxes

The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes” (“ASC 740”), which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes.  Deferred tax assets and liabilities represent the future tax consequence for those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled.  Deferred taxes are also recognized for operating losses that are available to offset future taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Deferred tax assets at December 31, 2011 consisted entirely of the tax benefit of net operating losses that are available to offset future taxable income.

ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements.  Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.  The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions.  As of June 30, 2012 and December 31, 2011, the Company does not have any unrecognized tax benefits.

Reclassifications

Certain amounts in the prior periods financial statements have been reclassified for comparative purposes to conform to the presentation in the current periods financial statements.  These reclassifications had no effect on previously reported earnings.

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Lease Obligations (Details Textual) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Lease Obligations (Textual)
Number of apartments for lease	5
Monthly rental amount for apartments	$ 2,750
Expiration term of apartment taken on lease	Three of them will expire in 2012 and two of them will expire in the first quarter in 2013.
Shenzhen [Member]
Lease Obligations (Textual)
Monthly rental from unrelated third parties	14,749
Lease expiration date	Feb. 28, 2019
Beijing [Member]
Lease Obligations (Textual)
Monthly rental from unrelated third parties	$ 712
Lease expiration date	Sep. 17, 2012

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Consolidated Balance Sheets (USD $)	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash	$ 4,432,426	$ 76,084
Accounts receivable	1,862,913
Interest receivable		307,697
Inventory	298,666	180,398
Loans to related parties		5,179,524
Advances to suppliers	2,723,245	800,233
Prepaid expenses	283,732	5,892
Total current assets	9,600,982	6,549,828
Fixed assets	473,642	462,620
Less: accumulated depreciation	(82,958)	(44,089)
Fixed assets, net	390,684	418,531
Other assets:
Other assets – principally security deposits	35,877	45,350
Deferred income taxes		292,625
Total other assets	35,877	337,975
TOTAL ASSETS	10,027,543	7,306,334
Current liabilities:
Accounts payable	17,187	8,365
Advances from customers	67,241	154,581
Payroll payable	62,522	63,234
Taxes Payable	501,474	2,407
Accrued expenses and other payables	92,587	100,623
Total current liabilities	741,011	329,210
Stockholders’ equity:
Preferred stock: $0.001 par value; 10,000,000 shares authorized; none issued and outstanding
Common stock: $0.001 par value; 90,000,000 shares authorized; 23,900,130 and 19,128,130 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively	23,900	19,128
Additional paid-in capital	7,113,413	7,475,872
Statutory reserve fund	212,932
Retained earnings (accumulated deficit)	1,107,049	(852,329)
Other comprehensive income	365,789	334,453
Stockholders' equity before noncontrolling interests	8,823,083	6,977,124
Noncontrolling interests	463,449
Total stockholders’ equity	9,286,532	6,977,124
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 10,027,543	$ 7,306,334

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Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net income (loss) before noncontrolling interests	$ 2,241,574	$ (183,344)
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	38,536	15,363
Deferred income taxes	294,488	(61,114)
Change in operating assets and liabilities:
(Increase) in accounts receivable	(1,815,241)	(25,527)
Decrease in interest receivable	307,697
(Increase) in inventory	(118,268)	(24,997)
(Increase) in advances to suppliers	(1,923,012)	(295,302)
(Increase) decrease in prepaid expenses	(277,840)	67,435
Increase in accounts payable	8,822	3,413
(Decrease) increase in payroll payable	(712)	70,813
Increase in taxes payable	499,067	5,954
(Decrease) in accrued expenses and other payables	(69,575)	(21,844)
(Decrease) in interest received in advance		(382,518)
(Decrease) in advances from customer	(87,340)
Net cash (used in) operating activities	(901,804)	(831,668)
Cash flows from investing activities:
Purchase of fixed assets	(7,779)	(221,114)
Cash received in reverse merger	40,901
Loans to related parties	(79,050)	(7,897,970)
Repayment of related party loans	5,291,544	1,809,516
Net cash provided by (used in) investing activities	5,245,616	(6,309,568)
Effect of exchange rate changes on cash	12,530	(69,185)
Net change in cash	4,356,342	(7,210,421)
Cash, beginning	76,084	7,583,786
Cash, ending	4,432,426	373,365
Supplemental disclosure of cash flow information:
Cash paid for income taxes	18,734
Cash paid for interest

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Income Taxes (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Provision for (benefit from) income taxes
Current	$ 420,707		$ 452,703
Deferred		(39,353)	294,488	(61,114)
Income Tax Expense (Benefit), Continuing Operations	$ 420,707	$ (39,353)	$ 747,191	$ (61,114)
Income Tax (Textual)
Statutory income tax rate	25.00%	25.00%	25.00%	25.00%

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Organization (Details)	6 Months Ended
	Jun. 30, 2012 USD ($)	Jun. 30, 2012 CNY	Dec. 31, 2011
Organization (Textual)
Shares purchase under The "Exchange Agreement"	19,128,130	19,128,130
Common stock, shares, issued	23,900,130	23,900,130	19,128,130
Common stock, shares outstanding	23,900,130	23,900,130	19,128,130
Registered capital of Shenzhen Wonhe Technology Co.	$ 7,495,000
Service fee paid to Shengshihe Consulting	95% of Shenzhen Wonhe's annual net income with an additional payment of approximately $7,910 (RMB 50,000) each month.	95% of Shenzhen Wonhe's annual net income with an additional payment of approximately $7,910 (RMB 50,000) each month.
Additional payment apart from portion of net income for services	7,910	50,000
Purchase price for entire equity interest	$ 0.16	1.00

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Concentration of Credit Risk (Details) (Customer Concentration Risk [Member])	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012
Sales [Member]
Risks and Uncertainties (Textual)
Concentration risk, percentage	51.00%	43.00%
Number of customers		4
Accounts Receivable [Member]
Risks and Uncertainties (Textual)
Concentration risk, percentage		80.00%
Number of customers		4

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Summary of Significant Accounting Policies (Details 1) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Variable interest entity, consolidated, income
Sales	$ 5,607,648		$ 8,962,004
Net income	1,262,124	(118,061)	2,241,574	(183,344)
Variable Interest Entity [Member]
Variable interest entity, consolidated, income
Sales	5,607,648		8,962,004
Net income	$ 1,262,124		$ 2,241,575

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Organization

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

ORGANIZATION

1.           ORGANIZATION

Wonhe High-Tech International, Inc. (the “Company” or “Wonhe High-Tech”) was incorporated in the State of Nevada on August 13, 2007 under the name “Baby Fox International, Inc.” as a specialty retailer, developer, and designer of fashionable, value-priced women’s apparel and accessories.  The Company changed its name from Baby Fox International, Inc. to Wonhe High-Tech International, Inc. on April 20, 2012.

On June 27, 2012,  the Company entered into and closed an exchange agreement with World Win International Holding Ltd. (BVI) or “World Win,” all of the stockholders of World Win, and Super-stable Group Holdings Limited, or “Super-stable”, the majority stockholder of the Company (the “Exchange Agreement”), pursuant to which all of the stockholders of World Win transferred all of the issued and outstanding stock of World Win to the Company, and Super-stable transferred to such stockholders all of its 19,128,130 shares of the Company’s common stock (the “Share Exchange”).  The Company currently has 23,900,130 shares of common stock issued and outstanding.  The funds used by Super-stable to purchase its 19,128,130 shares of the Company’s common stock were loaned to it by Shenzhen Wonhe Technology Co., Ltd., or “Shenzhen Wonhe”, the Company’s indirect, consolidated affiliate.

As a result of the acquisition, the Company’s consolidated subsidiaries include World Win, the Company’s wholly-owned subsidiary which is incorporated under the laws of the British Virgin Island, Kuayu International Holdings Group Limited (Hong Kong), or “Kuayu”, a wholly-owned subsidiary of World Win which is incorporated under the laws of Hong Kong,  Shengshihe Management Consulting (Shenzhen) Co., Ltd., or “Shengshihe Consulting”, a wholly-owned subsidiary of Kuayu which is incorporated under the laws of PRC, and Shenzhen Wonhe Technology Co., Ltd., or “Shenzhen Wonhe”, a limited liability company incorporated under the laws of the PRC which is effectively and substantially controlled by Shengshihe Consulting through a series of captive agreements.

Shenzhen Wonhe Technology Co., Ltd is a Chinese entity established on November 16, 2010 with registered capital of $7,495,000.  It specializes in the research and development, outsourced-manufacturing and trade of x86 (instruction set architecture based on Intel 8086 CPU) and ARM (32-bit reduced instruction set architecture) based hi-tech products.  Current products, some still under development, include a Smart Media Box (SMB), Home Media Center (HMC), Home Smart Server (HSS), Mini PC (MPC), All in One PC (AIO-PC), Business PAD (B-PAD), and Portable PAD (P-PAD). The Company is located in Shenzhen, Guangdong Province, China.

On May 30, 2012, Shenzhen Wonhe entered into (i) an Exclusive Technical Service and Business Consulting Agreement; (ii) a Proxy Agreement, (iii) Share Pledge Agreement, (iv) Call Option Agreement with Shengshihe Consulting.  The foregoing agreements are collectively referred to as the “Management and Control Agreements.”

Exclusive Technical Service and Business Consulting Agreement:  Pursuant to the Exclusive Technical Service and Business Consulting Agreement, Shengshihe Consulting provides technical support, consulting, training, marketing and business consulting services to Shenzhen Wonhe as related to the business activities of Shenzhen Wonhe.  In consideration for such services, Shenzhen Wonhe has agreed to pay an annual service fee to Shengshihe Consulting an amount equal 95% of Shenzhen Wonhe’s annual net income with an additional payment of approximately $7,910 (RMB 50,000) each month. The agreement has an unlimited term and can only be terminated upon written notice agreed to by both parties.

Proxy Agreement: Pursuant to the agreement, the stockholders of Shenzhen Wonhe agreed to irrevocably entrust Shengshihe Consulting to designate a qualified person acceptable under PRC law and foreign investment policies, all of the equity interests in Shenzhen Wonhe held by each of the stockholders of Shenzhen Wonhe.  The Agreement has an unlimited term and only can be terminated upon the written notices agreed to by both parties.  

Share Pledge Agreement:  Pursuant to the agreement, each of the stockholders of Shenzhen Wonhe pledged their shares to Shengshihe Consulting to secure their obligations under the Exclusive Technical Service and Business Consulting Agreement.  In addition, the stockholders of Shenzhen Wonhe agreed not to transfer, sell, pledge, dispose of or create any encumbrance on their interests in Shenzhen Wonhe that would affect Shengshihe Consulting’s interests.  This Agreement remains effective until the obligations under the Exclusive Technical Service and Business Consulting Agreement, Call Option Agreement and Proxy Agreement have been fulfilled.

Call Option Agreement:  Pursuant to the agreement, Shengshihe Consulting has an exclusive option to purchase, or to designate a purchaser, to the extent permitted by PRC law and foreign investment policies, all of the equity interests in Shenzhen Wonhe held by each of the stockholders of Shenzhen Wonhe.  To the extent permitted by PRC laws, the purchase price for the entire equity interest is approximately $0.16 (RMB1.00) or the minimum amount required by the PRC law or government practice.  This Agreement remains effective until all the call options under the Agreement have been transferred to Shengshihe Consulting or its designated entities or natural persons. 

After the exchange, the Company’s current organization structure is as follows:

 

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Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares, issued	23,900,130	19,128,130
Common stock, shares outstanding	23,900,130	19,128,130

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Schedule of variable interest entities, consolidated financial statements

ASSETS	June 30, 2012
	(Unaudited)
Current assets:
Cash		4,391,525
Accounts receivable		1,824,714
Inventory		298,666
Advances to suppliers		2,723,245
Prepaid expenses		283,732
Total current assets		9,521,882
Fixed Assets		473,642
Less: accumulated depreciation		(82,958	)
Fixed Assets, net		390,684
Other assets:
Other assets – principally security deposits		35,877
Total other assets		35,877
TOTAL ASSETS		9,948,443

LIABILITIES	June 30, 2012
	(Unaudited)
Current liabilities:
Accounts payable	$	17,187
Advances from customers		67,241
Payroll payable		62,522
Taxes Payable		501,474
Accrued expenses and other payables		31,048
Total current liabilities		679,472
TOTAL LIABILITIES	$	679,472

		For the three months ended		For the six months ended
	June 30, 2012 (Unaudited)
Sales		$	5,607,648	$	8,962,004
Net income			1,262,124		2,241,575

For the six months ended June 30, 2012 (Unaudited)
Net cash (used in) operating activities	$	(901,804	)
Net cash provided by investing activities		5,204,715
Effect of exchange rate changes on cash		12,530
Net increase in cash	$	4,315,441

Exchange rates used to translate amounts in RMB into US dollars

	June 30, 2012	December 31, 2011	June 30, 2011
Balance sheet items, except for stockholders’ equity, as of year or period end	0.1582	0.1571	N/A

	Three Months Ended June 30,			Six Months Ended June 30,
	2012		2011	2012	2011
Amounts included in the statements of income and other comprehensive income, statements of changes in stockholders’ equity and statements of cash flows for period end		0.1580	0.1537	0.1581	0.1493

Estimated useful lives for fixed assets

Office equipment	5 years
Motor vehicles	5 years
Leasehold improvements	Shorter of the length of lease or life of the improvements

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012
Document and Entity Information
Entity Registrant Name	Wonhe High-Tech International, Inc.
Entity Central Index Key	0001434388
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding	23,900,130

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Fixed Assets (Tables)

6 Months Ended

Jun. 30, 2012

Property, Plant and Equipment [Abstract]

Components of fixed assets

	June 30,  2012			December 31, 2011
Office equipment	$	153,576		$	144,779
Motor vehicles		213,613			212,128
Leasehold improvements		106,453			105,713
		473,642			462,620
Less: Accumulated depreciation		(82,958	)		(44,089	)
Fixed assets, net	$	390,684		$	418,531

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Consolidated Statements of income and Comprehensive Income (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Statement
Sales	$ 5,607,648		$ 8,962,004
Cost of sales	(2,867,908)		(4,582,889)
Gross profit	2,739,740		4,379,115
Operating expenses
R & D expenses	(82,838)	(127,025)	(152,164)	(193,204)
Selling and marketing	(81,494)	(11,812)	(166,620)	(19,682)
General and administrative	(893,455)	(190,404)	(1,184,511)	(409,640)
Total operating expenses	(1,057,787)	(329,241)	(1,503,295)	(622,526)
Income from operations	1,681,953	(329,241)	2,875,820	(622,526)
Interest income	878	171,827	112,945	378,068
Income before provision for income taxes	1,682,831	(157,414)	2,988,765	(244,458)
Provision for income taxes	420,707	(39,353)	747,191	(61,114)
Net income before noncontrolling interests	1,262,124	(118,061)	2,241,574	(183,344)
Noncontrolling interests	(112,079)		(112,079)
Net income attributable to common stockholders	1,150,045	(118,061)	2,129,495	(183,344)
Foreign currency translation adjustment	4,267	115,349	48,059	162,862
Total comprehensive income	$ 1,154,312	$ (2,712)	$ 2,177,554	$ (20,482)
Earnings per common share, basic and diluted	$ 0.06	$ (0.01)	$ 0.11	$ (0.01)
Weighted average shares outstanding, basic and diluted	19,337,888	19,128,130	19,233,009	19,128,130

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Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

6.           RELATED PARTY TRANSACTIONS

The loans to related parties as of June 30, 2012 and December 31, 2011 are as follows:

	June 30, 2012		December 31, 2011
Guowang Capital	$	-	$	5,038,134
Puruisi Power		-		141,390
	$	-	$	5,179,524

On December 16, 2010, the Company entered into a twelve month loan agreement with a third party in the amount of $7,560,000, maturing December 31, 2011 and bearing interest at 12% per annum.  Prepaid interest of $393,120 was received upon signing of the agreement. The loan was guaranteed by Guowang Xinke Venture Capital Investment (Jiangsu) Co., Ltd. (“Guowang Capital”), an entity related to the Company through certain stockholders.  The agreement provided for the rate of interest to be increased to 15% should the entire loan not be repaid by December 31, 2011. In May 2011, Guowang Capital assumed the loan.

At March 31, 2012, all of the principal of the loan has been fully repaid. At December 31, 2011, the amount outstanding of $4,723,934 and related outstanding interest of $307,697, are included in loans to related parties and interest receivable, respectively, in the accompanying balance sheets. Interest charged by the Company for the three months ended June 30, 2012 and 2011, included in interest income was $0 and $171,827, respectively. Interest charged by the Company for the six months ended June 30, 2012 and 2011, included in interest income was $112,067 and $378,068, respectively. Interest receivable from Guowang Capital at June 30, 2012 and December 31, 2011 was $0 and $307,697, respectively.

On April 25, 2011, the Company entered into a twelve month non-interest bearing loan agreement with Guowang Capital in the amount of $314,200, due April 27, 2012.  The outstanding loan amount was fully paid at March 31, 2012.

On April 30, 2011, the Company entered into a twelve month non-interest bearing loan agreement with Zhongshan Puruisi Power Equipment Technology Co., Ltd. (“Puruisi Power”), an entity related to the Company through one of its stockholders, in the amount of $141,390, due May 2, 2012. On March 14, 2012, the Company lent additional $79,050 to Zhongshan Puruisi and the two loans were fully repaid on March 19, 2012.

For the three months and six months ended June 30, 2012, the Company had sales of $116,583 to a related party, Xuzhou Guowang Network Technology Co., Ltd, an entity related to the Company through one of Shenzhen Wonhe’s stockholders.

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Lease Obligations

6 Months Ended

Jun. 30, 2012

Leases [Abstract]

LEASE OBLIGATIONS

5.           LEASE OBLIGATIONS

The Company leases its offices in Shenzhen and Beijing from two unrelated third parties at a monthly rental of $14,749 and $712, respectively, under two operating leases, expiring on February 28, 2019 and September 17, 2012, respectively. The Company also leases five apartments for its employees at a monthly rental of $2,750, collectively, under operating leases, of which three of them will expire in 2012 and two of them will expire in the first quarter in 2013.

The minimum future rentals under these leases as of June 30, 2012, are as follows:

Year Ending
December 31,	Amount
2012	$	99,805
2013		180,286
2014		176,880
2015		176,880
2016		176,880
Thereafter		383,258
	$	1,193,989

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Summary of Significant Accounting Policies (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Current assets:
Cash	$ 4,432,426	$ 76,084	$ 373,365	$ 7,583,786
Accounts receivable	1,862,913
Inventory	298,666	180,398
Advances to suppliers	2,723,245	800,233
Prepaid expenses	283,732	5,892
Total current assets	9,600,982	6,549,828
Fixed assets	473,642	462,620
Less: accumulated depreciation	(82,958)	(44,089)
Fixed assets, net	390,684	418,531
Other assets:
Other assets – principally security deposits	35,877	45,350
Total other assets	35,877	337,975
TOTAL ASSETS	10,027,543	7,306,334
Current liabilities:
Accounts payable	17,187	8,365
Advances from customers	67,241	154,581
Payroll payable	62,522	63,234
Taxes Payable	501,474	2,407
Accrued expenses and other payables	92,587	100,623
Total current liabilities	741,011	329,210
Variable Interest Entity [Member]
Current assets:
Cash	4,391,525
Accounts receivable	1,824,714
Inventory	298,666
Advances to suppliers	2,723,245
Prepaid expenses	283,732
Total current assets	9,521,882
Fixed assets	473,642
Less: accumulated depreciation	(82,958)
Fixed assets, net	390,684
Other assets:
Other assets – principally security deposits	35,877
Total other assets	35,877
TOTAL ASSETS	9,948,443
Current liabilities:
Accounts payable	17,187
Advances from customers	67,241
Payroll payable	62,522
Taxes Payable	501,474
Accrued expenses and other payables	31,048
Total current liabilities	679,472
TOTAL LIABILITIES	$ 679,472

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Lease Obligations (Tables)

6 Months Ended

Jun. 30, 2012

Leases [Abstract]

Minimum future rentals under operating leases

Year Ending
December 31,	Amount
2012	$	99,805
2013		180,286
2014		176,880
2015		176,880
2016		176,880
Thereafter		383,258

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Concentration of Credit Risk

6 Months Ended

Jun. 30, 2012

Risks and Uncertainties [Abstract]

CONCENTRATION OF CREDIT RISK

9.     CONCENTRATION OF CREDIT RISK

Substantially all of the Company’s bank accounts are in banks located in The People’s Republic of China and are not covered by protection similar to that provided by the FDIC on funds held in United States banks.

The Company had four customers which accounted for 51% and 43% of sales for the three and six months ended June 30, 2012, respectively. The same four customers accounted for 80% of accounts receivable as of June 30, 2012.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

7.     FAIR VALUE MEASUREMENTS

FASB ASC 820, “Fair Value Measurements and Disclosures,” specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs).  In accordance with ASC 820, the following summarizes the fair value hierarchy:

  Level 1 Inputs –   Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.

  Level 2 Inputs –   Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

  Level 3 Inputs –   Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements.

ASC 820 requires the use of observable market data, when available, in making fair value measurements.  When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements.  Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.  The Company did not identify any assets or liabilities that are required to be presented at fair value.

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Income Taxes

6 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

INCOME TAXES

8.     INCOME TAXES

The provision for (benefit from) income taxes consisted of the following for the three and six months ended June 30, 2012 and 2011:

	Three Months Ended June 30,					Six Months Ended June 30,
	2012		2011			2012		2011
Current	$	420,707	$	-		$	452,703	$	-
Deferredr		-		(39,353	)		294,488		(61,114	)
	$	420,707	$	(39,353	)	$	747,191	$	(61,114	)

The Company’s effective tax rate was the same as the statutory rate of 25% for the three and six months ended June 30, 2012 and 2011.  The Company’s tax filings for the tax year ended December 31, 2010 and 2011 were examined by the tax authorities in April 2011 and 2012, respectively.  The examinations were completed and resulted in no adjustments.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Basis of Accounting and Presentation

Basis of Accounting and Presentation

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.  The unaudited consolidated financial statements as of and for the three and six months ended June 30, 2012, include Wonhe High-Tech, World Win, Kuayu, Shengshihe Consulting and its VIE, Shenzhen Wonhe.  The unaudited statements of income and other comprehensive income for the three and six months ended June 30, 2011 and audited balance sheet as of December 31, 2011, include Shenzhen Wonhe only, as World Win, Kuayu, Shengshihe Consulting were not in existence at that time. All significant intercompany accounts and transaction has been eliminated in consolidation when applicable.

Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation” (“ASC 810”), the Company is required to include in its consolidated financial statements the financial statements of its variable interest entities (“VIEs”).  ASC 810 requires a VIE to be consolidated by a company if that company is subject to a majority of the risk of loss for the VIE or is entitled to receive a majority of the VIE’s residual returns.  VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the company is the primary beneficiary of the entity.

Through the VIE agreements as disclosed in Note 1, the Company is deemed the primary beneficiary of Shenzhen Wonhe.  Accordingly, the results of Shenzhen Wonhe have been included in the accompanying consolidated financial statements. The following financial statement amounts and balances of Shenzhen Wonhe have been included in the accompanying consolidated financial statements. Shenzhen Wonhe has no assets that are collateral for or restricted solely to settle their obligations. The creditors of Shenzhen Wonhe do not have recourse to the Company’s general credit.

ASSETS	June 30, 2012
	(Unaudited)
Current assets:
Cash		4,391,525
Accounts receivable		1,824,714
Inventory		298,666
Advances to suppliers		2,723,245
Prepaid expenses		283,732
Total current assets		9,521,882
Fixed Assets		473,642
Less: accumulated depreciation		(82,958	)
Fixed Assets, net		390,684
Other assets:
Other assets – principally security deposits		35,877
Total other assets		35,877
TOTAL ASSETS		9,948,443

LIABILITIES	June 30, 2012
	(Unaudited)
Current liabilities:
Accounts payable	$	17,187
Advances from customers		67,241
Payroll payable		62,522
Taxes Payable		501,474
Accrued expenses and other payables		31,048
Total current liabilities		679,472
TOTAL LIABILITIES	$	679,472

		For the three months ended		For the six months ended
	June 30, 2012 (Unaudited)
Sales		$	5,607,648	$	8,962,004
Net income			1,262,124		2,241,575

For the six months ended June 30, 2012 (Unaudited)
Net cash (used in) operating activities	$	(901,804	)
Net cash provided by investing activities		5,204,715
Effect of exchange rate changes on cash		12,530
Net increase in cash	$	4,315,441

Under ASC 810, an enterprise has a controlling financial interest in a VIE, and must consolidate that VIE, if the enterprise has both of the following characteristics: (a) the power to direct the activities of the VIE that most significantly affected the VIE’s economic performance; and (b) the obligation to absorb losses, or the right to receive benefits, that could potentially be significant to the VIE.  The enterprise’s determination of whether it has this power is not affected by the existence of kick-out rights or participating rights, unless a single enterprise, including its related parties and de facto agents, has the unilateral ability to exercise those rights.

Shenzhen Wonhe’s actual stockholders do not hold any kick-out rights that will affect the consolidation determination.

The unaudited interim consolidated financial statements of the Company as of June 30, 2012 and for the three and six months ended June 30, 2012 and 2011, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the SEC which apply to interim financial statements.  Accordingly, they do not include all of the information and footnotes normally required by accounting principles generally accepted in the United States of America for annual financial statements.  The interim consolidated financial information should be read in conjunction with the financial statements and the notes thereto, included in the Company’s Form 8-K for the fiscal year ended December 31, 2011, previously filed with the SEC.

In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented.  The results of operations for the three and six months ended June 30, 2012 are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2012.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.  Actual results could differ from those estimates.

Foreign Currency Translations

Foreign Currency Translations

All Company assets are located in People’s Republic of China (“PRC”).  The functional currency for the majority of the Company’s operations is the RMB.  The Company uses the United States dollar (“US Dollar” or “US$” or “$”) for financial reporting purposes.  The consolidated financial statements of the Company have been translated into US dollars in accordance with ASC 830, “Foreign Currency Matters.”

All asset and liability accounts have been translated using the exchange rate in effect at the balance sheet date.  Equity accounts have been translated at their historical exchange rates when the capital transactions occurred.  Statements of income and other comprehensive income amounts have been translated using the average exchange rate for the periods presented.  Adjustments resulting from the translation of the Company’s consolidated financial statements are recorded as other comprehensive income.

The exchange rates used to translate amounts in RMB into US dollars for the purposes of preparing the consolidated financial statements are as follows:

The exchange rates used to translate amounts in RMB into US dollars for the purposes of preparing the consolidated financial statements are as follows:

	June 30, 2012	December 31, 2011	June 30, 2011
Balance sheet items, except for stockholders’ equity, as of year or period end	0.1582	0.1571	N/A

	Three Months Ended June 30,			Six Months Ended June 30,
	2012		2011	2012	2011
Amounts included in the statements of income and other comprehensive income, statements of changes in stockholders’ equity and statements of cash flows for period end		0.1580	0.1537	0.1581	0.1493

For three months ended June 30, 2012 and 2011, foreign currency translation adjustments of $4,267 and $115,349, respectively, and for the six months ended June 30, 2012 and 2011, foreign currency translation adjustments of $48,059 and $162,862, respectively, have been reported as other comprehensive income.

Although government regulations now allow convertibility of the RMB for current account transactions, significant restrictions still remain.  Hence, such translations should not be construed as representations that the RMB could be converted into US dollars at that rate or any other rate.

The value of RMB against the US dollar and other currencies may fluctuate and is affected by, among other things, changes in China’s political and economic conditions.  Any significant revaluation of RMB may materially affect the Company’s financial condition in terms of US dollar reporting.

Revenue and Cost Recognition

Revenue and Cost Recognition

The Company’s revenues are derived from sales of electronic products. The Company’s revenue recognition policies comply with FASB ASC 605, “Revenue Recognition”.  In general, the Company recognizes revenue when there is persuasive evidence of an arrangement, the fee is fixed or determinable, the products or services have been delivered and collectability of the resulting receivable is reasonably assured. 

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Financial instruments include cash, accounts receivable, interest receivable, loans to related parties, accounts payable and accrued expenses and other payables.  As of June 30, 2012 and December 31, 2011, the carrying values of these financial instruments approximated their fair values due to the short term nature of these financial instruments.

Vulnerability Due to Operations in PRC

Vulnerability Due to Operations in PRC

The Company’s operations may be adversely affected by significant political, economic and social uncertainties in the PRC.  Although the PRC government has been pursuing economic reform policies for more than twenty years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC’s political, economic and social conditions.  There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent or effective in the future.

The Company believes that Shengshihe Consulting’s contractual agreements with Shenzhen Wonhe are in compliance with PRC law and are legally enforceable.  The stockholders of Shenzhen Wonhe are also the senior management of the Company and therefore the Company believes that they have no current interest in seeking to act contrary to the contractual arrangements.  However, Shenzhen Wonhe and its stockholders may fail to take certain actions required for the Company’s business or to follow the Company’s instructions despite their contractual obligations to do so.  Furthermore, if Shenzhen Wonhe or its stockholders do not act in the best interests of the Company under the contractual arrangements and any dispute relating to these contractual arrangements remains unresolved, the Company will have to enforce its rights under these contractual arraignments through the operations of PRC law and courts and therefore will be subject to uncertainties in the PRC legal system. All of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures.  As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements, which may make it difficult to exert effective control over Shenzhen Wonhe, and its ability to conduct the Company’s business may be adversely affected.

Advertising Costs

Advertising Costs

Advertising costs are charged to operations when incurred.  Advertising costs were $63,240 and $4,192 for the three months ended June 30, 2012 and 2011, respectively. Advertising costs were $63,823 and $4,192 for the six months ended June 30, 2012 and 2011, respectively.

Research and Development Costs

Research and Development Costs

Research and development costs are charged to operations when incurred. Research and development costs were $82,838 and $127,025 for the three months ended June 30, 2012 and 2011, respectively. Research and development costs were $152,164 and $193,204 for the six months ended June 30, 2012 and 2011, respectively.

Accounts Receivable

Accounts Receivable

Accounts receivable is stated at cost, net of an allowance for doubtful accounts.  Receivables outstanding longer than the payment terms are considered past due.  The Company maintains an allowance for doubtful accounts for estimated losses resulting from the failure of customers to make required payments.  The Company reviews the accounts receivable on a periodic basis and makes allowances where there is doubt as to the collectability of the outstanding balance.  In evaluating the collectability of an individual receivable balance, the Company considers many factors, including the age of the balance, the customer’s payment history, its current credit-worthiness and current economic trends.  The Company considers all accounts receivable at June 30, 2012 and December 31, 2011 to be fully collectible and, therefore, did not provide for an allowance for doubtful accounts.  For the periods presented, the Company did not write off any accounts receivable as bad debts.

Inventory

Inventory

Inventory, comprised principally of computer components, is valued at the lower of cost or market value.  The value of inventories is determined using the first-in, first-out method.

The Company estimates an inventory allowance for estimated unmarketable inventories.  Inventory amounts are reported net of such allowances, if any.  There were no allowances for inventory as of June 30, 2012 and December 31, 2011.

Advances to Suppliers

Advances to Suppliers

Advances to suppliers consist of payments made to suppliers for future deliveries.

Prepaid Expenses

Prepaid Expenses

Prepaid expenses primarily consist of prepaid consulting fees for listing on the American stock exchange.

Fixed Assets and Depreciation

Fixed Assets and Depreciation

Fixed assets are recorded at cost, less accumulated depreciation.  Cost includes the price paid to acquire the asset, and any expenditure that substantially increases the asset’s value or extends the useful life of an existing asset.  Leasehold improvements are amortized over the lesser of the term of the related lease or the estimated useful lives of the improvements. Depreciation is computed using the straight-line method over the estimated useful lives of the assets.  Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the periods benefited.  Maintenance and repairs are generally expensed as incurred.  The estimated useful lives for fixed assets categories are as follows:

Office equipment	5 years
Motor vehicles	5 years
Leasehold improvements	Shorter of the length of lease or life of the improvements

Impairment of Long-lived Assets

Impairment of Long-lived Assets

The Company applies FASB ASC 360, “Property, Plant and Equipment,” which addresses the financial accounting and reporting for the recognition and measurement of impairment losses for long-lived assets.  In accordance with ASC 360, long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  The Company may recognize the impairment of long-lived assets in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to these assets.  No impairment of long-lived assets was recognized for the periods presented.

Advances from Customers

Advances from Customers

Advances from customers consist of payments received in advance from unrelated third parties for the purchase of the Company’s products.

Statutory Reserve Fund

Statutory Reserve Fund

Pursuant to corporate law of the PRC, the Company is required to transfer 10% of its net income, as determined under PRC accounting rules and regulations, to a statutory reserve fund until such reserve balance reaches 50% of the Company’s registered capital.  The statutory reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or used to increase registered capital, provided that the remaining reserve balance after such issue is not less than 25% of the registered capital.

Income Taxes

Income Taxes

The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes” (“ASC 740”), which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes.  Deferred tax assets and liabilities represent the future tax consequence for those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled.  Deferred taxes are also recognized for operating losses that are available to offset future taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Deferred tax assets at December 31, 2011 consisted entirely of the tax benefit of net operating losses that are available to offset future taxable income.

ASC 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements.  Under ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.  The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions.  As of June 30, 2012 and December 31, 2011, the Company does not have any unrecognized tax benefits.

Reclassifications

Reclassifications

Certain amounts in the prior periods financial statements have been reclassified for comparative purposes to conform to the presentation in the current periods financial statements.  These reclassifications had no effect on previously reported earnings.

Recently issued accounting standards

In December 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented.  The Company does not expect that the adoption of ASU 2011-11 will have a significant, if any, impact on the Company’s consolidated financial statements.

In May 2011, the FASB issued Accounting Standards Update No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (“ASU No. 2011-04”), which amends current guidance to result in common fair value measurements and disclosures between accounting principles generally accepted in the United States and International Financial Reporting Standards. The amendments explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. ASU No. 2011-04 clarifies the application of certain existing fair value measurement guidance and expands the disclosures for fair value measurements that are estimated using significant unobservable inputs (Level 3 inputs, as defined in Note 7). The amendments in ASU No. 2011-04 are effective for interim and annual periods beginning after December 15, 2011. The adoption of the provisions of ASU No. 2011-04 did not have a material impact on the Company’s consolidated financial statements.

In June 2011, the FASB issued Accounting Standards Update No. 2011-05, “Presentation of Comprehensive Income” (“ASU No. 2011-05”), which improves the comparability, consistency, and transparency of financial reporting and increases the prominence of items reported in other comprehensive income (“OCI”) by eliminating the option to present components of OCI as part of the statement of changes in stockholders’ equity. The amendments in this standard require that all nonowner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Subsequently in December 2011, the FASB issued Accounting Standards Update No. 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income” (“ASU No. 2011-12”), which indefinitely defers the requirement in ASU No. 2011-05 to present on the face of the financial statements reclassification adjustments for items that are reclassified from OCI to net income (loss) in the statement(s) where the components of net income (loss) and the components of OCI are presented.

The amendments in these standards do not change the items that must be reported in OCI, when an item of OCI must be reclassified to net income (loss), or change the option for an entity to present components of OCI gross or net of the effect of income taxes.  The amendments in ASU No. 2011-05 and ASU No. 2011-12 are effective for interim and annual periods beginning after December 15, 2011 and are to be applied retrospectively. The adoption of the provisions of ASU No. 2011-05 and ASU No. 2011-12 did not have a material impact on the Company’s consolidated financial statements.

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Related Party Transactions (Details Textual) (USD $)	3 Months Ended		6 Months Ended			1 Months Ended	3 Months Ended		6 Months Ended					1 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010 Guowang Capital [Member]	Jun. 30, 2012 Guowang Capital [Member]	Jun. 30, 2011 Guowang Capital [Member]	Jun. 30, 2012 Guowang Capital [Member]	Jun. 30, 2011 Guowang Capital [Member]	Dec. 31, 2011 Guowang Capital [Member]	Apr. 25, 2011 Guowang Capital [Member]	Dec. 16, 2010 Guowang Capital [Member]	Apr. 30, 2011 Puruisi Power [Member]	Jun. 30, 2012 Puruisi Power [Member]	Mar. 14, 2012 Puruisi Power [Member]	Dec. 31, 2011 Puruisi Power [Member]
Related Party Transaction (Textual)
Loans to related parties					$ 5,179,524						$ 5,038,134	$ 314,200	$ 7,560,000	$ 141,390		$ 79,050	$ 141,390
Interest receivable					307,697		0		0		307,697
Interest rate on loan						12.00%
Maturity date of loan						Dec. 31, 2011								May 02, 2012
Prepaid interest received							393,120		393,120		0
Related party transaction rate after maturity period						15.00%
Repayment of principal of loan, date									Mar. 31, 2012						Mar. 19, 2012
Interest income	878	171,827	112,945	378,068			0	171,827	112,067	378,068
Loan outstanding amount											4,723,934
Outstanding interest on loans to related party											307,697
Sales to related party, Xuzhou Guowang Network Technology Co., Ltd	$ 116,583		$ 116,583

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

Provision for (benefit from) income taxes

	Three Months Ended June 30,					Six Months Ended June 30,
	2012		2011			2012		2011
Current	$	420,707	$	-		$	452,703	$	-
Deferredr		-		(39,353	)		294,488		(61,114	)
	$	420,707	$	(39,353	)	$	747,191	$	(61,114	)

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Summary of Significant Accounting Policies (Details 3)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Exchange rates used to translate amounts in RMB into US dollars
Balance sheet items, except for stockholders’ equity, as of year or period end	0.1582		0.1582		0.1571
Amounts included in the statements of income and other comprehensive income, statements of changes in stockholders’ equity and statements of cash flows for period end	0.1580	0.1537	0.1581	0.1493

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Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (USD $)	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Statutory Reserves	Noncontrolling Interest	Other Comprehensive Income
Beginning balance at Dec. 31, 2011	$ 6,977,124	$ 19,128	$ 7,475,872	$ (852,329)			$ 334,453
Reclassification of noncontrolling interests in VIE			(374,750)	42,616		348,857	(16,723)
Recapitalization for reverse merger	17,262	4,772	12,291	199
Net income	2,241,574			2,129,495		112,079
Appropriation of statutory reserves				(212,932)	212,932
Other comprehensive income	50,572					2,513	48,059
Ending balance at Jun. 30, 2012	$ 9,286,532	$ 23,900	$ 7,113,413	$ 1,107,049	$ 212,932	$ 463,449	$ 365,789

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Fixed Assets

6 Months Ended

Jun. 30, 2012

Property, Plant and Equipment [Abstract]

FIXED ASSETS

4.           FIXED ASSETS

Fixed assets at June 30, 2012 and December 31, 2011 are summarized as follows:

	June 30,  2012			December 31, 2011
Office equipment	$	153,576		$	144,779
Motor vehicles		213,613			212,128
Leasehold improvements		106,453			105,713
		473,642			462,620
Less: Accumulated depreciation		(82,958	)		(44,089	)
Fixed assets, net	$	390,684		$	418,531

Depreciation expense charged to operations for the three months ended June 30, 2012 and 2011 was $19,384 and 9,393, respectively. Depreciation expense charged to operations for the six months ended June 30, 2012 and 2011 was $38,536 and 15,363, respectively.

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Summary of Significant Accounting Policies (Details 4)	6 Months Ended
	Jun. 30, 2012
Office equipment [Member]
Schedule of estimated useful lives for fixed assets
Estimated useful lives for fixed assets	5 years
Motor vehicles [Member]
Schedule of estimated useful lives for fixed assets
Estimated useful lives for fixed assets	5 years
Leasehold improvements [Member]
Schedule of estimated useful lives for fixed assets
Estimated useful lives for fixed assets	Shorter of the length of lease or life of the improvements

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Loans to related parties

	June 30, 2012		December 31, 2011
Guowang Capital	$	-	$	5,038,134
Puruisi Power		-		141,390
	$	-	$	5,179,524