Short-Term Bank Loans

12 Months Ended

Dec. 31, 2011

NOTE 8 – SHORT-TERM BANK LOANS

Short-term bank loan represents an amount due to a bank that is due within one year. This loan can be renewed with the bank upon maturity. At December 31, 2011 and 2010, short-term bank loans consisted of the following:

	December 31,
	2011		2010
Loan from Bank of Communications, due on February 1, 2011 with annual interest at December 31, 2010 of 4.86%, the rate being adjusted quarterly based on 120% of People’s Bank of China’s base rate and repaid on due date.	$	-	$	756,224

Loan from Agricultural and Commercial Bank, due on March 31, 2011 with annual interest rate at December 31, 2010 of 5.75%, secured by certain assets of the Company and repaid on due date.		-		604,979

Loan from Agricultural and Commercial Bank, due on October 30, 2011 with annual interest rate at due date and December 31, 2010 of 5.75%, secured by certain assets of the Company and repaid on due date.		-		453,734

Loan from Agricultural and Commercial Bank, due on March 30, 2012 with annual interest at December 31, 2011 of 7.88%, secured by certain assets of the Company.		628,466		-

Loan from China Merchants Bank, due on May 20, 2012 with annual interest rate at December 31, 2011 of 6.73%.		471,350		-

Loan from Agricultural and Commercial Bank, due on October 10, 2012 with annual interest rate at December 31, 2011 of 5.75%, secured by certain assets of the Company.		471,350		-

Loan from Bank of Communications, due on May 14, 2012 with annual interest rate being adjusted quarterly based on 120% of People’s Bank of China’s base rate		471,350		-

Loan from Bank of Communications, due on May 23, 2012 with annual interest rate being adjusted quarterly based on 120% of People’s Bank of China’s base rate		314,233		-

Total short-term bank loans	$	2,356,749	$	1,814,937

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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