Short-Term Bank Loans

6 Months Ended

Jun. 30, 2012

NOTE 6 – 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 June 30, 2012 and December 31, 2011, short-term bank loans consisted of the following:

	June 30, 2012		December 31, 2011
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 and repaid on due date.	$	-	$	628,466

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

Loan from China Merchants Bank, due on November 17, 2012 with annual interest rate being adjusted quarterly based on 130% of People’s Bank of China’s base rate.		474,706		-

Loan from Agricultural and Commercial Bank, due on October 10, 2012 with annual interest rate of 5.75% at June 30, 2012 and December 31, 2011, respectively, secured by certain assets of the Company.		474,706		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, and repaid on due date.		-		471,350

Loan from Bank of Communications, due on November 14, 2012 with annual interest rate of 7.32% at June 30, 2012.		474,706		-

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, and repaid on due date.		-		314,233

Loan from Bank of Communications, due on November 21, 2012 with annual interest rate of 7.32% at June 30, 2012.		316,471		-

Loan from Bank of China, due on January 16, 2013 with annual interest rate of 7.35% at June 30, 2012 and secured by certain assets of the Company.		949,412		-

Total short-term bank loans	$	2,690,001	$	2,356,749

- 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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