Short-Term Bank Loans

12 Months Ended

Dec. 31, 2012

NOTE 7 – 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, 2012 and 2011, short-term bank loans consisted of the following:

	December 31, 2012		December 31, 2011
Loan from Agricultural and Commercial Bank, due and repaid 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 and repaid on May 20, 2012 with annual interest rate of 6.73% at December 31, 2011, respectively.		-		471,350
Loan from Agricultural and Commercial Bank, due on October 10, 2012 with annual interest rate of 5.75%, secured by certain assets of the Company and repaid on August 22, 2012.		-		471,350
Loan from Agricultural and Commercial Bank, due on August 26, 2013 with annual interest rate of 6.90% at December 31, 2012, secured by certain assets of the Company.		474,977		-
Loan from Bank of Communications, due and repaid on May 14, 2012 with annual interest rate adjusted quarterly based on 120% of People’s Bank of China’s base rate.		-		471,350
Loan from Bank of Communications, due and repaid on May 23, 2012 with annual interest rate adjusted quarterly based on 120% of People’s Bank of China’s base rate.		-		314,233
Loan from Bank of Communications, due on May 8, 2013 with annual interest rate of 6.72% at December 31, 2012.		316,651		-
Loan from Bank of Communications, due on May 12, 2013 with annual interest rate of 6.72% at December 31, 2012		474,977		-
Loan from Bank of China, due on January 16, 2013 with annual interest rate of 7.35% at December 31, 2012, secured by certain assets of the Company, renewed on due date (see Note 16).		949,953		-

Total short-term bank loans	$	2,216,558	$	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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