Short-Term Bank Loans

6 Months Ended

Jun. 30, 2014

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 June 30, 2014 and December 31, 2013, short-term bank loans consisted of the following:

	June 30, 2014		December 31, 2013
Loan from Agricultural and Commercial Bank, due on May 9, 2014 with annual interest rate of 7.20% at December 31, 2013, secured by certain assets of the Company and repaid on due date.	$	-	$	490,966

Loan from Agricultural and Commercial Bank, due on March 20, 2015 with annual interest rate of 7.20% at June 30, 2014, secured by certain assets of the Company.		487,393		-

Loan from Bank of China, due on March 1, 2014 with annual interest rate of 6.27% at December 31, 2013, secured by certain assets of the Company and repaid on due date.		-		490,966

Loan from Bank of China, due on March 4, 2014 with annual interest rate of 6.27% at December 31, 2013, secured by certain assets of the Company and repaid on due date.		-		490,966

Loan from Jiangsu Huishan Mintai Village Town Bank, due on July 15, 2014 with annual interest rate of 9.30% at June 30, 2014 and December 31, 2013, secured by certain assets of the Company and repaid on due date (see note 15).		812,321		818,277

Loan from Bank of Communications, due on April 21, 2014 with annual interest rate of 6.72% at December 31, 2013 and repaid on due date.		-		327,312

Loan from Bank of Communications, due on April 23, 2014 with annual interest rate of 6.72% at December 31, 2013 and repaid on due date.		-		490,966

Loan from Bank of Communications, due on October 21, 2014 with annual interest rate of 6.72% at June 30, 2014.		324,928		-

Loan from Bank of Communications, due on October 23, 2014 with annual interest rate of 6.72% at June 30, 2014.		487,393		-

Loan from Bank of China, due on February 16, 2015 with annual interest rate of 6.27% at June 30, 2014, secured by certain assets of the Company.		487,393		-

Loan from Bank of China, due on February 18, 2015 with annual interest rate of 6.27% at June 30, 2014, secured by certain assets of the Company.		487,393		-

Total short-term bank loans	$	3,086,821	$	3,109,453

- 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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