SHORT TERM LOANS

9 Months Ended

Sep. 30, 2013

Short-Term Debt [Abstract]

SHORT TERM LOANS

NOTE 5 - SHORT TERM LOANS

Short term loans consist of the following:

	As of
	September 30,		December 31,
	2013		2012
Loans payable to CITIC Bank	$	6,510,523	$	6,340,551
Total short term loans	$	6,510,523	$	6,340,551

Loans payable to CITIC Bank consists of two working capital loan contracts with original one-year terms from November 29, 2011 to November 29, 2012. The loans have been renewed for another year expiring November 29, 2013, carrying an interest rate of 6.6% per year. The loans are secured by the Company’s buildings, and its plants and machinery.

Interest expense for these bank loans for the nine months ended September 30, 2013 and 2012 was $287,330 and $ 336,212, respectively. For the three months ended September 30, 2013 and 2012, it was $96,866 and $113,298, respectively.