CONCENTRATIONS AND RISKS

9 Months Ended

Sep. 30, 2015

NOTE 13 - CONCENTRATIONS AND RISKS

The Company maintains certain bank accounts in the PRC and BVI, which are not insured by Federal Deposit Insurance Corporation (“FDIC”) insurance or other insurance. The cash and restricted cash balance held in the PRC bank accounts was $57,741,123 and $16,052,999 as of September 30, 2015 and December 31, 2014, respectively. The cash balance held in the BVI bank accounts was $13,385 and $7,774 as of September 30, 2015 and December 31, 2014, respectively. As of September 30, 2015 and December 31, 2014, the Company held $119,265 and $61,986 of cash balances within the United States, and none of such U.S. balance was in excess of FDIC insurance limits of $250,000 as of September 30, 2015 and December 31, 2014, respectively.

For the periods ended September 30, 2015 and 2014, almost 100% of the Company's assets were located in the PRC and 100% of the Company's revenues were derived from its subsidiaries located in the PRC.

The Company’s principal raw material used during the periods was gold, which accounted for almost 100% of its total purchases for the three and nine months ended September 30, 2015 and 2014. The Company purchased gold directly, and solely, from the Shanghai Gold Exchange, the largest gold trading platform in the PRC.

No customer accounted for more than 10% of annual sales for the three and nine month periods ended September 30, 2015 and 2014.