NOTES PAYABLE	9 Months Ended
Sep. 30, 2016
NOTES PAYABLES
NOTES PAYABLE	NOTE 7 – NOTES PAYABLE Line of Credit In November 2014, the Company entered into a line of credit with a bank in the amount of RMB30,000,000 (approximately $4,498,169). Advances on the line of credit were due one year from the date of the advance and were collateralized by certain land use rights, buildings and accounts receivable and bear interest at an annual rate of 6.16% (based upon 110% of the PRC government's short term rate of 5.6% in November 2014). In addition, the Company's Chief Executive Officer and Chair of the board of directors ("Board") personally guaranteed the line of credit. In November, 2015 the Company renewed its line of credit in the amount of RMB30,000,000 (approximately $4,498,169 with the same bank. The line of credit is payable in two equal installments of RMB15,000,000 (approximately $2.25 million) payable on September 16, 2016 and October 19, 2016, respectively. The Company made the payment due for RMB15,000,000 according to the terms of the agreement as of September 30, 2016. Advances on the line of credit are collateralized by certain land use rights, buildings and accounts receivable and bear interest at an annual rate of 5.06% (based upon 110% of the PRC government's current short term rate of 4.6%). In addition, the Company's Chief Executive Officer and Chairman of the Board personally guaranteed the line of credit. The outstanding balance due under the revolving line of credit was RMB15,000,000 and RMB30,000,000 as of September 30, 2016 and December 31, 2015, respectively ($2,249,085 as of September 30, 2016 and $4,621,998 as of December 31, 2015). The Company has no additional amounts available to it under this line of credit. This amount has been classified as short-term notes payable in the accompanying condensed consolidated balance sheets as of September 30, 2016. Subsequent to the nine-month period ended September 30, 2016, the Company made the second installment payment of RMB15,000,000. *Fair Value of* *Notes Payable* – Based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities, the carrying amounts of notes payable outstanding as of September 30, 2016 and December 31, 2015 approximated their fair value because of the immediate or short-term maturity of these financial instruments and because the underlying instruments bear interest rates that approximated current market rates.

NOTES PAYABLE

9 Months Ended

Sep. 30, 2016

NOTE 7 – NOTES PAYABLE

Line of Credit

In November 2014, the Company entered into a line of credit with a bank in the amount of RMB30,000,000 (approximately $4,498,169). Advances on the line of credit were due one year from the date of the advance and were collateralized by certain land use rights, buildings and accounts receivable and bear interest at an annual rate of 6.16% (based upon 110% of the PRC government's short term rate of 5.6% in November 2014). In addition, the Company's Chief Executive Officer and Chair of the board of directors ("Board") personally guaranteed the line of credit. In November, 2015 the Company renewed its line of credit in the amount of RMB30,000,000 (approximately $4,498,169 with the same bank. The line of credit is payable in two equal installments of RMB15,000,000 (approximately $2.25 million) payable on September 16, 2016 and October 19, 2016, respectively. The Company made the payment due for RMB15,000,000 according to the terms of the agreement as of September 30, 2016. Advances on the line of credit are collateralized by certain land use rights, buildings and accounts receivable and bear interest at an annual rate of 5.06% (based upon 110% of the PRC government's current short term rate of 4.6%). In addition, the Company's Chief Executive Officer and Chairman of the Board personally guaranteed the line of credit.

The outstanding balance due under the revolving line of credit was RMB15,000,000 and RMB30,000,000 as of September 30, 2016 and December 31, 2015, respectively ($2,249,085 as of September 30, 2016 and $4,621,998 as of December 31, 2015). The Company has no additional amounts available to it under this line of credit. This amount has been classified as short-term notes payable in the accompanying condensed consolidated balance sheets as of September 30, 2016. Subsequent to the nine-month period ended September 30, 2016, the Company made the second installment payment of RMB15,000,000.

Fair Value of Notes Payable – Based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities, the carrying amounts of notes payable outstanding as of September 30, 2016 and December 31, 2015 approximated their fair value because of the immediate or short-term maturity of these financial instruments and because the underlying instruments bear interest rates that approximated current market rates.