Short-term secured bank loan

6 Months Ended

Jun. 30, 2011

Short-term secured bank loan

14.  Short-term secured bank loan

The bank loan is denominated in Renminbi and repayable within one year.  It carries interest at 8.203% per annum.

The bank loan is guaranteed by (i) Ms. Zheng Luo, who did not receive any compensation for acting as guarantor; (ii) the Company’s bank deposit of $464,100 and (iii) bank deposits of three unrelated parties in the amount of $1,392,300.

The Company’s restricted cash of $464,100 was also pledged to the bank to secure the bank loans of $4,641,000 granted to the aforementioned unrelated parties.  The restricted cash will be released by the bank after the Company and the unrelated parties have fully repaid their borrowings.