Long-term secured bank loan

9 Months Ended

Sep. 30, 2011

Long-term secured bank loan

13. Long-term secured bank loan

The bank loan is denominated in Renminbi and has a 2-year term. It carries interest at 0.5625% per month and is guaranteed by (i) Ms. Zheng Luo, who did not receive any compensation for acting as guarantor; (ii) a third party, who received $19,072 from the Company for acting as guarantor and (iii) the property owned by Ms. Zheng Luo.

The long-term secured bank loan of $1,077,849 as of September 30, 2011 will be repayable in 2012.