SHORT-TERM BANK BORROWINGS

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

SHORT-TERM BANK BORROWINGS

NOTE—6 SHORT-TERM BANK BORROWINGS 

Short-term bank borrowings consist of the following:

	June 30, 2014		December 31, 2013
Payable to financial institutions in the PRC:
Demand bank notes:
Equivalent to RMB14,700,000, due December 2014, which is collateralized by its restricted cash and guaranteed by its vendor and bears the handling fee equal to 0.05% of its face value.	$	2,387,255	$	-
Equivalent to RMB14,850,000 (2013: RMB14,000,000), fully repaid in June 2014, which is collateralized by its restricted cash and guaranteed by its vendor and bears the handling fee equal to 0.05% of its face value.		-		2,289,827
Short-term borrowings:
Equivalent to RMB21,000,000 with interest rate at 7.2% per annum, monthly payable, due March 18, 2015, which is guaranteed by its vendors and secured by land use right		3,410,364		-
Equivalent to RMB7,000,000 with interest rate at 7.2% per annum, monthly payable, due March 18, 2015, which is guaranteed by its vendor and secured by land use right		1,136,788		-
Equivalent to RMB11,000,000 with interest rate at 1.2 times of the Bank of China Benchmark Lending Rate, monthly payable, due April 8, 2014, which is guaranteed by its vendor and secured by land use right		-		1,799,149
Equivalent to RMB10,000,000 with interest rate at 1.2 times of the Bank of China Benchmark Lending Rate, monthly payable, due April 8, 2014, which is guaranteed by its vendor		-		1,635,590
Equivalent to RMB7,000,000 with interest rate at 1.2 times of the Bank of China Benchmark Lending Rate, monthly payable, due May 28, 2014, which is guaranteed by its vendor		-		1,144,914
Total short-term bank borrowings	$	6,934,407	$	6,869,480

The effective Bank of China Benchmark Lending rate is 6% and 6% per annum for the three and six months ended June 30, 2014 and 2013.