SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Estimated Amortization Expense on Land Use Right

The estimated amortization expense on the land use right in the next five years and thereafter is as follows:

Year ending June 30:
2015	$	67,022
2016		67,022
2017		67,022
2018		67,022
2019		67,022
Thereafter		2,714,371
Total:	$	3,049,481

Expected Useful Lives

Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

	Expected useful life	Residual value
Building	30 years	5%
Plant and machinery	10 – 20 years	5%
Furniture, fixture and equipment	5 – 8 years	5%

Exchange Rates

Translation of amounts from RMB into US$1 has been made at the following exchange rates for the respective period:

	June 30, 2014		June 30, 2013
Period-end RMB:US$1 exchange rate		6.1577		6.1882
Average period RMB:US$1 exchange rate	6.1441		6.2479