Land use rights, net

	September 30,			December 31,
	2012			2011
	(Unaudited)
	$			$

Cost
Land located in Huizhou		3,416,123			3,405,396
Land located in Ganzhou		1,332,697			-
		4,748,820			3,405,396
Accumulated amortization		(340,080	)		(272,431	)

		4,408,740			3,132,965

As of September 30, 2012, land use rights of the Company included certain parcels of land located in Huizhou City, Guangdong Province, the P.R.C. and Ganzhou City, Jiangxi Province, the P.R.C., with a total net carrying value of $4,408,740. The land use rights for land with area of approximately 126,605 square meters and 58,669 square meters, which will expire on May 23, 2057 and January 4, 2062, respectively.

The land use rights are being amortized annually using the straight-line method over the contract terms of 50 years. The Company recorded amortization expenses of $66,332 and $49,562 for the nine months ended September 30, 2012 and 2011, respectively, and $23,502 and $16,399 for the three months ended September 30, 2012 and 2011, respectively.

The land use right for land located in Huizhou City was pledged as collateral for bank loans as of September 30, 2012 and December 31, 2011.