Short-Term Bank Loans

3 Months Ended

Jun. 30, 2011

Short-Term Bank Loans [Text Block]

12. Short-term bank loans

		June 30,		December 31,
		2011		2010
		(Unaudited)
Secured bank loans	$	11,766,482	$	7,584,721
Unsecured bank loans		-		3,033,889
	$	11,766,482	$	10,618,610

All bank loans are repayable within one year and carry annual interest at 100% of the benchmark interest rate published by the People’s Bank of China (the “PBOC”) or at a fixed rate of 5.56% per annum.

The secured bank loans were secured by the following assets of the Company :-

		June 30,		December 31,
		2011		2010
		(Unaudited)
Trade receivables (Note 5)	$	18,162,620	$	5,922,542
Property, plant and equipment (Note 9)		-		2,931,629
Land use rights (Note 10)		-		1,005,428
	$	18,162,620	$	9,859,599

The unsecured bank loans as of December 31, 2010 were guaranteed by Mr. Zhao and a non-related party who did not receive any compensation for acting as guarantors for the Company.

During the reporting periods, there was no covenant requirement under the bank loans granted to the Company.