Note 6 - Land Use Rights, Net

6 Months Ended

Jun. 30, 2013

Notes

Note 6 - Land Use Rights, Net

NOTE 6 – LAND USE RIGHTS, NET

The Company’s land use rights represent the cost of purchasing the rights to use the leasehold land in the PRC for the production facilities of Jiangxi Jien. According to the law of the PRC, the government owns all the land in the PRC. Companies or individuals are only authorized to possess and use the land through land use rights granted by the PRC government.

As of the balance sheet dates, the Company’s land use rights are summarized as follows:

	Useful lives	June 30, 2013	December 31,  2012
At cost:
Land use rights	59 – 60 years	$123,853	$121,420
Less: Accumulated amortization		(23,569)	(22,282)
Land use rights, net		$100,284	$99,138

Amortization expense of land use rights for the six months ended June 30, 2013 and 2012 was $835 and $816, respectively.