Note 9- Debts

6 Months Ended

Jun. 30, 2013

Notes

Note 9- Debts

NOTE 9– DEBTS

The Company’s debts are summarized as follows:

			Effective interest rate		Outstanding balance
Name of parties	Due date	Nature	June 30, 2013	December 31,  2012	June 30, 2013	December 31,  2012
China Construction Bank	December18, 2013	Secured	7.8%	7.8%	1,384,650	1,357,450
Short term debt					$1,384,650	$1,357,450

Total interest expense related to these debts for the six months ended June 30, 2013 and 2012 was $41,972 and $43,885 respectively.

As of June 30, 2013, the bank loans were secured by pledges of certain fixed assets and land use rights held by of the Company.