Note 10 - Accrued Expenses and Other Payables

6 Months Ended

Jun. 30, 2013

Notes

Note 10 - Accrued Expenses and Other Payables

NOTE 10 – ACCRUED EXPENSES AND OTHER PAYABLES

As of the balance sheet dates, the Company’s accrued expenses and other payables are summarized as follows:

	June 30, 2013	December 31,  2012
Accrued interest expense	277,507	272,056
Amount due to Shenzhen Hanhong – (i)	887,805	870,365
Other payables – (ii)	873,875	836,340
	$2,039,187	$1,978,761

(i)    The amount mainly represents consultancy fee payable to Shenzhen Hanhong. Shenzhen Hanhong is a related party as Mr. Xinghua Chen is a common director of the Company and Shenzhen Hanhong. The amount is interest free, unsecured and has no fixed terms of repayment.

(ii)   Included in other payable as of June 30, 2013, there are an amount payable for office decoration in the amount of $260,640, and an amount payable for marketing and promotional expenses of $439,853. The remaining balance consists of amounts owed by the Company to various entities that are incurred by the Company in daily business operations other than trading nature.  These liabilities and accrued operating expenses are non-interest bearing and are payable within one year.