Note 4 - Prepaid Expenses and Other Receivables

6 Months Ended

Jun. 30, 2013

Notes

Note 4 - Prepaid Expenses and Other Receivables

NOTE 4 – PREPAID EXPENSES AND OTHER RECEIVABLES

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

	June 30, 2013	December 31,  2012
Prepaid expenses– (i)	$82,489	$165,576
Other receivables– (i)	412,525	325,234
Prepayment– (ii)	946,449	-
Amount due from Shu Jian– (iii)	1,916,926	-
Total	$3,358,389	$490,810

(i)            The Company evaluates prepaid expenses and other receivables on a periodic basis and records a charge to the current operations of the Company when the related expense has been incurred or when the amounts reported as other receivables is no longer deemed to be collectible by the Company.

(ii)   The Company provides suppliers with an advance payment to pay for goods and services before delivery.

(iii)          The amount represents temporary advances to Shu Jian, an independent third party, which is interest-bearing at bank rate for the corresponding period, unsecured and repayable within 3 months.