PREPAYMENTS FOR RAW MATERIAL PURCHASES

9 Months Ended

Sep. 30, 2011

PREPAYMENTS FOR RAW MATERIAL PURCHASES

NOTE 5 PREPAYMENTS FOR RAW MATERIAL PURCHASES

Starting from the second quarter of 2011, the Company initiated purchases of scrap copper from overseas via a third-party import-export company.  Pursuant to the terms of the Company’s purchase agreements with that third-party, the Company was required to make prepayments in advance of delivery of the purchased scrap copper to the Company’s production facilities. As of September 30, 2011, such prepayments were $25,180,104.