COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2011

COMMITMENTS AND CONTINGENCIES

NOTE 22 COMMITMENTS AND CONTINGENCIES

Lease commitments

The Company has entered into tenancy agreements for the lease of factory premises and warehouse with independent parties. The Company’s commitments for minimum lease payments under these operating leases for the next five years and thereafter as of December 31, 2011 are as follows:

Payable within:
- fiscal year ending December 31, 2012	$	57,134
- fiscal year ending December 31, 2013		61,579
- fiscal year ending December 31, 2014 and thereafter		20,949
Total	$	139,662

Capital commitments  – contracted but not provided for

	December 31,		December 31,
	2011		2010
Acquisition or construction of buildings - within one year	$	2,982,114	$	1,664,997
Purchase of machinery - within one year		1,872,748		-
	$	4,854,862	$	1,664,997

Other commitments

During 2011, the Company signed various research and development contracts with Shanghai Electric Cable Research Institute with a total contract amount of $3.02 million. As of December 31, 2011, the Company has paid $1.90 million. The Company expects to pay the remaining $1.12 million within one year.