COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2012

COMMITMENTS AND CONTINGENCIES

NOTE 21 COMMITMENTS AND CONTINGENCIES

Lease commitments

The Company has entered into tenancy agreements for the lease of factory premises and warehousing facilities with independent parties. The Company’s commitments for minimum lease payments under these operating leases for the next five years and thereafter as of June 30, 2012 are as follows:

Payable within:
- remainder of fiscal year ending December 31, 2012	$	29,408
- fiscal year ending December 31, 2013		61,345
- fiscal year ending December 31, 2014		20,870
Total	$	111,623

Capital commitments  – contracted but not provided for

	June 30,		December 31,
	2012		2011
Acquisition or construction of buildings - within one year	$	-	$	2,982,114
Purchase of machinery - within one year		1,739,158		1,872,748
Purchase of machinery - over one year		-		-
	$	1,739,158	$	4,854,862

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 million. As of June 30, 2012, the Company has paid $2.18 million. The Company expects to pay the remaining $0.82 million within one year.