INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Provision for Income Tax

The Company’s provision for income taxes consisted of:

	Year ended December 31,
	2012		2011			2010
PRC income tax:
Current	$	20,555,465	$	17,388,836		$	14,525,214
Deferred		175,379		(65,136	)		(25,638	)
	$	20,730,844	$	17,323,700		$	14,499,576

Reconciliation of Provision For Income Taxes Determined at Local Income Tax Rate to Effective Income Tax Rate

A reconciliation of the provision for income taxes determined at the local income tax rate to the Company’s effective income tax rate is as follows:

	Year ended December 31,
	2012			2011			2010
Pre-tax income	$	78,672,847		$	70,457,233		$	52,965,551
United States federal corporate income tax rate		34	%		34	%		34	%
Income tax computed at United States statutory corporate income tax rate		26,748,768			23,955,459			18,008,287
Reconciling items:
Loss not recognized as deferred tax assets		1,155,378			771,079			989,985
Non-deductible expenses		197,375			175,696			82,520
Change in fair value of warrants		17,241			(1,071,460	)		429,053
Rate differential for PRC earnings		(7,399,559	)		(6,260,780	)		(5,126,705	)
Other		11,641			(246,294	)		116,436
Effective tax expense	$	20,730,844		$	17,323,700		$	14,499,576

Significant Components of Deferred Income Tax Assets

Significant components of deferred income tax assets are as follows:

	As of December 31,
	2012			2011
Deferred income tax assets:
Net operating loss carryforward	$	4,786,510		$	3,631,132
Unrealized intercompany profit in inventory		24,948			13,142
Accrued R&D expenses		-			187,446
Less: Valuation allowance		(4,786,510	)		(3,631,132	)
	$	24,948		$	200,588