INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Provision for Income Tax

The Company’s provision for income taxes consisted of:

	Three months ended March 31,
	2013			2012
PRC income tax:
Current	$	4,714,783		$	4,456,962
Deferred		(95	)		(179,616	)
	$	4,714,688		$	4,277,346

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:

	Three months ended March 31,
	2013			2012
Pre-tax income	$	18,025,875		$	15,752,358
United States federal corporate income tax rate		34	%		34	%
Income tax computed at United States statutory corporate income tax rate		6,128,798			5,355,802
Reconciling items:
Loss not recognized as deferred tax assets		253,717			342,528
Non-deductible expenses		(3,428	)		(7,230	)
Change in fair value of warrants		36,720			121,281
Rate differential for PRC earnings		(1,701,023	)		(1,542,865	)
Other		(96	)		7,830
Effective tax expense	$	4,714,688		$	4,277,346

Significant Components of Deferred Income Tax Assets

Significant components of deferred income tax assets are as follows:

	March 31,			December 31
	2013			2012
Deferred income tax assets:
Net operating loss carry forward	$	5,040,227		$	4,786,510
Unrealized intercompany profit in inventory		24,919			24,948
Less: Valuation allowance		(5,040,227	)		(4,786,510	)
	$	24,919		$	24,948