INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Provision for Income Tax

The Company’s provision for income taxes consisted of:

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2013		2012		2013		2012
PRC income tax:
Current	$	5,528,298	$	4,676,545	$	10,243,081	$	9,133,507
Deferred		29,187		173,064		29,092		(6,552)
	$	5,557,485	$	4,849,609	$	10,272,173	$	9,126,955

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:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2013			2012			2013			2012
Pre-tax income	$	21,233,295		$	18,296,275		$	39,259,170		$	34,048,633
United States federal corporate income tax rate		34	%		34	%		34	%		34	%
Income tax computed at United States statutory corporate income tax rate		7,219,320			6,220,733			13,348,118			11,576,535
Reconciling items:
Loss not recognized as deferred tax assets		230,090			257,658			483,807			600,187
Non-deductible expenses		69,809			81,674			66,381			74,444
Change in fair value of warrants and gain on extinguishment of warrants		(26,017)			14,960			10,703			136,241
Rate differential for PRC earnings		(1,964,905)			(1,724,138)			(3,665,928)			(3,267,003)
Other		29,188			(1,278)			29,092			6,551
Effective tax expense	$	5,557,485		$	4,849,609		$	10,272,173		$	9,126,955

Significant Components of Deferred Income Tax Assets

Significant components of deferred income tax assets are as follows:

	June 30, 2013		December 31, 2012
Deferred income tax assets:
Net operating loss carry forward	$	5,270,325	$	4,786,510
Unrealized intercompany profit in inventory		20,429		24,948
Accrued R&D expenses		34,338		-
Less: Valuation allowance		(5,270,325)		(4,786,510)
	$	54,767	$	24,948