SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2013

Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of the assets as follows:

		Useful Life
		(In years)
Buildings		20
Machinery		5-10
Office equipment & motor vehicles		5

Exchange Rates Used to Translate Amounts in RMB to U.S. Dollars

The exchange rates used to translate amounts in RMB into U.S. Dollars for the purposes of preparing the consolidated financial statements are based on the rates as published on the website of People’s Bank of China and are as follows:

		September 30, 2013		December 31,2012
Balance sheet items, except for equity accounts		US$1=RMB 6.1480		US$1=RMB 6.2855

	Three months ended September 30,
	2013	2012
Items in the statements of comprehensive income and cash flows	US$1=RMB 6.1678	US$1=RMB 6.3344

	Nine months ended September 30,
	2013	2012
Items in the statements of comprehensive income and cash flows	US$1=RMB 6.2152	US$1=RMB 6.3170