INCOME TAXES (Tables)

9 Months Ended

Sep. 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 Nine Months
	Ended September 30,				Ended September 30,
	2013		2012		2013		2012
PRC income tax:
Current	$	4,802,892	$	5,863,804	$	15,045,973	$	14,997,311
Deferred		(113,235)		(4,973)		(84,143)		(11,525)
	$	4,689,657	$	5,858,831	$	14,961,830	$	14,985,786

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 September 30,						For the Nine Months Ended September 30,
	2013			2012			2013			2012
Pre-tax income	$	18,628,552		$	23,085,469		$	57,887,722		$	57,134,102
United States federal corporate income tax rate		34	%		34	%		34	%		34	%
Income tax computed at United States statutory corporate income tax rate		6,333,707			7,849,060			19,681,825			19,425,595
Reconciling items:
Loss not recognized as deferred tax assets		185,730			237,951			669,537			838,138
Non-deductible expenses		2,557			23,704			68,938			98,148
Change in fair value of warrants		10,200			(153,340)			20,903			(17,099)
Rate differential for PRC earnings		(1,729,302)			(2,103,517)			(5,395,230)			(5,370,521)
Other		(113,235)			4,973			(84,143)			11,525
Effective tax expense	$	4,689,657		$	5,858,831		$	14,961,830		$	14,985,786

Significant Components of Deferred Income Tax Assets

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred income tax assets are as follows:

	September 30,		December 31,
	2013		2012
Deferred income tax assets:
Net operating loss carry forward	$	5,459,400	$	4,786,510
Unrealized intercompany profit in inventory		28,625		24,948
Less: Valuation allowance		(5,459,400)		(4,786,510)
	$	28,625	$	24,948