INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Provision for Income Tax

The Company’s provision for income taxes consisted of:

	Year ended December 31,
	2013		2012		2011
PRC income tax:
Current	$	19,843,738	$	20,555,465	$	17,388,836
Deferred		(118,821)		175,379		(65,136)
	$	19,724,917	$	20,730,844	$	17,323,700

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,
	2013			2012			2011
Pre-tax income	$	75,884,367		$	78,672,847		$	70,457,233
United States federal corporate income tax rate		34	%		34	%		34	%
Income tax computed at United States statutory corporate income tax rate		25,800,685			26,748,768			23,955,459
Reconciling items:
Loss not recognized as deferred tax assets		962,173			1,155,378			771,079
Non-deductible expenses		14,492			197,375			175,696
Change in fair value of warrants		39,068			17,241			(1,071,460)
Rate differential for PRC earnings		(7,091,501)			(7,399,559)			(6,260,780)
Other		-			11,641			(246,294)
Effective tax expense	$	19,724,917		$	20,730,844		$	17,323,700

Significant Components of Deferred Income Tax Assets

Significant components of deferred income tax assets are as follows:

	As of December 31,
	2013		2012
Deferred income tax assets:
Net operating loss carryforward	$	5,744,674	$	4,786,510
Unrealized intercompany profit in inventory		25,178		24,948
Accrued R&D expenses		121,240		-
Less: Valuation allowance		(5,744,674)		(4,786,510)
	$	146,418	$	24,948