SUBSEQUENT EVENT

9 Months Ended

Sep. 30, 2012

SUBSEQUENT EVENT [Text Block]

12. SUBSEQUENT EVENT

Management of the Group has evaluated subsequent events through the issuance of the consolidated financial statements and identified the following subsequent event:

In October 2012, the Group obtained a loan of RMB53 million (approximately $8 million) from Citi Bank for working capital, as well as a RMB24 million (approximately $4 million) non-interest bearing bank acceptance from Citi Bank which matures in April, 2013, and is secured by a RMB12 million (approximately $2 million) bank deposit and a pledge of commercial properties of the Group, guaranteed by the Company’s Chairman and controlling stockholder, Lianmo Wu, and his wife Chushing Cheung.

In October 2012, the Group obtained a RMB100 million (approximately $16 million) non-interest bearing bank acceptance from Dezhou Bank which matures in April, 2013, and is secured by a RMB100 million (approximately $16 million) bank deposit.

In November 2012, the Group obtained a RMB96 million (approximately $15 million) non-interest bearing bank acceptance from Shanghai Pudong Development Bank which matures in February, 2013, and is secured by a RMB48 million (approximately $7.5 million) bank deposit and a pledge of commercial properties of the Group, guaranteed by the Company’s Chairman and controlling stockholder, Lianmo Wu, and his wife Chushing Cheung.

In November 2012, the Group obtained a loan of RMB12.5 million (approximately $2 million) from Minsheng Bank for working capital, which is secured by a pledge of commercial properties of the Group, guaranteed by the Company’s Chairman and controlling stockholder, Lianmo Wu, his wife Chushing Cheung, the Fifth Season Hangzhou Department Store Investment Management Co., Ltd., and the Company’s Director, Xiaolei Xing.