Note 5 - SHORT-TERM BANK LOAN

6 Months Ended

Jun. 30, 2011

Short-term Debt [Text Block]

Note 5 – SHORT-TERM BANK LOAN

On March 21, 2011, the Company was granted Chinese Yuan Renminbi (“RMB”) 3,000,000 (approximately $464,000) one year short-term bank loan from a local bank in the PRC, with annual interest rate at 7.88%, for working capital purpose. On May 25, 2011, the Company was granted another Chinese Yuan Renminbi (“RMB”) 2,000,000 (approximately $310,000) one year short-term bank loan with annual interest rate at 8.20% from the same local bank in the PRC. The loan is secured by (1) personal guarantee executed by a major shareholder (and his wife) of the Company and (ii) pledge of the Company’s real property with carrying amount of approximately $2.1 million as of June 30, 2011. The loan will be paid off on March 20, 2012 and May 24, 2012, respectively. As of June 30, 2011, the carrying amount of the short-term bank loans approximates the fair values.