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NOTE 12 - STATUTORY SURPLUS RESERVE FUND	12 Months Ended
Dec. 31, 2012
Statutory Surplus Reserve Fund Disclosure	NOTE 12 – STATUTORY SURPLUS RESERVE FUND As stipulated by the new Corporate Law of the PRC effective on January 1, 2006, net income after taxation can only be distributed as dividends after appropriation has been made for the following: i. making up cumulative prior years’ losses, if any; ii. allocations to the “Statutory surplus reserve” of at least 10% of income after tax, as determined under PRC accounting rules and regulations, until the fund amounts to 50% of the Company’s registered capital; iii. allocations to the discretionary surplus reserve, if approved in the stockholders’ general meeting. The Company has appropriated $2,415,732 and $1,914,074 as reserve for the statutory surplus reserve requirement as of December 31, 2012 and 2011 respectively.

NOTE 12 - STATUTORY SURPLUS RESERVE FUND

12 Months Ended

Dec. 31, 2012

Statutory Surplus Reserve Fund Disclosure

NOTE 12 – STATUTORY SURPLUS RESERVE FUND

As stipulated by the new Corporate Law of the PRC effective on January 1, 2006, net income after taxation can only be distributed as dividends after appropriation has been made for the following:

i. making up cumulative prior years’ losses, if any;

ii. allocations to the “Statutory surplus reserve” of at least 10% of income after tax, as determined under PRC accounting rules and regulations, until the fund amounts to 50% of the Company’s registered capital;

iii. allocations to the discretionary surplus reserve, if approved in the stockholders’ general meeting.

The Company has appropriated $2,415,732 and $1,914,074 as reserve for the statutory surplus reserve requirement as of December 31, 2012 and 2011 respectively.