Short Term Bank Borrowings (Tables)

9 Months Ended

Sep. 30, 2013

Short-Term Loans Payable to Financial Institutions with Interest Rates

The following is a summary short-term bank borrowings:

		September 30,		December 31,
		2013		2012
Huaxia Bank:
Interest at 8.20%, payable February 7, 2013	(A)	$	-	$	1,745,727
Pingan Bank:
Interest at 6.72%, payable May 22,2013	(B)		-		5,902,144
Interest at 6.72%, payable May 18,2013	(C)		-		1,666,376
Bohai Bank:
Interest at 6.3%, payable on February 3, 2014	(D)		4,888,860		-
Fuxin Bank:
Interest at 6.5%, payable on March 1, 2014	(E )		8,148,101		-
Citic Bank:
Interest at 7.5%, payable on April 18, 2014	(F )		6,518,480		-
Interest at 7.5%, payable on September 24, 2014	(G )		8,148,101		-
Total		$	27,703,542	$	9,314,247

	A.	A loan with Huaxia Bank was fully repaid upon maturity in February 2013;

	B.	Loans with Pingan Bank were fully repaid upon maturity during second quarter of 2013

	C.	A loan with Pingan Bank was fully repaid upon maturity in May 2013;

	D.	On February 4, 2013, the Company’s subsidiary, Dalian Fusheng entered into a loan agreement with Bohai Bank to borrow RMB 30 million (equivalent to $4,888,860) for one year (from February 4, 2013 to February 3, 2014). The loan bears a variable interest rate of 6.3%, which can be adjusted up 5% on a quarterly basis. The Company’s CEO Mr. An Fengbin, his wife Ms. Wang Jing and an unrelated party, Ms. Li Weizhi cosigned the loan guarantee agreements with the bank to provide guarantee to this loan by their personal assets and credits. The loan has no collateral requirements.

	E.	On March 25, 2013, the Company’s subsidiary, Dalian Xingyuan entered into a loan agreement with Fuxin Bank to borrow RMB 50 million (equivalent to $8,148,101) for one year (from March 31, 2013 to March 1, 2014). The loan bears a variable interest rate of 6.5%, which can be adjusted up 30% on a quarterly basis. Two unrelated third parties, Mr. Wang Hai and Dalian Boat Equipment Co., Ltd. cosigned the loan guarantee agreements with the bank to provide guarantee to this loan. The loan has no collateral requirements.

	F.	On September 25, 2013, the Company's subsidiary Dalian Fusheng entered into a short-term bank loan agreement with Citic Bank to borrow RMB 40 million (equivalent to $6,518,480) as working capital for approximately 7 months (from September 25, 2013 to April 18, 2014). The loan bears an interest rate of 7.5%. There is no collateral requirement for this loan.

On September 25, 2013, the Company's subsidiary Dalian Xingyuan entered into a short-term bank loan agreement with Citic Bank to borrow RMB 50 million (equivalent to $8,148,100) as working capital for approximately one year (from September 25, 2013 to September 24, 2014). The loan bears an interest rate of 7.5%. There is no collateral requirement for this loan.