XML 23 R8.htm IDEA: XBRL DOCUMENT

LIABILITIES	6 Months Ended
Jun. 30, 2011
LIABILITIES [Text Block]	NOTE C - LIABILITIES As of June 30, 2011, the balance sheet included total liabilities of $5,525,722, which consisted of current liabilities of $4,699,935 and construction payable of $825,787. Included in the current liabilities was a short-term loan of $1,469,791 (equivalent to RMB 9.5 million) from Changle Rural Credit Union, which is a bank located in Shandong Province of the PRC. This short-term loan had been secured by the Company’s land use right and construction-in-progress of SD Chaoying with a book value of $3.09 million (equivalent to RMB 20.03 million) and $3.65million (equivalent to RMB 23.59 million) as of June 30, 2011, respectively. For the $3.09 million land use rights, $2.45 million was classified under construction-in-progress for the commercial property and the remaining $0.64 million was classified under intangible assets subject to amortization. The original term of the loan was from August 25, 2009 to August 24, 2010 with an interest rate of 7.965% per annum. The Company renewed the loan with the bank for a new term from August 31, 2010 to August 25, 2011 (total of twelve months) with annual interest rate at 9.558% . Additionally, there is another short-term loan of $154,715 (equivalent to RMB 1.0 million) from Fengguo Liu, an unrelated party. Also included in the current liabilities was $2,268,323 of loans from related companies, including Xi’an Yanfeng Biotechnology Co., Ltd., Shaanxi Yanfeng Real Estate Co. Ltd, Shaanxi Chaoying Beauty & Cosmetics Group Co., Ltd and the stockholders who are also the Company’s officers. These entities were related to the Company through common ownership and principal officers. These loans are non-interest bearing and have no set repayment terms.

LIABILITIES

6 Months Ended

Jun. 30, 2011

NOTE C - LIABILITIES

As of June 30, 2011, the balance sheet included total liabilities of $5,525,722, which consisted of current liabilities of $4,699,935 and construction payable of $825,787. Included in the current liabilities was a short-term loan of $1,469,791 (equivalent to RMB 9.5 million) from Changle Rural Credit Union, which is a bank located in Shandong Province of the PRC. This short-term loan had been secured by the Company’s land use right and construction-in-progress of SD Chaoying with a book value of $3.09 million (equivalent to RMB 20.03 million) and $3.65million (equivalent to RMB 23.59 million) as of June 30, 2011, respectively. For the $3.09 million land use rights, $2.45 million was classified under construction-in-progress for the commercial property and the remaining $0.64 million was classified under intangible assets subject to amortization. The original term of the loan was from August 25, 2009 to August 24, 2010 with an interest rate of 7.965% per annum. The Company renewed the loan with the bank for a new term from August 31, 2010 to August 25, 2011 (total of twelve months) with annual interest rate at 9.558% . Additionally, there is another short-term loan of $154,715 (equivalent to RMB 1.0 million) from Fengguo Liu, an unrelated party. Also included in the current liabilities was $2,268,323 of loans from related companies, including Xi’an Yanfeng Biotechnology Co., Ltd., Shaanxi Yanfeng Real Estate Co. Ltd, Shaanxi Chaoying Beauty & Cosmetics Group Co., Ltd and the stockholders who are also the Company’s officers. These entities were related to the Company through common ownership and principal officers. These loans are non-interest bearing and have no set repayment terms.