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LIABILITIES
6 Months Ended
Jun. 30, 2012
LIABILITIES [Text Block]

NOTE C - LIABILITIES

As of June 30, 2012, the balance sheet included total liabilities of $5,635,305, which consisted of current liabilities of $4,795,155 and construction payable of $840,150. Included in the current liabilities was a short-term loan of $1,495,357 (equivalent to RMB9.5 million) from Changle Rural Credit Union, which is a bank located in Shandong Province of the PRC. The original term of the loan was from August 25, 2009 to August 24, 2010 with an interest rate of 7.965% per annum. In August 2011, the Company renewed this short-term loan with the same amount of $1,495,357 (equivalent to RMB9.5 million) with Changle Rural Credit Union. The term of the renewal loan started from August 31, 2011 with a maturity date of August 20, 2012. The adjustable interest rate is a rate per annum equal to the Prime Rate plus 50% of prime rate. The prime rate is based on six-month-to-one-year loan interest rate released by The People's Bank of China. The interest rate for the short-term loan was 9.465% as of June 30, 2012. 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 $3.15 million (equivalent to RMB20.03 million) and $4.32 million (equivalent to RMB27.45 million) as of June 30, 2012, respectively. For the $3.15 million land use rights, $2.49 million was classified under construction-in-progress for the commercial property and the remaining $0.66 million was classified under intangible assets subject to amortization. The Company currently is in process of negotiating with Changle Rural Credit Union to renew the bank loan upon maturity date on August 20, 2012.  Additionally, there is another short-term loan of $157,406 (equivalent to RMB1.0 million) from Mr. Fengguo Liu, an unrelated party. Also included in the current liabilities was $1,745,801 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.