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LIABILITIES
9 Months Ended
Sep. 30, 2012
LIABILITIES [Text Block]

NOTE C - LIABILITIES

As of September 30, 2012, the balance sheet included total liabilities of $5,778,652, which consisted of current liabilities of $4,929,385 and construction payable of $849,267. Included in the current liabilities was a short-term loan of $1,511,584 (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 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. On September 4, 2012, the Company renewed this short-term loan with the same amount of $1,511,584 (equivalent to RMB9.5 million) with Changle Rural Credit Union. The term of the renewal loan started from September 4, 2012 with a maturity date of September 2, 2013. The interest rate for the short-term loan was 12% per annum as of September 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 $3.19 million (equivalent to RMB 20.03 million) and $4.33 million (equivalent to RMB27.21 million) as of September 30, 2012, respectively. For the $3.19 million land use rights, $2.52 million was classified under construction-in-progress for the commercial property and the remaining $0.67 million was classified under intangible assets subject to amortization. Additionally, there is another short-term loan of $159,114 (equivalent to RMB1.0 million) from Mr. Fengguo Liu, an unrelated party. The short-term loan is due January 12, 2013 with an interest rate at 2% per month. Also included in the current liabilities was $1,839,454 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.