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LIABILITIES
3 Months Ended
Mar. 31, 2013
LIABILITIES [Text Block]

NOTE C - LIABILITIES

As of March 31, 2013, the balance sheet included total liabilities of $6,338,417, which consisted of current liabilities of $5,479,031 and construction payable of $859,386. Included in the current liabilities was a short-term loan of $1,529,594 (equivalent to RMB9.5 million) from Changle Rural Credit Union, which is a bank located in Shandong Province of the PRC. On September 4, 2012, the Company renewed this short-term loan. 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 March 31,2013. 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 RMB19.78 million) and $4.42 million (equivalent to RMB27.47 million) as of March 31, 2013, respectively. For the $3.19 million land use rights, $2.56 million was classified under construction-in-progress for the commercial property and the remaining $0.63 million was classified under intangible assets subject to amortization. Additionally, there is another short-term loan of $161,010 (equivalent to RMB1.0 million) from Mr. Fengguo Liu, an unrelated party. The short-term loan is due on January 12, 2014 with an interest rate at 2% per month. Also included in the current liabilities was $2,114,418 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.