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LIABILITIES
9 Months Ended
Sep. 30, 2011
LIABILITIES [Text Block]

NOTE C - LIABILITIES

As of September30, 2011, the balance sheet included total liabilities of $5,815,899, which consisted of current liabilities of $4,932,947 and construction payable of $882,952. Included in the current liabilities was a short-term loan of $1,489,495 (equivalent to RMB 9.5 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 $1,489,495 (equivalent to RMB 9.5 million) with Changle Rural Credit Union. The term of the renewal loan started from August 31, 2011 with maturity date on 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 9.840% as of September 30, 2011. 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 $3.14 million (equivalent to RMB 20.03 million) and $4.22 million (equivalent to RMB 26.93 million) as of September 30, 2011, respectively. For the $3.14 million land use rights, $2.49 million was classified under construction-in-progress for the commercial property and the remaining $0.65 million was classified under intangible assets subject to amortization. Additionally, there is another short-term loan of $156,789 (equivalent to RMB 1.0 million) from Mr. Fengguo Liu, an unrelated party. Also included in the current liabilities was $1,978,407 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.