6. ADVANCES TO SUPPLIERS

3 Months Ended

Mar. 31, 2013

Advances To Suppliers [Abstract]

ADVANCES TO SUPPLIERS

6.  ADVANCES TO SUPPLIERS

Advances to suppliers consist primarily of advances for inventories, equipment and properties, not delivered at the balance sheets date. The Group utilizes advances to suppliers in an effort to keep future purchasing prices stable and consistent.

Advanced amounts are refundable if the transaction is not completed by the other party in accordance with the terms of the contract or agreement. During the three month periods ended March 31, 2013 and 2012, no advances to suppliers were refunded in cash.