NOTES PAYABLE - Note 14

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

NOTES PAYABLE - Note 14

NOTE 14 — NOTES PAYABLE

These notes are payable in three to six months and bear no interest. The balance of notes payable as of June 30, 2011 and December 31, 2010 consisted of the following (all were bankers' acceptances):

	June 30, 2011		December 31, 2010
			(Audited)
CECCC, honored by the BOCTB, from July 12, 2010 to January 12, 2011, secured by $907,468 of cash in bank	$	-	$	1,814,937
CECCC, honored by the BOCTB, from July 14, 2010 to January 14, 2011, secured by $1,361,203 of cash in bank		-	2,722,405
CECCC, honored by the BOCTB, from September 14, 2010 to March14, 2011, secured by $1,512,447 of cash in bank.		-	3,024,895
CECCC, honored by the BOCTB, from September 16, 2010 to March 16, 2011, secured by $2,268,671 of cash in bank.		-	4,537,342
CECCC, honored by the BOCTB, from September 17, 2010 to March 17, 2011, secured by $1,615,294 of cash in bank.		-	3,230,588
CECCC, honored by the BOCTB, from September 19, 2010 to March 19, 2011, secured by $2,422,941 of cash in bank.		-	4,845,882
CECCC, honored by the BOCTB, from October 9, 2010 to April 9, 2011, secured by $1,826,456 of cash in bank.		-	3,629,874
Tianjin Tong Guang Group Electronics Science & Technology Co., Ltd., honored by the China Bohai Bank, from December 10, 2010 to June 10, 2011, secured by $1,522,047 of cash in bank.		-	1,512,447
CECCC, honored by the BOCTB, from January 14, 2011 to July 14, 2011, secured by $928,218 of cash in bank		1,856,436	-
CECCC, honored by the Bohai Bank, from January 19, 2011 to July 19, 2011, secured by $1,392,327 of cash in bank		2,784,653	-
CECCC, honored by the BOCTB, from March 18, 2011 to September 18, 2011, secured by $3,867,574 of cash in bank.		7,735,148	-
CECCC, honored by the BOCTB, from March 21, 2011 to September 21, 2011, secured by $3,171,411 of cash in bank.		6,342,822	-
CECCC, honored by the BOCTB, from March 22, 2011 to September 22, 2011, secured by $959,158 of cash in bank.		1,918,317	-
CECCC, honored by the BOCTB, from April 13, 2011 to October 13, 2011, secured by $742,574 of cash in bank		1,485,149	-
CECCC, honored by the BOCTB, from April 18, 2011 to October 18, 2011, secured by $1,113,861of cash in bank		2,227,723	-
Total notes payable	$	24,350,248	$		25,318,370

The Company is contingently liable for a total of Rmb 37.30 million, or approximately US$5.77 million, for notes received from customers that are either discounted or endorsed but not matured as of June 30, 2011.