OTHER RECEIVABLES & PREPAID EXPENSES - Note 9

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

OTHER RECEIVABLES & PREPAID EXPENSES - Note 9

NOTE 9 - OTHER RECEIVABLES AND PREPAID EXPENSES

As of March 31, 2012 and December 31, 2011, the Company's other receivables and prepaid expenses consisted of the following:

	March 31, 2012		December 31, 2011
	(Unaudited)		(Audited)
Advance to employees	$	30,623	$	23,882
Deposit for equipment lease		212,800		211,583
Prepaid expenses		263,137		238,857
Bank notes (a)		16,379,283		9,226,641
Other		190,834		83,044
Total other receivables	$	17,076,677	$	9,784,007

The deposit for equipment lease is recoverable within one year.

(a) Per purchase contract signed in 2010, CECCC provided mobile phone components to the Company. The Company paid in advance to CECCC by payment of "bank notes". During 2011, no purchase transaction was completed. As of March 31, 2012, the total outstanding amount is $16.8 million (RMB 105.7 million). During the month of April 2012, the Company collected $12.5 million (RMB 79.0 million) from CECCC.