CONSTRUCTION IN PROGRESS DEPOSIT - RELATED PARTIES - Note 12

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

CONSTRUCTION IN PROGRESS DEPOSIT - RELATED PARTIES - Note 12

NOTE 12 — CONSTRUCTION IN PROGRESS DEPOSIT - RELATED PARTIES

	March 31, 2012		December 31, 2011
	(Unaudited)		(Audited)
Manufacturing plant	$	10,235,134	$	10,170,809

The Company signed an agreement with Leimone (Tianjin) Industrial Co., Ltd. ("Tianjin Leimone") to construct a manufacturing plant on June 26, 2010 for $15,063,000 (RMB 99,591,000). The contract includes land use rights for 46,021 square meters and space of 21,029 square meters. As of March 31, 2012 and December 31, 2011, the amount paid to Tianjin Leimone was $10,235,134 (RMB 64,734,150) and $10,170,809 (RMB 64,734,150) respectively and is recorded as construction in progress deposit, as ownership of the premise will not be transferred to the Company until construction is completed. The Company expects construction of the new facility to be completed by the second half of 2012. The delay of the construction resulted from a labor dispute between a related party and construction contractor which is now pending court decision (See Item 1. Legal Proceedings).