Income Tax (Tables)

6 Months Ended

Jun. 30, 2012

Income Tax Expense (Benefit) [Abstract]

Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities

The following table summarizes the temporary differences which result in deferred tax assets and liabilities as at June 30, 2012 and December 31, 2011:

	June 30, 2012		December 31, 2011
Deferred tax assets:	(Unaudited)		(Audited)
Inventory impairment reserve	$	8,419	$	8,360
Inventory shortage		61,121		60,688
Long-term investment impairment		17,801		17,676
		87,341		86,724
Less: Valuation allowance		-		-
Total deferred tax assets		87,341		86,724
Deferred tax liabilities:
Developed products		(30,793)		(30,575)
Deferred tax assets, net	$	56,548	$	56,149

Schedule of Effective Income Tax Rate and Amount Reconciliation

The following table reconciles the U.S. statutory rates to the Company's effective tax rate for the six months ended June 30, 2012 and 2011:

	June 30, 2012	June 30, 2011
US statutory rates	34.0%	34.0%
Tax rate difference	-24.0%	-21.8%
Valuation allowance	37.0%	17.2%
Tax for prior year	3.0%	1.2%
Non-taxable Income of pass through entity	-11.3%	0.0%
Tax per financial statements	38.7%	30.5%

The following table reconciles the U.S. statutory rates to the Company's effective tax rate for the three months ended June 30, 2012 and 2011:

	June 30, 2012	June 30, 2011
US statutory rates	34.0%	34.0%
Tax rate difference	-27.1%	-14.2%
Valuation allowance	36.1%	0.2%
Tax for prior year	13.1%	10.8%
Non-taxable Income of pass through entity	-8.5%	0.0%
Tax per financial statements	47.6%	30.4%