LOAN PAYABLES

3 Months Ended

Sep. 30, 2011

NOTE 11 - LOAN PAYABLES

The short-term loans payable consist of three loans which mature on dates ranging from January 13, 2012 through September 19, 2012 with different interest rates. The loans are collateralized by the Company’s land use rights.

						September 30,		June 30,
No.	Customer	Loan period per agreement	Interest Rate			2011		2011
1	Agricuture Bank of China-Beijing Branch	January 20, 2011 - January 13, 2012		7.2565	%	$	1,312,080	$	1,299,480

2	Agricuture Bank of China-Beijing Branch	April 12, 2011 - April 11, 2012		7.2565	%		1,249,600		1,237,600

3	Agricuture Bank of China-Beijing Branch	May 23, 2011 - April 19, 2012		7.2565	%		1,577,620		1,562,470

4	Bank of Tianjin	September 9, 2011 - July 23, 2012		7.5440	%		1,788,490		-

5	Minsheng Bank	September 8, 2011 - September 8, 2012		8.2	%		1,789,172		-

6	Minsheng Bank	September 19, 2011 - September 19, 2012		8.2	%		553,828		-

7	China Merchant Bank	July 25, 2011 - July 26, 2012		8.528	%		3,905,000		-
		Total				$	12,175,790	$	4,099,550

The weighted average interest rate is 8.00%. The interest expenses from short-term loans were $156,479 and $176,675 for the quarter ended September 30, 2011, and 2010 respectively.