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SHORT-TERM BANK LOANS
 6 Months Ended
Jun. 30, 2011
SHORT-TERM BANK LOANS [Text Block]

NOTE 4: SHORT-TERM BANK LOANS

Short term bank loans consist of the following:

    June 30, 2011     December 31, 2010  
Bank Loans borrowed by TMK Shenzhen            
Shenzhen Development Bank $  -   $ 1,209,920  
DBS Bank   1,268,130        
Bank Loans borrowed by Borou            
Industrial Bank Co. Ltd.   -     1,361,160  
             
Short-term loans $  1,268,130   $  2,571,080  

On October 20, 2010, TMK Shenzhen obtained a three-month loan in the amount of RMB 8,000,000 (or approximately $1,209,920) from Shenzhen Development Bank bearing interest at approximately 4.86% with maturity date on January 19, 2011. The loan was fully repaid in January 2011.

On November 22, 2010, Borou obtained a six-month term loan in the amount of RMB 9,000,000 (or approximately $1,361,160) from Industrial Bank Co., Ltd. bearing interest at 6.116% with maturity date on May 22, 2011, which had been fully paid off by the Company prior to June 30, 2011. This loan is borrowed under a line of credit in the amount of RMB 10,000,000 (approximately $1,512,400) that is available from November 19, 2010 to November 19, 2011. The unused line of credit amounted to $1,546,500 and $151,240 at June 30, 2011 and December 31, 2010, respectively.

On March 23, 2011, TMK Shenzhen entered into a credit agreement from DBS Bank (China) Limited Shenzhen Branch (“DBS”) to obtain a line of credit in the amount of RMB 10,000,000 (approximately $1,522,000) in the form of AR factoring. The loan bears interest at approximately 130% of the prevailing PRC prime rate (“prime rate”) at the time of the loan. Based on the loan agreement, each borrowing should be repaid within 165 days of invoice date. The agreement has not specified an expiration date. The loan proceeds of RMB 10,000,000 (approximately $1,522,000) were received in April, 2011, of which RMB 1,800,000 (or approximately $278,370) principle payment was made by the Company prior to June 30, 2011.