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RELATED PARTY TRANSACTIONS
 6 Months Ended
Jun. 30, 2011
RELATED PARTY TRANSACTIONS [Text Block]

NOTE 7: RELATED PARTY TRANSACTIONS

The related parties consist of the following:

Wu, Henian CEO, Chairman & Shareholder
Wang, Zongfu Director (since inception of the Company) & Shareholder
Yu, Zhengfei Wang, Zongfu’s wife
Liu, Xiangjun General Manager
Huang, Junbiao Director (since inception of the Company) & Shareholder
Q-Lite Industrial Co., Ltd. Yu, Zhengfei holds 25% of ownership
Liu, Jun Sales Manager

Due from related parties

Due from related parties consists of the following:

    June 30, 2011     December 31, 2010  
Q-Lite Industrial Co., Ltd $  65,139   $  -  
Liu, Xiangjun   -     2,269  
Total $  65,139   $  2,269  

The receivable from Q-Lite industrial Co., Ltd. represents a trade receivable of products sold to Q-Lite industrial Co., Ltd. during the quarter ended June 30, 2011.

The receivable from Mr. Liu, Xiangjun represents advance to her for regular business expense paid by her on behalf of the Company. The amount is non-secured, non-interest bearing, and is considered to be short-term. The due from balance was repaid during the first quarter of 2011 and no loans to Liu, Xiangjun are outstanding at June 30, 2011.

Due to related parties

Due to related party consists of the following:

    June 30, 2011     December 31, 2010  
Q-Lite Industrial Co., Ltd $  -   $  4,474  
Wu, Henian   922,680     902,335  
Wang, Zongfu   384,486     376,008  
Huang, Junbiao   190,903     186,692  
Liu, Jun   15,606     15,606  
             
Total $  1,513,675     1,485,115  

During 2010, the Company borrowed $1,465,035 from Mr. Wu, Henian, Mr. Wang, Zongfu and Mr. Huang, Junbiao to support its operational funding needs. There was no formal agreement between the Company and those parties, the borrowing bears no interests and will be due on demand agreed by the related parties.