12.	Short term bank loans and banking facilities

Short term bank loans

Short term bank loans consist of the following (unaudited):

	As of
	June 30,		December 31,
	2011		2010

Trade finance loans bearing interest capped at the PRC prime rate plus 5%, payable to Industrial and Commercial Bank of China Limited (“ICBC”), respective banking facilities secured by floating charges on the Group’s accounts receivable	$	-	$	606,816

Trade finance loans bearing interest capped at the PRC prime rate plus 5%, payable to ICBC, respective banking facilities secured by floating charges on the Group’s accounts receivable and corporate guarantee		2,359,403		925,393

7.965% loan payable to Quanzhou City Commercial Bank, respective banking facilities secured by personal and corporate guarantees		-		227,556

9.465% loan payable to Quanzhou City Commercial Bank, respective banking facilities secured by personal and corporate guarantees		232,072		-

6.394% loan payable to ICBC, respective banking facilities secured by the pledge on the Group’s land use rights and buildings		1,237,720		-

	$	3,829,195	$	1,759,765

Banking facilities

As of June 30, 2011 and December 31, 2010, the Group had general banking facilities for trade finance loans, bank loans and bills payable.

As of June 30, 2011 and December 31, 2010, the Group had trade finance loans amounting to $2,359,403 and $1,532,209, respectively by pledging accounts receivable balances with ICBC for collateralized short term bank loans.

The average bank loans were approximately $3.7 million and $2.2 million for the three months ended June 30, 2011 and 2010, respectively and the weighted average interest rates are approximately 6.7 % and 4.4%, respectively.

The average bank loans were approximately $3.6 million and $2.2 million for the six months ended June 30, 2011 and 2010, respectively and the weighted average interest rates are approximately 5.8% and 7.1%, respectively.

The Group’s general banking facilities are detailed as follows (unaudited):

	As of				As of				As of
	June 30,		December 31,		June 30,		December 31,		June 30,		December 31,		Repayable
	2011		2010		2011		2010		2011		2010		terms
	Available		Available		Utilized		Utilized		Unutilized		Unutilized
Bills payable	$	2,862,226	$	1,213,631	$	577,860	$	56,130	$	2,284,366	$	1,157,501	(a)

Bank loans		4,448,055		3,701,575		3,829,195		1,759,765		618,860		1,941,810	(b)

	$	7,310,281	$	4,915,206	$	4,407,055	$	1,815,895	$	2,903,226	$	3,099,311

(a)

Bills payable are repayable within one year and non-interest bearing. As of June 30, 2011 and December 31, 2010, these banking facilities were secured by the restricted cash of the Group.

(b)

Bank loans are repayable within one year and interest-bearing. As of June 30, 2011 and December 31, 2010, these banking facilities were secured by (i) floating charges on the Group’s accounts receivable; (ii) the Group’s land use rights and buildings; (iii) personal guarantees and (iv) corporate guarantees.