v2.3.0.11
Concentration of credit risk and major customers and suppliers
 6 Months Ended
Jun. 30, 2011
Concentration of credit risk and major customers and suppliers
3.
Concentration of credit risk and major customers and suppliers

Financial instruments which potentially expose the Group to concentrations of credit risk consist of cash and accounts receivable as of June 30, 2011 and December 31, 2010. The Group performs ongoing evaluations of its cash position and credit evaluations to ensure collections and minimize losses.

As of June 30, 2011 and December 31, 2010, the Group’s bank deposits and restricted cash of $18,674,684 and $13,085,032 were all placed with banks in the PRC and are not covered by insurance. The Group has not experienced any losses in such accounts and believes that the risk of loss for cash held in banks is remote.

For the three and six months ended June 30, 2011 and 2010, all of the Group’s sales and purchases arose in the PRC. In addition, all accounts receivable and accounts payable as of June 30, 2011 and December 31, 2010 also arose in the PRC.
 
Details of customers accounting for 10% or more of the Group’s accounts receivable are as follows (unaudited):

   
As of
  
   
June 30,
    
December 31,
  
   
2011
    
2010
  
                         
Customer A
   $ 5,596,340       18 %   $ 3,393,885       14 %
Customer B
     3,669,608       12 %     3,310,942       14 %
Customer C
     3,279,981       11 %     *       *  
Customer D
     *       *       2,264,167       10 % 
 
Details of the customers accounting for 10% or more of the Group’s revenue are as follows (unaudited):

 
Three months ended June 30,
  
Six months ended June 30,
  
 
2011
  
2010
  
2011
  
2010
  
                                         
Customer A
   $ 5,742,542       20 %   $ 2,517,296       11 %   $ 11,847,697       19 %   $ 5,349,658       11 %
Customer B
     3,835,013       13 %     2,485,400       11 %     7,889,874       13 %     5,667,081       12 %
Customer C
     3,371,902       11 %     *       *       6,654,568       11 %     *       *  

Details of the suppliers accounting for 10% or more of the Group’s total purchases are as follows (unaudited):

   
Three months ended June 30,
    
Six months ended June 30,
  
   
2011
    
2010
    
2011
    
2010
  
                                                 
Supplier A
   $ *       *     $ 1,964,524       13 %   $ 6,359,865       17 %   $ 3,598,424       12 %
Supplier B
     *       *       *       *       *       *       3,563,417       12 %
Supplier C
     *       *       2,171,816       14 %     *       *       *       *  
Supplier D
     *       *       1,831,445       12 %     *       *       3,873,562       13 %
Supplier E
     *       *       1,831,599       12 %     *       *       4,185,051       14 %
Supplier F
     2,620,565       14 %     *       *       *       *       *       *  
Supplier G
     2,389,645       13 %     *       *       *       *       *       *  
Supplier H
     1,860,892       10 %     *       *       *       *       *       *  
Supplier I
     *       *       *       *       3,897,033       10 %     *       *  
 *Less than 10%