NOTE 9. SHORT-TERM LOANS

Short-term loans consisted of the following:

	December 31,		December 31,
	2014		2013

Bank loan payable to Agriculture Development Bank of China, bearing interest at the prime rate based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of December 31, 2014 and December 31, 2013 were 6.00% and the pass-due interest rate was 7.8%. The term of the loan started from August 14, 2012 with maturity date on August 13, 2013. The loan was obtained by Taizihu and pledged by its buildings and land use right. On July 31, 2013 the loan was repaid for $66,075 (or RMB400,000). As of December 31, 2014, the loan balance was $2,353,093 (or RMB14,600,000). As of the date of this filing, the Company has been in negotiation with the lender on renewal of the loan. The Company is not currently able to predict the probability of the success on the renewal and will repay the loan immediately if the loan cannot be renewed.	$	2,353,093	$	2,411,748

Bank loan payable to Agriculture Development Bank of China, bearing interest at the prime rate, based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of December 31, 2014 and December 31, 2013 were 6.0% and the pass-due interest rate was 7.8%. The term of the loan started from September 18, 2012 with maturity date on September 17, 2013. The loan was obtained by Taizihu and pledged by its buildings and land use right. As of the date of this filing, the Company has been in negotiation with the lender on renewal of the loan. The Company is not currently able to predict the probability of the success on the renewal and will repay the loan immediately if the loan cannot be renewed.		1,450,537		1,486,694

Bank loan payable to Jinzhong City Yuci District Rural Credit Union Co., Ltd., bearing interest at a fixed rate of prime rate plus 145% of prime rate, of which prime rate was based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of December 31, 2014 were 14.688%. The renewed term of the loan started from September 12, 2014 with maturity date on September 11, 2015. The loan was obtained by JinzhongYongcheng and guaranteed by YuciJinmao Food Processing Factory, a related party, for a period of two years starting from September 17, 2015.		1,369,951		-

Bank loan payable to Jinzhong City Yuci District Rural Credit Union Co., Ltd., bearing interest at a fixed rate of prime rate plus 145% of prime rate, of which prime rate was based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of December 31, 2014 were 14.688%. The renewed term of the loan started from September 12, 2014 with maturity date on September 11, 2015. The loan was obtained by JinzhongYuliang and guaranteed by YuciJinmao Food Processing Factory, a related party, for a period of two years starting from September 17, 2015.		1,369,951		-

Bank loan payable to Agriculture Development Bank of China, bearing interest at the prime rate, based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rate as of December 31, 2014 was 6.0% and the pass-due interest rate was 7.8%. The term of the loan started from January 4, 2013 with maturity date on January 3, 2014. The loan was obtained by Taizihu and pledged by its buildings and land use right. As of the date of this filing, the Company has been in negotiation with the lender on renewal of the loan. The Company is not currently able to predict the probability of the success on the renewal and will repay the loan immediately if the loan cannot be renewed.		725,269		743,347

Bank loan payable to Bank of Communications Gongzhufensubbranch, bearing interest at a fix rate of prime rate, of which prime rate was based on one-year loan interest rate released by The People's Bank of China. The term of the loan started from December 15, 2013 with maturity date on December 16, 2014. The loan was obtained by Detian Yu. The loan was paid off on December 25, 2014.		-		14,867

Bank loan payable to Jinzhong City Yuci District Rural Credit Union Co., Ltd., bearing interest at a fixed rate of prime rate plus 130% of prime rate, of which prime rate was based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of June 30, 2014 were 15.084%. The term of the loan started from September 6, 2013 with maturity date on August 22, 2014. The loan was obtained by JinzhongYongcheng and guaranteed by YuciJinmao Food Processing Factory, a related party, for a period of two years starting from August 23, 2014. The loan was paid off on September 11, 2014.		-		1,404,100

Bank loan payable to Jinzhong City Yuci District Rural Credit Union Co., Ltd., bearing interest at a fixed rate of prime rate plus 130% of prime rate, of which prime rate was based on six-month to one-year loan interest rate released by The People's Bank of China. The actual interest rates as of June 30, 2014 were 15.084%. The term of the loan started from September 6, 2013 with maturity date on August 22, 2014. The loan was obtained by JinzhongYongcheng and guaranteed by YuciJinmao Food Processing Factory, a related party, for a period of two years starting from August 23, 2014. The loan was paid off on September 11, 2014.		-		1,404,100

Total	$	7,268,801	$	7,464,856