SHORT-TERM BORROWINGS

9 Months Ended

Sep. 30, 2011

6.	SHORT-TERM BORROWINGS

The Company has a line of credit for RMB10,000,000 (USD1,574,620 at December 31, 2010 and USD1,566,350 at September 30, 2011) with a commercial bank in the PRC to finance its working capital. The credit line bears interest at a variable rate and is due on June 15, 2012. Any outstanding loan balance must be repaid before annual renewal. Average interest rates for the nine months ended September 30, 2011 and 2010 were 6.94% and 5.84%, respectively. Pursuant to the terms of the agreement, the line of credit is secured by BTL’s building (see Note 4) and guaranteed by BDL and an officer of the Company.