PREPAID LAND LEASES	9 Months Ended
Sep. 30, 2011
PREPAID LAND LEASES	NOTE 4 – PREPAID LAND LEASES The Company prepaid for land leases with lease terms for periods ranging from twenty to fifty years to use the land on which the office premises, production facilities and warehouses of the Company are situated. The prepaid land lease is amortized on a straight line basis. During the three-month period ended September 30, 2011, amortization of prepaid land lease totaled $159,735, which was recorded as cost of net revenue. During the three-month period ended September 30, 2010, amortization of prepaid land lease totaled $29,056, of which $28,908 and $148 were recorded as cost of revenue and administrative expenses respectively. During the nine-month period ended September 30, 2011, amortization of prepaid land lease totaled $262,567, which was recorded as cost of net revenue. During the nine-month period ended September 30, 2010, amortization of prepaid land lease totaled $75,436, of which $74,994 and $442 were recorded as cost of net revenue and administrative expenses respectively. The Company has the rights to use certain parcels of land located in Shouguang, the PRC, through lease agreements signed with local townships. Such parcels of land are collectively owned by local townships and accordingly, the Company could not obtain land use rights certificates on these parcels of land. The parcels of land of which the Company could not obtain land use rights certificates covers a total of approximately 94.64 square kilometers of aggregate carrying value of $921,501 and approximately 92.32 square kilometers of aggregate carrying value of $743,275 as at September 30, 2011 and December 31, 2010, respectively.

NOTE 4 – PREPAID LAND LEASES

The Company prepaid for land leases with lease terms for periods ranging from twenty to fifty years to use the land on which the office premises, production facilities and warehouses of the Company are situated. The prepaid land lease is amortized on a straight line basis.

During the three-month period ended September 30, 2011, amortization of prepaid land lease totaled $159,735, which was recorded as cost of net revenue. During the three-month period ended September 30, 2010, amortization of prepaid land lease totaled $29,056, of which $28,908 and $148 were recorded as cost of revenue and administrative expenses respectively. During the nine-month period ended September 30, 2011, amortization of prepaid land lease totaled $262,567, which was recorded as cost of net revenue. During the nine-month period ended September 30, 2010, amortization of prepaid land lease totaled $75,436, of which $74,994 and $442 were recorded as cost of net revenue and administrative expenses respectively.

The Company has the rights to use certain parcels of land located in Shouguang, the PRC, through lease agreements signed with local townships. Such parcels of land are collectively owned by local townships and accordingly, the Company could not obtain land use rights certificates on these parcels of land. The parcels of land of which the Company could not obtain land use rights certificates covers a total of approximately 94.64 square kilometers of aggregate carrying value of $921,501 and approximately 92.32 square kilometers of aggregate carrying value of $743,275 as at September 30, 2011 and December 31, 2010, respectively.