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DUE TO A RELATED PARTY AND RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2011
DUE TO A RELATED PARTY AND RELATED PARTY TRANSACTIONS

NOTE 8 – DUE TO A RELATED PARTY AND RELATED PARTY TRANSACTIONS

 

Related party transactions consist of the following:

 

    Years ended December 31,  
      2011       2010       2009  
Purchase of raw materials from a related party:                        
-Shouguang Hongye Trading Company Limited (Note (a))   $ -     $ 3,628,986   $ -  

 

Note (a) - Mr. Zhi Yang, a shareholder and son of the Chairman of the Company, had a 10% equity interest in Shouguang Hongye Trading Company Limited (“Hongye”) for the period from August 4, 2010 to December 2, 2010.  Since December 2, 2010, Mr. Zhi Yang has not had any ownership interest in Hongye.  Hongye is one of the major suppliers to the Company of sulfur, raw coal and various chemicals for the production of bromine and chemical products.  The outstanding payables to Hongye, which were included in accounts payable as at December 31, 2010, amounted to $1,146,810.  The products were sold to the Company by Hongye at market prices.

 

During the fiscal year 2011, the Company borrowed a sum of $7,823,475, and fully repaid later during the same year, from Jiaxing Lighting Appliance Company Limited (“Jiaxing Lighting”), in which Mr. Ming Yang, a shareholder and the Chairman of the Company, had a 100% equity interest in Jiaxing Lighting. The amounts due to Jiaxing Lighting were unsecured, interest free and repayable on demand.