NOTES PAYABLE	12 Months Ended
Dec. 31, 2011
NOTES PAYABLE
NOTES PAYABLE	NOTE 7 - NOTES PAYABLE On July 2, 2009, the Company entered into a revolving line of credit with a bank, with the related note payable bearing interest at an annual rate of 5.31% and collateralized by certain land use rights, buildings, machinery and equipment. The revolving line of credit was paid in full during the third quarter of fiscal 2010. On September 30, 2010, the Company entered into a new revolving line of credit with a bank in the amount of RMB 25,000,000 (approximately $3,800,000), with the related note payable bearing interest at a base rate equal to the PRC's floating six-month to one year rate of 5.56% plus an additional 10% of the base rate, with a resulting rate of 6.12% at December 31, 2010. Advances on the line of credit are due one year from the date of the advance, with the note payable collateralized by certain land use rights and buildings. On October 26, 2011 the Company renewed the underlying note with the same bank. The new note bears interest at a base rate equal to the PRC's floating six-month to one year rate of 6.56% plus an additional 15% of the base rate, with a resulting rate of 7.54% at December 31, 2011. Advances on the line of credit are due one year from the date of the advance and collateralized by certain land use rights and buildings. The outstanding balance due under the revolving line of credit was RMB 25,000,000 ($3,931,745) at December 31, 2011. This amount has been classified as short-term notes payable in the accompanying consolidated balance sheet at December 31, 2011. The Company has no additional amounts available to it under the line of credit. Fair Value of Notes Payable - Based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities, the carrying amounts of notes payable outstanding at December 31, 2011 and 2010 approximated their fair value because of the immediate or short-term maturity of these financial instruments or because the underlying instruments bear interest rates that approximated current market rates.

NOTE 7 - NOTES PAYABLE

On July 2, 2009, the Company entered into a revolving line of credit with a bank, with the related note payable bearing interest at an annual rate of 5.31% and collateralized by certain land use rights, buildings, machinery and equipment. The revolving line of credit was paid in full during the third quarter of fiscal 2010.

On September 30, 2010, the Company entered into a new revolving line of credit with a bank in the amount of RMB 25,000,000 (approximately $3,800,000), with the related note payable bearing interest at a base rate equal to the PRC's floating six-month to one year rate of 5.56% plus an additional 10% of the base rate, with a resulting rate of 6.12% at December 31, 2010. Advances on the line of credit are due one year from the date of the advance, with the note payable collateralized by certain land use rights and buildings. On October 26, 2011 the Company renewed the underlying note with the same bank. The new note bears interest at a base rate equal to the PRC's floating six-month to one year rate of 6.56% plus an additional 15% of the base rate, with a resulting rate of 7.54% at December 31, 2011. Advances on the line of credit are due one year from the date of the advance and collateralized by certain land use rights and buildings. The outstanding balance due under the revolving line of credit was RMB 25,000,000 ($3,931,745) at December 31, 2011. This amount has been classified as short-term notes payable in the accompanying consolidated balance sheet at December 31, 2011. The Company has no additional amounts available to it under the line of credit.

Fair Value of Notes Payable - Based on the borrowing rates currently available to the Company for bank loans with similar terms and maturities, the carrying amounts of notes payable outstanding at December 31, 2011 and 2010 approximated their fair value because of the immediate or short-term maturity of these financial instruments or because the underlying instruments bear interest rates that approximated current market rates.