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Related Party Transactions
 6 Months Ended
Jun. 30, 2011
Related Party Transactions
(8) Related Party Transactions

Mr. Zhenyong Liu is the director, principal stockholder and chief executive officer of the Company.  He loaned money to HBOP for working capital purposes over a period of time.  As of June 30, 2011 and December 31, 2010, net amount due to Mr. Liu were $2,259,928 and $2,209,068, respectively.

The loan of Mr. Liu is interest bearing and the interest rate is equal to the rate established by the People’s Bank of China, which was 5.85% and 5.85% per annum as of June 30, 2011 and December 31, 2010.  The term is for 3 years and starts from January 1, 2010.

On August 1 and August 5, 2008, two members of the Board of Directors of HBOP loaned money to the Company for working capital purposes.  The amounts owed bear interest equal the rate established by the People’s bank of China and are due on July 31 and August 4, 2011, respectively.  As of June 30, 2011 and December 31, 2010, the total loan amount payable was $2,088,813 and $2,041,804, respectively.  The interest rate as of June 30, 2011 and December 31, 2010 was 5.85% and 5.85% per annum, respectively.See Note (19), Subsequent Events, for information of repayments of both loans in August 2011.

The interest expenses incurred for above related party loans were $63,485 and $55,525 for the three months ended June 30, 2011 and 2010, while the interest expenses were $125,865 and $111,030 for the six months ended June 30, 2011 and 2010.