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Related Party Transactions
9 Months Ended
Sep. 30, 2011
Related Party Transactions
(8) Related Party Transactions

Mr. Zhenyong Liu is a 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 September 30, 2011 and December 31, 2010, net amount due to Mr. Liu were $2,286,283 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 September 30, 2011 and December 31, 2010.  The loan is due January 1, 2013 and accordingly has been classified as a long-term liability at September 30, 2011 and December 31, 2010, respectively.

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 were due on July 31 and August 4, 2011, respectively.  As of December 31, 2010, the total loan amount payable was $2,041,804.  The interest rate as of December 31, 2010 was 5.85% per annum.  The Company paid off the loan balance to both directors of HBOP by August 4, 2011.

The interest expenses incurred for the above related party loans were $44,057 and $55,963 for the three months ended September 30, 2011 and 2010, while the interest expenses were $169,923 and $166,993 for the nine months ended September 30, 2011 and 2010.