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CIK:0001172319|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Income Statement [Abstract]
Net Sales	$ 94,128,083	$ 104,496,008
Cost of Sales	(82,245,535)	(81,964,746)
GROSS PROFIT	11,882,548	22,531,262
General, selling and administrative expenses	(6,835,084)	(7,234,333)
Bad debt expense	(2,676,764)	(1,270,612)
TOTAL	(9,511,848)	(8,504,945)
INCOME FROM OPERATIONS	2,370,700	14,026,317
OTHER (EXPENSE) INCOME
Loss on debt conversion		(1,747,762)
Loss on investment		(4,320,000)
Other income	75,999	914,151
Interest expense, net	(795,308)	(1,130,187)
OTHER EXPENSE, NET	(719,309)	(6,283,798)
INCOME BEFORE INCOME TAXES	1,651,391	7,742,519
INCOME TAXES	(513,370)	(3,181,466)
NET INCOME	1,138,021	4,561,053
Basic & Diluted Weighted Average Shares	67,490,166	66,254,277
Basic & Diluted Earnings per Share	$ 0.02	$ 0.07
COMPREHENSIVE INCOME
Net Income	1,138,021	4,561,053
Foreign Currency Translation Adjustment	2,687,679	1,111,452
COMPREHENSIVE INCOME	$ 3,825,700	$ 5,672,505

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Dec. 31, 2011	Dec. 31, 2010
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
Net income	$ 1,138,021	$ 4,561,053
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	969,594	1,216,373
Amortization of intangible assets	360,246	366,635
Deferred finance costs amortized		255,231
Deferred tax benefits	(944,155)	(158,121)
Loss on debt conversion		1,747,762
Loss on investments		4,320,000
Bad debt provision	2,676,764	1,270,612
Inventory obsolescence	1,354,113	972,634
Change in assets and liabilities (Increase) decrease in assets:
Accounts receivable	(10,072,608)	(10,479,268)
Deposits and advances	(1,736,862)	(993,331)
Inventories	(8,764,188)	(384,574)
Deferred product costs	(1,056,329)	(801,449)
Other assets	410,836	(659,803)
Accounts payable	8,276,337	(389,287)
Bills payable	8,103,355	5,181,600
Accrued expenses and other payables	5,450,848	(2,547,261)
Taxes payable	(141,646)	1,642,383
Net cash provided by Operating Activities	6,024,326	5,121,189
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES
Capital expenditures	(1,205,467)	(890,403)
Acquisition deposit refunded (paid)	6,480,000	(10,800,000)
Net cash provided by (used in) Investing Activities	5,274,533	(11,690,403)
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES
Proceeds from bank loans	26,491,091	22,503,696
Repayment of bank loans	(21,782,298)	(14,012,956)
Increase in notes receivable	(12,883,238)	(6,186,110)
Proceeds from stockholder & related parties	(198,481)	3,053,582
Net cash provided by (used in) Financing Activities	(8,372,926)	5,358,212
Exchange rate effect on cash	113,862	(313,327)
Increase (decrease) in cash & equivalents	3,039,795	(1,524,329)
Cash & equivalents- beginning of year	2,461,453	3,985,782
Cash & equivalents- end of year	5,501,248	2,461,453
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for: Interest	1,278,569	1,025,410
Cash paid during the period for: Income taxes	1,478,283	3,963,163
Non cash transactions:
Debt conversion value		$ 17,542,774

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2011	Dec. 31, 2010
CURRENT ASSETS
Cash and equivalents	$ 5,501,248	$ 2,461,453
Accounts receivable – net of allowances	24,292,388	18,858,738
Notes receivable - short term, net of allowances	22,960,475	7,160,238
Deposits and advances	1,290,329	640,168
Prepaid expenses	2,856,661	1,722,036
Inventories, net of allowance	26,907,546	18,289,892
Deferred product costs	11,146,419	10,090,090
Deferred tax asset – current	1,334,491	811,935
Acquisition deposits		6,480,000
Other assets	1,469,303	1,603,979
TOTAL CURRENT ASSETS	97,758,861	68,118,529
Accounts receivable – long term, net of allowances	3,957,650
Notes receivable – long-term	255,196	3,096,083
Property, plant and equipment, net	8,713,173	8,682,032
Deferred tax asset – long term	421,599
Intangible assets, net	1,167,851	1,462,596
Goodwill	27,166,436	25,846,407
TOTAL ASSETS	139,440,766	107,205,647
CURRENT LIABILITIES
Accounts payable – trade	28,521,060	19,059,948
Bills payable	17,610,359	8,848,182
Accrued expenses and other payables	10,518,310	4,723,139
Short term bank loans	26,491,091	21,268,275
Taxes payable	387,970	507,323
Notes payable	2,779,109	2,779,109
Due to stockholders & related parties - current portion	2,948,299	2,899,058
TOTAL CURRENT LIABILITIES	89,256,198	60,085,034
NON-CURRENT LIABILITIES
Due to stockholders & related parties – long term portion	1,302,669	1,550,391
Long term bank loans	721,398	1,235,421
TOTAL LIABILITIES	91,280,265	62,870,846
COMMITMENTS & CONTINGENCIES
STOCKHOLDERS' EQUITY
COMMON STOCK - $0.001 par value; 200,000,000 shares authorized, 67,490,166 shares issued and outstanding	67,490	67,490
Additional paid-in capital	25,942,241	25,942,241
Statutory reserve	1,179,791	1,161,643
Retained earnings	15,233,420	14,113,547
Accumulated other comprehensive income	5,737,559	3,049,880
TOTAL STOCKHOLDERS' EQUITY	48,160,501	44,334,801
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 139,440,766	$ 107,205,647