SHORT TERM LOANS

6 Months Ended

Dec. 31, 2013

NOTE 8 - SHORT TERM LOANS

The short term loans include the following:

	December 31, 2013		June 30, 2013
a) Loans payable to Shanghai Pudong Development Bank	$	1,651,809	$	-

b) Loan payable to Dalian Bank Xigang Branch		3,303,618		3,258,815

c) Loan payable to Industrial and Commercial Bank of China		297,326		293,293

d) Loan payable to Jinzhou Bank		1,651,809		1,629,408

e) Loan payable to Dalian Bank Shenyang Branch		991,085		651,763

f) Loan payable to Dalian Bank Shanghai Branch		479,025		472,528

g) Loan payable to Yingkou Bank		1,651,809		1,629,408

h) Loan payable to China Merchant bank		825,904		814,704

i) Guangdong Development Bank		2,477,713		2,444,111

j) Loans payable to various unrelated parties		479,025		1,384,996

Total short term loans	$	13,809,123	$	12,579,026

Loan payable to Shanghai Pudong Development bank is a one-year term loan from July 3, 2013 to June 17, 2014 for RMB 1,000,000 ($1.65 million) at a variable interest rate based on the interest rate set by the People’s Bank of China. The effective rate is 7.2% per year. This loan has been guaranteed by the Company’s major stockholders, Mr. Guojun Wang and Ms. Ming Ma as well as Joint Venture Guarantee Group Co., LTD, an independent third party guarantee company.

Loan payable to Dalian Bank Xigang Branch is in the amount of RMB 20,000,000 ($3.30 million) for a one-year term from December 20, 2012 to December 19, 2013 with a fixed interest rate of 8.4% per year. On December 16, 2013, the loan was renewed with the due date on December 15, 2014. This loan has been guaranteed by an unrelated company, Dalian Huanbohai Development Credit Guaranty Company. The Company pledged its trademark for this loan.

Loan payable to Industrial and Commercial Bank of China was for a one-year term from September 20, 2012 to September 12, 2013, and was repaid on the due date. The Company obtained a new loan for the same amount from September 29, 2013 to August 28, 2014 at a variable interest rate based on the interest rate set by the People’s Bank of China. The effective rate is 7.28% per year. The Company pledged a real estate property owned by the Company’s major stockholder.

The Company obtained a loan from Jinzhou Bank in the amount of RMB 10,000,000 ($1.65 million) for a term from December 11, 2012 to December 10, 2013 with a fixed interest rate of 8.4% per year. The loan was repaid when it was due. The Company obtained a new loan for the same amount from November 18, 2013 to November 17, 2014 with a fixed interest rate of 8.4% per year. The Company pledged part of its advertising equipment with a carrying value of RMB 31 million (approximately $5.1 million).

The Company signed a loan agreement with Dalian Bank Shenyang Branch in the amount of RMB 6,000,000 ($991,085) for a term from June 19, 2013 to June 18, 2014 with a fixed interest rate of 8.1% per year. The Company drew down RMB 4,000,000 ($660,724) as of June 30, 2013 and drew down another RMB 2,000,000 in current quarter.

f)	Loan payable to Dalian Bank Shanghai Branch is in the amount of RMB 2,900,000 for a term from November 29, 2012 to November 27, 2013 with a fixed interest rate of 7.8% per year. One December 3, 2013, the loan was extended for one year, which is due on December 2, 2014, with the same interest rate.

Loan payable to Yingkou bank consisted of two loans. One loan in the amount of RMB 5,000,000 ($0.83 million) from May 22, 2013 to May 21, 2014 with a fixed interest rate of 7.8% per year. Another loan is in the amount of RMB5,000,000 ($0.83 million) from June 26, 2013 to June 25, 2014 with a fixed interest rate of 7.8% per year. Both loans have been guaranteed by Liaoning Baijia Financing Assurance Co.,Ltd, and one of the Company’s major stockholders, Ms. Ming Ma. In the guarantee contract, the Company pledged part of its advertising equipment to Liaoning Baijia Financing Assurance Co., Ltd.

Loan payable to China Merchant bank is a one-year term loan in amount of RMB 5,000,000 ($0.83 million) from May 30, 2013 to May 30, 2014 with a fixed interest rate of 7.8% per year. The Company pledged part of its advertising equipment with an approximate carrying value of RMB 12.1 million (approximately $1.98 million).

Loan payable to Guangdong Development Bank is a one-year term loan from May 9, 2013 to May 8, 2014 in amount of RMB15,000,000 ($2.47 million) with a fixed interest rate of 7.8% per year. This loan has been guaranteed by Dalian Enterprise Credit Guarantee Co., LTD and the Company’s major stockholders, Mr. Guojun Wang and Ms. Ming Ma. In the guarantee contract, the Company pledged part of its advertising equipment to Dalian Enterprise Credit Guarantee Co., LTD.

j)	The Company had $0.48 million and $1.38 million of loans from outside unrelated parties as of December 31, 2013 and June 30, 2013, respectively. The due date of the loan is December 2, 2014.

- Definition

The entire disclosure for short-term debt.

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