v2.4.0.6

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net income	$ 774,507	$ 5,802,855
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	611,055	510,927
Change in assets and liabilities:
Accounts receivable	5,506,759	(5,415,406)
Prepaid expenses and other current assets	(1,022,362)	(175,984)
Inventories	(5,305,282)	(1,471,666)
Accounts payable and other liabilities	4,144,794	859,908
Customer deposits	(192,757)	118,963
Tax payable	(143,616)	1,436,638
Net cash provided by operating activities	4,373,098	1,666,235
Cash flows from investing activities:
Net proceeds from bank notes receivable	(247,162)
Deposit for construction in progress		(7,872,696)
Purchase of plant and equipment	(12,000,545)	(897,850)
Additions to land use rights		(887,587)
Restricted cash for issuance of bank notes payable	113,154	357,476
Net cash used in investing activities	(12,134,553)	(9,300,657)
Cash flows from financing activities:
Net proceeds from issuance of short term loan	3,668,804	5,621,385
Net proceeds from issuance of notes payable	(226,307)	(1,370,583)
Related party receivable	1,358,768	(649,956)
Related party payable	1,092,764	(558,750)
Proceeds from capital contributions	1,148,023	4,011,361
Net cash provided by financing activities	7,042,052	7,053,457
Net (decrease) increase in cash	(719,403)	(580,965)
Effect of exchange rate changes	31,403	45,610
Cash at beginning of period	1,084,204	1,619,559
Cash at end of period	396,204	1,084,204
Supplemental disclosure of cash flow information:
Interest paid	886,405	552,691
Income taxes paid	$ 348,849	$ 145,644

Increase (Decrease) In Prepaid Expense And Other Current Assets

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The cash outflow to acquire or the cash inflow from the repayment of an agreement for an unconditional promise by the maker to pay the entity (holder) a definite sum of money at a future date.

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Unrestricted cash available for day-to-day operating needs, for an entity that has cash equivalents, but does not aggregate cash equivalents with cash on the balance sheet.

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The effect of exchange rate changes on cash balances held in foreign currencies.

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