v2.4.0.6

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 17,999,366	$ 14,985,369
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	1,035,306	1,001,047
Amortization of land use rights	950,106	453,854
Stock-based compensation		18,000
Deferred income taxes	32,315	31,199
Inventory reserve	(49,888)
Changes in assets and liabilities:
Inventories	6,788,897	12,448,477
Prepaid and other current assets	(1,552)	(51,009)
Prepaid VAT on purchases	(216,318)	451,588
Accounts payable	(3,308,380)	(514,110)
Accrued expenses	(824,949)	(602,869)
Other taxes payable	(605,141)	375,483
Income taxes payable	(4,489,414)	(7,893,083)
NET CASH PROVIDED BY OPERATING ACTIVITIES	17,310,348	20,703,946
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of land use rights	(21,737,065)	(31,373,071)
Purchase of property and equipment	(31,365)	(44,308)
NET CASH USED IN INVESTING ACTIVITIES	(21,768,430)	(31,417,379)
CASH FLOWS FROM FINANCING ACTIVITIES:
Decrease in cash - restricted	224,184	298,186
NET CASH PROVIDED BY FINANCING ACTIVITIES	224,184	298,186
EFFECT OF EXCHANGE RATE ON CASH	379,477	962,287
NET DECREASE IN CASH	(3,854,421)	(9,452,960)
CASH - beginning of period	54,287,373	47,670,666
CASH - end of period	50,432,952	38,217,706
Cash paid for:
Interest
Income taxes	$ 10,521,423	$ 12,906,529

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