v2.4.0.8

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 13,127,611	$ 17,999,366
Adjustments to reconcile net income from operations to net cash (used in) provided by operating activities:
Depreciation	1,119,494	1,035,306
Amortization of land use rights	2,048,816	950,106
Inventory reserve		(49,888)
Deferred income taxes	32,679	32,315
Changes in assets and liabilities:
Accounts receivable	(9,275,511)
Inventories	(5,531,570)	6,788,897
Prepaid and other current assets	9,015	(1,552)
Prepaid VAT on purchases		(216,318)
Accounts payable	(437,546)	(3,308,380)
Accrued expenses	(960,721)	(824,949)
VAT and other taxes payable	(3,360,721)	(605,141)
Income taxes payable	(4,305,437)	(4,489,414)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	(7,533,891)	17,310,348
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of land use rights	(21,801,976)	(21,737,065)
Purchase of property and equipment	(560,595)	(31,365)
NET CASH USED IN INVESTING ACTIVITIES	(22,362,571)	(21,768,430)
CASH FLOWS FROM FINANCING ACTIVITIES:
Decrease in cash - restricted	940	224,184
NET CASH PROVIDED BY FINANCING ACTIVITIES	940	224,184
EFFECT OF EXCHANGE RATE ON CASH	773,297	379,477
NET DECREASE IN CASH AND CASH EQUIVALENTS	(29,122,225)	(3,854,421)
CASH AND CASH EQUIVALENTS - beginning of period	52,160,008	54,287,373
CASH AND CASH EQUIVALENTS - end of period	23,037,783	50,432,952
Cash paid for:
Interest
Income taxes	$ 8,670,414	$ 10,521,423

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