Since the Company’s inception, the age of account receivables have been less than one year indicating that the Company is subject to minimal risk from credit extended to customers.

The Company is subject to interest rate risk when its short term loans become due and require refinancing.

The Company’s top ten customers accounted for 90.10% and 98.68% of its revenue for the nine months ended September 30, 2011 and 2010, respectively. During those same periods, four and five individual customers each accounted for greater than 10% of the Company’s revenues, respectively.

The Company’s top ten vendors accounted for 84.79% and 90.93% of its cost for the nine months ended September 30, 2011 and 2010, respectively. During those same periods, two and four individual vendors each accounted for greater than 10% of the Company’s purchases, respectively.

The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by changes in the political, economic, and legal environments in the PRC.

The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.

Management monitors changes in prices levels. Historically inflation has not materially impacted the Company’s financial statements; however, significant increases in the price of raw materials and labor that cannot be passed on to the Company’s customers could adversely impact the Company’s results of operations.