|                                                                                                                                                                                             |   | June 30, |        |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|-------------------|--------|
|                                                                                                                                                                                             |   | 2010          |        |   | 2009              |   |
|                                                                                                                                                                                             |   | Unaudited     |        |   |              |   |
| ASSETS                                                                                                                                                                                           |   |          |        |   |              |   |
| CURRENT      ASSETS:                                                                                                                                                                             |   |          |        |   |              |   |
| Cash                                                                                                                                                                                             |   | $             | 2,942,185   |   |              | $      | 98,839 |   |
| Deposit      in derivative hedge                                                                                                                                                                 |   |          | -           |   |              |   | 1,000,000 |   |
| Total      current assets                                                                                                                                                                        |   |          | 2,942,185   |   |              |   | 1,098,839 |   |
|                                                                                                                                                                                             |   |          |        |   |              |   |   |   |
| OTHER      ASSETS:                                                                                                                                                                               |   |          |        |   |              |   |   |   |
| Investments      in subsidiaries                                                                                                                                                                 |   |          | 325,803,762 |   |              |   | 290,640,043 |   |
| Deferred      loan expense, net                                                                                                                                                                  |   |          | -           |   |              |   | 1,955,778 |   |
| Deferred      tax assets                                                                                                                                                                         |   |          | 15,248,484  |   |              |   | 11,722,469 |   |
| Total      other assets                                                                                                                                                                          |   |          | 341,052,246 |   |              |   | 304,318,290 |   |
|                                                                                                                                                                                             |   |          |        |   |              |   |   |   |
| Total      assets                                                                                                                                                                                |   | $             | 343,994,431 |   |              | $      | 305,417,129 |   |
|                                                                                                                                                                                             |   |          |        |   |              |   |   |   |
| LIABILITIES AND SHAREHOLDERS'      EQUITY                                                                                                                                                        |   |          |        |   |              |   |   |   |
|                                                                                                                                                                                             |   |          |        |   |              |   |   |   |
| CURRENT      LIABILITIES:                                                                                                                                                                        |   |          |        |   |              |   |   |   |
| Notes      payable, current                                                                                                                                                                      |   | $             | -           |   |              | $      | 10,000,000 |   |
| Other      payables and accrued liabilities                                                                                                                                                      |   |          | 887,035     |   |              |   | 2,609,037 |   |
| Cross      currency hedge payable                                                                                                                                                                |   |          | -           |   |              |   | 436,702 |   |
| Total      current liabilities                                                                                                                                                                   |   |          | 887,035     |   |              |   | 13,045,739 |   |
|                                                                                                                                                                                             |   |          |        |   |              |   |   |   |
| LONG-TERM      LIABILITIES:                                                                                                                                                                      |   |          |        |   |              |   |   |   |
| Intercompany      payables                                                                                                                                                                       |   |          | 16,687,854  |   |              |   | 22,863,141 |   |
| Notes      payable, non-current                                                                                                                                                                  |   |          | -           |   |              |   | 25,000,000 |   |
| Fair      value of derivative instrument                                                                                                                                                         |   |          | -           |   |              |   | 7,532,527 |   |
| Total      long-term liabilities                                                                                                                                                                 |   |          | 16,687,854  |   |              |   | 55,395,668 |   |
|                                                                                                                                                                                             |   |          |        |   |              |   |   |   |
| Total      liabilities                                                                                                                                                                           |   |          | 17,574,889  |   |              |   | 68,441,407 |   |
|                                                                                                                                                                                             |   |          |        |   |              |   |   |   |
| COMMITMENTS      AND CONTINGENCIES                                                                                                                                                               |   |          |        |   |              |   |   |   |
|                                                                                                                                                                                             |   |          |        |   |              |   |   |   |
| SHAREHOLDERS'      EQUITY:                                                                                                                                                                       |   |          |        |   |              |   |   |   |
| Preferred      stock,$0.001 par value, 5,000,000 shares authorized, none issued or      outstanding as of June 30, 2010 and December 31, 2009                                                    |   |          | -           |   |              |   | - |   |
| Common      stock,$0.006 par value, 100,000,000 shares authorized, June 30, 2010:      37,518,595 shares issued and outstanding December 31, 2009: 29,772,780      shares issued and outstanding |   |          | 225,113     |   |              |   | 178,638 |   |
| Additional      paid in capital                                                                                                                                                                  |   |          | 164,829,350 |   |              |   | 105,540,676 |   |
| Statutory      reserves                                                                                                                                                                          |   |          | 19,511,407  |   |              |   | 16,282,793 |   |
| Retained      earnings                                                                                                                                                                           |   |          | 114,865,703 |   |              |   | 97,283,748 |   |
| Accumulated      other comprehensive income                                                                                                                                                      |   |          | 26,987,969  |   |              |   | 17,689,867 |   |
| Total      shareholders' equity                                                                                                                                                                  |   |          | 326,419,542 |   |              |   | 236,975,722 |   |
|                                                                                                                                                                                             |   |          |        |   |              |   |   |   |
| Total      liabilities and shareholders' equity                                                                                                                                                  |   | $             | 343,994,431 |   |              | $      | 305,417,129 |   |

----

|                                                           |   | Three months ended June 30, |       |   | Six months ended June 30, |   |
|----------------------------------------------------------------|--------|-------------------------------------------------|------------|--------|-----------------------------------------------|--------|
|                                                           |   | 2010                                            |       |   | 2009                                          |   |   | 2010 |   |   | 2009 |   |
|                                                           |   |                                            |       |   |                                          |   |   |   |   |   |   |   |
| OPERATING      EXPENSES                                        |   |                                            |       |   |                                          |   |   |   |   |   |   |   |
|                                                           |   |                                            |       |   |                                          |   |   |   |   |   |   |   |
| General      and administrative expenses                       |   | $                                               | 1,148,785  |   |                                          | $      | 1,088,297 |   |   | $ | 2,151,494 |   |   | $ | 2,100,821 |   |
| Total      operating expenses                                  |   |                                            | 1,148,785  |   |                                          |   | 1,088,297 |   |   |   | 2,151,494 |   |   |   | 2,100,821 |   |
|                                                           |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSE)                                    |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Interest      and other expense, net                           |   |                                            | 13,634     |   |                                          |   | (1,430,166 | ) |   |   | (444,422 | ) |   |   | (2,804,009 | ) |
| Loss      on cross currency hedge                              |   |                                            | -          |   |                                          |   | (215,964 | ) |   |   | (753,666 | ) |   |   | (382,374 | ) |
| Loss      on derivative instrument settlement                  |   |                                            | -          |   |                                          |   | - |   |   |   | (6,650,000 | ) |   |   | - |   |
| Loss      on debt extinguishment                               |   |                                            | -          |   |                                          |   | - |   |   |   | (2,395,778 | ) |   |   | - |   |
| Change      in derivative liability - warrants                 |   |                                            | -          |   |                                          |   | (688,876 | ) |   |   | - |   |   |   | (752,114 | ) |
| Change      in derivative liability - conversion option        |   |                                            | -          |   |                                          |   | (4,583,809 | ) |   |   | - |   |   |   | (5,122,846 | ) |
| Other      income (expense), net                               |   |                                            | 306,040    |   |                                          |   | - |   |   |   | 306,040 |   |   |   | - |   |
| Total      other income (expense), net                         |   |                                            | 319,674    |   |                                          |   | (6,918,815 | ) |   |   | (9,937,826 | ) |   |   | (9,061,343 | ) |
|                                                           |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| EQUITY      INCOME EARNINGS OF SUBSIDIARIES                    |   |                                            | 14,189,391 |   |                                          |   | 8,831,632 |   |   |   | 29,373,874 |   |   |   | 13,461,074 |   |
|                                                           |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| INCOME      BEFORE INCOME TAXES                                |   |                                            | 13,360,280 |   |                                          |   | 824,520 |   |   |   | 17,284,554 |   |   |   | 2,298,910 |   |
|                                                           |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| BENEFIT      FOR INCOME TAXES                                  |   |                                            | 79,529     |   |                                          |   | 738,180 |   |   |   | 3,526,015 |   |   |   | 2,364,707 |   |
|                                                           |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME                                                |   |                                            | 13,439,809 |   |                                          |   | 1,562,700 |   |   |   | 20,810,569 |   |   |   | 4,663,617 |   |
|                                                           |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      COMPREHENSIVE INCOME (LOSS):                        |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation adjustment                   |   |                                            | 1,890,314  |   |                                          |   | 433,866 |   |   |   | 1,765,575 |   |   |   | 39,957 |   |
| Change      in fair value of derivative instrument             |   |                                            | -          |   |                                          |   | (751,227 | ) |   |   | 882,527 |   |   |   | (3,513,356 | ) |
| Reclassification      of change in cash flow hedge to earnings |   |                                            | -          |   |                                          |   | - |   |   |   | 6,650,000 |   |   |   | - |   |
|                                                           |   |                                            |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE      INCOME                                      |   | $                                               | 15,330,123 |   |                                          | $      | 1,245,339 |   |   | $ | 30,108,671 |   |   | $ | 1,190,218 |   |

----

|                                                                   |   | 2010   |        |   | 2009   |   |
|------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| CASH      FLOWS FROM OPERATING ACTIVITIES:                             |   |   |        |   |   |   |
| Net      Income                                                        |   | $      | 20,810,569  |   |   | $      | 4,663,617 |   |
| Adjustments      to reconcile net income used in operating activities: |   |   |        |   |   |   |   |   |
| Equity      in earnings of subsidiaries                                |   |   | (29,373,874 | )      |   |   | (13,461,074 | ) |
| Deferred      taxes                                                    |   |   | (3,526,015  | )      |   |   | (2,364,707 | ) |
| Amortization      of loan commission                                   |   |   | 160,000     |   |   |   | 524,995 |   |
| Amortization      of stock compensation expense                        |   |   | 373,649     |   |   |   | 928,727 |   |
| Loss      on cross currency hedge                                      |   |   | 753,666     |   |   |   | 382,374 |   |
| Loss      on derivative instrument settlement                          |   |   | 6,650,000   |   |   |   | - |   |
| Loss      on debt extinguishment                                       |   |   | 2,395,778   |   |   |   | - |   |
| Change      in derivative liability - warrants                         |   |   | -           |   |   |   | 752,114 |   |
| Change      in derivative liability - conversion option                |   |   | -           |   |   |   | 5,122,846 |   |
| Change      in operating assets and liabilities:                       |   |   |        |   |   |   |   |   |
| Other      payables and accrued liabilities                            |   |   | (1,722,002  | )      |   |   | (1,866,167 | ) |
| Net      cash used in operating activities                             |   |   | (3,478,229  | )      |   |   | (5,317,275 | ) |
|                                                                   |   |   |        |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                             |   |   |        |   |   |   |   |   |
| Investment      in subsidiaries                                        |   |   | (4,024,270  | )      |   |   | (2,630,754 | ) |
| Payment      for unwind of cross currency hedge                        |   |   | (5,650,000  | )      |   |   | - |   |
| Payments      on cross currency hedge payable                          |   |   | (1,190,368  | )      |   |   | (114,580 | ) |
| Net      cash used in investing activities                             |   |   | (10,864,638 | )      |   |   | (2,745,334 | ) |
|                                                                   |   |   |        |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                             |   |   |        |   |   |   |   |   |
| Intercompany      payables                                             |   |   | (3,575,287  | )      |   |   | 5,255,842 |   |
| Change      in restricted cash                                         |   |   | -           |   |   |   | 1,000,000 |   |
| Payment      of high yield notes payable                               |   |   | (35,600,000 | )      |   |   | - |   |
| Proceeds      on issuance of common stock and warrants                 |   |   | 56,361,500  |   |   |   | 1,920,000 |   |
| Net      cash provided by financing activities                         |   |   | 17,186,213  |   |   |   | 8,175,842 |   |
|                                                                   |   |   |        |   |   |   |   |   |
| CHANGE      IN CASH                                                    |   |   | 2,843,346   |   |   |   | 113,233 |   |
|                                                                   |   |   |        |   |   |   |   |   |
| CASH,      beginning of period                                         |   |   | 98,839      |   |   |   | 30,414 |   |
|                                                                   |   |   |        |   |   |   |   |   |
| CASH,      end of period                                               |   | $      | 2,942,185   |   |   | $      | 143,647 |   |
|                                                                   |   |   |        |   |   |   |   |   |
| SUPPLEMENTAL      CASH FLOWS DISCLOSURE:                               |   |   |        |   |   |   |   |   |
| Interest      paid                                                     |   | $      | 1,343,849   |   |   | $      | 1,852,432 |   |

----

| 1. | Basis      of presentation |
|----|----------------------------|

| 2. | Restricted      Net Assets |
|----|----------------------------|

| 3. | Notes      payable consisted of the following: |
|----|------------------------------------------------|

|                                                                        |   | June 30, 2010 |   |   | December 31, 2009 |   |
|-----------------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------------|--------|
|                                                                        |   | (Unaudited)             |   |   |                        |   |
| Guaranteed      senior secured floating rate notes (“HY Notes”) |   |                    | -      |   |                        |   | 35,000,000 |   |
| Less      current portion                                                   |   |                    | -      |   |                        |   | 10,000,000 |   |
| Total      notes payable, noncurrent                                        |   | $                       | -      |   |                        | $      | 25,000,000 |   |

| 4. | Derivative      instrument |
|----|----------------------------|

----

----