−Removed: Quantitative and Qualitative Disclosures About Market Risk.
−Removed: All of our long-term debt at year-end 2009 is at fixed interest rates and, therefore, is not affected by changes in interest rates before maturity.
−Removed: When our long-term debt instruments mature, we may refinance them at the existing market interest rates, which may be more or less than interest rates on the maturing debt.
−Removed: Certain cash and cash equivalents earn interest at variable rates and are affected by changes in interest rates.
−Removed: During the years ended December 31, 2009 and 2008, interest income amounted to $108,610 and $65,316, respectively.
−Removed: We do not believe the change in interest rate on our cash and cash equivalent accounts will result in any material market risk for the Company.
−Removed: We were not a party to any material derivative financial instruments in 2009 and 2008.
+Added: Quantitative and Qualitative Disclosures About Market
+Added: Foreign Exchange Risk
+Added: While our reporting
+Added: currency is the US dollar, almost all of our consolidated revenues and consolidated costs and expenses are denominated in RMB.
+Added: All of our assets are denominated in RMB except for some cash and cash equivalents and accounts receivables.
+Added: As a result, we are
+Added: exposed to foreign exchange risks as our revenues and results of operations may be affected by fluctuations in the exchange rate
+Added: between US dollar and RMB.
+Added: If the RMB depreciates against the US dollar, the value of our RMB revenues, earnings and assets as
+Added: expressed in our US dollar financial statements will decline.
+Added: We have not entered into any hedging transactions in an effort to
+Added: reduce our exposure to foreign exchange risk.
+Added: Although we are generally
+Added: able to pass along minor incremental cost inflation to our customers, inflation such as increases in the costs of our products
+Added: and overhead costs may adversely affect our operating results.
+Added: We do not believe that inflation in China has had a material impact
+Added: on our financial position or results of operations to date, however, a high rate of inflation in the future may have an adverse
+Added: effect on our ability to maintain current levels of gross margin and selling and distribution, general and administrative expenses
+Added: as a percentage of net revenues if the selling prices of our products do not increase in line with the increased costs.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.