Eternal Technologies (fka ETLT)

[genlou]

ORIENT PAPER, INC.
BALANCE SHEETS
AS OF JUNE 30, 2008, AND DECEMBER 31, 2007

ASSETS

2008 2007
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(Unaudited) (Audited)
Current Assets:
Cash and cash equivalents $ 2,434,236 $ 622,661
Accounts receivable-
Trade 942,525 1,111,157
Other 1,535 2,249
Less - Allowance for doubtful accounts -- --
Inventories 2,736,524 400,689
Prepaid expenses 250,000 --
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Total current assets 6,364,820 2,136,756
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Property, Plant, and Equipment:
Building and improvements 9,822,777 9,230,313
Machinery and equipment 45,220,671 33,444,574
Vehicles 541,700 509,027
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55,585,148 43,183,914
Less - Accumulated depreciation and amortization (10,670,604) (8,590,382)
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Net property, plant, and equipment 44,914,544 34,593,532
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Total Assets $ 51,279,364 $ 36,730,288
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LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
Short-term loans payable $ 6,751,833 $ 6,039,145
Current portion of related party note 2,692,784 2,530,368
Accounts payable and accrued expenses 7,598,778 572,590
Income taxes payable 1,302,865 851,279
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Total current liabilities 18,346,260 9,993,382
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Long-Term Debt, less current portion:
Related party note 3,430,743 3,223,817
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Total liabilities 21,777,003 13,217,199
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Commitments and Contingencies

Stockholders' Equity:
Common stock, 500,000,000 shares authorized, $0.001
par value per share, 45,101,987 shares issued and
outstanding in 2008 and 2007, respectively 45,102 40,102
Additional paid-in capital 9,565,117 9,070,117
Statutory earnings reserve 1,153,628 1,153,628
Accumulated other comprehensive income 4,576,728 2,291,187
Retained earnings 14,161,786 10,958,055
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Total stockholders' equity 29,502,361 23,513,089
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Total Liabilities and Stockholders' Equity $ 51,279,364 $ 36,730,288
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The accompanying notes to financial statements are an integral part of these balance sheets.
F-2