Harbin Electric (HRBN)

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Hi! 110 Employees. Here is some text from the 10-QSB

"The employee pension in Harbin generally includes two parts: (a) 20% of the employee's actual salary in the prior year, to be paid by the Company; provided, that, if the average salary falls below $1,165 for each employee, $1,165 per employee will be used as the basis; and (b) 8% of the employee's actual salary in the prior year, to be paid by the employee, subject to the same minimum requirement. The Company made no contributions of employment benefits, including pension in the six month periods ended June 30, 2004 and June 30, 2005. The Company agreed with the local authorities to commence these contributions in
2005."

If I'm reading this right, the average salary is not necessarily $1,165 per year. However, if they chose the $1,165 figure, the average salary might be somewhere near that figure.

If we assume $1,500 per year * 110 employees = $165,000 per year or $41,250 per quarter for salaries.

Does that sound right?

T