the decline in the asp appears to be a result of the economic slowdown throughout china , as manufacturing activities contracted due to the debt and fiscal crisis in europe as well as the chinese government 's effort to cool off the domestic construction activities . we believe the asp for the corrugating medium paper may not fundamentally improve until the chinese government announces new economic policies to stimulate domestic economy and consumer spending . we launched the new 360,000 tonnes/year corrugating medium pm6 in december 2011. we are in the process of ramping up the new production line pm6 . for the year of 2012 , we sold 175,758 tonnes of corrugating medium produced by the new production line . quantities sold from the commencement to december 2012 are as follows . 35 offset printing paper revenue from offset printing paper amounted to $ 49,100,091 ( or 33.88 % of total offset printing paper and corrugating medium paper revenue ) for the year ended december 31 , 2012 , which represents a $ 49,384,251 ( or 50.14 % ) decrease from the offset printing paper revenue of $ 98,484,342 for the comparable period in 2011. we sold 67,564 tonnes of offset printing paper in the year ended december 31 , 2012 compared to 122,320 tonnes of offset printing paper in the comparable period in year 2011 , a decrease of 54,756 tonnes or 44.76 % . we believe that the factors contributing to the decrease in both total quantity and dollar amount sold in the year ended december 31 , 2012 include ( 1 ) a softening demand for printing paper in our region , possibly due to a slowdown of the economy , ( 2 ) the decrease in asp for offset printing paper products from $ 805/tonne in the year ended december 31 , 2011 to $ 727/tonne in the year ended december 31 , 2012 , representing a decrease of 9.69 % , ( 3 ) the suspension of offset printing paper trading activities due to shrinking profit margin since january 2012 , as explained above , and ( 4 ) production interruption in the second and third quarters of 2012 because of the water treatment plant malfunction and the installation of new boilers . gross revenue from trading of offset printing paper finished goods is $ 121,618 ( or 157 tonnes ) for the year ended december 31 , 2012 , representing 0.25 % of total sales revenue of offset print paper for the current year , while gross revenue from trading of offset printing paper finished goods was $ 25,625,731 ( or 31,795 tonnes ) for the previous year in 2011 and accounted for 26.02 % of the gross revenue of offset printing paper for 2011. revenue of digital photo paper revenue generated from selling digital photo paper was $ 6,188,014 ( or 4.09 % of total revenue ) for the year ended december 31 , 2012 , a decrease of $ 2,061,186 or 24.99 % from $ 8,249,200 ( or 5.47 % of total revenue ) for the year ended december 31 , 2011. when comparing to the year ended december 31 , 2011 , the asp of our digital photo paper decreased from $ 4,026/tonne to $ 3,858/tonne . we sold 1,604 tonnes of digital photo paper in the year ended december 31 , 2012 , as compared to 2,049 tonnes in the same period a year ago . as there are increasingly more residential buildings and residents living in the surrounding areas of our digital photo paper plant , we have been under increasing pressure since october 2012 by local residents and from government urban planning officials to minimize our operations during night time , which resulted in a curtailment of our production schedule . digital photo paper produced in the fourth quarter of 2012 was 229.07 tonnes , versus 486.31 tonnes in the comparable quarter in 2011 , representing a 52.90 % quarterly decline . besides the reduced production in the fourth quarter of 2012 , the 21.72 % year-over-year decline in quantity sold and the 4.17 % year-over-year decline in asp , which appears to be a result of softening customer demand due to the slowdown in the economy . we believe the market demand and the asp may not fully recover until the first half of year 2013 , or until fundamental changes in the prc domestic economy take place . we currently produce glossy and semi-matte photo paper in various weights ( from 120g/m 2 to 260g/m 2 ) . because of the depressed domestic economy , we believe there will still be market pricing pressure on digital photo paper in the near future . digital photo paper products ' monthly asps , monthly sales quantity ( in tonnes ) and monthly sales revenue for the 24 months from january 2011 to december 2012 are summarized as follows : 36 cost of sales corrugating medium paper and offset printing paper total cost of sales for corrugating medium paper and offset printing paper for the year ended december 31 , 2012 was $ 119,312,122 , an increase of $ 7,005,486 or 6.24 % from $ 112,306,636 for the comparable period in 2011. the net increase in total corrugating medium and offset printing paper cost of sales in 2012 appears to be primarily due to the increase in the total quantity of paper sold in 2012 ( 322,064 tonnes ) versus in 2011 ( 230,494 tonnes ) . as explained above , total sales revenue ( excluding revenue from sales of digital photo paper ) increased from $ 142,498,116 in the year ended december 31 , 2011 to $ 144,928,792 in the comparable period in year 2012 , representing a 1.71 % year-over-year increase . story_separator_special_tag there is currently no binding agreement between us and hebei fangsheng in connection with the potential sale . in november 2012 , hebei fangsheng provided us with a payment of $ 1,075,606 earnest money deposit payment to proceed with discussion . the earnest money deposit would be refunded to hebei fangsheng in the event that the parties fail to reach an agreement on the terms of the potential sale . we intend to pursue negotiations with respect to the potential sale on an arm 's length basis with hebei fangsheng , and will only consummate such potential sale on terms that will be not less advantageous to us than as if hebei fangsheng were an independent , unaffiliated party . we will only enter into legally binding agreements with hebei fangsheng in connection with the potential sale upon appraisals by independent appraisal firms , and a finding by our audit committee that these conditions have been met . we have not identified new locations for the office and the digital photo paper workshop but are exploring the possibility of moving the headquarters office to near our xushui paper mill . we may also consider moving the digital photo paper operations to the new industrial park in wei county . 42 wei county tissue paper pm8 and pm9 in november 2012 we entered into a 15-year land lease with a land investment company in wei county for the purpose of developing the 49.4 acres of land into the base of our next capacity expansion . in december 2012 we signed a contract with an equipment contractor in shanghai to build the first of our two tissue paper production lines in wei county . the two production lines , each having 15,000 tonnes/year capacity , will be designated as pm8 and pm9 upon completion . total estimated cost of the tissue paper project may be up to $ 43.5 million in the next two years . renovation of pm1 to expand to 250,000 tonnes/year corrugating medium capacity we have decided to take voluntary action to renovate our 150,000 tonnes/year corrugating medium pm1 in anticipation of increased regulatory concerns on energy efficiencies and to further upgrade the quality of our corrugating medium products . the renovation is set to start before the end of the first quarter of 2013 and there will be no production output from pm1 during renovation . the company expects the renovated pm1 will cost approximately $ 20 million and will come online in the third quarter of 2014 with an expanded capacity of 250,000 tonnes/year . the company currently does not have any plans for equity financing in the next 12 months . story_separator_special_tag 0pt 0 ; text-align : justify `` > on august 18 , 2011 , the company obtained from the industrial & commercial bank of china an accounts receivable factoring facility with a maximum credit limit of $ 787,116 as of december 31 , 2011. under the factoring agreement , the bank has recourse against the company if the receivables , which remain in the company 's books at all times , are not fully collected . the term of the factoring facility expired on august 15 , 2012 and carried an interest rate of 8.528 % per annum . the company paid off the 2011 factoring outstanding balance on august 15 , 2012 and subsequently refinanced with the industrial & commercial bank of china on september 4 , 2012 under similar terms , except carries an interest rate of 6.6 % per annum . the unpaid balance of the factoring facility was $ 792,568 as of december 31 , 2012. this new factoring facility will expire on august 28 , 2013 . ( c ) on march 13 , 2012 , the company obtained from the industrial & commercial bank of china another accounts receivable factoring facility with a maximum credit limit of $ 1,975,816 as of september 30 , 2012. under the factoring agreement , the bank has recourse against the company if the receivables , which remain in the company 's books at all times , are not fully collected . the term of the factoring facility expires on january 4 , 2013 and carries an interest rate of 8.856 % per annum , or 3.5 % plus the prime rate for the loan set forth by the people 's bank of china at the time of funding . the company paid off the entire balance and accrued interest of the loan on october 23 , 2012 . ( d ) on november 9 , 2012 , the company obtained from the industrial & commercial bank of china another accounts receivable factoring facility with a maximum credit limit of $ 1,585,138 as of december 31 , 2012. under the factoring agreement , the bank has recourse against the company if the receivables , which remain in the company 's books at all times , are not fully collected . the term of the factoring facility expires on november 8 , 2013 and carries an interest rate of 6.6 % per annum , or 1.0 % plus the prime rate for the loan set forth by the people 's bank of china at the time of funding . the unpaid balance of the loan was in the amount of $ 1,585,138 as of december 31 , 2012 . ( e ) on september 19 , 2012 , the company obtained from the bank of hebei a new banking facility with maximum credit limit on bank loans of $ 1,585,138 and on notes payable of $ 1,585,138 , respectively . the facility is guaranteed by an independent third party . on the same day , the company drew down from this banking facility a new working capital loan of $ 1,585,138 as of december 31 , 2012. the loan bears interest at the rate of 6.6 % per annum . both the term of the banking facility and loan are for one year and

cash and cash equivalents our cash and cash equivalents as of december 31 , 2012 was $ 13,140,288 , an increase of $ 8,974,842 from $ 4,165,446 as of december 31 , 2011. the year-over-year increase of cash and cash equivalents was primarily attributable to a number of factors , including the following : i. net cash provided by operating activities net cash provided by operating activities was $ 22,231,966 for the year ended december 31 , 2012 , representing an increase of $ 3,601,917 or 19.33 % from $ 18,630,049 for the previous year in 2011. the net income for the year ended december 31 , 2012 in the amount of $ 14,672,663 represented a decrease of $ 6,976,001 or 32.22 % from $ 21,648,664 for the previous year in 2011. in addition to the decrease in net income , non cash item of deferred tax of $ 941,208 , net increase in inventories for $ 5,024,459 , net decrease in accounts payable of $ 1,771,968 and decrease in income taxes payable of $ 500,641 during the 2012 year also decreased cash balance as of december 31 , 2012. these major net cash outflows are offset by non cash item of depreciation and amortization in the amount of $ 8,382,859 ( an increase over the depreciation and amortization for the last year of 2011 by $ 3,958,328 ) , loss from impairment and disposal of assets for $ 2,717,060 , net decrease in accounts receivable of $ 1,029,978 , net increase in notes payable of $ 3,168,769 and net increase in other payables and accrued liabilities of $ 453,548. ii . net cash used in investing activities we incurred $ 11,915,693 in cash expenditures for investing activities during the year ended december 31 , 2012 , compared to $ 27,451,405 for the previous year in 2011 when the construction of the new corrugating medium pm6 was in progress .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash and cash equivalents our cash and cash equivalents as of december 31 , 2012 was $ 13,140,288 , an increase of $ 8,974,842 from $ 4,165,446 as of december 31 , 2011. the year-over-year increase of cash and cash equivalents was primarily attributable to a number of factors , including the following : i. net cash provided by operating activities net cash provided by operating activities was $ 22,231,966 for the year ended december 31 , 2012 , representing an increase of $ 3,601,917 or 19.33 % from $ 18,630,049 for the previous year in 2011. the net income for the year ended december 31 , 2012 in the amount of $ 14,672,663 represented a decrease of $ 6,976,001 or 32.22 % from $ 21,648,664 for the previous year in 2011. in addition to the decrease in net income , non cash item of deferred tax of $ 941,208 , net increase in inventories for $ 5,024,459 , net decrease in accounts payable of $ 1,771,968 and decrease in income taxes payable of $ 500,641 during the 2012 year also decreased cash balance as of december 31 , 2012. these major net cash outflows are offset by non cash item of depreciation and amortization in the amount of $ 8,382,859 ( an increase over the depreciation and amortization for the last year of 2011 by $ 3,958,328 ) , loss from impairment and disposal of assets for $ 2,717,060 , net decrease in accounts receivable of $ 1,029,978 , net increase in notes payable of $ 3,168,769 and net increase in other payables and accrued liabilities of $ 453,548. ii . net cash used in investing activities we incurred $ 11,915,693 in cash expenditures for investing activities during the year ended december 31 , 2012 , compared to $ 27,451,405 for the previous year in 2011 when the construction of the new corrugating medium pm6 was in progress .
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 Suspicious Activity Report : the decline in the asp appears to be a result of the economic slowdown throughout china , as manufacturing activities contracted due to the debt and fiscal crisis in europe as well as the chinese government 's effort to cool off the domestic construction activities . we believe the asp for the corrugating medium paper may not fundamentally improve until the chinese government announces new economic policies to stimulate domestic economy and consumer spending . we launched the new 360,000 tonnes/year corrugating medium pm6 in december 2011. we are in the process of ramping up the new production line pm6 . for the year of 2012 , we sold 175,758 tonnes of corrugating medium produced by the new production line . quantities sold from the commencement to december 2012 are as follows . 35 offset printing paper revenue from offset printing paper amounted to $ 49,100,091 ( or 33.88 % of total offset printing paper and corrugating medium paper revenue ) for the year ended december 31 , 2012 , which represents a $ 49,384,251 ( or 50.14 % ) decrease from the offset printing paper revenue of $ 98,484,342 for the comparable period in 2011. we sold 67,564 tonnes of offset printing paper in the year ended december 31 , 2012 compared to 122,320 tonnes of offset printing paper in the comparable period in year 2011 , a decrease of 54,756 tonnes or 44.76 % . we believe that the factors contributing to the decrease in both total quantity and dollar amount sold in the year ended december 31 , 2012 include ( 1 ) a softening demand for printing paper in our region , possibly due to a slowdown of the economy , ( 2 ) the decrease in asp for offset printing paper products from $ 805/tonne in the year ended december 31 , 2011 to $ 727/tonne in the year ended december 31 , 2012 , representing a decrease of 9.69 % , ( 3 ) the suspension of offset printing paper trading activities due to shrinking profit margin since january 2012 , as explained above , and ( 4 ) production interruption in the second and third quarters of 2012 because of the water treatment plant malfunction and the installation of new boilers . gross revenue from trading of offset printing paper finished goods is $ 121,618 ( or 157 tonnes ) for the year ended december 31 , 2012 , representing 0.25 % of total sales revenue of offset print paper for the current year , while gross revenue from trading of offset printing paper finished goods was $ 25,625,731 ( or 31,795 tonnes ) for the previous year in 2011 and accounted for 26.02 % of the gross revenue of offset printing paper for 2011. revenue of digital photo paper revenue generated from selling digital photo paper was $ 6,188,014 ( or 4.09 % of total revenue ) for the year ended december 31 , 2012 , a decrease of $ 2,061,186 or 24.99 % from $ 8,249,200 ( or 5.47 % of total revenue ) for the year ended december 31 , 2011. when comparing to the year ended december 31 , 2011 , the asp of our digital photo paper decreased from $ 4,026/tonne to $ 3,858/tonne . we sold 1,604 tonnes of digital photo paper in the year ended december 31 , 2012 , as compared to 2,049 tonnes in the same period a year ago . as there are increasingly more residential buildings and residents living in the surrounding areas of our digital photo paper plant , we have been under increasing pressure since october 2012 by local residents and from government urban planning officials to minimize our operations during night time , which resulted in a curtailment of our production schedule . digital photo paper produced in the fourth quarter of 2012 was 229.07 tonnes , versus 486.31 tonnes in the comparable quarter in 2011 , representing a 52.90 % quarterly decline . besides the reduced production in the fourth quarter of 2012 , the 21.72 % year-over-year decline in quantity sold and the 4.17 % year-over-year decline in asp , which appears to be a result of softening customer demand due to the slowdown in the economy . we believe the market demand and the asp may not fully recover until the first half of year 2013 , or until fundamental changes in the prc domestic economy take place . we currently produce glossy and semi-matte photo paper in various weights ( from 120g/m 2 to 260g/m 2 ) . because of the depressed domestic economy , we believe there will still be market pricing pressure on digital photo paper in the near future . digital photo paper products ' monthly asps , monthly sales quantity ( in tonnes ) and monthly sales revenue for the 24 months from january 2011 to december 2012 are summarized as follows : 36 cost of sales corrugating medium paper and offset printing paper total cost of sales for corrugating medium paper and offset printing paper for the year ended december 31 , 2012 was $ 119,312,122 , an increase of $ 7,005,486 or 6.24 % from $ 112,306,636 for the comparable period in 2011. the net increase in total corrugating medium and offset printing paper cost of sales in 2012 appears to be primarily due to the increase in the total quantity of paper sold in 2012 ( 322,064 tonnes ) versus in 2011 ( 230,494 tonnes ) . as explained above , total sales revenue ( excluding revenue from sales of digital photo paper ) increased from $ 142,498,116 in the year ended december 31 , 2011 to $ 144,928,792 in the comparable period in year 2012 , representing a 1.71 % year-over-year increase . story_separator_special_tag there is currently no binding agreement between us and hebei fangsheng in connection with the potential sale . in november 2012 , hebei fangsheng provided us with a payment of $ 1,075,606 earnest money deposit payment to proceed with discussion . the earnest money deposit would be refunded to hebei fangsheng in the event that the parties fail to reach an agreement on the terms of the potential sale . we intend to pursue negotiations with respect to the potential sale on an arm 's length basis with hebei fangsheng , and will only consummate such potential sale on terms that will be not less advantageous to us than as if hebei fangsheng were an independent , unaffiliated party . we will only enter into legally binding agreements with hebei fangsheng in connection with the potential sale upon appraisals by independent appraisal firms , and a finding by our audit committee that these conditions have been met . we have not identified new locations for the office and the digital photo paper workshop but are exploring the possibility of moving the headquarters office to near our xushui paper mill . we may also consider moving the digital photo paper operations to the new industrial park in wei county . 42 wei county tissue paper pm8 and pm9 in november 2012 we entered into a 15-year land lease with a land investment company in wei county for the purpose of developing the 49.4 acres of land into the base of our next capacity expansion . in december 2012 we signed a contract with an equipment contractor in shanghai to build the first of our two tissue paper production lines in wei county . the two production lines , each having 15,000 tonnes/year capacity , will be designated as pm8 and pm9 upon completion . total estimated cost of the tissue paper project may be up to $ 43.5 million in the next two years . renovation of pm1 to expand to 250,000 tonnes/year corrugating medium capacity we have decided to take voluntary action to renovate our 150,000 tonnes/year corrugating medium pm1 in anticipation of increased regulatory concerns on energy efficiencies and to further upgrade the quality of our corrugating medium products . the renovation is set to start before the end of the first quarter of 2013 and there will be no production output from pm1 during renovation . the company expects the renovated pm1 will cost approximately $ 20 million and will come online in the third quarter of 2014 with an expanded capacity of 250,000 tonnes/year . the company currently does not have any plans for equity financing in the next 12 months . story_separator_special_tag 0pt 0 ; text-align : justify `` > on august 18 , 2011 , the company obtained from the industrial & commercial bank of china an accounts receivable factoring facility with a maximum credit limit of $ 787,116 as of december 31 , 2011. under the factoring agreement , the bank has recourse against the company if the receivables , which remain in the company 's books at all times , are not fully collected . the term of the factoring facility expired on august 15 , 2012 and carried an interest rate of 8.528 % per annum . the company paid off the 2011 factoring outstanding balance on august 15 , 2012 and subsequently refinanced with the industrial & commercial bank of china on september 4 , 2012 under similar terms , except carries an interest rate of 6.6 % per annum . the unpaid balance of the factoring facility was $ 792,568 as of december 31 , 2012. this new factoring facility will expire on august 28 , 2013 . ( c ) on march 13 , 2012 , the company obtained from the industrial & commercial bank of china another accounts receivable factoring facility with a maximum credit limit of $ 1,975,816 as of september 30 , 2012. under the factoring agreement , the bank has recourse against the company if the receivables , which remain in the company 's books at all times , are not fully collected . the term of the factoring facility expires on january 4 , 2013 and carries an interest rate of 8.856 % per annum , or 3.5 % plus the prime rate for the loan set forth by the people 's bank of china at the time of funding . the company paid off the entire balance and accrued interest of the loan on october 23 , 2012 . ( d ) on november 9 , 2012 , the company obtained from the industrial & commercial bank of china another accounts receivable factoring facility with a maximum credit limit of $ 1,585,138 as of december 31 , 2012. under the factoring agreement , the bank has recourse against the company if the receivables , which remain in the company 's books at all times , are not fully collected . the term of the factoring facility expires on november 8 , 2013 and carries an interest rate of 6.6 % per annum , or 1.0 % plus the prime rate for the loan set forth by the people 's bank of china at the time of funding . the unpaid balance of the loan was in the amount of $ 1,585,138 as of december 31 , 2012 . ( e ) on september 19 , 2012 , the company obtained from the bank of hebei a new banking facility with maximum credit limit on bank loans of $ 1,585,138 and on notes payable of $ 1,585,138 , respectively . the facility is guaranteed by an independent third party . on the same day , the company drew down from this banking facility a new working capital loan of $ 1,585,138 as of december 31 , 2012. the loan bears interest at the rate of 6.6 % per annum . both the term of the banking facility and loan are for one year and

