We began by drawing sheep and using black marker to outline and color it in. Then we used China's most important color, Red, paper to glue our sheep drawing to. I picked up some Chinese newspapers from China Town and cut them into strips and we used those a streamers as decoration. The kids like to see all the Chinese writing on the strips. Finally we glued the red paper into a cylinder, punched holes and tied yarn to hang them from.
I do this project every year with the new year's animal on it. I enjoy teaching the holiday because it's one of my favorites and the kids like creating something that's three-dimensional.
Below is my current instructional video with the sheep and here is my lesson plan.