----

----

| x    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-------------------------------------------------------------------------------------------------------|

| o    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-------------------------------------------------------------------------------------------------------------|

|                                             |
|--------------------------------------------------|
| VANTONE INTERNATIONAL GROUP INC.                 |
| (Name of Registrant as Specified in its Charter) |

| Nevada                                                         |   | 41-1954595                                 |
|----------------------------------------------------------------|--------|--------------------------------------------|
| (State or Other Jurisdiction of incorporation or organization) |   | (I.R.S.  Employer Identification No.) |

| NO. 195 ZHONGSHAN RD, HEPING DISTRICTSHENYANG, LIAONING PROVINCEPEOPLE’S REPUBLIC OF CHINA |
|--------------------------------------------------------------------------------------------------|
| (Address of principal executive offices)                                                         |
|                                                                                             |
| 86-24-2286-6686                                                                                  |
| (Registrant’s telephone number including area code)                                        |

----

| PART I - FINANCIAL INFORMATION                                                           |   |      |
|-----------------------------------------------------------------------------------------------|--------|-----------|
| Item 1: Financial Statements                                                                  |   | 3         |
| Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations |   | 28        |
| Item 3: Quantitative and Qualitative Disclosures about Market Risk                            |   | 35        |
| Item 4: Controls and Procedures                                                               |   | 35        |
|                                                                                          |   |      |
| PART II - OTHER INFORMATION                                                              |   |      |
| Item 1: Legal Proceedings                                                                     |   |  36  |
| Item 1A: Risk Factors                                                                         |   | 36        |
| Item 2: Unregistered Sales of Equity Securities and Use of Proceeds                           |   | 36        |
| Item 3:Default upon Senior Securities                                                         |   |  36  |
| Item 4: (Removed and Reserved)                                                                |   |  36  |
| Item 5:Other Information                                                                      |   |   36 |
| Item 6: Exhibits                                                                              |   | 36        |

----

| Vantone International Group, Inc. and Subsidiaries                                      |   |
|-----------------------------------------------------------------------------------------|--------|
| Consolidated Balance Sheets                                                             |   |
|                                                                                    |   |   |   |   |   |   |
|                                                                                    |   | December 31, 2010 |   |   | March 31, 2010 |   |
| Assets                                                                                  |   | (Unaudited) |   |   | (Audited) |   |
| Assets:                                                                                 |   |   |   |   |   |   |
| Current Assets                                                                          |   |   |   |   |   |   |
| Cash and equivalents                                                                    |   | $ | 7,271,448 |   |   | $ | 5,159,615 |   |
| Accounts receivable, net of allowance                                                   |   |   |   |   |   |   |   |   |
| for doubtful amounts of $83,877 and $427,357, respectively                              |   |   | 754,897 |   |   |   | 3,846,213 |   |
| Insurance commissions receivable                                                        |   |   | 2,540 |   |   |   | 3,659 |   |
| Interests receivable                                                                    |   |   | 3,092 |   |   |   | - |   |
| Loans receivable                                                                        |   |   | 1,696,073 |   |   |   | - |   |
| Less: Unearned income                                                                   |   |   | (59,925 | ) |   |   | - |   |
|      Allowance for loan losses                                 |   |   | (16,961 | ) |   |   | - |   |
|         Total loans receivable, net             |   |   | 1,619,187 |   |   |   | - |   |
| Advanced to suppliers                                                                   |   |   | 196,219 |   |   |   | 13,346 |   |
| Inventories                                                                             |   |   | 474,805 |   |   |   | 140,952 |   |
| Advanced to stockholders/officers, net                                                  |   |   | 2,421,690 |   |   |   | 2,367,998 |   |
| Prepayments and other current assets                                                    |   |   | 244,573 |   |   |   | 240,405 |   |
| Deferred income tax assets-current                                                      |   |   | 173,701 |   |   |   | 123,101 |   |
| Total Current Assets                                                                    |   |   | 13,162,152 |   |   |   | 11,895,289 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Property and Equipment - Net                                                            |   |   | 1,831,724 |   |   |   | 1,881,125 |   |
| Non-Operating Property                                                                  |   |   | 1,228,473 |   |   |   | 1,188,237 |   |
| Total Assets                                                                            |   |   | 16,222,349 |   |   |   | 14,964,651 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity                                                    |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Current Liabilities                                                                     |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                                   |   |   | 53,201 |   |   |   | 161,704 |   |
| Insurance commissions payable                                                           |   |   | 398 |   |   |   | 318 |   |
| Customer deposits                                                                       |   |   | 188,357 |   |   |   | 723,737 |   |
| Taxes payable                                                                           |   |   | 148,421 |   |   |   | 312,558 |   |
| Deferred VIP membership revenue                                                         |   |   | 503,919 |   |   |   | - |   |
| Deferred network service revenue-current                                                |   |   | 4,169 |   |   |   | - |   |
| Other current liabilities                                                               |   |   | 218,850 |   |   |   | 205,294 |   |
| Total Current Liabilities                                                               |   |   | 1,117,315 |   |   |   | 1,403,611 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Deferred Network Service Revenue-Noncurrent                                             |   |   | 27,098 |   |   |   | - |   |
| Total Liabilities                                                                       |   |   | 1,144,413 |   |   |   | 1,403,611 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Stockholders' Equity:                                                                   |   |   |   |   |   |   |   |   |
| Vantone International Group Equity                                                      |   |   |   |   |   |   |   |   |
| Common stock - $0.001 par value, 100,000,000 shares                                     |   |   |   |   |   |   |   |   |
| authorized, 30,001,000 and 29,901,000 shares issued and outstanding ,respectively*      |   |   | 30,001 |   |   |   | 29,901 |   |
| Additional paid-in capital                                                              |   |   | 1,919,800 |   |   |   | 1,887,100 |   |
| Deferred compensation                                                                   |   |   | - |   |   |   | 32,800 |   |
| Reserve funds                                                                           |   |   | 818,683 |   |   |   | 724,764 |   |
| Retained earnings                                                                       |   |   | 11,139,584 |   |   |   | 10,155,893 |   |
| Accumulated other comprehensive income                                                  |   |   | 1,111,594 |   |   |   | 660,840 |   |
| Total Vantone International Group, Inc. Stockholders' Equity                            |   |   | 15,019,662 |   |   |   | 13,491,298 |   |
| Non-controlling Interest                                                                |   |   | 58,274 |   |   |   | 69,742 |   |
| Total Equity                                                                            |   |   | 15,077,936 |   |   |   | 13,561,040 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders' Equity                                              |   | $ | 16,222,349 |   |   | $ | 14,964,651 |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| *: As restated to show recapitalization.                                                |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |

----

| Vantone International Group, Inc. and Subsidiaries |
|----------------------------------------------------|
| Consolidated Statements of Operations              |

|                                                                                                                            |   | For Fiscal Three Months Ended December 31, |       |   | For Fiscal Nine Months Ended December 31, |     |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|--------|------------------------------------------------|----------|
|                                                                                                                            |   | 2010                                       |       |   | 2009                                           |     |   | 2010 |   |   | 2009 |   |
|                                                                                                                            |   | (Unaudited)                                |       |   | (Unaudited)                                    |     |   | (Unaudited) |   |   | (Unaudited) |   |
| Revenues                                                                                                                          |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Products sold                                                                                                                     |   | $                                          | 1,290,537  |   |                                           | $        | 480,309 |   |   | $ | 3,206,455 |   |   | $ | 4,407,340 |   |
| Sales discount for products                                                                                                       |   |                                       | (608,535   | )      |                                           |     | - |   |   |   | (961,013 | ) |   |   | - |   |
| Insurance service rendered                                                                                                        |   |                                       | 4,737      |   |                                           |     | 24,087 |   |   |   | 23,173 |   |   |   | 270,119 |   |
| Franchise joining fees                                                                                                            |   |                                       | -          |   |                                           |     | 439 |   |   |   | - |   |   |   | 2,196 |   |
| VIP membership fees                                                                                                               |   |                                       | 253,785    |   |                                           |     | - |   |   |   | 514,844 |   |   |   | - |   |
| Network service fees                                                                                                              |   |                                       | 1,031      |   |                                           |     | - |   |   |   | 2,039 |   |   |   | - |   |
| Financing interests                                                                                                               |   |                                       | 40,896     |   |                                           |     | - |   |   |   | 40,896 |   |   |   | - |   |
|     Total Revenues                                                                                            |   |                                       | 982,451    |   |                                           |     | 504,835 |   |   |   | 2,826,394 |   |   |   | 4,679,655 |   |
|                                                                                                                            |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Cost of Goods Sold                                                                                                                |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Products sold                                                                                                                     |   |                                       | 243,719    |   |                                           |     | 302,673 |   |   |   | 831,530 |   |   |   | 2,651,825 |   |
| Insurance service rendered                                                                                                        |   |                                       | 2,287      |   |                                           |     | 20,303 |   |   |   | 17,821 |   |   |   | 264,048 |   |
| Franchise joining cost                                                                                                            |   |                                       | -          |   |                                           |     | 22 |   |   |   | - |   |   |   | 120 |   |
| VIP membership cost                                                                                                               |   |                                       | 13,852     |   |                                           |     | - |   |   |   | 28,080 |   |   |   | - |   |
| Network service cost                                                                                                              |   |                                       | 56         |   |                                           |     | - |   |   |   | 111 |   |   |   | - |   |
| Financing cost                                                                                                                    |   |                                       | 2,150      |   |                                           |     | - |   |   |   | 2,150 |   |   | -  |   |
| Total Cost of Goods Sold                                                                                                          |   |                                       | 262,064    |   |                                           |     | 322,998 |   |   |   | 879,692 |   |   |   | 2,915,993 |   |
|                                                                                                                            |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Gross Profit                                                                                                                      |   |                                       | 720,387    |   |                                           |     | 181,837 |   |   |   | 1,946,702 |   |   |   | 1,763,662 |   |
|                                                                                                                            |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Operating Expenses                                                                                                                |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Selling expenses                                                                                                                  |   |                                       | 6,063      |   |                                           |     | 82,857 |   |   |   | 11,460 |   |   |   | 287,488 |   |
| Loss on fixed assets disposal                                                                                                     |   |                                       | -          |   |                                           |     | 6,043 |   |   |   | 2,677 |   |   |   | 6,043 |   |
| Bad debt recoveries                                                                                                               |   |                                       | (2,442     | )      |                                           |     | - |   |   |   | (350,165 | ) |   |   | - |   |
| Provision for loan losses                                                                                                         |   |                                       | 16,592     |   |                                           |     | - |   |   |   | 16,592 |   |   |   | - |   |
| General and administrative expenses                                                                                               |   |                                       | 375,885    |   |                                           |     | 286,442 |   |   |   | 854,510 |   |   |   | 951,339 |   |
| Total Operating Expenses                                                                                                          |   |                                       | 396,098    |   |                                           |     | 375,342 |   |   |   | 535,074 |   |   |   | 1,244,870 |   |
|                                                                                                                            |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Income (Loss) From Operations                                                                                                     |   |                                       | 324,289    |   |                                           |     | (193,505 | ) |   |   | 1,411,628 |   |   |   | 518,792 |   |
|                                                                                                                            |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Other Income                                                                                                                      |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Interest income, net                                                                                                              |   |                                       | 4,520      |   |                                           |     | 1,492 |   |   |   | 10,264 |   |   |   | 4,932 |   |
| Other income (expenses), net                                                                                                      |   |                                       | -          |   |                                           |     | 106,501 |   |   |   | (110 | ) |   |   | 107,462 |   |
| Total Other Income                                                                                                                |   |                                       | 4,520      |   |                                           |     | 107,993 |   |   |   | 10,154 |   |   |   | 112,394 |   |
|                                                                                                                            |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Income (Loss) Before Taxes                                                                                                        |   |                                       | 328,809    |   |                                           |     | (85,512 | ) |   |   | 1,421,782 |   |   |   | 631,186 |   |
| Provision for Income Taxes                                                                                                        |   |                                       | 159,220    |   |                                           |     | 12,508 |   |   |   | 355,640 |   |   |   | 252,375 |   |
| Income Before Non-controlling Interest                                                                                            |   |                                       | 169,589    |   |                                           |     | (98,020 | ) |   |   | 1,066,142 |   |   |   | 378,811 |   |
|                                                                                                                            |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Less: Net loss attributable to the non-controlling interest                                                                       |   |                                       | (4,016     | )      |                                           |     | (4,423 | ) |   |   | (11,468 | ) |   |   | (14,647 | ) |
|                                                                                                                            |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Net Income (Loss) Attributable to                                                                                                 |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Vantone International Group, Inc.                                                                                                 |   | $                                          | 173,605    |   |                                           | $        | (93,597 | ) |   | $ | 1,077,610 |   |   | $ | 393,458 |   |
|                                                                                                                            |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| Net Income (Loss) Per Common Share:                                                                                               |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
|     - Basic and Diluted                                                                                       |   | $                                          | 0.01       |   |                                           | $        | (0.00 | ) |   | $ | 0.04 |   |   | $ | 0.01 |   |
|                                                                                                                            |   |                                     |       |   |                                         |     |   |   |   |   |    |   |
| Weighted Common Shares Outstanding *                                                                                              |   |                                     |       |   |                                         |     |   |   |   |   |    |   |
|     - Basic and Diluted                                                                                       |   |                                       | 29,981,370 |   |                                           |     | 29,901,000 |   |   |   | 29,981,370 |   |   |  29,901,000 |   |
|                                                                                                                            |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| *: As restated to show recapitalization.                                                                                          |   |                                       |     |   |                                           |   |   |   |   |   |
|                                                                                                                              |   |                                     |       |   |                                         |     |   |   |   |   |   |   |
| The accompanying notes are an integral part of these unaudited consolidated financial statements.     |   |

----

| Vantone International Group, Inc. and Subsidiaries |
|----------------------------------------------------|
| Consolidated Statements of Comprehensive Income    |

|                                             |   | For The Fiscal Nine Months Ended December 31, |      |
|--------------------------------------------------|--------|-----------------------------------------------|-----------|
|                                             |   | 2010                                          |      |   | 2009 |   |
|                                             |   | (Unaudited)                                   |      |   | (Unaudited) |   |
|                                             |   |                                          |      |   |   |   |
|  Net Income Before Non-controlling Interest |   | $                                             | 1,066,142 |   |   | $ | 378,811 |   |
|  Other Comprehensive Income:                |   |                                          |      |   |   |   |   |   |
|  Foreign Currency Translation Adjustment    |   |                                          | 450,754   |   |   |   | 6,632 |   |
|  Total Comprehensive Income                 |   | $                                             | 1,516,896 |   |   | $ | 385,443 |   |
|                                             |   |                                          |      |   |   |   |   |   |

----

| Vantone International Group, Inc. and Subsidiaries                                                |   |                                          |       |   |        |   |
|---------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|------------|--------|-------------|--------|
| Consolidated Statements of Cash Flows                                                             |   |                                          |       |   |        |   |
|                                                                                              |   |                                          |       |   |        |   |
|                                                                                              |   | For The Fiscal Nine Months Ended December 31, |       |
|                                                                                              |   | 2010                                          |       |   | 2009        |   |
|                                                                                              |   | (Unaudited)                                   |       |   | (Unaudited) |   |
|  Cash Flows From Operating Activities                                                        |   |                                          |       |   |        |   |
|  Net Income                                                                                  |   | $                                             | 1,077,610  |   |        | $      | 393,458 |   |
|  Adjustments to Reconcile Net Income to Net Cash                                             |   |                                          |       |   |        |   |   |   |
|   Provided by Operating Activities                                                           |   |                                          |       |   |        |   |   |   |
| Bad debt adjustment                                                                               |   |                                          | (350,165   | )      |        |   | - |   |
| Provision for loan losses                                                                         |   |                                          | 16,592     |   |        |   | - |   |
| Depreciation                                                                                      |   |                                          | 127,556    |   |        |   | 120,727 |   |
| Net loss attributable to non-controlling interest                                                 |   |                                          | (11,468    | )      |        |   | (14,647 | ) |
| Deferred income tax benefits                                                                      |   |                                          | (45,422    | )      |        |   | (80,062 | ) |
| Loss on disposal of inventories                                                                   |   |                                          | -          |   |        |   | 10,478 |   |
| Loss on disposal of fixed assets                                                                  |   |                                          | 2,677      |   |        |   | 6,043 |   |
| Changes in operating assets and liabilities:                                                      |   |                                          |       |   |        |   |   |   |
| Accounts receivable                                                                               |   |                                          | 3,462,269  |   |        |   | 457,672 |   |
| Insurance commissions receivable                                                                  |   |                                          | 1,202      |   |        |   | 21,306 |   |
| Interest receivable                                                                               |   |                                          | (3,092     | )      |        |   | - |   |
| Advanced to suppliers                                                                             |   |                                          | (176,446   | )      |        |   | (93,473 | ) |
| Inventories                                                                                       |   |                                          | (318,302   | )      |        |   | (261,384 | ) |
| Prepayments and other current assets                                                              |   |                                          | 3,843      |   |        |   | 231,562 |   |
| Accounts payable and accrued expenses                                                             |   |                                          | (110,246   | )      |        |   | 456,034 |   |
| Insurance commissions payable                                                                     |   |                                          | 67         |   |        |   | (32,459 | ) |
| Customer deposits                                                                                 |   |                                          | (541,549   | )      |        |   | 300,852 |   |
| Taxes payable                                                                                     |   |                                          | (168,998   | )      |        |   | 304,184 |   |
| Deferred VIP membership revenue                                                                   |   |                                          | 503,919    |   |        |   | - |   |
| Other current liabilities                                                                         |   |                                          | 6,388      |   |        |   | 215,155 |   |
| Deferred network service revenue                                                                  |   |                                          | 31,267     |   |        |   | - |   |
|  Net Cash Provided by Operating Activities                                                   |   |                                          | 3,507,702  |   |        |   | 2,035,446 |   |
|                                                                                              |   |                                          |       |   |        |   |   |   |
|  Cash Flows From Investing Activities                                                        |   |                                          |       |   |        |   |   |   |
| Net increase in loans receivable                                                                  |   |                                          | (1,636,148 | )      |        |   | - |   |
| Payment for purchase of property and equipment                                                    |   |                                          | (20,543    | )      |        |   | (42,309 | ) |
| Proceeds from related parties return loan                                                         |   |                                          | -          |   |        |   | 760,983 |   |
| Payment to related parties                                                                        |   |                                          | -          |   |        |   | (612,747 | ) |
|  Net Cash (Used in)Provided by Investing Activities                                          |   |                                          | (1,656,691 | )      |        |   | 105,927 |   |
|                                                                                              |   |                                          |       |   |        |   |   |   |
|  Cash Flows From Financing Activities                                                        |   |                                          |       |   |        |   |   |   |
| Payment for acquired non-controlling interest                                                     |   |                                          | -          |   |        |   | (73,241 | ) |
| Proceeds from stockholders/officers return of advances                                            |   |                                          | -          |   |        |   | 137,057 |   |
| Payment to stockholders/officers                                                                  |   |                                          | -          |   |        |   | (831,031 | ) |
|  Net Cash Used in Financing Activities                                                       |   |                                          | -          |   |        |   | (767,215 | ) |
|                                                                                              |   |                                          |       |   |        |   |   |   |
|  Net Increase in Cash and Equivalents                                                        |   |                                          | 1,851,011  |   |        |   | 1,374,158 |   |
|  Effect of Exchange Rate Changes on Cash                                                     |   |                                          | 260,822    |   |        |   | 9,903 |   |
|  Cash and Equivalents at Beginning of Period                                                 |   |                                          | 5,159,615  |   |        |   | 1,441,411 |   |
|  Cash and Equivalents at End of Period                                                       |   | $                                             | 7,271,448  |   |        | $      | 2,825,472 |   |
|                                                                                              |   |                                          |       |   |        |   |   |   |
|  Supplemental Disclosures of Cash Flow Information:                                          |   |                                          |       |   |        |   |   |   |
| Interest paid                                                                                     |   | $                                             | -          |   |        | $      | - |   |
| Income taxes paid                                                                                 |   | $                                             | 255,988    |   |        | $      | 162,509 |   |
|                                                                                              |   |                                          |       |   |        |   |   |   |
| Supplemental Schedule of Non-Cash Investing and Financing Activities:                             |   |                                          |       |   |        |
| Other receivable converted to stockholders/officers loan                                          |   | $                                             | -          |   |        | $      | (1,304,208 | ) |
| Recorded deferred interest expenses for discount on loan to related parties                       |   | $                                             | -          |   |        | $      | (37,986 | ) |
|                                                                                              |   |                                          |       |   |        |   |   |   |
| The accompanying notes are an integral part of these unaudited consolidated financial statements. |   |

----

|   | 1. 1.  Basis of Presentation |
|--------|---------------------------------------------|

| a.   | Interim Financial Statement |
|----------------|-----------------------------|

| b.   | Description of Business and Reverse Merger |
|----------------|--------------------------------------------|

----

----

| c.   | Fiscal Year |
|----------------|-------------|

----

| d.   | Principle of Consolidation |
|----------------|----------------------------|

| e.   | Use of Estimates |
|----------------|------------------|

| f.   | Foreign Currency Translation |
|----------------|------------------------------|

|                 |                   |   |                                           |   |   |     |   |   |   |
|------------------------|--------------------------|--------|--------------------------------------------------|--------|----------|----------|----------|--------|----------|
|                 |                   |   | For The Fiscal Nine Months Ended of December 31, |   |   |
|                 |                   |   | 2010                                             |   |   |     | 2009     |   |   |
| Assets and liabilities | period ended rate of RMB |   | ¥                                           | 6.6023 |     | /per USD |     | ¥ | 6.8270   |   | /per USD |
|                 |                   |   |                                           |   |   |     |   |   |   |
| Revenue and expenses   | average rate of RMB      |   | ¥                                           | 6.7491 |     | /per USD |     | ¥ | 6.8294   |   | /per USD |

| g.   | Accounts Receivable |
|----------------|---------------------|

----

| h.   | Inventories |
|----------------|-------------|

| i.   | Fair Value Measurements |
|----------------|-------------------------|

|   | o | Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. |
|--------|---|----------------------------------------------------------------------------------------------------------------------|

|   | o | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
|--------|---|-------------------------------------------------------------------------------------------------------------|

| j.   | Property and Equipment - Net |
|----------------|------------------------------|

----

|                            |  Years              |   |
|---------------------------------|--------------------------|--------|
| Buildings                  |  20 years           |   |
| Vehicles                   |  3 years to 5 years |   |
| Equipments and office furniture |  5 years            |   |
| Software                        |  3 years            |   |

| k.   | Insurance Commissions Receivable and Payable |
|----------------|----------------------------------------------|

| l.   | Stock-Based Compensation |
|----------------|--------------------------|

| m.   | Revenue Recognition |
|----------------|---------------------|

----

| n.   | Reclassifications |
|----------------|-------------------|

| o.   | Income Taxes |
|----------------|--------------|

----

| p.   | Non-Controlling Interests |
|----------------|---------------------------|

| q.   | Basic and Diluted net income per share |
|----------------|----------------------------------------|

| r.   | Segment Reporting |
|----------------|-------------------|

| s.   |  Recent Accounting Pronouncements |
|----------------|----------------------------------------|

----

| 2.   | Accounts Receivable and Allowance for Doubtful Accounts |
|----------------|---------------------------------------------------------|

|                                                                                                                     |   | December 31, 2010 |    |   | March 31, 2010 |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|---------------------|--------|
|                                                                                                                     |   | (Unaudited)            |    |   | (Audited)           |   |
| Distributors who had owed the Company more than                                                                          |   |                   |    |   |                |   |
|    USD75,731 (equivalent to RMB0.5 million)                                                               |   | $                      | 825,142 |   |                | $      | 4,246,736 |   |
| Distributors or Customers who had owed the Company                                                                       |   |                   |    |   |                |   |   |   |
|    equal or less than USD75,731 (equivalent to RMB0.5 million)                                            |   |                   | 13,632  |   |                |   | 26,834 |   |
|                 Sub-total                |   |                   | 838,774 |   |                |   | 4,273,570 |   |
| Less: Allowance for doubtful accounts                                                                                    |   |                   | 83,877  |   |                |   | 427,357 |   |
|                 Accounts receivable, net |   | $                      | 754,897 |   |                | $      | 3,846,213 |   |

| Period                   |   | Amount |    | Period |                                       | Amount |   |
|--------------------------|--------|--------|---------|--------|--------------------------------------------|--------|--------|
| As of March 31, 2010     |   | $      | 427,357 |   |    As of March 31, 2009     |   | $      | - |   |
| As of June 30, 2010      |   |   | 338,746 |   |    As of June 30, 2009      |   |   | - |   |
| As of September 30, 2010 |   |   | 82,764  |   |    As of September 30, 2009 |   |   | - |   |
| As of December 31, 2010  |   | $      | 83,877  |   |    As of December 31, 2009  |   | $      | - |   |

----

|                          |   | December 31, 2010 |    |   | March 31, 2010 |   |
|-------------------------------|--------|------------------------|---------|--------|---------------------|--------|
|                          |   | (Unaudited)            |    |   | (Audited)           |   |
| Less than 90 days             |   | $                      | -       |   |                | $      | 4,273,570 |   |
|   91days-180days    |   |                   | -       |   |                |   | - |   |
|   181days-365days   |   |                   | 838,774 |   |                |   | - |   |
| More than 365days             |   |                   | -       |   |                |   | - |   |
|     Total |   | $                      | 838,774 |   |                | $      | 4,273,570 |   |
|                          |   |                   |    |   |                |   |   |   |

|                         |   | For The Fiscal Nine Months Ended December 31, |   |
|------------------------------|--------|-----------------------------------------------|--------|
|                         |   | 2010                                          |   |   | 2009 |   |
|                         |   | Unaudited                                     |   |   | Unaudited |   |
| Accounts receivable turnover |   |                                          | -      |   |   |   | 1.64 |   |

| 3. | Loans Receivable, Net |
|----|-----------------------|

----

|                           |   | Loans receivable |      |   | Allowance of loan losses |   |   | Unearned interest income |   |   | Total loans receivable, net |   |
|--------------------------------|--------|------------------|-----------|--------|--------------------------|--------|--------|--------------------------|--------|--------|-----------------------------|--------|
| Outstanding, April 1, 2010     |   |             | -         |   |                     |   | -      |                     |   |   | -                           |   |   |   | - |   |
| Increased                      |   |             | 1,696,073 |   |                     |   | 16,961 |                     |   |   | 59,925                      |   |   |   | 1,619,187 |   |
| Decreased                      |   |             | -         |   |                     |   | -      |                     |   |   | -                           |   |   |   | - |   |
| Outstanding, December 31, 2010 |   |             | 1,696,073 |   |                     |   | 16,961 |                     |   |   | 59,925                      |   |   |   | 1,619,187 |   |

| 4.   | Inventories |
|----------------|-------------|

|         |   | December 31, 2010 |    |   | March 31, 2010 |   |
|----------------|--------|-------------------|---------|--------|----------------|--------|
|         |   | (Unaudited)       |    |   | (Audited)      |   |
| Raw materials  |   | $                 | 62,880  |   |           | $      | 47,859 |   |
| Finished goods |   |              | 411,925 |   |           |   | 93,093 |   |
|  Total  |   | $                 | 474,805 |   |           | $      | 140,952 |   |

|               |   | For The Fiscal Nine Months Ended December 31, |   |
|--------------------|--------|-----------------------------------------------|--------|
|               |   | 2010                                          |   |   | 2009 |   |
|               |   | Unaudited                                     |   |   | Unaudited |   |
| Inventory turnover |   |                                          | 2.70   |   |   |   | 5.00 |   |

----

| 5. | Advanced to Stockholders/ Officers, Net |
|----|-----------------------------------------|

|          |   | December 31, 2010 |      |   | March 31, 2010 |   |
|-----------------|--------|-------------------|-----------|--------|----------------|--------|
|          |   | (Unaudited)       |      |   | (Audited)      |   |
| Mr. Honggang Yu |   | $                 | 2,421,690 |   |           | $      | 2,367,998 |   |
| Total           |   | $                 | 2,421,690 |   |           | $      | 2,367,998 |   |

| 6.   | Property and Equipment-net |
|----------------|----------------------------|

|                            |   | Estimated |   |      | December 31, 2010 |   |      | March 31, 2010 |   |
|---------------------------------|--------|-----------|--------|-----------|-------------------|--------|-----------|----------------|--------|
|                            |   | Life      |   |      | (Unaudited)       |   |      | (Audited)      |   |
|                            |   |      |   |      |              |   |      |           |   |   |   |   |
| Buildings                       |   |      | 20     |      |              | $      | 2,046,309 |           |   | $ | 1,979,285 |   |
| Vehicles                        |   |      | 3-5    |      |              |   | 199,378   |           |   |   | 178,197 |   |
| Equipments and office furniture |   |      | 5      |      |              |   | 76,705    |           |   |   | 72,571 |   |
| Software                        |   |      | 3      |      |              |   | 44,178    |           |   |   | 42,658 |   |
| Subtotal                        |   |      |   | 2,366,570 |              |   |      | 2,272,711      |   |
| Less: accumulated depreciation  |   |      |   | 534,846   |              |   |      | 391,586        |   |
| Total                           |   |      | $      | 1,831,724 |              |   | $         | 1,881,125      |   |

| 7.   | Non-Operating Property |
|----------------|------------------------|

----

|                           |   | December 31, 2010 |      |   | March 31, 2010 |   |
|--------------------------------|--------|-------------------|-----------|--------|----------------|--------|
|                           |   | (Unaudited)       |      |   | (Audited)      |   |
|                           |   |              |      |   |           |   |
| Non-Operation Buildings        |   | $                 | 1,228,473 |   |           | $      | 1,188,237 |   |
| Subtotal                       |   |              | 1,228,473 |   |           |   | 1,188,237 |   |
| Less: accumulated depreciation |   |              | -         |   |           |   | - |   |
| Total                          |   | $                 | 1,228,473 |   |           | $      | 1,188,237 |   |

| 8.       | Taxes Payable                         |
|----------|--------------------------------------------|
| a.  | Corporation Income Tax (“CIT”) |

----

|                               |   | For The Fiscal Nine Months Ended December 31, |    |
|------------------------------------|--------|-----------------------------------------------|---------|
|                               |   | 2010                                          |    |   | 2009 |   |
|                               |   | Unaudited                                     |    |   | Unaudited |   |
|  Current                      |   | $                                             | 401,062 |   |   | $ | 332,437 |   |
|  Deferred income tax benefits |   |                                          | (45,422 | ) |   |   | (80,062 | ) |
|   Total                       |   | $                                             | 355,640 |   |   | $ | 252,375 |   |

|                                                                 |   | For The Fiscal Nine Months Ended December 31, |   |
|------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                 |   | 2010                                          |   |   | 2009 |   |
|                                                                 |   | Unaudited                                     |   |   | Unaudited |   |
| U.S. statutory corporate income tax rate                               |   |                                          | 34     | % |   |   | 34 | % |
| PRC tax rate difference                                                |   |                                          | (9     | %) |   |   | (9 | %) |
| Net effect of tax exemption/non-taxable income/non-deductible expenses |   |                                          | -      |   |   |   | 15 | % |
| Effective tax rate                                                     |   |                                          | 25     | % |   |   | 40 | % |

|                                               |   | December 31, 2010 |    |   | March 31, 2010 |   |
|------------------------------------------------------|--------|-------------------|---------|--------|----------------|--------|
|                                               |   | (Unaudited)       |    |   | (Audited)      |   |
| Deferred income taxes assets                         |   |            |    |   |         |   |
| Loss carry forward                                   |   |              | 173,701 |   |           |   | 123,101 |   |
|  Total deferred income taxes assets - current |   | $                 | 173,701 |   |           | $      | 123,101 |   |

| b. | Value Added Tax (“VAT”) |
|----|-------------------------------------|

----

| c. | Business Tax (“BT”) |
|----|---------------------------------|

| d. | Taxes Payable |
|----|---------------|

|                                        |   | December 31,2010 |     |   | March 31, 2010 |   |
|-----------------------------------------------|--------|------------------|----------|--------|----------------|--------|
|                                        |   | (Unaudited)      |     |   | (Audited)      |   |
| Value-added taxes                             |   | $                | (108,244 | )      |           | $      | 190,573 |   |
| Corporate income tax provision                |   |             | 276,541  |   |           |   | 118,537 |   |
| Business taxes                                |   |             | (24,809  | )      |           |   | 226 |   |
| Individual income tax withholdings            |   |             | 149      |   |           |   | 14 |   |
| City construction, education, and other taxes |   |             | 4,784    |   |           |   | 3,208 |   |
| Total                                         |   | $                | 148,421  |   |           | $      | 312,558 |   |

| 9 | Deferred Revenue-VIP and Network |
|---|----------------------------------|

| 10 | Operating Lease Commitments |
|----|-----------------------------|

----

| For The Fiscal Nine Months Ending December 31, |   | Amount |   |
|------------------------------------------------|--------|--------|--------|
| 2011                                           |   | $      | 34,505 |   |
| 2012                                           |   |   | 32,089 |   |
| Total minimum rental payments required         |   | $      | 66,594 |   |

| 11.      | Stockholder’s Equity  |
|----------|----------------------------------|
|  a. |  Common Stock               |

----

|                           |   | Warrants    |    |   | Weighted Average |   |    | Average Remaining |   |   | Aggregate Intrinsic |   |
|--------------------------------|--------|-------------|---------|--------|------------------|--------|---------|-------------------|--------|--------|---------------------|--------|
|                           |   | Outstanding |    |   | Exercise Price   |   |    | Life in years     |   |   | Value               |   |
| Outstanding, April 1, 2010     |   |        | 100,000 |   |             | $      | -       |              |   |   | -                   |   |   | $ | - |   |
| Granted                        |   |        | -       |   |             |   | -       |              |   |   | -                   |   |   |   | - |   |
| Forfeited                      |   |        | -       |   |             |   | -       |              |   |   | -                   |   |   |   | - |   |
| Exercised                      |   |        | 100,000 |   |             |   |    |              |   |   | -              |   |   |   | - |   |
| Outstanding, December 31, 2010 |   |        | -       |   |             | $      |  - |              |   |   | -              |   |   | $ | - |   |

| b. | Additional Paid-In Capital |
|----|----------------------------|

| c. | Dividends and Reserves |
|----|------------------------|

| 12 | Proxy Agreement, Entrusted Management Agreement, and Purchase Option and Cooperation Agreement |
|----|------------------------------------------------------------------------------------------------|

----

| 1) | March 31, 2017, or |
|----|--------------------|

| 2) | the winding up of Vantone Yuan, or |
|----|------------------------------------|

| 3) | the termination date of this Entrusted Management Agreement to be determined by the parties, or |
|----|-------------------------------------------------------------------------------------------------|

| 4) | the date on which Vantone Manufacturing completes the acquisition of Vantone Yuan. |
|----|------------------------------------------------------------------------------------|

| 13 | Segment Reporting |
|----|-------------------|

----

|                                    |   | For The Fiscal Nine Months Ended December 31, 2010 |       |
|-----------------------------------------|--------|----------------------------------------------------|------------|
|                                    |   | Products Sold                                      |       |   | Insurance Agency |   |   | Financing Interest |   |   | Total |   |
|                                    |   | and Related Service                                |       |   | Related Service |   |   | Related Service |   |
|                                    |   |                                               |       |   |   |   |   |   |   |   |   |   |
| Total assets                            |   | $                                                  | 12,455,946 |   |   | $ | 721,093 |   |   | $ | 3,045,310 |   |   | $ | 16,222,349 |   |
| Total long - lived assets, net          |   | $                                                  | 2,560,141  |   |   | $ | 499,747 |   |   | $ | 309 |   |   | $ | 3,060,197 |   |
| Total liabilities                       |   | $                                                  | 1,017,644  |   |   | $ | 116,836 |   |   | $ | 9,933 |   |   | $ | 1,144,413 |   |
|                                    |   |                                               |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net revenue from products sold          |   | $                                                  | 2,245,442  |   |   | $ | - |   |   | $ | - |   |   | $ | 2,245,442 |   |
| Revenue from insurance service rendered |   | $                                                  | -          |   |   | $ | 23,173 |   |   | $ | - |   |   | $ | 23,173 |   |
| Revenue from financing interests        |   | $                                                  | -          |   |   | $ | - |   |   | $ | 40,896 |   |   | $ | 40,896 |   |
| Revenue from membership fees            |   | $                                                  | 514,844    |   |   | $ | - |   |   | $ | - |   |   | $ | 514,844 |   |
| Revenue from network service fees       |   | $                                                  | 2,039      |   |   | $ | - |   |   | $ | - |   |   | $ | 2,039 |   |
| Income (loss) from operations           |   | $                                                  | 1,543,428  |   |   | $ | (141,104 | ) |   | $ | 9,304 |   |   | $ | 1,411,628 |   |
| Depreciation expenses                   |   | $                                                  | 103,033    |   |   | $ | 24,518 |   |   | $ | 5 |   |   | $ | 127,556 |   |
| Bank interest income                    |   | $                                                  | 8,540      |   |   | $ | 211 |   |   | $ | 1,513 |   |   | $ | 10,264 |   |
| Non-controlling interest                |   | $                                                  | -          |   |   | $ | (11,468 | ) |   | $ | - |   |   | $ | (11,468 | ) |
| Income tax expenses (benefits)          |   | $                                                  | 396,246    |   |   | $ | (45,422 | ) |   | $ | 4,816 |   |   | $ | 355,640 |   |

|                                    |   | For Fiscal Nine Months Ended December 31, 2009 |      |
|-----------------------------------------|--------|------------------------------------------------|-----------|
|                                    |   | Products Sold                                  |      |   | Insurance Agency |   |   | Financing Interest |   |   | Total |   |
|                                    |   | and Related Service                            |      |   | Related Service |   |   | Related Service (1) |   |
|                                    |   |                                           |      |   |   |   |   |   |   |   |   |   |
| Total assets                            |   | $                                              | 9,186,265 |   |   | $ | 792,432 |   |   | $ | - |   |   | $ | 9,978,697 |   |
| Total long - lived assets, net          |   | $                                              | 2,594,722 |   |   | $ | 515,670 |   |   | $ | - |   |   | $ | 3,110,392 |   |
| Total liabilities                       |   | $                                              | 1,369,625 |   |   | $ | 137,764 |   |   | $ | - |   |   | $ | 1,507,389 |   |
|                                    |   |                                           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net revenue from products sold          |   | $                                              | 4,409,536 |   |   | $ | - |   |   | $ | - |   |   | $ | 4,409,536 |   |
| Revenue from Insurance service rendered |   | $                                              | -         |   |   | $ | 270,119 |   |   | $ | - |   |   | $ | 270,119 |   |
| Income (loss) from operations           |   | $                                              | 658,370   |   |   | $ | (139,578 | ) |   | $ | - |   |   | $ | 518,792 |   |
| Depreciation expenses                   |   | $                                              | 97,266    |   |   | $ | 23,461 |   |   | $ | - |   |   | $ | 120,727 |   |
| Bank interest income                    |   | $                                              | 11,959    |   |   | $ | 470 |   |   | $ | - |   |   | $ | 12,429 |   |
| Interest expenses                       |   | $                                              | 7,497     |   |   | $ | - |   |   | $ | - |   |   | $ | 7,497 |   |
| Non-controlling interest                |   | $                                              | -         |   |   | $ | (14,647 | ) |   | $ | - |   |   | $ | (14,647 | ) |
| Income tax expenses (benefits)          |   | $                                              | 286,905   |   |   | $ | (34,530 | ) |   | $ | - |   |   | $ | 252,375 |   |

----

| (1)   | Vantone Small Financing was established on September 27, 2010. Therefore, there were no financing services for the fiscal nine months ended December 31, 2009. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14 | Concentrations of Business |
|----|----------------------------|

| For The Fiscal Nine Months |   | Sold to Major |      |   | Number of |   |   | Percentage of       |   |
|----------------------------|--------|---------------|-----------|--------|-----------|--------|--------|---------------------|--------|
| Ended December 31,         |   | Customers     |      |   | Customers |   |   | Total Products Sold |   |
| 2010                       |   | $             | 650,100   |   |      |   | 2      |                |   |   | 28.95 | % |
| 2009                       |   | $             | 1,167,982 |   |      |   | 2      |                |   |   | 26.50 | % |

| For The Fiscal Nine Months |   | Revenue from        |    |   |                    |   |   | Percentage of          |   |
|----------------------------|--------|---------------------|---------|--------|-------------------------|--------|--------|------------------------|--------|
| Ended December 31,         |   | Major Insurance Co. |    |   | Number ofInsurance Co.\ |   |   | Total Service Rendered |   |
| 2010                       |   | $                   | 21,684  |   |                    |   | 3      |                   |   |   | 93.57 | % |
| 2009                       |   | $                   | 234,648 |   |                    |   | 1      |                   |   |   | 86.87 | % |

| For The Fiscal Nine Months |   |                           |   |   |                        |   |   | Percentage of            |   |
|----------------------------|--------|--------------------------------|--------|--------|-----------------------------|--------|--------|--------------------------|--------|
| Ended December 31,         |   | Revenue fromFinancing Loan Co. |   |   | Number ofFinancing Loan Co. |   |   | Total Financing Interest |   |
| 2010                       |   | $                              | 37,871 |   |                        |   | 4      |                     |   |   | 92.60 | % |
| 2009                       |   | $                              | -      |   |                        |   | -      |                     |   |   | 0.00 | % |

|                     |   |          |      |   |    |   |   |          |   |
|----------------------------|--------|-----------------|-----------|--------|-----------|--------|--------|-----------------|--------|
| For The Fiscal Nine Months |   | Purchased from  |      |   | Number of |   |   | Percentage of   |   |
| Ended December 31,         |   | Major Suppliers |      |   | Suppliers |   |   | Total Purchased |   |
| 2010                       |   | $               | 932,883   |   |      |   | 4      |            |   |   | 82.44 | % |
| 2009                       |   | $               | 1,203,502 |   |      |   | 3      |            |   |   | 41,92 | % |

----

----

----

|                                                        |   | For Fiscal Three Months Ended December 31, |      |   |        |   |
|-------------------------------------------------------------|--------|--------------------------------------------|-----------|--------|-------------|--------|
|                                                        |   | 2010                                       |      |   | 2009        |   |   | Increase /(Decrease) |   |
|                                                        |   | (Unaudited)                                |      |   | (Unaudited) |   |   |   |   |   |   |   |
|  Revenues                                              |   |                                       |      |   |        |   |   |   |   |   |   |   |
| Products sold                                               |   | $                                          | 1,290,537 |   |        | $      | 480,309 |   |   | $ | 810,228 |   |   |   | 169 | % |
| Sales discount for products                                 |   |                                       | (608,535  | )      |        |   | - |   |   |   | (608,535 | ) |   |   | 100 | % |
| Insurance service rendered                                  |   |                                       | 4,737     |   |        |   | 24,087 |   |   |   | (19,350 | ) |   |   | -80 | % |
| Franchise joining fees                                      |   |                                       | -         |   |        |   | 439 |   |   |   | (439 | ) |   |   | -100 | % |
| VIP membership fees                                         |   |                                       | 253,785   |   |        |   | - |   |   |   | 253,785 |   |   |   | 100 | % |
| Network service fees                                        |   |                                       | 1,031     |   |        |   | - |   |   |   | 1,031 |   |   |   | 100 | % |
| Financing interest                                          |   |                                       | 40,896    |   |        |   | - |   |   |   | 40,896 |   |   |   | 100 | % |
|    Total Revenues                            |   |                                       | 982,451   |   |        |   | 504,835 |   |   |   | 477,616 |   |   |   | 95 | % |
|                                                        |   |                                       |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  Cost of Goods Sold                                    |   |                                       |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Products sold                                               |   |                                       | 243,719   |   |        |   | 302,673 |   |   |   | (58,954 | ) |   |   | -19 | % |
| Insurance service rendered                                  |   |                                       | 2,287     |   |        |   | 20,303 |   |   |   | (18,016 | ) |   |   | -89 | % |
| Franchise joining cost                                      |   |                                       | -         |   |        |   | 22 |   |   |   | (22 | ) |   |   | -100 | % |
| VIP membership cost                                         |   |                                       | 13,852    |   |        |   | - |   |   |   | 13,852 |   |   |   | 100 | % |
| Network service cost                                        |   |                                       | 56        |   |        |   | - |   |   |   | 56 |   |   |   | 100 | % |
| Financing cost                                              |   |                                       | 2,150     |   |        |   | - |   |   |   | 2,150 |   |   |   | 100 | % |
|    Total Cost of Goods Sold                  |   |                                       | 262,064   |   |        |   | 322,998 |   |   |   | (60,934 | ) |   |   | -19 | % |
|                                                        |   |                                       |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  Gross Profit                                          |   |                                       | 720,387   |   |        |   | 181,837 |   |   |   | 538,550 |   |   |   | 296 | % |
|                                                        |   |                                       |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  Operating Expenses                                    |   |                                       |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Selling expenses                                            |   |                                       | 6,063     |   |        |   | 82,857 |   |   |   | (76,794 | ) |   |   | -93 | % |
| Loss on fixed assets disposal                               |   |                                       | -         |   |        |   | 6,043 |   |   |   | (6,043 | ) |   |   | -100 | % |
| Bad debt recoveries                                         |   |                                       | (2,442    | )      |        |   | - |   |   |   | (2,442 | ) |   |   | 100 | % |
| Provision for loan losses                                   |   |                                       | 16,592    |   |        |   | - |   |   |   | 16,592 |   |   |   | 100 | % |
| General and administrative expenses                         |   |                                       | 375,885   |   |        |   | 286,442 |   |   |   | 89,443 |   |   |   | 31 | % |
|  Total Operating Expenses                              |   |                                       | 396,098   |   |        |   | 375,342 |   |   |   | 20,756 |   |   |   | 6 | % |
|                                                        |   |                                       |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  Income (Loss) From Operations                         |   |                                       | 324,289   |   |        |   | (193,505 | )  |   |   | 517,794 |   |   |   | -268 | %  |
|                                                        |   |                                       |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  Other Income                                          |   |                                       |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  Interest income, net                                  |   |                                       | 4,520     |   |        |   | 1,492 |   |   |   | 3,028 |   |   |   | 203 | % |
|  Other income, net                                     |   |                                       | -         |   |        |   | 106,501 |   |   |   | (106,501 | ) |   |   | -100 | % |
|  Total Other Income                                    |   |                                       | 4,520     |   |        |   | 107,993 |   |   |   | (103,473 | ) |   |   | -96 | % |
|                                                        |   |                                       |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  Income (Loss)Before Taxes                             |   |                                       | 328,809   |   |        |   | (85,512 | ) |   |   | 414,321 |   |   |   | -485 | % |
|  Provision for Income Taxes                            |   |                                       | 159,220   |   |        |   | 12,508 |   |   |   | 146,712 |   |   |   | 1173 | % |
|  Income (Loss) Before Non-controlling Interest         |   |                                       | 169,589   |   |        |   | (98,020 | ) |   |   | 267,609 |   |   |   | -273 | % |
|                                                        |   |                                       |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Less: net loss attributable to the non-controlling interest |   |                                       | (4,016    | )      |        |   | (4,423 | ) |   |   | 407 |   |   |   | -9 | % |
|                                                        |   |                                       |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  Net Income (Loss) Attributable to Vantone             |   |                                       |      |   |        |   |   |   |   |   |   |   |   |   |   |   |
|  International Group, Inc.                             |   | $                                          | 173,605   |   |        | $      | (93,597 | ) |   | $ | 267,202 |   |   |   | -285 | % |

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|                      |   | For The Fiscal Nine Months EndedDecember 31, |      |   |     |   |
|-----------------------------|--------|---------------------------------------------------|-----------|--------|--------------------------|--------|
|                      |   | 2010                                              |      |   | 2009                     |   |   | (Decrease)/increase |   |
|                      |   | (Unaudited)                                       |      |   | (Unaudited)              |   |   |   |   |   |   |   |
| Revenues                    |   |                                            |      |   |                   |   |   |   |   |   |   |   |
| Products sold               |   | $                                                 | 3,206,455 |   |                     | $      | 4,407,340 |   |   | $ | (1,200,885 | ) |   |   | -27 | % |
| Sales discount for products |   |                                              | (961,013  | )      |                     |   | - |   |   |   | (961,013 | ) |   |   | 100 | % |
| Insurance service rendered  |   |                                              | 23,173    |   |                     |   | 270,119 |   |   |   | (246,946 | ) |   |   | -91 | % |
| Franchise joining fees      |   |                                              | -         |   |                     |   | 2,196 |   |   |   | (2,196 | ) |   |   | -100 | % |
| VIP membership fees         |   |                                              | 514,844   |   |                     |   | - |   |   |   | 514,844 |   |   |   | 100 | % |
| Network service fees        |   |                                              | 2,039     |   |                     |   | - |   |   |   | 2,039 |   |   |   | 100 | % |
| Financing interest          |   |                                              | 40,896    |   |                     |   | - |   |   |   | 40,896 |   |   |   | 100 | % |
| Total Revenues              |   |                                              | 2,826,394 |   |                     |   | 4,679,655 |   |   |   | (1,853,261 | ) |   |   | -40 | % |
| Cost of Goods Sold          |   |                                              |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Products sold               |   |                                              | 831,530   |   |                     |   | 2,651,825 |   |   |   | (1,820,295 | ) |   |   | -69 | % |
| Insurance service rendered  |   |                                              | 17,821    |   |                     |   | 264,048 |   |   |   | (246,227 | ) |   |   | -93 | % |
| Franchise joining cost      |   |                                              | -         |   |                     |   | 120 |   |   |   | (120 | ) |   |   | -100 | % |
| VIP membership cost         |   |                                              | 28,080    |   |                     |   | - |   |   |   | 28,080 |   |   |   | 100 | % |
| Network service cost        |   |                                              | 111       |   |                     |   | - |   |   |   | 111 |   |   |   | 100 | % |
| Financing cost              |   |                                              | 2,150     |   |                     |   | - |   |   |   | 2,150 |   |   |   | 100 | % |
| Total Cost of Goods Sold    |   |                                              | 879,692   |   |                     |   | 2,915,993 |   |   |   | (2,036,301 | ) |   |   | -70 | % |
| Gross Profit                |   |                                              | 1,946,702 |   |                     |   | 1,763,662 |   |   |   | 183,040 |   |   |   | 10 | % |
|                      |   |                                              |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses          |   |                                              |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |

| Selling expenses                                            |   |   | 11,460    |   |   |   | 287,488   |   |   |   | (276,028 | )      |   |   | -96    | %      |
|-------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|----------|--------|--------|--------|--------|--------|
| Loss on fixed assets disposal                               |   |   | 2,677     |   |   |   | 6,043     |   |   |   | (3,366   | )      |   |   | 100    | %      |
| Bad debt recoveries                                         |   |   | (350,165  | )      |   |   | -         |   |   |   | (350,165 | )      |   |   | 100    | %      |
| Provision for loan losses                                   |   |   | 16,952    |   |   |   | -         |   |   |   | 16,952   |   |   |   | 100    | %      |
| General and administrative expenses                         |   |   | 854,510   |   |   |   | 951,339   |   |   |   | (96,829  | )      |   |   | -10    | %      |
| Total Operating Expenses                                    |   |   | 535,074   |   |   |   | 1,244,870 |   |   |   | (709,796 | )      |   |   | -57    | %      |
| Income From Operations                                      |   |   | 1,411,628 |   |   |   | 518,792   |   |   |   | 892,836  |   |   |   | 172    | %      |
| Other Income (Expenses)                                     |   |   |      |   |   |   |      |   |   |   |     |   |   |   |   |   |
| Interest income, net                                        |   |   | 10,264    |   |   |   | 4,932     |   |   |   | 5,332    |   |   |   | 108    | %      |
| Other (expenses) income, net                                |   |   | (110      | )      |   |   | 107,462   |   |   |   | (103,572 | )      |   |   | -100   | %      |
| Total Other Income                                          |   |   | 10,154    |   |   |   | 112,394   |   |   |   | (102,240 | )      |   |   | -91    | %      |
|                                                        |   |   |      |   |   |   |      |   |   |   |     |   |   |   |   |   |
| Income Before Taxes                                         |   |   | 1,421,782 |   |   |   | 631,186   |   |   |   | 790,596  |   |   |   | 125    | %      |
| Provision for Income Taxes                                  |   |   | 355,640   |   |   |   | 252,375   |   |   |   | 103,265  |   |   |   | 41     | %      |
| Income Before Non-controlling Interest                      |   |   | 1,066,142 |   |   |   | 378,811   |   |   |   | 687,331  |   |   |   | 181    | %      |
| Less: net loss attributable to the non-controlling interest |   |   | (11,468   | )      |   |   | (14,647   | )      |   |   | 3,179    |   |   |   | -22    | %      |
| Net Income Attributable to                                  |   |   |      |   |   |   |      |   |   |   |     |   |   |   |   |   |
| Vantone International Group, Inc.                           |   | $      | 1,077,610 |   |   | $      | 393,458   |   |   | $      | 684,152  |   |   |   | 174    | %      |

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| ● | Implement our direct marketing program, including development of internet commerce, calling center and an online presence;  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| ● | Implement our franchise marketing program, including development of commodity franchise stores;                                  |

| ● | Co-operate with more insurance companies, gain more insurance agency business and development of insurance branches;                                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | Development our financial business to provide various financial products and services to consumers, small businesses, and commercial clients, specially to company’s members to found and operate their own retail stores and insurance branches, which are franchise stores of our company ,and only sale our commodities and insurance products. |

|   |   |
|--------|--------|

| ● | Implement an advertising and marketing program adequate to assure us of substantial market presence. |
|---------|------------------------------------------------------------------------------------------------------|

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| 31.1 | Certification of Chief Executive Officer and Chief Financial Officer of the Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certifications of Chief Executive Officer and Chief Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                    | VANTONE INTERNATIONAL GROUP, INC.                          |
|-------------------------|-----------------------------------------------------------------|
| Date: February 18, 2011 | By: /s/ Honggang Yu                                             |
|                    | Honggang Yu, Chief Executive Officerand Chief Financial Officer |
|                    |                                                            |

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