| Nevada                                                        | 20-2777600                        |
|---------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (IRS Employer Identification No.) |

----

| Large accelerated filer o                                          | Accelerated filer o         |
|--------------------------------------------------------------------|-----------------------------|
| Non-accelerated filer oDo not check if a smaller reporting company | Smaller reporting company x |

----

|   | · | Make several minor, miscellaneous corrections in Item 1. “Business;” |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | Revise the Consolidated Balance Sheet to reclassify advance payments for fixed assets and research and development as non-current assets; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Revise the Consolidated Statements of Operations and Other Comprehensive Income into two separate statements: Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Revise the Statements of Operations to present interest expenses separately from interest income; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | Revise the Consolidated Statements of Stockholders’ Equity to present equity attributable to the parent and equity attributable to the noncontrolling interest separately; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reclassify certain line items in the Consolidated Statement of Cash Flows resulting in a change from net cash provided by operating activities of $2,544,636 for the year ended June 30, 2009 to net cash used in operating activities of $997,734 for the year ended June 30, 2009; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Revise the net increase in cash and cash equivalents for the year ended June 30, 2010 to be $1,108,872 instead of $1,703,967; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | Revise Basis of Presentation under “Note 2 – Summary of Significant Accounting Policies” to include consolidation as a critical accounting policy; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Revise Accounts Receivable under “Note 2 – Summary of Significant Accounting Policies” to include detail policies regarding credit terms provided to customers; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Revise “Note 2 – Summary of Significant Accounting Policies” to include the accounting policies for Advance Payments – Research and Development, Interest Cost Capitalized, Cost of Sales, Value Added Tax, and Consolidation; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Revise “Note 5 – Loans to Unrelated Parties” to identify the unrelated parties; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | Add a footnote for Bank Loan Security Deposits; |
|--------|--------|-------------------------------------------------|

|   | · | Revise “Note 7 – Advance Payments – Research and Development” to state that these amounts are determined to be recoverable; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Revise “Note 9 – Intangible Assets” to include a reconciliation of land use rights to the construction in progress transferred to intangible assets; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Add a footnote for Government Subsidy Income; |
|--------|--------|-----------------------------------------------|

|   | · | Revise “Note 13 – Earnings Per Share” to include a summary of calculations determining  the number of diluted shares for each period presented; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Revise “Note 14 – Stockholders’ Equity and Related Financing Agreements” to include a summary of intangible assets received for ownership; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Revise “Note 15 – Income Taxes” to address the timing of the Company’s payments for income taxes; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | Revise “Note 21 – Subsequent Event” to provide more details regarding the Guaranty Agreement signed on July 5, 2010; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Add a footnote for Parent Only Financial Statements; |
|--------|--------|------------------------------------------------------|

|   | · | Add a footnote for Restatement to Reflect Correction of Accounting Errors; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | Add the words “Restated”, as applicable, to column headings of certain financial tables for the years ended June 30, 2010 and 2009; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Amend and restate, in its entirety, Item 9. “Controls and Procedures,” due to the errors and omissions in the Company’s financial statements, to state that the Company had material weaknesses in its disclosure controls and procedures and internal control over financial reporting at June 30, 2010. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                 |   |                                                                                                                    |   | PAGE   |
|----------------------|--------|-------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                 |   |                                                                                                                    |   |   |
| PART I          |   |                                                                                                                    |   | 2      |
| Item 1.         |   | Business.                                                                                                               |   | 2      |
| Item 1A.        |   | Risk Factors.                                                                                                           |   | 14     |
| Item 1B.        |   | Unresolved Staff Comments.                                                                                              |   | 25     |
| Item 2.         |   | Properties.                                                                                                             |   | 25     |
| Item 3.         |   | Legal Proceedings.                                                                                                      |   | 27     |
|                 |   |                                                                                                                    |   |   |
| PART II         |   |                                                                                                                    |   | 28     |
| Item 5.         |   | Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |   | 28     |
| Item 6.              |   | Selected Financial Data.                                                                                                |   | 29     |
| Item 7.         |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations.                       |   | 30     |
| Item 8.         |   | Financial Statements and Supplementary Data.                                                                            |   | 38     |
| Item 9.         |   | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.                                   |   | 38     |
| Item 9A.        |   | Controls and Procedures.                                                                                                |   | 38     |
| Item 9B.        |   | Other Information.                                                                                                      |   | 39     |
|                 |   |                                                                                                                    |   |   |
| PART III        |   |                                                                                                                    |   | 40     |
| Item 10.        |   | Directors, Executive Officers and Corporate Governance.                                                                 |   | 40     |
| Item 11.        |   | Executive Compensation.                                                                                                 |   | 41     |
| Item 12.        |   | Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters.                        |   | 42     |
| Item 13.        |   | Certain Relationships and Related Transactions, and Director Independence.                                              |   | 43     |
| Item 14.        |   | Principal Accountant Fees and Services.                                                                                 |   | 44     |
|                 |   |                                                                                                                    |   |   |
| PART IV         |   |                                                                                                                    |   | 44     |
| Item 15.        |   | Exhibits, Financial Statement Schedules.                                                                                |   | 44     |
|                 |   |                                                                                                                    |   |   |
| SIGNATURES           |   | 46                                                                                                                      |
| EXHIBIT INDEX        |   | 47                                                                                                                      |
| FINANCIAL STATEMENTS |   | F-1                                                                                                                     |

----

----

----

| Products          |   | Features                                         |   | Applications                                                                                                                                                                                                                             |
|-------------------|--------|--------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|              |   |                                             |   |                                                                                                                                                                                                                                     |
| Traditional Cable |   |                                             |   |                                                                                                                                                                                                                                     |
|              |   |                                             |   |                                                                                                                                                                                                                                     |
| Electric Cable    |   | Thermo-mechanical, electrical and anti-corrosion |   | Used in the telecommunications industry, auto industry, metal refining industry, electrical and petrochemical industry, transportation industry (including electrified railway and urban rail transportation) and construction industry. |

| Specialty Cable                                         |   |                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                   |
|---------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                    |   |                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                   |
| Marine Cable                                            |   | Anti-erosion, anti-stretch and long-life                                                                         |   | Used in various capacities in the shipping industry, including the construction of ships, on-water oil platforms and coastal marine projects.  It is also capable of meeting other needs on a ship, including power transmission, signal transmission of lighting and information processing equipment, and control systems. |
|                                                    |   |                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                   |
| Mine Specialty Cable                                    |   | Temperature resistant, corrosion protection, soft, low-temperature resistant                                     |   | Used by mining companies.                                                                                                                                                                                                                                                                                                              |
|                                                    |   |                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                   |
| Petrochemical Cable                                     |   | Corrosion protection, long-life, high stretch resistance feature                                                 |   | Used in the petrochemical industry and in offshore construction.                                                                                                                                                                                                                                                                       |
|                                                    |   |                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                   |
| Other Specialty Cable                                   |   | High-temperature resistant, low-temperature resistant, hard-wear, acid-bases resistant, age-resistant, long-life |   | Used in steelwork and at iron ore yards.                                                                                                                                                                                                                                                                                               |
|                                                    |   |                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                   |
| Switch Appliances                                       |   |                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                   |
|                                                    |   |                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                   |
| High-low-voltage distribution cabinet  switch |   | Power grids under 20KV                                                                                           |   | Used between transformer room and production workshop.                                                                                                                                                                                                                                                                                 |
|                                                    |   |                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                   |
| Crane electronic control switch                         |   | Easy to  operate, convenient to  maintain, and reliable                                      |   | Used on various cranes.                                                                                                                                                                                                                                                                                                                |

----

|                  |   | Percentage of Total Sales for Fiscal Years Ended June 30, |          |
|-----------------------|--------|--------------------------------------------------------------------------------------------------------|---------------|
| Products              |   | 2010                                                                                                   |          |   | 2009 |   |   | 2008 |   |
|                  |   | USD                                                                                                    |          |   | Percentage |   |   | USD |   |   | Percentage |   |   | USD |   |   | Percentage |   |
| Traditional Cable     |   |                                                                                                   | 12,938,647    |   |   |   | 41.39 | % |   |   | 10,581,298.57 |   |   |   | 54.8 | % |   |   | 10,006,487.50 |   |   |   | 50.0 | % |
|                  |   |                                                                                                   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Specialty Cable       |   |                                                                                                   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marine Cable          |   |                                                                                                   | 6,589,038     |   |   |   | 21.08 | % |   |   | 1,274,389.97 |   |   |   | 6.6 | % |   |   | 1,280,830.40 |   |   |   | 6.4 | % |
| Petrochemical Cable   |   |                                                                                                   | 5,133,764     |   |   |   | 16.42 | % |   |   | 1,409,552.55 |   |   |   | 7.3 | % |   |   | 900,583.88 |   |   |   | 4.5 | % |
| Mine Specialty Cable  |   |                                                                                                   | 5,862,434     |   |   |   | 18.75 | % |   |   | 3,784,552.04 |   |   |   | 19.6 | % |   |   | 6,904,476.38 |   |   |   | 34.5 | % |
| Total Specialty Cable |   |                                                                                                   | 17,585,236    |   |   |   | 56.25 | % |   |   | 6,468,494.56 |   |   |   | 33.50 | % |   |   | 9,085,890.66 |   |   |   | 45.40 | % |
|                  |   |                                                                                                   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Cable           |   |                                                                                                   | N/A           |   |   |   | N/A |   |   |   | 2,259,145.87 |   |   |   | 11.7 | % |   |   | 920,596.84 |   |   |   | 4.6 | % |
|                  |   |                                                                                                   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Switch Appliances     |   |                                                                                                   | 734,778       |   |   |   | 2.35 | % |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |
|                  |   |                                                                                                   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                 |   |                                                                                                   | 31,258,662.00 |   |   |   | 100 | % |   |   | 19,308,939.00 |   |   |   | 100 | % |   |   | 20,012,975.00 |   |   |   | 100 | % |

----

----

|    |   |                                    |   |                         |          |   | Percentage    |   |
|---------|--------|-----------------------------------------|--------|------------------------------|---------------|--------|---------------|--------|
|    |   |                                    |   |                         |          |   | of Total |   |
| Ranking |   | Suppliers                          |   | Total Amount (USD) |          |   | Purchases     |   |
|    |   |                                    |   |                         |          |   |          |   |
| 1       |   | Tianjin Huabei Cable Factory            |   |                         | 10,235,535.32 |   |          |   | 43.0 | % |
|    |   |                                    |   |                         |          |   |          |   |   |   |
| 2       |   | Yingkou Genorio Industrial Co., Ltd.    |   |                         | 2,923,471.82  |   |          |   | 12.29 | % |
|    |   |                                    |   |                         |          |   |          |   |   |   |
| 3       |   | Shenyang Tailida Copper Co., Ltd.       |   |                         | 2,799,529.91  |   |          |   | 11.77 | % |
|    |   |                                    |   |                         |          |   |          |   |   |   |
| 4       |   | Shanyang Metal Co., Ltd.                |   |                         | 1,212,324.14  |   |          |   | 5.1 | % |
|    |   |                                    |   |                         |          |   |          |   |   |   |
| 5       |   | Dalian Lian Zhong Fu Hai Tong Co., Ltd. |   |                         | 1,160,963.75  |   |          |   | 4.88 | % |

| Customer Name                                     |   | Product        |   | Sales (USD) |      |   | % of Total Sales |   |
|--------------------------------------------------------|--------|----------------|--------|------------------|-----------|--------|---------------------------------|--------|
| Dalian Huasheng Electrical Installation Co., Ltd.      |   | Electric Cable |   |             | 2,894,472 |   |                            |   | 10.03 | % |
| COSCO Dalian Shipyard Co., Ltd.                        |   | Marine Cable   |   |             | 2,755,916 |   |                            |   | 9.55 | % |
| Tianjin Xingang Shipbuilding Heavy Industry Co., Ltd.  |   | Marine Cable   |   |             | 2,607,949 |   |                            |   | 9.03 | % |
| Angang Steel Co., Ltd. Bayuquan Steel Branch           |   | Electric Cable |   |             | 2,593,340 |   |                            |   | 8.98 | % |
| China Nuclear Power Engineering Co., Ltd. North Branch |   | Mining Cable   |   |             | 2,406,732 |   |                            |   | 8.34 | % |

| Custom Name                                          |   | Product         |   | Sales (USD) |      |   | % of Total Sales |   |
|-----------------------------------------------------------|--------|-----------------|--------|------------------|-----------|--------|---------------------------------|--------|
| Dalian Huasheng Electrical Installation Co., Ltd.         |   | Electric Cable  |   |             | 4,108,709 |   |                            |   | 19.49 | % |
| Ningxia meili Paper Industry Co., Ltd.                    |   | Electric Cable  |   |             | 1,513,689 |   |                            |   | 7.18 | % |
| Dalian Binshan Group Air Condition Installation Co., Ltd. |   | Electric Cable  |   |             | 1,317,818 |   |                            |   | 6.25 | % |
| CCEED Industrial Equipment Installation Co. Ltd.          |   | Electric Cable  |   |             | 1,156,218 |   |                            |   | 5.48 | % |
| Dalian Binshan Group Co., Ltd.                            |   | Specialty Cable |   |             | 752,702   |   |                            |   | 3.57 | % |

----

----

----

| Name of Patent                                                                        |         | TypeofPatent  |         | Patent No.  |         | Inventor’sName                                 |   | Date ofApplication |   | Date ofPublicationand Term                     |
|-------------------------------------------------------------------------------------------------|--------------|---------------|--------------|------------------|--------------|------------------------------------------------------|--------|-------------------------|--------|----------------------------------------------------------|
| Intelligent reactive power compensation for automatic screen                                    |         | Utility model |         | ZL200720184912.4 |         | Dalian Befut Wire & Cable Manufacturing Co., Ltd |   | 12/14/2007              |   | 10/15/2008; Term: 10 years from 10/15/2008 to 10/14/2018 |
|                                                                                            |         |          |         |             |         |                                                 |   |                    |   |                                                     |
| Automatic Protection Ni-mh Battery Screen                                                  |         | Utility model |         | ZL200720184913.9 |         |                                                 |   | 12/14/2007              |   | 01/07/2009Term: 10 years from 01/07/2009 to 01/06/2019   |
|                                                                                            |         |          |         |             |         |                                                 |   |                    |   |                                                     |
| New tide-proof power cable                                                                      |         | Utility model |         | ZL200820015254.0 |         | Guoxiang Liu,Hongming Wu,Ying Zhao and Hongbo Cao    |   | 08/29/2008              |   | 06/10/2009Term: 10 years from 06/10/2009 to 06/09/2019   |
|                                                                                            |         |          |         |             |         |                                                 |   |                    |   |                                                     |
| Sonar watertight cable                                                                          |         | Utility model |         | ZL200820015255.5 |         |                                                 |   | 08/29/2008              |   | 06/10/2009Term: 10 years from 06/10/2009 to 06/09/2019   |
|                                                                                            |         |          |         |             |         |                                                 |   |                    |   |                                                     |
| Environmentally friendly wire & cable of low-smoke, halogen-free, fire-retardant insulation |         | Utility model |         | ZL200820015256.X |         |                                                 |   | 08/29/2008              |   | 06/10/2009Term: 10 years from 06/10/2009 to 06/09/2019   |
|                                                                                            |         |          |         |             |         |                                                 |   |                    |   |                                                     |
| Mine fire-retardant rubber branch of the pre-cable                                              |    | Utility model |    | ZL200820015332.7 |    |                                                 |   | 09/01/2008              |   | 06/10/2009Term: 10 years from 06/10/2009 to 06/09/2019   |
|                                                                                            |         |          |         |             |         |                                                 |   |                    |   |                                                     |
| High-temperature plastic extrusion die-tool                                                     |         | Utility model |         | ZL200820015331.2 |         | Guoxiang Liu,Hongming Wu,Ying Zhao and Hongbo Cao    |   | 08/29/2008              |   | 08/12/2009Term: 10 years from 08/12/2009 to 08/12/2019   |
|                                                                                            |         |          |         |             |         |                                                 |   |                    |   |                                                     |

----

| Name of Patent                                                                   |   | Type ofPatent |   | Patent No. |   | Inventor’sName |   | Date ofApplication |   | Date ofAcceptanceof theApplicationby the PRCIP Office |   | Status ofApplication |
|--------------------------------------------------------------------------------------------|--------|--------------------|--------|-----------------|--------|----------------------|--------|-------------------------|--------|--------------------------------------------------------------------------------|--------|---------------------------|
| Pre-fabricated branched cable                                                              |   | Utility model      |   | 200920247890.0  |   | Hongbo Cao           |   | 11/06/2009              |   | 11/06/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Thermocouple compensation cable with flame retardant                                       |   | Utility model      |   | 200920247891.5  |   |                 |   | 11/06/2009              |   | 11/06/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| BXVW outdoor weather-proof sheathed cable                                                  |   | Utility model      |   | 200920247892.X  |   |                 |   | 11/06/2009              |   | 11/06/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Measurement and computer input cable                                                       |   | Utility model      |   | 200920247894.9  |   |                 |   | 11/06/2009              |   | 11/06/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Fluoroplastic -46 insulated shielded wire                                                  |   | Utility model      |   | 200920247889.8  |   |                 |   | 11/06/2009              |   | 11/06/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Halogen-free flame-retardant thermocouple compensation cable                               |   | Utility model      |   | 200910219723.X  |   | Hongbo Cao           |   | 11/10/2009              |   | 11/10/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Flame-retardant BXVW outdoor weather-proof sheathed cable                                  |   | Utility model      |   | 200910219732.9  |   |                 |   | 11/10/2009              |   | 11/10/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Flame-retardant silicon rubber insulated and sheathed measurement and computer input cable |   | Utility model      |   | 200910219731.4  |   |                 |   | 11/10/2009         |   | 11/10/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| High-strength silicone rubber motor lead wire                                              |   | Invention model    |   | 200910219726.3  |   |                 |   | 11/10/2009              |   | 11/10/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| High-strength silicone rubber motor lead wire                                              |   | Utility model      |   | 200910219726.4  |   |                 |   | 11/10/2009              |   | 11/10/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Aviation fluoroplastic -46 insulated, shielded wire                                        |   | Utility model      |   | 200910219727.8  |   |                 |   | 11/10/2009              |   | 11/10/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Flame-retardant, fire-resistant, halogen-free pre-fabricated branched cable                |   | Utility model      |   | 200910219719.3  |   |                 |   | 11/10/2009              |   | 11/10/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Shielded instrumentation cable for communication equipment                                 |   | Utility model      |   | 200910219842.5  |   | Hongbo Cao           |   | 11/13/2009              |   | 11/13/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Shielded signal cable for metro communication                                              |   | Utility model      |   | 200910219843.X  |   |                 |   | 11/13/2009              |   | 11/13/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| A new type of wind cable                                                                   |   | Utility model      |   | 200910219840.6  |   |                 |   | 11/13/2009              |   | 11/13/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Safety explosion-proof type computer input cables                                          |   | Utility model      |   | 200910219841.0  |   |                 |   | 11/13/2009              |   | 11/13/2009                                                                     |   | Patent Pending            |
| A new type of control cable for nuclear power station                                      |   | Utility model      |   | 200910219914.6  |   | Hongbo Cao           |   | 11/17/2009              |   | 11/17/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| New type wind cable                                                                        |   | Utility model      |   | 200920248142.4  |   |                 |   | 11/17/2009              |   | 11/17/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Computer input cables                                                                      |   | Utility model      |   | 200920248147.7  |   |                 |   | 11/17/2009              |   | 11/17/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Flexible shielded control cable for marine engine                                          |   | Invention model    |   | 200910219917.X  |   |                 |   | 11/17/2009              |   | 11/17/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Flexible shielded control cable for marine engine                                          |   | Utility model      |   | 200910219917.5  |   |                 |   | 11/17/2009              |   | 11/17/2009                                                                     |   | Patent Pending            |
|                                                                                       |   |               |   |            |   |                 |   |                    |   |                                                                           |   |                      |
| Shielded signal cable for metro communication                                              |   | Utility model      |   | 200920248141.X  |   |                 |   | 11/17/2009              |   | 11/17/2009                                                                     |   | Patent Pending            |

----

|   | · | We have a strong research and development team.   We believe we have an exceptional  research and development team with highly skilled personnel, many of whom are former employees of the Shenyang Electric Cable Factory, a state owned enterprise that was formerly one of Asia’s largest cable companies. Our team also includes experts from Dalian Science and Technology University. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | · | We have the unique ability to produce certain types of specialty cable .  By January 2011, we expect to be one of a few manufacturers in China producing carbon fiber composite cable.  The patent for carbon fiber composite cable is currently owned by one of the principal shareholders of Dalian Yuansheng, Dalian Befut’s recently acquired subsidiary, and will be transferred to Dalian Yuansheng.  Additionally, we are the only company in the PRC cable and wire industry holding a patent for watertight cable.  These specialty cable products are both high-margin products with great market potential in the cable and wire industry. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We have modern production facilities.   As of the date of this report, our Phase I Changxing Facility is now in operation has greatly increased our production capacity. We believe that such expansion may provide a significant advantage in terms of production scale and capacity in northeastern China.  The addition of the Phase II Changxing Facility will make our production capabilities even more competitive. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We have a strong internal sales force.   We primarily sell our products to our customers through our internal sales force of 44 people with minimal reliance on distributors or outside sales personnel.  We believe this approach enables us to enjoy lower sales costs and higher profit margins than many of our competitors. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Our geographic location allows us to better serve our regional customer base.   There are currently more than 100 companies located in northern China that, on average, purchase at least $7 million worth of specialty cable per year. As most of our competitors are located in southern China, our geographic location provides us with a significant advantage over them with respect to attracting large customers in northern China due to lower transportation costs, regional relationships and similar cultural backgrounds. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

|   | · | loss of key employees or customers; |
|--------|--------|-------------------------------------|

|   | · | possible inconsistencies in standards, controls, procedures and policies among the combined companies and the need to implement company-wide financial, accounting, information, production and other systems; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | failure to maintain the quality of products that the companies have historically provided; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | failure to effectively coordinate research and development efforts; |
|--------|--------|---------------------------------------------------------------------|

|   | · | effectively coordinating sales, marketing and distribution functions, including the cross-selling of products; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

----

|   | · | the need to coordinate geographically diverse organizations, and |
|--------|--------|------------------------------------------------------------------|

|   | · | the diversion of management's attention from our day-to-day business as a result of the need to deal with any disruptions and difficulties and the need to add management resources to do so. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in laws, regulations or their interpretation; |
|--------|--------|-------------------------------------------------------|

|   | · | confiscatory taxation; |
|--------|--------|------------------------|

|   | · | restrictions on currency conversion, imports or sources of supplies; and |
|--------|--------|--------------------------------------------------------------------------|

|   | · | expropriation or nationalization of private enterprises. |
|--------|--------|----------------------------------------------------------|

----

----

----

----

----

|   | · | actual or anticipated fluctuations in our quarterly operations results; |
|--------|--------|-------------------------------------------------------------------------|

|   | · | changes in financial estimates by securities research analysts; |
|--------|--------|-----------------------------------------------------------------|

|   | · | conditions in foreign or domestic cable and wire industry; |
|--------|--------|------------------------------------------------------------|

|   | · | changes in the economic performance or market valuations of other companies in the same industry; |
|--------|--------|---------------------------------------------------------------------------------------------------|

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

|   | · | announcements by us or our competitors of new products, acquisitions, strategic partnerships, joint ventures or capital commitments; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | addition or departure of key personnel; |
|--------|--------|-----------------------------------------|

|   | · | fluctuations of exchange rates between the RMB and the U.S. dollar; |
|--------|--------|---------------------------------------------------------------------|

|   | · | intellectual property litigation; |
|--------|--------|-----------------------------------|

|   | · | general economic or political conditions in the PRC; and |
|--------|--------|----------------------------------------------------------|

|   | · | Other events or factors, many of which are beyond our control. |
|--------|--------|----------------------------------------------------------------|

----

|   | · | limit our ability to pay dividends or require us to seek consent for the payment of dividends; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | increase our vulnerability to general adverse economic and industry conditions; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | require us to dedicate a portion of our cash flow from operations to payments on our debt, thereby reducing the availability of our cash flow to fund capital expenditures, working capital and other general corporate purposes; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | limit our flexibility in planning for, or reacting to, changes in our business and our industry. |
|--------|--------|--------------------------------------------------------------------------------------------------|

----

| Nature of theProperty |   | Property Locationand ProductionSegment                  |   | Address                                                                                              |   | Area (squaremeters) |   | Ownership Status and Term                                                                                                                                      |
|---------------------------------|--------|-------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Land                            |   | Dalian  Switch Appliance Products                            |   | Qipanzi County, Gezhenbao Town of Ganjingzi District, Dalian                                         |   | 14,040                   |   | Leased from Dalian Wanbao Industrial Co. Ltd. at an aggregate rent of RMB2,500,000 (approximately $367,647) for 50 years from Oct. 1 2001 through Oct. 1, 2051                |
| Building                        |   | Dalian Switch Appliance Products (Warehouse)                 |   | Qipanzi County, Gezhenbao Town of Ganjingzi District, Dalian                                         |   | 661.5                    |   | Building Ownership Certificate: Dagan Cun Fang Zi Di 205010073                                                                                                                |
| Building                        |   | Dalian  Switch Appliance Products (Office)                   |   | Qipanzi County, Gezhenbao Town of Ganjingzi District, Dalian                                         |   | 1,531.05                 |   | Building Ownership Certificate : Dagan Cun Fang Zi Di 205010074                                                                                                               |
| Building                        |   | Dalian  Switch Appliance Products (Workshop)                 |   | Qipanzi County, Gezhenbao Town of Ganjingzi District, Dalian                                         |   | 4,014.72                 |   | Building Ownership Certificate : Dagan Cun Fang Zi Di 205010075                                                                                                               |
| Building                        |   | Dalian    Office                                   |   | No.4-12, 17-20, 27 Floor, Liang Jiu International Building,No.5 Heyi Street, Xigang District, Dalian |   | 685.62                   |   | Lease from Liaoning Ning’an Real Estate Co., Ltd. at an aggregate rent of RMB315,000 (approximately $46,323) in total for 3 years from Feb.1, 2010 through Feb. 1, 2013 |
| Land                            |   | Dalian    Traditional and Specialty Cable          |   | Xingang Village, Sub-street office, Changxing Island, Dalian                                         |   | 120,953.0           |   | Land use right (Certificate #:Da Guo Yong (2009) No. 06067) expires on Sep. 9, 2056                                                                                           |
| Land                            |   | Dalian    Traditional and Specialty Cable          |   | Xingang Village, Sub-street office, Changxing Island, Dalian                                         |   | 30,290.0            |   | Land use right (Certificate #:Da Guo Yong (2009) No. 06066) expires on Sep. 9, 2056                                                                                           |
| Building                        |   | Dalian   Traditional and Specialty Cable (Doorman Room) |   | No.20, Shimen Street, Lingang Industrial District, Changxing Island, Dalian                          |   | 63.96               |   | Building Ownership Certificate# 2009001864                                                                                                                                    |
| Building                        |   | Dalian Traditional and Specialty Cable (Factory)             |   | No.20, Shimen Street, Lingang Industrial District, Changxing Island, Dalian                          |   | 2,744.56                 |   | Building Ownership Certificate# 2009001865                                                                                                                                    |
| Building                        |   | Dalian Traditional and Specialty Cable (Factory)             |   | No.20, Shimen Street, Lingang Industrial District, Changxing Island, Dalian                          |   | 3,836.56            |   | Building Ownership Certificate# 2009001866                                                                                                                                    |
| Building                        |   | Dalian  Traditional and Specialty Cable (Factory)            |   | No.20, Shimen Street, Lingang Industrial District, Changxing Island, Dalian                          |   | 3,836.56            |   | Building Ownership Certificate# 2009001867                                                                                                                                    |
| Building                        |   | Dalian  Traditional and Specialty Cable (Office)             |   | No.20, Shimen Street, Lingang Industrial District, Changxing Island, Dalian                          |   | 2,001.63                 |   | Building Ownership Certificate# 2009001868                                                                                                                                    |
| Building                        |   | Dalian  Traditional and Specialty Cable (Office)             |   | No.8, Qifeng Street, Lingang Industrial District, Changxing Island, Dalian                           |   | 8,508.70                 |   | Building Ownership Certificate# 2009001869                                                                                                                                    |
| Building                        |   | Dalian  Traditional and Specialty Cable (Warehouse)          |   | No.8, Qifeng Street, Lingang Industrial District, Changxing Island, Dalian                           |   | 5,332.50                 |   | Building Ownership Certificate# 2009001870                                                                                                                                    |
| Building                        |   | Dalian  Traditional and Specialty Cable (Factory)            |   | No.8, Qifeng Street, Lingang Industrial District, Changxing Island, Dalian                           |   | 7,293.27                 |   | Building Ownership Certificate# 2009001871                                                                                                                                    |
| Building                        |   | Dalian  Traditional and Specialty Cable (Factory)            |   | No.8, Qifeng Street, Lingang Industrial District, Changxing Island, Dalian                           |   | 9,526.87                 |   | Building Ownership Certificate# 2009001872                                                                                                                                    |

----

| Loan Amount               |   | LendingInstitution                 |   | ContractPeriod                       |   | Type ofGuarantee |   | Interest  Rate                                                                                                                                                                |   | Property under Mortgage                                                                                                                                                                                                                                                   |
|--------------------------------|--------|------------------------------------|--------|--------------------------------------|--------|-----------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| RMB100 million ($14.7 million) |   | China Development Bank Corporation |   | November 2, 2009 to November 1, 2016 |   | Mortgage              |   | The interest rate is a variable rate  equal to 5% per annum above thefloating base interest for loans of the  same term promulgated by the PRC’scentral bank. |   | Dalian Befut’s land :(Certificate #:Da Guo Yong(2009) No. 06066 and  Da Guo Yong(2009) No. 06067)  Dalian Befut’s buildings: ( Certificate# 2009001864,2009001865, 2009001866,2009001867, 2009001868,2009001869, 2009001870,2009001871, 2009001872) |

----

|                                  |   | High Bid |   |   | Low Bid |   |
|---------------------------------------|--------|---------------|--------|--------|--------------|--------|
| Fiscal Year Ended June 30, 2010  |   |          |   |   |         |   |
| 06/30/2010                            |   | $             | -      |   |         | $      | - |   |
| 03/31/2010                            |   | $             | 0.35   |   |         | $      | 0 |   |
| 12/31/2009                            |   | $             | 0.42   |   |         | $      | 0.1 |   |
| 09/30/2009                            |   | $             | 0.1    |   |         | $      | 0 |   |
|                                  |   |          |   |   |         |   |
| Fiscal Year Ended June 30, 2009  |   |          |   |   |         |   |
| 06/30/2009                            |   | $             | 0.10   |   |         | $      | 0.00 |   |
| 03/31/2009                            |   | $             | 0.10   |   |         | $      | 0.03 |   |
| 12/31/2008                            |   | $             | 0.13   |   |         | $      | 0.025 |   |
| 09/30/2008                            |   | $             | 0.20   |   |         | $      | 0.10 |   |

----

----

----

----

|                                                                    |   | Fiscal year ended |       |   |              |   |
|-------------------------------------------------------------------------|--------|-----------------------------|------------|--------|-------------------|--------|
| All numbers in thousands except % numbers |   | June 30,2010           |       |   | June 30,2009 |   |   | % Change |   |
|                                                                    |   |                        |       |   |              |   |   |   |   |
| Sales                                                                   |   | $                           | 31,259     |   |              | $      | 19.309 |   |   |   | 62 | % |
| Cost of sales                                                           |   | $                           | 22,957     |   |              | $      | 14,102 |   |   |   | 63 | % |
| Gross profit                                                            |   | $                           | 8,302      |   |              | $      | 5,207 |   |   |   | 59 | % |
| Total operating expenses                                                |   | $                           | 3,962      |   |              | $      | 1,871 |   |   |   | 112 | % |
| Total other income/(expenses)                                           |   | $                           | 964        |   |              | $      | (202 | ) |   |   | 577 | % |
| Net income                                                              |   | $                           | 4,512      |   |              | $      | 2,259 |   |   |   | 98 | % |
| Gross profit margin                                                     |   |                        | 27         | %      |              |   | 27 | % |   |   | 0 | % |
| Basic earnings per share                                                |   | $                           | 0.15       |   |              | $      | 0.08 |   |   |   | 87.5 | % |
| Diluted earnings per share                                              |   | $                           | 0.15       |   |              | $      | 0.08 |   |   |   | 87.5 | % |
| Weighted average number of common shares outstanding:                   |   |                        |       |   |              |   |   |   |   |   |   |   |
| Basic                                                                   |   |                        | 29,545,797 |   |              |   | 29,488,341 |   |   |   | 0.2 | % |
| Diluted                                                                 |   |                        | 30,110,241 |   |              |   | 29,720,171 |   |   |   | 1.3 | % |

----

----

|   | · | We have invested $5.5 million to purchase approximately150,000 square meters of land (including the land reserved for the construction of the Phase II Changxing Facility) and $14.5 million on the construction of the Phase I Changxing Facility, which has a maximum annual production capacity of 4,000 km. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We have invested approximately $9 million in the purchase of 20 sets of new, technologically advanced manufacturing equipment used in the production of various specialty cable. These sets of equipment, in addition to over 50 sets of manufacturing equipment we already own, should meet most of the needs of our development plan to maximize the production capacity of the Phase I Changxing Facility and generate an annual revenue of over $150 million in the next three years. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Among our customer base of more than 500 customers, there are at least 30 “large” customers with average annual specialty cable orders of over $7 million. Prior to fiscal 2010, we had several large customers, but due to our production limitations, we were unable to accept large-volume orders from such customers. Now that the Phase I Changxing Facility is operational, we have a total annual production capacity of 2,400 km of cable and can meet large-volume orders for specialty cable. Since early 2010, we focused our sales strategy on customers with large-volume orders. We estimate that in fiscal 2011, we will accept large-volume orders (more than $700,000 each) from 37 clients, including 11 petro-chemical companies, 16 mining and metallurgical companies, 5 nuclear power plants and 5 shipbuilding companies. These 37 clients are expected to generate sales of approximately $45 million in fiscal 2011, which is expected to represent 80% of our sales. At the same time, we plan to develop at least 10 new “large” customers each year. There are currently more than 100 companies located in northern China with average annual specialty cable requirements of over $7 million.  As most of our competitors are located in southern China, our geographic location provides us with a significant advantage over them with respect to attracting large customers in northern China because of lower transportation costs, regional relationships, and similar cultural backgrounds. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | At June 30, 2010, our working capital was approximately $4.8 million, which we believe to be sufficient to meet the financing needs of our recent developments. In 2009, we secured a $14.6 million long-term loan from China Development Bank Corporation, primarily to finance the Changxing Island Project. To support the high level of growth we expect in fiscal 2011, we intend to seek debt and/or equity financing in the range of $20 million if we can obtain terms acceptable to us. Proceeds will be used for strategic acquisitions and working capital needs. If we are unsuccessful obtaining such financing, we still anticipate organic growth from operations and will rely on our working capital to fund our growth.” |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We will continue to consider strategic acquisitions of or investments in companies that complement our growth strategies and expand our product offerings. For example, Befut Zhong Xing, acquired in July 2009, contributed approximately 2.7% of our revenues in the year ended June 30, 2010. Dalian Befut’s recently acquired subsidiary, Dalian Yuansheng, is expected to provide Dalian Befut with the conductive carbon fiber raw materials for the production of carbon fiber composite cable products. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (dollars in thousands, except ratios) |   | June 30,2010 |   |   | June 30,2009 |   |
|-----------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                                                      |   |              |   |   |              |   |
| Cash and cash equivalents and restricted cash             |   | $                 | 2,500  |   |              | $      | 796 |   |
|                                                      |   |              |   |   |              |   |   |   |
| Working capital                                           |   | $                 | 4,833  |   |              | $      | 6,435 |   |
|                                                      |   |              |   |   |              |   |   |   |
| Ratio of current assets to current liabilities            |   | 1.4:1             |   |   | 1.5:1             |   |

|                                                          |   | For the Fiscal Year Ended |    |
|---------------------------------------------------------------|--------|-----------------------------------------------|---------|
|  (dollars in thousands)                        |   | June 30, 2010                       |    |   | June 30, 2009 |   |
| Net cash provided by (used in) operating activities           |   | $                                             | 7,568   |   |   | $ | (998) |   |
| Net cash used in investing activities                         |   | $                                             | (13,853 | ) |   | $ | (10,712 | ) |
| Net cash provided by financing activities                     |   | $                                             | 7,372   |   |   | $ | 11,494 |   |
| Net increase in cash and cash equivalents and restricted cash |   | $                                             | 1,109   |   |   | $ | (143) |   |

----

| Creditors              |   | Loan Amount |       |   | Interest Rate |   |   | Term   |   |   Maturity Date   |
|------------------------|--------|------------------|------------|--------|--------------------|--------|--------|--------|--------|----------------------------------|
|                   |   |             |       |   |               |   |   |   |   |                             |
| Harbin Bank            |   | $                | 2,946,000  |   |               |   | 6.372  | %      |   |    1 year         |   |     09/15/10 |
|                   |   |             |       |   |               |   |   |   |   |                             |   |   |
| Bank of Dalian         |   | $                | 2,356,800  |   |               |   | 6.903  | %      |   |  1 year                     |   |    10/29/10 |
|                   |   |             |       |   |               |   |   |   |   |                             |   |   |
| Bank of East Asia      |   | $                | 736,500    |   |               |   | 6.318  | %      |   |     6 months |   |   12/25/10 |
|                   |   |             |       |   |               |   |   |   |   |                             |   |   |
| China Development Bank |   | $                | 14,730,000 |   |               |   | 6.237  | %      |   |    7 years        |   |     11/01/16 |

| (dollars)                  |   | June 30, 2010 |            |   | June 30, 2009 |   |
|----------------------------|--------|-------------------------|-----------------|--------|-------------------------|--------|
|    Category |   |                    |            |   |                    |   |
| Raw materials              |   | $                       | 1,093,193       |   |                    | $      | 400,343 |   |
| Work-in-process            |   |                    | 323,275         |   |                    |   |  60,703 |   |
| Finished goods             |   |                    | 1,127,321       |   |                    |   | 892,486 |   |
| Total inventories          |   | $                       |  2,543,789 |   |                    | $      | 1,353,532 |   |

----

----

|   | A. | The total equity investment at risk in the legal entity to be consolidated is insufficient to permit the entity to finance its activities without additional subordinated financial support from other parties, including equity holders; or |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | As a group, holders of the equity investment at risk lack any one of the following characteristics of a controlling financial interest: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The power, through voting rights or similar rights to direct the activities of an entity that most significantly impact that entity’s economic performance. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The obligation to absorb the expected losses of the legal entity. Such an obligation does not exist if the shareholders/investors are directly or indirectly protected from losses or are guaranteed a return on their investment by the legal entity itself or by other parties involved with the legal entity. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The right to receive expected residual returns of the legal entity. Such right is not considered to be present if the residual returns are capped by the legal entity's governing documents or by other arrangements with other variable interest holders or the legal entity itself. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | Establishing policies and procedures of transaction level and type to improve our internal control environment; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------|

|   | • | Implementing a financial closing process check list including major book closure steps to perform consolidation and reviews; and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------|

|   | • | Recruiting qualified accounting professionals with sufficient US GAAP knowledge to enhance the quality of our financialreporting preparation. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Name       |   | Age |   | Title                                                          |   | Director or Officer Since  |
|------------|--------|-----|--------|----------------------------------------------------------------|--------|-------------------------------------------|
| Hongbo Cao |   | 43  |   | Chairman of the Board, Chief Executive Officer and President   |   | March 13, 2009                            |
| Mei Yu     |   | 39  |   | Director, Chief Financial and Accounting Officer and Treasurer |   | March 13, 2009                            |
| Haiyang Lu |   | 31  |   | Secretary                                                      |   | March 13, 2009                            |
| Yining Xia |   | 48  |   | Former Director                                                |   | March 13, 2009 – September 23, 2010 |

----

| Name                        |   | Reporting Event                                                               |
|-----------------------------|--------|------------------------------------------------------------------------------------|
|                        |   |                                                                               |
| Yining Xia, Former Director |   | Form 4 reporting the our repayment of certain convertible notes on March 12, 2010. |

----

| Name andPrincipalPosition |   | FiscalYear  |   | Salary($) |   |   | Bonus($) |   |   | StockAwards($) |   |   | OptionAwards($) |   |   | Non-equityIncentivePlanCompensation($) |   |   | Change inPension ValueandNonqualifiedDeferredCompensationEarnings($) |   |   | All OtherCompensation($) |   |   | Total($) |   |
|--------------------------------|--------|-------------|--------|-----------|--------|--------|----------|--------|--------|----------------|--------|--------|-----------------|--------|--------|----------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|--------|-------------------------------|--------|--------|----------|--------|
| Hongbo Cao                     |   |   2010 |   | $         | 35,294 |   |     |   | -0-    |           |   |   | -0-             |   |   |                                   | -0-    |   |                                                                           |   | -0-    |                          |   |   | -0-      |   |   |   | -0- |   |   | $ | 35,294 |   |
| (President and Chief           |   | 2009        |   | $         | 35,136 |   |     |   | -0-    |           |   |   | -0-             |   |   |                                   | -0-    |   |                                                                           |   | -0-    |                          |   |   | -0-      |   |   |   | -0- |   |   | $ | 35,016. |   |
| Executive Officer )            |   |        |   |      |   |   |     |   |   |           |   |   |            |   |   |                                   |   |   |                                                                           |   |   |                          |   |   |     |   |   |   |   |   |   |   |   |   |
|                           |   |        |   |      |   |   |     |   |   |           |   |   |            |   |   |                                   |   |   |                                                                           |   |   |                          |   |   |     |   |   |   |   |   |   |   |   |   |
| Mei Yu                         |   |   2010 |   | $         | 14,118 |   |     |   | -0-    |           |   |   | -0-             |   |   |                                   | -0-    |   |                                                                           |   | -0-    |                          |   |   | -0-      |   |   |   | -0- |   |   | $ | 14,118 |   |
| (Chief Financial Officer and   |   | 2009        |   | $         | 11,712 |   |     |   | -0-    |           |   |   | -0-             |   |   |                                   | -0-    |   |                                                                           |   | -0-    |                          |   |   | -0-      |   |   |   | -0- |   |   | $ | 11,712 |   |
| Chief Accounting Officer )     |   |        |   |      |   |   |     |   |   |           |   |   |            |   |   |                                   |   |   |                                                                           |   |   |                          |   |   |     |   |   |   |   |   |   |   |   |   |

| Name and Address of Beneficial Owner (1) |   | Amount and Nature ofBeneficial Ownership |       |   | Percentage of Class (2)  |   |
|------------------------------------------------------------------------|--------|--------------------------------------------------------------|------------|--------|----------------------------------------------|--------|
| BEFUT International Co. Limited (3)                                    |   |                                                         | 27,929,242 |   |                                         |   | 94.0 | % |
|                                                                   |   |                                                         |       |   |                                         |   |   |   |
| Hongbo Cao (4)                                                         |   |                                                         | 27,929,242 |   |                                         |   | 94.0 | % |
|                                                                   |   |                                                         |       |   |                                         |   |   |   |
| Tingmin Li (5)                                                         |   |                                                         | 12,580,739 |   |                                         |   | 42.3 | % |
|                                                                   |   |                                                         |       |   |                                         |   |   |   |
| Mei Yu                                                                 |   |                                                         | 0          |   |                                         |   | 0.0 | % |
|                                                                   |   |                                                         |       |   |                                         |   |   |   |
| Haiyang Lu                                                             |   |                                                         | 0          |   |                                         |   | 0.0 | % |
|                                                                   |   |                                                         |       |   |                                         |   |   |   |
| All Directors and Officers as a Group(3 individuals)                   |   |                                                         | 27,929,242 |   |                                         |   | 94.0 | % |

|   | (1) | The address of each of the beneficial owner is c/o Dalian Befut Wire & Cable Manufacturing Co., Ltd., 27th Floor, Liangjiu International Tower, 5 Heyi Street, Dalian City, 116011, P. R. China. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | When calculating the percentage of shares for all the persons listed and all directors and officers as a group, the denominator is the number of shares of our common stock outstanding as of September 24, 2010, namely, 29,715,640 shares of common stock. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (3) | BEFUT International Co. Limited, a British Virgin Island Company (“Befut BVI”) directly owns 27,929,242 shares of our common stock. Befut BVI became a shareholder of the Company when we issued 117,768,300 shares of our common stock to it in connection with the reverse merger transaction dated March 13, 2009. Mr. Hongbo Cao, as the sole director of Befut BVI, has sole voting and investment control over the shares of common stock owned by Befut BVI. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Mr. Hongbo Cao, as the sole director of Befut BVI, has sole voting and investment control over the shares of common stock owned by Befut BVI and, as a result, may be deemed to be the beneficial owner of the 27,929,242 shares of our common stock owned by Befut BVI. Alternatively, Mr. Hongbo Cao is the beneficial owner of 12,580,739 shares of our common stock pursuant to a certain Stockholders Agreement of Befut BVI dated March 13, 2009 (the “Befut BVI Stockholders Agreement”).  The Befut BVI Stockholders Agreement provides that, upon request by any stockholder, Befut BVI is required to distribute to such stockholder their pro rata amount of our common stock owned by Befut BVI.  Mr. Cao, as a 45.05% equity holder of Befut BVI, has the right to receive 12,580,739 shares of our common stock from Befut BVI. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Mr. Li, as a 45.05% equity holder of Befut BVI, has the right to receive 12,580,739 shares of our common stock from Befut BVI upon request pursuant to the Befut BVI Stockholders Agreement. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|               |   | Fiscal YearEnded   |    |   | Fiscal YearEnded   |   |
|--------------------|--------|-------------------------|---------|--------|-------------------------|--------|
|               |   | June 30, 2010 |    |   | June 30, 2009 |   |
| Audit Fees         |   | $                       | 110,000 |   |                    | $      | 80,000 |   |
| Audit Related Fees |   |                    | -       |   |                    |   | - |   |
| Tax Fees           |   |                    | -       |   |                    |   | - |   |
| All Other Fees     |   |                    |  - |   |                    |   |  - |   |
| Total              |   | $                       | 110,000 |   |                    | $      | 80,000 |   |

----

| Reports of Independent Registered Public Accounting Firms                                          |   |   | F-1        |   |
|----------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
|                                                                                               |   |   |       |   |
| Consolidated Balance Sheets - as of June 30, 2010 and 2009                                         |   |   | F-2        |   |
|                                                                                               |   |   |       |   |
| Consolidated Statements of Operations - for the Years ended June 30, 2010 and 2009       |   |   | F-3        |   |
|                                                                                               |   |   |       |   |
| Consolidated Statements of Comprehensive Income - for the Years ended June 30, 2010 and 2009  |   |   | F-4        |   |
|                                                                                               |   |   |       |   |
| Consolidated Statements of Shareholders’ Equity - for the Years ended June 30, 2010 and 2009 |   |   | F-5        |   |
|                                                                                               |   |   |       |   |
| Consolidated Statements of Cash Flows - for the Years ended June 30, 2010 and 2009                 |   |   | F-6        |   |
|                                                                                               |   |   |       |   |
| Notes to Consolidated Financial Statements                                                         |   |   | F-7 - F-27 |   |

----

|                                                  | BEFUT International Co., Ltd. |
|-------------------------------------------------------|-------------------------------|
|                                                  |                          |   |
| Date: September 16, 2011     | By:                 | /s/ Hongbo Cao |
|                                                  |                          | Hongbo Cao, President and CEO |

| September 16, 2011     |   | /s/ Hongbo Cao                                                      |
|--------------------------------------------|--------|---------------------------------------------------------------------|
|                                       |   | Hongbo Cao, Chairman of the Board of Directors                      |
|                                       |   | President and CEO                                                   |
|                                  |   |  (principal executive officer)                                 |
|                                       |   |                                                                |
| September 16, 2011     |   | /s/ Mei Yu                                                          |
|                                       |   | Mei Yu, Director, Chief Financial Officer and Treasurer             |
|                                  |   |  (principal financial officer and principalaccounting officer) |

----

| 3.1    | Amended and Restated Articles of Incorporation of the Company. (1)                                                                                                                                                  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                |
| 3.2    | Bylaws of the Company. (2)                                                                                                                                                                                |
|   |                                                                                                                                                                                                                |
| 4.1    | Form of Convertible Note issued to the investors in our private placement dated March 13, 2009. (3)                                                                                                            |
|   |                                                                                                                                                                                                                |
| 4.2    | Form of Warrant issued to the investors in our private placement dated March 13, 2009. (3)                                                                                                                     |
|   |                                                                                                                                                                                                                |
| 10.1   | Share Exchange Agreement, dated March 13, 2009 by and between the Company, Befut Nevada and Befut BVI. (3)                                                                                                          |
|   |                                                                                                                                                                                                                |
| 10.2   | Securities Purchase Agreement, dated as of March 13, 2009 by and among the Company and the Investors. (3)                                                                                                           |
|   |                                                                                                                                                                                                                |
| 10.3   | Original Equipment Manufacturer Agreement dated February 16, 2009 by and between WFOE and Dalian Befut. (3)                                                                                                         |
|   |                                                                                                                                                                                                                |
| 10.4   | Intellectual Property License Agreement dated February 16, 2009 by and between WFOE and Dalian Befut. (3)                                                                                                           |
|   |                                                                                                                                                                                                                |
| 10.5   | Non-competition Agreement dated February 16, 2009 by and between WFOE and Dalian Befut. (3)                                                                                                                         |
|   |                                                                                                                                                                                                                |
| 10.6   | Lease between Dalian Befut and Dalian Wanbao Industrial Co. Ltd. (4)                                                                                                                                                |
|   |                                                                                                                                                                                                                |
| 10.7   | RMB Loan Agreement dated November 2, 2009 by and between Dalian Befut and China Development Bank Corporation. (5)                                                                                              |
|   |                                                                                                                                                                                                                |
| 10.8   | Pledge Contract dated November 2, 2009 by and between Hongbo Cao and China Development Bank Corporation. (6)                                                                                                        |
|   |                                                                                                                                                                                                                |
| 10.9   | Pledge Contract dated November 2, 2009 by and between Tingmin Li and China Development Bank Corporation. (6)                                                                                                        |
|   |                                                                                                                                                                                                                |
| 10.10  | Mortgage Contract dated November 2, 2009 by and between Dalian Befut and China Development Bank Corporation regarding Land Use Right. (6)                                                                           |
|   |                                                                                                                                                                                                                |
| 10.11  | Mortgage Contract dated November 2, 2009 by and between Dalian Befut and China Development Bank Corporation regarding Building Ownership. (6)                                                                       |
|   |                                                                                                                                                                                                                |
| 21.1   | List of Subsidiaries. (6)                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                |
| 31.1   | Certification of the principal executive officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                      |
|   |                                                                                                                                                                                                                |
| 31.2   | Certification of the principal financial officer and the principal accounting officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|   |                                                                                                                                                                                                                |
| 32.1   | Certification of the principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                          |
|   |                                                                                                                                                                                                                |
| 32.2   | Certification of the principal financial officer and treasurer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                            |
|   |                                                                                                                                                                                                                |
| 99.1   | Parent Company Only Financial Statements and Notes to Financial Statements.                                                                                                                                         |
|   |                                                                                                                                                                                                                |
| 99.2   | Befut BVI Stockholders Agreement, dated March 13, 2009.                                                                                                                                                             |

|   | (1) | Filed as an exhibit to the Company's Current Report on Form 8-K, as filed with the SEC on June 18, 2009, and incorporated herein by this reference.  |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (2)    | Filed as an exhibit to the Company's Registration Statement on Form 10-SB, as filed with the SEC on June 1, 2005, and incorporated herein by this reference.  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (3)    | Filed as an exhibit to the Company's Current Report on Form 8-K, as filed with the SEC on March 19, 2009, and incorporated herein by this reference.          |
|   |   |                                                                                                                                                               |
|   | (4)    | Filed as an exhibit to the Company's Current Report on Form 10-K, as filed with the SEC on October 9, 2009, and incorporated herein by this reference.             |
|   |   |                                                                                                                                                               |
|   | (5)    | Filed as an exhibit to the Company's Quarterly Report on Form 10-Q, as filed with the SEC on February 12, 2010, and incorporated herein by this reference.         |
|   |   |                                                                                                                                                               |
|   | (6)    | Filed as an exhibit to the Company’s Annual Report on Form 10-K, as filed with the SEC on September 28, 2010, and incorporated herein by reference.          |

----

----

|                                                    | Page   |
|---------------------------------------------------------|--------|
|                                                    |   |
| CONSOLIDATED FINANCIAL STATEMENTS                       |   |
|                                                    |   |
| Report of Independent Registered Public Accounting Firm | F-1    |
|                                                    |   |
| Consolidated Balance Sheets                             | F-2    |
|                                                    |   |
| Consolidated Statements of Operations                   | F-3    |
|                                                    |   |
| Consolidated Statements of Comprehensive Income         | F-4    |
|                                                    |   |
| Consolidated Statements of Stockholders’ Equity   | F-5    |
|                                                    |   |
| Consolidated Statements of Cash Flows                   | F-6    |
|                                                    |   |
| Notes to Consolidated Financial Statements              | F-7    |

----

----

|                                                                                                                                                          |   | June 30, 2010 |       |   | June 30, 2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|-------------------------|--------|
|                                                                                                                                                          |   | (Restated)              |       |   | (Restated)              |   |
| Assets                                                                                                                                                        |   |                    |       |   |                    |   |
| Current assets:                                                                                                                                               |   |                    |       |   |                    |   |
| Cash and cash equivalents                                                                                                                                     |   | $                       | 1,319,173  |   |                    | $      | 210,301 |   |
| Restricted cash                                                                                                                                               |   |                    | 1,181,095  |   |                    |   | 586,000 |   |
| Accounts receivable, net of allowance for doubtful accounts of $83,295 and $20,222 at June 30, 2010 and 2009, respectively                                    |   |                    | 9,292,310  |   |                    |   | 8,560,592 |   |
| Inventory                                                                                                                                                     |   |                    | 2,543,789  |   |                    |   | 1,353,532 |   |
| Loans to unrelated parties                                                                                                                                    |   |                    | 1,054,090  |   |                    |   | 6,955,623 |   |
| Bank loan security deposits                                                                                                                                   |   |                    | 1,031,100  |   |                    |   | 733,233 |   |
| Advance payments                                                                                                                                              |   |                    | 399,868    |   |                    |   | 224,196 |   |
| Due from related party                                                                                                                                        |   |                    | 472,838    |   |                    |   | - |   |
| Other current assets                                                                                                                                          |   |                    | 521,739    |   |                    |   | 273,391 |   |
| Total current assets                                                                                                                                          |   |                    | 17,816,002 |   |                    |   | 18,896,868 |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |   |   |
| Property and equipment, net                                                                                                                                   |   |                    | 31,618,074 |   |                    |   | 18,646,274 |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |   |   |
| Other assets:                                                                                                                                                 |   |                    |       |   |                    |   |   |   |
| Advance payments – non-current                                                                                                                          |   |                    | 293,605    |   |                    |   | 642,672 |   |
| Advance payments – R&D                                                                                                                              |   |                    | 2,088,714  |   |                    |   | 2,956,370 |   |
| Intangibles, net                                                                                                                                              |   |                    | 15,669,375 |   |                    |   | 11,335,978 |   |
| Long-term investment                                                                                                                                          |   |                    | -          |   |                    |   | 2,930 |   |
| Total other assets                                                                                                                                            |   |                    | 18,051,694 |   |                    |   | 14,937,950 |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |   |   |
| Total assets                                                                                                                                                  |   | $                       | 67,485,770 |   |                    | $      | 52,481,092 |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |   |   |
| Liabilities                                                                                                                                                   |   |                    |       |   |                    |   |   |   |
| Current liabilities:                                                                                                                                          |   |                    |       |   |                    |   |   |   |
| Accounts payable and accrued expenses                                                                                                                         |   | $                       | 3,119,646  |   |                    | $      | 659,142 |   |
| Trade notes payable                                                                                                                                           |   |                    | -          |   |                    |   | 1,172,000 |   |
| Short-term bank loans                                                                                                                                         |   |                    | 6,039,300  |   |                    |   | 8,057,500 |   |
| Current portion of long-term bank loans                                                                                                                       |   |                    | 294,600    |   |                    |   | - |   |
| Convertible notes payable                                                                                                                                     |   |                    | -          |   |                    |   | 500,000 |   |
| Loans from unrelated party                                                                                                                                    |   |                    | 370,000    |   |                    |   | 249,050 |   |
| Advances from customers                                                                                                                                       |   |                    | 533,806    |   |                    |   | 372,417 |   |
| Income tax payable                                                                                                                                            |   |                    | 1,655,747  |   |                    |   | 777,497 |   |
| Other taxes payable                                                                                                                                           |   |                    | 77,895     |   |                    |   | 37,975 |   |
| Other current liabilities                                                                                                                                     |   |                    | 891,892    |   |                    |   | 636,514 |   |
| Total current liabilities                                                                                                                                     |   |                    | 12,982,886 |   |                    |   | 12,462,095 |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |   |   |
| Long-term bank loan                                                                                                                                           |   |                    | 14,435,400 |   |                    |   | 5,470,310 |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |   |   |
| Total liabilities                                                                                                                                             |   |                    | 27,418,286 |   |                    |   | 17,932,405 |   |
| Equity                                                                                                                                                        |   |                    |       |   |                    |   |   |   |
| Stockholders’ equity:                                                                                                                                   |   |                    |       |   |                    |   |   |   |
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued or outstanding                                                              |   |                    | -          |   |                    |   | - |   |
| Common stock, $0.001 par value, 200,000,000 shares authorized, 29,715,666 and 29,488,341 shares issued and outstanding at Jun 30, 2010 and 2009, respectively |   |                    | 29,716     |   |                    |   | 29,488 |   |
| Additional paid-in capital                                                                                                                                    |   |                    | 21,838,047 |   |                    |   | 21,708,275 |   |
| Statutory reserves                                                                                                                                            |   |                    | 1,181,189  |   |                    |   | 729,135 |   |
| Retained earnings                                                                                                                                             |   |                    | 13,810,157 |   |                    |   | 9,750,035 |   |
| Accumulated other comprehensive income                                                                                                                        |   |                    | 2,166,533  |   |                    |   | 1,956,623 |   |
| Total stockholders’ equity                                                                                                                              |   |                    | 39,025,642 |   |                    |   | 34,173,556 |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |   |   |
| Noncontrolling interest                                                                                                                                       |   |                    | 1,041,842  |   |                    |   | 375,131 |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |   |   |
| Total equity                                                                                                                                                  |   |                    | 40,067,484 |   |                    |   | 34,548,687 |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |   |   |
| Total liabilities and equity                                                                                                                                  |   | $                       | 67,485,770 |   |                    | $      | 52,481,092 |   |

----

|                                                     |   | For the Years Ended June 30, |       |
|----------------------------------------------------------|--------|-------------------------------------------------------|------------|
|                                                     |   | 2010                                                  |       |   | 2009 |   |
|                                                     |   | (Restated)                                            |       |   | (Restated) |   |
|                                                     |   |                                                  |       |   |   |   |
| Sales                                                    |   | $                                                     | 31,258,662 |   |   | $ | 19,308,939 |   |
|                                                     |   |                                                  |       |   |   |   |   |   |
| Cost of sales                                            |   |                                                  | 22,956,708 |   |   |   | 14,101,545 |   |
|                                                     |   |                                                  |       |   |   |   |   |   |
| Gross profit                                             |   |                                                  | 8,301,954  |   |   |   | 5,207,394 |   |
|                                                     |   |                                                  |       |   |   |   |   |   |
| Operating expenses                                       |   |                                                  |       |   |   |   |   |   |
| Selling expenses                                         |   |                                                  | 80,090     |   |   |   | 121,393 |   |
| General and administrative expenses                      |   |                                                  | 3,881,655  |   |   |   | 1,257,979 |   |
| Costs related to reverse merger                          |   |                                                  | -          |   |   |   | 491,281 |   |
| Total operating expenses                                 |   |                                                  | 3,961,745  |   |   |   | 1,870,653 |   |
|                                                     |   |                                                  |       |   |   |   |   |   |
| Income from operations                                   |   |                                                  | 4,340,209  |   |   |   | 3,336,741 |   |
|                                                     |   |                                                  |       |   |   |   |   |   |
| Other income (expenses):                                 |   |                                                  |       |   |   |   |   |   |
| Government subsidy income                                |   |                                                  | 705,602    |   |   |   | 159,979 |   |
| Interest income                                          |   |                                                  | 110,608    |   |   |   | 15,027 |   |
| Interest expense                                         |   |                                                  | (397,700   | ) |   |   | (435,645 | ) |
| Other income (expenses), net                             |   |                                                  | 545,008    |   |   |   | 58,712 |   |
| Total other income (expenses)                            |   |                                                  | 963,518    |   |   |   | (201,927 | ) |
|                                                     |   |                                                  |       |   |   |   |   |   |
| Income before provision for income taxes                 |   |                                                  | 5,303,727  |   |   |   | 3,134,814 |   |
|                                                     |   |                                                  |       |   |   |   |   |   |
| Provision for income taxes                               |   |                                                  | 907,083    |   |   |   | 887,696 |   |
|                                                     |   |                                                  |       |   |   |   |   |   |
| Net income                                               |   |                                                  | 4,396,644  |   |   |   | 2,247,118 |   |
|                                                     |   |                                                  |       |   |   |   |   |   |
| Less: net loss attributable to noncontrolling interest   |   |                                                  | (115,532   | ) |   |   | (12,295 | ) |
|                                                     |   |                                                  |       |   |   |   |   |   |
| Net income attributable to BEFUT International Co., Ltd. |   | $                                                     | 4,512,176  |   |   | $ | 2,259,413 |   |
|                                                     |   |                                                  |       |   |   |   |   |   |
| Basic earnings per share                                 |   | $                                                     | 0.15       |   |   | $ | 0.08 |   |
| Diluted earnings per share                               |   | $                                                     | 0.15       |   |   | $ | 0.08 |   |
|                                                     |   |                                                  |       |   |   |   |   |   |
| Weighted average number of common shares outstanding:    |   |                                                  |       |   |   |   |   |   |
| Basic                                                    |   |                                                  | 29,545,797 |   |   |   | 29,488,341 |   |
| Diluted                                                  |   |                                                  | 30,110,241 |   |   |   | 29,720,171 |   |

----

|                                                               |   | For the Years Ended June 30, |      |
|--------------------------------------------------------------------|--------|-------------------------------------------------------|-----------|
|                                                               |   | 2010                                                  |      |   | 2009 |   |
|                                                               |   | (Restated)                                            |      |   | (Restated) |   |
|                                                               |   |                                                  |      |   |   |   |
| Net income                                                         |   |                                                  | 4,396,644 |   |   |   | 2,247,118 |   |
|                                                               |   |                                                  |      |   |   |   |   |   |
| Other comprehensive income                                         |   |                                                  |      |   |   |   |   |   |
| Foreign currency translation adjustment                            |   |                                                  | 214,802   |   |   |   | 143,624 |   |
|                                                               |   |                                                  |      |   |   |   |   |   |
| Comprehensive income                                               |   | $                                                     | 4,611,446 |   |   | $ | 2,390,742 |   |
|                                                               |   |                                                  |      |   |   |   |   |   |
| Less: comprehensive loss attributable to noncontrolling interest   |   |                                                  | (110,640  | ) |   |   | (10,708 | ) |
|                                                               |   |                                                  |      |   |   |   |   |   |
| Comprehensive income attributable to BEFUT International Co., Ltd. |   | $                                                     | 4,722,086 |   |   | $ | 2,401,450 |   |

----

|                                                         |   |                |       |   |          |   |      |       |   |   | Accumulated   |   |   |       |      |   |       |   |    |       |   |   |           |   |
|-------------------------------------------------------------------|--------|---------------------|------------|--------|---------------|--------|-----------|------------|--------|--------|---------------|--------|--------|------------|-----------|--------|------------|--------|---------|------------|--------|--------|----------------|--------|
|                                                              |   | Total               |       |   |          |   |      |       |   |   | other         |   |   |       |      |   | Additional |   |    |       |   |   |           |   |
|                                                              |   | Stockholders’ |       |   | Comprehensive |   |      | Retained   |   |   | Comprehensive |   |   | Common     |      |   | Paid-in    |   |    | Statutory  |   |   | Noncontrolling |   |
|                                                              |   | Equity              |       |   | Income        |   |      | Earnings   |   |   | Income        |   |   | Stock      |      |   | Capital    |   |    | Reserve    |   |   | Interest       |   |
|                                                              |   | (Restated)          |       |   | (Restated)    |   |      | (Restated) |   |   | (Restated)    |   |   | (Restated) |      |   | (Restated) |   |    | (Restated) |   |   | (Restated)     |   |
|                                                              |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |
| Beginning balance, July 1, 2008                                   |   | $                   | 15,472,924 |   |          | $      | -         |       |   | $      | 7,566,470     |   |   | $          | 1,814,586 |   |       |   | 117,768 |       |   | $      | 4,934,974      |   |   | $ | 653,287 |   |   | $ | 385,839 |   |
|                                                              |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Recapitalization upon reverse merger                              |   |                | -          |   |          |   | -         |       |   |   | -             |   |   |       | -         |   |       |   | 2,091   |       |   |   | (2,091         | )      |   |   | - |   |   |   | - |   |
|                                                              |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Effect of reverse stock split                                     |   |                | -          |   |          |   | -         |       |   |   | -             |   |   |       | -         |   |       |   | (90,371 | )          |   |   | 90,371         |   |   |   | - |   |   |   | - |   |
|                                                              |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Additional paid-in capital – contribution from shareholders |   |                | 16,685,021 |   |          |   | -         |       |   |   | -             |   |   |       | -         |   |       |   | -       |       |   |   | 16,685,021     |   |   |   |   |   |   |   | - |   |
| Comprehensive income:                                             |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Net income                                                        |   |                | 2,247,118  |   |          |   | 2,247,118 |       |   |   | 2,259,413     |   |   |       | -         |   |       |   | -       |       |   |   | -              |   |   |   | - |   |   |   | (12,295 | ) |
| Other comprehensive income:                                       |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                           |   |                | 143,624    |   |          |   | 143,624   |       |   |   | -             |   |   |       | 142,037   |   |       |   | -       |       |   |   | -              |   |   |   | - |   |   |   | 1,587 |   |
|                                                              |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                              |   |                | 2,390,742  |   |          | $      | 2,390,742 |       |   |   | -             |   |   |       | -         |   |       |   | -       |       |   |   | -              |   |   |   | - |   |   |   | - |   |
|                                                              |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Statutory reserve                                                 |   |                | -          |   |          |   |      |       |   |   | (75,848       | )      |   |       | -         |   |       |   | -       |       |   |   | -              |   |   |   | 75,848 |   |   |   | - |   |
|                                                              |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Ending balance, June 30, 2009                                     |   | $                   | 34,548,687 |   |          |   |      |       |   | $      | 9,750,035     |   |   | $          | 1,956,623 |   |       | $      | 29,488  |       |   | $      | 21,708,275     |   |   | $ | 729,135 |   |   | $ | 375,131 |   |
|                                                              |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Issuance of common stock                                          |   |                | 130,000    |   |          |   | -         |       |   |   | -             |   |   |       | -         |   |       |   | 228     |       |   |   | 129,772        |   |   |   | - |   |   |   | - |   |
|                                                              |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Contribution from noncontrolling interest for Befut Zhong Xing    |   |                | 777,351    |   |          |   | -         |       |   |   | -             |   |   |       | -         |   |       |   | -       |       |   |   | -              |   |   |   | - |   |   |   | 777,351 |   |
| Comprehensive income:                                             |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Net income                                                        |   |                | 4,396,644  |   |          |   | 4,396,644 |       |   |   | 4,512,176     |   |   |       | -         |   |       |   | -       |       |   |   | -              |   |   |   | - |   |   |   | (115,532 | ) |
| Other comprehensive income:                                       |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                           |   |                | 214,802    |   |          |   | 214,802   |       |   |   | -             |   |   |       | 209,910   |   |       |   | -       |       |   |   | -              |   |   |   | - |   |   |   | 4,892 |   |
|                                                              |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                              |   |                | 4,611,446  |   |          | $      | 4,611,446 |       |   |   | -             |   |   |       | -         |   |       |   | -       |       |   |   | -              |   |   |   | - |   |   |   | - |   |
|                                                              |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Statutory reserve                                                 |   |                | -          |   |          |   |      |       |   |   | (452,054      | )      |   |       | -         |   |       |   | -       |       |   |   | -              |   |   |   | 452,054 |   |   |   | - |   |
|                                                              |   |                |       |   |          |   |      |       |   |   |          |   |   |       |      |   |       |   |    |       |   |   |           |   |   |   |   |   |   |   |   |   |
| Ending balance, June 30, 2010                                     |   | $                   | 40,067,484 |   |          |   |      |       |   | $      | 13,810,157    |   |   | $          | 2,166,533 |   |       | $      | 29,716  |       |   | $      | 21,838,047     |   |   | $ | 1,181,189 |   |   | $ | 1,041,842 |   |

----

|                                                                                        |   | For the Years Ended June 30, |        |
|---------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|-------------|
|                                                                                        |   | 2010                                                  |        |   | 2009 |   |
|                                                                                        |   | (Restated)                                            |        |   | (Restated) |   |
| Cash flows from operating activities:                                                       |   |                                                  |        |   |   |   |
| Net Income                                                                                  |   | $                                                     | 4,396,644   |   |   | $ | 2,247,118 |   |
| Adjustments to reconcile net income to net cash Provided by (used in) operating activities: |   |                                                  |        |   |   |   |   |   |
| Depreciation and amortization                                                               |   |                                                  | 1,644,756   |   |   |   | 553,064 |   |
| Amortization of advance payments – R&D                                            |   |                                                  | 880,020     |   |   |   | - |   |
| Donated intangible assets received                                                          |   |                                                  | -           |   |   |   | (155,290 | ) |
| Changes in current assets and current liabilities:                                          |   |                                                  |        |   |   |   |   |   |
| Restricted cash                                                                             |   |                                                  | (595,095    | ) |   |   | (586,000 | ) |
| Accounts receivable                                                                         |   |                                                  | (687,316    | ) |   |   | (2,634,196 | ) |
| Inventory                                                                                   |   |                                                  | (1,177,807  | ) |   |   | 297,172 |   |
| Advance payments                                                                            |   |                                                  | 762,442     |   |   |   | 307,584 |   |
| Advance payments for R&D                                                                |   |                                                  | -           |   |   |   | (2,956,370 | ) |
| Other current assets                                                                        |   |                                                  | (249,487    | ) |   |   | 634,375 |   |
| Accounts payable and accrued expenses                                                       |   |                                                  | 2,454,268   |   |   |   | (854,391 | ) |
| Trade notes payable                                                                         |   |                                                  | (1,173,360  | ) |   |   | 1,172,000 |   |
| Advances from customers                                                                     |   |                                                  | 158,674     |   |   |   | 17,522 |   |
| Income tax payable                                                                          |   |                                                  | 870,266     |   |   |   | 777,497 |   |
| Other taxes payable                                                                         |   |                                                  | 39,904      |   |   |   | (9,173 | ) |
| Other current liabilities                                                                   |   |                                                  | 244,461     |   |   |   | 191,354 |   |
| Total adjustments                                                                           |   |                                                  | 3,171,726   |   |   |   | (3,244,852 | ) |
| Net cash provided by operating activities                                                   |   |                                                  | 7,568,370   |   |   |   | (997,734 | ) |
|                                                                                        |   |                                                  |        |   |   |   |   |   |
| Cash flows from investing activities:                                                       |   |                                                  |        |   |   |   |   |   |
| Loans to unrelated parties                                                                  |   |                                                  | 5,914,113   |   |   |   | (6,448,170 | ) |
| Advance payments for property and equipment                                                 |   |                                                  | (583,921    | ) |   |   | (642,672 | ) |
| Due from related party                                                                      |   |                                                  | (470,816    | ) |   |   | - |   |
| Additions to property and equipment                                                         |   |                                                  | (18,715,772 | ) |   |   | (142,478 | ) |
| Additions to construction in progress                                                       |   |                                                  | -           |   |   |   | (3,395,532 | ) |
| Acquisition of intangible assets                                                            |   |                                                  | -           |   |   |   | (83,505 | ) |
| Long-term investment                                                                        |   |                                                  | 2,933       |   |   |   | - |   |
| Net cash used in investing activities                                                       |   |                                                  | (13,853,463 | ) |   |   | (10,712,357 | ) |
|                                                                                        |   |                                                  |        |   |   |   |   |   |
| Cash flows from financing activities:                                                       |   |                                                  |        |   |   |   |   |   |
| Bank loan security deposits                                                                 |   |                                                  | (292,607    | ) |   |   | (100,353 | ) |
| Proceeds of short-term bank loans                                                           |   |                                                  | 6,013,470   |   |   |   | 8,057,500 |   |
| Repayment of short-term bank loans                                                          |   |                                                  | (8,066,850  | ) |   |   | (2,197,500 | ) |
| Convertible notes payable                                                                   |   |                                                  | (500,000    | ) |   |   | 500,000 |   |
| Loans from unrelated parties                                                                |   |                                                  | 120,661     |   |   |   | 249,050 |   |
| Proceeds of long-term bank loans                                                            |   |                                                  | 14,667,000  |   |   |   | - |   |
| Repayment of long-term bank loans                                                           |   |                                                  | (5,476,658  | ) |   |   | (316,440 | ) |
| Additional paid-in capital – proceeds from issuance of common stock                   |   |                                                  | 130,000     |   |   |   | - |   |
| Additional paid-in capital – contributions from shareholders                          |   |                                                  | -           |   |   |   | 5,301,971 |   |
| Capital contribution from minority shareholder for BEFUT Zhong Xing                         |   |                                                  | 777,351     |   |   |   | - |   |
| Net cash provided by financing activities                                                   |   |                                                  | 7,372,367   |   |   |   | 11,494,228 |   |
|                                                                                        |   |                                                  |        |   |   |   |   |   |
| Effect of foreign currency translation on cash                                              |   |                                                  | 21,598      |   |   |   | 73,115 |   |
|                                                                                        |   |                                                  |        |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                   |   |                                                  | 1,108,872   |   |   |   | (142,748 | ) |
|                                                                                        |   |                                                  |        |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                              |   |                                                  | 210,301     |   |   |   | 353,049 |   |
|                                                                                        |   |                                                  |        |   |   |   |   |   |
| Cash and cash equivalents at end of year                                                    |   | $                                                     | 1,319,173   |   |   | $ | 210,301 |   |
|                                                                                        |   |                                                  |        |   |   |   |   |   |
| Supplemental schedule of non cash activities:                                               |   |                                                  |        |   |   |   |   |   |
| Construction in progress transferred to property and equipment                              |   | $                                                     | 11,246,719  |   |   | $ | - |   |
| Construction in progress transferred to intangible assets                                   |   | $                                                     | 5,487,937   |   |   | $ | - |   |
| Intangible assets received in exchange for ownership                                        |   | $                                                     | -           |   |   | $ | 11,383,050 |   |

----

----

----

|                               | Estimated Useful Life |
|------------------------------------|-----------------------|
| Vehicles                           | 5 to 10 years         |   |
| Furniture, machinery and equipment | 5 to 10 years         |   |
| Buildings and improvements         | 20 to 40 years        |   |

|                 | Estimated Useful Life |
|----------------------|-----------------------|
| Software             | 5 years               |   |
| High-tech patents    | 10 years              |   |
| Land use right       | 40 to 50 years        |   |
| Well-known trademark | Infinite              |   |

----

----

----

----

|            |   | June 30, 2010 |      |   | June 30,2009 |   |
|-----------------|--------|-------------------------|-----------|--------|-------------------|--------|
|            |   |                    |      |   |              |   |
| Raw materials   |   | $                       | 1,093,193 |   |              | $      | 400,343 |   |
| Work in process |   |                    | 323,275   |   |              |   | 60,703 |   |
| Finished goods  |   |                    | 1,127,321 |   |              |   | 892,486 |   |
| Total           |   | $                       | 2,543,789 |   |              | $      | 1,353,532 |   |

----

|                                           |   | June 30, 2010 |      |   | June 30,2009 |   |
|------------------------------------------------|--------|-------------------------|-----------|--------|-------------------|--------|
| Bank loan security deposits – short-term |   | $                       | 736,500   |   |              | $      | 733,233 |   |
| Bank loan security deposits – long-term  |   |                    | 294,600   |   |              |   | - |   |
| Total                                          |   | $                       | 1,031,100 |   |              | $      | 733,233 |   |

|                                    |   | June 30, 2010 |    |   | June 30, 2009 |   |
|-----------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|
|                                    |   |                    |    |   |                    |   |
| Advance payments for inventory          |   | $                       | 399,868 |   |                    | $      | 224,196 |   |
| Advance payments for land and equipment |   |                    | 293,605 |   |                    |   | 642,672 |   |
| Total                                   |   | $                       | 693,473 |   |                    | $      | 866,868 |   |

|                           |   | June 30, 2010 |       |   | June 30, 2009 |   |
|--------------------------------|--------|-------------------------|------------|--------|-------------------------|--------|
|                           |   |                    |       |   |                    |   |
| Buildings                      |   | $                       | 19,877,285 |   |                    | $      | 1,019,457 |   |
| Machinery and equipment        |   |                    | 12,673,324 |   |                    |   | 1,663,732 |   |
| Office equipment and furniture |   |                    | 100,927    |   |                    |   | 57,770 |   |
| Vehicles                       |   |                    | 466,380    |   |                    |   | 272,327 |   |
| Subtotal                       |   |                    | 33,117,916 |   |                    |   | 3,013,286 |   |
| Less: Accumulated depreciation |   |                    | 1,499,842  |   |                    |   | 1,082,271 |   |
|                           |   |                    | 31,618,074 |   |                    |   | 1,931,015 |   |
| Add: Construction in progress  |   |                    | -          |   |                    |   | 16,715,259 |   |
| Total                          |   | $                       | 31,618,074 |   |                    | $      | 18,646,274 |   |

----

|                           |   | June 30, 2010 |       |   | June 30, 2009 |   |
|--------------------------------|--------|-------------------------|------------|--------|-------------------------|--------|
|                           |   |                    |       |   |                    |   |
| Software                       |   | $                       | 22,684     |   |                    | $      | 16,049 |   |
| Trademark                      |   |                    | 83,961     |   |                    |   | 83,505 |   |
| Land use rights                |   |                    | 5,505,028  |   |                    |   | - |   |
| Patent                         |   |                    | 11,601,348 |   |                    |   | 11,538,406 |   |
| Subtotal                       |   |                    | 17,213,021 |   |                    |   | 11,637,960 |   |
| Less: Accumulated amortization |   |                    | 1,543,646  |   |                    |   | 301,982 |   |
|                           |   |                    |       |   |                    |   |   |   |
| Total                          |   | $                       | 15,669,375 |   |                    | $      | 11,335,978 |   |

| Land use rights                                           |   | $ | 5,505,028 |   |
|-----------------------------------------------------------|--------|---|-----------|--------|
| Foreign currency translation adjustment                   |   | $ | (17,091   | )      |
| Construction in progress transferred to intangible assets |   | $ | 5,487,937 |   |

|             |   | June 30, 2010 |      |   | June 30, 2009 |   |
|------------------|--------|-------------------------|-----------|--------|-------------------------|--------|
|             |   |                    |      |   |                    |   |
| Accounts payable |   | $                       | 3,009,646 |   |                    | $      | 527,142 |   |
| Accrued expenses |   |                    | 110,000   |   |                    |   | 132,000 |   |
|             |   |                    |      |   |                    |   |   |   |
| Total            |   | $                       | 3,119,646 |   |                    | $      | 659,142 |   |

----

|                                                                                                                                                                                                                                                                                                                                      |   | June 30, 2010 |      |   | June 30, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|--------|-------------------------|--------|
| On July 31, 2008, the Company obtained a loan from Guangdong Development Bank, of which the principal was paid in full on July 30, 2009.  The interest was calculated using an annual fixed interest rate of 9.98%  and paid monthly. The loan was secured by a third party.                                          |   | $                       | -         |   |                    | $      | 586,000 |   |
|                                                                                                                                                                                                                                                                                                                                      |   |                    |      |   |                    |   |   |   |
| On August 27, 2008, the Company obtained a loan from Bank of Dalian, of which the principal was paid in full on August 27, 2009. The interest was calculated using an annual fixed interest rate of 10.458% and paid  monthly. The loan was secured by the Company’s property and equipment, Inventory and a third party. |   | $                       | -         |   |                    | $      | 2,856,750 |   |
|                                                                                                                                                                                                                                                                                                                                      |   |                    |      |   |                    |   |   |   |
| On November 21, 2008, the Company obtained a loan from Agricultural Bank of China of which the principal was paid in full on August 20, 2009. The  interest was calculated using an annual fixed interest rate of 10.0485% and paid monthly. The loan was secured by property and equipment and a third party.                  |   | $                       | -         |   |                    | $      | 219,750 |   |
|                                                                                                                                                                                                                                                                                                                                      |   |                    |      |   |                    |   |   |   |
| On December 24, 2008, the Company obtained a loan from Shanghai Pudong Development Bank of which the principal was paid in full on December 24, 2009. The  interest was calculated using a quarter fixed interest rate of  6.138% and paid monthly. The loan was secured by a third party.                            |   | $                       | -         |   |                    | $      | 1,465,000 |   |
|                                                                                                                                                                                                                                                                                                                                      |   |                    |      |   |                    |   |   |   |
| On May 6, 2009, the Company obtained a loan from China Merchants Bank, of which the principal was paid in full on May 5, 2010. The interest was calculated using an annual fixed interest rate of 5.841% and paid  monthly. The loan was secured by the Company’s property and equipment.                                 |   | $                       | -         |   |                    | $      | 2,930,000 |   |
|                                                                                                                                                                                                                                                                                                                                      |   |                    |      |   |                    |   |   |   |
| On September 16, 2009, the Company obtained a loan from Harbin Bank, of which the principal is to be paid in full by September 15, 2010. The interest is to be calculated using an annual fixed interest rate of 6.372% and paid  Monthly. The loan is secured by the Company’s property and equipment.                   |   | $                       | 2,946,000 |   |                    | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                      |   |                    |      |   |                    |   |   |   |
| On October 30, 2009, the Company obtained a loan from Bank of Dalian, of which the principal is to be paid in full by October 29, 2010. The interest is to be calculated using an annual fixed interest rate of 6.903% and paid monthly. The loan is guaranteed by a third party.                                                         |   | $                       | 2,356,800 |   |                    | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                      |   |                    |      |   |                    |   |   |   |
| On June 25, 2010, the Company obtained a loan from Bank of East Asia, of which the principal is to be paid in full by December 25, 2010. The interest is to be calculated using an annual fixed interest rate of 6.318% and paid monthly. The loan is guaranteed by accounts receivables.                                                 |   | $                       | 736,500   |   |                    | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                      |   |                    |      |   |                    |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                     |   | $                       | 6,039,300 |   |                    | $      | 8,057,500 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | June 30, 2010 |       |   | June 30, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|-------------------------|--------|
| In November 2006, the Company obtained loans from Construction Bank  of China, for the purchase of property. As per the terms of the loan  agreement, the loan will mature in November 2011. The interest rate is to  be adjusted every twelve months. The annual interest rate for the first and  the second year was fixed at 8.6879% and 7.50312%, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                       | -          |   |                    | $      | 5,470,310 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                    |       |   |                    |   |   |   |
| On November 2, 2009, Dalian Befut entered into a Loan Agreement with  the PRC National Development Bank Joint Equity Corporation (“NDB”)  pursuant to which Dalian Befut borrowed RMB100,000 (approximately  $14,670,000) from NDB (the “Loan”), The term of the Loan is seven years,  with a maturity date of November 1, 2016. The interest rate is a variable rate  equal to 5% per annum above the floating base interest for loans of the  same term promulgated by the PRC’s central bank, China People’s Bank.  The Loan was designated to finance the construction of Dalian Befut’s  planned specialty cable production lines with a production capacity  of 15,000 tons. The Loan was secured by, among other liens, a first priority  lien on Dalian Befut’s land use right and its building property ownership  and guaranteed by, among other guarantees, Mr. Cao and Mr. Li, Dalian,  Befut’s two major shareholders. |   | $                       | 14,730,000 |   |                    | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                    |       |   |                    |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                       | 14,730,000 |   |                    | $      | 5,470,310 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                    |       |   |                    |   |   |   |
| Less: Current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    | 294,600    |   |                    |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                    |       |   |                    |   |   |   |
| Total long-term loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                       | 14,435,400 |   |                    | $      | 5,470,310 |   |

|                                                               |   | June 30, 2010 |    |   | June 30,2009 |   |
|--------------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------|--------|
| Subsidy for encouraging investments in Changxing Island            |   | $                       | -       |   |              | $      | 159,979 |   |
| “Famous Trademark” subsidy                             |   |                    | 293,340 |   |              |   | - |   |
| Marine cable business subsidy                                      |   |                    | 293,340 |   |              |   | - |   |
| Value added tax refund for employing physically-challenged workers |   |                    | 118,922 |   |              |   | - |   |
| Total                                                              |   | $                       | 705,602 |   |              | $      | 159,979 |   |

|                             |   | PotentialShares |    |   | Days Outstanding |   |    | WeightedAverageShares |   |
|----------------------------------|--------|-----------------|---------|--------|-----------------------|--------|---------|-----------------------|--------|
|                             |   |            |    |   |                  |   |    |                  |   |
| June 30,2009                     |   |            | 769,256 |   |                  |   | 110/365 |                  |   |   | 231,830 |   |
|                             |   |            |    |   |                  |   |    |                  |   |   |   |   |
| Reverse stock split (1 for 4.07) |   |            | 769,256 |   |                  |   |    |                  |   |   |   |   |
|                             |   |            |    |   |                  |   |    |                  |   |   |   |   |
| June 30, 2010                    |   |            | 200,007 |   |                  |   | 310/365 |                  |   |   | 169,869 |   |
|                             |   |            | 569,249 |   |                  |   | 253/365 |                  |   |   | 394,575 |   |
|                             |   |            | 769,256 |   |                  |   |    |                  |   |   | 564,444 |   |

----

|                                               |   | For the Year Ended June 30, 2010 |      |
|----------------------------------------------------|--------|----------------------------------------------------------------|-----------|
|                                          |   | Income(Numerator)                                              |      |   | Shares(Denominator) |   |   | Per-ShareAmount |   |
|                                               |   |                                                           |      |   |   |   |   |   |   |
| Net Income                                         |   | $                                                              | 4,512,176 |   |   |   |   |   |   |   |
| Basic EPSIncome available to common stockholders   |   | $                                                              | 4,512,176 |   |   |   | 29,545,797 |   |   | $ | 0.15 |   |
|                                               |   |                                                           |      |   |   |   |   |   |   |   |   |   |
| Effect of Dilutive SecuritiesConvertible notes     |   |                                                           | 39,531    |   |   |   | 564,444 |   |   |   |   |   |
|                                               |   |                                                           |      |   |   |   |   |   |   |   |   |   |
| Diluted EPSIncome available to common stockholders |   | $                                                              | 4,551,707 |   |   |   | 30,110,241 |   |   | $ | 0.15 |   |

|                                               |   | For the Year Ended June 30, 2009 |      |
|----------------------------------------------------|--------|----------------------------------------------------------------|-----------|
|                                          |   | Income(Numerator)                                              |      |   | Shares(Denominator) |   |   | Per-ShareAmount |   |
|                                               |   |                                                           |      |   |   |   |   |   |   |
| Net Income                                         |   | $                                                              | 2,259,413 |   |   |   |   |   |   |   |
| Basic EPSIncome available to common stockholders   |   | $                                                              | 2,259,413 |   |   |   | 29,488,341 |   |   | $ | 0.08 |   |
|                                               |   |                                                           |      |   |   |   |   |   |   |   |   |   |
| Effect of Dilutive SecuritiesConvertible notes     |   |                                                           | 17,188    |   |   |   | 231,830 |   |   |   |   |   |
|                                               |   |                                                           |      |   |   |   |   |   |   |   |   |   |
| Diluted EPSIncome available to common stockholders |   | $                                                              | 2,276,601 |   |   |   | 29,720,171 |   |   | $ | 0.08 |   |

----

|                             |   | For the Years Ended June 30, |    |
|----------------------------------|--------|-------------------------------------------------------|---------|
|                             |   | 2010                                                  |    |   | 2009 |   |
|                             |   |                                                  |    |   |   |   |
| Current – PRC              |   | $                                                     | 907,083 |   |   | $ | 887,696 |   |
| Deferred                         |   |                                                  | -       |   |   |   | - |   |
| Total provision for income taxes |   | $                                                     | 907,083 |   |   | $ | 887,696 |   |

----

|                                                                                                             |   | For the Years Ended June 30, |      |
|------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|-----------|
|                                                                                                             |   | 2010                                                  |      |   | 2009 |   |
| Computed tax @ statutory rate of 25%($5,303,727*25% and $3,134,814*25% for June 30, 2010 and 2009, respectively) |   | $                                                     | 1,325,932 |   |   | $ | 783,704 |   |
|                                                                                                             |   |                                                  |      |   |   |   |   |   |
| Entertainment expense add-back                                                                                   |   |                                                  | 6,961     |   |   |   | 14,213 |   |
| Fine expense add back                                                                                            |   |                                                  | -         |   |   |   | 5,104 |   |
| Deductions permitted for nationally recognized brand name products                                               |   |                                                  | (54,866   | ) |   |   | - |   |
| Government subsidy income                                                                                        |   |                                                  | (176,401  | ) |   |   | (39,995 | ) |
| Deductions permitted for salaries paid to physically-challenged employees                                        |   |                                                  | (16,945   | ) |   |   | (9,878 | ) |
| Additional deductions permitted for R&D costs                                                                |   |                                                  | (254,515  | ) |   |   | - |   |
| Current year losses from U.S. parent holding company not subject to PRC income taxes                             |   |                                                  | 76,917    |   |   |   | 134,548 |   |
|                                                                                                             |   |                                                  |      |   |   |   |   |   |
| Total provision for income taxes                                                                                 |   | $                                                     | 907,083   |   |   | $ | 887,696 |   |

----

|                       |   | For the Years Ended June 30, |      |
|----------------------------|--------|-------------------------------------------------------|-----------|
|                       |   | 2010                                                  |      |   | 2009 |   |
|                       |   |                                                  |      |   |   |   |
| Cash paid for interest     |   | $                                                     | 1,200,270 |   |   | $ | 893,865 |   |
| Cash paid for income taxes |   | $                                                     | -         |   |   | $ | 110,199 |   |

----

|                                                                                                                                                          |   | June 30, 2010 |       |   | June 30, 2010 |   |       | Effect of |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|-------------------------|--------|------------|----------------|--------|
|                                                                                                                                                          |   | (Restated)              |       |   | (Originally)            |   |       | changes        |   |
| Assets                                                                                                                                                        |   |                    |       |   |                    |   |       |           |   |
| Current assets:                                                                                                                                               |   |                    |       |   |                    |   |       |           |   |
| Cash and cash equivalents                                                                                                                                     |   | $                       | 1,319,173  |   |                    | $      | 1,319,173  |           |   | $ | - |   |
| Restricted cash                                                                                                                                               |   |                    | 1,181,095  |   |                    |   | 1,181,095  |           |   |   | - |   |
| Accounts receivable, net of allowance for doubtful accounts of $83,295 at June 30, 2010                                                                       |   |                    | 9,292,310  |   |                    |   | 9,292,310  |           |   |   | - |   |
| Inventory                                                                                                                                                     |   |                    | 2,543,789  |   |                    |   | 2,543,789  |           |   |   | - |   |
| Loans to unrelated parties                                                                                                                                    |   |                    | 1,054,090  |   |                    |   | 1,054,090  |           |   |   | - |   |
| Bank loan security deposits                                                                                                                                   |   |                    | 1,031,100  |   |                    |   | 1,031,100  |           |   |   | - |   |
| Advance payments                                                                                                                                              |   |                    | 399,868    |   |                    |   | 693,473    |           |   |   | (293,605 | ) |
|         Advance payments– R & D                                                                             |   |                    | -          |   |                    |   | 2,088,714  |           |   |   | (2,088,714 | ) |
| Due from related party                                                                                                                                        |   |                    | 472,838    |   |                    |   | 472,838    |           |   |   | - |   |
| Other current assets                                                                                                                                          |   |                    | 521,739    |   |                    |   | 521,739    |           |   |   | - |   |
| Total current assets                                                                                                                                          |   |                    | 17,816,002 |   |                    |   | 20,198,321 |           |   |   | (2,382,319 | ) |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Property and equipment, net                                                                                                                                   |   |                    | 31,618,074 |   |                    |   | 31,618,074 |           |   |   | - |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Other assets:                                                                                                                                                 |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Advance payments – non-current                                                                                                                          |   |                    | 293,605    |   |                    |   | -          |           |   |   | 293,605 |   |
| Advance payments – R&D                                                                                                                              |   |                    | 2,088,714  |   |                    |   | -          |           |   |   | 2,088,714 |   |
| Intangibles, net                                                                                                                                              |   |                    | 15,669,375 |   |                    |   | 15,669,375 |           |   |   | - |   |
| Long-term investment                                                                                                                                          |   |                    | -          |   |                    |   | -          |           |   |   | - |   |
| Total other assets                                                                                                                                            |   |                    | 18,051,694 |   |                    |   | 15,669,375 |           |   |   | 2,382,319 |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Total assets                                                                                                                                                  |   | $                       | 67,485,770 |   |                    | $      | 67,485,770 |           |   | $ | - |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Liabilities                                                                                                                                                   |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Current liabilities:                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Accounts payable and accrued expenses                                                                                                                         |   | $                       | 3,119,646  |   |                    | $      | 3,119,646  |           |   | $ | - |   |
| Trade notes payable                                                                                                                                           |   |                    | -          |   |                    |   | -          |           |   |   | - |   |
| Short-term bank loans                                                                                                                                         |   |                    | 6,039,300  |   |                    |   | 6,039,300  |           |   |   | - |   |
| Current portion of long-term bank loans                                                                                                                       |   |                    | 294,600    |   |                    |   | 294,600    |           |   |   | - |   |
| Convertible notes payable                                                                                                                                     |   |                    | -          |   |                    |   | -          |           |   |   | - |   |
| Loans from unrelated party                                                                                                                                    |   |                    | 370,000    |   |                    |   | 370,000    |           |   |   | - |   |
| Advances from customers                                                                                                                                       |   |                    | 533,806    |   |                    |   | 533,806    |           |   |   | - |   |
| Income tax payable                                                                                                                                            |   |                    | 1,655,747  |   |                    |   | 1,655,747  |           |   |   | - |   |
| Other taxes payable                                                                                                                                           |   |                    | 77,895     |   |                    |   | 77,895     |           |   |   | - |   |
| Other current liabilities                                                                                                                                     |   |                    | 891,892    |   |                    |   | 891,892    |           |   |   | - |   |
| Total current liabilities                                                                                                                                     |   |                    | 12,982,886 |   |                    |   | 12,982,886 |           |   |   | - |   |
| Long-term bank loan                                                                                                                                           |   |                    | 14,435,400 |   |                    |   | 14,435,400 |           |   |   | - |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Total liabilities                                                                                                                                             |   |                    | 27,418,286 |   |                    |   | 27,418,286 |           |   |   | - |   |
| Equity                                                                                                                                                        |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Stockholders’ equity:                                                                                                                                   |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued or outstanding                                                              |   |                    | -          |   |                    |   | -          |           |   |   | - |   |
| Common stock, $0.001 par value, 200,000,000 shares authorized, 29,715,666 and 29,488,341 shares issued and outstanding at Jun 30, 2010 and 2009, respectively |   |                    | 29,716     |   |                    |   | 29,716     |           |   |   | - |   |
| Additional paid-in capital                                                                                                                                    |   |                    | 21,838,047 |   |                    |   | 21,838,047 |           |   |   | - |   |
| Statutory reserves                                                                                                                                            |   |                    | 1,181,189  |   |                    |   | 1,181,189  |           |   |   | - |   |
| Retained earnings                                                                                                                                             |   |                    | 13,810,157 |   |                    |   | 13,810,157 |           |   |   | - |   |
| Accumulated other comprehensive income                                                                                                                        |   |                    | 2,166,533  |   |                    |   | 2,166,533  |           |   |   | - |   |
| Total stockholders’ equity                                                                                                                              |   |                    | 39,025,642 |   |                    |   | 39,025,642 |           |   |   | - |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Noncontrolling interest                                                                                                                                       |   |                    | 1,041,842  |   |                    |   | 1,041,842  |           |   |   | - |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Total equity                                                                                                                                                  |   |                    | 40,067,484 |   |                    |   | 40,067,484 |           |   |   | - |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Total liabilities and equity                                                                                                                                  |   | $                       | 67,485,770 |   |                    | $      | 67,485,770 |           |   | $ | - |   |

----

|                                                                                                                                                          |   | June 30, 2009 |       |   | June 30, 2009 |   |       | Effect of |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|-------------------------|--------|------------|----------------|--------|
|                                                                                                                                                          |   | (Restated)              |       |   | (Originally)            |   |       | changes        |   |
| Assets                                                                                                                                                        |   |                    |       |   |                    |   |       |           |   |
| Current assets:                                                                                                                                               |   |                    |       |   |                    |   |       |           |   |
| Cash and cash equivalents                                                                                                                                     |   | $                       | 210,301    |   |                    | $      | 210,301    |           |   | $ | - |   |
| Restricted cash                                                                                                                                               |   |                    | 586,000    |   |                    |   | 586,000    |           |   |   | - |   |
| Accounts receivable, net of allowance for doubtful accounts of $20,222 at June 30, 2009                                                                       |   |                    | 8,560,592  |   |                    |   | 8,560,592  |           |   |   | - |   |
| Inventory                                                                                                                                                     |   |                    | 1,353,532  |   |                    |   | 1,353,532  |           |   |   | - |   |
| Loans to unrelated parties                                                                                                                                    |   |                    | 6,955,623  |   |                    |   | 6,955,623  |           |   |   | - |   |
| Bank loan security deposits                                                                                                                                   |   |                    | 733,233    |   |                    |   | 733,233    |           |   |   | - |   |
| Advance payments                                                                                                                                              |   |                    | 224,196    |   |                    |   | 866,868    |           |   |   | (642,672 | ) |
|         Advance payments– R & D                                                                             |   |                    | -          |   |                    |   | 2,956,370  |           |   |   | (2,956,370 | ) |
| Due from related party                                                                                                                                        |   |                    | -          |   |                    |   | -          |           |   |   | - |   |
| Other current assets                                                                                                                                          |   |                    | 273,391    |   |                    |   | 273,391    |           |   |   | - |   |
| Total current assets                                                                                                                                          |   |                    | 18,896,868 |   |                    |   | 22,495,910 |           |   |   | (3,599,042 | ) |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Property and equipment, net                                                                                                                                   |   |                    | 18,646,274 |   |                    |   | 18,646,274 |           |   |   | - |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Other assets:                                                                                                                                                 |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Advance payments – non-current                                                                                                                          |   |                    | 642,672    |   |                    |   | -          |           |   |   | 642,672 |   |
| Advance payments – R&D                                                                                                                              |   |                    | 2,956,370  |   |                    |   | -          |           |   |   | 2,956,370 |   |
| Intangibles, net                                                                                                                                              |   |                    | 11,335,978 |   |                    |   | 11,335,978 |           |   |   | - |   |
| Long-term investment                                                                                                                                          |   |                    | 2,930      |   |                    |   | 2,930      |           |   |   | - |   |
| Total other assets                                                                                                                                            |   |                    | 14,937,950 |   |                    |   | 11,338,908 |           |   |   | 3,599,042 |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Total assets                                                                                                                                                  |   | $                       | 52,481,092 |   |                    | $      | 52,481,092 |           |   | $ | - |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Liabilities                                                                                                                                                   |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Current liabilities:                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Accounts payable and accrued expenses                                                                                                                         |   | $                       | 659,142    |   |                    | $      | 659,142    |           |   | $ | - |   |
| Trade notes payable                                                                                                                                           |   |                    | 1,172,000  |   |                    |   | 1,172,000  |           |   |   | - |   |
| Short-term bank loans                                                                                                                                         |   |                    | 8,057,500  |   |                    |   | 8,057,500  |           |   |   | - |   |
| Current portion of long-term bank loans                                                                                                                       |   |                    | -          |   |                    |   | -          |           |   |   | - |   |
| Convertible notes payable                                                                                                                                     |   |                    | 500,000    |   |                    |   | 500,000    |           |   |   | - |   |
| Loans from unrelated party                                                                                                                                    |   |                    | 249,050    |   |                    |   | 249,050    |           |   |   | - |   |
| Advances from customers                                                                                                                                       |   |                    | 372,417    |   |                    |   | 372,417    |           |   |   | - |   |
| Income tax payable                                                                                                                                            |   |                    | 777,497    |   |                    |   | 777,497    |           |   |   | - |   |
| Other taxes payable                                                                                                                                           |   |                    | 37,975     |   |                    |   | 37,975     |           |   |   | - |   |
| Other current liabilities                                                                                                                                     |   |                    | 636,514    |   |                    |   | 636,514    |           |   |   | - |   |
| Total current liabilities                                                                                                                                     |   |                    | 12,462,095 |   |                    |   | 12,462,095 |           |   |   | - |   |
| Long-term bank loan                                                                                                                                           |   |                    | 5,470,310  |   |                    |   | 5,470,310  |           |   |   | - |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Total liabilities                                                                                                                                             |   |                    | 17,932,405 |   |                    |   | 17,932,405 |           |   |   | - |   |
| Equity                                                                                                                                                        |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Stockholders’ equity:                                                                                                                                   |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued or outstanding                                                              |   |                    | -          |   |                    |   | -          |           |   |   | - |   |
| Common stock, $0.001 par value, 200,000,000 shares authorized, 29,715,666 and 29,488,341 shares issued and outstanding at Jun 30, 2010 and 2009, respectively |   |                    | 29,488     |   |                    |   | 29,488     |           |   |   | - |   |
| Additional paid-in capital                                                                                                                                    |   |                    | 21,708,275 |   |                    |   | 21,708,275 |           |   |   | - |   |
| Statutory reserves                                                                                                                                            |   |                    | 729,135    |   |                    |   | 729,135    |           |   |   | - |   |
| Retained earnings                                                                                                                                             |   |                    | 9,750,035  |   |                    |   | 9,750,035  |           |   |   | - |   |
| Accumulated other comprehensive income                                                                                                                        |   |                    | 1,956,623  |   |                    |   | 1,956,623  |           |   |   | - |   |
| Total stockholders’ equity                                                                                                                              |   |                    | 34,173,556 |   |                    |   | 34,173,556 |           |   |   | - |   |
|                                                                                                                                                     |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Noncontrolling interest                                                                                                                                       |   |                    | 375,131    |   |                    |   | 375,131    |           |   |   | - |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Total equity                                                                                                                                                  |   |                    | 34,548,687 |   |                    |   | 34,548,687 |           |   |   | - |   |
|                                                                                                                                                          |   |                    |       |   |                    |   |       |           |   |   |   |   |
| Total liabilities and equity                                                                                                                                  |   | $                       | 52,481,092 |   |                    | $      | 52,481,092 |           |   | $ | - |   |

----

|                                                   |   | For the YearsEnded June 30,2010 |       |   | For the YearsEnded June 30,2010 |   |       | Effect ofchanges |   |
|--------------------------------------------------------|--------|-----------------------------------------------------|------------|--------|-----------------------------------------------------|--------|------------|-----------------------|--------|
|                                                   |   | (Restated)                                          |       |   | (Originally)                                        |   |       |                  |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |
| Sales                                                  |   | $                                                   | 31,258,662 |   |                                                | $      | 31,258,662 |                  |   | $ | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Cost of sales                                          |   |                                                | 22,956,708 |   |                                                |   | 22,956,708 |                  |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Gross profit                                           |   |                                                | 8,301,954  |   |                                                |   | 8,301,954  |                  |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Operating expenses                                     |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Selling expenses                                       |   |                                                | 80,090     |   |                                                |   | 80,090     |                  |   |   | - |   |
| General and administrative expenses                    |   |                                                | 3,881,655  |   |                                                |   | 3,881,655  |                  |   |   | - |   |
| Costs related to reverse merger                        |   |                                                | -          |   |                                                |   | -          |                  |   |   | - |   |
| Total operating expenses                               |   |                                                | 3,961,745  |   |                                                |   | 3,961,745  |                  |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Income from operations                                 |   |                                                | 4,340,209  |   |                                                |   | 4,340,209  |                  |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Other income (expenses):                               |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Government subsidy income                              |   |                                                | 705,602    |   |                                                |   | 705,602    |                  |   |   | - |   |
| Interest income                                        |   |                                                | 110,608    |   |                                                |   | -          |                  |   |   | 110,608 |   |
| Interest expense                                       |   |                                                | (397,700   | )      |                                                |   | (287,092   | )                     |   |   | (110,608 | ) |
| Other income (expenses), net                           |   |                                                | 545,008    |   |                                                |   | 545,008    |                  |   |   | - |   |
| Total other income (expenses)                          |   |                                                | 963,518    |   |                                                |   | 963,518    |                  |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Income before provision for income taxes               |   |                                                | 5,303,727  |   |                                                |   | 5,303,727  |                  |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Provision for income taxes                             |   |                                                | 907,083    |   |                                                |   | 907,083    |                  |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Net income before noncontrolling interest              |   |                                                | 4,396,644  |   |                                                |   | 4,396,644  |                  |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Less: net loss attributable to noncontrolling interest |   |                                                | (115,532   | )      |                                                |   | (115,532   | )                     |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Net income attributable to BEFUT                       |   | $                                                   | 4,512,176  |   |                                                | $      | 4,512,176  |                  |   | $ | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Basic earnings per share                               |   | $                                                   | 0.15       |   |                                                | $      | 0.15       |                  |   | $ | - |   |
| Diluted earnings per share                             |   | $                                                   | 0.15       |   |                                                | $      | 0.15       |                  |   | $ | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Weighted average number of common shares outstanding:  |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Basic                                                  |   |                                                | 29,545,797 |   |                                                |   | 29,545,797 |                  |   |   | - |   |
| Diluted                                                |   |                                                | 30,110,241 |   |                                                |   | 30,110,241 |                  |   |   | - |   |

----

|                                                   |   | For the YearsEnded June 30,2009 |       |   | For the YearsEnded June 30,2009 |   |       | Effect ofchanges |   |
|--------------------------------------------------------|--------|-----------------------------------------------------|------------|--------|-----------------------------------------------------|--------|------------|-----------------------|--------|
|                                                   |   | (Restated)                                          |       |   | (Originally)                                        |   |       |                  |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |
| Sales                                                  |   | $                                                   | 19,308,939 |   |                                                | $      | 19,308,939 |                  |   | $ | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Cost of sales                                          |   |                                                | 14,101,545 |   |                                                |   | 14,101,545 |                  |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Gross profit                                           |   |                                                | 5,207,394  |   |                                                |   | 5,207,394  |                  |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Operating expenses                                     |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Selling expenses                                       |   |                                                | 121,393    |   |                                                |   | 121,393    |                  |   |   | - |   |
| General and administrative expenses                    |   |                                                | 1,257,979  |   |                                                |   | 1,257,979  |                  |   |   | - |   |
| Costs related to reverse merger                        |   |                                                | 491,281    |   |                                                |   | -          |                  |   |   | 491,281 |   |
| Total operating expenses                               |   |                                                | 1,870,653  |   |                                                |   | 1,379,372  |                  |   |   | 491,281 |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Income from operations                                 |   |                                                | 3,336,741  |   |                                                |   | 3,828,022  |                  |   |   | (491,281 | ) |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Other income (expenses):                               |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Government subsidy income                              |   |                                                | 159,979    |   |                                                |   | 159,979    |                  |   |   | - |   |
| Interest income                                        |   |                                                | 15,027     |   |                                                |   | -          |                  |   |   | 15,027 |   |
| Interest expense                                       |   |                                                | (435,645   | )      |                                                |   | (420,618   | )                     |   |   | (15,027 | ) |
| Other income (expenses), net                           |   |                                                | 58,712     |   |                                                |   | (432,569   | )                     |   |   | 491,281 |   |
| Total other income (expenses)                          |   |                                                | (201,927   | )      |                                                |   | (693,208   | )                     |   |   | 491,281 |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Income before provision for income taxes               |   |                                                | 3,134,814  |   |                                                |   | 3,134,814  |                  |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Provision for income taxes                             |   |                                                | 887,696    |   |                                                |   | 887,696    |                  |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Net income before noncontrolling interest              |   |                                                | 2,247,118  |   |                                                |   | 2,247,118  |                  |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Less: net loss attributable to noncontrolling interest |   |                                                | (12,295    | )      |                                                |   | (12,295    | )                     |   |   | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Net income attributable to BEFUT                       |   | $                                                   | 2,259,413  |   |                                                | $      | 2,259,413  |                  |   | $ | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Basic earnings per share                               |   | $                                                   | 0.08       |   |                                                | $      | 0.08       |                  |   | $ | - |   |
| Diluted earnings per share                             |   | $                                                   | 0.07       |   |                                                | $      | 0.07       |                  |   | $ | - |   |
|                                                   |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Weighted average number of common shares outstanding:  |   |                                                |       |   |                                                |   |       |                  |   |   |   |   |
| Basic                                                  |   |                                                | 29,488,341 |   |                                                |   | 29,488,341 |                  |   |   | - |   |
| Diluted                                                |   |                                                | 30,431,891 |   |                                                |   | 30,431,891 |                  |   |   | - |   |

----

|                                                                                        |   | For the YearsEnded June 30,2010 |        |   | For the YearsEnded June 30,2010 |   |        | Effect ofchanges |   |
|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|-------------|--------|-----------------------------------------------------|--------|-------------|-----------------------|--------|
|                                                                                        |   | (Restated)                                          |        |   | (Originally)                                        |   |        |                  |   |
| Cash flows from operating activities:                                                       |   |                                                |        |   |                                                |   |        |                  |   |
| Net Income                                                                                  |   | $                                                   | 4,396,644   |   |                                                | $      | 4,512,176   |                  |   | $ | (115,532 | ) |
| Adjustments to reconcile net income to net cash Provided by (used in) operating activities: |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Depreciation and amortization                                                               |   |                                                | 1,644,756   |   |                                                |   | 1,644,756   |                  |   |   | - |   |
| Noncontrolling interest                                                                     |   |                                                | -           |   |                                                |   | (115,532    | )                     |   |   | 115,532 |   |
| Amortization of advance payments – R&D                                            |   |                                                | 880,020     |   |                                                |   | -           |                  |   |   | 880,020 |   |
| Donated intangible assets received                                                          |   |                                                | -           |   |                                                |   | -           |                  |   |   | - |   |
| Changes in current assets and current liabilities:                                          |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Restricted cash                                                                             |   |                                                | (595,095    | )      |                                                |   | -           |                  |   |   | (595,095 | ) |
| Accounts receivable                                                                         |   |                                                | (687,316    | )      |                                                |   | (687,316    | )                     |   |   | - |   |
| Inventory                                                                                   |   |                                                | (1,177,807  | )      |                                                |   | (1,177,807  | )                     |   |   | - |   |
| Advance payments                                                                            |   |                                                | 762,442     |   |                                                |   | 762,442     |                  |   |   | - |   |
| Advance payments for R&D                                                                |   |                                                | -           |   |                                                |   | -           |                  |   |   | - |   |
| Other current assets                                                                        |   |                                                | (249,487    | )      |                                                |   | (249,487    | )                     |   |   | - |   |
| Accounts payable and accrued expenses                                                       |   |                                                | 2,454,268   |   |                                                |   | 2,454,268   |                  |   |   | - |   |
| Trade notes payable                                                                         |   |                                                | (1,173,360  | )      |                                                |   | (1,173,360  | )                     |   |   | - |   |
| Advances from customers                                                                     |   |                                                | 158,674     |   |                                                |   | 158,674     |                  |   |   | - |   |
| Income tax payable                                                                          |   |                                                | 870,266     |   |                                                |   | 870,266     |                  |   |   | - |   |
| Other taxes payable                                                                         |   |                                                | 39,904      |   |                                                |   | 39,904      |                  |   |   | - |   |
| Other current liabilities                                                                   |   |                                                | 244,461     |   |                                                |   | 244,461     |                  |   |   | - |   |
| Total adjustments                                                                           |   |                                                | 3,171,726   |   |                                                |   | 2,771,269   |                  |   |   | 400,457 |   |
| Net cash provided by operating activities                                                   |   |                                                | 7,568,370   |   |                                                |   | 7,283,445   |                  |   |   | 284,925 |   |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Cash flows from investing activities:                                                       |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Loans to unrelated parties                                                                  |   |                                                | 5,914,113   |   |                                                |   | 5,914,113   |                  |   |   | - |   |
| Advance payments for property and equipment                                                 |   |                                                | (583,921    | )      |                                                |   | (583,921    | )                     |   |   | - |   |
|         Advance payments for R&D                |   |                                                | -           |   |                                                |   | 880,020     |                  |   |   | (880,020 | ) |
| Due from related party                                                                      |   |                                                | (470,816    | )      |                                                |   | (470,816    | )                     |   |   | - |   |
| Additions to property and equipment                                                         |   |                                                | (18,715,772 | )      |                                                |   | (18,715,772 | )                     |   |   | - |   |
| Additions to construction in progress                                                       |   |                                                | -           |   |                                                |   | -           |                  |   |   | - |   |
| Acquisition of intangible assets                                                            |   |                                                | -           |   |                                                |   | -           |                  |   |   | - |   |
| Long-term investment                                                                        |   |                                                | 2,933       |   |                                                |   | 2,933       |                  |   |   | - |   |
| Net cash used in investing activities                                                       |   |                                                | (13,853,463 | )      |                                                |   | (12,973,443 | )                     |   |   | (880,020 | ) |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Cash flows from financing activities:                                                       |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Bank loan security deposits                                                                 |   |                                                | (292,607    | )      |                                                |   | (292,607    | )                     |   |   | - |   |
| Proceeds of short-term bank loans                                                           |   |                                                | 6,013,470   |   |                                                |   | -           |                  |   |   | 6,013,470 |   |
| Repayment of short-term bank loans                                                          |   |                                                | (8,066,850  | )      |                                                |   | (2,053,380  | )                     |   |   | (6,013,470 | ) |
| Convertible notes payable                                                                   |   |                                                | (500,000    | )      |                                                |   | (500,000    | )                     |   |   | - |   |
| Loans from unrelated parties                                                                |   |                                                | 120,661     |   |                                                |   | 120,661     |                  |   |   | - |   |
| Proceeds of long-term bank loans                                                            |   |                                                | 14,667,000  |   |                                                |   | 9,190,342   |                  |   |   | 5,476,658 |   |
| Repayment of long-term bank loans                                                           |   |                                                | (5,476,658  | )      |                                                |   | -           |                  |   |   | (5,476,658 | ) |
| Additional paid-in capital                                                                  |   |                                                | 130,000     |   |                                                |   | 130,000     |                  |   |   | - |   |
| Contribution from minority shareholder                                                      |   |                                                | 777,351     |   |                                                |   | 777,351     |                  |   |   | - |   |
| Net cash provided by financing activities                                                   |   |                                                | 7,372,367   |   |                                                |   | 7,372,367   |                  |   |   | - |   |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Effect of foreign currency translation on cash                                              |   |                                                | 21,598      |   |                                                |   | 21,598      |                  |   |   | - |   |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Net increase in cash and cash equivalents                                                   |   |                                                | 1,108,872   |   |                                                |   | 1,703,967   |                  |   |   | (595,095 | ) |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Cash and cash equivalents at beginning of year                                              |   |                                                | 210,301     |   |                                                |   | 796,301     |                  |   |   | (586,000 | ) |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Cash and cash equivalents at end of year                                                    |   | $                                                   | 1,319,173   |   |                                                | $      | 2,500,268   |                  |   | $ | (1,181,095 | ) |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Supplemental schedule of non cash activities:                                               |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Construction in progress transferred to property and equipment                              |   | $                                                   | 11,246,719  |   |                                                | $      | 11,246,719  |                  |   | $ | - |   |
| Construction in progress transferred to intangible assets                                   |   | $                                                   | 5,487,937   |   |                                                | $      | 5,487,937   |                  |   | $ | - |   |
| Intangible assets received in exchange for ownership                                        |   | $                                                   | -           |   |                                                | $      | -           |                  |   | $ | - |   |

----

|                                                                                        |   | For the YearsEnded June 30,2009 |        |   | For the YearsEnded June 30,2009 |   |        | Effect ofchanges |   |
|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|-------------|--------|-----------------------------------------------------|--------|-------------|-----------------------|--------|
|                                                                                        |   | (Restated)                                          |        |   | (Originally)                                        |   |        |                  |   |
| Cash flows from operating activities:                                                       |   |                                                |        |   |                                                |   |        |                  |   |
| Net Income                                                                                  |   | $                                                   | 2,247,118   |   |                                                | $      | 2,259,413   |                  |   | $ | (12,295 | ) |
| Adjustments to reconcile net income to net cash Provided by (used in) operating activities: |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Depreciation and amortization                                                               |   |                                                | 553,064     |   |                                                |   | 553,064     |                  |   |   | - |   |
| Noncontrolling interest                                                                     |   |                                                | -           |   |                                                |   | (12,295     | )                     |   |   | 12,295 |   |
| Amortization of advance payments – R&D                                            |   |                                                | -           |   |                                                |   | -           |                  |   |   | - |   |
| Donated intangible assets received                                                          |   |                                                | (155,290    | )      |                                                |   | (155,290    | )                     |   |   | - |   |
| Changes in current assets and current liabilities:                                          |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Restricted cash                                                                             |   |                                                | (586,000    | )      |                                                |   | -           |                  |   |   | (586,000 | ) |
| Accounts receivable                                                                         |   |                                                | (2,634,196  | )      |                                                |   | (2,634,196  | )                     |   |   | - |   |
| Inventory                                                                                   |   |                                                | 297,172     |   |                                                |   | 297,172     |                  |   |   | - |   |
| Advance payments                                                                            |   |                                                | 307,584     |   |                                                |   | 307,584     |                  |   |   | - |   |
| Advance payments for R&D                                                                |   |                                                | (2,956,370  | )      |                                                |   | -           |                  |   |   | (2,956,370 | ) |
| Other current assets                                                                        |   |                                                | 634,375     |   |                                                |   | 634,375     |                  |   |   | - |   |
| Accounts payable and accrued expenses                                                       |   |                                                | (854,391    | )      |                                                |   | (854,391    | )                     |   |   | - |   |
| Trade notes payable                                                                         |   |                                                | 1,172,000   |   |                                                |   | 1,172,000   |                  |   |   | - |   |
| Advances from customers                                                                     |   |                                                | 17,522      |   |                                                |   | 17,522      |                  |   |   | - |   |
| Income tax payable                                                                          |   |                                                | 777,497     |   |                                                |   | 777,497     |                  |   |   | - |   |
| Other taxes payable                                                                         |   |                                                | (9,173      | )      |                                                |   | (9,173      | )                     |   |   | - |   |
| Other current liabilities                                                                   |   |                                                | 191,354     |   |                                                |   | 191,354     |                  |   |   | - |   |
| Total adjustments                                                                           |   |                                                | (3,244,852  | )      |                                                |   | 285,223     |                  |   |   | (3,530,075 | ) |
| Net cash provided by operating activities                                                   |   |                                                | (997,734    | )      |                                                |   | 2,544,636   |                  |   |   | (3,542,370 | ) |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Cash flows from investing activities:                                                       |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Loans to unrelated parties                                                                  |   |                                                | (6,448,170  | )      |                                                |   | (6,448,170  | )                     |   |   | - |   |
| Advance payments for property and equipment                                                 |   |                                                | (642,672    | )      |                                                |   | (642,672    | )                     |   |   | - |   |
| Advance payments for R&D                                                                |   |                                                | -           |   |                                                |   | (2,956,370  | )                     |   |   | 2,956,370 |   |
| Due from related party                                                                      |   |                                                | -           |   |                                                |   | -           |                  |   |   | - |   |
| Additions to property and equipment                                                         |   |                                                | (142,478    | )      |                                                |   | (142,478    | )                     |   |   | - |   |
| Additions to construction in progress                                                       |   |                                                | (3,395,532  | )      |                                                |   | (3,395,532  | )                     |   |   | - |   |
| Acquisition of intangible assets                                                            |   |                                                | (83,505     | )      |                                                |   | (83,505     | )                     |   |   | - |   |
| Long-term investment                                                                        |   |                                                | -           |   |                                                |   | -           |                  |   |   | - |   |
| Net cash used in investing activities                                                       |   |                                                | (10,712,357 | )      |                                                |   | (13,668,727 | )                     |   |   | 2,956,370 |   |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Cash flows from financing activities:                                                       |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Bank loan security deposits                                                                 |   |                                                | (100,353    | )      |                                                |   | (100,353    | )                     |   |   | - |   |
| Proceeds of short-term bank loans                                                           |   |                                                | 8,057,500   |   |                                                |   | 5,860,000   |                  |   |   | 2,197,500 |   |
| Repayment of short-term bank loans                                                          |   |                                                | (2,197,500  | )      |                                                |   | -           |                  |   |   | (2,197,500 | ) |
| Convertible notes payable                                                                   |   |                                                | 500,000     |   |                                                |   | 500,000     |                  |   |   | - |   |
| Loans from unrelated parties                                                                |   |                                                | 249,050     |   |                                                |   | 249,050     |                  |   |   | - |   |
| Proceeds of long-term bank loans                                                            |   |                                                | -           |   |                                                |   | -           |                  |   |   | - |   |
| Repayment of long-term bank loans                                                           |   |                                                | (316,440    | )      |                                                |   | (316,440    | )                     |   |   | - |   |
| Additional paid-in capital                                                                  |   |                                                | 5,301,971   |   |                                                |   | 5,301,971   |                  |   |   | - |   |
| Contribution from minority shareholder                                                      |   |                                                | -           |   |                                                |   | -           |                  |   |   | - |   |
| Net cash provided by financing activities                                                   |   |                                                | 11,494,228  |   |                                                |   | 11,494,228  |                  |   |   | - |   |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Effect of foreign currency translation on cash                                              |   |                                                | 73,115      |   |                                                |   | 73,115      |                  |   |   | - |   |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Net increase in cash and cash equivalents                                                   |   |                                                | (142,748    | )      |                                                |   | 443,252     |                  |   |   | (586,000 | ) |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Cash and cash equivalents at beginning of year                                              |   |                                                | 353,049     |   |                                                |   | 353,049     |                  |   |   | - |   |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Cash and cash equivalents at end of year                                                    |   | $                                                   | 210,301     |   |                                                | $      | 796,301     |                  |   | $ | (586,000 | ) |
|                                                                                        |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Supplemental schedule of non cash activities:                                               |   |                                                |        |   |                                                |   |        |                  |   |   |   |   |
| Construction in progress transferred to property and equipment                              |   | $                                                   | -           |   |                                                | $      | -           |                  |   | $ | - |   |
| Construction in progress transferred to intangible assets                                   |   | $                                                   | -           |   |                                                | $      | -           |                  |   | $ | - |   |
| Intangible assets received in exchange for ownership                                        |   | $                                                   | 11,383,050  |   |                                                | $      | 11,383,050  |                  |   | $ | - |   |

----