UNITED
STATES

SECURITIES
AND EXCHANGE COMMISSION

Washington,
D.C. 20549



FORM
10-Q



|[ x ]  | QUARTERLY REPORT PURSUANT
    TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|------ | -------------------------------------------------------------------------------------------
|       |                                                                                            
|       | For the quarterly period ended March
    31, 2013                                          
|       |                                                                                            
|[    ] | TRANSITION REPORT UNDER SECTION
    13 OR 15(d) OF THE EXCHANGE ACT                        
|       |                                                                                            
|       | For the transition period from [          ]
    to [          ]                            



--------------------------------------------------------------------

Commission
File Number: 000-50431



CLIXSTER
MOBILE GROUP INC

---------------------------------------------------------------------

(Exact
name of small business issuer as specified in its charter)



|Texas                                                              | 7310                                                         | 32-0034926                          
|------------------------------------------------------------------ | ------------------------------------------------------------ | ------------------------------------
|-----------------------                                            | ------------------------                                     | ----------------------              
|(State or other jurisdiction of incorporation
    or organization) | (Primary Standard Industrial Classification
    Code Number) | (I.R.S. Employer Identification No.)
|                                                                   |                                                              |                                     



|No.
                           3, Jalan Sri Hartamas 7, Taman Sri Hartamas
        50480
        Kuala Lumpur, Malaysia | -----           
|----------------------------------------------------------------------------------------------------------------------- | ----------------
|---------------------------------------------------------------------                                                   | ----------------
|(Address of Company's principal executive
    offices)                                                                  | (Zip Code)      



Tel:
+60 11221 12211      Fax: +60 3 2726 2640

-------------------------------------------------

(Company's
Telephone Number, Including Area Code)



CHINA
MEDIA GROUP CORPORATION

No.
55 Jalan Snuker 13/28, Tadisma Business Park,

Section
13, 40100 Shah Alam, Selangor Malaysia

(Former
Name, Former Address and Former Fiscal Year if Changed Since Last Report)



|Indicate by check whether
    the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
    during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has
    been subject to such filing requirements for the past 90 days.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Yes
[ x ]     No [    ]



|Indicate
    by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
    Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during
    the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Yes
[ x ]     No [   ]



|Indicate by check whether
    the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.
    See the definitions of "large accelerated filer," "accelerated filer" and "small reporting company"
    in Rule 12b-2 of the Exchange Act. (check one)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Large
Accelerated Filer [   ]  Accelerated Filer[   ]   Non-Accelerated Filer [   ]  
Smaller Reporting Company  [x ]



SEC
1296 (03-10) Potential persons who are to respond to the collection of information contained in this form are not required
to respond unless the form displays a currently valid OMB control number.



|Indicate by check mark
    whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
|--------------------------------------------------------------------------------------------------------------------



Yes
[   ]     No[ x ]



|The number of common equity
    shares outstanding as of May 31, 2014 was 11,307,232,960 shares of Common Stock, no par value.
|------------------------------------------------------------------------------------------------------------------------------



---



|FORWARD-LOOKING STATEMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|This quarterly report contains forward-looking
    statements as that term is defined in thePrivate Securities Litigation Reform Act of 1995. These statements relate
    to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology
    such as "may", "will", "should", "expects", "plans", "anticipates",
    "believes", "estimates", "predicts", "potential" or "continue" or the negative
    of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks,
    uncertainties and other factors, including the risks in the section entitled "Risk Factors” that may cause our
    or our industry's actual results, levels of activity, performance or achievements to be materially different from any future
    results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Although we believe that the expectations
    reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance
    or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend
    to update any of the forward-looking statements to conform these statements to actual results.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Our financial statements are stated
    in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles. In this
    quarterly report, unless otherwise specified, all dollar amounts are expressed in United States Dollars.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|As used in this quarterly report, the
    terms "we", "us", "our", "CHMD", and "the Company" mean Clixster Mobile
    Group Inc. (formerly known as China Media Group Corporation) and its subsidiaries unless otherwise indicated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           



-
1 -



---



|PART I
|------



|        |                                            
|------- | -------------------------------------------
|Item 1. | Condensed Consolidated Financial Statements







Clixster
Mobile Group Inc.

(Formerly
China Media Group Corporation)

Condensed
Consolidated Financial Statements

(Unaudited)

(Expressed
In United States Dollars)





|Condensed Consolidated
    Balance Sheets as of March 31, 2013 and December 31, 2012 (Audited)
|----------------------------------------------------------------------------------------------



|Condensed Consolidated
    Statements of Operations for the three months ended March 31, 2013 and 2012
|------------------------------------------------------------------------------------------------------



|Condensed Consolidated
    Statements of Stockholders' Equity for the three months ended March 31, 2013
|-------------------------------------------------------------------------------------------------------



|Condensed
    Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2012
|------------------------------------------------------------------------------------------------------



|Notes to Condensed
    Consolidated Financial Statements
|--------------------------------------------------------



F-1



---



|CLIXSTER
    MOBILE GROUP INC                 
|----------------------------------------------
|(Formerly
    China Media Group Corporation)  
|CONDENSED
    CONSOLIDATED BALANCE SHEETS     
|AS
    OF MARCH 31, 2013 AND DECEMBER 31, 2012



|                                                                                                                                     |       |  | March
                                         31
        2013 |  | December
                                         31
        2012
|------------------------------------------------------------------------------------------------------------------------------------ | ----- |  | -------------------------------------------------------------- |  | -----------------------------------------------------------------
|                                                                                                                                     | Notes |  | (Unaudited)                                                    |  | (Audited)                                                        
|                                                                                                                                     |       |  | US$                                                            |  | US$                                                              
|ASSETS                                                                                                                               |       |  |                                                                |  |                                                                  
|Current assets:                                                                                                                      |       |  |                                                                |  |                                                                  
|Cash and cash
    equivalents                                                                                                        |       |  | 7,672                                                          |  | 1,144                                                            
|Trade receivables                                                                                                                    |       |  | 754                                                            |  | -                                                                
|Assets of operations
    held for sale                                                                                               | 6     |  | 1,550,364                                                      |  | 1,673,429                                                        
|Prepayments,
    deposit and other receivables                                                                                       |       |  | 285                                                            |  | 1,213                                                            
|                                                                                                                                     |       |  |                                                                |  |                                                                  
|Total current
    assets                                                                                                             |       |  | 1,559,075                                                      |  | 1,675,786                                                        
|                                                                                                                                     |       |  |                                                                |  |                                                                  
|LIABILITIES
    AND STOCKHOLDERS' EQUITY                                                                                             |       |  |                                                                |  |                                                                  
|Current liabilities:                                                                                                                 |       |  |                                                                |  |                                                                  
|Trade payables                                                                                                                       |       |  | 263                                                            |  | -                                                                
|Other payables
    and accruals                                                                                                      | 7     |  | 739,407                                                        |  | 699,033                                                          
|Liabilities of
    operations held for sale                                                                                          | 6     |  | 1,946,036                                                      |  | 1,983,834                                                        
|Option liabilities                                                                                                                   |       |  | 236,504                                                        |  | 236,504                                                          
|Total current
    liabilities                                                                                                        |       |  | 2,922,210                                                      |  | 2,919,371                                                        
|                                                                                                                                     |       |  |                                                                |  |                                                                  
|Long-term
    debts:                                                                                                                 |       |  |                                                                |  |                                                                  
|Shareholder loans                                                                                                                    | 8     |  | 2,000,000                                                      |  | 2,000,000                                                        
|                                                                                                                                     |       |  | 2,000,000                                                      |  | 2,000,000                                                        
|                                                                                                                                     |       |  |                                                                |  |                                                                  
|Total liabilities                                                                                                                    |       |  | 4,922,210                                                      |  | 4,919,371                                                        
|                                                                                                                                     |       |  |                                                                |  |                                                                  
|Commitments and
    contingencies                                                                                                    |       |  |                                                                |  |                                                                  
|                                                                                                                                     |       |  |                                                                |  |                                                                  
|Stockholders'
    equity:                                                                                                            |       |  |                                                                |  |                                                                  
|Common stock,
    no par value, 85,000,000,000 shares authorized, 1,113,623,296  (2012: 1,113,623,296) shares issued and outstanding | 4     |  | 2,580,543                                                      |  | 2,580,543                                                        
|Comprehensive
    income                                                                                                             |       |  | 182,521                                                        |  | 171,343                                                          
|Non-controlling
    interest                                                                                                         |       |  | (36)                                                           |  | (36)                                                             
|Accumulated deficits                                                                                                                 |       |  | (6,126,163)                                                    |  | (5,995,435)                                                      
|Total stockholders'
    equity                                                                                                       |       |  | (3,363,135)                                                    |  | (3,243,585)                                                      
|                                                                                                                                     |       |  |                                                                |  |                                                                  
|Total
    liabilities and shareholders’ equity                                                                                       |       |  | 1,559,075                                                      |  | 1,675,786                                                        





The
accompanying notes are an integral part of these condensed consolidated financial statements





F-2



---



|CLIXSTER
    MOBILE GROUP INC                         
|------------------------------------------------------
|(Formerly China Media
    Group Corporation)          
|CONDENSED CONSOLIDATED
    STATEMENTS OF OPERATIONS   
|FOR THE THREE MONTHS
    ENDED MARCH 31, 2013 AND 2012
|(UNAUDITED)                                           



|                                                                 |  |       | Three
                    Months Ended
        31
        March
|---------------------------------------------------------------- |  | ----- | ---------------------------------------------------------------
|                                                                 |  |       | 2013                                                           
|                                                                 |  | Notes | US$                                                            
|                                                                 |  |       |                                                                
|Net revenue                                                      |  |       | 67,060                                                         
|Cost of revenue                                                  |  |       | (45,912)                                                       
|Gross profit                                                     |  |       | 21,148                                                         
|                                                                 |  |       |                                                                
|Operating expenses:                                              |  |       |                                                                
|Administration expenses                                          |  |       | (14,929)                                                       
|Selling and distribution expenses                                |  |       | (949)                                                          
|Profit from operations                                           |  |       | 5,270                                                          
|                                                                 |  |       |                                                                
|Other income / (expenses)                                        |  |       |                                                                
|Interest expenses                                                |  |       | (40,777)                                                       
|                                                                 |  |       |                                                                
|Loss before taxation                                             |  |       | (35,507)                                                       
|                                                                 |  |       |                                                                
|Taxation                                                         |  |       | -                                                              
|Loss from continuing operations                                  |  |       | (35,507)                                                       
|                                                                 |  |       |                                                                
|(Loss)/ gain from discontinued operations,
    net of tax        |  |       | (95,221)                                                       
|Net (loss)/profit before uncontrolled
    interest               |  |       | (130,728)                                                      
|                                                                 |  |       |                                                                
|Non-controlling interest                                         |  |       | -                                                              
|Net (loss)/profit                                                |  |       | (130,728)                                                      
|                                                                 |  |       |                                                                
|Other comprehensive income                                       |  |       |                                                                
|Foreign currency
    translation gain                            |  |       | 11,178                                                         
|Comprehensive (loss)/income                                      |  |       | (119,550)                                                      
|                                                                 |  |       |                                                                
|Basic and diluted profit per common
    share                    |  |       | (0.00)                                                         
|                                                                 |  |       |                                                                
|Basic and diluted weighted average
    number of common shares * |  |       | 1,113,623,296                                                  





|* | Weighted
    average number of shares used to compute basic and diluted loss per share for the three months ended March 31, 2013 and 2012
    are the same since the effect of dilutive securities are anti-dilutive.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The
accompanying notes are an integral part of these condensed consolidated financial statements.





F-3



---



|CLIXSTER
    MOBILE GROUP INC                                
|-------------------------------------------------------------
|(Formerly China Media
    Group Corporation)                 
|CONDENSED CONSOLIDATED
    STATEMENTS OF STOCKHOLDERS' EQUITY
|FOR
        THE THREE MONTHS ENDED MARCH 31, 2013            
|(UNAUDITED)                                                  

|                                                             |                      |  |                         |  |                          |  |                          |  |                              |  |                              
|------------------------------------------------------------ | -------------------- |  | ----------------------- |  | ------------------------ |  | ------------------------ |  | ---------------------------- |  | -----------------------------
|                                                             | Number
    of shares |  | Common
    Stock Amount |  | Comprehensive
    Income |  | Accumulated
    Deficits |  | Non-controlling
    Interest |  | Total
    Shareholders Equity
|                                                             |                      |  | US$                     |  | US$                      |  | US$                      |  | US$                          |  | US$                          
|                                                             |                      |  |                         |  |                          |  |                          |  |                              |  |                              
|Balance
    at January 1, 2013 (Audited)                     | 1,113,623,296        |  | 2,580,543               |  | 171,343                  |  | (5,995,435)              |  | (36)                         |  | (3,243,585)                  
|                                                             |                      |  |                         |  |                          |  |                          |  |                              |  |                              
|Comprehensive
    income - foreign currency translation gain | -                    |  | -                       |  | 11,178                   |  | -                        |  | -                            |  | 11,178                       
|Net
    loss for the period                                  | -                    |  | -                       |  | -                        |  | (130,728)                |  | -                            |  | (130,728)                    
|                                                             |                      |  |                         |  |                          |  |                          |  |                              |  |                              
|Balance
    at March 31, 2013                                | 1,113,623,296        |  | 2,580,543               |  | 182,521                  |  | (6,126,163)              |  | (36)                         |  | (3,363,135)                  
|                                                             |                      |  |                         |  |                          |  |                          |  |                              |  |                              



The
accompanying notes are an integral part of these condensed consolidated financial statements.





F-4



---



|CLIXSTER
                            MOBILE GROUP INC 
|------------------------------------------------------
|(Formerly China Media
    Group Corporation)          
|CONDENSED CONSOLIDATED
    STATEMENTS OF CASH FLOWS   
|FOR THE THREE MONTHS
    ENDED MARCH 31, 2013 AND 2012
|(UNAUDITED)                                           

|                                                                               |  |  |                                                                 |  |          
|------------------------------------------------------------------------------ |  |  | --------------------------------------------------------------- |  | ---------
|                                                                               |  |  | Three
                    Months Ended
        March
        31
|                                                                               |  |  | 2013                                                            |  | 2012     
|                                                                               |  |  | US$                                                             |  | US$      
|Cash flows from operating activities:                                          |  |  |                                                                 |  |          
|Net (loss)/profit                                                              |  |  | (130,728)                                                       |  | 271,298  
|Adjustment to reconcile net loss to net
    cash used in operating activities: |  |  |                                                                 |  |          
|(Increase) / decrease in assets:                                               |  |  |                                                                 |  |          
|Trade receivables                                                              |  |  | (754)                                                           |  | -        
|Prepayments, deposit
    and other receivables                                 |  |  | 928                                                             |  | -        
|(Increase) / decrease in liabilities:                                          |  |  |                                                                 |  |          
|Trade payables                                                                 |  |  | 263                                                             |  | -        
|Other payables and accruals                                                    |  |  | 40,374                                                          |  | -        
|Assets/liabilities of
    operations held for sale, net                        |  |  | 85,267                                                          |  | (271,298)
|Net cash used in operating activities                                          |  |  | (4,650)                                                         |  | -        
|                                                                               |  |  |                                                                 |  |          
|Cash flows from investing activities:                                          |  |  |                                                                 |  |          
|Net cash provided by investing activities                                      |  |  | -                                                               |  | -        
|                                                                               |  |  |                                                                 |  |          
|Cash flows from financing activities
    :                                     |  |  |                                                                 |  |          
|Net cash used in financing activities                                          |  |  | -                                                               |  | -        
|                                                                               |  |  |                                                                 |  |          
|Net decrease in cash and cash equivalents                                      |  |  | (4,650)                                                         |  | -        
|Effect of exchange rate changes on cash
    and cash equivalents               |  |  | 11,178                                                          |  | -        
|Cash and cash equivalents - net, beginning                                     |  |  | 1,144                                                           |  | -        
|                                                                               |  |  |                                                                 |  |          
|Cash and cash equivalents - net, ending                                        |  |  | 7,672                                                           |  | -        
|                                                                               |  |  |                                                                 |  |          
|Supplemental disclosure of cash flow information:                              |  |  |                                                                 |  |          
|Interests paid                                                                 |  |  | -                                                               |  | -        
|                                                                               |  |  |                                                                 |  |          
|Income tax paid                                                                |  |  | -                                                               |  | -        
|                                                                               |  |  |                                                                 |  |          



The
accompanying notes are an integral part of these condensed consolidated financial statements.



F-5



---



|CLIXSTER
                              MOBILE GROUP INC
        (Formerly
        China Media Group Corporation)
|----------------------------------------------------------------------------------------------------------------
|NOTES TO CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS                                                        



|NOTE 1 | ORGANIZATION
|------ | ------------



|China
    Media Group Corporation (the "Company") is a Texas corporation, incorporated on October 1, 2002.
|----------------------------------------------------------------------------------------------------------



|In January
    2006, the Company established a wholly owned subsidiary Ren Ren Media Group Limited, a company incorporated in Hong Kong,
    as its operating company in Hong Kong. In March 2007, the Company acquired all the outstanding shares of Good World Investments
    Limited, a British Virgin Islands corporation that holds 50% of Beijing Ren Ren Health Culture Promotion Limited, a company
    incorporated in China in the advertising and media business in China.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|In May
    2009, the Group established a 50/50 joint venture company, ATC Marketing Limited, which is to be in the business of marketing
    and distributing of convergent multimedia communication and internet devices.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|In June
    2012, the Company acquired 100% equity interests of A-Team Resources Sdn. Bhd. (“ATeam”), a distributor of electronics
    and light appliances, at a consideration price of $2,011,607 by the issuance of 558,779,837 shares, at a price of $0.0036
    per share.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|The Group
    is engaged in the distribution of electronics and light appliances and the marketing and distribution of convergent devices
    and the consultancy of resources management.  During the period, the Group derived its revenue from consultancy
    services and in the distribution of electronic products.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Subsequent
to the period end, on January 15, 2014, the Company sold its subsidiaries namely Ren Ren Media Group Limited, ATeam Resources
Sdn Bhd, Good World Investments Limited and Beijing Ren Ren Health Culture Promotion Limited (the “Disposed Subsidiaries”)
containing its light appliances distribution business and advertising business in China.



|Subsequent
    to the balance sheet date, on January 31, 2014, the Group closed the transaction to acquire 63.2% of Clixster Mobile Sdn.
    Bhd. (“Clixster Mobile”), a company incorporated in Malaysia by the issuance of 10,193,609,664 shares in the Company.  Clixster
    Mobile is a mobile virtual network provider and principally engaged in providing cellular and mobile broadband services in
    Malaysia.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|NOTE 2 | SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS
|------ | ----------------------------------------------------------------------



|Basis
    of Presentation
|-------------------------



|The
                              accompanying condensed consolidated financial statements have been prepared in accordance with accounting
                              principals generally accepted in the United States of America and the rules of the U.S. Securities
                              and Exchange Commission, and should be read in conjunction with the audited financial statements
                              and notes thereto for the year ended December 31, 2012. As permitted under the rules of the SEC
                              for interim reporting, they do not include all information and footnotes required by accounting
                              principles generally accepted in the United States of America for complete financial statements.
                              However, except as disclosed herein, there has been no material change in the information disclosed
                              in the notes to the financial statements for the year ended December 31, 2012 included in the Company
                              Form 10-K filed with the Securities and Exchange Commission.
        
        Subsequent
        to the reporting period, on January 15, 2014 we completed the sale of our distribution in light appliances and the advertising
        business in China (the “Disposed Business”) (Note 12(d)). As a result in this quarter, we reported the operating
        results of the Disposed Business as Discontinued Operations - Net of Tax in the condensed consolidated statement
        of income in all periods presented. In addition, the assets and liabilities associated with these businesses are reported
        as Asset of Operations Held for Sale and Liabilities of Operations Held For Sale in the condensed consolidation balance
        sheets (refer to Note 6).
        
        In
        the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation
        of financial position and results of operations for the interim period presented have been included. Operating results
        for the interim period are not necessary indicative of the results that may be expected for the respective full.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Principles
    of Consolidation
|-------------------------------



|The condensed
    consolidated financial statements for the period ended March 31, 2013 include the financial statements of the Company, its
    wholly owned subsidiary CMG Resources Sdn. Bhd. and its 50% subsidiary ATC Marketing Limited.  The Company consolidated
    the 50% ownership company during the period as it controls the Board of Director of this company.  Subsequent to
    the period of this report on January 15, 2014, the Company disposed its subsidiary companies namely Ren Ren Media Group Limited,
    Good World Investments Limited, ATeam Resources Sdn Bhd and its 50% subsidiary Beijing Ren Ren Health Culture Promotion Limited
    (“collectively the Disposed Companies”). Accordingly the operating results of the Disposed Companies are disclosed
    as Discontinued Companies - Net of Tax in the condensed statement of income for all period presented.  In addition,
    the assets and liabilities of these Disposed Companies are reported as Assets of Operations Held for Sale and Liabilities
    of Discontinued Operations Held for Sale, as appropriate, in the condensed consolidated balance sheet.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|The results
    of subsidiaries acquired or sold during the period are consolidated from their effective dates of acquisition or through their
    effective dates of disposition, respectively.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|All significant
    inter-company transactions and balances have been eliminated on consolidation.
|--------------------------------------------------------------------------------------------------





F-6



---



|CLIXSTER
                              MOBILE GROUP INC
        (Formerly
        China Media Group Corporation)
|----------------------------------------------------------------------------------------------------------------
|NOTES TO CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS                                                        



|NOTE 2 | SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS (Continued)
|------ | ----------------------------------------------------------------------------------



|Use of estimates
|----------------



|The preparation
    of financial statements in conformity with generally accepted accounting principles requires management to make estimates
    and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
    at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual
    results could differ from those estimates.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Net
    (Loss) Income per Share
|-------------------------------



|Basic
    earnings per share were computed by dividing net loss by the weighted average number of shares of common stock outstanding
    during the year. Diluted loss per common share for the period and year ended March 31, 2013 and December 31, 2012 respectively,
    are not presented as it would be anti-dilutive.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Fair
    Value Measurements and Disclosures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|ASC 820 "Fair
    Value Measurements and Disclosures" codified SFAS No. 107, "Disclosures about Fair Value of Financial Instruments".
    ASC 820 applies to all entities, transactions, and instruments that require or permit fair value measurements, with specific
    exceptions and qualifications. The Company is required to disclose estimated fair values of financial instruments. Unless
    otherwise indicated, the fair values of all reported assets and liabilities, which represent financial instruments, none of
    which are held for trading purposes, approximate are carrying values of such amounts.



|Cash and Cash Equivalents
|-------------------------



|The Company
    considers all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible
    into cash to be cash equivalents.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Assets held for sale
|--------------------



|Non-current
    assets or disposal groups comprising assets and liabilities are classified as held for sale if it is highly probably that
    they will be recovered primarily through sale or distribution rather than through continuing use. Immediately before
    reclassification as held for sale, the assets and liabilities are remeasured in accordance with the Company’s other
    accounting policies. Any impairment loss on initial classification as held for sale and subsequent gains and losses on
    remeasurement are recognized in the profit and loss. Once classified as held for sale, property, plant and equipment
    are no longer depreciated.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Income taxes
|------------



|The Company
    accounts for income taxes under ASC 740 “Income Taxes” which codified SFAS 109, "Accounting for Income Taxes."
    Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences
    attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their
    respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable
    income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect
    on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs.
    A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not
    realize tax assets through future operations.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-7



---



|CLIXSTER
                             MOBILE GROUP INC
        (Formerly
        China Media Group Corporation)
|---------------------------------------------------------------------------------------------------------------
|NOTES TO CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS                                                       



|NOTE 2 | SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES & REALIZATION OF ASSETS (Continued)
|------ | ----------------------------------------------------------------------------------



|Revenue
    Recognition
|-----------------------



|The Company
    recognizes its revenue in accordance with the Securities and Exchange Commissions ("SEC") Staff Accounting Bulletin
    No. 104, "Revenue Recognition in Financial Statements" ("SAB 104"). Revenue is recognized upon shipment,
    provided that evidence of an arrangement exists, title and risk of loss have passed to the customer, fees are fixed or determinable
    and collection of the related receivable is reasonably assured. Revenue is recorded net of estimated product returns, which
    is based upon the Company's return policy, sales agreements, management estimates of potential future product returns related
    to current period revenue, current economic trends, changes in customer composition and historical experience.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Foreign Currency Translation
|----------------------------



|The accounts
    of the Company's Hong Kong, Malaysia and China subsidiaries are maintained in Hong Kong dollars (HK), Malaysia Ringgit (RM)
    and Chinese Renminbi (RMB), respectively. Such financial statements are translated into U.S. Dollars (USD) in accordance with
    ASC 830 “Foreign Currency Translation” which codified Statement of Financial Accounts Standards ("SFAS")
    No. 52, "Foreign Currency Translation," with the respective currency as the functional currency. According to the
    Statement, all assets and liabilities were translated at the exchange rate on the balance sheet date, stockholder's equity
    are translated at the historical rates and statement of operations items are translated at the weighted average exchange rate
    for the year. The resulting translation adjustments are reported under other comprehensive income in accordance with SFAS
    No. 130, “Reporting Comprehensive Income”. As of March 31, 2013, the comprehensive income was $182,521.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



|ASC Topic
    280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent
    with the Company’s internal organization structure as well as information about geographical areas, business segments
    and major customers in financial statements. For the three months ended March 31, 2013, the Company operates in one reportable
    operating segment in Malaysia.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Recently
    Issued Accounting Pronouncements                                                                                                                                                 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                              
|The Company does not
    expect the adoption of any recently issued accounting pronouncements to have a significant impact to its financial position,
    results of operations or cash flows.



|Reclassifications
|-----------------



|Certain
                            comparative amounts have been reclassified to conform to the current period’s presentation.
|-------------------------------------------------------------------------------------------------------------------------------





F-8



---



|CLIXSTER
                              MOBILE GROUP INC
        (Formerly
        China Media Group Corporation)
|----------------------------------------------------------------------------------------------------------------
|NOTES TO CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS                                                        



|NOTE 3 | UNCERTAINTY
    OF ABILITY TO CONTINUE AS A GOING CONCERN
|------ | ---------------------------------------------------------



|The Company's
    condensed consolidated financial statements are prepared using the generally accepted accounting principles applicable to
    a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.
    As of March 31, 2013, the Company has incurred an accumulated deficits totaling $6,126,163 and its current liabilities exceed
    its current assets by $1,363,135. In view of the matters described above, recoverability of a major portion of the recorded
    asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn
    is dependent upon the Company's ability to raise additional capital, obtain financing and to succeed in its future operations.
    The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset
    amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a
    going concern.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Management
    has taken the following steps to revise its operating and financial requirements, which it believes are sufficient to provide
    the Company with the ability to continue as a going concern. The Company is actively pursuing additional funding and potential
    merger or acquisition candidates and strategic partners, which would enhance stockholders' investment. Management believes
    that the above actions will allow the Company to continue operations through the next fiscal year.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|NOTE 4 | STOCKHOLDERS’
    EQUITY
|------ | ------------------------



|Common Stock
|------------



|In
    May 2012, the Company issued 711,009 shares of its common stock to a consultant for his services under the 2007 Stock Incentive
    Plan (Note 5).
|---------------------------------------------------------------------------------------------------------------------------------------------------------



|On
    June 8, 2012 the Company issued 558,779,837 shares of its common stock in consideration for the acquisition of 100% equity
    interests in Ateam.
|---------------------------------------------------------------------------------------------------------------------------------------------------------



|As
    of March 31, 2013, the Company had a total of 1,133,623,296 shares of its common stock issued and outstanding.
|---------------------------------------------------------------------------------------------------------------------





|NOTE 5 | STOCK
    OPTIONS
|------ | -----------------



|The
    Company adopted ASC 718 “Compensation - Stock Compensation” and requires companies to measure and recognize
    the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|2002 Stock Option Plan
|----------------------



|The 2002
    Stock Option Plan was effective from October 2002 to October 2012 when it expired.  This stock option plan allowed
    the rewarding of options to acquire common stock and the grant of incentive stock options to key employees and directors.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|As at
    December 31, 2012 and March 31, 2013 the Company had 19,000,000 stock options outstanding under the 2002 Stock Option Plan,
    and the option liability was $236,504.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|2007 Stock Incentive Plan
|-------------------------



|On February
    19, 2007, the Company adopted the 2007 Stock Incentive Plan (the "2007 Plan") allowing for the awarding of options
    to acquire shares of common stock. This plan provides for the grant of incentive stock options to key employees, directors
    and consultants. Options issued under this plan will expire over a maximum term of ten years from the date of grant.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|On
    March 8, 2007, we registered 38,400,000 shares underlying stock options under the 2007 Stock Incentive Plan with the SEC pursuant
    to a registration statement on Form S-8.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|During
    the year 2007 to 2012, the Company had issued a total of 6,522,309 shares to its staff and consultants for their service provided.
|---------------------------------------------------------------------------------------------------------------------------------------------



|As
    at March 31, 2013 and December 31, 2012, there were i) no outstanding stock options and ii) 31,877,691 shares available to
    be issued under the 2007 Stock Incentive Plan.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-9



---



|CLIXSTER
                              MOBILE GROUP INC
        (Formerly
        China Media Group Corporation)
|----------------------------------------------------------------------------------------------------------------
|NOTES TO CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS                                                        



|NOTE 6 | DISCONTINUED
    OPERATIONS HELD FOR SALE
|------ | -----------------------------------------



|Subsequent
    to the period end, on January 15, 2014, the Company sold its subsidiaries namely Ren Ren Media Group Limited, ATeam Resources
    Sdn Bhd, Good World Investments Limited and Beijing Ren Ren Health Culture Promotion Limited (the “Disposed Subsidiaries”)
    containing its light appliances distribution business and advertising business in China.  As a result of the sale,
    the historical activities and balances of these operations are reported as discontinued operations held for sale in the accompanying
    consolidated financial statements for all periods presented.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|The following
    table provides the components of Discontinued operations - net of tax:
|----------------------------------------------------------------------------------------



|                                                             |  |  | Three
                    Months Ended
        31
        March
|------------------------------------------------------------ |  |  | ---------------------------------------------------------------
|                                                             |  |  | 2013                                                           
|                                                             |  |  | US$                                                            
|                                                             |  |  |                                                                
|Net revenue                                                  |  |  | 135,220                                                        
|Cost of revenue                                              |  |  | (90,925)                                                       
|Gross profit                                                 |  |  | 44,295                                                         
|Administration expenses                                      |  |  | (130,544)                                                      
|Selling and distribution expenses                            |  |  | -                                                              
|(Loss)/profit from operations                                |  |  | (86,249)                                                       
|Other income / (expenses)                                    |  |  |                                                                
|Gain on foreign
    exchange                                 |  |  | (371)                                                          
|Bank charges                                                 |  |  | (1,305)                                                        
|Other income                                                 |  |  | 2,942                                                          
|Interest income                                              |  |  | (5,331)                                                        
|Interest expenses                                            |  |  | (4,907)                                                        
|(Loss)/gain from discontinued operations
    before taxation |  |  | (95,221)                                                       
|Taxation                                                     |  |  | -                                                              
|(Loss)/ gain from discontinued operations,
    net of tax    |  |  | (95,221)                                                       
|                                                             |  |  |                                                                



|The
    following table provides the components of assets and liabilities of operations held for sale: | 
|------------------------------------------------------------------------------------------------------ | 
|                                                                                                       | 
|                                                                                                       | 
|                                                                                                       | 
|Current assets:                                                                                        | 
|Cash and cash equivalents                                                                              | 
|Restricted cash                                                                                        | 
|Trade receivables                                                                                      | 
|Due from related parties                                                                               | 
|Prepayments, deposit and other receivables                                                             | 
|Property and equipments, net                                                                           | 
|                                                                                                       | 
|Assets of operations held for sale                                                                     | 
|                                                                                                       | 
|                                                                                                       | 
|Bank overdraft                                                                                         | 
|Trade payables                                                                                         | 
|Other payables and accruals                                                                            | 
|Short term debt                                                                                        | 
|Due to related parties                                                                                 | 
|Trade finance payables                                                                                 | 
|Taxation payable                                                                                       | 
|Obligations under finance lease - current                                                              | 
|Obligations under finance leases - non-current                                                         | 
|Term loans - non-current                                                                               | 
|                                                                                                       | 
|Liabilities of operations held for sale                                                                | 
|                                                                                                       | 



|The net
    cash flows of our discontinued operations for each of the categories of operating, investing and financing activities are
    not significant for any period presented.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-10



---



|CLIXSTER
                              MOBILE GROUP INC
        (Formerly
        China Media Group Corporation)
|----------------------------------------------------------------------------------------------------------------
|NOTES TO CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS                                                        





|NOTE 7 | OTHER
    PAYABLES AND ACCRUALS
|------ | -------------------------------



|                                                    |     | March
                             31
        2013 |  | December
                             31
        2012
|--------------------------------------------------- | --- | -------------------------------------------------- |  | -----------------------------------------------------
|                                                    |     | US$                                                |  | US$                                                  
|                                                    |     |                                                    |  |                                                      
|Accrued accounting, legal and consulting
    fees   |     | 65,228                                             |  | 64,228                                               
|Other payables                                      | (a) | 346,210                                            |  | 306,809                                              
|Potential tax penalty liability                     |     | 310,000                                            |  | 310,000                                              
|Due to an officer of a subsidiary held
    for sale |     | 17,969                                             |  | 17,996                                               
|                                                    |     | 739,407                                            |  | 699,033                                              
|                                                    |     |                                                    |  |                                                      



|a) | Other
    payables are Company expenses such as postage, sundries, etc., and advanced on behalf of the Company from various parties.
    These amounts are non- interest bearing and normally settled on an average term of 6 months.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|NOTE 8 | SHAREHOLDER
    LOAN
|------ | --------------------



|                 |  | March
                             31
        2013 |  | December
    31 2012
|---------------- |  | -------------------------------------------------- |  | --------------------
|                 |  | US$                                                |  | US$                 
|                 |  |                                                    |  |                     
|Shareholder loan |  | 2,000,000                                          |  | 2,000,000           
|                 |  |                                                    |  |                     



|The long term shareholder
    loan of $2,000,000 is unsecured, bears interest at 8% per annum, repayable on May 25, 2015.
|-------------------------------------------------------------------------------------------------------------------------





|NOTE 9 | RELATED
    COMPANY TRANSACTIONS
|------ | --------------------------------



|On
    November 25, 2005, a subsidiary of the Company signed a loan agreement with one of its major shareholder, Central High Limited
    for a loan of $2,000,000. This long term shareholder loan is unsecured and repayable on November 25, 2015, and bears interest
    of 8% per annum. The accrued interest for the three months ended March 31, 2013 was $40,750 (2012: nil).
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-11



---



|CLIXSTER
                              MOBILE GROUP INC
        (Formerly
        China Media Group Corporation)
|----------------------------------------------------------------------------------------------------------------
|NOTES TO CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS                                                        



|NOTE
    10 | INCOME
    TAXES
|----------- | ----------------



|No
                                         provision was made for income tax for the three months ended March 31, 2013 and 2012,
                                         since the Company and its subsidiaries had significant net operating loss. In the three
                                         months ended March 31, 2013 and 2012, the Company and its subsidiaries incurred net operating
                                         losses for tax purposes of approximately $35,508 and $nil, respectively. Total net operating
                                         losses carry forward at March 31, 2013 and 2012, (i) for Federal and State purpose were
                                         $11,317,901 and $11,228,165, respectively and (ii) for its entities outside of the United
                                         States there were no tax loss carried forward at the end of each quarter. The net operating
                                         loss carry-forwards may be used to reduce taxable income through the year 2025. The availability
                                         of the Company's net operating loss carry-forwards are subject to limitation if there
                                         is a 50% or more change in the ownership of the Company's stock.
        
        There
        was no significant difference between reportable income tax and statutory income tax. The gross deferred tax asset balance
        as of March 31, 2013 and 2012 was approximately $4,530,629 and $4,532,386, respectively. A 100% valuation allowance has
        been established against the deferred tax assets, as the utilization of the loss carry-forwards cannot reasonably be assured.
        
        A
        reconciliation between the income tax computed at the Hong Kong and PRC China statutory rate and the Group's provision
        for income tax is as follows:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|                                     |  | 2013    |  | 2012   
|------------------------------------ |  | ------- |  | -------
|                                     |  |         |  |        
|Malaysia statutory rate              |  | 25%     |  | 25%    
|Valuation allowance - Malaysia rate  |  | (25%)   |  | (25%)  
|Hong Kong statutory rate             |  | 16.5%   |  | 16.5%  
|Valuation allowance - Hong Kong rate |  | (16.5%) |  | (16.5%)
|PRC China Enterprise Income Tax      |  | 25%     |  | 25%    
|Valuation allowance - PRC rate       |  | (25%)   |  | (25%)  
|                                     |  |         |  |        
|Provision for income tax             |  | -       |  | -      





F-12



---



|CLIXSTER
                              MOBILE GROUP INC
        (Formerly
        China Media Group Corporation)
|----------------------------------------------------------------------------------------------------------------
|NOTES TO CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS                                                        



|NOTE 11 | COMMITMENTS
    AND CONTINGENCIES
|------- | ---------------------------------



|(a) | The
                             Company leases office premises for its operations in Malaysia under operating leases. Rental expenses
                             under operating lease for the three month ended March 31, 2013 and 2012 were $1,182 and $nil, respectively.
        
        As
        of March 31, 2013, the future minimum rental payments under non-cancelable operating leases in the next twelve months
        is $395.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|NOTE 12 | SUBSEQUENT
    EVENTS
|------- | ---------------------



|The Group
    has evaluated all subsequent events through June 23, 2014, the date these consolidated financial statements were issued, and
    determined that, other than as disclosed below, there were no subsequent events or transactions that require recognition or
    disclosures in the financial statements.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(a) | Subsequent
                             to the period ended March 31, 2013, on October 29, 2013, the Company ("Purchaser") and
                             Samata Ventures Sdn Bhd (“Samata”) and Clixster Sdn. Bhd. (“CSB”) (jointly
                             referred to as the "Vendors") entered into a conditional Sale and Purchase Agreement ("SP
                             Agreement") for the Company to acquire 63.2% equity interests in Clixster Mobile Sdn Bhd ("Clixster
                             Mobile") from the Vendors. The purchase consideration is the issuance of 10,193,609,664 shares
                             at a price of US$0.01 per share in the Company which represented approximately 90% of the enlarged
                             issued share capital of the Company to the Vendors. Clixster Mobile, a company incorporated in Malaysia,
                             is a mobile virtual network operator ("MVNO") and principally engaged in providing cellular
                             and mobile broadband services.
        
        As
        announced in the Form 8K filed on February 5, 2014, on January 31, 2014, following the fulfillment of all the conditions
        set forth in and otherwise in accordance with the terms of the SP Agreement, this merger transaction was consummated and
        the Company issued to Samata and CSB 5,760,898,203 shares and 4,432,711,461 shares, respectively, for a total issuance
        of 10,193,609,664 shares in the Company, representing approximately 90.15% in the issued share capital of the Company.
        
        On
        January 31, 2014 Samata transferred 4,301,422,970 to CSB and 1,459,475,233 shares to the newly appointed directors of
        the Company. After the above transfers, Samata did not hold any shares in the Company and CSB held a total of 8,734,134,431
        shares, representing approximately 77.24% in the Company, becoming the new controlling shareholder of the Company.
        
        Following
        the completion of the above transaction, Clixster Mobile became a 63.2% subsidiary of the Company.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) | On December
    23, 2013 the Company terminated the acquisition of 5% equity interests in Advancetech Communications Sdn. Bhd. As a result,
    the Company no longer will issue any shares under the investment agreement signed on February 18, 2011.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(c) | In January
    2014, the Company issued 10,193,609,664 shares of its common stock in consideration for the acquisition of 63.2% equity interests
    in Clixster Mobile Sdn Bhd.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(d) | On January
    15, 2014, the Company sold its subsidiaries namely Ren Ren Media Group Limited, ATeam Resources Sdn Bhd, Good World Investments
    Limited and Beijing Ren Ren Health Culture Promotion Limited (the “Disposed Subsidiaries”) containing its light
    appliances distribution business and advertising business in China.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(e) | As announced
    in the Form 8K filed on January 16, 2014, the Company disposed of its interests in its subsidiaries Good World Investments
    Limited, ATeam Resources Sdn. Bhd., Beijing Ren Ren Health Culture Promotion Limited and Ren Ren Media Group Limited to KR
    Ventures Sdn. Bhd. for a consideration of US$5,000 and the assumption of certain debts in these companies. It resulted in
    an anticipated gain of $422,606 with a consideration receivable of $5,000, which is expected to be fully received in cash
    and use to settle Group’s liabilities within the next twelve months from the completion date.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-13



---



|Item 2. | Management's Discussion
    and Analysis of Financial Condition and Results of Operations.
|------- | ------------------------------------------------------------------------------------------



|Forward Looking Statements
|--------------------------



|THIS FOLLOWING INFORMATION
    SPECIFIES CERTAIN FORWARD-LOOKING STATEMENTS OF MANAGEMENT OF THE COMPANY. FORWARD-LOOKING STATEMENTS ARE STATEMENTS THAT
    ESTIMATE THE HAPPENING OF FUTURE EVENTS AND ARE NOT BASED ON HISTORICAL FACT. FORWARD-LOOKING STATEMENTS MAY BE IDENTIFIED
    BY THE USE OF FORWARD-LOOKING TERMINOLOGY, SUCH AS "MAY", "SHALL", "COULD", "EXPECT",
    "ESTIMATE", "ANTICIPATE", "PREDICT", "PROBABLE", "POSSIBLE", "SHOULD",
    "CONTINUE", OR SIMILAR TERMS, VARIATIONS OF THOSE TERMS OR THE NEGATIVE OF THOSE TERMS. THE FORWARD-LOOKING STATEMENTS
    SPECIFIED IN THE FOLLOWING INFORMATION HAVE BEEN COMPILED BY OUR MANAGEMENT ON THE BASIS OF ASSUMPTIONS MADE BY MANAGEMENT
    AND CONSIDERED BY MANAGEMENT TO BE REASONABLE. OUR FUTURE OPERATING RESULTS, HOWEVER, ARE IMPOSSIBLE TO PREDICT AND NO REPRESENTATION,
    GUARANTY, OR WARRANTY IS TO BE INFERRED FROM THOSE FORWARD-LOOKING STATEMENTS.   THE ASSUMPTIONS USED FOR PURPOSES OF
    THE FORWARD-LOOKING STATEMENTS SPECIFIED IN THE FOLLOWING INFORMATION REPRESENT ESTIMATES OF FUTURE EVENTS AND ARE SUBJECT
    TO UNCERTAINTY AS TO POSSIBLE CHANGES IN ECONOMIC, LEGISLATIVE, INDUSTRY, AND OTHER CIRCUMSTANCES. AS A RESULT, THE IDENTIFICATION
    AND INTERPRETATION OF DATA AND OTHER INFORMATION AND THEIR USE IN DEVELOPING AND SELECTING ASSUMPTIONS FROM AND AMONG REASONABLE
    ALTERNATIVES REQUIRE THE EXERCISE OF JUDGMENT. TO THE EXTENT THAT THE ASSUMED EVENTS DO NOT OCCUR, THE OUTCOME MAY VARY SUBSTANTIALLY
    FROM ANTICIPATED OR PROJECTED RESULTS, AND, ACCORDINGLY, NO OPINION IS EXPRESSED ON THE ACHIEVABILITY OF THOSE FORWARD-LOOKING
    STATEMENTS. WE CANNOT GUARANTY THAT ANY OF THE ASSUMPTIONS RELATING TO THE FORWARD-LOOKING STATEMENTS SPECIFIED IN THE FOLLOWING
    INFORMATION ARE ACCURATE, AND WE ASSUME NO OBLIGATION TO UPDATE ANY SUCH FORWARD-LOOKING STATEMENTS.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|Critical Accounting Policy
    and Estimates
|--------------------------------------------



|Our Management's Discussion
    and Analysis of Consolidated Financial Condition and Results of Operations section discusses our consolidated financial statements,
    which have been prepared in accordance with accounting principles generally accepted in the United States of America. The
    preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of
    revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments,
    including those related to revenue recognition, accrued expenses, financing operations, and contingencies and litigation.
    Management bases its estimates and judgments on historical experience and on various other factors that are believed to be
    reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets
    and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different
    assumptions or conditions. The most significant accounting estimates inherent in the preparation of our consolidated financial
    statements include estimates as to the appropriate carrying value of certain assets and liabilities which are not readily
    apparent from other sources. These accounting policies are described at relevant sections in this discussion and analysis
    and in the notes to the consolidated financial statements included in our Quarterly Report on Form 10-Q for the period ended
    March 31, 2013.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





-
2 -



---



|Overview
|--------



|DESCRIPTION
    OF BUSINESS
|---------------------------



|OUR BACKGROUND. The Company was incorporated
    in Texas on October 1, 2002 and in 2005 changed its business focus to advertising and media in the emerging China market.
    Under the then new management, the Company commenced to position the Company to capitalize on the growth of the Chinese advertising
    market where global companies are rushing into China to try to grab and hold the attention of its 1.3 billion citizens.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Our mission then was to become one of China's
    new age media companies through the use of new technologies and devices combined with traditional media of TV, Newspapers,
    Magazines, Billboards and Internet to reach today's mobile society. In order to facilitate this, the Company established 3
    strategic business units being "Advertising", "Telecommunications and Mobile Computing", and "Products
    and Services".
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|We planned to offer advertising services in
    China. These advertising services would be targeted across all media thus we will offer our customers selective advertising
    on specific media for nationwide campaign. China's advertising industry is still young and fragmented. We aim to differ from
    other advertisers so that we can provide nationwide campaigns across all media spectrum. To this end, we will work to secure
    strategic ad placements in key cities in China so that our customers will have the ability to launch nationwide campaigns.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|In
    June 2012, the Group acquired A-Team Resources Sdn. Bhd. a company that distributes light appliances products in South East
    Asia and Middle East to strengthen our Products and Services Business Unit.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|As
    announced in a Form 8K filed on October 29, 2013, the Company and Samata Ventures Sdn Bhd (“Samata”) and Clixster
    Sdn Bhd (“CSB”) (jointly referred to as the “Vendors”) entered into a conditional Sales and Purchase
    Agreement (“SP Agreement”) for the Company to acquire 63.2% equity interests in Clixster Mobile Sdn Bhd (“CMSB”)
    from the Vendors.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|On
    January 31, 2014 following the fulfillment of all the conditions set forth in and otherwise in accordance with the terms of
    the SP Agreement, this merger transaction was consummated and CMSB became a subsidiary of the Company.  As a result
    of the closing of the SP Agreement, we will now focus our business plans to pursue the mobile virtual network operator (“MVNO”)
    business and to expand our telecommunication business unit with a focus on provision of mobile telecom service through a MVNO
    platform initially in Malaysia and then to other regions.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Upon
    the closing of the SP Agreement, the Company issued to Samata and CSB 5,760,898,203 shares and 4,432,711,461 shares in the
    Company, respectively, for a total issuance of 10,193,609,664 shares in the Company, representing approximately 90.15% in
    the issued share capital of the Company.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|On
    January 31, 2014, Samata transferred 4,301,422,970 to CSB and 1,459,475,233 shares to the newly appointed directors of the
    Company.  After the above transfers, Samata did not hold any shares in the Company and CSB held a total of 8,734,134,431
    shares, representing approximately 77.24% in the Company, becoming the new controlling shareholder of the Company.  On
    the same date following the completion of the SP Agreement, the changes to the board of directors were announced in the Form
    8K filed on February 6, 2014. On June 17, 2014 CSB transferred 550,000,000 shares to one of the Company’s partners and
    after the transfer SCB held 8,184,134,431 shares representing approximately 72.38% in the Company.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|On
    January 15, 2014 the Group disposed of its loss making light appliances and advertising operation.  The management
    believes that this transaction affords the Company the opportunity to streamline its trading operation and focus on its Products
    and Services Business Unit.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|At
    the date of this report, the Group will focus on its Telecommunications and Mobile Business Unit and its Products and Services
    Business Unit.  The Group will terminate its adverting business until a viable advertising business opportunity
    is available.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





-
3 -



---



|2013
                            Products & Services Overview
        
        We
        have established 3 business units namely “Advertising”, “Telecommunication and Mobile” and “Product
        Services”. A brief review and description of these three business units' strategies and operations are described
        below.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Advertising
    Unit
|--------------------



|On
    March 13, 2007, the Company acquired 100% of the issued and outstanding shares of Good World Investments Limited, which owns
    50% of the registered capital of Beijing Ren Ren Health Culture Promotion Limited ("BRR"). BRR is working with the
    Chinese Government on a benevolent project named "Great Wall of China Project" to advertise and promote health education
    and health awareness in China. We believe BRR provides a strategic advertising platform for us to launch our advertising operations
    in China as it can advertise in hospitals and districts in China. However the capital requirement to activate this project
    on the national and provincial level will require us to raise at least US$2 million which is difficult given the financial
    situation of the Group today.  Therefore in 2012, we had determined to defocus from the BRR program and to focus
    on other advertising activities going forward. During the period, the Company did not derive any advertising income from the
    BRR project.  In 2014, the Group divested from its investment in BRR and the Group will suspend the advertising
    business unit until other advertising opportunities that are synergistic to the Groups business.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Telecommunications Unit
|-----------------------





|In
    2006, the Company announced the establishment of the Telecommunications and Mobile Computing Division to focus on the new
    media advertising where we would take advantage of new convergent devices for telecommunications advertising. The business
    of selling advertising and services through telecommunications media and devices is growing and the Group intends to enter
    into this business sector. No revenue has been generated from advertising through telecommunications media and devices during
    this reporting period.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Advertising
    through mobile devices is becoming more prominent to reach the mobile society of today. The goal of the Telecommunications
    and Mobile Computing Unit is to provide the Company with entry into the new sector of advertising through telecommunication
    media and devices. Our strategy on gaining access in telecommunication media is through cooperation with existing networks
    or establishes select networks. However our longer term strategy is to partner with network operators to provide extensive
    network access for our advertising media. We had secured the distribution rights for M.A.G.I.C. Convergent Device for the
    territory of China and Hong Kong, and we are still waiting for the delivery of its commercial products in 2013. However, in
    2014 we divested from this product and instead we determined to focus on other telecommunication products and services. In
    2013, we entered into a conditional agreement to acquire Clixster Mobile Sdn. Bhd. a Mobile Virtual Network Operator (“MVNO”)
    operation in Malaysia.  This transaction closed on January 31, 2014.  Going forward, we will focus on
    developing the MVNO business and the branding of Clixster Mobile in Malaysia and then throughout the region.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Products Services Units
|-----------------------



|We
    have commenced a Products Services Unit to build brands recognition and to take advantage of our contacts networks, distribution
    channel and trading partners. We intended to leverage on our advertising platform to develop our own brands name for select
    products. This will uniquely position our Product Services for brand awareness as well as develop a long term business unit
    that will serve both consumers and industries markets.  We had a distribution of electronics and light electronics
    in 2012 but we ran into difficulties and the market conditions changed such that the Company recorded a loss in 2012.  In
    view of our focus on Telecommunications we determined to divest of our investment in Ateam in 2014. Accordingly the sales
    and operational results were disclosed as Operations held for sale in the Company’s condensed consolidated balance sheet
    and income statement.  During this quarter, we realized $67,060 in consulting services revenue from this business
    unit.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





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---



|Industry
                                         Overview and Competition



Telecommunication
Market


In Malaysia,
the major mobile network operators (MNOs) are Maxis, Celcom and DiGi, and recently U-Mobile.  The big 3’s combined
market size is over 36 million subscribers with a total annual turnover of RM23.8 billion or about USD7.8 billion in 2013. 
The market breakdown indicated Maxis and Celcom have a mobile subscriber base of 13 million each and DiGi with 11 million.1

Sectorial
industry updates concur that year on year revenue growth has been strong, According to RHB Research Institute Sdn Bhd (RHB Research),
it stated that on the year-on-year (y-o-y) basis, the four major telcos in the country namely Telekom Malaysia Bhd (TM) grew 11%;
DiGi Telecommunication Bhd (DiGi) surged 9.7%; Celcom Axiata Bhd (Celcom) increased by 8% and Maxis Telecommunication Bhd (Maxis)
captured a 4.5% growth.

During the
first half of 2013, the communication subsector increased by 9.4% (January - June 2012: 9.5%) driven by expansion in the cellular
segment on increased use of data services. As at end-June 2013, cellular phone subscriptions grew 9.1% to 42.6 million to reach
a penetration rate of 143.4% (end-June 2012 : 10.7%; 39 million; 135.3%), with the prepaid segment dominating 83% of total subscriptions.2

The broadband
segment continued to expand 6.9% to 6.2 million subscriptions with a penetration rate of 66.8% as at end-June 2013 (end-June 2012;
8.2%; 5.8 million; 63.7%). This was largely due to offerings of bundled services with attractive pricing plans and improved network
coverage. Data remained as a growth driver in the industry, and is expected to grow 25% annual moving forward. The growth is fueled
by penetration of smartphones and other internet ready devices.2

1 Annual
Reports of Maxis Berhad, DiGi.com Berhad and Axiata Group Berhad
2 Malaysia
Economic Report 2013/2014
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Subscriber
                              Market
|-----------------------------------------------

Mobile
penetration in Malaysia has long surpassed the 100.0% mark and is currently hovering around 143%1; putting her as one of
the countries in Asia Pacific with penetration rates above 100%. Out of 32 countries in Asia Pacific, Hong Kong ranked the highest
penetration rate of 155.1% followed by Singapore with 153.4%.



By
2015, the Malaysian market is expected to reach a mobile subscriber base of over 50 million (as at 2013: 42.6 million1).
Although growth is expected to slow down as the market approaches saturation but it is still expected to register a CAGR of 6.0%
from 2011-2015. Riding on increasing demand for internet access, 3G subscriptions reached 14.5 million with an annual growth of
41.0% in 2012 and is expected to cross 18.4 million by December 2013. Broadband internet has also been expanding strongly in recent
years and as at first quarter of 2014, reached a 67% household penetration with more than half of households having some form
of broadband access.1



Greater
affordability of mobile services, development of platforms and mobile enabled services including mobile payments, information
services and educational tools) and entry of non traditional players into the ecosystem including technology companies and content
provider are key indicators to the potential future growth opportunities of the market.



1
MCMC : Pocket Book of Statistics, Q1 2014



|Mobile Virtual Network
    Operator Market
|------------------------------------------



The
explosive growth of wireless is one of the most striking aspects of the telecom industry since the 1990s. Demand for low-cost
and high-value cellular service has been driving the mobile industry towards price wars. As the industry continue to mature, Mobile
Network Operators (MNO’s) recognize that future growth depends on the pursuit of new markets beyond the conventional method
of direct acquisition of new subscribers. The growth driven by bundled service offerings with slashed rates is only a short-term
remedy. A new strategic model through alliances with Mobile Virtual Network Operator (MVNO) offered a far sighted solution. The
MVNO model is seen as both, a solution as well as an opportunity for MNOs to pursue new markets that present sustainable growth
and retention.



MVNO’s
typically do not own a network but lease the network of a service provider that does have a network. An MVNO business consists
of managing two key relationships; Mobile Network Operator (MNO) and the end-users. MVNO provides mobile services without owning
spectrum and relies on the MNO network infrastructure. Notably, this business arrangement allows smaller service providers to
be focused on specific aspects of the mobile business by offering specialized services and enriching the industry service offerings
through optimization usage of the network infrastructure.



MVNOs
provide lower operational costs for mobile operators through billing, sales, customer service, marketing, increase revenue through
new applications, value added services and attractive rates. As such, the opportunity for mobile operators to take advantage of
MVNOs generally outweighs the competitive threat.





Type of
MVNO’s



|Discount           | Provides
    very low call rates to market segments for example, the foreign workers market                                                                                                                                                                                                              
|------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Lifestyle          | Focuses on specific
    niche market demographics for example on the high income executives with specific interests                                                                                                                                                                                      
|Advertising-funded | Earns advertising
    revenue in order to provide free voice, SMS and data to its subscribers.                                                                                                                                                                                                           
|Ethnic             | Provides services
    to certain ethnic groups in the country. For e.g. XOX caters to the Chinese community in Malaysia, other MVNOs like Lycamobile,
    Lebara, iCard Mobile, Globalcell Mobile and Dialog Vizz who target ethnic communities by providing inexpensive calls to their
    home country.
|Data               | Focuses
    on selling data subscriptions to end-users. Amazon in US and Dell in Japan are Data MVNOs. Merchantrade in Malaysia is a Data
    MVNO.                                                                                                                                                      





-
5 -



---



Examples
of other MVNO’s in Malaysia



|Merchantrade | A
    strong presence in the foreign workers’ in the country on Celcom network.                                                 
|------------ | --------------------------------------------------------------------------------------------------------------------------------
|XOX          | Focus to serve the
    Chinese community offering services riding on Maxis network                                              
|Redtone      | Serving the small
    and medium-sized enterprises market segment. A spin-off of Redtone International Bhd riding on Maxis.     
|Tune Talk    | A lifestyle service
    offering as sister companies Tune Hotels and Tune Money. Operates on Celcom’s network,                  
|Smart Pinoy  | A service zooming
    into over 700,000 Filipino migrant workers in Malaysia, A JV between Celcom and PLDT                      
|Tron         | Offering a yearlong
    validity for Tron user community numerous incentives. Rides on DiGi network,                            
|MyEvolution  | Malaysia’s first
    Machine-to-Machine (M2M) MVNO service on DiGi network.                                                     
|Tesco        | Affinity program via
    Clubcard (Tesco loyalty card) on Maxis network.                                                        
|SpeakOut     | Targeting students,
    youth, business travelers, tourists, migrant workers and telco-blacklisted individuals.                 
|Buzz Me      | A prepaid mobile services
    operating on U Mobile targeting the urban young market.                                           
|FRiENDi      | A joint venture between
    Virgin Mobile Middle East & Africa and Kumpulan Perangsang Selangor                                 
|Altel        | A
    MVNO under Puncak Semangat, within the Al-Bukhary group, in collaboration with CELCOM. No clear direction or target market





|Plan
                            of operations
        
        OUR
        PLAN OF OPERATION FOR THE NEXT TWELVE MONTHS.
        
        We
        hope to generate additional revenues in the next twelve months by engaging business operations through internal growth
        and through strategic acquisitions and cooperative advertising agreements, as described more fully under "Overview"
        above.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|We
    have cash and cash equivalents of $7,672 as of March 31, 2013; an increase from the previous period end of December 31, 2012.
    In the opinion of management, these funds will not satisfy our working capital requirements to operate at our current level
    of activity for the next twelve months. To effectuate our business plan, during the next twelve months, we must arrange for
    adequate funding to implement our plans of increasing our advertising offerings and promote our advertising services, through
    cooperation agreements and otherwise.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Financing
                            and funding
|-------------------------------------------------



|Management
    intends to continue to raise additional financing through debt and equity financing or other means and interests that it deems
    necessary, with a view to implementing our business plan and building a revenue base. We plan to use the proceeds of such
    financings to provide working capital to our operations and increase our capital expenditure for marketing and working with
    our co-operative partners. There can be no assurances that sufficient financing will be available on terms acceptable to us
    or at all. Our forecast for the period for which financial resources will be needed to support our operations involves risks
    and uncertainties and actual results could fail as a result of a number of factors.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Specifically,
    we hope to accomplish the steps as set out in this report to implement our business plan in respect of the newly acquired
    company, Clixster Mobile Sdn. Bhd., in developing and integrating the MVNO business. The success of our plans is subject to
    our ability to obtain adequate funding. Such additional capital may be raised through public or private equity financing,
    borrowings, or other sources, such as contributions from our officers and directors. If we are unable to obtain funds necessary
    to implement our business plan, we may revise or scale back our business plan.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|We are
    not currently conducting any research and development activities, other than the continual development of our website. We
    do not anticipate conducting any other research and development activities in the near future. In the event that we expand
    our business scope, then we may need to hire additional employees or independent contractors as well as purchase or lease
    additional equipment and open new office locations.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





-
6 -



---



|Results
    of operation.
|-------------------------



|FOR THE
    THREE MONTHS PERIOD ENDED MARCH 31, 2013 COMPARED TO THE THREE MONTHS PERIOD ENDED MARCH 31, 2012
|-------------------------------------------------------------------------------------------------------------



|REVENUES.
        
        For
        the three months period ended March 31, 2013, the Group has realized revenue of $67,060 and a cost of revenue of $45,912,
        achieving a gross profit of $21,148 from its continuing operations and there was no revenue, costs of sales and gross
        profit in 2012 from the continuing operations. For the three month period ended March 31, 2013, the Group has realized
        revenue of $135,220 and a cost of revenue of $90,925 achieving a gross profit of $44,295 from its business operations
        held for sale (Note 6). For the three months ended March 31, 2012, Group has realized revenue of $1,201,436 and a cost
        of revenue of $810,149 achieving a gross profit of $391,287 from its business operations held for sale (Note 6).
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|OPERATING
                            EXPENSES.
        
        For
        the three month period ended March 31, 2013, from our continuing operations, our gross profit was $21,148 and our total
        operating expenses were $15,878, all of which were selling, general and administrative expenses. We also had $40,777 in
        interest expenses and loss from our operations held for sale of $95,221 so that the net loss to our shareholders for the
        three months period ended March 31, 2013 was $130,728. For the three months ended March 31, 2012 the Group did not realize
        any results from continuing operation and realized a net profit from our operations held for sale of $271,298 so that
        the net profit to our shareholders for the three months period ended March 31, 2012 was $271,298.
        
        For
        the three month period ended March 31, 2013, from our operation held for sale, our gross profit was $44,295 and our total
        operating expenses were $130,544, all of which were general and administrative expenses. We also had $4,907 in interest
        expenses, $5,331 in write back of interest income, loss on foreign exchange of $371, and bank charges $1,305 and other
        income of $2,942 so that the net loss to our shareholders for the three months period ended March 31, 2013 was $95,221
        (Note 6). This is in comparison to the same period ended March 31, 2012 from operations held for sale, where our gross
        profit was $391,287 and our total operating expenses were $174,527, all of which were selling, general and administrative
        expenses. We also had $6,199 in interest expenses and gain on foreign exchange of $16,317 and other income of $44,409
        and $11 in interest income, so that the net profit to our shareholders for the three months period ended March 31, 2012
        was $271,298 (Note 6).
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Liquidity
    and Capital Resources
|-----------------------------------



|As
                            at March 31, 2013, the Company had cash and cash equivalents totaling $7,672, other current assets
                            of $1039 consisting of trade receivables and prepayments, and assets of operations held for sale of
                            $1,550,364. The total assets of the Company were $1,559,075 as of March 31, 2013. We also had current
                            liabilities of $2,922,210 which were represented by $263 in trade payables, $739,407 in other payables
                            and accruals, $236,504 in option liabilities and $1,946,036 in operations held for sale as of March
                            31, 2013. We also had $2,000,000 in long-term shareholders loan as of March 31, 2013, making our total
                            liabilities $4,922,210.
        
        At
        present the Company does not have sufficient cash resources to provide for all general corporate operations in the foreseeable
        future. The Company will be required to raise additional capital in order to continue and expand its operations in fiscal
        2013.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Going
    Concern
|-----------------



|The
    Company's financial statements are presented on a going concern basis, which contemplates the realization of assets and satisfaction
    of liabilities in the normal course of business. The Company has experienced significant losses from operations in recent
    periods. For the three months ended March 31, 2013 the Company incurred net losses of $130,728 and has accumulated losses
    of $6,126,163 as at March 31, 2013. The Company's ability to continue as a going concern must be considered in light of the
    problems, expenses and complications frequently encountered in developing markets and the competitive environment in which
    the Company operates. The Company is pursuing financing for its operations and seeking additional investment in the Group.
    In addition, the Company is seeking to expand its revenue base in its consulting business and in developing and integrating
    its newly acquired MVNO business in Malaysia. Failure to secure such financing, to raise additional equity capital and to
    expand its revenue based may result in the Company depleting its available funds and not being able to pay its obligations.
    These financial statements do not include any adjustments to reflect the possible future effects on the recoverability and
    classification of assets or the amounts and classification of liabilities that may result from the possible inability of the
    Company to continue as a going concern.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Off
    Balance Sheet Arrangements
|----------------------------------



|As
    of March 31, 2013, there were no off balance sheet arrangements. The Company has no off balance sheet obligations nor guarantees
    and has not historically used special purpose entities for any transactions.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





-
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---



|Item 3. | Quantitative and Qualitative
    Disclosure About Market Risk.
|------- | --------------------------------------------------------------



|Quantitative and Qualitative
    Disclosures about Market Risk:
|---------------------------------------------------------------



|The
    Company is exposed to various market risks, including changes in interest rates. Market risk is the potential loss arising
    from adverse changes in market rates and prices, such as interest rates and foreign currency exchange rates. The Company does
    not enter into derivatives or other financial instruments for trading or speculative purposes. The Company also has not entered
    into financial instruments to manage and reduce the impact of changes in interest rates and foreign currency exchange rates,
    although we may enter into such transactions in the future.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|Item 4. | Controls and Procedures.
|------- | ------------------------



|Evaluation of Disclosure
    Controls and Procedures:
|-----------------------------------------------------



|Our
    disclosure controls and procedures are designed to ensure that information required to be disclosed in reports that we file
    or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods
    specified in the rules and forms of the United States Securities and Exchange Commission. Our principal executive and financial
    officer have reviewed the effectiveness of our "disclosure controls and procedures" (as defined in the Securities
    Exchange Act of 1934 Rules 13a-14(c) and 15d-14(c)) within the end of the period covered by this Quarterly Report on Form
    10-Q and have concluded that the disclosure controls and procedures were not effective to ensure that material information
    relating to the Company is recorded, processed, summarized, and reported in a timely manner as the Company did not have proper
    staffing of accounting personnel to prepare the accounts in timely manner.  However, this deficiency has since been
    rectified as we have now staffed 6 accountants in our accounting department to ensure that our financial reporting will be
    prepared and presented timely. Except for the staffing of the accounting department noted above, there were no significant
    changes in our internal controls or in other factors that could significantly affect these controls subsequent to the last
    day they were evaluated by our principal executive and financial officers.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|Changes in Internal Controls
    over Financial Reporting:
|----------------------------------------------------------



|There
    have been no changes in the Company's internal control over financial reporting during the last quarterly period covered by
    this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over
    financial reporting.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





-
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|PART
    II - OTHER INFORMATION
|-------------------------------





|Item 1. | Legal Proceedings
|------- | -----------------



|None.
|-----





|Item 2. | Unregistered Sales of Equity
    Securities and Use of Proceeds
|------- | ---------------------------------------------------------------



|None.
|-----





|Item 3. | Defaults Upon Senior Securities
|------- | -------------------------------



|None.
|-----





|Item 4. | Submissions of Matters to
    a Vote of Security Holders
|------- | --------------------------------------------------------



|None.
|-----





|Item 5. | Other Information
|------- | -----------------



|None.
|-----





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---



|Item 6. | Exhibits
|------- | --------





|Exhibit
    No. | Description
    of Exhibit                                                                                                                              
|--------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------
|                |                                                                                                                                                         
|2.1             | Shareholders’
    Agreement between Good World Investments Limited, Advance Tech Communications Sdn. Bhd. And ATC Marketing Limited(5)                  
|2.2             | Sale
    and Purchase Agreement entered by Good World Investments Limited to acquire 5% equity interest in Advance Tech Communications
    Sdn. Bhd. (6)
|2.3             | Sale
    and Purchase Agreement between Good World Investments Limited and ECE Technologies Sdn. Bhd.(7)                                                
|2.4             | Sale
    and Purchase Agreement between the Company and Samata Ventures Sdn Bhd and Clixster Sdn Bhd.(8)                                                
|2.5             | Sale
    and Purchase Agreement between the Company and KR Global Ventures Sdn Bhd.(9)                                                                  
|3.1             | Articles
    of Incorporation (1)                                                                                                                       
|3.1.1           | Certificate
    of Amendment to Articles of Incorporation (2)                                                                                           
|3.1.2           | Certificate
    of Amendment to Articles of Incorporation, as amended.(3)                                                                               
|3.2             | Bylaws
    (1)                                                                                                                                          
|10.1            | 2007
    Stock Incentive Plan(4)                                                                                                                        
|31.1*           | Certification
    of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                 
|31.2*           | Certification
    of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                 
|32.1*           | Certification
    of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                 
|32.2*           | Certification
    of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                 



|   |                                                                                                                  
|-- | -----------------------------------------------------------------------------------------------------------------
|1. | Incorporated by reference to our Registration
    Statement on Form SB-2 as filed with the SEC on April 15, 2003.
|2. | Incorporated by reference to our Current
    Report on Form 8-K as filed with the SEC on February 3, 2005.       
|3. | Incorporated by reference to our Registration
    Statement on Form SB-2 as filed with the SEC on March 16, 2007.
|4. | Incorporated by reference to our Registration
    Statement on Form S8 as filed with the SEC on March 8, 2007.   
|5. | Incorporated by reference to our Current
    Report on Form 8-K as filed with the SEC on May 26, 2009.           
|6. | Incorporated by reference to our Current
    Report on Form 8-K as filed with the SEC on February 22, 2011.      
|7. | Incorporated by reference to our Current
    Report on Form 8-K as filed with the SEC on March 16, 2012.         
|8. | Incorporated by reference to our Current
    Report on Form 8-K as filed with the SEC on February 6, 2014.       
|9. | Incorporated by reference to our Current
    Report on Form 8-K as filed with the SEC on January 16, 2014.       



|* Filed herewith.
|-----------------





-
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---



|SIGNATURES                                                                                                                                                                                                            
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                      
|Pursuant
    to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 34, the registrant has duly caused this report
    to be signed on its behalf by the undersigned, thereunto duly authorized.



| | Clixster Mobile Group Inc              
| | ---------------------------------------
| | a Texas corporation                    
| |                                        
| | /s/  Noor Azlan
    Khamis             
| | ---------------------------------------
| | Noor Azlan Khamis                      
| | Chief
        Executive Officer        
| |                                        
| | /s/ Mohd Suhaimi bin Rozali            
| | ---------------------------------------
| | Mohd Suhaimi bin Rozali                
| | Chief
        Financial Officer        





|In
    accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and
    in the capacities and on the dates indicated.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|By:  | /s/ Megat Radzman
    Megat Khairuddin       | June 23, 2014
|---- | -------------------------------------------- | -------------
|     | -------------------------------------------- |              
|     | Megat Radzman Megat Khairuddin               |              
|Its: | Chairman, Director                           |              



|By:  | /s/Noor
    Azlan Khamis                     | June 23, 2014
|---- | -------------------------------------------- | -------------
|     | -------------------------------------------- |              
|     | Noor Azlan Khamis                            |              
|Its: | President, Chief Executive Officer, Director |              



|By:  | /s/Andrew
    Hwan Lee                       | June 23, 2014
|---- | -------------------------------------------- | -------------
|     | -------------------------------------------- |              
|     | Andrew Hwan Lee                              |              
|Its: | Director                                     |              



|By:  | /s/ Azrinaz
    Mazhar Hakim Mazhar          | June 23, 2014
|---- | -------------------------------------------- | -------------
|     | -------------------------------------------- |              
|     | Azrinaz Mazhar Hakim Mazhar                  |              
|Its: | Director                                     |              



|By:  | /s/ Ching Chiat
    Kwong                    | June 23, 2014
|---- | -------------------------------------------- | -------------
|     | -------------------------------------------- |              
|     | Ching Chiat Kwong                            |              
|Its: | Director                                     |              



|By:  | /s/ Mohd Mahyudin
    Zainal                 | June 23, 2014
|---- | -------------------------------------------- | -------------
|     | -------------------------------------------- |              
|     | Mohd Mahyudin Zainal                         |              
|Its: | Director                                     |              



|By:  | /s/Mohd. Suhaimi
    bin Rozali                           | June 23, 2014
|---- | --------------------------------------------------------- | -------------
|     | --------------------------------------------              |              
|     | Mohd Suhaimi bin Rozali                                   |              
|Its: | Chief Financial Officer, Company Secretary,
    Treasurer |              





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