<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                  FORM 10-KSB/A

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 2006

                                       OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934

                       COMMISSION FILE NUMBER: 333-127755

                     ASIA AUTOMOTIVE ACQUISITION CORPORATION

<TABLE>
<S>                                         <C>
                 DELAWARE                                20-3022522
     (State or other jurisdiction of        (I.R.S. Employer Identification No.)
      incorporation or organization)
</TABLE>

<TABLE>
<S>                                                      <C>
    401 SOUTH OLD WOODWARD, SUITE 450
          BIRMINGHAM, MICHIGAN                              48009
(Address of principal executive offices)                 (Zip Code)
</TABLE>

                                 (248) 593-8330
               Registrant's telephone number, including area code

Indicate by check mark 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 preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days. Yes [X] No [ ]

Check if no disclosure of delinquent filers in response to Item 405 of
Regulation S-B is contained in this form, and no disclosure will be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. Yes [ ] No [X]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check
one):

Large accelerated filer [ ]   Accelerated filer [ ]   Non-accelerated filer [X]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

State the aggregate market value of the voting stock held by non-affiliates
computed by reference to the price at which the stock was sold, on the average
bid and asked prices of such stock, as of a specified date within the past 60
days. The aggregate market value of the voting stock held by public investors
based on a sales price of $7.65 for the company's voting stock of 5,031,250
shares held on April 13, 2007 is approximately $38,489,063.

<PAGE>

                      APPLICABLE ONLY TO CORPORATE ISSUERS

DOCUMENTS INCORPORATED BY REFERENCE

None

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 6,380,250 Shares of Common Stock,
$0.001 per share as of April 13, 2007

Transitional Small Business Disclosure Format (Check One):   Yes [ ]   No [X]

Explanatory Note

     This Annual Report on Form 10-KSB/A is being filed as Amendment No. 1 to
Form 10-KSB for the year ended December 31, 2006, originally filed April 16,
2007. The original filing inadvertently omitted the audit report date of
Rothstein Kass & Company, P.C., our auditors.  In addition, certain tables in
the Form 10-KSB as originally filed were not properly formatted. That has been
corrected in this Form 10-KSB/A. The entire Form 10-KSB has been refiled for
ease of reference.

<PAGE>

                     ASIA AUTOMOTIVE ACQUISITION CORPORATION
                                Table of Contents

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
PART I                                                                        4
   Item 1    Description of Business                                          4
   Item 2    Description of Property                                          4
   Item 3    Legal Proceedings                                                4
   Item 4    Submission of Matters to a Vote of Security Holders              4

PART II                                                                       5
   Item 5    Market for Common Equity and Related Stockholder Matters         5
   Item 6    Management's Discussion and Analysis or Plan of Operation        6
   Item 7    Financial Statements                                             7
   Item 8    Changes In and Disagreements With Accountants on Accounting
             and Financial Disclosure                                         7
   Item 8A   Controls and Procedures                                          7
   Item 8B   Other Information                                                7

PART III                                                                      7
   Item 9    Directors and Executive Officers of the Registrant               7
   Item 10   Executive Compensation                                          10
   Item 11   Security Ownership of Certain Beneficial owners and
             Management and Related Stockholder Matters                      11
   Item 12   Certain Relationships and Related Transactions and Director
             Independence                                                    12
   Item 13   Exhibits                                                        14
   Item 14   Principal Accountant Fees and Services                          18

SIGNATURE PAGE                                                               19
</TABLE>

<PAGE>

                                     PART I

ITEM 1. DESCRIPTION OF BUSINESS

     We are a Delaware blank check company. The company was incorporated June
20, 2005, and completed its initial public offering on April 18, 2006. Since the
closing of the public offering, management has vigorously pursued the process of
investigating one or more potential business combination(s). The process is not
yet advanced enough for any public announcement. The company has not yet engaged
in any business operations.

     The company has four executive officers, each of whom is a member of our
board of directors. Our officers have devoted substantially their full business
time to the process of effecting a business combination. However, the officers
have not been paid by the company. See Item 10., Executive Compensation. The
company does not employ any employees and does not expect to have any full time
employees until a business combination is consummated.

ITEM 2. DESCRIPTION OF PROPERTY.

We maintain our principal executive office at the following location:

     -    United States executive offices at 401 South Old Woodward, Suite 450,
          Birmingham, Michigan, 48009;

We maintain our regional offices at the following locations:

     -    Beijing, China regional offices at Cai Zhi Fortune Tower, Room 834, #5
          Chang Zhi Road, Haidian District Beijing, China 10008

     -    Hong Kong regional office at 1211 Peninsula Tower 538 Castle Peak Road
          Kowloon, Hong Kong

     -    ASEAN Regional office at 46/14 Moo 105th Floor Nation Tower, Bangna
          Trad Rd. Bangna, Bangna, Bangkok 10260, Thailand

     The cost for these spaces is included in the $7,500 per-month fee paid to
Asia Development Capital LLC will for general and administrative services,
including office space, and utilities. We believe, based on rents and fees for
similar services in these locations, that the fee charged by Asia Development
Capital LLC is at least as favorable as we could have obtained from an
unaffiliated person. We consider our current office space adequate for our
current operations.

ITEM 3. LEGAL PROCEEDINGS.

     To the knowledge of management, there if no litigation currently pending or
contemplated against us or any of our officers or directors in their capacity as
such.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     No matters were submitted to a vote of our security holders during the
fourth quarter of the year ended December 31, 2006.

<PAGE>

                                     PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

     Our common stock and warrants started trading separately as of June 12,
2006. Each of our units consists of one share of our common stock and one
redeemable common stock purchase warrant and trades on the OTC Bulletin Board
under the symbol "AAACU". Our common stock and warrants trade on the OTC
Bulletin Board under the symbols "AAAC" and "AAACW", respectively. Each warrant
entitles the holder to purchase from us one share of our common stock at an
exercise price of $5.00 commencing the later of the completion of a business
combination with a target business or April 12, 2007. Our warrants will expire
at 5:00 p.m., New York City time, on April 12, 2010, or earlier upon redemption.

                               OTC Bulletin Board

<TABLE>
<CAPTION>
                      Common Stock     Warrants       Units
                      ------------   -----------   -----------
                       High    Low   High    Low   High    Low
                       ----   ----   ----   ----   ----   ----
<S>                    <C>    <C>    <C>    <C>    <C>    <C>
2006 Second Quarter    7.10   7.28   1.65   1.38   7.95   7.40
2006 Third Quarter     7.35   7.28   2.10   1.88   8.10   7.65
2006 Fourth Quarter    7.55   7.40   2.16   1.65   7.80   7.45
2007 First Quarter     7.55   7.55   2.50   1.90   7.65   7.28
</TABLE>

HOLDERS

     As of March 31, 2007, there were 230 holders of record of our units, 32
holders of record of our common stock and 50 holders of record of our warrants.

DIVIDENDS

     We have not paid any dividends on our common stock to date and do not
intend to pay dividends prior to the completion of a business combination. The
payment of dividends in the future will be contingent upon our revenues and
earnings, if any, capital requirements and general financial condition
subsequent to completion of a business combination. The payment of any dividends
subsequent to a business combination will be within the discretion of our then
board of directors. It is the present intention of our board of directors to
retain all earnings, if any, for use in our business operations and,
accordingly, our board does not anticipate declaring any dividends in the
foreseeable future.

USE OF PROCEEDS FROM OUR INITIAL PUBLIC OFFERING

     On April 19, 2006, we consummated our initial public offering of 5,031,250
units including an additional 656,250 units that were subject to the
underwriters' over-allotment option. Each unit consists of one share of common
stock and one redeemable common stock purchase warrant. Each warrant entitles
the holder to purchase from us one share of our common stock at an exercise
price of $5.00.

     Of the proceeds of the Offering, $37,418,000 plus interest income is being
held in a trust account ("Trust Account") and invested until the earlier of (i)
the consummation of the first business combination or (ii) the

<PAGE>

distribution of the Trust Account as described below. The amount in the Trust
Account includes $1,207,500 of contingent underwriting compensation, which will
be paid to the underwriters if a business combination is consummated, but which
will be forfeited in part if public stockholders elect to have their shares
redeemed for cash if a business combination is not consummated. Deferred
underwriter's fee is reflected on the balance sheet at $966,121, an additional
$241,379 is included in common stock, subject to possible conversion, for a
total of $1,207,500. The remaining proceeds may be used to pay for business,
legal and accounting due diligence on prospective acquisitions and continuing
general and administrative expenses.

     We pay Asia Development Capital LLC, an affiliate, an aggregate fee of
$7,500 per month which includes the cost of the office space and the cost of
other general and administrative services provided to us by such affiliate.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

     This Annual Report on Form 10-KSB includes forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. We have based
these forward-looking statements on our current expectations and projections
about future events. These forward-looking statements are subject to known and
unknown risks, uncertainties and assumptions about us that may cause our 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 such forward-looking statements. In some
cases, you can identify forward-looking statements by terminology such as "may,"
"should," "could," "would," "expect," "plan," "anticipate," "believe,"
"estimate," "continue," or the negative of such terms or other similar
expressions. Factors that might cause or contribute to such a discrepancy
include, but are not limited to, those described in our other Securities and
Exchange Commission filings. The following discussion should be read in
conjunction with our Financial Statements and related Notes thereto included
elsewhere in this report.

     We were formed on June 20, 2005, to serve as a vehicle to effect a business
combination with an operating business residing within the Asian automotive
market. Our initial business combination must be with a target business or
businesses whose fair market value is at least equal to 80% of net assets at the
time of such acquisition. We intend to utilize cash derived from the proceeds of
our recently completed public offering, our capital stock, debt or a combination
of cash, capital stock and debt, in effecting a business combination.

     Since our initial public offering, we have been actively engaged in
locating a suitable business combination candidate. We have met with target
companies, service professionals and other intermediaries to discuss with them
our company, the background of our management and our combination preferences.
In the course of these discussions, we have also spent time explaining the
capital structure of the initial public offering, the combination approval
process, and the timeline under which we are operating before the proceeds of
the offering are returned to investors.

     Most of the activity from June 20, 2005 (inception) to December 31, 2006
relates to the Company's formation and public offering described below.

TWELVE MONTHS ENDED DECEMBER 31, 2006

     For the twelve months ended December 31, 2006, we had a net loss of
approximately $3,569,613 consisting of interest income of $1,308,883 offset by a
warrant liability of $3,783,750 and formation operating costs of $636,637.
Interest income is derived primarily from investment of our cash balances held
in trust,

<PAGE>

which aggregated approximately $38,726,883 at December 31, 2006. The cash
balance held in trust is invested primarily in treasury bills.

ITEM 7. FINANCIAL STATEMENTS.

     Reference is made to our financial statements beginning on page F-1 of this
report.

ITEM 8 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE.

     None.

ITEM 8A. CONTROLS AND PROCEDURES.

     Our management carried out an evaluation, with the participation of our
principal executive, financial, and accounting officers, of the effectiveness of
our disclosure controls and procedures as of December 31, 2006. Based upon that
evaluation, our Chairman, Chief Executive Officer and Chief Financial Officer
concluded that our disclosure controls and procedures were effective to ensure
that information required to be disclosed by us 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 Securities and Exchange Commission.

     There has not been any change in our internal control over financial
reporting in connection with the evaluation required by Rule 13a-15(d) under the
Exchange Act that occurred during the quarter ended December 31, 2006, that has
materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.

ITEM 8B. Other Information.

     None.

                                    PART III

ITEM 9. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

     Our current directors and executive officers are as follows:

<TABLE>
<CAPTION>
NAME                  AGE                    POSITION
----                  ---                    --------
<S>                   <C>   <C>
William R. Herren      60   Chairman of the Board of Directors
Rudy Wilson            57   Chief Executive Officer and Director
Dr. David J. Brophy    70   Chief Financial Officer and Director
Chun Yi Hao            45   President of China Operations and Director
Donald L. Runkle       61   Director
</TABLE>

William R. Herren has served as chairman of the board since our inception. From
July 2002 to January 2004, Mr. Herren provided advisory assistance leading to
the co-founding of Asia Development Capital LLC, an automotive business
consulting firm, which works with small and middle market automotive suppliers
in Asia Pacific. From 1968 to 2002, Mr. Herren was employed with General Motors
and its subsidiary Delphi, the largest global automotive vehicle/component
manufacturer. From July 1999 to June 2002, he was executive director of
marketing, sales, planning and M&A for Delphi Energy and Chassis Systems. From
1996

<PAGE>

to 1999, in addition to his responsibility as executive director, Mr. Herren
also managed Delphi's Converter business unit. From 1993 to 1996 he served as
executive director of Delphi Saginaw's marketing, sales, planning and M&A. From
1986 through 1993 he directed several Saginaw business units including final
drive, engine drive and steering systems. From 1968 through 1986 Mr. Herren held
a variety of assignments with General Motors including assignments at Chevrolet,
General Motors Assembly Division and GM corporate finance staff. Mr. Herren
earned a Bachelors Degree in Finance and an M.B.A. from Georgia State
University.

Rudy Wilson has served as our chief executive officer and a member of our board
of directors since our inception. In January 2004, Mr. Wilson co-founded Asia
Development Capital LLC. From January 1997 to December 2003, he was responsible
for various foreign funded investments in Asia for several Delphi Energy and
Chassis Systems business lines. Mr. Wilson was assigned to Beijing, China from
May 1993 through 1997 directing the development of Delphi Saginaw's initial
investment projects in China, India and ASEAN. During the assignment in China he
served on the board of directors of Delphi Lingyun Driveshaft, Delphi Xiaoshan
Steering and Delphi Malaysia. From 1976 through 1993 Mr. Wilson held a variety
of assignments with General Motors component operations and advanced
manufacturing engineering staff. Mr. Wilson received his Bachelor's Degree in
Chemical Engineering and an M.B.A. from the University of Detroit.

Dr. David J. Brophy has served as our chief financial officer and a member of
our board of directors since our inception. As a member of the Finance Faculty
at The University of Michigan School of Business Administration from 1968 to the
present, and Director of its Center for Venture Capital and Private Equity
Finance since 1992, he assists emerging and mid-sized companies. Dr. Brophy is a
founding member of the editorial board of the Journal of Private Equity and the
International Journal of Venture Capital. His advisory and consultant activities
in the public and private sector include such funds as Compass Technology
Partners, Plymouth Ventures, and Bio-Star Ventures and various government
agencies in the United States, Australia and France. Dr. Brophy received a
Bachelor of Arts from St. Francis Xavier University, an M.B.A. from the
University of Detroit and a Ph..D. from the Ohio State University.

Chun Hao has served as our president of China operations and a member of our
board of directors since our inception. In January 2004 Mr. Hao co-founded Asia
Development Capital LLC. From 2003 Mr. Hao was a founding member of Pentad, Ltd,
a Hong Kong Electronics outsourcing firm. From 1999 to 2002, he served as
director of Costal Power, a power generating and investment facility firm where
he was responsible for management of its investment portfolio in the PRC. From
January 1994 through 1998, at Delphi Asia, a United Sates based company, he was
responsible for overseeing various financial aspects of its China investment
strategy including due diligence, auditing and post venture internal controls.
Mr. Hao received a Bachelors of Arts Degree in French and English from the
Beijing Languages Institute, a Masters of Arts Degree from Notre Dame and an
M.B.A. from Pace University.

Donald L. Runkle has served as special advisor and director since our inception.
From 2002 to June 2005 Mr. Runkle was vice chairman, enterprise technologies for
Delphi Corporation, and served on the company's Board of Directors and its
Strategy Board. Additionally, Mr. Runkle was Delphi's chief technology officer
and responsible for global supply management, manufacturing and engineering
oversight, research and development, the commercial vehicle account, and the
DaimlerChrysler account. He was named executive vice-president of Delphi
Corporation and president of the former Dynamics and Propulsion sector from 2000
to 2002. Mr. Runkle served as general manager of Delphi Energy and Engine
Management Systems from 1996 to 2000. He was named vice-president and general
manager of Delphi Steering form 1993 to 1996. From 1981through 1993 Mr. Runkle
held a variety of executive assignments with General Motors vehicle operations,
including chief engineer at Chevrolet, vice president of GM's Advanced
Engineering Staff and vice president of GM's North American Engineering Center.
Mr. Runkle earned both his bachelor's and master's degrees from the University
of Michigan in mechanical engineering, and a master's in management science from
the Massachusetts Institute

<PAGE>

of Technology where he was a Sloan Fellow. Mr. Runkle has a fiduciary
responsibility to us in execution of his duties

     Our board of directors is divided into three classes with only one class of
directors being elected in each year and each class serving a three-year term.
The term of office of the first class of directors, consisting of Chun Hao, will
expire at our first annual meeting of stockholders. The term of office of the
second class of directors, consisting of Dr. David J. Brophy and Donald Runkle,
will expire at the second annual meeting. The term of office of the third class
of directors, consisting of William R. Herren and Rudy Wilson, will expire at
the third annual meeting. The special advisors' duties are limited to providing
advice and input on potential business combinations that are located, researched
and brought to the attention of the board of directors. Their individual
background experiences within the automotive industry as well as their global
locations are suited to these duties. All advisors are considered to each have a
fiduciary responsibility for the company.

     During the fiscal year ended December 31, 2006, the directors did not
receive any cash compensation for their service as members of the board of
directors.

CONTROLS AND PROCEDURES

     We do not currently, and are not required to, maintain an effective system
of internal controls as defined by Section 404 of the Sarbanes-Oxley Act of
2002. As of the date of this report, we have not completed an assessment, nor
have our auditors tested our system, of internal control. We expect that we will
assess the internal controls of our target business or businesses preceding the
completion of a business combination and will then implement a schedule for
implementation and testing of such additional controls as we may determine are
required to state that we maintain an effective system of internal controls. A
target business may not be in compliance with the provisions of the
Sarbanes-Oxley Act regarding the adequacy of its internal controls. Many small
and mid-sized target businesses we consider for a business combination may have
internal controls that need improvement in areas such as:

     -    Staffing for financial, accounting and external reporting areas,
          including segregation of duties;

     -    Reconciliation of accounts;

     -    Proper recordation of expenses and liabilities in the period to which
          they relate;

     -    Proof of internal review and approval of accounting items;

     -    Documentation of key accounting assumptions, estimates and/or
          conclusions; and

     -    Documentation of accounting policies and procedures.

     Because it will take time, management involvement and perhaps outside
resources to determine what internal control improvements are necessary for us
to meet regulatory requirements and market expectations for our operation of a
target business, we may incur significant expense in meeting our public
reporting responsibilities, particularly in the areas of designing, enhancing,
or remediating internal and disclosure controls. Doing so effectively may also
take longer than we expect, thus increasing our exposure to financial fraud or
erroneous financial reporting.

     Once our management's report on internal controls is complete, we will
retain our independent auditors to assess management's report on internal
controls and to render an opinion on such report when required by Section 404.
Additional matters concerning a target business's internal controls may be
identified in the future when the assessment and testing is performed.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

<PAGE>

     Section 16(a) of the Securities and Exchange Act of 1934, requires our
directors and executive officers and persons who own more than 10% of a
registered class of our equity securities, to file with the Securities and
Exchange Commission initial reports of ownership and reports of changes in
beneficial ownership of common stock and other equity securities to us.
Directors, officers and greater than 10% stockholders are required by SEC
regulations to furnish us with all Section 16(a) forms they file.

     To our knowledge, based solely upon our review of the copies of such
reports furnished to us, we believe that all of our directors, officers and
greater than 10% stockholders have complied with the applicable Section 16(a)
reporting requirements.

Board of Directors and Committees of the Board

     Our Board of directors did not meet during the fiscal year ended December
31, 2006. We do not currently have any Board Committees and do not anticipate
any until such time, if any, as a business combination is consummated.

CODE OF CONDUCT AND ETHICS

     We have adopted a code of conduct and ethics applicable to our directors,
officers and employees in accordance with applicable federal securities laws. A
copy of the code of conduct and ethics is available, without charge, upon
written request.

ITEM 10. EXECUTIVE COMPENSATION.

     None of our executive officers have received any compensation for services
rendered. Commencing on April 19, 2006 and continuing through the acquisition of
a target business, we will pay monthly fees of $7,500 for general and
administrative services, including office space, utilities and secretarial
support, to Asia Development Capital LLC., an affiliate. This arrangement is
solely for our benefit and is not intended to provide compensation in lieu of a
salary. Upon completion of a business combination or our liquidation, we will no
longer be required to pay these monthly fees.

     Other than this $7,500 per-month fee, no compensation of any kind,
including finder's and consulting fees, will be paid to any of our directors, or
any of their respective affiliates, for services rendered prior to or in
connection with a business combination. However, our existing stockholders will
be reimbursed for any out-of-pocket expenses incurred in connection with
activities on our behalf such as identifying potential target businesses and
performing due diligence on suitable business combinations. Such individuals may
be paid consulting, management or other fees from target businesses as a result
of the business combination, with any and all amounts being fully disclosed to
stockholders, to the extent then known, in the proxy solicitation materials
furnished to the stockholders. There is no limit on the amount of these
out-of-pocket expenses and there will be no review of the reasonableness of the
expenses by anyone other than our board of directors, which includes persons who
may seek reimbursement, or a court of competent jurisdiction if such
reimbursement is challenged. Because none of our directors may be deemed
"independent," we will generally not have the benefit of independent directors
examining the propriety of expenses incurred on our behalf and subject to
reimbursement.

     During the fiscal year ended December 31, 2006, the directors did not
receive any cash compensation for their service as members of the board of
directors

<PAGE>

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS

     The following table sets forth information regarding the beneficial
ownership of our common stock as of December 31, 2006 by:

     -    each person known by us to be the beneficial owner of more than 5% of
          our outstanding shares of common stock;

     -    each of our officers and directors; and

     -    all our officers and directors as a group.

Unless otherwise indicated, we believe that all persons named in the table have
sole voting and investment power with respect to all shares of common stock
beneficially owned by them.

<TABLE>
<CAPTION>
                                            Amount and Nature
                                              of Beneficial     Percent
Name and Address of Beneficial Owner            Ownership        Class
------------------------------------        -----------------   -------
<S>                                         <C>                 <C>
Asia Development Capital LLC. (1) (2)             459,600         8.3%
Rudy Wilson                                       229,800        4.15%
Bill Herren                                       229,800        4.15%
Chun Y. Hao                                       229,800        4.15%
Baupost Group LLC (3)                             493,500        7.74%
Jeffrey L Feinberg (4)                            621,200        9.74%
Balyasny Asset Management L.P.                    355,500         7.1%
All directors and executive officers as a
   group (4 individuals)                        1,149,000        20.0%
</TABLE>

(1)  The business address of Asia Development Capital LLC is 401 Old South
     Woodward, Suite 450, Birmingham, Michigan 48009.

(2)  459,600 of such shares are held by Asia Development Capital LLC. Rudy
     Wilson has ultimate voting and dispositive power over the shares held by
     Asia Development Capital LLC. The beneficial owners of Asia Development
     Capital LLC include Rudy Wilson, our chief executive officer and director,
     William Herren, our chairman, and director, Chun Yi Hao, our president of
     China operations, Dr. David J, Brophy, our Chief financial officer and
     Donald L. Runkle, director.

(3)  The business address of Baupost Group LLC is 10 St. James Avenue, Suite
     2000, Boston, MA 02116

(4)  The business address of JLF Asset Management, L.L.C. is2775 Via de la
     Valle, Suite 204, Del Mar, CA 92014

(5)  The business address of Balyasny Asset Management L.P. is 181 West Madison,
     Suite 3600, Chicago, IL 60602.

     All of the shares of our common stock outstanding prior to our initial
public offering, or the pre-public offering shares, were placed in escrow with
Continental Sock Transfer & Trust Company, as escrow agent, and shall remain in
escrow until the earliest of (i) April 11, 2008; or (ii) our liquidation; or
(iii) the consummation of

<PAGE>

a merger, stock exchange or other similar transaction which results in all of
our stockholders having the right to exchange their shares of common stock for
cash, securities or other property subsequent to the Company consummating a
business combination.

     During the escrow period, the holders of these shares will not be able to
sell or transfer their securities except to their spouses and children or trusts
established for their benefit, but will retain all other rights as our public
stockholders, including, without limitation, the right to vote their shares of
common stock and the right to receive cash dividends, if declared. If dividends
are declared and payable in shares of common stock, such dividends will also be
place in escrow. If the Company is unable to effect a business combination and
liquidates, the holder of the pre-public offering shares will not receive any
portion of the liquidation proceeds with respect to commons stock owned by them
prior to April 11, 2008.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
INDEPENDENCE

     On June 20, 2005, we issued 1,349,000 shares of our common stock to the
individuals set forth below for $25,000 in cash, at a purchase price of
approximately $.001 per share (giving retroactive effect to a stock dividend of
..094 shares of common stock for each outstanding share of common stock on
December 14, 2005, and a stock dividend of .233 shares of common stock for each
outstanding share of common stock on January 23, 2006) as follows:

<TABLE>
<CAPTION>
Name                           Number of Shares
----                           ----------------
<S>                            <C>
Asia Development Capital LLC       1,149,000
Paul Packer                          100,000
Michael Metzman                       50,000
Craig Samuels                         50,000
</TABLE>

     On February 8, 2006, we transferred an aggregate of 200,000 shares of our
common stock to the three Globis entities, Craig Samuels and Mitchell Metzman,
pursuant to separate letter agreements. The shares were purchased by each of the
three Globis entities, Craig Samuels and Mitchell Metzman for $.025 per share.
The three Globis entities do not have any relationship with the other existing
stockholders and have no role in our business. We transferred the shares to the
Globis entities and other individual stockholders to expand our existing
ownership beyond the members of management and because the Globis entities and
these individuals committed to purchase our warrants in the aftermarket.

     The holders of the majority of these shares will be entitled to make up to
two demands that we register these shares pursuant to an agreement to be signed
prior to or on the date of this prospectus. The holders of the majority of these
shares can elect to exercise these registration rights at any time commencing
three months prior to the date on which these shares of common stock are to be
released from escrow. In addition, these stockholders have certain "piggy-back"
registration rights with respect to registration statements filed subsequent to
the date on which these shares of common stock are released from escrow. We will
bear the expenses incurred in connection with the filing of any such
registration statements.

     William R. Herren, Rudy Wilson, Chun Yi Hao, and Asia Development Capital
LLC or their designees, have agreed with Rodman & Renshaw that during the 45
trading day period commencing on the later of the date separate trading of the
warrants has commenced or sixty days following the consummation of this
offering, they will purchase up to 320,000 warrants in the public marketplace at
prices not to exceed $1.40 per warrant. As of December 31, 2006 they have
purchased an aggregate of 290,000 warrants.

<PAGE>

     Rodman & Renshaw has entered into a letter agreement with us pursuant to
which it agreed to purchase up to 125,000 warrants in the public marketplace at
prices not to exceed $1.40 per warrant during the 45 trading day period
commencing on the later of the date separate trading of the warrants has
commenced or 60 days following the consummation of this offering.

     Chardan Capital Markets has entered into a letter agreement with us
pursuant to which it agreed to purchase up to 125,000 warrants in the public
marketplace at prices not to exceed $1.40 per warrant during the 45 trading day
period commencing on the later of the date separate trading of the warrants has
commenced or 60 days following the consummation of this offering.

     Globis Capital Advisers, LLC., one of our initial stockholders, has entered
into a letter agreement with Rodman & Renshaw pursuant to which it agreed to
purchase up to $600,000 in warrants at prices not to exceed $1.40 per warrant
during the 45 trading day period commencing on the later of the date separate
trading of the Warrants has commenced or 60 days following the consummation of
this offering.

     Globis Overseas Fund, Ltd., one of our initial stockholders, has entered
into a letter agreement with Rodman & Renshaw pursuant to which it agreed to
purchase up to 200,000 in warrants at prices not to exceed $1.40 per warrant
during the 45 trading day period commencing on the later of the date separate
trading of the warrants has commenced or 60 days following the consummation of
this offering.

     Globis Asia LLC, one of our initial stockholders, has entered into a letter
agreement with Rodman &Renshaw pursuant to which it agreed to purchase up to
$200,000 in warrants at prices not to exceed $1.40 per warrant during the 45
trading day period commencing on the later of the date separate trading of the
warrants has commenced or 60 days following the consummation of this offering.

     Mitchell Metzman, one of our initial stockholders, has entered into a
letter agreement with Rodman & Renshaw pursuant to which it agreed to purchase
up to $500,000 in warrants at prices not to exceed $1.40 per warrant during the
45 trading day period commencing on the later of the date separate trading of
the warrants has commenced or 60 days following the consummation of this
offering.

     Craig Samuels, one of our initial stockholders, has entered into a letter
agreement with Rodman & Renshaw pursuant to which it agreed to purchase up to
$500,000 in warrants at prices not to exceed $1.40 per warrant during the 45
trading day period commencing on the later of the date separate trading of the
warrants has commenced or 60 days following the consummation of this offering.

     Rodman & Renshaw, Chardan Capital Markets, the Globis entities, Mitchell
Metzman and Craig Samuels in the aggregate purchased 20,000 warrants.

     All of the warrant purchases described above will be made in accordance
with guidelines, specifically Rule 10b5-1, under the Securities Exchange Act of
1934 through an independent broker-dealer registered under Section 15 of the
Exchange Act which is not affiliated with us nor part of the underwriting or
selling group. Accordingly, Rodman & Renshaw will not be the broker in the
warrant purchase transactions and there are no, and will not be, side or other
agreements that would allow Rodman & Renshaw to have any influence over the
warrant purchases. In addition, all of the purchasers of warrants described
above have agreed not to sell their warrants until we complete a business
combination.

     We have agreed to pay Asia Development Capital LLC $7,500 per month for
these services. Messrs. Herren, Wilson, and Hao each own 33.33% of Asia
Development Capital LLC. Accordingly, each will benefit from the transaction to
the extent of his respective interest in Asia Development Capital LLC. However,
this arrangement is solely for our benefit and is not intended to provide
Messrs. Herren, Wilson, and Hao compensation in lieu of a salary. We believe,
based on rents and fees for similar services in the United States and Asia, that
the fee charged by Asia Development Capital LLC is at least as

<PAGE>

favorable as we could have obtained from an unaffiliated person. However, as our
directors may not be deemed "independent," we did not have the benefit of
disinterested directors approving this transaction.

     Accordingly, each will benefit from the transaction to the extent of his
respective interest in Asia Development Capital LLC. However, this arrangement
is solely for our benefit and is not intended to provide Messrs. Herren, Wilson,
and Hao compensation in lieu of a salary. We believe, based on rents and fees
for similar services in the United States and Asia, that the fee charged by Asia
Development Capital LLC is at least as favorable as we could have obtained from
an unaffiliated person. However, as our directors may not be deemed
"independent," we did not have the benefit of disinterested directors approving
this transaction.

     We will reimburse our officers and directors for any reasonable
out-of-pocket business expenses incurred by them in connection with certain
activities on our behalf such as identifying and investigating possible target
businesses and business combinations. Excess out-of-pocket expenses will be
considered a liability and will be repaid by the resulting company.

     All ongoing and future transactions between us and any of our officers and
directors or their respective affiliates, including loans by our officers and
directors, will be on terms believed by us to be no less favorable than are
available from unaffiliated third parties and such transactions or loans,
including any forgiveness of loans, will require prior approval in each instance
by a majority of our uninterested "independent" directors (to the extent we have
any) or the members of our board who do not have an interest in the transaction,
in either case who had access, at our expense, to our attorneys or independent
legal counsel. In addition, our management will gather pricing information,
estimates or fairness opinions from unaffiliated third parties with respect to
similar transactions undertaken by us to ascertain whether such transactions
with affiliates are on terms that are no less favorable to us than are otherwise
available from such unaffiliated third parties. If a transaction with an
affiliated third party were found to be on terms less favorable to us than with
an unaffiliated third party, we would not engage in such transaction.

Item 13. Exhibits.

(a) The following documents are filed as a part of this Report:

     1.   Financial Statements:

          Index to Financial Statements and Schedules

          Report of Independent Registered Public Accounting Firm

          Balance Sheet as of December 31, 2006

          Income Statement - Period from June 20, 2005 (inception) to December
          31, 2006

          Statement of Stockholders' Equity - Period from June 20, 2005
          (inception) to December 31, 2006

          Statement of Cash Flows - Period from June 20, 2005 (inception) to
          December 31, 2006

          Notes to Financial Statements

     2.   Financial Statement Schedule(s):

<PAGE>

          All schedules are omitted for the reason that the information is
          included in the financial statements or the notes thereto or that they
          are not required or are not applicable.

     3.   EXHIBITS:

<TABLE>
<CAPTION>
Exhibit No.   Description
-----------   -----------
<S>           <C>
3.1           Certificate of Incorporation.*

3.2           By-laws.*

4.1           Specimen Unit Certificate.*

4.2           Specimen Common Stock Certificate.*

4.3           Specimen Warrant Certificate.*

4.4           Form of Unit Purchase Option to be granted to Representative.*

4.5           Form of Warrant Agreement between Continental Stock Transfer &
              Trust Company and the Company.*

10.1          Letter Agreement among the Registrant, Rodman & Renshaw, LLC and
              Vinit Bansal.*

10.2          Letter Agreement among the Registrant, Rodman & Renshaw, LLC and
              Chun Hao.*

10.3          Letter Agreement among the Registrant, Rodman & Renshaw, LLC and
              William R. Herren.*

10.4          Letter Agreement among the Registrant, Rodman & Renshaw, LLC and
              Rudy Wilson.*

10.5          Letter Agreement among the Registrant, Rodman & Renshaw, LLC and
              Asia Development Capital, LLC.*

10.6          Letter Agreement among the Registrant, Rodman & Renshaw, LLC and
              Donald L. Runkle.*

10.7          Letter Agreement among the Registrant, Rodman & Renshaw, LLC and
              David J. Brophy.*

10.8          Letter Agreement among the Registrant, Rodman & Renshaw, LLC and
              Globis Capital Partners, L.P..*

10.9          Letter Agreement among the Registrant, Rodman & Renshaw, LLC and
              Globis Overseas Fund, Ltd.*

10.10         Letter Agreement among the Registrant, Rodman & Renshaw, LLC and
              Globis Asia, LLC.*

10.11         Letter Agreement among the Registrant, Rodman & Renshaw, LLC and
              Mitchell Metzman.*

10.12         Letter Agreement among the Registrant, Rodman & Renshaw, LLC and
              Craig Samuels.*

10.13         Letter Agreement between Chun Yi Hao and Globis Capital Partners,
              L.P.*
</TABLE>

<PAGE>

<TABLE>
<S>           <C>
10.14         Letter Agreement between William R. Herren and Globis Capital
              Partners, L.P.*

10.15         Letter Agreement between Rudy Wilson and Globis Capital Partners,
              L.P.*

10.16         Letter Agreement between Vinit Bansal and Globis Capital Partners,
              L.P.*

10.17         Letter Agreement between Asia Development Capital, LLC and Globis
              Capital Partners, L.P.*

10.18         Letter Agreement between Chun Yi Hao and Globis Overseas Fund,
              Ltd.*

10.19         Letter Agreement between William R. Herren and Globis Overseas
              Fund, Ltd.*

10.20         Letter Agreement between Rudy Wilson and Globis Overseas Fund,
              Ltd.*

10.21         Letter Agreement between Vinit Bansal and Globis Overseas Fund,
              Ltd.*

10.22         Letter Agreement between Asia Development Capital, LLC and Globis
              Overseas Fund, Ltd.*

10.23         Letter Agreement between Chun Yi Hao and Globis Asia LLC *

10.24         Letter Agreement between William R. Herren and Globis Asia LLC*

10.25         Letter Agreement between Rudy Wilson and Globis Asia LLC*

10.26         Letter Agreement between Vinit Bansal and Globis Asia LLC*

10.27         Letter Agreement between Asia Development Capital, LLC and Globis
              Asia LLC*

10.28         Letter Agreement between Chun Yi Hao and Mitchell Metzman*

10.29         Letter Agreement between William R. Herren and Mitchell Metzman*

10.30         Letter Agreement between Rudy Wilson and Mitchell Metzman*

10.31         Letter Agreement between Vinit Bansal and Mitchell Metzman*

10.32         Letter Agreement between Asia Development Capital, LLC and
              Mitchell Metzman*

10.33         Letter Agreement between Asia Development Capital, LLC and Craig
              Samuels*

10.34         Letter Agreement between Chun Yi Hao and Craig Samuels*

10.35         Letter Agreement between William R. Herren and Craig Samuels*

10.36         Letter Agreement between Rudy Wilson and Craig Samuels*

10.37         Letter Agreement between Vinit Bansal and Craig Samuels*

10.38         Form of Investment Management Trust Agreement between Continental
              Stock Transfer & Trust and the Company.*
</TABLE>

<PAGE>

<TABLE>
<S>           <C>
10.39         Form of Stock Escrow Agreement between the Company, Continental
              Stock Transfer & Trust Company and the Initial Stockholders.*

10.40         Form of Letter Agreement between Asia Development Capital, LLC and
              the Registrant regarding administrative support.*

10.41         Promissory Note, dated July 18, 2005, issued to Vinit Bansal.*

10.42         Promissory Note, dated July 18, 2005, issued to Chun Yi Hao.*

10..43        Promissory Note, dated July 18, 2005, issued to William R.
              Herren.*

10.44         Promissory Note, dated July 18, 2005, issued to Rudy Wilson.*

10.45         Promissory Note, dated July 18, 2005, issued to Asia Development
              Capital, LLC.*

10.46         Form of Registration Rights Agreement among the Registrant and the
              Initial Stockholders.*

10.47         Warrant Purchase Agreement between Rodman & Renshaw, LLC and the
              Registrant's officers and directors.*

10.48         Warrant Purchase Agreement between Rodman & Renshaw, LLC and the
              Registrant.*

10.49         Warrant Purchase Agreement between Chardan Capital Markets and the
              Registrant.*

10.50         Warrant Purchase Agreement between Rodman & Renshaw, LLC and
              Globis Capital Partners, L.P.*

10.51         Warrant Purchase Agreement between Rodman & Renshaw, LLC and
              Globis Overseas Fund, Ltd.*

10.52         Warrant Purchase Agreement between Rodman & Renshaw, LLC and
              Globis Asia LLC*

10.53         Warrant Purchase Agreement between Rodman & Renshaw, LLC and
              Mitchell Metzman*

10.54         Warrant Purchase Agreement between Rodman & Renshaw, LLC and Craig
              Samuels*

24.1          Power of Attorney. (included on signature page of Form 10-KSB)

31.1          Certification of the Chief Executive Officer, as adopted pursuant
              to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1          Certification pursuant to Section 906 of the Sarbanes-Oxley Act of
              2002 ( Subsections (a) and (b) of Section 1350, Chapter 63 of
              Title 18, United States Code).
</TABLE>

*    Incorporated by reference to exhibits of the same number filed with the
     Registrants' Registration Statement on Form S-1 or amendments thereto (File
     No. 333-127755)

<PAGE>

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Audit Fees

     During the fiscal year ended December 31, 2006, we paid, or expect to pay,
our principal accountant approximately $56,000 for the services they performed
in connection with our initial public offering, including the financial
statements included in the Current Reports on Form 8-K and Form 8-K/A filed with
the Securities and Exchange Commission on April 19, 2006, $27,000 in connection
with the review of our Quarterly Reports on Form 10-QSB for the quarters ended
March 31, 2006, June 30, 2006 and September 30, 2006, and approximately $19,000
in connection with the December 31, 2006 audit and Annual Report on Form 10-KSB.

Audit-Related Fees

     During 2006, our principal accountant did not render assurance and related
services reasonably related to the performance of the audit or review of
financial statements.

Tax Fees

     During 2006, our principal accountant did not render services to us for tax
compliance, tax advice and tax planning.

All Other Fees

     During 2006, there were no fees billed for products and services provided
by the principal accountant other than those set forth above.

<PAGE>

SIGNATURE AND POWER OF ATTORNEY

The undersigned hereby appoint William R. Herren and Rudy Wilson, and each of
the, as attorneys and agents for the undersigned, with full power of
substitution, for and in the name, place and stead of the undersigned, to sign
and file with the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended, any and all exhibits and amendments to this
10-KSB, and any and all instruments and other documents to be filed with the
Securities and Exchange Commission pertaining to this 10-KSB, with full power
and authority to do and perform any and all acts and things whatsoever requisite
or desirable.

Pursuant to the requirements of Section 13 or 159(d); of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


Date: April 17, 2007                    By: /s/ William R. Herren
                                            ------------------------------------
                                            William R. Herren
                                            Chairman of the Board


Date: April 17, 2007                    By: /s/ Rudy Wilson
                                            ------------------------------------
                                            Rudy Wilson
                                            Chief Executive Officer

Pursuant to the requirements of Securities Exchange Act of 1934, as amended,
this report has been signed below by the following persons on behalf of the
registrant, in the capacities and on the dates indicated.


Date: April 17, 2007                    By: /s/ William R. Herren
                                            ------------------------------------
                                            William R. Herren
                                            Chairman of the Board


Date: April 17, 2007                    By: /s/ Rudy Wilson
                                            ------------------------------------
                                            Rudy Wilson
                                            Chief Executive Officer


Date: April 17, 2007                    By: /s/ David J. Brophy
                                            ------------------------------------
                                            David J. Brophy
                                            Chief Financial Officer


Date: April 17, 2007                    By: /s/ Chun Y. Hao
                                            ------------------------------------
                                            Chun Y. Hao
                                            President, China Operations


Date: April 17, 2007                    By: /s/ Donald L. Runkle
                                            ------------------------------------
                                            Donald R. Runkle
                                            Director

<PAGE>

                     ASIA AUTOMOTIVE ACQUSITION CORPORATION
                    (a corporation in the development stage)

                          Index to Financial Statements

Financial Statements
Report of Independent Registered Public Accounting Firm
Balance Sheet
Statements of Operations
Statement of Stockholders' Equity
Statements of Cash Flows
Notes to Financial Statements

<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders
Asia Automotive Acquisition Corporation

We have audited the accompanying balance sheet of Asia Automotive Acquisition
Corporation (a corporation in the development stage) (the "Company") as of
December 31, 2006 and the related statements of operations, stockholders' equity
and cash flows for the year ended December 31, 2006, for the period from June
20, 2005 (date of inception) through December 31, 2005, and the period from June
20, 2005 (date of inception) through December 31, 2006. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. The Company is not required to
have, nor were we engaged to perform, an audit of its internal control over
financial reporting. Our audit included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Company as of December 31,
2006 and the results of its operations and its cash flows for the year ended
December 31, 2006, for the period from June 20, 2005 (date of inception) through
December 31, 2005, and for the period from June 20, 2005 (date of inception)
through December 31, 2006 in conformity with accounting principles generally
accepted in the United States of America.

The accompanying financial statements have been prepared assuming that Asia
Automotive Acquisition Corporation will continue as a going concern. As
discussed in Note 1 to the financial statements, Asia Automotive Acquisition
Corporation will face a mandatory liquidation if a business combination is not
consummated by October 18, 2007, which raises substantial doubt about its
ability to continue as a going concern. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.


                                        /s/ Rothstein, Kass & Company, P.C.

Roseland, New Jersey
March 2, 2007

<PAGE>

                     ASIA AUTOMOTIVE ACQUISITION CORPORATION
                    (a corporation in the development stage)
                                  BALANCE SHEET

<TABLE>
<CAPTION>
                                                                        DECEMBER 31,
                                                                            2006
                                                                        ------------
<S>                                                                     <C>
                                ASSETS

Current assets
   Cash and cash equivalents                                            $   384,162
Other assets
   Cash held in trust account                                            38,726,883
                                                                        -----------
Total assets                                                            $39,111,045
                                                                        ===========
                 LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
   Accrued expenses                                                     $   111,750
   Accrued taxes payable                                                    458,109
   Warrant liability                                                     11,166,563
   Deferred underwriter's fee                                               966,121
                                                                        -----------
Total current liabilities                                                12,702,543
                                                                        -----------
   Common stock, subject to possible redemption, 1,005,746
      shares at redemption value plus interest income of $170,070
      (net of taxes)                                                      7,649,928

                         STOCKHOLDERS' EQUITY

   Preferred stock, $.001 par value, authorized 1,000,000
      shares; none issued and outstanding Common stock, $.001 par
      value, authorized 39,000,000 shares; issued  and outstanding
      6,380,250 shares (of which 1,005,746 shares subject to possible
      redemption)                                                             6,380
   Additional paid-in capital                                            22,327,433
   Deficit accumulated during the development stage                      (3,575,239)
                                                                        -----------
   Total stockholders' equity                                            18,758,574
                                                                        -----------
   Total liabilities and stockholders' equity                           $39,111,045
                                                                        ===========
</TABLE>

See accompanying notes to financial statements.


                                       F1

<PAGE>

                     ASIA AUTOMOTIVE ACQUISITION CORPORATION
                    (a corporation in the development stage)
                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                      JUNE 20, 2005       JUNE 20, 2005
                                                    YEAR ENDED        (INCEPTION) TO      (INCEPTION) TO
                                                DECEMBER 31, 2006   DECEMBER 31, 2005   DECEMBER 31, 2006
                                                -----------------   -----------------   -----------------
<S>                                             <C>                 <C>                 <C>
Interest income                                    $ 1,308,883         $       --          $ 1,308,883
Unrealized loss on warrant liability                (3,783,750)                             (3,783,750)
Formation and operating costs                         (636,637)            (5,626)            (642,263)
                                                   -----------         ----------          -----------
Loss before taxes                                   (3,111,504)            (5,626)          (3,117,130)
Income taxes                                          (458,109)                               (458,109)
                                                   -----------         ----------          -----------
Net loss                                           $(3,569,613)        $   (5,626)         $(3,575,239)
                                                   -----------         ----------          -----------
Interest income attributable to common
   stock subject to possible conversion
   (net of taxes)                                      170,070                                 170,070
                                                   ===========                             ===========
Net loss allocable to common stockholders
   not subject to possible conversion (net of
   taxes)                                          $(3,739,683)        $   (5,626)         $(3,745,309)
                                                   ===========         ==========          ===========
Weighted average shares outstanding
   (basic and diluted)                               4,901,284          1,349,000            3,662,115
                                                   ===========         ==========          ===========
Net loss per common share (basic and diluted)      $      (.73)        $       --          $      (.98)
</TABLE>

See accompanying notes to financial statements.


                                       F2

<PAGE>

                     ASIA AUTOMOTIVE ACQUISITION CORPORATION
                    (a corporation in the development stage)
                        STATEMENT OF STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                                             Deficit
                                                                           accumulated
                                           Common Stock       Additional      during
                                        ------------------     paid in     development
                                          Shares    Amount     capital        stage         Total
                                        ---------   ------   -----------   -----------   -----------
<S>                                     <C>         <C>      <C>           <C>           <C>
Balances at June 20, 2005
   (date of inception)                         --   $   --   $        --   $        --   $        --
Issuance of common stock to
   existing shareholders                1,349,000    1,349        23,651                      25,000
Net loss                                                                        (5,626)       (5,626)
                                        ---------   ------   -----------   -----------   -----------
Balances at December 31, 2005           1,349,000    1,349        23,651        (5,626)       19,374
                                        ---------   ------   -----------   -----------   -----------
Sale of 5,031,250 units on April 18,
   2006 at a price of $8.00 per unit,
   net of underwriter's discount and
   offering expenses (including
   1,005,746 shares subject to
   possible redemption)                 5,031,250    5,031    37,166,353                  37,171,384
Sale of option on April 18, 2006 at a
   price of $100 for 350,000 units                                   100                         100
Proceeds subject to possible
   conversion of shares, 1,005,746
   shares                                                     (7,479,858)                 (7,479,858)
Warrant liability                                             (7,382,813)                 (7,382,813)
Net loss                                                                    (3,569,613)   (3,569,613)
                                        ---------   ------   -----------   -----------   -----------
Balances at December 31, 2006           6,380,250   $6,380   $22,327,433   $(3,575,239)  $18,758,574
                                        =========   ======   ===========   ===========   ===========
</TABLE>

See accompanying notes to financial statements.


                                       F3

<PAGE>

                     ASIA AUTOMOTIVE ACQUISITION CORPORATION
                    (a corporation in the development stage)
                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                 JUNE 20, 2005         JUNE 20, 2005
                                                              (DATE OF INCEPTION)   (DATE OF INCEPTION)
                                             YEAR ENDED                TO                    TO
                                          DECEMBER 31, 2006    DECEMBER 31, 2005     DECEMBER 31, 2006
                                          -----------------   -------------------   -------------------
<S>                                       <C>                 <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                 $ (3,569,613)           $ (5,626)          $ (3,575,239)
   Adjustments to reconcile net loss to
      net cash provided by (used in)
      operating activities:
      Loss from warrant liability              3,783,750                                  3,783,750
      Income taxes payable                       458,109                                    458,109
      Accrued expenses                           111,750                                    111,750
                                            ------------                               ------------
   Net cash provided by (used in)
      operating activities                       783,996              (5,626)               778,370
                                            ------------            --------           ------------
NET CASH USED IN INVESTING ACTIVITIES:
      Cash held in trust account             (38,726,883)                               (38,726,883)
                                            ------------                               ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from note payable                     20,250              25,000                 45,250
   Proceeds from issuance of common
      stock to existing stockholders                                  25,000                 25,000
   Proceeds from  sale of option to
      to underwriter                                 100                                        100
   Gross proceeds of public offering          40,250,000                                 40,250,000
   Repayment of notes payable to
      stockholders                               (45,250)                                   (45,250)
   Payments of deferred offering costs        (1,912,794)            (29,631)            (1,942,425)
                                            ------------            --------           ------------
   Net cash provided by financing
      activities                              38,312,306              20,369             38,332,675
                                            ------------            --------           ------------
   Net increase in cash and cash
      equivalents                                369,419              14,743
   Cash and cash equivalents,
      beginning of period                         14,743
                                            ------------
   Cash and cash equivalents, end of
      period                                $    384,162            $ 14,743           $    384,162
                                            ------------            --------           ------------
SUPPLEMENTAL DISCLOSURE OF NON-CASH
   FINANCING ACTIVITY:
   Deferred underwriter's fees              $  1,207,500            $     --           $  1,207,500
                                            ------------            --------           ------------
   Accrued offering costs                   $         --            $235,369           $
                                                                    --------
</TABLE>

See accompanying notes to financial statements.


                                       F4

<PAGE>

                     ASIA AUTOMOTIVE ACQUISITION CORPORATION
                    (a corporation in the development stage)

                          NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATION AND BUSINESS OPERATIONS

     Asia Automotive Acquisition Corporation (the "Company") was incorporated in
Delaware on June 20, 2005 as a blank check company formed to acquire, through
merger, capital stock exchange, asset acquisition or other similar business
combination, a business in the automotive supplier industry. The Company has
neither engaged in any operations nor generated revenues to date. The Company is
considered to be in the development stage and is subject to the risks associated
with activities of development stage companies. The Company has elected December
31st as its fiscal year end.

     The registration statement for the Company's initial public offering (the
"Public Offering") was declared effective on April 11, 2006. The Company
consummated the Public Offering on April 18, 2006 and received net proceeds of
approximately $ 37,171,000. The Company's management has broad discretion with
respect to the specific application of the net proceeds of the Public Offering
(the "Offering") (as described in Note 3), although substantially all of the net
proceeds of the Offering are intended to be generally applied toward
consummating a business combination with a target company. As used herein, a
"target business" shall include an operating business in the security industry
and a "business combination" shall mean the acquisition by the Company of a
target business.

     Of the proceeds of the Offering, $37,418,000 (plus interest income) is
being held in a trust account ("Trust Account") and invested until the earlier
of (i) the consummation of the first business combination or (ii) the
distribution of the Trust Account as described below. The amount in the Trust
Account include $ 1,207,500 of contingent underwriting compensation, which will
be paid to the underwriters if a business combination is consummated, but which
will be forfeited in part if public stockholders elect to have their shares
redeemed for cash if a business combination is not consummated. Deferred
underwriter's fee is reflected on the balance sheet at $966,121, an additional
$241,379 is included in common stock, subject to possible conversion, for a
total of $1,207,500. The remaining proceeds may be used to pay for business,
legal and accounting due diligence on prospective acquisitions and continuing
general and administrative expenses.

     The Company, after signing a definitive agreement for the acquisition of a
target business, will submit such transaction for stockholder approval. In the
event that public stockholders owning a majority of the outstanding stock sold
in the Offerings vote against the business combination and elect to have the
Company redeem their shares for cash, including all of the officers and
directors of the Company ("Initial Stockholders"), have agreed to vote their
1,349,000 founding shares of common stock in accordance with the vote of the
majority in interest of all other stockholders of the Company with respect to
any business combination and to vote any shares they acquire in the aftermarket
in favor of the business combination. After consummation of the Company's first
business combination, all of these voting safeguards will no longer be
applicable.

     With respect to the first business combination which is approved and
consummated, any holder of shares sold in the Public Offering, other than the
Initial Stockholders and their nominees (the "Public Stockholders") who voted
against the business combination may demand that the Company redeem his or her
shares. The per share redemption price will equal $ 7.44 per share plus interest
earned thereon in the Trust Account. Accordingly, Public Stockholders holding
19.99% of the aggregate number of shares sold in this offering and the private
placement may seek redemption of their shares in the event of a business
combination.

     The Company's Certificate of Incorporation provides for mandatory
liquidation of the Company, without stockholder approval, in the event that the
Company does not consummate a business combination within 18 months from the
date of consummation of the Public Offering, or 24 months from the consummation
of the Public Offering if certain extension criteria have been satisfied. The
Initial Stockholders have waived their right to liquidation distributions with
respect to the shares of common stock included in such units. Accordingly, in
the event of such liquidation, the amount in the Trust Account will be
distributed to the holders of the shares sold in the Public Offering.


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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Common stock:

     On January 23, 2006, the Company effected a stock split in the form of a
dividend of .233 shares of common stock for each outstanding share of common
stock. All references in the accompanying financial statements to the number of
shares of common stock and loss per share have been retroactively restated to
reflect these transactions.

Warrant liability:

     The Company has outstanding warrants, which provides for the Company to
register the shares underlying the warrants and is silent as to the penalty to
be incurred in the absence of the Company's ability to deliver registered shares
to the warrant holders upon warrant exercise. Under EITF No. 00-19 "Accounting
for Derivative Financial Instruments Indexed to, and Potentially Settled in, a
Company's Own Stock" ("EITF No. 00-19"), registration of the common stock
underlying the Company's warrants is not within the Company's control. As a
result, the company must assume that it could be required to settle the warrants
on a net-cash basis, thereby necessitating the treatment of the potential
settlement obligation as a liability. Further EITF No. 00-19, requires the
Company to record the potential settlement liability at each reporting date
using the current estimated fair value of the warrants, with any changes being
recorded through the Company's statement of operations. The potential settlement
obligation related to the warrants will continue to be reported as a liability
until such time that the warrants are exercised, expire, or the Company is
otherwise able to modify the registration requirements in the warrant agreement
to remove the provisions which require this treatment. The fair value of the
warrant liability is determined using the trading value of the warrants.

Loss per common share:

     Loss per common share is based on the weighted average number of common
shares outstanding. The Company complies with SFAS No. 128, "Earnings Per
Share." SFAS No. 128 requires dual presentation of basic and diluted income per
share for all periods presented. Basic loss per share excludes dilution and is
computed by dividing income available to common stockholders by the weighted
average number of common shares outstanding for the period. Diluted loss per
share reflects the potential dilution that could occur if securities or other
contracts to issue common stock were exercised or converted into common stock or
resulted in the issuance of common stock that then share in the income of the
Company.

     Since the effects of the outstanding warrants are anti-dilutive, it has
been excluded from the computation of loss per common share.

Use of estimates:

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


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Income tax:

     The Company complies with the Financial Accounting Standards Board ("FASB")
SFAS 109, "Accounting for Income Taxes," which requires an asset and liability
approach to financial accounting and reporting for income taxes. Deferred income
tax assets and liabilities are computed for differences between the financial
statement and tax bases of assets and liabilities that will result in future
taxable or deductible amounts, based on enacted tax laws and rates applicable to
the periods in which the differences are expected to affect taxable income.
Valuation allowances are established, when necessary, to reduce deferred tax
assets to the amount expected to be realized.

Cash and cash equivalents:

     The Company considers all highly liquid investments purchased with an
original maturity of three months or less to be cash equivalents.

Recently issued accounting standards:

     On July 13, 2006, FASB released FASB Interpretation No. 48 Accounting for
Uncertainty in Income Taxes ("FIN 48"). FIN 48 provides guidance for how
uncertain tax positions should be recognized, measured, presented and disclosed
in the financial statements. FIN 48 requires the evaluation of tax positions
taken in the course of preparing the Company's tax returns to determine whether
the tax positions are "more-likely-than-not" of being sustained by the
applicable tax authority. Tax benefits of positions nor deemed to meet the
more-likely-than-not threshold would be recorded as a tax expense in the current
year. Adoption of FIN 48 is required for fiscal years beginning after December
15, 2006 and is to be applied to all open tax years as of the effective date. At
this time, management is evaluating the implications of FIN 48 and its impact on
the financial statements has not yet been determined.

In addition, in September 2006, the Statement of Financial Accounting Standard
No. 157, Fair Value Measurements ("SFAS 157"), was issued and is effective for
fiscal years beginning after November 15,2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Company's financial statements and their
disclosures and its impact has not yet been determined.

3. THE OFFERING

     On April 18, 2006, the Company sold 5,031,250 units (including the
underwriters full exercise of an over allotment option with respect to 656,250
units) to the public at a price of $8.00 per unit. Each unit consists of one
share of the Company's common stock, $0.001 par value, and one redeemable common
stock purchase warrant ("warrant"). Each warrant entitles the holder to purchase
from the Company one share of common stock at an exercise price of $5.00
commencing the later of the completion of a business combination with a target
business or April 10, 2007 and expiring April 11, 2012. The warrants are
redeemable at a price of $.01 per warrant upon 30 days notice after the warrants
become exercisable, only in the event that the last sale price of the common
stock is at least $10.00 per share for any 20 trading days within a 30 trading
day period ending three business days before we send the notice of redemption.

4. INCOME TAXES

     Income tax expense for the twelve months ended December 31, 2006 was
approximately $458,000. The expense is for current federal income taxes. The
effective income tax rate was (15%) which differs from the statutory rate of 34%
principally due to a permanent difference due to the unrealized loss on the
warrant liability.


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5. COMMITMENTS AND RELATED PARTY TRANSACTIONS

     The Company presently occupies office space provided by Asia Development
Capital LLC ("ADC"), an affiliate and stockholder of the Company. ADC has agreed
that, until the Company consummates a business combination, it will make such
office space, as well as certain office and secretarial services, available to
the Company, as may be required by the Company from time to time. The Company
has agreed to pay such affiliate $7,500 per month for such services commencing
on the effective date of the Offering, April 18, 2006.

     The Company has engaged Rodman & Renshaw, the representative of the
underwriters, on a non-exclusive basis, as the Company's agent for the
solicitation of the exercise of the warrants. To the extent not inconsistent
with the guidelines of the NASD and the rules and regulations of the SEC, the
Company has agreed to pay the representative for bona fide services rendered a
commission equal to 2.5% of the exercise price for each warrant exercised more
than one year after the date of the prospectus if the exercise was solicited by
the underwriters. In addition to soliciting, either orally or in writing, the
exercise of the warrants, the representative's services may also include
disseminating information, either orally or in writing, to warrant holders about
the Company or the market for our securities, and assisting in the processing of
the exercise of the warrants. No compensation will be paid to the representative
upon the exercise of the warrants if:

-    the market price of the underlying shares of common stock is lower than the
     exercise price;

-    the holder of the warrants has not confirmed in writing that the
     underwriters solicited the exercise;

-    the warrants are held in a discretionary account;

-    the warrants are exercised in an unsolicited transaction; or

-    the arrangement to pay the commission is not disclosed in the prospectus
     provided to warrant holders at the time of exercise.

     The Company has sold to Rodman & Renshaw, LLC (the "Representative" of the
underwriters), for $100, as additional compensation, an option to purchase up to
a total of 350,000 units at a per-unit price of $10.00. The units issuable upon
exercise of this option are also identical to those offered by the Offering
except that the warrants included in the option have an exercise price of $6.65
(133% of the exercise price of the warrants included in the units sold in the
offering.) The Company will pay the underwriters in the Offering an underwriting
discount of 7% of the gross proceeds of this Offering (of which 3% is deferred
until the consummation of a business combination).

     The sale of the option will be accounted for as an equity transaction.
Accordingly, there will be no net impact on the Company's financial position or
results of operations, except for the recording of the $100 proceeds from the
sale. The Company has determined, based upon a Black-Scholes model, that the
fair value of the option on the date of sale would be approximately $3.10 per
unit, or $1,086,001 total, using an expected life of five years, volatility of
45.47% and a risk-free interest rate of 4.39%.

     The volatility calculation of 45.47% is based on the 365-day average
volatility of a representative sample of ten (10) companies with market
capitalizations under $500 million that management believes to be engaged in the
business of auto component parts (the "Sample Companies"). Because the Company
does not have a trading history, the Company needed to estimate the potential
volatility of its common stock price, which will depend on a number of factors
which cannot be ascertained at this time. The Company referred to the 365-day
average volatility of the Sample Companies because management believes that the
average volatility of such companies is a reasonable benchmark to use in
estimating the expected volatility of the Company's common stock post-business
combination. Although an expected life of five years was taken into account for
purposes of assigning a fair value to the option, if the Company does not
consummate a business combination within the prescribed time period and
liquidates, the option would become worthless.


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5. COMMITMENTS AND RELATED PARTY TRANSACTIONS (CONTINUED)

     Pursuant to letter agreements with the Company and the Representative, the
Initial Stockholders have waived their right to receive distributions with
respect to their founding shares upon the Company's liquidation.

     Certain of the Company's officers, directors, or their designees have
agreed with the Representative that upon consummation of the Offering and during
the 45 trading day period commencing on the later of the date that the
securities comprising the units begin separate trading or 60 days following the
consummation of the Offering, that they will purchase up to 320,000 warrants in
the public marketplace at prices not to exceed $1.40 per Warrant. As of December
31, 2006, William R. Herren, Mr. Rudy Wilson, Chun Hao and Asia Development
Capital held 290,000 warrants to purchase the Company's securities.

     The Initial Stockholders will be entitled to registration rights with
respect to their founding shares pursuant to an agreement to be signed prior to
or on the effective date of the Offering. The holders of the majority of these
shares are entitled to make up to two demands that the Company register these
shares at any time commencing three months prior to the third anniversary of the
effective date of the Offering. In addition, the Initial Stockholders have
certain "piggy-back" registration rights on registration statements filed
subsequent to the third anniversary of the effective date of the Offering.

     Rodman & Renshaw has entered into a letter agreement with us pursuant to
which it agreed to purchase up to 125,000 warrants in the public marketplace at
prices not to exceed $1.40 per warrant during the 45 trading day period
commencing on the later of the date separate trading of the warrants has
commenced or 60 days following the consummation of this offering.

     Chardan Capital Markets has entered into a letter agreement with us
pursuant to which it agreed to purchase up to 125,000 warrants in the public
marketplace at prices not to exceed $1.40 per warrant during the 45 trading day
period commencing on the later of the date separate trading of the warrants has
commenced or 60 days following the consummation of this offering.

     On February 8, 2006, five stockholders entered into five separate letter
agreements with the representatives of the underwriters pursuant to which they
agreed to purchase in aggregate up to $2,000,000 in warrants at prices not to
exceed $1.40 per warrant during the 45 day trading period commencing on the
later of the date separate trading of the Warrants has commenced or 60 calendar
days following the consummation of the Offering. These entities have agreed that
any warrants purchased by them pursuant to this agreement will not be sold or
transferred until after a completed business combination. As of December 31,
2006, these five stockholders held 20,000 warrants to purchase the Company's
securities.

6. PREFERRED STOCK

     The Company is authorized to issue 1,000,000 shares of preferred stock with
such designations, voting and other rights and preferences as may be determined
from time to time by the Board of Directors.


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