UNITED STATES
              SECURITIES AND EXCHANGE COMMISSION
                     Washington, DC 20549
                          FORM 10-KSB


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

              For the fiscal year ended December 31, 2007
                                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


          Delaware                           20 -3022522
(State or other jurisdiction of   (I.R.S. Employer Identification No.)
 incorporation or organization)

 199 Pierce Street, Suite 202
 Birmingham, Michigan                        48009
(Address of principal executive
 offices)                                  (Zip Code)



                           (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 $7.90 for the company's voting stock of 5,031,250 shares held on
February 15, 2008 is approximately $39,746,875.



                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 February 15, 2008

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

=========================================================================



             ASIA AUTOMOTIVE ACQUSITION CORPORATION
                        Table of Contents

                                                  Page
                                                  ____

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                               8
   Item 8A Controls and Procedures                  8
   Item 8B Other Information                        8

PART III                                            8
   Item 9  Directors and Executive Officers of the
           Registrant                               8
   Item 10 Executive Compensation                   11
   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   13
   Item 13 Exhibits                                 16
   Item 14 Principal Accountant Fees and Services   17

SIGNATURE PAGE                                      18


=====================================================================
PART I

Item 1.  Description of Business

Asia Automotive Acquisition Corporation ("AAAC") is 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).
See Item 6. Management's Discussion and Analysis or Plan of Operation
regarding Recent Developments. The company has not yet engaged in any
business operations.

The company has four executive officers, three of whom are members of
our board of directors.  Our Chairman, CEO and President of China
Operations 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 199 Pierce St. Suite 202,
  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  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 is 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 fiscal year ended December 31, 2007.



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.

<TABLE>
OTC Bulletin Board
<CAPTION>
                       Common Stock         Warrants            Units
                      High      Low        High     Low      High     Low
                     __________________    ________________  _______________
<S>                  <C>        <C>        <C>      <C>      <C>      <C>
2007 First Quarter   $ 8.40     $7.50      $ 2.16   $ 1.82   $10.56   $ 9.32

2007 Second Quarter  $ 7.74     $7.42      $ 2.40   $ 1.97   $ 9.96   $ 9.38

2006 Third Quarter   $ 8.15     $7.40      $ 2.95   $ 1.76   $10.70   $ 9.15

2007 Fourth Quarter  $ 8.65     $7.64      $ 3.30   $ 1.90   $11.68   $ 9.42

</TABLE>

Holders

As of December 13, 2007, there were 115 holders of record of the units,
150 holders of record of the common stock and 124 holders of record of
the warrants.  AAAC believes that the beneficial holders of the units,
common stock and warrants to be in excess of 314 persons each.

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 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.

If AAAC does not complete a business combination by April 19, 2008,
AAAC will be dissolved and will distribute to all of its public
stockholders, in proportion to their respective equity interests, an
aggregate sum equal to the amount in the trust account, inclusive of
any interest, plus any remaining net assets. AAAC's existing
stockholders have waived their rights to participate in any
liquidation distribution with respect to shares of common stock owned
by them immediately prior to the initial public offering. There will
be no distribution from the trust account with respect to AAAC's
warrants.


Recent Developments

On July 25, 2007 AAAC announced that it has executed an Equity
Acquisition Agreement ("EAA") to acquire Hunan TX Enterprise Co.,
Ltd. ("Hunan Tongxin"). Pursuant to the EAA, AAAC formed a wholly
owned subsidiary under the laws of the British Virgin Islands, under
the name Tongxin International, Ltd. ("TI")".  At the time of
closing of the EAA, AAAC will merge with and into TI for the purpose
of redomestication ("Redomestication Merger") out of the United
States to secure greater corporate flexibility to structure the
business of Hunan Tongxin within China. Simultaneously with the
Redomestication Merger, TI will acquire all of the equity of Hunan
Tongxin, pursuant to existing EAA. Following consummation of the EAA
and the Redomestication Merger, TI will continue as the surviving
company.

Under the EAA, the Hunan Tongxin stockholders and their designees will
be paid an aggregate of $13,000,000 in cash for all the outstanding
common stock of Hunan Tongxin. The Hunan Tongxin shareholders and their
designees shall sell, transfer, assign and convey to TI, and TI shall
purchase from the Hunan Tongxin shareholders, all of the rights, title
and interest of the Hunan Tongxin shareholders representing all of
the common stock of Hunan Tongxin.

Pursuant to the Redomestication Merger, all of the AAAC common stock
held by AAAC's stockholders will be converted into common stock in TI
on a one-to-one basis and the outstanding warrants issued by AAAC will
be assumed by TI.

As part of the purchase price, Hunan Tongxin Management who are
currently equity holders in Hunan Tongxin will be issued an aggregate of
4,500,000 shares of TI common stock to remain with Hunan Tongxin from the
date of the Key Employees Employment Agreement to the time the business
transaction is consummated.

In the first quarter 2008, pursuant to a Performance Earn Out Agreement,
Hunan Tongxin Management will be issued an aggregate of 2,000,000 shares
of common stock of TI (on an all-or-none basis) if, on a consolidated
basis, TI generates after-tax profits of $9,500,000 in fiscal year 2007
(excluding one time costs associated with the transaction and corporate
costs).

AAAC and the Hunan Tongxin Stockholders plan to complete the Equity
Acquisition promptly after the AAAC special meeting, provided that:

* AAAC's stockholders have approved the Equity Acquisition Agreement
  and the Redomestication proposals;
* holders of less than 20% of the shares of common stock issued in
  AAAC's initial public offering vote against
* the Equity Acquisition proposal and demand conversion of their
  shares into cash; and
* the other conditions specified in the Equity Acquisition Agreement
  have been satisfied or waived.

Most of the activity from June 20, 2005 (inception) to December 31,
2007 relates to the Company's formation, public offering and recent
developments related to the proposed business combination described
in this 10-KSB.


Comparison of the Fiscal Years Ended  December 31, 2007 and  2006

Results of Operations

For the fiscal year ended December 31, 2007, AAAC had a net loss of
$2,546,812 compared to a net loss $3,569,613 for the same period in 2006.
The net loss in 2007 consisted of interest income of $1,834,484, net of a
warrant liability loss of $3,395,625 and formation operating costs of
$839,349. For the same period the prior year interest income, a warrant
liability loss and formation operating costs were $1,308,833, $3,783,750
and $636,637, respectively.  Net loss per common share was $.40 in 2007
compared to $.73 in the same period in 2006.

Critical Accounting Policies

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 assets and 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.

In December 2007, the FASB issued Statement of Financial Accounting
Standards No. 141 (revised 2007), "Business Combinations" ("FAS 141R").
FAS 141R replaces Statement of Financial Accounting Standards No. 141,
"Business Combinations" ("FAS 141"), although it retains the fundamental
requirement in FAS 141 that the acquisition method of accounting be used
for all business combinations. FAS 141R establishes principles and
requirements for how the acquirer in a business combination (a) recognizes
and measures the assets acquired, liabilities assumed and any non-
controlling interest in the acquiree, (b) recognizes and measures the
goodwill acquired in a business combination or a gain from a bargain
purchase and (c) determines what information to disclose regarding the
business combination. FAS 141R applies prospectively to business
combinations for which the acquisition date is on or after the beginning
of our 2009 fiscal year. We are currently assessing the potential effect
of FAS 141R on our financial statements.

In June 2006, the FASB issued Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes - An Interpretation of SFAS No.109" ("FIN 48").
FIN 48 clarifies the accounting for uncertainty in tax positions
recognized in a company's financial statements in accordance with SFAS
No. 109, "Accounting for Income Taxes." FIN 48 prescribes a recognition
threshold and measurement attribute for the financial statement
recognition and measurement of the tax position taken or expected to be
taken in a tax return. The Company adopted FIN 48.  The adoption of FIN 48
did not have any impact on the accompanying financial statements since we
have not identified any uncertain tax positions as defined by FIN 48.

Management does not believe that any other recently issued, but not
yet effective, accounting standards if currently adopted would have a
material effect on the accompanying financial statements.

Going Concern

If the Company does not complete a business combination by April 18,
2008, the Company will be dissolved. In connection with such dissolution,
the Company will distribute to all of its public stockholders, in
proportion to their respective equity interests, an aggregate sum equal to
the amount in the trust account, inclusive of any interest (net of taxes),
plus any remaining net assets. The Company's stockholders who obtained
their shares of Company common stock prior to the Offering have waived
their rights to participate in any liquidation distribution with respect
to shares of common stock owned by them immediately prior to the Offering,
but they will participate in any liquidation distribution with respect to
shares of common stock purchased in or following the Offering. There will
be no distribution from the trust account with respect to the Company's
warrants.

The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern. The Company's recurring
losses and difficulty in generating sufficient cash flow to meet its
obligations and sustain its operations raise substantial doubt about its
ability to continue as a going concern. The consolidated financial
statements do not include any adjustments that might result from the
outcome of this uncertainty.


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.

Evaluation of Disclosure Controls and Procedures

We maintain a system of disclosure controls and procedures, as
defined in Exchange Act Rule 13a-15(e),which is designed to provide
reasonable assurance that information, which is required to be disclosed
in our reports filed pursuant to the Securities and Exchange Act of 1934,
as amended (the "Exchange Act"), is accumulated and communicated to
management in a timely manner. Under the supervision and with the
participation of management, including our Chairman, Chief Executive
Officer and Chief Financial Officer, we conducted an evaluation of the
Company's effectiveness of disclosure controls and procedures (as defined
in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended
(the "Exchange Act") as of the end of the period covered by this Annual
Report on Form 10-KSB.  Based on that evaluation, the Chairman, Chief
Executive Officer and Chief Financial Officer concluded that our
disclosure controls and procedures have not been operating effectively as
of the end of the period covered by this report. In connection with the
preparation of our Report of Form 10-KSB, management identified a material
weakness, due to an insufficient number of resources in the accounting and
finance department, resulting in (i) an ineffective review, monitoring and
analysis of schedules, reconciliations and financial statement disclosures
and (ii) the misapplication of U.S. GAAP and SEC reporting requirements.
Due to the pervasive effect of the lack of resources, including a lack of
resources that are appropriately qualified in the areas of U.S. GAAP and
SEC reporting, and the potential impact on the financial statements and
disclosures and the importance of the annual financial closing and
reporting process, in the aggregate, there is more than a remote
likelihood that a material misstatement of the annual financial statements
would not have been prevented or detected.

Changes in Internal Control over Financial Reporting

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,
2007, that has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.

Management's Report on Internal Control over Financial Reporting Our
management is responsible for establishing and maintaining adequate
internal control over financial reporting. Internal control over
financial reporting, as defined in Exchange Act Rule 13a-15(f), is a
process designed by, or under the supervision of, our principal executive
and principal financial officers and effected by our Board of Directors,
management and other personnel, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted
accounting principles and includes those policies and procedures that:

* Pertain to the maintenance of records that in
  reasonable detail accurately and fairly reflect the
  transactions and dispositions of our assets;

* Provide reasonable assurance that transactions are
  recorded as necessary to permit preparation of financial
  statements in accordance with generally accepted
  accounting principles, and that our receipts and
  expenditures are being made only in accordance with
  authorizations of our management and directors; and

* Provide reasonable assurance regarding prevention or
  timely detection of unauthorized acquisition, use or
  disposition of our assets that could have a material
  effect on the financial statements.

Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Projections of any
evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
All internal control systems, no matter how well designed, have inherent
limitations. Therefore, even those systems determined to be effective can
provide only reasonable assurance with respect to financial statement
preparation and presentation. The scope of management's assessment of the
effectiveness of internal control over financial reporting includes all of
our Company's consolidated subsidiaries.

Our management assessed the effectiveness of our internal control over
financial reporting as of December 31, 2007. In making this assessment,
our management used the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) in "Internal Control-
Integrated Framework." Based on this assessment, management believes that,
as of December 31, 2007, our internal control over financial reporting
was not effective due to the pervasive effect of the lack of resources,
including a lack of resources that are appropriately qualified in the
areas of U.S. GAAP and SEC reporting, and the potential impact on the
financial statements and disclosures and the importance of the annual
financial closing and reporting process, in the aggregate, there is more
than a remote likelihood that a material misstatement of the annual
financial statements would not have been prevented or detected.

This annual report does not include an attestation report of the
Company's registered public accounting firm regarding internal control
over financial reporting. Management's report was not subject to
attestation by the Company's registered public accounting firm pursuant to
temporary rules of the Securities and Exchange Commission that permit the
Company to provide only management's report in this annual report.


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:

Name                  Age     Position
___________________  _____    __________________________________
William R. Herren     61      Chairman of the Board of Directors
Rudy Wilson           58      Chief Executive Officer and Director
Dr. David J. Brophy   70      Chief Financial & Accounting Officer
                              and Director
Chun Yi Hao           45      President of China Operations
Donald L. Runkle      61      Director

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 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. 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 1981 through 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 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 ofChun 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, 2007, the directors did not
receive any cash compensation for their service as members of the
board of directors.


Section 16 (a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities and Exchange Act of 1931, 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 met three times during the fiscal year ended
December 31, 2007. 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, 2007, the directors did not
receive any cash compensation for their service as members of the board
of directors.


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, 2007 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.

                                      Amount and Nature
                                      of Beneficial       Percent
Name and Address of Beneficial Owner  Ownership (2)       Class (3)
------------------------------------  -----------------   ------------

William R. Herren (1) (4)              448,000            7.02%
Rudy Wilson (1) (5)                    448,000            7.02%
Chun Y. Hao (1) (6)                    173,000            2.71%
David J. Brophy (1)                     60,000            0.9%
Donald L. Runkle (1)                    20,000            0.3%
Jeffrey L. Feinberg (7)              1,276,100           19.99 %
Baupost Group LLC (8)                  493,590            7.73%
Balyasny Asset Management (9)          355,500            5.57%
Global Capital LLC (10)                312,000            4.90%
Crescendo (11)                         320,000            5.02%
All directors and executive officers 1,149,000           18.0%
as a group (5 individuals)

(1) Unless otherwise indicated, the business address of each of the
    individuals is c/o AAAC, 199 Pierce Street, Suite 202, Birmingham,
    Michigan, 48009.

(2) Beneficial ownership and percentage has been determined in accordance
    with Rule 13d-3 under the Securities Exchange Act of 1934.

(3) These amounts based upon pre-business combination aggregate of
    6,380,000 shares outstanding including 1,349,000 insider shares and 5,
    031,250 shares publicly held.

(4) William R. Herren shares of Common Stock do not  include 90,400 shares
    issuable upon exercise of warrants.

(5) Rudy Wilson shares of Common Stock does not include 90,400 shares
    issuable upon exercise of warrants

(6) Chun Y. Hao shares of Common Stock do not  include 89,200 shares
    issuable upon exercise of warrants.

(7) Mr. Feinberg's shares of AAAC Common Stock include 1,084,900 shares
issuable upon exercise of warrants. The securities reported as held by Mr.
Feinberg represent shares of Common Stock held by Mr. Feinberg in his
personal account; JLF Partners I, L.P., JLF Partners II, L.P. and JLF Off
Shore Fund, Ltd. to which JLF Asset Management LLC serves as the
management company and/or investment manager. Mr. Feinberg is the managing
member of JLF Asset Management, LLC. The business address of Mr. Feinberg
and these entities is 2775 Via de la Valle, Suite 204, Del Mar, California
92014. This information is derived from a Form 3 filed by the above
persons with the SEC on July 3, 2007, a Form 4 field by the above persons
with the SEC on October 12, 2007 and a Schedule 13 G/A filed by the above
persons with the SEC on December 7, 2007.

(8) The control person of the shares owned by The Baupost Group is Seth A.
Klarman. The business address of The Baupost Group, LLC is: 10 St. James
Avenue, Suite 2000 Boston, Massachusetts 02116. The foregoing information
is derived from a Schedule 13G /A filed with the SEC on February 13, 2007.

(9) The control person of the shares owned by Atlas Global is Mr. Dmitry
Balyasny. The business address of Atlas Global, LLC; Balyasny Asset
Management L.P. and Mr. Dmitry Balyasny is: 181 West Madison, Suite 3600,
Chicago, IL 60602. The foregoing information is derived from a Schedule
13G /A filed with the
SEC on August 31, 2006.

(10) The control person of the shares owned by Globis Capital Management
is Mr. Paul Packer. The business address of Mr. Paul Packer; Globis
Capital Management, L.P. and Globis Capital LLC is: 60 Broad Street, 38th
Floor, New York, New York 10004. The foregoing information is derived from
a Schedule 13G /A filed with the SEC on May 17, 2006.

(11) The control person of the shares owned by Crescendo Investments is Mr.
Eric Rosenfeld. The business address of Mr. Eric Rosenfeld; Crescendo
Investments III, LLC; and Crescendo Partners III, L.P. is 10 East 53rd
Street, 35th Floor, New York, New York 10022. The foregoing information is
derived from a Schedule 13G /A filed with the SEC on October 5, 2007.

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 19, 2008; or
(ii) our liquidation; or (iii) the consummation of 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:


Name                     Number of Shares
------------------       ----------------

William R. Herren        448,000
Rudy Wilson              448,000
Chun Y. Hao              173,000
David J. Brophy           60,000
Donald L. Runkle          20,000
Paul Packer              100,000
Michael Metzman           50,000
Craig Samuels             50,000
Total                  1,349,000

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, 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, 2007 they have
purchased an aggregate of 290,000 warrants.

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 favorable as we could have
obtained from an unaffiliated person. However, as most of 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, 2007

		Income Statement-Period from June 20, 2005 (inception)
                 to December 31, 2007

		Statement of Stockholders' Equity-Period from June 20,
                 2005 (inception) to December 31,2007

		Statement of Cash Flows-Period from June 20, 2005
                 (inception) to December 31, 2007

		Notes to Financial Statements

	2.	Financial Statement Schedule (s):

		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:

Exhibit No. Description

11.1  Statement of Computation Per share earnings
23.1  Consent of Rothstein & Kass*



Item 14. Principal Accountant Fees and Services.

Audit Fees

During the fiscal years ended December 31, 2007 and 2006, AAAC's principal
accountant billed approximately $143,000 and $96,000 respectively  for
professional services for the audit of our annual financial statements and
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years

Audit-Related Fees

During 2007, 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 2007 and 2006, our principal accountant  rendered services to
us for tax compliance, tax advice and tax planning for $15,000 and nil,
respectively.

All Other Fees

During 2007, there were no fees billed for products and services
provided by the principal accountant other than those set forth above.


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: March 13, 2008                    By: /s/William R. Herren
                                               William R. Herren
                                               Chairman of the Board

Date: March 13, 2008                    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: March 13, 2008                    By: /s/William R. Herren
                                               William R. Herren
                                               Chairman of the Board

Date: March 13, 2008                    By: /s/Rudy Wilson
                                               Rudy Wilson
                                               Chief Executive Officer

Date: March 13,2008                     By: /s/David J. Brophy
                                               David J. Brophy
                                  Chief Financial & Accounting Officer

Date: March 13, 2008                    By: /s/Donald L. Runkle
                                               Donald R. Runkle
                                               Director


Exhibit 31.1 CERTIFICATION BY PRINCIPAL EXECUTIVE OFFICER

I, William R. Herren, certify that:

1. I have reviewed this Annual Report on Form 10-KSB of Asia Automotive
Acquisition Corporation;

2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, mot misleading with respect to the period covered by
this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of
the registrant as of, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
and we have:

a) designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be signed under our supervision,
to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this
report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end
of the period covered by this report based on such evaluation; and

c) disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's
most recent fiscal quarter (the registrant's fourth fiscal quarter in
the case of an annual report) that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting; and

5. The registrant' s other certifying officers and I have disclosed, based
on our most recent evaluation of internal control over financial reporting,
to the registrant' s auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or
   operation of internal control over financial reporting which are
   reasonably likely to adversely affect the registrant's ability to
   record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other
   employees who have a significant role in the registrant's internal
   control over financial reporting.

Dated: March 13, 2008

/s/ William R. Herren
    William R. Herren
    Chairman of the Board


Exhibit 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)

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),
each of the undersigned officers of Asia Automotive Acquisition
Corporation, a Delaware corporation (the "Company"), does hereby certify,
to such officer's knowledge, that:

The Annual Report on Form 10-KSB for the fiscal year ended December 31,
2006 (the "Form 10-KSB") of the Company fully complies with the
requirements of section 13(a) or 15(d) of the Securities Exchange Act of
1934, and information contained in the Form 10-KSB fairly presents, in all
material aspects, the financial condition and results of operations of
the Company.

Dated: March 13, 2008

/s/William R. Herren
   William R. Herren
   Chairman of the Board


/s/Rudy Wilson
   Rudy Wilson
   Chief Executive Officer

/s/ David J. Brophy
    David J. Brophy
    Chief Financial & Accounting Officer

A signed original of this written statement required by Section 906 has
been provided to the Company and will be retained by the Company and
furnished to the Securities and Exchange Commission or its staff upon
request.


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 Changes in Stockholders' Equity
Statements of Cash Flows
Notes to Financial Statements


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, 2007 and the related statements of
operations, changes in stockholders' equity and cash flows for the
years ended December 31, 2007 and 2006, and for the period from June
20, 2005 (date of inception) through December 31, 2007. 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, 2007 and the results of its operations and
its cash flows for the years ended December 31, 2007 and 2006, and
for the period from June 20, 2005 (date of inception) through
December 31, 2007, are 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 April 18, 2008, 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 11, 2008


<TABLE>
          Asia Automotive Acquisition Corporation
          (a corporation in the development stage)
                       BALANCE SHEET
<CAPTION>
                                                  December 31,
                                                      2007
                                                ________________

                                             <c>
ASSETS

Current assets
   Cash and cash equivalents                    $     35,611

Other assets
   Deferred income taxes                        $    442,659
   Cash held in trust account                   $ 39,507,229
                                                ________________
Total assets                                    $ 39,985,499
                                                ================
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
   Accrued expenses                             $    595,500
   Warrant liability                            $ 14,562,188
   Deferred underwriter's fee                   $    966,121
                                                ________________
Total current liabilities                       $ 16,123,809

Common stock, subject to possible
conversion, 1,005,746 shares at
conversion value plus interest income
of $238,363 and $170,070 for the
fiscal years ended December 31, 2007
and December 31, 2006, respectively
(net of taxes)                                  $  7,888,291

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 conversion)                            $     6,380

Additional paid-in capital                      $22,327,433

Deficit accumulated during the
development stage                               $(6,360,414)
                                                _____________
Total stockholders' equity                      $15,973,399
                                                _____________
Total liabilities and stockholders' equity      $39,985,499
                                                =============

</TABLE>

See accompanying notes to financial statements.

                                   F1

<TABLE>
                Asia Automotive Acquisition Corporation
                (a corporation in the development stage)
                       STATEMENTS OF OPERATIONS
<CAPTION>
                                                          June 20, 2005
                       Year ended         Year ended      (inception) to
                     December 31,2007   December 31,2006  December 31,2007
                     ________________   ________________  ________________
<S>                   <C>                <C>               <C>
Interest income, net  $1,834,484         $1,308,883        $3,143,367
Loss on warrant
 liability            (3,395,625)        (3,783,750)       (7,179,375)
Formation and
 operating costs        (839,349)          (636,637)       (1,311,542)
Loss before taxes     (2,400,490)        (3,111,504)       (5,347,550)

Income taxes            (146,322)          (458,109)         (604,431)

Net loss             $(2,546,812)       $(3,569,613)      $(5,951,981)
                     ________________   ________________  ________________

Common shares
outstanding subject to
possible conversion     1,005,476            710,101           677,028

Net loss per
common share for
shares  subject
to possible conversion     $(.24)             $(.24)            $(.60)

Weighted average shares
outstanding
(basic and diluted)     6,380,250          4,901,284         4,735,837

Net loss per
common share
(basic and diluted)        $(.40)             $(.73)           $(1.26)

</TABLE>

See accompanying notes to financial statements.

                                      F2

<TABLE>

                   Asia Automotive Acquisition Corporation
                   (a corporation in the development stage)
                 STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
<CAPTION>
                            Common Stock      Additional   Deficit accumulated
                         Shares     Amount    paid in      during development
                                              capital      stage                 Total
                         ________   _______   __________   ___________________   _____
<S>                      <C>        <C>       <C>          <C>                   <C>
Balances at June 20,
2005                         -      $  -      $   -        $    -                $ -
(date of inception)

Issuance of common
stock to                1,349,000   $ 1,349   $ 23,651                           $25,000

existing shareholders

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,      5,031,250   $ 5,031   $37,166,353                    $37,171,384
2006 at a price of
$8.00 per unit, net
of underwriter's
discount and offering
expenses (including
1,005,746 shares
ubject to possible
redemption)

Sale of option on
April 18, 2006 at a                            $ 100                            $ 100
price of $100 for
350,000 units

Proceeds subject to
possible                                       $(7,479,858)                   $(7,479,858)
conversion of
shares, 1,005,746
shares

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

Net loss                                                      $(2,785,175)    $(2,785,175)
                        __________________________________________________________________
Balances at December
31, 2007                6,380,250   $ 6,380    $22,237,433    $(6,360,414)    $(15,973,399)
                        ==================================================================
</TABLE>

See accompanying notes to financial statements.

                                       F3

<TABLE>

              Asia Automotive Acquisition Corporation
              (a corporation in the development stage)
                     STATEMENTS OF CASH FLOWS
<CAPTION>
                                                          June 20, 2005
                       Year ended         Year ended      (Date of inception)
                     December 31,2007   December 31,2006        to
                                                          December 31,2007
                     ________________   ________________  ________________
<S>                   <C>                <C>               <C>
Cash flows
from operating
activities:

Net loss             $(2,546,812)       $(3,569,613)       $(5,951,981)

Adjustments to
reconcile net
loss to net
cash provided
by operating
activities:

  Deferred tax
  benefit            $  (442,659)                          $  (442,659)

  Warrant liability  $ 3,395,625        $ 3,783,750        $ 7,179,375

  Income
  taxes payable      $  (458,109)       $   458,109

  Accrued expenses   $   483,750        $   111,750        $   595,500

Net cash
provided by
operating
activities:          $   431,795        $   783,996        $ 1,380,235
                     _________________________________________________
Net cash used
in investing
activities:

  Cash held
  in trust account   $ (780,346)        $(38,726,883)      $39,507,229
                     _________________________________________________
Cash flows
from financing
activities:

  Proceeds
  from note payable                     $     20,250       $    45,250

  Proceeds from
  issuance of common
  stock to existing
  stockholders                                             $    25,000

  Proceeds from
  sale of option 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)      $(2,122,495)

Net cash provided by
financing activities                    $ 38,312,606       $ 38,162,605
                     __________________________________________________
Net increase
(decrease) in
cash and cash
equivalents          $   (348,551)      $    369,419       $     35,611

Cash and cash
equivalents,
beginning of period  $    384,162       $     14,743

Cash and cash
equivalents, end
of period            $     35,611       $    384,162       $     35,611

Supplemental
cash flow
disclosure:

Deferred
underwriter's fees   $                  $  1,207,500       $  1,207,000

Cash paid for taxes  $  1,037,000       $                  $  1,037,000

Accrued
offering costs       $                  $                  $    235,369

</TABLE>

See accompanying notes to financial statements.

                                         F4



           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 as defined in Statement
of Financial Accounting Standards (SFAS) No. 7, "Accounting and
Reporting By Developmental State Enterprises" 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.

On July 19, 2007, at a meeting of the Company's Board of Directors
("BOD") at which a quorum was present, legal counsel for Hunan TX
Enterprise Co Ltd. ("TX") informed the Board that registration of TX has
been completed with the local Chinese government authorities, permitting
the execution of the Equity Acquisition Agreement ("EAA") on July 24, 2007.
The Board deemed it appropriate to make a public announcement by the
filing of a Form 8K with the SEC on July 24, 2007. Pursuant to EAA the
Company, which shall be renamed TX International, Ltd. ("TI") and
redomesticated as a British Virgin Islands Company, would merge with TI
resulting in TX becoming a wholly owned subsidiary of the TI. At the
closing of the acquisition, the stockholders of TX will receive
$13,000,000 million in cash. Additionally, the Company and TX executed a
Key Employee Employment Agreement and Performance Earn-Out Agreement which
will provide for certain retention and incentive bonuses. The closing of
the acquisition is subject to certain conditions, including the approval
of the transaction by the majority of the Company's stockholders and that
fewer than 20% of the Company's stockholders exercise their right to
redeem their shares of common stock for cash.

On August 10, 2007, the Company was informed by legal counsel for
TX that the Changsha Ministry of Commerce had approved the EAA previously
executed among and between the Company and TX on July 24, 2007.The Board
deemed it appropriate to make a public announcement by the filing of a
Form 8K with the SEC on August 13, 2007

On August 29, 2007 at a meeting of the Company's BOD, the
directors approved an amendment of the Company's By-Laws to allow the BOD
(by simple majority) rather than shareholders to remove a director.
Pursuant to this amendment Mr. Vinit Bansal and Mr. Chun Hao as Class A
directors were not nominated for reelection.

On September 18, 2007 the Company filed a Form 8K with the SEC
stating its intent to commence holding presentations for its stockholders
regarding its proposed acquisition of TX as described in AAAC's Current
Reports on Form 8-K dated July 25, 2007, and August 13, 2007.

On September 20, 2007 the Company's BOD met to consider Proposals
for a special meeting of shareholders pursuant to the acquisition. After
careful consideration, the BOD determined unanimously that each of the
Equity Acquisition Proposal and the Redomestication merger Proposal is
fair to and in the best interests of AAAC and its stockholders. AAAC's BOD
has approved and declared advisable the Equity Acquisition Proposal and
the Redomestication merger proposal and unanimously recommends that the
shareholders vote or give instructions to vote "FOR" each of the Proposals
to adopt the Equity Acquisition Proposal and the Redomestication merger
Proposal. Subsequently, the Company filed a Schedule 14(a) Preliminary
Proxy Statement with the SEC for a special meeting of shareholders to be
held to consider AAAC's pending acquisition of TX. The Preliminary Proxy
Statement is subject to SEC review. The date of the special meeting of
shareholders and the record date for the meeting will be specified in a
definitive proxy statement to be mailed to shareholders following such
review.

In the event that the Company does not consummate a Business
Combination within 18 months from the date of the consummation of the
Offering, or 24 months from the consummation of the Offering if certain
extension criteria have been satisfied, the proceeds held in the Trust
Account will be distributed to the Company's public stockholders,
excluding the existing stockholders to the extent of their initial stock
holdings. Since the Offering was consummated on April  18, 2006, the
above-mentioned 18-month period was set to end on October 18, 2007 unless
otherwise extended. In furtherance of the Company's corporate purpose on
September 18, 2007, the Company entered into a letter of intent with a
potential target business, TX, thereby extending the deadline to
consummate a business combination from October  18, 2007 thru April 18,
2008.

If the Company does not complete a business combination by April
18, 2008, the Company will be dissolved. In connection with such
dissolution, the Company will distribute to all of its public stockholders,
in proportion to their respective equity interests, an aggregate sum equal
to the amount in the trust account, inclusive of any interest (net of
taxes), plus any remaining net assets. The Company's stockholders who
obtained their shares of Company common stock prior to the Offering have
waived their rights to participate in any liquidation distribution with
respect to shares of common stock owned by them immediately prior to the
Offering, but they will participate in any liquidation distribution with
respect to shares of common stock purchased in or following the Offering.
There will be no distribution from the trust account with respect to the
Company's warrants.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying financial statements are presented in U.S. dollars
in conformity with accounting principles generally accepted in the United
States of America, and pursuant to the accounting and disclosure rules and
regulations of the Securities and Exchange Commission (the "SEC").

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.

Fair value of financial instruments:

The fair value of the Company's assets and liabilities, which qualify
as financial instruments under SFAS 107, "Disclosure About Fair
Value of Financial Instruments," approximates the carrying amounts
represented in the condensed balance sheet.

Cash held in Trust Account:

Cash held in the Trust Account is invested in T-bills   The Company
recognizes cash held in the Trust Account as a non-current asset in the
accompanying balance sheet, and totaled $39,507,229 as of December 31,
2007.  The carrying value of cash equivalents approximates fair value.
Interest income is recorded on an accrual basis.

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.

The Company's statements of operations include a presentation of
earnings per share for common stock subject to possible conversion in a
manner similar to the two-class method of earnings per share in accordance
with Emerging Issue Task Force Abstracts, Topic No. D-98 "Classification
and Measurement of Redeemable Securities". Basic and diluted net income
per share amounts for the maximum number of shares subject to possible
conversion are calculated by dividing the net interest income attributable
to common shares subject to conversion ($238,363 and $170,070 for the
years ended December 31, 2007 and 2006, respectively, and $408,433 for the
period June 20, 2005 (inception) to December 31, 2007) by the weighted
average number of shares subject to possible conversion.

Redeemable common stock:

The Company accounts for redeemable common stock in accordance with
Emerging Issue Task Force ("EITF") D-98 "Classification and Measurement of
Redeemable Securities". Securities that are redeemable for cash or other
assets are classified outside of permanent equity if they are redeemable
at the option of the holder. The Company recognizes changes in the
redemption value immediately as they occur and adjusts the carrying value
of the redeemable common stock to equal its redemption value at the end of
each reporting period.

As discussed in Note 1, in that Company does not consummate a
Business Combination by April 18, 2008, the Company's corporate existence
will cease and in the event that 20% or more of the outstanding stock
(excluding, for this purpose, those shares of common stock issued prior to
the Public Offering) vote against the Business Combination and elect to
exercise their redemption rights, the Business Combination will not be
consummated.  In accordance with EITF D-98, redeemable shares are not
classified outside of permanent equity if the redemption causes a
liquidation event.  Accordingly, 1,005,746 shares (20% of the shares sold
in the Offering, minus 1 share) have been classified outside of permanent
equity at redemption value.

Concentration of credit risk:

Financial instruments that potentially subject the Company to
concentrations of credit risk consist of cash accounts in a financial
institution, which at times may, exceed the Federal depository insurance
coverage. The Company has not experienced losses on these accounts and
management believes the Company is not exposed to significant risks on
such accounts.

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.

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.   As of December 31, 2007, no valuation
allowance has been established on the deferred tax asset of $443,000.

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:

In December 2007, the FASB issued SFAS No. 141R, "Business Combinations"
("SFAS 141R"). SFAS 141R replaces SFAS 141 and establishes principles and
requirements for how an acquirer recognizes and measures in its financial
statements the identifiable assets acquired, the liabilities assumed, any
non controlling interest in the acquiree and the goodwill acquired. SFAS
141R also establishes disclosure requirements which will enable users to
evaluate the nature and financial effects of the business combination.
This standard is effective for fiscal years beginning after December
15, 2008, which will require the Company to adopt these provisions for
business combinations occurring in fiscal 2009 and thereafter.  Early
adoption of SFAS 141R is not permitted.

Management does not believe that any recently issued, but not yet
effective, accounting standards if currently adopted would have a material
effect on the accompanying financial statements.


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, 2007,
December 31, 2006, and the period from June 20, 2005 (date of inception)
to December 31, 2007 was approximately $146,000, $458,000, and $604,000
respectively, which is net of the expense for current federal income taxes
and the deferred tax benefit recorded for the twelve months ended December
31, 2007, December 31, 2006, and the period from June 20, 2005 (date of
inception) to December 31, 2007.

The Company has not begun its trade or business for U.S. tax purposes.
Accordingly, it could not yet recognize losses for start-up expenditures.
As a result a deferred tax asset of approximately $443,000 at December 31,
2007 was established for these start-up expenditures.

The Company adopted the provisions of FASB Interpretation No. 48,
Accounting for Uncertainty in Income Taxes, an Interpretation of FASB
Statement No. 109 ("FIN 48"). FIN 48 provides recognition criteria and a
related measurement model for tax positions taken by companies. In
accordance with FIN 48, a tax position is a position in a previously filed
tax return or a position expected to be taken in a future tax filing that
is reflected in measuring current or deferred income tax assets and
liabilities. Tax positions shall be recognized only when it is more likely
than not (likelihood of greater than 50%), based on technical merits, that
the position will be sustained upon examination.

Tax positions that meet the more likely than not threshold should be
measured using a probability weighted approach as the largest amount of
tax benefit that is greater than 50% likely of being realized upon
settlement. The Company adopted FIN 48, which had no effect on the
Company's financial positions and results of operations at this time given
its limited operations and activities.

5. COMMITMENTS AND RELATED PARTY TRANSACTIONS

The Company presently occupies office space provided by Asia
Development Capital LLC ("ADC"), an affiliate 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 $2.98 per unit, or approximately $1,043,000
total, using an expected life of five years, volatility of 45.47% and
a risk-free interest rate of 3.38%.

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.

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, 2007, 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 pursuantto this agreement will not be sold or transferred until
after a completed business combination. As of December 31, 2007, 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.  As of
December 31, 2007, the Company has not issued any shares of preferred
stock.